惠普企業 (HPE) 2017 Q1 法說會逐字稿

Good afternoon, and welcome to the first-quarter 2017 Hewlett Packard Enterprise earnings conference call. My name is Denise, and I will be your conference moderator for today's call.

下午好，歡迎參加 2017 年第一季惠普企業財報電話會議。我叫丹尼斯，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. I would now like to turn the presentation over to your host for today's call, Andrew Simanek, Head of Investor Relations. Please proceed.

提醒一下，本次會議將會被錄音以供重播。現在，我想將演示交給今天電話會議的主持人、投資者關係主管 Andrew Simanek。請繼續。

Good afternoon. I'm Andrew Simanek, Head of Investor Relations for Hewlett Packard Enterprise, and I'd like to welcome you to our FY17 first quarter earnings conference call, with Meg Whitman, HPE's President and Chief Executive Officer, and Timothy 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 Andrew Simanek，歡迎您參加我們的 2017 財年第一季財報電話會議，與會人員有 HPE 總裁兼執行長 Meg Whitman 和 HPE 執行副總裁兼財務長 Timothy Stonesifer。

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 release and the slide presentation accompanying today's earnings release on our HPE Investor Relations web page at investors. HPE.com. 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.

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。網路廣播的重播將在會議結束後不久提供，為期約一年。我們在 HPE 投資者關係網頁上向投資者發布了今天收益報告的新聞稿和幻燈片簡報。HPE.com。與往常一樣，本次演示的內容具有前瞻性，基於我們對當今世界以及我們業務的最佳看法。

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. HPE assumes no obligation, and does not intend to update any such forward-looking statements. We also note hat 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 quarterly report on Form 10-Q for the fiscal quarter, ended January 31, 2017.

欲了解更詳細的信息，請參閱收益資料中有關前瞻性陳述的免責聲明，其中涉及風險、不確定性和假設。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。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 2017 年 1 月 31 日結束的財政季度的 10-Q 表季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 unless noted otherwise, are presented on a year-over-year basis and beginning with FY16 are adjusted to exclude the impact of divestitures and currency. 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, among several others.

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，除非另有說明，所有收入成長率均以同比計算，並從 2016 財年開始進行調整，以排除資產剝離和貨幣的影響。我們相信這種方法有助於更好地反映 HPE 的營運績效，因為我們最近完成了多項重大資產剝離，包括出售 Mphasis、中國 H3C 業務的 51% 和 TippingPoint 等。

Please refer to the tables and slide presentation accompanying today's earnings release on the website for details. With that, let me turn it over to Meg.

有關詳細信息，請參閱網站上今天收益報告隨附的表格和幻燈片演示。說完這些，讓我把它交給梅格。

Good afternoon, everyone. Thank you for joining us on the call today. Let's dive right in.

大家下午好。感謝您今天參加我們的電話會議。讓我們開始吧。

Overall, as I look back on Q1, I'd say our performance was mixed. I was very pleased with our non-GAAP net diluted EPS of $0.45, at the high end of our previously-guided range. We delivered normalized free cash flow of $200 million a $500 million improvement year over year, and we saw strong performance across key growth areas of the portfolio.

總體而言，回顧第一季度，我認為我們的表現好壞參半。我對我們的非公認會計準則淨稀釋每股收益 0.45 美元感到非常滿意，這處於我們之前指導範圍的高端。我們實現了 2 億美元的正常自由現金流，比去年同期增加了 5 億美元，並且我們在投資組合的關鍵成長領域都表現強勁。

However, we also encountered some unexpected headwinds during the quarter. We saw several external factors impacting our performance that will become more challenging through the remainder of FY17, and we came up against some execution-related problems that we are now fixing. Let me talk a little bit more about the challenges we saw in the quarter, and how we think about them.

然而，本季我們也遇到了一些意想不到的阻力。我們發現有幾個外部因素影響著我們的業績，這些因素在 2017 財年剩餘時間內將變得更具挑戰性，我們也遇到了一些與執行相關的問題，目前正在解決這些問題。讓我再多談談我們在本季遇到的挑戰以及我們對此的看法。

First, we faced a significant challenge on both the top and bottom lines from foreign exchange rates, particularly the strengthening of the dollar versus the Euro and the Yen. We were able to largely address the impact on our profitability in Q1 with our hedging strategy, however we expect the continued strength of the dollar, as these hedges roll off, to present a significant headwind for the remainder of the year.

首先，我們的營收和利潤都面臨著來自外匯匯率的巨大挑戰，尤其是美元兌歐元和日圓的走強。我們能夠透過對沖策略在很大程度上解決第一季對我們獲利能力的影響，然而，隨著這些對沖的減少，我們預計美元的持續走強將對今年剩餘時間帶來重大阻力。

Second, we saw an impact from a challenging industry-wide commodities market, particularly tight NAND supply, which impacted sales in our storage and compute businesses and elevated DRAM pricing. We were able to mitigate a portion of the impact in Q1 through procurement strategies, however we expect that the increase in DRAM pricing will accelerate, and create near-term challenges to our profitability.

其次，我們看到了整個行業大宗商品市場充滿挑戰的影響，尤其是 NAND 供應緊張，這影響了我們的儲存和運算業務的銷售並推高了 DRAM 價格。我們能夠透過採購策略減輕第一季的部分影響，但我們預計 DRAM 價格的上漲將會加速，並對我們的獲利能力造成短期挑戰。

Third, revenue was impacted by a tough market environment, particularly in core servers and storage. We saw significantly lower demand from one customer, a major Tier 1 Service Provider facing a very competitive environment.

