康寧 (GLW) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Corning Incorporated Quarter three 2024 Earnings Conference Call. (Operator Instructions)

美好的一天，感謝您的支持。歡迎參加康寧公司 2024 年第三季財報電話會議。 （操作員說明）

Please be advised that today's conference is being recorded.

請注意，今天的會議正在錄製中。

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

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

Thank you, Dilem and good morning, everybody. Welcome to Corning's third 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. I 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 1,995.

謝謝你，Dilem，大家早安。歡迎參加康寧2024 年第三季財報電話會議，今天與我一起出席的是董事長兼首席執行官溫德爾·週(Wendell Weeks) 和執行副總裁兼首席財務官埃德·施萊辛格(Ed Schlesinger)。我想提醒您，今天的言論包含符合 1,995 年《私人證券訴訟改革法案》含義的前瞻性陳述。

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.

這些陳述涉及風險不確定性和其他可能導致實際結果不同的因素。從實質上講，這些因素在公司的財務報告中都有詳細說明。您還應該注意到，我們將使用核心績效指標來討論我們的綜合結果。

Unless we specifically indicate our comments relate to GAAP data. Our core performance measures are non-GAAP measures used by management to analyze the business for the third quarter.

除非我們特別指出我們的評論與 GAAP 數據相關。我們的核心績效指標是管理階層用來分析第三季業務的非公認會計準則指標。

The difference between GAAP and core EPS primarily reflected non-cash mark to market adjustments associated with the company's translated earnings contracts and JPY denominated debt, constant currency adjustments and non-cash asset write offs and charges as a reminder, the mark to market accounting has no impact on our cash flow.

GAAP 和核心每股盈餘之間的差異主要反映了與公司折算收益合約和日圓計價債務相關的非現金市場調整、恆定貨幣調整以及非現金資產沖銷和費用。

A reconciliation of core results to the comparable GAAP value can be found in the investor relations section of our website at corning dotcom. 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 and we encourage you to follow along.

您可以在康寧網路公司網站的投資者關係部分找到核心績效與可比較 GAAP 值的調整表。您還可以在我們的網站上存取核心結果，並在互動式分析中心下載可下載的財務數據，支援幻燈片在我們的網路廣播中即時播放，我們鼓勵您關注。

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 third quarter 2024 results. Year-over-year, sales grew 8% to $3.73 billion, and EPS grew 20% to $0.54. Our quarter three outperformance was led by Optical Communications, where continued strong adoption of our new optical connectivity products for generative AI drove 55% and year-over-year growth in the Enterprise portion of the segment.

謝謝你，安，大家早安。今天，我們宣布了 2024 年第三季的強勁業績。銷售額年增 8%，達到 37.3 億美元，每股收益成長 20%，達到 0.54 美元。我們第三季的優異表現由光通訊領銜，該領域持續大力採用我們用於生成人工智慧的新型光連接產品，推動了該領域企業部分 55% 的同比增長。

Our momentum continues as we close out the year. In the fourth quarter, we expect year-over-year sales growth to accelerate and EPS to continue growing faster than sales. And Ed will elaborate more on that in a moment.

當我們結束這一年時，我們的勢頭仍在繼續。在第四季度，我們預期銷售額年增將加速，每股盈餘將繼續快於銷售額成長。埃德稍後將詳細闡述這一點。

Overall, our results and outlook show we're making strong progress on our Springboard plan to add more than $3 billion in annualized sales with powerful incremental profit and cash flow and to achieve an operating margin of 20% by the end of 2026.

總體而言，我們的業績和前景表明，我們的Springboard 計劃正在取得強勁進展，年化銷售額將增加超過30 億美元，利潤和現金流將強勁增長，並在2026 年底實現20% 的營業利潤率。

So before Ed and I get into the details, let me just briefly recap the primary elements of Springboard. First, this chart reflects our internal nonrisk-adjusted Springboard plan. This is what our business operators are focused on delivering.

因此，在我和 Ed 詳細介紹之前，讓我先簡單回顧一下 Springboard 的主要元素。首先，該圖表反映了我們內部的非風險調整跳板計劃。這就是我們的業務經營者致力於實現的目標。

There's a lot to take away from this slide. 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.

這張投影片有很多值得借鏡的地方。我們有一個重要的銷售機會。我們預計到 2028 年底，年化銷售運行率可能成長 80 億美元，到 2026 年底將成長 50 億美元。

Now remember, this is our internal plan. When we say it's not risk-adjusted, what we mean is the projections are based on a number of assumptions including markets recovering 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.

現在記住，這是我們的內在計畫。當我們說它沒有經過風險調整時，我們的意思是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。

But what we wanted to do was take our $8 billion opportunity and translate it into a high confidence plan for our shareholders. To do that, first, we focused on a three year time period. 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 as well as the potential that some of our markets may go through down cycles.

但我們想要做的是抓住 80 億美元的機會，並將其轉化為股東高度信任的計畫。為此，我們首先將重點放在三年時段。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。

And this is how we come to the high confidence Springboard plan, to add more than $3 billion in annualized sales and achieved operating margin of 20% by the end of 2026. It's also important to note that we purposely drew this as a wedge.

這就是我們如何制定充滿信心的 Springboard 計劃，即到 2026 年底增加年化銷售額超過 30 億美元，並實現 20% 的營業利潤率。

We weren't trying to guide every quarter for the next 12 quarters. It obviously will not be a straight line. But we're also not dealing with a hockey stick. When we built the plan, we expected to see strong growth this year. And that's exactly what you're seeing in our results.

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桿。當我們制定計劃時，我們預計今年將出現強勁增長。這正是您在我們的結果中看到的。

So, I would like to take a moment to share two important observations about our performance. First, we're significantly improving our return profile. In the third quarter, we again drove sales growth while demonstrating our ability to deliver the powerful incrementals embedded in Springboard. In the third quarter, sales grew 8% year-over-year.

因此，我想花點時間分享我們表現的兩個重要觀察。首先，我們正在顯著改善我們的回報狀況。第三季度，我們再次推動銷售成長，同時展示了我們提供 Springboard 中嵌入的強大增量的能力。第三季銷售額較去年同期成長8%。

EPS grew more than twice as fast as sales. Operating margin expanded 160 basis points year-over-year to 18.3%. And gross margin expanded 220 basis points to 39.2%. We also generated strong free cash flow of $553 million, and we continued buying back shares in the third quarter.

每股收益成長速度是銷售額成長速度的兩倍多。營業利益率年增 160 個基點至 18.3%。毛利率擴大 220 個基點至 39.2%。我們還產生了 5.53 億美元的強勁自由現金流，我們在第三季繼續回購股票。

Second, we're reaching key strategic milestones that underscore the significant progress we've made against our high confidence plan. Let me just briefly summarize the recent milestones in Display and in Optical. In Display, our Springboard plan is centered on maintaining stable US dollar net income. To achieve this, we are raising glass prices.

