惠普企業 (HPE) 2016 Q4 法說會逐字稿

Good morning, afternoon, and evening and welcome to the fourth-quarter 2016 Hewlett Packard Enterprise earnings conference call. My name is Angie, and I will be your conference moderator for today's call.

早安、下午好、晚上好，歡迎參加 2016 年第四季惠普企業財報電話會議。我叫安吉，我將擔任今天電話會議的主持人。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded for replay purposes.

提醒一下，本次會議將會被錄音以供重播。

I would now like to turn the presentation over to your host of today's call Mr. Andrew Simanek, Head of Investor Relations. Please proceed.

現在，我想將演講交給今天電話會議的主持人、投資者關係主管 Andrew Simanek 先生。請繼續。

Good afternoon. I am Andy Simanek, Head of Investor Relations for Hewlett Packard Enterprise, and I would like to welcome you to our FY16 fourth quarter earnings conference call. With Meg Whitman, HPE's President and Chief Executive Officer, and Tim Stonesifer, HPE's Executive Vice President and Chief Financial Officer.

午安.我是惠普企業投資者關係主管安迪‧西馬內克 (Andy Simanek)，歡迎您參加我們的 2016 財年第四季財報電話會議。與 HPE 總裁兼執行長 Meg Whitman 以及 HPE 執行副總裁兼財務長 Tim Stonesifer 在一起。

Before handing the call over to Meg, let me remind you that this call is being webcast. A replay of the webcast will be made available shortly after the call for approximately one year. We posted the press releases and the slide presentations accompanying today's earnings release on our HPE Investor Relations webpage at investors.hpe.com.

在將電話交給梅格之前，請允許我提醒您，本次通話正在進行網路直播。網路直播的重播將在會議結束後不久提供，為期約一年。我們在 HPE 投資者關係網頁 investors.hpe.com 上發布了今天收益報告的新聞稿和幻燈片演示。

As always, elements of this presentation are forward looking and are based on our best view of the world and our businesses as we see them today. For more detailed information, please see the disclaimers on the earnings materials relating to forward-looking statements that involve risks, uncertainties and assumptions. For a discussion of some of these risks, uncertainties and assumptions, please refer to HPE's filings with the SEC including its most recent Form 10-K and Form 10-Q.

與往常一樣，本次演示的內容具有前瞻性，並基於我們對當今世界和我們業務的最佳看法。欲了解更詳細信息，請參閱收益資料中有關涉及風險、不確定性和假設的前瞻性陳述的免責聲明。有關這些風險、不確定性和假設的討論，請參閱 HPE 向美國證券交易委員會提交的文件，包括其最新的 10-K 表格和 10-Q 表格。

HPE assumes no obligation and does not intend to update any such forward-looking statements. We also note that the financial information discussed on this call reflects estimates based on information available at this time, and could differ materially from the amounts ultimately reported in HPE's annual report on Form 10-K for the fiscal year ended October 31, 2016.

HPE 不承擔任何義務，也不打算更新任何此類前瞻性聲明。我們還注意到，本次電話會議上討論的財務資訊反映了基於​​目前可用資訊的估計，可能與 HPE 2016 年 10 月 31 日結束的財政年度的 10-K 表年度報告中最終報告的金額存在重大差異。

Finally, for financial information that has been expressed on a non-GAAP basis, we have provided reconciliations to the comparable GAAP information on our website. Throughout this conference call, all revenue growth rates presented beginning with FY15 are adjusted to exclude the impacts of divestitures and currency.

最後，對於以非 GAAP 基礎表達的財務訊息，我們在網站上提供了與可比較 GAAP 資訊的對帳。在整個電話會議中，從 2015 財年開始呈現的所有收入成長率均經過調整，以排除資產剝離和貨幣的影響。

We believe this approach helps provide a better representation of HPE's operational performance, given the significant divestitures we've recently completed. Including the sale of Mphasis, 51% of our H3C business in China, and TippingPoint, amongst several others. Please refer to the tables and slide presentation accompanying today's earnings release on our website for details.

鑑於我們最近完成的重大資產剝離，我們相信這種方法有助於更好地反映 HPE 的營運績效。其中包括出售 Mphasis、我們在中國 H3C 業務的 51% 股份以及 TippingPoint 等。有關詳細信息，請參閱我們網站上今天收益報告隨附的表格和幻燈片演示。

With that, let me turn it over to Meg.

說完這些，讓我把它交給梅格。

Thanks, Andy, and thanks to everyone for joining us on the call today.

謝謝，安迪，也謝謝大家今天參加我們的電話會議。

FY16 was a historic year for Hewlett Packard Enterprise. During our first year as a standalone company, HPE delivered the business performance we promised, fulfilled our committed to introduce groundbreaking innovation, and began to transform the Company through strategic changes designed to enable even better focus, flexibility, and financial performance.

2016 財年對惠普企業來說是歷史性的一年。在作為獨立公司的第一年，HPE 實現了我們承諾的業務業績，履行了推出突破性創新的承諾，並開始透過旨在實現更好的專注度、靈活性和財務業績的策略變革來改變公司。

Our success in FY16 is proof that we are on the right course. HPE today has the ability to better respond to the constantly evolving marketplace, while generating long-term value for shareholders. The leadership team can dive more deeply into products, have more time to spend with customers and Partners and can confidently develop our strategy.

我們在 2016 財年的成功證明我們正走在正確的方向上。如今，HPE 有能力更好地應對不斷變化的市場，同時為股東創造長期價值。領導團隊可以更深入地研究產品，有更多的時間與客戶和合作夥伴相處，並且可以自信地制定我們的策略。

From an innovation perspective, we can be much more targeted in the investments we make. The results of all this focus are reflected in our performance. For the year, we delivered revenue of $50.1 billion, up 2% year over year when adjusted for divestitures and currency, and in line with the outlook we provided at our analyst meeting in 2015.

從創新的角度來看，我們可以更有針對性地進行投資。所有這些關注的結果都反映在我們的業績上。我們全年實現營收 501 億美元，經資產剝離和貨幣調整後年增 2%，與我們在 2015 年分析師會議上提出的預期一致。

While there is always more work to do, our go-to-market motion is strong and our increased confidence is really paying off. We saw growth this year in key areas of the portfolio, including high-performance compute, cloudline servers, all flash storage, converged systems, mission-critical systems, and networking with Aruba.

儘管總是有更多工作要做，但我們的市場進入動力強勁，我們增強的信心確實得到了回報。今年，我們看到產品組合的關鍵領域都實現了成長，包括高效能運算、雲端伺服器、全快閃儲存、融合系統、關鍵任務系統以及與 Aruba 的網路。

Technology services returned to growth in the last two quarters of the year, and we expected that momentum to continue into FY17. Strategic enterprise services revenue grew over 30%, driven by Helion Managed Cloud which grew over 50% and virtual private cloud which grew over 100%. And in software, we saw solid SaaS and security growth, with particular strength in Vertica and Voltage solutions.

技術服務在今年最後兩個季度恢復成長，我們預計這一勢頭將持續到 2017 財年。策略企業服務收入成長超過 30%，其中 Helion 託管雲端成長超過 50%，虛擬私有雲成長超過 100%。在軟體方面，我們看到了穩健的 SaaS 和安全性成長，尤其是 Vertica 和 Voltage 解決方案。

In terms of profitability, we grew our non-GAAP operating profit as a percentage of revenue, due in large part to the tremendous progress the enterprise services team has made. ES ended the year with a non-GAAP operating profit of 7.7%, above our outlook range of 6% to 7% and in line with our long-term target of 7% to 9%.

在獲利能力方面，我們的非公認會計準則營業利潤佔收入的百分比有所增長，這在很大程度上歸功於企業服務團隊的巨大進步。 ES 本財年的非公認會計準則營業利潤為 7.7%，高於我們 6% 至 7% 的預期範圍，並符合我們 7% 至 9% 的長期目標。

In the enterprise group, we continued to hone the balance between revenue growth and profitability. During the past two quarters, we have seen steady margin improvement and feel confident that the ongoing cost actions we are taking and the greater mix of converged and software-defined solutions, as well as networking and storage will offset the pressure in core servers going forward. And in software, the team maintained a disciplined focus on cost controls, driving margin improvement in the year. Overall, we delivered FY16 non-GAAP EPS of $1.92, at the high end of our original outlook for the year.

在企業集團，我們持續磨練營收成長與獲利能力之間的平衡。在過去兩個季度中，我們的利潤率穩步提高，並且有信心我們正在採取的成本行動以及融合和軟體定義解決方案以及網路和儲存的更大組合將抵消未來核心伺服器的壓力。在軟體方面，該團隊嚴格控製成本，推動了當年利潤率的提高。總體而言，我們 2016 財年非 GAAP 每股收益為 1.92 美元，達到我們最初對今年的預期的高位。

Turning to cash flow, we delivered free cash flow of $2.1 billion, above our most recent guided range of $1.7 billion to $1.9 billion. This is particularly strong, given that we were able to offset the lower cash flow resulting from the divestiture of 51% of our H3C business through careful working capital management. Given the strong cash flow and the proceeds from recent divestitures, we were able to return over $3 billion of cash to shareholders throughout the year and still end the year with an operating company net cash position of $7.6 billion, the highest since I have been with the Company.

談到現金流，我們的自由現金流達到了 21 億美元，高於我們最近預測的 17 億美元至 19 億美元範圍。這是非常強勁的，因為我們能夠透過謹慎的營運資本管理來抵消因剝離 51% 的 H3C 業務而導致的現金流減少。鑑於強勁的現金流和近期資產剝離的收益，我們全年能夠向股東返還超過 30 億美元的現金，並且年底公司的營運淨現金狀況仍達到 76 億美元，這是我加入公司以來的最高水平。

In FY16, we also announced strategic changes to the Company that will help strengthen our performance over the long term. We completed the divestiture of our stake in Mphasis and our sale of 51% of our H3C business in China. In May, we announced the spin merge of our enterprise services business with CSC, and in September we announced the spin merge of our software business with Micro Focus.

2016財年，我們也宣布了公司策略變革，這將有助於長期增強我們的業績。我們完成了對 Mphasis 股份的剝離，並出售了中國 H3C 業務的 51% 股份。 5 月份，我們宣布將企業服務業務與 CSC 分拆合併；9 月份，我們宣布將軟體業務與 Micro Focus 分拆合併。

Together these transactions are valued over $20 billion. They will enable us to be more nimble, provide cutting edge solutions, play in higher growth markets and have an enhanced financial profile. The success of the separation of HPE and HP Inc. and the progress we've made as an independent company have been recognized by investors. HPE's stock is up more than 50% since we launched the Company on November 2, 2015.

這些交易的總價值超過 200 億美元。它們將使我們更加靈活，提供尖端解決方案，在更高成長的市場中發揮作用，並擁有更強大的財務狀況。 HPE與HP Inc.分離的成功以及我們作為獨立公司所取得的進步得到了投資者的認可。自 2015 年 11 月 2 日成立公司以來，HPE 的股價已上漲超過 50%。

Looking forward, the HPE that emerges after the two spin mergers will have a clear vision, the right assets and direct line of sight to significant market opportunities. Our goal is to be the industry's leading provider of hybrid IT built on the secure next-generation software defined infrastructure that runs our customer's data centers today, bridges them to multi-cloud environments tomorrow, and powers the emerging intelligent edge that will run campus, branch, and industrial IOT applications for decades to come, all delivered through a world-class services capability.