第三，收入受到嚴峻的市場環境的影響，尤其是在核心伺服器和儲存領域。我們發現一位客戶的需求明顯下降，這家主要的一級服務供應商面臨著非常激烈的競爭環境。

Finally, we experienced some execution issues in the Enterprise Group business, so let me say a little bit more about that. As you know, during past few months, we've been preparing HPE to compete aggressively following the spin mergers of ES and software. To that end, we've been making significant changes to our organization, all during the final intense months before the ES separation, and as the software separation got underway. In just the last quarter, we've reshaped the entire Enterprise Group business to better drive the three pillars of our strategy: hybrid IT, the Intelligent Edge, and services.

最後，我們在企業集團業務中遇到了一些執行問題，所以我再多說。如您所知，在過去的幾個月裡，我們一直在為 HPE 做好準備，以便在 ES 和軟體分拆合併後積極參與競爭。為此，我們在 ES 分離前的最後幾個月以及軟體分離開始之際對我們的組織進行了重大變革。僅在上個季度，我們就重塑了整個企業集團業務，以更好地推動我們策略的三大支柱：混合 IT、智慧邊緣和服務。

We appointed a new Global Head of Sales and new sales leads in each of our geographical regions. We hired a new leader for the Technology Services business, and we hired a new leader for our channel program. These are just some of the more significant changes we've made to set the Company up for long-term success.

我們在各個地理區域任命了新的全球銷售主管和新的銷售主管。我們為技術服務業務聘請了一位新領導，為我們的通路計畫聘請了一位新領導者。這些只是我們為公司長期成功所做的一些更重要的改變。

While these changes were the right changes to make, it was a lot for the organization to take in. Frankly, as we headed into Q1, we overloaded many of our top people and disrupted the day-to-day cadence of our business more than we should have. The good news is that we've identified the problem, and are fixing it. More importantly, once the dust settles, the changes we've made will leave HP in a much better position to compete and win.

雖然這些改變是正確的，但對於組織來說，這需要承受很大的壓力。坦白說，進入第一季度，我們為許多高層人員安排了過多的工作，並嚴重擾亂了我們日常的業務節奏。好消息是我們已經發現了問題並正在解決它。更重要的是，一旦塵埃落定，我們所做的改變將使惠普處於更有利的競爭和勝利地位。

Now, while we face a number of headwinds in the quarter, we also continued to see positive momentum across a number of fronts. In the Enterprise Group, I was very pleased with our focus on the critical higher-margin higher market growth areas of the portfolio, that will be the foundation of our future success. We delivered strong results in Technology Services support and consulting, Aruba, high performance compute, and all-flash storage, and this focus drove improved year-over-year operating margins in EG, when adjusted for currency and divestitures.

現在，雖然我們在本季面臨許多阻力，但我們也繼續看到多個方面的積極勢頭。在企業集團，我很高興我們專注於投資組合中關鍵的高利潤、高市場成長領域，這將是我們未來成功的基礎。我們在技術服務支援和諮詢、Aruba、高效能運算和全快閃儲存方面取得了強勁的業績，這一重點推動了 EG 在調整貨幣和資產剝離後同比營業利潤率的提高。

We also made strong progress in Enterprise Services, where we continued to shift headcount to lower cost locations, and the operating margin came in at a solid 7%, within our long term target range. And software continued to stabilize revenue and improved operating margins by 400 basis points.

我們在企業服務領域也取得了長足的進步，我們繼續將員工轉移到成本較低的地區，營業利潤率穩定在 7%，處於我們的長期目標範圍內。軟體業務持續穩定收入，並將營業利潤率提高 400 個基點。

At the same time, throughout Q1, we continued to execute strategic acquisitions, invest in innovation, and develop important partnerships. All of these actions were directly aligned to the three pillars of our strategy: hybrid IT, the Intelligent Edge and services.

同時，在整個第一季度，我們繼續執行策略性收購、投資創新並發展重要的合作夥伴關係。所有這些行動都與我們的策略三大支柱直接相關：混合 IT、智慧邊緣和服務。

In our mission to make hybrid IT simple for our customers, we completed the acquisition of SimpliVity, a leading provider of software-defined hyperconverged infrastructure. The hyperconverged market is approximately $2.4 billion and is growing around 25% annually, so we see this as a significant opportunity. By bringing together HPE's simple user interface developed for our HC 380 solution, with SimpliVity's enterprise-class data fabric, HPE will deliver the industry's best and most comprehensive hyperconverged offering on the market.

我們的使命是讓客戶的混合 IT 變得簡單，為此，我們完成了對軟體定義超融合基礎架構領先供應商 SimpliVity 的收購。超融合市場規模約為 24 億美元，並且每年以 25% 左右的速度成長，因此我們認為這是一個重大機會。透過將 HPE 為我們的 HC 380 解決方案開發的簡單使用者介面與 SimpliVity 的企業級資料結構相結合，HPE 將在市場上提供業界最好、最全面的超融合產品。

This world class technology, combined with HPE's unmatched global go to market is a game-changer in the hyperconverged space. We just closed the deal on Friday, and I'm pleased that we received our first order on the same day. Customers could clearly see the promise.

這項世界一流的技術，加上 HPE 無與倫比的全球市場影響力，將改變超融合領域的遊戲規則。我們週五剛完成交易，我很高興我們在同一天收到了第一筆訂單。顧客可以清楚地看到這項承諾。

In high performance compute, we accelerated our momentum since closing the SGI deal late last year. Overall, the high performance compute segment is an $11 billion market, and is expected to grow around 6% to 8% annually off the next three years. And with the explosion of data across industries and sectors, the data analytics segment is growing at over twice that rate.