其次，我們正在達到關鍵的策略里程碑，這突顯了我們在高信心計畫方面取得的重大進展。讓我簡單總結一下顯示和光學領域最近的里程碑。在顯示領域，我們的跳板計劃的重點是保持穩定的美元淨收入。為了實現這一目標，我們正在提高玻璃價格。

Our price actions, in combination with the hedges we have in place through 2026, will deliver consistent profitability in the segment. We expect to deliver net income of $900 million to $950 million next year and to deliver net income margin of 25%, consistent with the last five years.

我們的價格行動，加上我們在 2026 年之前採取的對沖措施，將在該領域帶來持續的獲利能力。我們預計明年淨利潤將達到 9 億至 9.5 億美元，淨利潤率為 25%，與過去五年持平。

Simply put, our price increases offset the weaker yen in our hedges, and we expect to maintain the same profitability. Most importantly, we will continue to be the low-cost technology and market leader in Display. Overall, we're providing a strong base in Display for our Springboard growth.

簡而言之，我們的價格上漲抵消了對沖中日圓貶值的影響，我們預計將保持相同的獲利能力。最重要的是，我們將繼續成為顯示領域的低成本技術和市場領導者。總體而言，我們正在為我們的跳板成長提供堅實的展示基礎。

In Optical Communications, our Springboard plan is about revenue growth as cyclical and secular trends converge to drive demand for our unique capabilities. When we introduced our gen AI products in June, we said we expected to grow our Enterprise business at a 25% compound annual growth rate over the next four years. Looking back to the second quarter, strong demand for our new gen AI products drove outperformance, and our Enterprise business grew by 42% year-over-year.

在光通訊領域，我們的跳板計劃是隨著週期性和長期趨勢的融合推動對我們獨特能力的需求而實現收入成長。當我們在 6 月推出新一代人工智慧產品時，我們表示預計未來四年企業業務將以 25% 的複合年增長率成長。回顧第二季度，新一代人工智慧產品的強勁需求帶動了業績表現，企業業務較去年同期成長42%。

As I noted, our performance continues. Enterprise grew by 55% in the third quarter versus last year. That growth reflects the gen AI opportunity inside the data center.

正如我所指出的，我們的表現仍在繼續。 Enterprise 第三季與去年同期相比成長了 55%。這種成長反映了資料中心內的新一代人工智慧機會。

We've also introduced a set of innovations to help our customers build a new network to interconnect AI-enabled data centers. As part of an agreement with Lumen Technologies, which reserves 10% of our global fiber capacity for each of the next two years, we recently launched the first outside plant deployment of Corning's new gen AI fiber and cable system that enables Lumen to fit anywhere from 2 to 4 times the amount of fiber into their existing conduit.

我們也推出了一系列創新技術，幫助我們的客戶建立新網路來互連支援人工智慧的資料中心。作為與 Lumen Technologies 協議的一部分，我們最近啟動了康寧新一代 AI 光纖和光纜系統的首次外部工廠部署，該系統使 Lumen 能夠在未來兩年內保留我們全球光纖產能的 10%。光纖數量放入現有管道中。

This is an exciting new space and we expect to capture other large opportunities. Optical is also marking important developments with other important carrier customers, Verizon and AT&T. At the Broadband Strategy Event last week, Verizon highlighted their partnership with Corning and said we're delivering technologies to make it easier for them to reach their deployment goals. They plan to significantly expand their fiber footprint from 25 million fiber passings to more than 30 million fiber passings by 2028.

這是一個令人興奮的新領域，我們希望抓住其他巨大的機會。 Optical 也標誌著與其他重要營運商客戶 Verizon 和 AT&T 的重要發展。在上週的寬頻策略活動上，Verizon 強調了他們與康寧的合作夥伴關係，並表示我們正在提供技術，讓他們更容易實現部署目標。他們計劃在 2028 年將其光纖足跡從 2500 萬個光纖通道大幅擴大到超過 3000 萬個光纖通道。

We also just announced a multiyear purchase agreement with AT&T to provide next-generation fiber, cable and connectivity solutions to support the expansion of AT&T's fiber network and help bring high-speed Internet to more Americans.

我們也剛宣布與 AT&T 達成多年期採購協議，提供下一代光纖、電纜和連接解決方案，以支持 AT&T 光纖網路的擴展，並幫助更多美國人享受高速互聯網。

The agreement, valued at more than $1 billion, builds on a decades-long collaboration between our companies. AT&T is expanding its network to bring world-class fiber to more people and places across the country.

該協議價值超過 10 億美元，建立在我們公司之間長達數十年的合作基礎上。 AT&T 正在擴展其網絡，為全國更多的人和地方提供世界一流的光纖。

By using Corning's newest preconnectorized solutions, AT&T can accelerate its network expansion and enhance network performance while minimizing deployment cost. They'll leverage our latest additions to our portfolio of connectivity solutions, which are fully compliant with the Build America, Buy America provisions of the Broadband Equity, Access and Deployment program. The program, known as BEAD, is part of the government's efforts to bring high-speed Internet to rural communities.

透過使用康寧最新的預先連接解決方案，AT&T 可以加速其網路擴展並增強網路效能，同時最大限度地降低部署成本。他們將利用我們連接解決方案組合中的最新產品，這些解決方案完全符合寬頻股權、存取和部署計劃的「建構美國」、「購買美國」條款。該計劃被稱為 BEAD，是政府為農村社區提供高速網路的努力的一部分。

Stepping back. As you can see, we're three quarters into our three year Springboard plan and we're making significant progress. Our third quarter results demonstrate the sales growth and the powerful incremental profit and cash flow we expect to deliver as we improve our return profile and march steadily toward our 20% operating margin target by the end of 2026. And we're marking significant milestones along our Springboard journey.

退後一步。正如您所看到的，我們的三年跳板計劃已經進行了四分之三，並且我們正在取得重大進展。我們的第三季業績表明，隨著我們改善回報狀況並在 2026 年底穩步實現 20% 的營業利潤率目標，我們預計將實現銷售成長以及強勁的增量利潤和現金流。

And we have plenty of milestones ahead. In Optical Communications, we expect carriers to return to buying at deployment rates and for their deployment rates to increase and drive growth in 2025. And we expect the BEAD program to gather momentum starting in the second half of 2025. We have a triple-digit automotive glass business today, and we expect sales in that business to almost triple by 2026.

我們前面還有很多里程碑。在光通訊領域，我們預計營運商將在 2025 年恢復按部署率購買，並且部署率將提高並推動成長。玻璃業務的銷售額預計到2026 年將成長近兩倍。

We expect recently announced US EPA regulations to force gas particulate filter adoption and drive hundreds of millions of dollars of growth for us in the US alone with sales starting in 2026. Finally, we plan to launch a new solar market access platform.

我們預計最近宣布的美國 EPA 法規將強制採用氣體顆粒過濾器，並為我們在美國帶來數億美元的成長，從 2026 年開始銷售。

Overall, we positioned our businesses to benefit from a convergence of cyclical and secular trends to drive growth across the company through 2026 and beyond. We'll continue to update you as we hit significant milestones.