展望未來，兩次分拆合併後誕生的 HPE 將擁有清晰的願景、合適的資產以及對重大市場機會的直接關注。我們的目標是成為業界領先的混合 IT 提供商，該提供商建立在安全的下一代軟體定義基礎架構之上，該基礎架構當前運行客戶的數據中心，未來將其橋接到多雲環境，並為未來幾十年運行校園、分支機構和工業物聯網應用的新興智能優勢提供支持，所有這些都通過世界一流的服務能力提供。

Let me spend a minute on each element of our vision. First, we believe the world is going to be hybrid, and our mission is to make hybrid IT simple. To do this, we offer market-leading technology across the traditional data center, software-defined infrastructure and private cloud.

請容許我花一點時間來闡述我們願景的每個要素。首先，我們相信世界將會是混合的，我們的使命是讓混合 IT 變得簡單。為此，我們提供涵蓋傳統資料中心、軟體定義基礎架構和私有雲的市場領先技術。

We are focused on winning in key growth areas in the traditional data center, like big data analytics, high-performance compute, all-flash storage and networking. To that end, this year we announced the game changing new products with the new versions of our gen 9 servers and three parse store serve systems.

我們專注於傳統資料中心的關鍵成長領域，例如大數據分析、高效能運算、全快閃儲存和網路。為此，今年我們發布了改變遊戲規則的新產品，包括新版本的第九代伺服器和三個解析儲存服務系統。

We also acquired SGI, cementing our leadership position in high-performance computing and strengthening our capability in data analytics. In fact, it was just announced that we now have 140 high-performance computing systems on the top 500 super computing list, more than anyone else in the industry.

我們也收購了 SGI，鞏固了我們在高效能運算領域的領導地位，並增強了我們在數據分析方面的能力。事實上，我們剛剛宣布，現在我們有 140 個高效能運算系統躋身超級運算 500 強榜單，比業內任何其他公司都多。

In software-defined infrastructure, we launched new categories with offerings like synergy the industry's first composable infrastructure and our hyper converged 380 solution, which was just named the number one data center infrastructure product in CRN's annual Tech Innovator Awards, beating out solutions from Dell EMC and Cisco. And we are establishing an ecosystem of partners to bring together and integrate the industry's best technologies from companies like Arista, Mesosphere, Docker, Chef, and Microsoft du jour to allow customers to seamlessly manage across an increasingly complex set of environments.

在軟體定義基礎設施方面，我們推出了新的類別，包括業界首個可組合基礎設施協同效應和超融合 380 解決方案等產品，該解決方案剛剛在 CRN 年度技術創新者獎中被評為第一數據中心基礎設施產品，擊敗了戴爾 EMC 和思科的解決方案。我們正在建立一個合作夥伴生態系統，匯集和整合 Arista、Mesosphere、Docker、Chef 和 Microsoft du jour 等公司的業界最佳技術，使客戶能夠在日益複雜的環境中進行無縫管理。

Second, we will power the emerging intelligent edge. As data volumes increase and business environments outside of the data center like factories and retail stores, customers need a new set of tools to gather, process, and analyze the critical information that will allow them to make decisions in real-time. This means that they need compute, storage and connectivity at the edge integrated into their operational environment and seamlessly connected to their hybrid IT environments.

第二，我們將為新興的智慧優勢提供動力。隨著資料量的增加以及工廠和零售店等資料中心以外的商業環境的增加，客戶需要一套新的工具來收集、處理和分析關鍵訊息，以便他們能夠即時做出決策。這意味著他們需要將運算、儲存和邊緣連接整合到他們的營運環境中，並無縫連接到他們的混合 IT 環境。

Through our Aruba offerings in security, analytics and connectivity and our edgeline converged IOT systems we are building an ecosystem of partners and bringing unique solutions to this fast-growing market. I like to say we are going to be the IT in IOT.

透過我們的 Aruba 安全、分析和連接產品以及我們的邊緣融合物聯網系統，我們正在建立合作夥伴生態系統並為這個快速成長的市場帶來獨特的解決方案。我想說我們將成為物聯網中的 IT。

Third, services is going to be more critical than ever, as customers look to deploy both hybrid IT and the intelligent edge programs. They need a partner who can help them manage through change and complexity.

第三，由於客戶希望部署混合 IT 和智慧邊緣程序，服務將變得比以往任何時候都更加重要。他們需要一個能夠幫助他們應對變化和複雜性的合作夥伴。

Our technology services organization delivers world-class advisory, support and consumption models, as well as building customer solutions from the ground up. In addition to our TS group that provides these advisory, transformation and support capabilities, our financial services organization brings the financial flexibility and consumption models that our customers are increasingly looking for.

我們的技術服務機構提供世界一流的諮詢、支援和消費模式，並從頭開始建立客戶解決方案。除了我們的 TS 集團提供這些諮詢、轉型和支援能力之外，我們的金融服務組織還帶來了客戶日益尋求的財務靈活性和消費模式。

With this portfolio, we estimate that we have a total of addressable market of over $250 billion that is growing at 2% to 3% a year. And within that there are areas of very high growth, like high-performance compute, private cloud, software defined networking and industrial IOT. We are already well-positioned to lead in these areas and you will see us continue to invest in a targeted way.

透過這個投資組合，我們估計我們的潛在市場總額超過 2500 億美元，並且每年的成長率為 2% 至 3%。其中包括一些成長非常迅速的領域，如高效能運算、私有雲、軟體定義網路和工業物聯網。我們已經準備好在這些領域處於領先地位，並且您將看到我們繼續以有針對性的方式進行投資。

What is most exciting is that our approach is resonating with our customers and the industry. The fourth quarter we continued to win customers looking for hybrid IT and intelligent edge solutions. For example, in hybrid IT we recently replaced the 19 your EMC relationship with a major global healthcare company where will provide services and technology to deliver simplicity, operating efficiencies, and automation as the company modernizes and realigns their core storage and compute platforms. In the intelligent edge market, Nordstrom recently named Aruba as their preferred provider for their WiFi services strategy in all of their stores, distribution centers and corporate sites.

最令人興奮的是，我們的方法引起了客戶和行業的共鳴。第四季度，我們繼續贏得尋求混合 IT 和智慧邊緣解決方案的客戶。例如，在混合 IT 領域，我們最近與一家大型全球醫療保健公司取代了 19 家 EMC 公司，後者將在該公司實現其核心儲存和運算平台的現代化和重新調整時提供服務和技術，以實現簡單性、營運效率和自動化。在智慧邊緣市場，Nordstrom 最近將 Aruba 指定為其所有商店、配送中心和公司站點的 WiFi 服務策略的首選供應商。

We announced a significant new wireless network rollout a Penske truck leasing to enable greater workforce productivity and connectivity at its truck facilities. Finally, our technology services business continues to deliver significant value to customers and win deals. For example in Q4, TS won a major five-year deal with its flexible capacity service for a large European auto manufacturer. It also won a five-year agreement with a large global bank based in Europe, which chose our data center care service to operate its data centers around the world.

我們宣布推出一項重要的新無線網絡，即 Penske 卡車租賃，以提高其卡車設施的員工生產力和連結性。最後，我們的技術服務業務繼續為客戶提供巨大價值並贏得交易。例如在第四季度，TS 憑藉其靈活的產能服務贏得了一家大型歐洲汽車製造商的為期五年的重要合約。它還與一家位於歐洲的大型全球銀行簽訂了一項為期五年的協議，該銀行選擇我們的資料中心維護服務來營運其在世界各地的資料中心。

Looking ahead, next week we kick off at discover London where we will bring together nearly 10,000 customers and partners to demo our latest products and services. During the week we with the exciting product announcement across hybrid IT and the intelligent edge and hear from some of our customers about how we are helping them achieve their business outcomes.

展望未來，下週我們將在倫敦探索之旅拉開序幕，屆時我們將聚集近 10,000 名客戶和合作夥伴來展示我們最新的產品和服務。本週，我們發布了有關混合 IT 和智慧優勢的令人興奮的產品公告，並聽取了一些客戶的意見，以了解我們如何幫助他們實現業務成果。

Overall I am very pleased with the progress we made in FY16. We delivered the financial performance we promised, fulfilled our commitment to groundbreaking innovation. And began to transform the Company in ways we believe deliver an exciting future for customers partners employees and investors. I'm excited about the path we see ahead and very much look forward to the journey.

整體而言，我對我們在 2016 財年的進展感到非常滿意。我們實現了所承諾的財務業績，履行了我們對突破性創新的承諾。並開始以我們認為能夠為客戶、合作夥伴、員工和投資者帶來令人興奮的未來的方式改變公司。我對我們未來的道路感到興奮，並非常期待這趟旅程。

Now I will hand the call over to Tim, who will provide details on the quarter

現在我將把電話交給 Tim，他將提供有關本季度的詳細信息

Thanks Meg and good afternoon everyone. I agree that FY16 with a strong first-year across a number of fronts. We successfully delivered a financial outlook we laid out at the beginning of the year, while making several strategic portfolio changes.

謝謝梅格，大家下午好。我同意 2016 財年在多個方面都表現強勁。我們成功實現了年初制定的財務前景，同時進行了多項策略性投資組合調整。

Now I will spend some time providing more detail on our fourth-quarter results. Overall I would say that we performed well and our top market and continue to make progress improving our cost structure and strengthening our go to market approach. Fourth quarter revenue of $12.5 billion was down approximately 2% when adjusted for divestitures and currency is we continue to focus on profitable market share and executed well in an uneven global demand environment.

現在我將花一些時間提供有關我們第四季業績的更多細節。總的來說，我想說我們的表現很好，佔據了我們的頂級市場，並繼續在改善成本結構和加強行銷方式方面取得進展。第四季營收為 125 億美元，經資產剝離和貨幣調整後下降約 2%，我們繼續專注於獲利市場份額，並在全球需求不均衡的環境中表現良好。

From a macro perspective, we saw continue to revenue softness in Europe particularly in ES due to persistent slowing in the UK public sector business. On an as-reported basis, performance of the Americas was encouraging with low single digit growth in the enterprise group and services.

從宏觀角度來看，由於英國公共部門業務持續放緩，我們看到歐洲尤其是西班牙的收入持續疲軟。據報道，美洲地區的業績令人鼓舞，企業集團和服務業務均實現了低個位數成長。

APJ performance was mixed with improved EG and ES result in both China and Japan, but weakness and the rest of Asia. Currency fluctuations were headwind of revenue by 110 basis points year-over-year, driven by depreciation in the British pound and somewhat offset by appreciation in the Japanese Yen.

APJ 地區表現不一，中國和日本的 EG 和 ES 表現均有所改善，但亞洲其他地區則表現疲軟。貨幣波動對收入造成不利影響，年減 110 個基點，主要原因是英鎊貶值，但日圓升值在一定程度上抵消了這一影響。

Turning to profitability, gross margin of 30.4% was up 80 basis points year-over-year due to continued improvements to deal profitability and enterprise services. Sequentially gross margin was up 110 basis points, principally due to normal seasonable uplift in both ES and software. We continued to drive cost productivity and reduce non-GAAP operating expenses as a percentage of revenue by 120 basis points sequentially and 70 basis point year over year, with significant improvements in ES delivery cost.

談到獲利能力，由於交易獲利能力和企業服務的持續改善，毛利率為 30.4%，較去年同期成長 80 個基點。毛利率較上月上升 110 個基點，主要由於 ES 和軟體的正常季節性成長。我們持續提高成本生產力，並將非公認會計準則營運費用佔收入的百分比環比降低 120 個基點，與去年同期相比降低 70 個基點，ES 交付成本顯著改善。

Also, EG continued to execute on the cost plan we discussed at SAM, in order to further align costs with revenue. Given those actions, non-GAAP operating profit of 11.1% was up 150 basis points year-over-year and 230 basis points sequentially.