在高效能運算領域，我們自去年年底完成 SGI 交易以來加快了發展勢頭。總體而言，高效能運算領域是一個價值 110 億美元的市場，預計未來三年每年將成長約 6% 至 8%。隨著各行各業和各領域數據的爆炸性成長，數據分析領域的成長速度也達到了這一水準的兩倍以上。

Over the past several weeks, I've been meeting with customers, and it's been coming increasingly clear that SGI and our existing high performance computing business make a very powerful combination. Just this quarter we announced a number of new offerings for sectors, including life sciences and financial services as well as significant new super computer installations that are driving advances in space exploration, biology, and artificial intelligence. We will continue to lean into this space as HPC becomes an increasingly essential component in today's data-driven world.

過去幾週，我一直在與客戶會面，越來越明顯的是，SGI 和我們現有的高效能運算業務形成了一個非常強大的組合。就在本季度，我們宣布了一系列針對生命科學和金融服務等行業的新產品，以及推動太空探索、生物學和人工智慧進步的重要新型超級電腦裝置。隨著 HPC 成為當今數據驅動世界中越來越重要的組成部分，我們將繼續傾向於這一領域。

And earlier this month, we introduced one of our most significant 3PAR flash storage innovations to date, the next gen 3PAR operating system, which provides a foundation for hybrid IT, as all-flash becomes the new norm. In December, we announced HPE's synergy with HPE Helion Cloud System 10, the industry's first private cloud running on composable infrastructure.

本月初，我們推出了迄今為止最重要的 3PAR 快閃記憶體儲存創新之一，即下一代 3PAR 作業系統，它為混合 IT 奠定了基礎，因為全快閃記憶體將成為新的常態。12 月，我們宣布 HPE 與 HPE Helion Cloud System 10 實現協同效應，這是業界首個在可組合基礎架構上運作的私有雲。

This new solution gives organizations the ability to operate a single IT environment on-prem that supports both traditional applications and private clouds on shared infrastructure. It gives customers the security and control of an on-prem solution at public cloud economics. That is a game-changing combination.

這項新解決方案使組織能夠在本地運營單一 IT 環境，該環境支援共享基礎架構上的傳統應用程式和私有雲。它為客戶提供公共雲經濟的內部部署解決方案的安全性和控制。這是一個改變遊戲規則的組合。

Finally, we continued to deepen relationships with existing partners like Arista, and introduced new ones as well. For example, in Q1, we announced a new reseller agreement with Mesosphere.

最後，我們繼續深化與 Arista 等現有合作夥伴的關係，並引進新的合作夥伴。例如，在第一季度，我們宣布與 Mesosphere 達成新的經銷商協議。

HPE will build and deliver infrastructure solutions specifically designed for the data center operating system. For HPE, the agreement with Mesosphere shows how committed we are to helping enterprise customers fully embrace the benefits they want from hybrid IT, including optimized performance and faster service time to market.

HPE 將建置並提供專為資料中心作業系統設計的基礎架構解決方案。對於 HPE 而言，與 Mesosphere 達成的協議表明了我們致力於幫助企業客戶充分享受混合 IT 的好處，包括優化的效能和更快的服務上市時間。

Turning to the next pillar of our strategy, we believe the Intelligent Edge and the industrial Internet of Things represents a significant opportunity for our business going forward. We are very well positioned with Aruba today, and continue to make adjustments to strengthen our portfolio for the future. In late November, Aruba announced several new security solutions, ecosystem partnerships, and switching products designed to accelerate the move to the digital workspace, while addressing the security concerns associated with the adoption of IoT.

談到我們策略的下一個支柱，我們相信智慧邊緣和工業物聯網為我們未來的業務發展帶來了重大機會。目前，Aruba 為我們提供了非常有利的地位，並將繼續進行調整以加強我們未來的投資組合。11 月下旬，Aruba 宣布推出幾款新的安全解決方案、生態系統合作夥伴關係和轉換產品，旨在加速數位化工作空間的轉變，同時解決與採用物聯網相關的安全問題。

For example, the new Aruba ClearPass universal profiler gives IT organizations unparalleled multi-device management and security options across multi-vendored wired and wireless networks. And Aruba's latest switches and switch operating system are specifically designed to power and secure the Intelligent Edge, optimized for mobile and IoT devices. And in Q1, we acquired Niara to help our customers detect and protect themselves against advanced cyber attacks that have penetrated their network perimeter defenses.

例如，新的 Aruba ClearPass 通用分析器為 IT 組織提供了跨多供應商有線和無線網路的無與倫比的多裝置管理和安全選項。Aruba 最新的交換器和交換器作業系統專為支援和保護智慧邊緣而設計，並針對行動和物聯網設備進行了最佳化。在第一季度，我們收購了 Niara，以幫助我們的客戶偵測並保護自己免受已經突破其網路外圍防禦的高級網路攻擊。

Niara is a leader in a new category of products that employ machine learning and big data analytics on enterprise packet and log streams, to discover advanced attacks. By integrating Niara's behavioral analytics technology with Aruba's ClearPass policy manager, we can now offer our customers the industry's most advanced threat detection and prevention solutions for network and IoT devices.