總體而言，我們將業務定位為受益於週期性和長期趨勢的融合，以推動整個公司在 2026 年及以後的成長。當我們達到重要里程碑時，我們將繼續向您通報最新情況。

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

現在讓我將其轉交給 Ed，以了解有關本季以及 Springboard 的更多細節和觀點。

Thank you, Wendell. Good morning, everyone. As you just heard, we had an outstanding quarter. Year-over-year, Q3 sales grew 8% to $3.73 billion, and EPS grew 20%, more than twice the rate of sales to $0.54 with operating margin expanding 160 basis points to 18.3%. We also generated free cash flow of $553 million. Our outperformance was led by Optical Communications.

謝謝你，溫德爾。大家早安。正如您剛剛聽到的，我們度過了一個出色的季度。第三季銷售額年增 8%，達到 37.3 億美元，每股收益成長 20%，是銷售額成長率的兩倍多，達到 0.54 美元，營業利潤率擴大 160 個基點，達到 18.3%。我們還產生了 5.53 億美元的自由現金流。我們的表現領先光通訊。

Sales grew 36% year-over-year and sales in the Enterprise business grew 55%, driven by continued strong adoption of our new optical connectivity products for generative AI.

由於持續大力採用用於產生人工智慧的新型光連接產品，銷售額年增 36%，企業業務銷售額成長 55%。

We expect our momentum to continue. In the fourth quarter, we anticipate year-over-year sales growth to accelerate and EPS to again grow faster than sales, with sales up about 15% to approximately $3.75 billion and EPS up approximately 40% in the range of $0.53 to $0.57.

我們預計我們的勢頭將繼續下去。在第四季度，我們預期銷售額年增將加速，每股盈餘將再次快於銷售額成長，銷售額成長約15% 至約37.5 億美元，每股盈餘成長約40%，在0.53 美元至0.57美元之間。

Today, I'll provide more detail on our Q3 results and Q4 outlook as well as put them into the context of our overall Springboard plan. As a reminder, a key component of our plan is to deliver powerful incrementals. We have the capacity and technical capabilities in place to add more than $3 billion in annualized sales by the end of 2026 with minimal cash investment, and the cost and capital are already reflected in our financials. This means that we expect to grow profit significantly faster than sales, and that's exactly what we're seeing in our third quarter results.

今天，我將提供有關第三季度業績和第四季度前景的更多詳細信息，並將其納入我們總體跳板計劃的背景中。提醒一下，我們計劃的關鍵組成部分是提供強大的增量。我們有能力和技術能力，到 2026 年底，以最少的現金投資實現年銷售額增加超過 30 億美元，並且成本和資本已經反映在我們的財務中。這意味著我們預計利潤成長速度將明顯快於銷售額成長速度，這正是我們在第三季業績中看到的情況。

So let's dive in. In Optical Communications, Sales for the third quarter were $1.2 billion, up 36% year-over-year, and net income for the quarter was $175 million, up 92% year-over-year as we delivered strong incremental profit on the higher volume. In our Enterprise business, sales were up 55% year-over-year driven by continued strong adoption of AI-related connectivity solutions. This marks another record quarter in this business and adds to our confidence in our plan to grow Enterprise at a 25% compound annual growth rate from 2023 to 2027.

讓我們深入探討一下。的利潤。在我們的企業業務中，由於人工智慧相關連接解決方案的持續大力採用，銷售額同比增長了 55%。這標誌著該業務又一個創紀錄的季度，增強了我們對 Enterprise 計劃從 2023 年到 2027 年以 25% 的複合年增長率增長的信心。

We also grew year-over-year in our carrier business in the third quarter. We're encouraged by new customer agreements, including our recent announcements with AT&T and Lumen. Overall, we expect both cyclical and secular drivers in Optical Communications to sustain growth in 2025 and beyond.

第三季我們的營運商業務也較去年同期成長。我們對新的客戶協議感到鼓舞，包括我們最近與 AT&T 和 Lumen 發布的公告。總體而言，我們預計光通訊的周期性和長期驅動因素將在 2025 年及以後維持成長。

Moving to Display Technologies. Third quarter sales were $1 billion, consistent with the second quarter. Net income was $285 million, up 10% sequentially. Our third quarter volume was down sequentially as panel makers began to lower their utilization rates in the quarter. We expect panel makers to continue managing their operations to maintain healthy inventory levels.

轉向顯示技術。第三季銷售額為 10 億美元，與第二季持平。淨利潤為 2.85 億美元，比上一季成長 10%。由於面板製造商開始降低本季的利用率，我們第三季的銷售量連續下降。我們預計面板製造商將繼續管理其運營，以維持健康的庫存水準。

As a result, we expect the glass market and our volume to decline sequentially in the fourth quarter. Longer term, we expect the display glass market to grow at a low single-digit rate, supported by stable TV unit sales and average screen size growing about 1 inch per year.

因此，我們預計第四季玻璃市場和銷量將連續下降。從長遠來看，我們預計顯示器玻璃市場將以較低的個位數成長率成長，這得益於穩定的電視銷售量和平均螢幕尺寸每年增長約 1 吋。

As we shared with you at our September investor event, we are raising glass prices to ensure we can maintain stable US dollar net income. Specifically, we implemented currency-based price increases in Q3. Overall, our customers are experiencing a double-digit price increase in the second half of 2024.

正如我們在 9 月的投資者活動中與您分享的那樣，我們正在提高玻璃價格，以確保我們能夠保持穩定的美元淨收入。具體來說，我們在第三季實施了基於貨幣的價格上漲。總體而言，我們的客戶在 2024 年下半年將經歷兩位數的價格上漲。

In total, our price increases offset the weaker yen in our hedges, and therefore, we expect to maintain the same profitability. As a result, when we move to our new yen core rate in 2025, we do not plan to recast our 2024 financials.

總的來說，我們的價格上漲抵消了對沖中日圓貶值的影響，因此，我們預計將保持相同的獲利能力。因此，當我們在 2025 年採用新的日圓核心匯率時，我們不打算重新制定 2024 年的財務資料。

As a reminder, we have the majority of our yen exposure hedged for 2025 and 2026, and we also have hedges in place beyond 2026. Our hedges are not at the 2024 core rate of 107, but they're much better than the current spot rate. We expect to deliver net income of $900 million to $950 million next year and net income margin of 25%, consistent with the last five years.

提醒一下，我們的大部分日圓敞口都在2025 年和2026 年進行了對沖，並且我們在2026 年之後也進行了對沖。要好得多速度。我們預計明年淨利潤將達到 9 億至 9.5 億美元，淨利潤率為 25%，與過去五年持平。

Turning to Specialty Materials. Sales in the third quarter were $548 million, up 9% sequentially, primarily driven by premium glass for mobile devices. Net income was $72 million, up 14% sequentially, reflecting higher volume.

轉向特種材料。第三季銷售額為 5.48 億美元，季增 9%，主要受到行動裝置優質玻璃的推動。淨利潤為 7,200 萬美元，比上一季增長 14%，反映了銷量的增加。

In Environmental Technologies, third quarter sales were $382 million, down 11% sequentially reflecting the continued impact of the Class 8 truck down cycle in North America, as anticipated. Net income of $75 million was down sequentially, reflecting lower volume. We expect the heavy-duty market weakness to continue and sales in environmental to remain muted in the fourth quarter.