此外，EG 繼續執行我們在 SAM 討論的成本計劃，以進一步使成本與收入保持一致。鑑於這些舉措，非公認會計準則營業利潤達到 11.1%，比去年同期成長 150 個基點，比上一季成長 230 個基點。

Non-GAAP diluted net earnings per share of $0.61 was in line with our outlook of $0.58 to $0.63. For the full year, non-GAAP net diluted earnings per share was $1.92 and the center of our outlook of $1.90 to $1.95. Fourth quarter non-EPS primarily includes tax obligation settlements of $647 million and pretax amounts of for restructuring charges of $395 million, separation charges of $293 million, and amortization of intangible assets of $126 million, offset by tax indemnification adjustments of $311 million and the gain from the emphasis divestiture of $253 million.

非公認會計準則每股攤薄淨收益為 0.61 美元，符合我們預期的 0.58 美元至 0.63 美元。全年非公認會計準則每股攤薄淨收益為 1.92 美元，我們預期的中間值為 1.90 美元至 1.95 美元。第四季度非每股收益主要包括 6.47 億美元的稅務結算和 3.95 億美元的重組費用、2.93 億美元的分離費用以及 1.26 億美元的無形資產攤銷的稅前金額，但被 3.11 億美元的稅收補償調整和 2.53 億美元的重點資產剝離收益所抵消。

We delivered GAAP diluted net earnings per share of $0.18, below our previous-provided outlook range of $0.44 to $0.49, primarily due the previously mentioned settlements of outstanding Hewlett Packard Company tax allegations that we shared with HP Inc. through our separation agreement.

我們實現的 GAAP 稀釋每股淨收益為 0.18 美元，低於我們之前提供的 0.44 美元至 0.49 美元的預期範圍，主要原因是我們之前提到的透過分離協議與 HP Inc. 分享的未償惠普公司稅務指控的和解。

Now turning to the result of by business. In the enterprise group we continued to work on improving operating margins by focusing on profitable deals, reducing discretionary spend, and delayering as we rightsize the organization ahead of the separation from ES and software. Operating margins, while down slightly year-over-year were up 60 basis points sequentially to 13.2%.

現在來談談業務的結果。在企業集團，我們繼續致力於提高營業利潤率，方式是專注於獲利交易、減少可自由支配的支出，並在與 ES 和軟體分離之前精簡組織規模。營業利潤率較去年同期略有下降，但較上季上升 60 個基點，達到 13.2%。

Revenue declined 3% in Q4. However we had several areas of encouraging growth across the portfolio. Aruba was up 13%. All flash arrays were up more than 100%. High-performance compute was up more than 30%. And we had our third consecutive quarter of year-over-year growth in mission-critical systems. And our highest margin business, technology services, grew for the second consecutive quarter.

第四季營收下降3%。然而，我們的投資組合中有幾個領域實現了令人鼓舞的成長。阿魯巴上漲了 13%。所有快閃記憶體陣列均上漲超過 100%。高效能運算成長了30%以上。我們的關鍵任務系統連續第三個季度實現年成長。我們利潤最高的業務——技術服務——連續第二季實現成長。

These results are a reflection of the continued investment we have made in our higher growth businesses like our software defined, converged, and hyper converged offerings, as well as our go to market efforts. Server revenue declined 6% as growth in high-performance and mission-critical compute was offset by pressure on the core servers and service provider vertical.

這些結果反映了我們對高成長業務（如軟體定義、整合和超融合產品）的持續投資，以及我們的市場推廣努力。由於高效能和關鍵任務運算的成長被核心伺服器和服務供應商垂直市場的壓力所抵消，伺服器收入下降了 6%。

In the core, we saw some incremented competitive pressure, particularly in blades. However, our recently launched synergy line will allow us to better compete in the blade segment, and we anticipate taking back share as this product line ramps. As we previously discussed we are prioritizing profit over market share and as a result, saw some sales contraction in tier 1.

在核心領域，我們看到競爭壓力增加，特別是在刀片領域。然而，我們最近推出的協同生產線將使我們在刀片領域具有更好的競爭力，並且我們預計隨著該產品生產線的成長，我們將重新奪回市場份額。正如我們之前所討論的，我們優先考慮利潤而不是市場份額，因此，我們看到一級市場的銷售額有所萎縮。

While this has put some pressure on revenue with the opportunities to grow the tier 2 and tier 3 space, which are growing faster and have better economics including greater TS attach. Encouragingly the growth in high-performance compute and mission-critical systems was independent of our acquisition of SGI, which we completed just after the end of the quarter and should help drive other profitable growth.

雖然這給收入帶來了一些壓力，但二線和三線市場有機會成長，因為這些市場成長更快，經濟效益更好，包括更大的 TS 附加價值。令人鼓舞的是，高效能運算和關鍵任務系統的成長與我們對 SGI 的收購無關，我們在本季末後完成了收購，這將有助於推動其他獲利成長。

Storage revenue declined 3% with continued contraction in the legacy portfolio. However the higher-margin converged storage portfolio was up 1% and is now 56% of the total storage mix. Traditional storage declined by 11%, particularly challenged by weakness and entry storage. However our recently introduced MSA entry offerings should drive improvement going forward. Three par plus XP plus EVA was up 2%, while all flash three-part revenue grew nearly 100% and now makes up approximately 50% of total three-part revenue.

由於傳統產品組合持續萎縮，儲存收入下降了 3%。然而，利潤率更高的融合儲存產品組合上漲了 1%，目前佔總儲存組合的 56%。傳統儲存下降了11%，尤其受到疲軟和入門儲存的挑戰。然而，我們最近推出的 MSA 入門產品應該會推動未來的改進。三部分加 XP 加 EVA 增加了 2%，而全快閃三部分收入成長了近 100%，目前約佔三部分總收入的 50%。

Keep in mind all flash only makes up 10% of data center storage today. So with the a significant growth opportunity going forward. We also anticipate some uplift from our recently announced compression offerings, which fill a gap in our portfolio.

請記住，目前全快閃記憶體僅佔資料中心儲存的 10%。因此，未來我們將面臨巨大的成長機會。我們也預計，我們最近宣布的壓縮產品將帶來一些提升，填補我們產品組合的空白。

Networking revenue was flat, but encouragingly Aruba continue to pay share and grew 13%. We should see this growth in Aruba accelerate next quarter is we had from installations in the quarter pushed out into Q1. Also we did see a slowdown on E-rate government infrastructure spending for education, which impacted both wireless and switching on campus.

網路收入持平，但令人鼓舞的是，Aruba 繼續支付份額並成長了 13%。我們應該看到 Aruba 在下個季度的成長加速，因為我們將本季的安裝量推遲到了第一季。我們也看到政府對教育基礎設施支出的 E-rate 有所放緩，這對校園的無線和交換都產生了影響。

And keep in mind we just launched our new Arista partnership, which enabled us to offer highly differentiated data center networking solutions, which we expect will grow in future quarters. Technology services group for the second consecutive quarter with revenue up 2%.

請記住，我們剛剛建立了新的 Arista 合作夥伴關係，這使我們能夠提供高度差異化的資料中心網路解決方案，我們預計該解決方案在未來幾季將會成長。技術服務集團連續第二季營收成長2%。

Orders are also returned to growth in the quarter and grew for the full year. We saw encouraging performance in non-attach and proactive services and continue to improve service intensity, or attached dollars per unit, both of which are helping to offset increased tier 1 mix and lower server units.

本季訂單量也恢復成長，全年也實現成長。我們看到非附加服務和主動服務的表現令人鼓舞，並且服務強度或每單位附加美元不斷提高，這兩者都有助於抵消增加的一級組合和較低的伺服器單位。

Enterprise services revenue declined 2% as a growth in the Americas and APJ was more than offset by softness and EMEA. For the full year, revenue declined 1.1%, inline with the outlook we provided at the 2015 analyst day. Operating profit improved 250 basis points year-over-year to 10.7%, the highest since the fourth quarter of 2009, as the team continues to execute on productivity improvements, and delivery and sales.

企業服務收入下降 2%，因為美洲和亞太及日本地區的成長被歐洲、中東和非洲地區的疲軟所抵消。全年營收下降 1.1%，與我們在 2015 年分析師日提供的預測一致。由於團隊持續致力於生產力改善、交付和銷售，營業利潤年增 250 個基點至 10.7%，為 2009 年第四季以來的最高水準。

For the full year, we delivered operating margins of it 7.7%, well above our original guidance of 6% to 7%. We continue to track against our longer term goal of 60% headcount and low cost locations and completed the quarter with 51% of our headcount in low cost locations. This is an 8-point improvement since the beginning of the fiscal year. It is also worth highlighting that our customer satisfaction has increased following the is cost structure improvements and the spin merge announcement.

全年我們的營業利益率為 7.7%，遠高於我們最初預期的 6% 至 7%。我們繼續朝著 60% 的員工人數和低成本地點的長期目標邁進，並在本季度完成了 51% 的員工人數在低成本地點的工作。這是本財年開始以來 8 個百分點的進步。另外值得強調的是，隨著成本結構的改進和分拆合併公告的發布，我們的客戶滿意度有所提高。

Software revenue was flat as strength in security was offset by declines in IT management, and Big Data. We have stabilized license revenue, which was only down 1% as compared to down 18% in Q3. Also encouragingly the renewal rate for high-margin support contracts improved three points year-over-year to over 90%.

軟體收入持平，因為安全方面的優勢被 IT 管理和大數據方面的下滑所抵消。我們的授權收入已經穩定下來，與第三季下降 18% 相比，僅下降了 1%。同樣令人鼓舞的是，高利潤支援合約的續約率年增了 3 個百分點，達到 90% 以上。

SaaS has another record quarter with 11% record growth of the key team also continue to focus on disciplined cost controls and as a result the uppity margin improved 220 basis points to 32.1%. HPE financial services revenue grew 2% and delivered its second consecutive quarter of year-over-year as- reported revenue growth. Operating profit declined 70 basis point year over year to 10.2% from higher operating expenses and lower residual maturities.

SaaS 本季再創紀錄，成長 11%，主要團隊也持續注重嚴格的成本控制，因此溢價率提高了 220 個基點，達到 32.1%。 HPE金融服務營收成長2%，連續第二季實現年增。由於營運費用增加和剩餘期限減少，營運利潤年減 70 個基點至 10.2%。

Financing volume declined 3% in constant currency from a tough compare. Return on equity was down 200 basis points year-over-year to 14.1% and was pressured by lower residual sales resulting from lower volumes in FY13 and FY14.

與去年同期相比，融資額以固定匯率計算下降了 3%。股本回報率年減 200 個基點至 14.1%，受到 2013 財年和 2014 財年銷量下降導致剩餘銷售額下降的壓力。

Cash flow generation was strong in the quarter as we continued to improvement working capital management. Cash flow from operations was $2.2 billion about 44% year-over-year on an adjusted basis.

由於我們持續改善營運資金管理，本季現金流產生強勁。經調整後，營運現金流為 22 億美元，較去年同期成長約 44%。

Free cash flow was $1.5 billion, up 84% year-over-year on an adjusted basis. For the full year we generated free cash flow of $2.1 billion, above our most recent outlook of $1.7 billion to $1.9 billion.