Niara 是新產品類別的領導者，該產品採用機器學習和大數據分析企業資料包和日誌流來發現進階攻擊。透過將 Niara 的行為分析技術與 Aruba 的 ClearPass 策略管理器結合，我們現在可以為客戶提供業界最先進的網路和物聯網設備威脅偵測和預防解決方案。

Finally, today more than ever, our customers are looking for a trusted advisor to help them define and implement an IT road map specific to their business needs. Services is at the core of our ability to be that strategic partner to our clients, and its role in our business is crucial. In Q1, we announced the acquisition of Cloud Cruiser, a leading provider of cloud consumption analytic software that provides clear insight into IT usage and spend, and helps customers more effectively plan and manage their IT systems.

最後，今天我們的客戶比以往任何時候都更需要一位值得信賴的顧問來幫助他們定義和實施針對其業務需求的 IT 路線圖。服務是我們成為客戶策略夥伴的核心，它在我們的業務中發揮著至關重要的作用。在第一季度，我們宣布收購 Cloud Cruiser，這是一家領先的雲端消費分析軟體供應商，可以清楚洞察 IT 使用情況和支出，並幫助客戶更有效地規劃和管理他們的 IT 系統。

This acquisition will further differentiate our flexible capacity offering, which as you know, is a unique consumption model that enables our customers to manage IT infrastructure in their own data center, but pay for it as a service. This approach reduces the risk of organizations investing too much or too little in IT, eliminates unused capacity, and frees up valuable IT resources for new, value-adding projects.

此次收購將進一步區分我們的靈活容量產品，正如您所知，這是一種獨特的消費模式，使我們的客戶能夠在自己的資料中心管理 IT 基礎設施，但以服務形式付費。這種方法可以降低組織在 IT 上投資過多或過少的風險，消除未使用的容量，並釋放寶貴的 IT 資源用於新的增值專案。

In the coming months, we will be speaking more to our customers about our services strategy. Leading that charge will be Ana Pinczuk, who joined HPE just last week from Veritas, where she most recently held the role of Executive Vice President and Chief Product Officer, and for many years at Cisco prior to that. As a seasoned leader with 30-plus years of experience, Ana brings a wealth of services expertise, combined with a versatile background in engineering, sales, and IT.

在接下來的幾個月裡，我們將更多地向客戶介紹我們的服務策略。領導這項工作的是 Ana Pinczuk，她上週剛從 Veritas 加入 HPE，此前她在 Veritas 擔任執行副總裁兼首席產品官，而在此之前，她在思科工作多年。作為一位擁有 30 多年經驗的資深領導者，Ana 擁有豐富的服務專業知識，以及工程、銷售和 IT 領域的多才多藝的背景。

The best way to judge our strategy is through our customers, and our customer wins in Q1 gave us great confidence that we're on the right path. In January, the Tokyo Institute of Technology awarded HPE with a significant supercomputer win to address increasing demands for big data and artificial intelligence capabilities in research communities.

判斷我們策略的最佳方式是透過我們的客戶，而我們在第一季贏得的客戶讓我們非常有信心，我們走在正確的道路上。今年 1 月，東京工業大學授予 HPE 一項重要的超級電腦合同，以滿足研究界對大數據和人工智慧能力日益增長的需求。

Suncor Energy has signed a five-year flexible capacity service agreement. Flexible capacity provides Suncor with benefits of a cloud-like consumption model, and the performance and security afforded by having these resources on-prem.

森科能源簽署了一份為期五年的彈性容量服務協議。靈活的容量為 Suncor 提供了類似雲端的消費模式的優勢，以及將這些資源部署在本地所提供的效能和安全性。

We are working with Giant Tiger, Canada's leading discount retailer, who is implementing HPE Synergy to help consolidate and power their next generation 600,000 square foot state-of-the-art distribution center. Distribution and warehousing are core functions of the Giant Tiger business model, and HPE Synergy will transform distribution operations, with HPE Aruba Wireless and 3PAR storage technology to run warehouse robotics.

我們正在與加拿大領先的折扣零售商 Giant Tiger 合作，他們正在實施 HPE Synergy 來協助整合和支援其下一代 600,000 平方英尺的最先進的配送中心。配送和倉儲是 Giant Tiger 商業模式的核心功能，HPE Synergy 將改變配送業務，利用 HPE Aruba Wireless 和 3PAR 儲存技術來運作倉庫機器人。

And next week at Mobile World Congress, we plan to announce a major smart cities project in India, involving the world's largest, long range, low power wireless IoT platform deployment. Overall, I would like to have seen better top line results in the quarter, and we could have done without the market and execution headwinds I described earlier, but I remain very confident in our strategy. Nothing has changed my fundamental belief that HPE is on the right track.

在下週的世界行動通訊大會上，我們計劃宣佈在印度開展一項重大智慧城市項目，其中涉及全球最大的遠端低功耗無線物聯網平台部署。總的來說，我希望看到本季有更好的營收業績，我們本可以不受我之前描述的市場和執行阻力的影響，但我仍然對我們的策略非常有信心。沒有什麼能改變我的基本信念：HPE 正走在正確的道路上。

In fact, I believe we're ahead of many of our competitors in reorganizing, to deal with the market challenges we all face. The steps we are taking to strengthen our portfolio, streamline our organization, and build the right leadership team are setting us up to win long into the future. With that, let me turn it over to Tim.