在環境技術領域，第三季銷售額為 3.82 億美元，環比下降 11%，反映了北美 8 級卡車衰退週期的持續影響，正如預期的那樣。淨利潤環比下降 7500 萬美元，反映出銷量下降。我們預計第四季重型市場將繼續疲軟，環保銷售將保持低迷。

In Life Sciences, sales in the quarter were $244 million, up 6% year-over-year. Net income was $15 million, up 15% year-over-year.

在生命科學領域，該季度銷售額為 2.44 億美元，年增 6%。淨利潤為 1500 萬美元，年增 15%。

Turning to Hemlock and Emerging Growth Businesses. Sales in the third quarter were $298 million, consistent sequentially.

轉向鐵杉和新興增長業務。第三季銷售額為 2.98 億美元，與上一季持平。

Finally, I'd like to touch on operating expenses. As we've told you in the past, our pay is tied directly to our financial performance. As our performance has accelerated this year, we have increased our variable compensation accruals accordingly. This leads to temporarily higher operating expenses in the back half of 2024.

最後，我想談談營運費用。正如我們過去告訴過您的，我們的薪酬與我們的財務表現直接掛鉤。隨著今年我們業績的加速，我們相應地增加了可變薪酬應計額。這導致 2024 年下半年營運費用暫時較高。

With that, I'd like to shift gears and put our third quarter results and Q4 guidance in context of Springboard and update you on how we are tracking against the plan. This chart shows both our nonrisk-adjusted $5 billion sales plan and our $3 billion high confidence sales plan.

有了這個，我想換個方向，將我們第三季的業績和第四季度的指導放在 Springboard 的背景下，並向您介紹我們如何追蹤該計劃的最新情況。這張圖表顯示了我們未經風險調整的 50 億美元銷售計劃和 30 億美元高信心銷售計劃。

So how are we doing? Let me first explain the $1.84 billion dot point you see on the chart. Our Q3 2024 sales were $3.73 billion. Our Q4 2023 sales, which is our Springboard starting point, were $3.27 billion. So our sales were $460 million higher in Q3 2024 than in Q4 of 2023.

那我們怎麼樣？首先讓我解釋一下您在圖表上看到的 18.4 億美元的點。我們 2024 年第三季的銷售額為 37.3 億美元。我們 2023 年第四季的銷售額（這是我們的 Springboard 起點）為 32.7 億美元。因此，我們 2024 年第三季的銷售額比 2023 年第四季高出 4.6 億美元。

And when you annualize that, you get to $1.84 billion. Therefore, we're currently tracking at a $1.84 billion incremental annual sales run rate against our $3 billion-plus target. And that trend continues into quarter four. The additional sequential growth implied in our Q4 guidance increases our run rate in the fourth quarter to $1.9 billion.

如果將其按年計算，則為 18.4 億美元。因此，我們目前追蹤的年銷售額增量為 18.4 億美元，而我們的目標是 30 億美元以上。這種趨勢持續到第四季。我們在第四季度指導中隱含的額外環比增長將我們第四季度的運行率提高到 19 億美元。

As we shared in September, our Springboard plan includes an operating margin target of 20% by the end of 2026. This target leads to an improving return profile with profitability growing significantly faster than sales. You can see this in our third quarter results, where EPS grew 20% year-over-year, more than twice as fast as the sales growth rate. Additionally, our operating margin was 18.3%. This represents a 200 basis point improvement from our starting point of 16.3% in Q4 2023.

正如我們在 9 月分享的那樣，我們的 Springboard 計劃包括到 2026 年底實現 20% 的營業利潤率目標。您可以從我們第三季的業績中看到這一點，每股收益比去年同期成長 20%，是銷售額成長率的兩倍多。此外，我們的營業利益率為 18.3%。這比 2023 年第四季 16.3% 的起點提高了 200 個基點。

Stepping back, we've made great progress against our sales and operating margin targets to date. But please remember, we're only three quarters into a 12-quarter plan. Springboard is a milestone-based plan evolving through 2026.

退一步來說，迄今為止，我們在銷售和營業利潤率目標方面已經取得了巨大進展。但請記住，我們的 12 季計劃僅進行了四分之三。 Springboard 是一項基於里程碑的計劃，持續到 2026 年。

And finally, we expect to generate significant cash flow over the Springboard time frame because we already have the capacity and technical capabilities in place to add more than $3 billion in annualized sales by the end of 2026. For the year, we've reduced our capital expenditures to approximately $1.1 billion.

最後，我們預計將在 Springboard 時間範圍內產生大量現金流，因為我們已經具備了到 2026 年底年化銷售額增加超過 30 億美元的能力和技術能力。 。

So let me spend a minute on capital allocation. Our 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. We also seek to maintain a strong and efficient balance sheet. And we're in great shape here. We have one of the longest debt tenors in the S&P 500. Our current average debt maturity is about 23 years with only $1 billion in debt coming due over the next five years, and we have no significant debt coming due in any given year.

讓我花一點時間談談資本配置。我們的優先事項保持不變。我們優先考慮有機成長機會的投資。我們相信，從長遠來看，這將為我們的股東創造最大價值。我們也尋求維持強勁且高效的資產負債表。我們這裡的狀態很好。我們是標準普爾500 指數中債務期限最長的企業之一。期。

Finally, we expect to continue our strong track record of returning excess cash to shareholders. And because of our growing confidence in Springboard, we started to buy back shares in the second quarter, and we continue to do so in the third quarter.

最後，我們預計將繼續保持向股東返還多餘現金的良好記錄。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，並在第三季繼續這樣做。

So as I wrap up today, I'd like to reiterate that we had an outstanding third quarter. We're tracking ahead of our Springboard plan. We expect continued strong performance in Q4 with year-over-year sales growth accelerating and EPS again growing faster than sales, and we expect to sustain our momentum in 2025 and beyond. We look forward to updating you as we continue to make progress.

因此，在今天結束時，我想重申我們第三季的表現非常出色。我們正在追蹤我們的跳板計劃。我們預計第四季度業績將持續強勁，銷售年增長加速，每股收益增長再次快於銷售額，我們預計在 2025 年及以後將保持這一勢頭。隨著我們不斷取得進展，我們期待向您通報最新情況。

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

這樣，我會把它轉回給安。

Great, thank you, Ed. We're ready for our first question.

太好了，謝謝你，艾德。我們準備好回答第一個問題了。

(Operator Instructions)

（操作員說明）

Samik Chatterjee from JPMorgan.

摩根大通的薩米克‧查特吉 (Samik Chatterjee)。

Hi. Thank you for taking my questions. And I guess for the first one, if I can start with the agreement that you signed with AT&T. And Wendell, you spoke about the opportunity there, but if you can just more sort of dive into the details in relation to how much of that is sort of an incremental opportunity that you're seeing related to some of the existing business that you do with AT&T on an ongoing basis.