自由現金流為 15 億美元，經調整後較去年同期成長 84%。全年我們產生的自由現金流為 21 億美元，高於我們最近預測的 17 億美元至 19 億美元。

Despite the H3C divestiture delivered cash flow in line with our original guidance for the year. Cash conversion cycle with six days, down 12 days sequentially. Payables were the largest contributor to working capital improvement as we continue to make progress with vendor terms.

儘管 H3C 資產剝離帶來的現金流仍符合我們對今年的最初預期。現金轉換週期為6天，較上一季減少12天。隨著我們在供應商條款方面不斷取得進展，應付款項成為營運資本改善的最大貢獻者。

Turning to capital allocation, during the quarter we paid $92 million as part of our normal dividend. We also continue to reduce share count in the fourth quarter through our accelerated share repurchase program, which required all cash be paid with the program started in Q3. For the full year we returned over $3 billion of capital shareholders really through $2.7 billion of share repurchases. This is approximately three times our original commitment at the start of the year. Lastly as part of our continued efforts to return capital to shareholders we increased our dividend payment by 18% to $0.065 per share effective for the January 4, 2017 payment.

談到資本配置，本季我們支付了 9,200 萬美元作為正常股利的一部分。我們還透過加速股票回購計畫繼續減少第四季的股票數量，該計畫要求在第三季啟動時以現金支付所有股票。全年我們透過 27 億美元的股票回購真正向股東返還了超過 30 億美元的資本。這大約是我們年初承諾金額的三倍。最後，作為我們持續努力向股東返還資本的一部分，我們將股息支付提高了 18%，達到每股 0.065 美元，自 2017 年 1 月 4 日起生效。

Moving to the announced spin merge transactions. Both the ES CSC and software Micro Focus transactions are on schedule and on budget. We filed the initial form 10 and S-4 for the ES CSC spin merge earlier this month. We anticipate filing the final Registration Statements in late February and we're on track to continue the transaction by April 1. The software Micro Focus transaction is also progressing as planned and we continue to dissipate the transaction closing on approximately August 31.

轉向已宣布的分拆合併交易。 ES CSC 和軟體 Micro Focus 交易均按計劃進行且在預算之內。我們在本月初提交了 ES CSC 分拆合併的初始表格 10 和 S-4。我們預計將於 2 月底提交最終註冊聲明，並預計在 4 月 1 日之前繼續進行交易。軟體 Micro Focus 交易也正在按計劃進行，我們將繼續在大約 8 月 31 日完成交易。

We recently gave detailed fiscal year 2017 at a securities analyst day, and I encourage you to review our financial overview presentation for a more detailed discussion of that outlook. However, I think it's worth reiterating a few points. We continue to expect FY17 non-GAAP diluted net EPS of $2.00 and $2.10 for the combined HPE as it stands today. $1.25 to $21.35 for the future HPE, and reported EPS of $1.45 to $1.55.

我們最近在證券分析師日上給出了 2017 財年的詳細報告，我鼓勵您查看我們的財務概覽演示文稿，以便更詳細地討論該前景。不過，我認為有幾點值得重申。我們繼續預期 2017 財年非 GAAP 稀釋淨每股收益為 2.00 美元，合併後的 HPE 的每股淨收益為 2.10 美元。未來 HPE 的每股收益為 1.25 美元至 21.35 美元，報告每股收益為 1.45 美元至 1.55 美元。

Normalized free cash flow for the combined HPE should be $3.6 billion to $3.9 billion, while future HPE what it generate $2.1 billion to $2.4 billion in FY17. And we expect reported free cash flow of negative $1.8 billion as cash will be significantly impacted by restructuring and separation payment, the ES pension funding, and the midyear impact of the spin merge transactions on cash generation.

合併後的 HPE 的正常自由現金流應為 36 億美元至 39 億美元，而未來的 HPE 將在 2017 財年產生 21 億美元至 24 億美元。我們預計報告的自由現金流為負 18 億美元，因為現金將受到重組和分離支付、ES 退休金資金以及分拆合併交易對年中現金產生的影響的顯著影響。

As we discussed at SAM please given my that Q1 we is a significant amount of cash, and cash flow will be even more backend loaded in FY17, as compared to normal seasonality. The key drivers in the fact that our first quarter is typically the weakest cash-generating quarter, due to the seasonality of ES and software earnings. We also make our annual bonus payment in Q1 and we expect to fund the majority of the ES pension payment in the first quarter. And finally we expect Q1 2017 non-GAAP diluted net earnings per share of $0.42 to $0.46, and we expect GAAP diluted net earnings per share to be $0.03 to $0.07.

正如我們在 SAM 上討論的那樣，考慮到我的第一季度，我們擁有大量現金，與正常季節性相比，2017 財年的現金流將更加後端加載。事實上，由於 ES 和軟體收益的季節性，我們的第一季通常是現金產生能力最弱的季度，其關鍵驅動因素是。我們還在第一季支付年度獎金，並預計在第一季支付大部分 ES 退休金。最後，我們預計 2017 年第一季非 GAAP 稀釋每股淨收益為 0.42 美元至 0.46 美元，我們預計 GAAP 稀釋每股淨收益為 0.03 美元至 0.07 美元。

Now let's open it up for questions.

現在讓我們開始提問。

(Operator Instructions)

（操作員指示）

Sherri Scribner, Deutsche Bank.

雪莉‧斯克里布納，德意志銀行。

Hi, thanks. I was hoping you could give us a little bit of detail on your thoughts about the change in the administration in the US? I know it's early days and we don't have a lot of detail, but could you maybe give us your thoughts on repatriation, if there is a repatriation holiday? And will you see any benefit if there's a tax cut for US corporations?

你好，謝謝。我希望您能詳細談談您對美國政府更迭的看法？我知道現在還為時過早，我們還沒有太多細節，但如果有遣返假期，您能否告訴我們您對遣返的看法？如果對美國企業減稅，您會看到什麼好處嗎？

Yes, sure. It's obviously early days, but if they were to make some tax changes, I'd break it down into a couple of buckets. The first one would be the US statutory rates. So to your point, if they were to reduce that, we would definitely benefit from that, and probably provide us a little bit more flexibility, maybe level the playing field a little bit with non-US multi-nationals.

是的，當然。顯然現在還為時過早，但如果他們要做出一些稅務改革，我會將其分為幾個類別。第一個是美國法定稅率。所以正如你所說，如果他們減少這個數字，我們肯定會從中受益，並可能為我們提供更多的靈活性，也許能與非美國跨國公司在公平的競爭環境中競爭。

The second bucket is around the repatriation tax. So if they were to reduce that, or provide some sort of tax holiday, that would be a benefit to us. As you know a majority of our cash is offshore. So that would again, give us some more flexibility to bring that cash onshore, and make investments in the US.

第二方面是遣返稅。因此，如果他們減少這筆金額，或提供某種形式的免稅期，那對我們來說是有利的。正如你們所知，我們的大部分現金都在海外。因此，這將再次為我們提供更多的靈活性，將現金轉移到國內，並在美國進行投資。

If they were to -- if you were bring that cash back, would you use it for a dividend, or to raise the buyback or the dividend?

如果他們——如果你把這筆現金帶回來，你會用它來分紅，還是提高回購或分紅？

Yes, we would continue to implement our disciplined ROI-based approach towards capital allocation. I mean, obviously right now, we were aggressive in 2016 with our share repurchases. To Meg's point earlier, we returned $3 billion which was 3 times our original commit. For 2017, obviously we're biased towards share repurchases, and 2017, we committed another $3 billion. So I think we'll continue to work, the disciplined ROI-based approach. It's working well for us so far, and we'll continue to operate within that framework in 2017.

是的，我們將繼續實施基於投資報酬率的嚴謹資本配置方法。我的意思是，顯然現在我們在 2016 年積極回購股票。正如梅格之前所說，我們返還了 30 億美元，這是我們最初承諾的 3 倍。對於 2017 年，我們顯然傾向於股票回購，2017 年我們又承諾了 30 億美元。所以我認為我們將繼續努力，採用基於投資報酬率的規範方法。到目前為止，我們的工作進展順利，2017 年我們將繼續按照這個框架進行工作。

Thank you.

謝謝。

Great. Thank you, Sherri. Can we have the next question, please?

偉大的。謝謝你，謝裡。我們可以問下一個問題嗎？

Kulbinder Garcha, Credit Suisse

Kulbinder Garcha，瑞士信貸

Hello. Thank you for the question. One for Meg. And just on the visibility, it looks like the Company has returned to declining revenues after a few good quarters of growth that we saw this year. Could you speak about how visibility has changed as we've gone through 2016, whether there's been any major change? And then, just one thing that's linked to that. There was a period of time, when your storage business was gaining share, and on top of that your networking business was benefiting, not only with Auruba, but also because Aruba was driving revenue synergy with switching Has that now fully played out, or should that growth there return at some point? Thanks.

你好。謝謝你的提問。一份給梅格。從可見性來看，在經歷了今年幾季的良好成長之後，該公司的收入似乎又回到了下降趨勢。您能否談談 2016 年可見度發生了怎樣的變化，是否有任何重大變化？然後，只有一件事與此相關。曾經有一段時間，您的儲存業務份額不斷增加，而且您的網路業務也受益匪淺，這不僅是因為 Aruba，還因為 Aruba 透過交換推動了收入綜效。現在這股勢頭已經完全顯現，還是說這種成長在某個時候會恢復？謝謝。

Yes, let me talk about the decline in the growth rates in the last two quarters, and particularly Q4. But I would say, when you look at the full year, the Company grew 2%, and the enterprise group, obviously which is going to be the anchor of the go-forward Hewlett-Packard Enterprise grew 3% for the year. But I think as FY16 demonstrated, that there are challenges balancing revenue and margins in EG, and now we are going to be focused on growing overall operating profit dollars. So as you know in the first half, we delivered great growth. And then, the second half, well, we delivered great growth, but the margins were lower than we would have liked.

是的，我來談談最近兩個季度，特別是第四季成長率的下降。但我想說，當你看全年業績時，公司成長了 2%，而企業集團（顯然將成為惠普企業前進的支柱）全年成長了 3%。但我認為，正如 2016 財年所表明的那樣，平衡 EG 的收入和利潤率存在挑戰，現在我們將專注於增加整體營業利潤。如您所知，我們在上半年實現了巨大的成長。然後，下半年，我們實現了巨大的成長，但利潤率低於我們的預期。

In the second half, we pivoted back more towards margins, focusing on the profitable deals and improving our cost structure, that resulted in a quarter-over-quarter margin improvement of 90 basis points in Q3, and another 60 basis points in Q4, but revenues slowed to flat in Q3, and was down 3% in Q4. So we really have -- we've spent some time titrating if you will, the balance between revenue growth and profitability. And so, now as I look at 2017, I think we can grow revenue and operating margins at the same time going forward, and let me tell you why I think that.

下半年，我們把重點更多地轉向利潤率，專注於盈利交易並改善成本結構，這導致第三季度利潤率環比提高 90 個基點，第四季度再提高 60 個基點，但收入在第三季度放緩至持平，第四季度下降 3%。所以我們確實——如果你願意的話，我們花了一些時間來平衡收入成長和獲利能力。因此，現在當我展望 2017 年時，我認為我們可以同時增加收入和營業利潤率，讓我來告訴你們我為什麼這麼想。

First is, we need to shore up core ISS rack with improvements in the channel, improvements in quote to cash, and focus on -- more focus on the distributors and VARs for the volume-related ISS rack business. Second, we've got to continue to invest in the higher growth businesses which are doing pretty well, high-performance compute with SGI, 3PAR all-flash, Aruba, Synergy, the HC 380. And those offerings are actually growing nicely, and are accretive to the overall enterprise group margins.