事實上，我相信我們在重組方面領先於許多競爭對手，以應對我們面臨的市場挑戰。我們正在採取的措施包括加強我們的投資組合、精簡我們的組織、建立合適的領導團隊，這些措施將為我們在未來的長遠勝利奠定基礎。說完這些，讓我把麥克風交給提姆。

Thanks, Meg. As you said earlier, our overall performance in the quarter was somewhat mixed. We did drive solid growth in our higher margin businesses, and continued to align our cost structure, which enabled us to deliver better operating profit versus the prior year. However, we also faced increasing pressures from currency, commodities pricing, and soft markets in addition to the execution issues Meg discussed. In total, revenue of $11.4 billion was down 4% when adjusted for currency and divestitures.

謝謝，梅格。正如您之前所說，我們本季的整體表現好壞參半。我們確實推動了高利潤業務的穩健成長，並繼續調整成本結構，這使我們能夠實現比上一年更好的營業利潤。然而，除了梅格討論的執行問題之外，我們還面臨著來自貨幣、商品定價和疲軟市場越來越大的壓力。總體而言，經匯率和資產剝離調整後，營收為 114 億美元，下降了 4%。

From a macro perspective, we continue to see an uneven global demand environment. Performance in the US was impacted by a tough market, particularly in servers and storage. Revenue in Europe continues to be weak, driven by the UK public sector. APJ was mixed, with good performance in Japan more than offset by broad softness in the rest of Asia.

從宏觀角度來看，我們仍然看到全球需求環境不平衡。美國市場的業績受到了嚴峻形勢的影響，尤其是伺服器和儲存市場。受英國公共部門的影響，歐洲的收入持續疲軟。亞太及日本地區表現不一，日本的良好表現被亞洲其他地區的普遍疲軟所抵銷。

Currency movements were unfavorable throughout the quarter, which resulted in a year-over-year impact to revenue of 140 basis points. Gross margin of 28.9% was up 50 basis points year over year, but down 150 basis points sequentially. The year-over-year improvement was primarily due to continued progress in the offshore labor mix of Enterprise Services. The sequential margin drop was driven by normal Q1 seasonality in ES and software.

整個季度的貨幣走勢不利，導致營收年減 140 個基點。毛利率為 28.9%，較去年成長 50 個基點，但較上季下降 150 個基點。年成長主要得益於企業服務離岸勞動力組合的持續進步。利潤率環比下降是由於 ES 和軟體第一季的正常季節性所致。

Non-GAAP operating profit of 9.2% was up 110 basis points year over year, but down 190 basis points sequentially. Non-GAAP diluted net earnings per share of $0.45 was at the high end of our outlook of $0.42 to $0.46.

非公認會計準則營業利潤為 9.2%，較去年同期成長 110 個基點，但較上季下降 190 個基點。非公認會計準則每股攤薄淨收益為 0.45 美元，處於我們預期的 0.42 美元至 0.46 美元的高點。

Non-GAAP diluted net EPS primarily excludes pre-tax amounts for separation charges of $276 million, restructuring charges of $177 million, and amortization of intangible assets of $101 million. We delivered GAAP diluted net earnings per share of $0.16, above our previously-provided outlook of $0.03 to $0.07, primarily due to lower than expected separation and restructuring charges.

非公認會計準則稀釋每股淨額主要不包括 2.76 億美元的分離費用、1.77 億美元的重組費用和 1.01 億美元的無形資產攤銷的稅前金額。我們實現的 GAAP 稀釋每股淨收益為 0.16 美元，高於我們先前提供的 0.03 美元至 0.07 美元的預期，主要原因是分離和重組費用低於預期。

Now turning to the results by business. In the Enterprise Group, revenue was down 6%, as we continue to focus on profitability and align the organization for its future state. Operating margins were down 70 basis points year over year and 60 basis points sequentially, to 12.7%. However operating margins were up year over year, adjusted for currency and the H3c divestiture.

現在來談談業務結果。企業集團的收入下降了 6%，因為我們繼續專注於獲利能力並調整組織以適應未來狀態。營業利益率年減 70 個基點，季減 60 個基點，至 12.7%。不過，經匯率和 H3c 資產剝離調整後，營業利潤率較去年同期成長。

We had several areas of encouraging growth across the portfolio, including Aruba, up 20%; 3PAR all-flash arrays, up 29%; high performance compute up more than 30%, including the acquisition of SGI, and almost 10% organically; and 4% growth in our highest operating margin business, Technology Services. Server revenue declined 11%, due to a softer than expected core server market, combined with some execution challenges. And as Meg said, we saw lower demand from our largest Tier 1 customer.

我們的投資組合中有幾個領域實現了令人鼓舞的成長，其中阿魯巴成長了 20%；3PAR全快閃陣列，成長29%；高效能運算成長超過 30%，其中包括收購 SGI，並且有機成長近 10%；我們營業利潤率最高的業務——技術服務成長了 4%。由於核心伺服器市場疲軟，加上一些執行挑戰，伺服器收入下降了 11%。正如梅格所說，我們發現我們最大的一級客戶的需求有所下降。

We already have several actions in place to help shore up our core business. First, we're making improvements in the channel with some process reengineering, and focusing more on SMBs through distributors and value-added resellers. Second, we're continuing to make investments in products like Synergy that will revitalize our competitiveness in blades.

我們已經採取了多項措施來鞏固我們的核心業務。首先，我們正在透過一些流程再造來改善通路，並透過經銷商和加值經銷商更加關注中小型企業。其次，我們將繼續對 Synergy 等產品進行投資，以重振我們在刀片領域的競爭力。

In addition to organic investments we've also augmented our portfolio with the recent acquisitions of SGI and SimpliVity, which will strengthen our position in two high growth markets. Lastly, we continue to focus on cost takeout, by flattening the organization, better aligning R&D to the market opportunities, and improving the go-to-market model. Storage revenue declined 12% in a market that remains challenged, and we face sales execution issues similar to our core server business.