你好。感謝您回答我的問題。我想對於第一個，我可以從您與 AT&T 簽署的協議開始。溫德爾，你談到了那裡的機會，但如果你能更深入地了解與你所從事的一些現有業務相關的增量機會有多少相關的細節與 AT&T 持續合作。

And sort of a broader question to the fiber opportunities. Is there something that's fundamentally changed? The question we're getting a lot from investors is in terms of fiber utilization. Is there something that's fundamentally changed that is going to drive a significant cycle on the fiber side just because fiber utilization has changed over the last few years? Can you help us think about that more on a longer-term basis as well?Thank you.

這是關於纖維機會的更廣泛的問題。有什麼東西發生了根本性的改變嗎？我們從投資者那裡得到的許多問題都是關於纖維利用率的。是否有一些根本性的變化會僅僅因為過去幾年光纖利用率的變化而推動光纖方面的重大周期？您能否幫助我們從更長遠的角度思考這個問題？

And Samik, a question for you on clarification. When you say fiber utilization, you mean?

Samik，有一個關於澄清的問題。當您說光纖利用率時，您的意思是？

In the more telecom networks, but in relation to the investment in fiber over the years. Has something changed in relation to being a lot more congested on fiber? Or very high fiber utilization already and seeing that drive a significant cycle, or are we sort of extrapolating just the amount of announcements, not really looking at the utilization, which is still probably low.

在更多的電信網路中，卻涉及多年來對光纖的投資。光纖更加擁塞，有什麼變化嗎？或者光纖利用率已經很高，並且看到這推動了一個重要的周期，或者我們只是推斷公告的數量，而不是真正關注利用率，利用率可能仍然很低。

Totally understand. Thank you, Samik. I would divide this really into two major sections. The first, let's address the AT&T announcement. That's really our carrier segment, and it's part of the cyclical upward trend that we identified as part of our Springboard plan, that we're viewing this to be very much in line with Springboard and an encouraging sign for us that we can expect the carrier spring to activate sometime here in the near future.

完全明白了。謝謝你，薩米克。我真的會把它分成兩個主要部分。首先，我們來談談 AT&T 的公告。這確實是我們的運營商細分市場，它是我們確定為Springboard 計劃一部分的周期性上升趨勢的一部分，我們認為這與Springboard 非常一致，對我們來說是一個令人鼓舞的跡象，我們可以期待運營商春天將在不久的將來的某個時候在這裡啟動。

We're not calling that yet because we'd like to see a couple more quarters of the actual order rate and the actual deployment rates. But it's certainly encouraging.

我們還沒有這麼稱呼，因為我們希望看到實際訂單率和實際部署率再成長幾個季度。但這確實令人鼓舞。

And this is what we mean by one of the cyclical trends in our Springboard plan for Optical. So encouraging, but we're not yet calling the spring activated.

這就是我們光學跳板計劃中的周期性趨勢之一的含義。非常令人鼓舞，但我們還沒有宣布彈簧已啟動。

To your next question, one of the things you've seen with a lot of the announcements sort of has to do with gen AI and interconnecting gen AI-enabled data centers. Of that, we are seeing really a different link have to get activated, and therefore, using your terminology of fiber utilization on those links between gen AI data centers are relatively full. And that's what you saw with the Lumen announcement.

對於你的下一個問題，你在許多公告中看到的一件事與 gen AI 和互連支援 gen AI 的資料中心有關。其中，我們確實看到必須啟動一個不同的鏈路，因此，使用您的光纖利用率術語來描述 gen AI 資料中心之間的這些鏈路相對完整。這就是您在 Lumen 公告中看到的情況。

We'll have to see how gen AI develops and how they end up splitting the very large clusters, but that could develop into a very significant growth driver for us going forward, Samik.

我們必須看看新一代人工智慧如何發展，以及它們最終如何分裂非常大的集群，但這可能會成為我們未來發展的一個非常重要的成長動力，Samik。

Thank you. Thank you, pass it on. Thanks for taking my questions.

謝謝。謝謝，轉寄吧感謝您回答我的問題。

Matt Niknam from Deutsche Bank.

德意志銀行的馬特·尼克南。

Hey guys, Congrats on the quarter. I guess, first, on the 4Q revenue guide, if there's any additional color or context you can share in terms of unpacking expectations across the different segments. And then one follow-up on optical. Can you clarify whether there was any contribution from the Lumen deal in the third quarter, whether that is expected to kick in, in the fourth quarter? Just trying to get a sense of that ramp-up to the run rate.? Thanks.

嘿夥計們，恭喜本季。我想，首先，在第四季度收入指南上，如果有任何其他顏色或背景，您可以在不同細分市場的預期方面分享。然後是光學方面的後續行動。您能否澄清第三季 Lumen 交易是否有任何貢獻，是否預計在第四季度發揮作用？只是想了解一下運行速度的提升。謝謝。

Yes. Matt, it's Ed. Thanks for the question. So first, on Lumen. No impact in the third quarter and I would say minimal to no impact in the fourth quarter expected. We see that as a 2025-2026 opportunity. And with respect to our guide, as we always do, we factor in a number of potential outcomes across all of our different segments.

是的。馬特，這是艾德。謝謝你的提問。首先，關於流明。第三季沒有影響，我想說第四季預計影響很小甚至沒有。我們認為這是 2025-2026 年的機會。關於我們的指南，一如既往，我們考慮了所有不同細分市場的許多潛在結果。

I think the one thing that's maybe a little noteworthy about the fourth quarter guide is typically, we're not seasonally up Q4 versus Q3. We're typically flat to slightly down. So we're seeing a lot of positive momentum in general, in particular, in Optical Communications. But in general, I think that's what's driving us to guide ourselves a little bit above normal seasonality.

我認為第四季指南中值得注意的一件事通常是，我們的第四季與第三季相比並沒有季節性上升。我們通常持平或略有下降。因此，我們總體上看到了許多積極的勢頭，特別是在光通訊領域。但總的來說，我認為這就是促使我們引導自己略高於正常季節性的原因。

Great. Thank you.

偉大的。謝謝。

Steven Fox from Fox Advisors LLC

福克斯顧問有限責任公司的史蒂文·福克斯

Hi, good morning guys. Two questions from me, if I could. Real quick on the cash flows. Ed, can you put a little bit of context around the free cash flow you generated in the quarter? I think it was the best I've seen from you guys since 2018 in the third quarter. How do we put that in perspective with future free cash flows? Or was there any onetime things we should think about?

嗨，大家早安。如果可以的話，我有兩個問題。現金流真的很快。 Ed，能否介紹一下本季產生的自由現金流？我認為這是自 2018 年第三季以來我從你們那裡看到的最好的表現。我們如何看待未來的自由現金流？或者有什麼一次性的事情是我們應該考慮的嗎？

And then from an optical standpoint, just on the cloud side of the business. Can you give us a little more perspective on the relative momentum versus Enterprise and how you think about that momentum into next year? Thanks.