首先，我們需要透過通路的改進、報價與現金的改善來鞏固核心 ISS 機架，並更加關注與批量相關的 ISS 機架業務的分銷商和增值轉售商。其次，我們必須繼續投資於表現良好的高成長業務，例如 SGI 的高效能運算、3PAR 全快閃、Aruba、Synergy、HC 380。這些產品實際上成長良好，並有助於增加整個企業集團的利潤率。

Third, and this is one of those unintended great consequences of the separation of ES from Hewlett-Packard remaining company, is that alliances with former ES competitors like Accenture, PWC, the Indian outsourcers, they no longer view us as a competitor, and we are being integrated into a lot of their offerings that we were never integrated in before. And it's been fascinating to me, how much more traction, I think we're going to get with those alliance partners. And then fourth, we are enhancing our go to market with a new focus on Tier 2 and Tier 3 that offer a better growth at a higher margin.

第三，這是 ES 從惠普剩餘公司分離出來的一個意想不到的重大後果，那就是與 ES 之前的競爭對手，如埃森哲、普華永道、印度外包商結盟，他們不再將我們視為競爭對手，而且我們正在融入到他們的許多產品中，而我們以前從未融入過這些產品。令我著迷的是，我認為我們與這些聯盟夥伴的合作將會有多大進展。第四，我們正在加強市場開拓，將重點放在二線和三線市場，以更高的利潤率實現更好的成長。

And then, finally as you noted in the quarter, TS has returned to growth. And this as important, because of the margins in TS. Everyone knows how margin-rich TS is. So even a slight return to growth in the TS, actually helps mitigate margin pressure in ISS rack.

最後，正如您在本季所指出的，TS 已恢復成長。這很重要，因為 TS 中存在邊距。大家都知道TS的利潤有多豐厚。因此，即使 TS 略微恢復成長，實際上也有助於緩解 ISS 機架的利潤壓力。

And then lastly, we're continuing to optimize our cost structure, a flatter and leaner organization, with lower G&A spend, tighter alignment of R&D spend to the market opportunities, and then a further improvement in our go to market model.

最後，我們將繼續優化我們的成本結構，打造一個更扁平、更精簡的組織，降低一般行政支出，使研發支出與市場機會更加緊密地結合起來，並進一步改善我們的市場進入模式。

So listen, we sort of titrated a bit during the year. The first half was faster growth, lower margin, second half of the year was lower growth and higher-margin, and now we've got to drive down the middle of the highway for next year. And as I outlined I think there's real good reasons to think that's going to be the case.

所以聽著，我們在這一年做了一些調整。上半年成長較快，利潤率較低，下半年成長較慢，利潤率較高，現在我們必須為明年的業績做好充分準備。正如我所概述的，我認為有充分的理由相信情況會發生這種情況。

With regard to networking, Aruba is actually doing really well. It was a little slower growth this quarter, because a big implementation moved into Q4. It is still driving campus switching. And then, of course, now we are a reseller of Aruba -- I mean, of Arista. And so those revenues will fall in our P&L, and the margin that we make selling Arista will actually be margin accretive to the overall EG group. So that's why I am optimistic about revenue growth and operating margin in EG in 2017.

在網路方面，Aruba 實際上做得非常好。本季度的成長速度略有放緩，因為一項重大實施進入了第四季度。它仍在推動校園轉換。當然，現在我們是 Aruba（我是說 Arista）的經銷商。因此，這些收入將計入我們的損益表，而我們出售 Arista 所獲得的利潤實際上將增加整個 EG 集團的利潤。這就是我對 2017 年 EG 的營收成長和營業利潤率持樂觀態度的原因。

Thank you.

謝謝。

Thank you, Kulbinder Could we have the next question, please?

謝謝，Kulbinder，我們可以問下一個問題嗎？

Toni Sacconaghi, Bernstein.

托妮·薩康納吉、伯恩斯坦。

Yes. Thank you. I have one for Meg, and I guess, one for Tim. Meg, I appreciate your response on the last question. I suppose a cynic could say, your comps were pretty easy in the first half of 2016, and so you were able to grow EG. And your comps became more difficult in the second half, and you weren't able to grow, and the bad news is the comps are even tougher, for the next couple of quarters for EG.

是的。謝謝。我為梅格準備了一個，我想，也為提姆準備了一個。梅格，我很感謝你對最後一個問題的回答。我想憤世嫉俗的人可能會說，2016 年上半年你的表現相當不錯，所以你能夠發展 EG。下半年你的對手變得更加困難，你無法成長，壞消息是，對於 EG 來說，接下來的幾季對手會更加艱難。

And I can't help noting that your characterization of the server market is much more cautious than it was a couple of quarters ago. I think you characterized it as seeing ongoing pressure in core servers, and talking about Hyper Converged being lower margins and lower support attach. So it feels as though, perhaps the market is getting tougher, when you adjust for comps, I'm not sure the performance was -- and for TS, I'm not really sure the performance was much better in the second half.

我不禁要指出，您對伺服器市場的描述比幾個季度前要謹慎得多。我認為您將其描述為核心伺服器持續承受的壓力，並談到超融合的利潤率較低且支援附加價值較低。因此感覺好像市場正在變得更加艱難，當你調整比較時，我不確定表現如何 - 對於 TS，我不確定下半年的表現是否會好很多。

So I was wondering if you could characterize what you think the status of the server market is going forward, and what you think is a realistic market growth rate on a go forward basis? And whether my characteristic of your having a different opinion of that now, versus six month ago is fair?

所以我想知道您是否可以描述一下您認為伺服器市場未來的狀況，以及您認為未來現實的市場成長率是多少？您現在對此的看法與六個月前相比有何不同，我的觀點是否合理？

So listen, I actually think your comp point is actually correct, because remember Q1 and Q2, we were not yet anniversarying Cloudline, and Cloudline was a big grower for us. We also, Aruba was there as well. I would say, when you look at the market, and we did say, by the way, we thought it was going to get tougher in the second half. The main pressure we're seeing is in ISS rack, a little bit in Blade, but frankly we're going to recover in Blades because of Synergy.

所以聽著，我實際上認為你的比較點是正確的，因為記得 Q1 和 Q2，我們還沒有慶祝 Cloudline 週年紀念日，而 Cloudline 對我們來說是一個巨大的增長點。我們，阿魯巴也在那裡。我想說，當你觀察市場時，我們確實說過，順便說一句，我們認為下半年市場會變得更加艱難。我們看到的主要壓力是在 ISS 機架中，在 Blade 中也有一點壓力，但坦白說，由於 Synergy，我們將在 Blades 中恢復。

But ISS rack is where the most ongoing pressure is. Hyper Converged is actually growing, and is higher margin in our core ISS product, as is Synergy, as is high performance compute, as is mission-critical systems, and of course, as is TS. So the main area that we've got to work on, is shoring up that ISS rack. And that is all volume-based and it's all through the channel, so distys, VARs, that's things like our newly redone value-added reseller program, and our ability to do quote to cash fast, and our ability to fulfill faster than our competitors.

但國際太空站機架是承受持續壓力最大的地方。超融合實際上正在成長，並且在我們的核心 ISS 產品中利潤更高，Synergy 也是如此，高效能運算也是如此，關鍵任務系統也是如此，當然，TS 也是如此。因此，我們要進行工作的重點是加固國際太空站機架。所有這些都是基於數量的，並且都是透過通路進行的，所以分銷商、增值經銷商，也就是我們新近重做的增值經銷商計劃，以及我們快速報價兌現的能力，以及我們比競爭對手更快地完成任務的能力。

So I would say, that if we can shore up ISS rack, and then I'm confident in the growth rates of these other businesses that we're now gaining real traction in. So there is weakness in ISS rack. I think we are not executing as well as we could and we aim to fix that.

所以我想說，如果我們能夠鞏固 ISS 機架，那麼我對我們現在真正獲得動力的其他業務的成長率充滿信心。因此 ISS 機架存在弱點。我認為我們的執行效果並不理想，我們的目標是解決這個問題。

Okay. And if I could follow-up, Meg, a question for Tim, but Meg, you didn't give me your sense of what you think the market grows in servers going forward? But Tim just quickly, on cash conversion cycle, I think you talked about a sustainable level being in the mid teens. You were down at 6 days this quarter, and is that sustainable? And if it's not, then isn't that a cash headwind for next year? And are your cash flow assumptions still doable, i.e. did you kind of pull forward on cash conversion, have better cash flow this year at the expense of next year? Or do you really think we can take 6 days to the bank for next year? And Meg, if you could follow-up on that [correct rate]?

好的。梅格，如果我可以跟進的話，我想問蒂姆一個問題，但是梅格，你沒有告訴我你對未來伺服器市場成長的看法嗎？但是蒂姆，關於現金轉換週期，我認為您談到了可持續水平在十幾歲左右。本季你們的休假天數減少了 6 天，這種情況可持續嗎？如果不是，那麼這難道不會對明年的現金帶來不利影響嗎？您的現金流假設是否仍然可行，也就是說，您是否提前進行了現金轉換，以犧牲明年的現金流為代價來獲得今年的更好現金流？或者您真的認為我們可以花 6 天時間去銀行辦理明年的存款嗎？梅格，您能跟進一下這個[正確率]嗎？

Yes, so on the [CCC] to your point, we did come in a little bit hot in Q4. It was primarily driven through working capital improvements. And to your point about sustainability, we do think it's sustainable because when you look at the improvements we have made in 2016 in general, it's really around three areas. So if you look at AP, for example, we went out in 2016, and we hit up all of our suppliers and extended our payment terms. So those terms should hold through 2017, and they came in, in the fourth quarter a little bit better, the improvement came in a little bit better than we had anticipated.

是的，就您所說[CCC]而言，我們在第四季度確實表現得有點熱。這主要得益於營運資本的改善。至於您所提到的可持續性，我們確實認為它是可持續的，因為當你回顧我們在 2016 年取得的整體進步時，你會發現它主要圍繞三個領域。以 AP 為例，我們在 2016 年就與所有供應商進行了聯繫，並延長了付款期限。因此，這些條件應該會持續到 2017 年，而且在第四季度，這些條件會稍微好一些，改善程度比我們預期的要好一些。

If you look at AR, we have really spent a lot of time this year improving our processes, improving our line of sight around past dues as an example. So we've cut our past dues from call it, 10% down to 5%, and again, those are sustainable as you think about going into 2017 assuming that we execute. And then, even in inventory, inventory levels were lower than we had anticipated in Q4. Again, similar to AR, we put in some tighter reporting, improved accountability, particularly around buffer stocking on our key commodities.

如果你看一下 AR，你會發現，我們今年確實花了很多時間來改進我們的流程，例如改善我們對逾期款項的視線。因此，我們將逾期欠款從 10% 降至 5%，而且，如果我們執行的話，考慮到進入 2017 年，這些都是可持續的。然後，即使在庫存方面，庫存水準也低於我們對第四季的預期。同樣，與 AR 類似，我們也進行了更嚴格的報告，加強了問責制，特別是圍繞主要商品的緩衝庫存。

So we have plans in place, and more important, I think we have better visibility and accountability to execute. So we would anticipate those to hold in 2017. The only thing that I would say about 2017 is, we don't guide cash flow on a quarterly basis. But just keep in mind, if you are looking at CCC, there tends to be a seasonal uplift from Q4 to Q1, and that's primarily driven by purchasing linearity. But overall, we feel comfortable with our guide in 2017.