除了有機投資之外，我們還透過最近收購 SGI 和 SimpliVity 擴大了我們的投資組合，這將加強我們在兩個高成長市場中的地位。最後，我們繼續專注於降低成本，透過扁平化組織、更好地將研發與市場機會結合以及改善市場進入模式。在依然充滿挑戰的市場中，儲存收入下降了 12%，我們面臨著與核心伺服器業務類似的銷售執行問題。

Results were also meaningfully impacted by NAND supply constraints that we're expecting to lessen as the year progresses. We also recently announced a simplified pricing model and bundled compression offerings with 3PAR that should help to improve win rates and stabilize revenue going forward. Networking and revenue grew 6%, driven by Aruba Hardware that continues to take share, and was especially strong in EMEA, with several large new logo wins.

NAND 供應限制也對業績產生了顯著影響，我們預期這種影響會隨著時間的推移而減輕。我們最近還宣布了簡化的定價模式以及與 3PAR 捆綁的壓縮產品，這將有助於提高中標率並穩定未來的收入。網路和收入成長了 6%，這得益於 Aruba Hardware 繼續佔據市場份額，並在 EMEA 地區表現尤為強勁，並贏得了多個重要的新標誌。

We also saw growth in campus and branch switching, but data center networking revenue continues to be pressured. We're in the process of transitioning from our legacy portfolio to the new Arista partnership that is starting to ramp.

我們也看到校園和分支機構交換的成長，但資料中心網路收入繼續面臨壓力。我們正處於從傳統產品組合過渡到新 Arista 合作夥伴關係的過程中，該合作夥伴關係正在開始加速發展。

Technology Services continues to be a bright spot, with revenue up 4%. Orders also grew year over year for the third consecutive quarter, giving us strong confidence that TS will grow throughout FY17. We saw encouraging performance in non attach and proactive services, as well as Aruba services, which was up more than 10%.

技術服務持續成為亮點，營收成長 4%。訂單量也連續第三個季度同比增長，這讓我們對 TS 在整個 2017 財年都將實現成長充滿信心。我們看到非連線和主動服務以及 Aruba 服務表現令人鼓舞，增幅超過 10%。

We also continue to improve service intensity or attach dollars per unit, which helps to offset pressure from challenged hardware performance. We're very pleased to see TS grow, given its relatively high degree of profitability and recurring revenue stream.

我們也將繼續提高服務強度或增加每單位的附加價值，這有助於抵消硬體效能挑戰帶來的壓力。我們很高興看到 TS 的成長，因為它具有相對較高的獲利能力和經常性收入流。

Enterprise Services' revenue declined 6%, with continued challenges in the UK public sector and normal account run-off. Operating profit improved 220 basis points year over year to 7%, as the team continues to execute on productivity improvements in delivery and sales. We continue to track against our longer term goal of 60% headcount in low cost locations, and completed the quarter with 52% of our headcount in low cost centers, a year-over-year improvement of 7 points.

由於英國公共部門持續面臨挑戰以及正常帳戶流失，企業服務部門的收入下降了 6%。由於團隊持續致力於提高交付和銷售方面的生產力，營業利潤年增 220 個基點至 7%。我們繼續朝著 60% 的員工在低成本地區的長期目標邁進，本季結束時，52% 的員工在低成本中心工作，比去年同期提高了 7 個百分點。

Software revenue was down 1%, as strength in security was offset by declines in IT Management and big data. SaaS had another good quarter with 6% revenue growth driven by solid performance in Fortify on Demand and Digital Safe. The team continues to focus on disciplined cost controls, leading to a 400 basis point improvement in operating margins to 21.4%.

軟體收入下降了 1%，因為安全方面的優勢被 IT 管理和大數據的下滑所抵消。SaaS 又一個季度表現良好，營收成長 6%，這得益於 Fortify on Demand 和 Digital Safe 的穩健表現。團隊繼續專注於嚴格的成本控制，使營業利潤率提高了 400 個基點，達到 21.4%。

HPE Financial Services revenue grew 7%, its third consecutive quarter of year-over-year growth, driven by strong volume from last year, and an increase in operating lease mix. Operating profit declined 340 basis points year over year to 9.5%, primarily due to a bad debt reserve release in the prior year.

HPE 金融服務收入成長 7%，這是其連續第三個季度實現同比增長，這得益於去年強勁的銷量以及經營租賃組合的增長。營業利潤年減 340 個基點至 9.5%，主要原因是前一年釋放了壞帳準備金。

Financing volume declined 9% in constant currency on a tough compare from a one-time item associated with the split from HPI. Return on equity was down 490 basis points year-over-year to 13.1%.

與 HPI 拆分產生的一次性項目相比，融資額以固定匯率計算下降了 9%。股本回報率較去年同期下降490個基點至13.1%。

Free cash flow which is seasonally weakest in the first quarter, was negative $2.3 billion. However when adjusted for the $1.9 billion of ES pension funding, roughly $300 million of restructuring, and $300 million of separation payments, normalized free cash flow was approximately positive $200 million. This improvement of approximately $500 million from the prior year is due primarily to less drag from working capital, as we continue to see the benefit from structural changes we implemented in cash flow management.