然後從光學的角度來看，就在業務的雲端。您能否給我們更多關於企業與企業的相對勢頭的看法，以及您如何看待明年的這種勢頭？謝謝。

Hey, Steve, let me do the free cash flow one first. So yes, we agree, Q3 was a great free cash flow quarter, very strong. Nice call out on the last time we were at that level. I think if you think about Springboard and the way we've positioned ourselves, we're not adding capacity. So we're not spending capital at a level where you would have seen us potentially do that in the past, And we're converting our income, which is growing into cash. So, I don't know that every quarter is going to be at this level of conversion, but I do expect us to continue to generate strong free cash flow as we go forward.

嘿，史蒂夫，讓我先做一下自由現金流。所以，是的，我們同意，第三季度是一個很棒的自由現金流季度，非常強勁。上次我們達到這個水平時，很高興。我認為，如果你考慮一下 Springboard 以及我們的定位方式，你會發現我們並沒有增加產能。因此，我們的資本支出水準不會達到過去我們可能會這樣做的水平，而且我們正在將我們的收入轉化為現金。因此，我不知道每個季度都會達到這種轉換水平，但我確實預計我們將在未來繼續產生強勁的自由現金流。

Thank you. Ed. On the cloud, Steve, as you'll recall, when we looked at the gen AI driver, what we said is we would expect that to drive a 25% compound annual growth rate through '27 on that Enterprise portion of our optical segment. Obviously, we are growing a lot faster than that at this time, and our momentum is very strong. We'll be reflecting more on that. And when we get together at the investor event in quarter one of next year, we'll update with our latest architectural thoughts and our various modeling to see how we feel about that long-term guidance.

謝謝。埃德。在雲端方面，史蒂夫，您可能還記得，當我們研究新一代人工智慧驅動程式時，我們所說的是我們預計到27 年，我們光學領域的企業部分將實現25% 的複合年增長率。顯然，我們此時的成長速度比此時快很多，而且我們的勢頭非常強勁。我們將對此進行更多反思。當我們在明年第一季的投資者活動上聚會時，我們將更新最新的架構想法和各種模型，以了解我們對長期指導的看法。

Fair enough. Thank you.

很公平。謝謝。

Wamsi Mohan from Bank of America.

美國銀行的瓦姆西‧莫漢 (Wamsi Mohan)。

Yes, thank you so much. Similar to cash flows growth margins. Also, we were very impressive in the quarter and also 39%. I'm wondering if you can unpack that a little bit in terms of the drivers there. How much of that was mix versus leverage given the strength and optical relative to display. You think that that would put some mixed pressure, but would be helpful to get some context around that and how we should think about that going into the fourth quarter. Are we now renormalizing at a, at a higher rate in general for, for gross margin? Thank you so much.

是的，非常感謝。類似現金流成長率。此外，我們在本季的表現也非常出色，達到了 39%。我想知道您是否可以根據那裡的驅動程式來稍微解壓縮。考慮到相對於顯示的強度和光學，其中有多少是混合與槓桿的關係。您認為這會帶來一些混合壓力，但有助於了解相關背景以及我們應該如何考慮進入第四季度的情況。我們現在是否正在以整體較高的毛利率重新正常化？太感謝了。

Yeah, thanks Wamsi. So I think what's really driving it is operating leverage, you know, consistent with how we've been sharing our view on springboard, we have the cost and the capacity in place technical capabilities to deliver the higher sales. So as our sales go up, we're experiencing a higher gross margin. You know, 39% plus is a great place. I would say my only caution on thinking about it going forward is that not every quarter is necessarily going to be up. But we do think we're, you know, we can go higher from where we are at these levels.

是的，謝謝瓦姆西。所以我認為真正推動它的是營運槓桿，你知道，與我們分享我們對跳板的看法一致，我們有成本和適當的技術能力來提供更高的銷售額。因此，隨著我們銷售額的上升，我們的毛利率也隨之提高。你知道，39% 以上是一個很棒的地方。我想說的是，我在考慮未來時唯一需要注意的是，並非每季都一定會上漲。但我們確實認為我們可以在目前的水平上走得更高。

And I would add to that one is this, we do expect to see our return profile to continue to improve and that's how we hit our operating margin target of 20% by the end of 2026.

我想補充一點的是，我們確實希望看到我們的回報率繼續改善，這就是我們如何在 2026 年底實現 20% 營業利潤率目標的原因。

John Roberts from Mizuho.

來自瑞穗的約翰羅伯茲。

Thank you, Hemlock received a chip Zack award during the quarter here. How are you thinking of it was all in the semiconductor side, I think. So how are you thinking about semiconductor versus solar in terms of the outlook for Hemlock?

謝謝，Hemlock 在本季度獲得了晶片 Zack 獎。我想，你怎麼看待這一切都在半導體方面。那麼，就 Hemlock 的前景而言，您如何看待半導體與太陽能？

Yes. Thanks, John. So yes, we did receive a CHIPS grant award, and we are looking at what it would take to build out additional semiconductor capacity. I think it's a great opportunity for us to do that. We will figure out sort of the timing. I don't think you should think about it as necessarily having an impact in the Springboard window of time here that we've been talking about through 2026. We've sort of factored in the cost and capacity that we need to support the sales in that window of time. But it's certainly an upside opportunity to that as we go forward.

是的。謝謝，約翰。所以，是的，我們確實獲得了 CHIPS 撥款，我們正在研究如何建立額外的半導體產能。我認為這對我們來說是一個很好的機會。我們會找出大概的時間安排。我認為您不應該認為它一定會對我們一直在討論的 2026 年之前的 Springboard 時間窗口產生影響。但隨著我們的前進，這無疑是一個上行機會。

Asiya Merchant from Citi.

花旗銀行的 Asiya 商人。

Great. Thank youTwo, if I may. Just on display, you've put in some pricing actions here. Just if you could help us understand how your customers are responding to that and expectations for further price increases in calendar '25.

偉大的。謝謝兩位，如果可以的話。剛剛展示，您已在此處進行了一些定價操作。如果您能幫助我們了解您的客戶對此有何反應以及對 25 年進一步漲價的預期。

And if I may, just on OpEx. I know you talked a little bit about elevated levels here, variable compensation. How should we think about these OpEx levels to moderate in the fourth quarter? I think the assumption implied or the guide implied some moderation here.

如果可以的話，我只談營運支出。我知道你在這裡談到了一些關於提高水準、可變補償的問題。我們該如何看待第四季度這些營運支出水準的緩和？我認為這裡暗示的假設或指南暗示了一些適度。

We remain confident that our customers will experience a double-digit price increase in the second half of this year. Our goal, as we have shared, is for us to deliver consistent profitability in display, a 25% net income margin next year and generate net income of between $900 million and $950 million. As time goes forward, we continue to be quite confident in being able to deliver that.