因此，我們已經制定了計劃，更重要的是，我認為我們有更好的透明度和責任感來執行。因此，我們預計這些將在 2017 年保持。關於 2017 年，我唯一想說的是，我們不會按季度指導現金流。但請記住，如果您關注 CCC，您會發現從第四季度到第一季往往存在季節性上漲，這主要是由購買線性驅動的。但總體而言，我們對 2017 年的指南感到滿意。

On market growth, Toni, we've got sort of dialed in about 1% to 2% growth rate in servers. And remember, that includes things like high-performance compute, which is an $11 billion to $12 billion market growing 6% to 8%, mission-critical systems, actually now growing again for us. Hyper Converged and Converged growing as the market, with the core ISS declining. But overall, to answer your question directly, 1% to 2%.

關於市場成長，東尼，我們已經將伺服器的成長率定在 1% 到 2% 左右。請記住，這包括高效能運算等領域，這是一個價值 110 億至 120 億美元的市場，成長率為 6% 至 8%，關鍵任務系統實際上現在對我們來說又在成長了。超融合和融合市場正在成長，而核心 ISS 正在下降。但整體而言，直接回答你的問題，1%到2%。

Thank you.

謝謝。

Great. Thank you, Toni. Can we have the next question, please?

偉大的。謝謝你，托尼。我們可以問下一個問題嗎？

Katy Huberty, Morgan Stanley.

摩根士丹利的凱蒂·休伯蒂。

Yes, thank you. At the beginning of the call, you talked a little bit about networking and storage offsetting weakness in core servers. But when you look at the storage business, it declined 3%, Converged up only 1%. So what is your outlook for storage, how quickly can it return to growth, and are you happy with the storage portfolio, or are there gaps that could help -- if you fill those gaps -- help return to growth sustainably in that segment? And I have a quick follow-up.

是的，謝謝。在通話開始時，您談到了網路和儲存如何彌補核心伺服器的弱點。但當你看看儲存業務時，它下降了3％，而融合僅增長了1％。那麼您對儲存的前景如何？它能多快恢復成長？您對儲存產品組合滿意嗎？或者是否存在一些差距？如果您填補這些差距，將有助於該領域可持續地恢復成長？我有一個快速的後續行動。

Sure. Well, let me take the first part of that, and then, Tim you can weigh in. So listen, storage as we said, it continued to be challenged by declines in traditional storage. But we're seeing very solid growth in 3PAR. Overall, it was up 5%, and all-flash was up 100% year-over-year, and is now a $750 million annualized run rate, and that excludes services.

當然。好吧，讓我先談第一部分，然後，提姆，你可以發表意見。聽著，正如我們所說，儲存繼續受到傳統儲存下降的挑戰。但我們看到 3PAR 的成長非常穩健。總體而言，它增長了 5%，全快閃同比增長 100%，目前年化運行率為 7.5 億美元，這還不包括服務。

And all-flash now makes up 50% of our 3PAR portfolio, and interestingly, still only comprises 10% of the data center. So we see more running room in our all-flash business. And the introduction, we're introducing new deduplication technology that should provide some further uplift in all-flash arrays, because that's been a gap in our portfolio.

全快閃現在占我們 3PAR 產品組合的 50%，有趣的是，它仍然只佔資料中心的 10%。因此，我們看到全快閃業務有更大的發展空間。我們推出了新的重複資料刪除技術，這將進一步提升全快閃陣列的效能，因為這是我們產品組合中的一個空白。

Traditional storage, this quarter declined 11%, and that was particularly challenged in entry storage. I think you know we introduced a new MSA offering to address the entry market, that I think should benefit us going forward.

傳統儲存本季下降了11%，入門級儲存尤其面臨挑戰。我想您知道我們推出了新的 MSA 產品來滿足入門級市場的需求，我認為這將使我們未來的發展受益。

So I think you'll see storage continue to be a strong point for us. We've got that old -- you've got traditional storage declining, and the new stuff growing. But feeling pretty good about the 2017 outlook, given the strength of the portfolio, and the momentum we have in all-flash.

所以我認為你會看到儲存繼續成為我們的強項。我們已經看到了這一點——傳統儲存正在減少，而新儲存正在成長。但考慮到產品組合的實力以及我們在全快閃領域的發展勢頭，我們對 2017 年的前景感到相當樂觀。

Meg, is there opportunity to add to the portfolio, and get the Converged mix even higher, so that it can offset the weakness in traditional longer-term?

梅格，是否有機會擴大投資組合，並進一步提高融合組合，抵消傳統長期投資的疲軟？

Yes, listen, and if you think about our growth strategy, honestly it's got four different pieces to it, and we talked about this at the security analyst meeting. But obviously as organic investment, look at our 380, HPE 380, our Edgeline products, 3PAR all-flash, our Synergy offering.

是的，聽著，如果你考慮我們的成長策略，老實說它有四個不同的部分，我們在安全分析師會議上討論了這個問題。但顯然作為有機投資，看看我們的 380、HPE 380、我們的 Edgeline 產品、3PAR 全快閃、我們的 Synergy 產品。

The second is partnerships, and actually we're very excited about our Microsoft Azure partnership that's gaining real traction, as well as our Arista partnership which is new, but actually off and running. We've got very nice pipeline building there. And then, the ones that obviously, Chef, Docker, Mesosphere things like that. And then, M&A.

第二是合作關係，實際上，我們對與 Microsoft Azure 的合作夥伴關係感到非常興奮，這種合作關係正在獲得真正的發展，同樣，我們與 Arista 的合作夥伴關係雖然是新的，但實際上已經啟動並運行。我們在那裡建設了非常好的管道。然後，顯然還有 Chef、Docker、Mesosphere 之類的東西。然後是併購。

So it's -- I mean, Tim said it well, it's the return-based M&A strategy. And the M&A that's worked for us is 3Com, 3PAR, Aruba, SGI. What do they have in common? Reasonable, and understandable valuations, enhancing the current portfolio, leveraging our distribution capabilities, and driving profitable growth. But we are very focused on a returns-based look at this.

所以——我的意思是，蒂姆說得很好，這是基於回報的併購策略。對我們有利的併購案例有 3Com、3PAR、Aruba、SGI。他們有什麼共同點？合理且可以理解的估值，增強當前的投資組合，利用我們的分銷能力，並推動獲利成長。但我們非常注重從回報的角度來看這個問題。

And as Tim said, we still think that the stock price that's embedded in Hewlett-Packard Enterprise today around remainco, if you could sort of pull out, what you think the software is worth, and what you think ES is worth, we still think there is tremendous value in the remaining company that's still embedded in overall HPE. So stock repurchase -- and as I said, stock repurchase, share buyback is -- that's where we lean towards

正如蒂姆所說，我們仍然認為，目前惠普企業的股價圍繞著 remainco，如果你能抽離出來，你認為軟體的價值是多少，你認為 ES 的價值是多少，我們仍然認為，剩下的公司仍然嵌入在整體 HPE 中，具有巨大的價值。因此，股票回購——正如我所說，股票回購，股票回購是——這就是我們傾向於的

And finally, did you see any impact of the US election? You talked a couple of times about installations being pushed out in the quarter. Obviously, there were some areas of weakness, maybe HP execution-related, but curious if you think there was any delay in spending ahead of election, that would then come back in the January quarter?

最後，您認為美國大選有什麼影響嗎？您曾多次談到本季的安裝延後。顯然，存在一些薄弱環節，可能與惠普的執行有關，但您是否認為選舉前支出方面存在任何延遲，而這些延遲會在 1 月季度再次出現？

We did not see that, not at all in the US. Actually we saw a bigger impact of Brexit, when the UK decided to leave the European Union, because it actually froze purchasing quite broadly across Europe for a bit. We didn't see that in the US.

我們沒有看到這種情況，在美國根本沒有。實際上，當英國決定脫離歐盟時，我們看到了英國脫歐的更大影響，因為它實際上暫時凍結了整個歐洲的採購。我們在美國沒有看到這種情況。

Thank you.

謝謝。

Great. Thank you, Katy. Can we have the next question, please?

偉大的。謝謝你，凱蒂。我們可以問下一個問題嗎？

Steve Milunovich, UBS.

瑞銀的史蒂夫·米盧諾維奇。

Thank you. Back on servers, Antonio at the Analyst Day talked about ASPs going up, and don't necessarily follow microprocessors, because there's more storage and so forth. Is that occurring, and do you expect that to continue to occur? And kind of the flipside of that is, you talked about backing off maybe some of the Tier 1 hyperscalers. I know Cloudline has been fairly material to you, particularly in the first half of last year. Are you anticipating Cloudline is going to be significantly less than it's been, and do you still believe you can get revenue growth?

謝謝。回到伺服器話題，安東尼奧在分析師日上談到了平均售價的上漲，但這並不一定會跟隨微處理器的上漲，因為有更多的儲存空間等等。這種情況正在發生嗎？您是否預計這種情況會繼續發生？另一方面，您談到了放棄一些一級超大規模企業。我知道 Cloudline 對您來說非常重要，尤其是在去年上半年。您是否預期 Cloudline 的營收將比現在大幅下降，並且您仍然相信您可以實現營收成長嗎？

Yes. So ASPs are going up as exactly as Antonio suggested at the security analyst meeting, and we expect that to continue. So Cloudline, listen, Cloudline is a pretty big business for us, and when done correctly, we actually make money on Cloudline. But we just have to be sure, every deal has to be looked at a one-off basis, which is, what's the forward pricing going to look like? Can we imagine making money at a forward pricing? And I basically, said to the team, listen, we do not want to be doing negative deals here for the most part. What's the point in selling things at a loss? And so, we really want to make sure that we make money on these deals, and profitable deals in Cloudline is more important than market share.

是的。因此，ASP 的上漲正如 Antonio 在安全分析師會議上所說的那樣，我們預計這種情況將持續下去。所以 Cloudline，聽著，Cloudline 對我們來說是一項相當大的業務，如果做得正確，我們實際上可以透過 Cloudline 賺錢。但我們必須確定的是，每筆交易都必須以一次性的方式看待，也就是說，遠期定價會是什麼樣的？我們能想像以遠期定價來賺錢嗎？我基本上對球隊說，聽著，我們大部分時間都不想做負面交易。虧本賣東西有什麼意義？因此，我們確實希望確保從這些交易中獲利，而 Cloudline 的獲利交易比市場份額更重要。

That said, Cloudline particularly relevant, not only in tier 1, but tier 2 and tier 3. The profit margins are better in tier 2 and tier 3. So I think Cloudline has a bright future in 2017, especially as we do a better job of penetrating tier 2 and tier 3, which is, the sales force is all focused on. But frankly, there's not a big sales force component to those deals.

話雖如此，Cloudline 尤其重要，不僅在 1 級市場，而且在 2 級和 3 級市場。 2 級和 3 級市場的利潤率較高。因此，我認為 Cloudline 在 2017 年前景光明，特別是因為我們在 2 級和 3 級市場的滲透率更高，而銷售人員都把注意力集中在這些市場。但坦白說，這些交易中不需要很大的銷售人員。

The sales force gets the leads, and then it's turned over to an engineering sale, so it has lower [FSC] associated with it. But Cloudline has been absolutely the right thing for us to do. We just need to continue to lever it into profitable deals.

銷售人員獲得銷售線索，然後將其轉交給工程銷售，因此與之相關的 [FSC] 較低。但對我們來說，Cloudline 絕對是正確的選擇。我們只需要繼續利用它來獲得有利可圖的交易。

If I could sneak one in on industrial Internet of Things. I thought it was interesting at the Analyst Day, that the Edge became a third pillar, and I understand that you define that as anything out of the data center, so Aruba is most of that today. But what about the more true Internet of Things? You talked about maybe some edge servers, most of us have heard this for five-plus years. Are we closer to something happening, and what particular role does HP play?