第一季的自由現金流為負 23 億美元，是季節性最弱的季度。然而，當調整了 19 億美元的 ES 退休金資金、約 3 億美元的重組資金和 3 億美元的離職補償金後，正常化的自由現金流約為正 2 億美元。與前一年相比，這一增長約 5 億美元，主要原因是營運資金的拖累減少，因為我們繼續看到在現金流管理中實施的結構性變化帶來的好處。

Within the quarter, we also benefited from movements in other assets and liabilities, which is expected to reverse in the second quarter. The cash conversion cycle was 12 days, up six days sequentially, in line with normal seasonality.

本季度，我們也受惠於其他資產和負債的變動，預計第二季將出現逆轉。現金轉換週期為 12 天，比上一季增加 6 天，符合正常的季節性。

Turning to capital allocation. During the quarter, we paid $109 million in dividend payments, which includes an 18% increase to $0.065 per share, and repurchased $641 million of outstanding shares aligned to our commitments at our Securities Analyst Day.

轉向資本配置。在本季度，我們支付了 1.09 億美元的股息，其中每股股息增加 18% 至 0.065 美元，並回購了 6.41 億美元的流通股，與我們在證券分析師日的承諾一致。

Now moving to our two spin-merge transactions. Both the ES-CSC and Software Micro Focus transactions are on schedule and on budget. We filed an updated Form 10 and S-4 for the ES-CSC transaction and anticipate filing final versions shortly, with the expected close still on or around April 1.

現在轉到我們的兩個旋轉合併交易。ES-CSC 和 Software Micro Focus 交易均按計劃和預算進行。我們為 ES-CSC 交易提交了更新的 10 號表格和 S-4 表格，預計很快就會提交最終版本，預計交易仍將在 4 月 1 日左右完成。

The Software Micro Focus transaction is also progressing as planned, and we continue to anticipate the transaction closing on September 1. We've also made good progress removing stranded costs, and continue to anticipate a $0.06 diluted EPS impact in FY17, with all costs eliminated on a run rate basis by the end of the year.

Software Micro Focus 交易也正在按計劃進行，我們預計交易將於 9 月 1 日完成。我們在消除擱淺成本方面也取得了良好進展，預計 2017 財年的稀釋每股收益將達到 0.06 美元，所有成本都將在年底前按運行率消除。

Now turning to our outlook. When we look back to the original outlook provided at our Securities Analyst meeting in October of 2016, there have been three significant developing headwinds: currency, commodity pricing, and some execution issues.

現在轉向我們的展望。當我們回顧 2016 年 10 月證券分析師會議上提出的最初展望時，我們發現有三個重大的發展阻力：貨幣、商品定價和一些執行問題。

In regards to currency, the Euro is currently hovering at $1.06 versus $1.10 when we originally guided FY17, and we now expect FX to be roughly a 2 point impact to revenue year over year. And as Meg discussed, while profitability was hedged through the first quarter, we will face a headwind for the remainder of the year. We're managing the challenge as much as possible through pricing actions, but it often takes many quarters to recoup the full impact.

就貨幣而言，歐元目前徘徊在 1.06 美元左右，而我們最初預測 2017 財年歐元兌美元匯率為 1.10 美元，我們現在預計外匯對收入的影響將同比約為 2 個百分點。正如梅格所討論的，雖然第一季的獲利能力得到了保障，但今年剩餘時間我們將面臨阻力。我們盡可能地透過定價措施來應對挑戰，但通常需要很多季度才能收回全部影響。

From a memory standpoint, prices increased roughly 50% last month, putting significant margin pressure on the Enterprise Group. We can mitigate some of this movement through pricing actions, but similar to currency, the extent of the mitigation is dependent on many factors including competition and demand, so it will take some time for us to work through the challenge. Lastly, the EG execution issues will have some nearer-term impact, but should alleviate throughout the year, as we move quickly to resolution.

從記憶體的角度來看，上個月價格上漲了約 50%，給企業集團帶來了巨大的利潤壓力。我們可以透過定價行動來緩解部分波動，但與貨幣類似，緩解的程度取決於競爭和需求等多種因素，因此我們需要一些時間來應對這項挑戰。最後，EG 執行問題將在短期內產生一些影響，但隨著我們迅速採取行動解決問題，這種影響將在全年得到緩解。

Consequently, we feel it's prudent to reduce our FY17 non GAAP EPS outlook by $0.12, in order to continue making the appropriate investments to secure the long term success of the business. I view these headwinds as more temporary in nature, and expect to recapture much of their impact through pricing actions. With that, we expect Q2 2017 non GAAP diluted net earnings per share of $0.41 to $0.45, and we expect FY17 non-GAAP diluted net earnings per share to now be $1.88 to $1.98, from the prior outlook of $2 to $2.10.

因此，我們認為將 2017 財年非 GAAP 每股盈餘預期下調 0.12 美元是明智之舉，以便繼續進行適當的投資，確保業務的長期成功。我認為這些不利因素本質上是暫時的，並希望透過定價行動重新獲得其大部分影響。因此，我們預計 2017 年第二季非 GAAP 稀釋每股淨收益為 0.41 美元至 0.45 美元，我們預計 2017 財年非 GAAP 稀釋每股淨收益為 1.88 美元至 1.98 美元，而先前預期為 2 美元至 2.10 美元。

From a GAAP perspective, we expect Q2 2017 GAAP diluted net earnings per share of negative $0.03 to $0.01, and we expect FY17 GAAP diluted net earnings per share to now be $0.60 to $0.70 from the prior outlook of $0.72 to $0.82. Keep in mind that this EPS outlook reflects the combined Company as it stands today, with full-year contributions from ES and Software, since we haven't yet closed the transactions.