我們仍然相信，我們的客戶將在今年下半年經歷兩位數的價格上漲。正如我們所分享的，我們的目標是在顯示器領域實現穩定的獲利能力，明年的淨利潤率為 25%，並產生 9 億至 9.5 億美元的淨利潤。隨著時間的推移，我們仍然對能夠實現這一目標充滿信心。

Yeah. And Asiya, on OpEx, I think the only thing that I would note other than what I shared is that when we book our accrual in the third quarter, we did have a catch-up for the first nine months of the year. So as our performance has accelerated and we've increased our accrual, we've done that in a catch-up. We don't have to book that catch-up in the fourth quarter, but I would expect our OpEx to be temporarily elevated as well in the fourth quarter.

是的。至於 Asiya，關於營運支出，我認為除了我分享的內容之外，我唯一要注意的是，當我們在第三季度預訂應計費用時，我們確實在今年前 9 個月進行了追趕。因此，隨著我們業績的加速和應計費用的增加，我們已經迎頭趕上。我們不必在第四季度進行追趕，但我預計我們的營運支出在第四季度也會暫時提高。

Meta Marshall from Morgan Stanley.

摩根士丹利的梅塔·馬歇爾。

Great. Maybe kind of expanding upon on the gross margins. In the past, you guys have talked about 40% being a bogey but then also said that 39%, just given some of the price increases, is kind of a more appropriate new bogey. I know you guys have talked more in terms of operating margin targets and kind of this 20% operating margin target. But just how do you think about kind of gross margin leverage into the next year? Maybe as a first question.

偉大的。也許是毛利率的擴大。過去，你們談論過 40% 是一個柏忌，但後來又說 39%，只是考慮到一些價格上漲，是一種更合適的新柏忌。我知道你們已經更多地談論了營業利潤率目標以及 20% 的營業利潤率目標。但您如何看待明年的毛利率槓桿？也許作為第一個問題。

Yes. So I would say 39% is a great place. We're happy. We delivered that in the third quarter. But I think there's opportunity for us to go up from that level. I just would be cautious that it may not be up every single quarter as we go forward. And I think as Wendell pointed out, the 20% operating margin target as we exit the Springboard plan is where we have high confidence, which implies we can do better on gross margin.

是的。所以我想說 39% 是一個很好的地方。我們很高興。我們在第三季實現了這個目標。但我認為我們有機會從這個水平上升。我只是謹慎地認為，隨著我們的前進，它可能不會每個季度都會上升。我認為，正如溫德爾指出的那樣，我們對退出跳板計畫時的 20% 營業利潤率目標充滿信心，這意味著我們可以在毛利率方面做得更好。

And then, you know, at the event, earlier this quarter, you guys had mentioned kind of a lot of kind of key milestones that may be coming on kind of the hemlock business or just how to think about incrementals on the project. Springboard. I noted that you guys got the Chips Act funding kind of earlier this week. But just anything else or any updates that we should be thinking of in terms of timing there or kind of TV D.

然後，你知道，在本季早些時候的活動中，你們提到了很多可能會出現在鐵杉業務上的關鍵里程碑，或者只是如何考慮專案的增量。跳板。我注意到你們本週早些時候獲得了《晶片法案》的資助。但我們應該在時間安排或電視 D 類型方面考慮其他任何事情或任何更新。

We continue to make progress on hitting the milestones we need to, to launch a new solar map for us, and that will add significantly to a significant part of our Springboard plan. especially the nonrisk-adjusted portion of it.

我們繼續在實現我們需要的里程碑方面取得進展，為我們推出新的太陽能地圖，這將大大增加我們跳板計畫的重要部分。尤其是其中的非風險調整部分。

We would expect to be able to provide you with a relatively detailed explanation of the various pieces. And we would expect to have the major milestones in place by the around the timing of our IR event, our investor event in the first quarter next year.

我們希望能夠為您提供各個部分的相對詳細的解釋。我們預計，在明年第一季我們的投資者關係活動、投資者活動的時間安排上，我們將實現重要的里程碑。

Martin Yang from Oppenheimer.

奧本海默的馬丁楊。

Hi, good morning. Thank you for taking my question. One question on CapEx. Can you talk about some of the puts and takes and what led to the slight reduction in CapEx guidance for the year?

嗨，早安。感謝您回答我的問題。關於資本支出的一個問題。您能否談談一些看跌期權以及導致今年資本支出指導略有下降的原因？

I would say we're not necessarily adding much capacity. We have some small capital projects that we're finishing up. I don't think there was anything specific to note in the guidance reduction, mostly just where we're running. So we wanted to make sure people understood that. And we continue to believe we have the capacity in place to support at least the $3 billion in sales. If that changes or we have any other plans, we'll certainly share that.

我想說我們不一定會增加太多容量。我們正在完成一些小型資本項目。我認為指導意見的減少沒有什麼特別需要注意的，主要是我們正在運行的地方。所以我們想確保人們理解這一點。我們仍然相信我們有能力支持至少 30 億美元的銷售額。如果情況發生變化或我們有任何其他計劃，我們一定會分享。

Thank you.

謝謝。

Josh Spector from UBS.

瑞銀 (UBS) 的喬許‧斯佩克特 (Josh Spector)。

Yeah. Hey guys, This is James Cannon on for Josh. I just wanted to say congrats as you guys are still tracking well ahead of that $3 billion plan. But I just wanted to ask on kind of going along with the CapEx thing. At what point in terms of sales growth would you need to start ramping CapEx back up? If you guys continue on this trajectory, I would should we be assuming that you'll have to start ramping up sooner than kind of 2026?

是的。大家好，我是詹姆斯·坎農 (James Cannon) 替補喬希 (Josh)。我只是想說恭喜你們，你們仍然遠遠領先 30 億美元的計劃。但我只是想問一下資本支出方面的情況。就銷售成長而言，您需要在什麼時候開始增加資本支出？如果你們繼續沿著這個軌跡前進，我們是否應該假設你們必須在 2026 年之前開始加速？

So to deliver the Springboard plan, we don't anticipate a significant sort of increase in our capital investments. If, of course, the $8 billion begins to look more and more probable, that could generate some more investment on our part in terms of capacity.

因此，為了實現跳板計劃，我們預計不會大幅增加資本投資。當然，如果 80 億美元的可能性開始變得越來越大，那麼我們可能會在產能方面進行更多投資。

What you see in our capital today is much more aimed at continued productivity improvement as well as reconfiguring some of our factories to produce some of our new gen AI product set.

您今天在我們的首都看到的更多是為了持續提高生產力以及重新配置我們的一些工廠以生產我們的一些新一代人工智慧產品集。

So it's cost a lot less for us to tailor our equipment and to upgrade than it does to put in place significant new plant and equipment. So, unless we start really moving towards that $8 billion nonrisk-adjusted revenue run rate, but I would say we have an appropriate amount of property, plant and equipment in place and that our capital plans will continue to be relatively modest.

因此，我們客製化設備和升級的成本比安裝重要的新工廠和設備要低得多。因此，除非我們真正開始朝著 80 億美元的非風險調整後收入運行率邁進，但我想說的是，我們擁有適當數量的財產、廠房和設備，而且我們的資本計劃將繼續相對溫和。

Got it. Thank you.

知道了。謝謝。

George Notter from Jefferies LLC.