如果我能潛入工業物聯網的話。我認為分析師日上有趣的是，Edge 成為了第三大支柱，我知道你把它定義為資料中心之外的任何事物，所以 Aruba 今天大部分都是這樣的。但更真實的物聯網又如何呢？您可能談到了一些邊緣伺服器，我們大多數人已經聽說這個五年多了。我們是否更接近某些事情的發生？惠普在其中扮演什麼特殊角色？

Yes. Well, I don't, you probably haven't heard from us in the past five years, because really, I think we've begun to understand the opportunity for compute and storage at the edge, with intelligence built in, in the last year and a half since we have owned Aruba. And our first product there, the Edgeline Converged systems, we're pretty excited about that, and you can start to see some real momentum in the field. But it's early days for us, it's early days for us.

是的。嗯，我不知道，你可能在過去五年裡沒有聽過我們的消息，因為真的，我認為自從我們擁有 Aruba 以來的一年半里，我們已經開始了解邊緣運算和儲存的機會，以及內建的智慧。我們的第一款產品是 Edgeline Converged 系統，我們對此感到非常興奮，您可以開始看到該領域的一些真正發展勢頭。但對我們來說，現在還為時過早，對我們來說，現在還為時過早。

And the way I would think about it is, IoT is largely very industry vertical focused, which is why we focused on industrial IoT, with probably four verticals that we want to go after. And then becoming known for being the IT and IoT. So that you can compute, and store at the edge with Vertica built in. So that is the strategy, it's early days, I think it is another growth leg for the Company. But remember, this is early days, we're excited about it. But we've got some work to do, to prove it out over the next year to 18 months.

我的想法是，物聯網很大程度上非常注重垂直產業，這就是我們專注於工業物聯網的原因，我們可能想要追求四個垂直領域。然後因 IT 和 IoT 而聞名。這樣您就可以使用內建的 Vertica 在邊緣進行運算和儲存。這就是我們的策略，雖然還處於早期階段，但我認為這是公司的另一個成長點。但請記住，這才剛開始，我們對此感到興奮。但我們還需要做一些工作來在未來一年到一年半內證明這一點。

Thanks.

謝謝。

Great. Thank you, Steve. Could we have the next question, please?

偉大的。謝謝你，史蒂夫。我們可以問下一個問題嗎？

Simon Leopold, Raymond James.

西蒙李奧波德、雷蒙詹姆斯。

Great. Thank you for taking my question. I wanted to talk about what you've been doing in response to the shifts in foreign exchange rates. In particular, I have the impression you've had to raise some prices in Europe. I just want to understand whether that's some of the issue you experienced with a little bit of softness in Europe? And then, in terms of the outlook, if there is inflation in the United States, and what your assumptions are for foreign exchange rates as we go into 2017? Thank you.

偉大的。感謝您回答我的問題。我想談談你們針對外匯匯率變動所採取的措施。特別是，我感覺你們必須提高歐洲的一些價格。我只是想了解這是否是你們在歐洲遇到的稍微軟弱的問題之一？那麼，就前景而言，如果美國出現通貨膨脹，您對 2017 年外匯匯率的假設是什麼？謝謝。

Yes, sure. So as far as Q4, we did see a little bit of FX pressure, but not significant. But to your point, as you look, I mean, the currency environment has definitely been volatile in the last few weeks. And to your point, when you look at sort of where the rates are today, versus where we guided, call it mid October, some of the rates are unfavorable. For example, if you look at to the euro, the euro was at [1.10], and now it's probably [1.06] or [1.07], something like that.

是的，當然。就第四季度而言，我們確實看到了一點外匯壓力，但並不顯著。但就你的觀點而言，正如你所說，過去幾週的貨幣環境確實一直很不穩定。正如您所說，當您查看今天的利率水平，與我們預測的 10 月中旬的利率水平相比，您會發現有些利率是不利的。舉個例子，如果你看看歐元，歐元匯率之前是 [1.10]，現在可能是 [1.06] 或 [1.07] ，諸如此類。

So given our global footprint, that does put some pressure on the operations now. Having said that, it's very early in the year, and we do have some hedging programs in place. So we didn't feel it was prudent at this stage to adjust our guide. And then, in addition to that, the teams are being very proactive, and very aggressive around the cost structure.

因此，考慮到我們的全球影響力，這確實給現在的營運帶來了一些壓力。話雖如此，今年才剛開始，我們確實已經實施了一些對沖計劃。因此我們認為現階段調整指南是不明智的。除此之外，團隊在成本結構方面也非常積極主動，並且非常積極進取。

They're also, to your point in EMEA, we are looking at opportunities to improve pricing, to offset some of that pressure. I would just say this, to wrap it up, is we're keeping a close eye on the currencies, and at the same time, we're also implementing operational actions to help mitigate any pressure.

正如您所說，在歐洲、中東和非洲地區，我們正在尋找機會改善定價，以抵消部分壓力。總而言之，我想說的是，我們正在密切關注貨幣，同時我們也在實施操作措施來幫助減輕任何壓力。

One of the things I think, that we figured out probably three or four years ago, is we were probably in a strengthening dollar environment for the foreseeable future, and that was after 10 years, where currency was the wind at most businesses' back. And three or four years ago that changed, and it changed hard.

我認為，我們大概在三、四年前就意識到了這一點，在可預見的未來，我們可能處於一個美元走強的環境中，而這已經是十年前的事了，在這十年裡，貨幣一直是大多數企業背後的推動力。但三、四年前，情況發生了變化，而且變化很大。

So we have completely internalized, that we have to have a cost structure that allows us to win, in a challenging foreign exchange environment. And so, that's why we've taken the costs out of the Company that we have. That is why we're making sure that there are virtually no stranded costs left at Hewlett Packard Enterprise, after software goes, and ES goes.

因此，我們已經完全內化了這一點：我們必須擁有一個能夠讓我們在充滿挑戰的外匯環境中獲勝的成本結構。所以，這就是我們從公司中剔除成本的原因。這就是為什麼我們要確保在軟體和 ES 消失之後，惠普企業 (Hewlett Packard Enterprise) 幾乎不會留下任何擱淺成本。

I mean, we basically, by the end of this fiscal year, we'll have no stranded costs at all, relative to these two big divestitures, which for a Company our size and scale is a pretty big achievement. Because one of the things of that I think we've come to realize is, the overhead structure that was required to knit together the old HP, and then Hewlett-Packard Enterprise is -- was a pretty high overhead structure because the diversity of the businesses. We ought to be able to run much meaner and leaner, and we anticipate exiting the year at a much lower overhead, as a percentage of revenue than we have in the past.

我的意思是，基本上，到本財年結束時，相對於這兩次大規模資產剝離，我們將沒有任何擱淺成本，對於我們這樣的規模和範圍的公司來說，這是一個相當大的成就。因為我認為我們已經意識到的一件事是，將舊的惠普和惠普企業整合在一起所需的管理費用結構是相當高的，因為業務的多樣性。我們應該能夠更精簡地運營，我們預計今年的管理費用佔收入的百分比將比過去低得多。

Thank you for taking the question.

感謝您回答這個問題。

Thank you, Simon. Next question, please?

謝謝你，西蒙。請問下一個問題？

Maynard Um, Wells Fargo.

富國銀行的梅納德‧烏姆 (Maynard Um)。

Hi, thanks, You talked to more, about more focusing on profit versus revenues in the back half. But as I look at your EG margins, it's lower than I think would be normal sequential growth. Can you just walk us through the factors there, and whether this should be the base to use for Op margins going forward, pretty much from here, bottom in Q1, and then rising going forward? And then, I have a follow-up?

嗨，謝謝，您談論得更多，並更多地關注下半年的利潤而不是收入。但當我查看您的 EG 利潤率時，我發現它低於我認為的正常連續成長。您能否向我們簡單介紹其中的因素，以及這是否應該成為未來營運利潤率的基礎，從現在開始，在第一季觸底，然後繼續上升？然後，我還有後續行動嗎？

Yes, sure. I mean, if you look at sequentially, I mean, EG margins were up about 90 basis points in Q3, and then in Q4, up another 60 basis points. So we are seeing some improvement.

是的，當然。我的意思是，如果按順序來看，EG 利潤率在第三季度上漲了約 90 個基點，然後在第四季度又上漲了 60 個基點。因此我們看到了一些改善。

If you look at total year, or if you look at year-over-year, there is a negative 40 basis points. So one thing that you do need to keep in mind, is the H3C divestiture. So that was profit, that was flowing through Op profit in last year, and this year it's flowing through OI&E. So I think that could be part of the discrepancy as well.

如果你看全年數據，或看年比數據，你會發現有-40個基點。因此，你需要記住的一件事是 H3C 的剝離。這就是利潤，這是去年流入營運利潤的利潤，今年則是流入營業利潤和支出利潤。所以我認為這也可能是造成差異的部分原因。

Got it. And then, could you help us understand your thought process around the timing of share repurchases this fiscal year? Do you think you'll wait until the spins to get more aggressive in the buybacks, or because if you wait until the spin of ES, for example, you'd be able to buy back shares presumably in the teens, versus where your stock is now in the low [$20s]. So I'm just curious if you can give us a sense of about how you think about timing on share repurchases?

知道了。那麼，您能否幫助我們了解您對本財年股票回購時機的思考過程？您是否認為您會等到旋轉後再更積極地進行回購，或者因為如果您等到 ES 旋轉後，您大概能夠回購十幾歲的股票，而您的股票現在處於 [20 美元出頭]。所以我很好奇，您能否告訴我們您對股票回購時機的看法？

Yes, the stock price will go down, or will be adjusted if you will, once we do the divestitures. But we try to take a balanced approach, so we will be buying stock back throughout the course of the year. So we just want to make sure we keep a balanced perspective on the share buybacks.

是的，一旦我們進行資產剝離，股價就會下跌，或者說會進行調整。但我們試圖採取平衡的方法，因此我們將在全年回購股票。因此，我們只是想確保我們對股票回購保持平衡的看法。

Great. Thank you.

偉大的。謝謝。

Great. Thank you, Maynard. Next question, please?

偉大的。謝謝你，梅納德。請問下一個問題？

Shannon Cross, Cross Research.

香農·克羅斯（Shannon Cross），Cross Research。

Thank you. I was curious, Meg, can you talk a little bit about what you're seeing in the competitive landscape? Obviously, Dell EMC has closed, Lenovo just announced their deal with Nimble. I'm just kind of curious as what you're seeing from your competitors? And then, I have a follow-up.

謝謝。我很好奇，梅格，你能談談你所看到的競爭格局嗎？顯然，戴爾 EMC 已經關閉，聯想剛剛宣布與 Nimble 達成交易。我只是有點好奇您從競爭對手那裡看到了什麼？然後，我有一個後續問題。

Yes, so listen, as always, it's a very competitive environment out there. And I can just sort of start at the top. I think Cisco is aggressive, but we have seen some weakening in UCS and DCE.

是的，聽著，一如既往，外面的競爭環境非常激烈。我可以從頂部開始。我認為思科很積極，但我們看到 UCS 和 DCE 有所減弱。

They are not as aggressive as they were probably to 18 months to two years ago. Dell EMC, it's hard for us to tell how well Dell EMC is doing, because of course, they are not a public company anymore, but we like our win rate. We like the -- we like our strategy of getting smaller and more focused, while they're still integrating a very large acquisition.