Jefferies LLC 的 George Notter。

Hi guys. Thanks very much. I guess I just wanted to ask about the display price increases. I think as you guys were hedging the business at 107 on the yen, those hedges were in place through the end of this year, yet you're able to institute price increases here in Q3. I thought that was quite impressive. Could you give us a sense for how that conversation went with customers, what kind of leverage you have in the relationship? Anything you can tell us about your ability into price increases even ahead of the hedges running off? Thanks.

嗨，大家好。非常感謝。我想我只是想問一下顯示器價格上漲的問題。我認為，當你們以 107 日圓對沖業務時，這些對沖一直持續到今年年底，但你們可以在第三季進行價格上漲。我認為這令人印象深刻。您能否讓我們了解一下與客戶的對話進行得如何，您在這種關係中擁有什麼樣的影響力？您能告訴我們您在對沖之前是否有能力提高價格嗎？謝謝。

Our price increase is aimed at maintaining a stable US dollar net income. And that's exactly what we're doing, and that's what you see with the our customers experiencing a double-digit price increase in the back half of this year.

我們漲價的目的是維持穩定的美元淨收入。這正是我們正在做的事情，這就是你所看到的，我們的客戶在今年下半年經歷了兩位數的價格上漲。

And what that is meant to do is that price increase will offset the weaker yen in our hedges for 2025 and 2026, delivering after that move a stable display net income percent of around 25% and the $900 million to $950 million expectation we have for the net income.

這樣做的目的是，價格上漲將抵消2025 年和2026 年我們對沖中日圓走弱的影響，在此之後實現25% 左右的穩定顯示器淨利潤百分比以及我們對2025 年9 億至9.5 億美元的預期淨利。

Remember, all we're doing here so is more appropriately sharing the benefits that our customers get from buying at that yen rate. So of course, any time you increase prices with customers, it is always challenging. But we've been able to do it successfully, and that's what you see in our guide, if you like.

請記住，我們在這裡所做的一切都是為了更恰當地分享我們的客戶以日圓匯率購買商品所獲得的好處。當然，每當你向客戶提高價格時，總是充滿挑戰。但我們已經成功地做到了這一點，如果您願意的話，這就是您在我們的指南中看到的內容。

Got it. And then, any sense for where the new hedge rate will wind up as we roll in the next year? Thanks.

知道了。那麼，明年新的避險利率最終會走向何方，有什麼意義嗎？謝謝。

Yes. But we will plan to share that as we turn the year. We just want to make sure everything is in place and all of our commercial agreements before we are too forthcoming on where our hedges are at.

是的。但我們將計劃在新年之際分享這一點。我們只是想確保一切都已就位，我們所有的商業協議都已就位，然後再透露我們的對沖地點。

Okay. Thank you very much. Appreciate it.

好的。非常感謝。欣賞它。

Tim Long from Barclays.

來自巴克萊銀行的蒂姆·朗。

Thank you. Two-parter, if I could, on optical. First, it looks like obviously a good recovery going on here. On the carrier side, still meaningfully below the levels we saw a few years ago. Could you talk about that piece? Will these new agreements, do you think, gets you back to those 2021-2022 levels for the carrier piece over the next year or two?

謝謝。如果可以的話，在光學上兩人合作。首先，看起來這裡顯然正在恢復良好。在運營商方面，仍然明顯低於我們幾年前看到的水平。能談談那件作品嗎？您認為這些新協議會讓您在未來一兩年內恢復到 2021-2022 年航母零件的水平嗎？

And then secondly, can you just talk a little bit about the op margin despite being a little overall base than what we saw in those peak years. Margins are pretty comparable. So is this all mix? And does that mean if we move higher from here, that we could see above historic margins for that optical business going forward as the business scales further from here?

其次，您能否簡單談談營運利潤率，儘管整體基礎比我們在那些高峰年看到的要低一些。利潤率相當可比。那麼這一切都是混合的嗎？這是否意味著，如果我們從這裡走高，隨著業務規模進一步擴大，我們可以看到光學業務的利潤率高於歷史水平？

Tim, let me start with carrier. I think it's too early first, your observation is correct. We are seeing carriers still at a relative cyclical level as we have talked about before. I think it's still a little too early for us to be able to confidently call the turn.

提姆，讓我從運營商開始。我認為現在還為時過早，你的觀察是正確的。正如我們之前討論過的，我們看到運營商仍處於相對週期性水平。我認為現在我們能夠自信地宣布轉局還為時過早。

But you are quite right in observing that all of these customer announcements show carriers leaning into we have to increase deployments, and they're establishing with their lead technology partner, who is us, the necessary capacity reservations to facilitate those builds.

但您的觀察是非常正確的，所有這些客戶公告都表明運營商傾向於我們必須增加部署，並且他們正在與他們的領先技術合作夥伴（即我們）建立必要的容量預留以促進這些構建。

So you're right. It's very encouraging. But we just don't have enough evidence yet, Tim, to reach a conclusion on that spring is activated. And we'll keep you posted as we go forward.

所以你是對的。這非常令人鼓舞。但提姆，我們還沒有足夠的證據來得出彈簧被啟動的結論。我們將隨時向您通報進度。

Yeah. And Tim on, on your margin question, I just want to clarify, you're specifically talking about optical.

是的。提姆，關於你的保證金問題，我只想澄清一下，你具體談論的是光學。

Yeah, just in the optical business, correct.

是的，只是在光學行業，正確的。

So I think the thing to think about it is it ties a little bit with what you asked in terms of your first question, right? So our sales are starting to get back close to the peak level, but we haven't yet filled all of our capacity, right? We have capacity in place to support a higher level. So I actually think we can improve our margins in optical as we fill that capacity and grow from here, which we expect to do. So I do think our margins accrete up in optical.

所以我認為要考慮的事情是它與你在第一個問題中提出的問題有點聯繫，對嗎？所以我們的銷售開始回到接近峰值水平，但我們還沒有填滿我們的所有產能，對嗎？我們有能力支持更高的水準。因此，我實際上認為，隨著我們填補產能並從這裡開始成長，我們可以提高光學領域的利潤率，這是我們期望做到的。所以我確實認為我們在光學領域的利潤不斷增加。

Okay. Thank you.

好的。謝謝。

Thank you, Tim. Thank you, Dilem, and thank you, everybody, for joining us today. Before we close, I wanted to let you know that we are going to attend the UBS Global Technology Conference on December 3, and we'll be scheduling management visits to investor offices in select cities.

謝謝你，提姆。謝謝 Dilem，也謝謝大家今天加入我們。在結束之前，我想告訴您，我們將於 12 月 3 日參加瑞銀全球技術會議，我們將安排管理層訪問選定城市的投資者辦公室。

Finally, a web replay of today's call will be available on our site starting later this morning. Once again, thank you all for joining us. Dilem, that concludes our call, please disconnect all lines.

最後，從今天早上晚些時候開始，我們的網站將提供今天電話會議的網路重播。再次感謝大家加入我們。困境，我們的通話結束，請斷開所有線路。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

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。