他們可能不像 18 個月到 2 年前那麼積極了。 Dell EMC，我們很難判斷 Dell EMC 的表現如何，因為他們當然不再是一家上市公司，但我們喜歡我們的勝率。我們喜歡—我們喜歡我們的規模更小、更專注的策略，而他們仍在整合一項非常大的收購。

And Lenovo, we intercepted a huge amount of server volume in the move from IBM to Lenovo, and we haven't seen them pop back yet. I don't ever count Lenovo out. Okay, so they may be just about ready to get up off of the mat here, but we'll see in the next 6 to 18 months. And then, we're actually seeing some Huawei pressure in Latin America, and a little bit in Europe -- not in the United States, a little bit in European, quite a bit in Latin America. And we're trying to basically make sure that -- in my view it's easier to hold share, than to gain it back. And so, we're making some investments in areas that they're trying to make inroads into, so that they don't create a profit pool from which they can leap to another country.

而聯想，在從 IBM 遷移到聯想的過程中，我們截獲了大量的伺服器容量，而且我們還沒有看到它們回升。我從來不會忽視聯想。好的，他們可能正準備從墊子上站起來，但我們將在未來 6 到 18 個月內看到結果。然後，我們實際上看到華為在拉丁美洲面臨一些壓力，在歐洲也面臨一點壓力——不是在美國，而是在歐洲有一點壓力，在拉丁美洲相當大。我們試圖從根本上確保——在我看來，保住份額比重新獲得份額更容易。因此，我們在他們試圖進入的領域進行了一些投資，這樣他們就不會創造利潤池，然後跳到其他國家。

I think one of the advantages, Shannon, of the separation is -- people used to ask me, who is my list of competitors, and there would be 20 people on that list. This is a much smaller group of competitors, including the public cloud competitors to some degree. And we can be much more laser-like focused, and in the volume of business react very quickly, from a pricing perspective, from a VAR perspective, probably much more quickly than we could have before. And that actually helps us, as we think about pricing in a particular region or a particular product line.

香農，我認為分離的一個好處是——人們過去常常問我，我的競爭對手名單上有誰，而這個名單上有 20 個人。這是一個規模小得多的競爭對手群體，在某種程度上包括公有雲競爭對手。我們可以更集中註意力，對業務量做出快速反應，從定價角度、從加值轉售角度來看，可能比以前快得多。當我們考慮特定地區或特定產品線的定價時，這實際上對我們有幫助。

Thanks. And then, if you could talk a little bit more about China in terms of what you are seeing there? Obviously, it's through the [Tsinghua] joint venture. But I'm curious, are there still are some delayed deals that were waiting for it to close? Now that it has closed, and you've gotten through it? I'm curious as to what you've heard from them? Thank you.

謝謝。然後，您能否就您所看到的情況再多談談中國的情況？顯然，是透過（清華）合資企業。但我很好奇，是否還有一些延遲的交易正在等待它完成？現在它已經關閉了，你熬過來了嗎？我很好奇你從他們那裡聽到了什麼？謝謝。

Well, I'll start off, and let Tim weigh in. So first of all we are thrilled that we have done this deal with Tsinghau University. It is much better to own 49% of a leading player in China, than own 100% of an American-owned subsidiary. And I think you've seen a lot of our competitors try to figure out how they can replicate that deal.

好吧，我先開始，讓提姆發表意見。首先，我們很高興與清華大學達成了這項協議。擁有中國領先企業 49% 的股份比擁有美國子公司 100% 的股份要好得多。我想你已經看到我們的許多競爭對手都在試圖弄清楚如何複製這筆交易。

I also think depending on what happens with the trade relations between the US and China, we're going to be thrilled to death that we are in a partnership with Tsinghua University. They're running the company as a very local Chinese company. We like their CEO. Their networking business is doing really well, and they're integrating now our storage and server business. So we're optimistic. There's sort of early kinks in some ways, they're working out, running this very large company that they've absorbed, and they've got some integration issues. But overall, we're really pleased with the joint venture.

我還認為，根據美國和中國之間的貿易關係的發展，我們將非常高興能夠與清華大學建立合作關係。他們將公司經營得非常本土化，就像一家中國公司一樣。我們喜歡他們的執行長。他們的網路業務做得很好，現在他們正在整合我們的儲存和伺服器業務。所以我們很樂觀。在某些方面存在一些早期的問題，他們正在努力經營這個他們吸收的非常大的公司，並且遇到了一些整合問題。但總體而言，我們對此次合資感到非常滿意。

Yes, and I would just say from a financial perspective, if you look at the Q4 equity interest, it was about $31 million. So if you'll recall, in the third quarter that number was a little bit lower, as we were running through some one-time accounting items. So we're at much more at a normalized run rate now, so we expect that to continue to improve as we get into 2017.

是的，我只想從財務角度說，如果你看看第四季的股權，它大約是 3,100 萬美元。所以如果你還記得的話，在第三季度，這個數字稍微低了一點，因為我們正在處理一些一次性會計項目。因此，我們現在的運行率已經更加正常化，我們預計進入 2017 年後，運行率將繼續改善。

We are still involved in the company. I mean, there's a Board meeting once every quarter in Hong Kong, where we go over the plan, and how we can help them be successful, and learnings from the rest of the globe, and how they make that their own in the local Chinese market. So I think it's working as well as we possibly could have expected. And again, I got to tell you, I think we may be very, very glad that we're in a Chinese joint venture, as the dynamics change across the globe here.

我們仍然參與該公司的業務。我的意思是，每季在香港都會舉行一次董事會會議，我們會在會上討論計劃，以及如何幫助他們取得成功，以及從世界其他地區學到的經驗，以及如何在中國本土市場取得成功。所以我認為它的效果和我們預期的一樣好。我再次告訴你們，隨著全球局勢的變化，我認為我們非常非常高興我們加入了一家中國合資企業。

Great. Thank you, Shannon. I think we have time for one more question, please?

偉大的。謝謝你，香農。我想我們還有時間再問一個問題，可以嗎？

Rod Hall, JPMorgan.

摩根大通的羅德霍爾 (Rod Hall)。

Yes, hi. Thanks for taking my question. I wanted to start off, Meg, to just ask you to characterize the economic environment that you were operating in, in the quarter that you just reported, and in the forward quarter? We saw a lot of weakness from other enterprise exposed companies like Cisco and Intel, and so on. So there were a lot of people calling out enterprise spending weakness. I know you've talked about comps, and some of the other puts and takes around the numbers But I'd just be curious to know what you've been hearing back from your counterparts? And in your discussions with your customers about their spending thinking at this point in the game? And I've got a follow-up.

是的，你好。感謝您回答我的問題。梅格，首先我想請您描述一下您剛剛報告的這個季度以及未來一個季度所處的經濟環境？我們看到思科、英特爾等其他企業也存在著許多弱點。因此，許多人都在呼籲企業支出疲軟。我知道您已經談論過同店商品以及其他一些與數字相關的利弊，但我只是好奇想知道您從您的同行那裡聽到了什麼反饋？當您與客戶討論他們目前階段的消費想法時？我還有後續行動。

Sure. So listen, I would characterize this quarter as uneven global demand. But I have to say, that I've been characterizing the last three or four years as uneven global demand. This feels like the new normal to me. There will be spots that do better, spots that are not as good as next quarter. And my view is our performance is entirely in our own hands. Yes, we're influenced by the global demand. But I wouldn't use that as an excuse for performance, or even a buttress for performance.

當然。所以聽著，我認為本季的全球需求不均衡。但我不得不說，過去三、四年我一直將全球需求描述為不均衡的。對我來說這就像是一種新常態。有些地方會表現得更好，有些地方則不如下個季度那麼好。我的觀點是，我們的表現完全掌握在我們自己手中。是的，我們受到全球需求的影響。但我不會以此作為表演的藉口，甚至不會以此作為表演的支撐。

We need to deliver the innovation, continue to deliver on our go to market, and gain share as we have for virtually every single quarter. And so, I wouldn't take our guidance for next year to be influenced one way or the other about the global demand. This is what we think we can do, given the environment that we've been in for the last four or five years.

我們需要實現創新，繼續實現我們的市場目標，並像我們幾乎每季一樣獲得市場份額。因此，我認為我們對明年的指導不會受到全球需求的任何影響。考慮到過去四、五年來我們所處的環境，我們認為我們可以做到這一點。

Okay. I guess, what I was looking for there is, whether you saw any deterioration in overall demand in the quarter, because obviously, the numbers are a little bit disappointing. And then, the follow-up question that I had for you is, the server unit numbers at least preliminary numbers for Q3 are down, so there's a deterioration in the overall server market. And yet you guys are thinking 1% to 2% growth next year? And I just wonder, how optimistic do you have to be about the overall market next year, considering the demand situation seems to deteriorate here?

好的。我想，我所尋找的是，您是否看到本季整體需求有所惡化，因為顯然，這些數字有點令人失望。然後，我想問您的後續問題是，伺服器單元數量（至少第三季的初步數字）有所下降，因此整體伺服器市場有所惡化。但你們卻認為明年的成長率為 1% 到 2%？我只是想知道，考慮到這裡的需求情況似乎正在惡化，您對明年的整體市場有多樂觀？

Yes. So listen, as I said before, what we're seeing is in the core ISS business, there's some deterioration, what I would characterize as core ISS rack for us. Other parts of the server business are doing really well. And I think that core ISS rack deterioration has a number of different things. One is in part, our execution in the channel and pricing, and things like that. And the second is the move to the public cloud. I mean, we're definitely seeing some impact there, offset by growth in other areas.

是的。所以聽著，正如我之前所說的，我們看到的是核心國際太空站業務出現了一些惡化，我將其描述為我們的核心國際太空站機架。伺服器業務的其他部分錶現非常好。我認為國際太空站核心機架的損壞有很多不同的原因。一方面是我們在通路和定價方面的執行情況，等等。第二是轉向公有雲。我的意思是，我們確實看到了那裡的一些影響，但被其他領域的成長所抵消。

From a 1% to 2% range, my view is, from our perspective, that's a revenue number, and longer term. And remember, our revenues are holding up better than the units, because of our high attach. And then, also the features and functionality that we add on to those servers, whether that's storage or whatever it happens to be.

從 1% 到 2% 的範圍來看，我的觀點是，從我們的角度來看，這是一個收入數字，而且是長期的。請記住，由於我們的附加價值較高，我們的收入比單位收入更好。然後，我們也為這些伺服器添加了特性和功能，無論是儲存還是其他什麼。

So again, we look at when -- we look at unit share, we look at revenue share, and we also look at share of profits. And we are gaining share profits in this business, which is actually really important. So that's kind of the way we think about it. So I think actually 1% to 2% feels pretty reasonable to me. We've got some work to shore up that ISS rack, but I think well offset by some of the other things that are really going well, from an innovation perspective.

因此，我們再次查看時間——我們查看單位份額，我們查看收入份額，我們也查看利潤份額。我們正在從這項業務中獲取利潤，這實際上非常重要。這就是我們思考這個問題的方式。所以我認為實際上 1% 到 2% 對我來說是相當合理的。我們需要做一些工作來鞏固國際太空站機架，但我認為從創新的角度來看，其他一些進展順利的事情可以抵消這些影響。

Great. Thank you.

偉大的。謝謝。

Thank you, Rod, and thank you everyone for joining us today.

謝謝你，羅德，也謝謝大家今天的到來。

Ladies and gentlemen, this concludes our call for today. Thank you.

女士們、先生們，我們今天的通話到此結束。謝謝。