從 GAAP 角度來看，我們預計 2017 年第二季 GAAP 稀釋每股淨收益為負 0.03 美元至 0.01 美元，我們預計 2017 財年 GAAP 稀釋每股淨收益為 0.60 美元至 0.70 美元，而之前預測為 0.72 美元至 0.82 美元。請記住，由於我們尚未完成交易，因此該 EPS 展望反映了合併後公司的現狀，其中包括 ES 和軟體的全年貢獻。

As is our typical practice, we will update our outlook when we close each transaction. However, I do want to give you some information on how to think about the ES impact, since the close is quickly approaching. We expect the ES transaction to impact FY17 EPS by approximately $0.42, including ES-related stranded costs.

按照我們的慣例，我們將在完成每筆交易時更新我們的展望。然而，我確實想給你一些關於如何看待 ES 影響的信息，因為收盤即將到來。我們預計 ES 交易將對 2017 財年每股收益產生約 0.42 美元的影響，其中包括與 ES 相關的擱淺成本。

We also want to highlight that ES only earns roughly one-third of its operating profit in the first two months of a given quarter, as most customer milestones are in the last month. Consequently, we expect the ES transaction will impact Q2 2017 EPS by approximately $0.08, including ES-related stranded costs.

我們還想強調的是，ES 在一個季度的前兩個月僅獲得了大約三分之一的營業利潤，因為大多數客戶的里程碑都是在最後一個月。因此，我們預計 ES 交易將對 2017 年第二季每股收益產生約 0.08 美元的影響，其中包括與 ES 相關的擱淺成本。

Also, similar to the separation of HPE and HPI, the spinoff of ES will likely cause a one-time non-cash GAAP-only charge in the second quarter from certain changes to our legal structure. The details of these changes are still being finalized, so we have not Incorporated the impact to our GAAP outlook, but we expect them to result in a material write down of deferred tax assets.

此外，與 HPE 和 HPI 的分離類似，ES 的分拆可能會導致第二季度因我們的法律結構發生某些變化而產生一次性非現金 GAAP 費用。這些變化的細節仍有待最終確定，因此我們尚未將其影響納入我們的 GAAP 展望，但我們預計它們將導致遞延稅項資產的重大減記。

Finally, turning to cash flow. While this reduction in earnings outlook does put some pressure on cash flow, we are now expecting reduced ES pension funding payments, and will maintain our full-year FY17 free cash flow outlook of negative $1.8 billion. As mentioned earlier, we do expect some of the timing benefits we saw in Q1 to reverse next quarter, so our Q2 free cash flow will likely be below seasonal norms.

最後，談談現金流。雖然獲利前景的下調確實給現金流帶來了一些壓力，但我們目前預計 ES 退休金資金支付將減少，並將維持 2017 財年全年自由現金流負 18 億美元的預期。如前所述，我們確實預計第一季看到的一些時機優勢將在下個季度逆轉，因此第二季的自由現金流可能會低於季節性正常水平。

Overall, while we're working through some near term challenges, like Meg, I'm confident that we have an effective near-term action plan, as well as the right long term strategy in place to position the future HPE for success. Now, let's open it up for questions.

總體而言，雖然我們正在努力解決一些近期挑戰，例如 Meg，但我相信我們有一個有效的近期行動計劃，以及正確的長期策略，以確保未來 HPE 取得成功。現在，讓我們開始提問。

(Operator Instructions)

（操作員指示）

The first question will come from Sherri Scribner of Deutsche Bank.

第一個問題來自德意志銀行的謝裡‧斯克里布納 (Sherri Scribner)。

If I look at the server and storage performance this quarter, the numbers were pretty disappointing, and there seemed to be a pretty significant deceleration. I think the bears would say that the cloud model is taking more share, and that's pressuring your core business. Can you maybe comment on your view about how much the cloud is impacting your server and storage business?

如果我看一下本季的伺服器和儲存效能，這些數字相當令人失望，而且似乎出現了相當明顯的減速。我認為看跌者會說雲端模式正在佔據更多的份額，這會對你的核心業務造成壓力。您能否評論一下雲端運算對您的伺服器和儲存業務的影響有多大？

Sure. So listen, I think the cloud is impacting our server and storage business, but no more than we thought at the beginning of the year. And really if you look at the server business, per se, and our results within Tier 1, we had a much lower demand from a single large customer that I discussed on the call, and we were also more selective around focusing on profitable deals. And the good news is that helped server margins year over year, but it did depress the revenue a bit.

當然。所以聽著，我認為雲端運算正在影響我們的伺服器和儲存業務，但影響不會超過我們年初的預期。如果你真的看一下伺服器業務本身以及我們在第一層級的業績，你就會發現，我在電話會議上討論過的單一大客戶的需求要低得多，而且我們在專注於有利可圖的交易方面也更加挑剔。好消息是，這有助於伺服器利潤率的逐年提高，但確實會稍微降低收入。

I think we did deliver strong growth in a number of our higher margin better attach areas like high performance compute, mission critical systems and the addition of SGI. And the good news is we also have some things coming up that I think will mitigate that decline. We're ramping our Synergy offering, we've got the power of SGI, and our high performance compute that was part of HPE.

我認為我們確實在一些利潤率更高的附加領域實現了強勁成長，例如高效能運算、關鍵任務系統和 SGI 的加入。好消息是，我們還將採取一些措施，我認為這些措施將減輕這種下滑趨勢。我們正在加強我們的 Synergy 產品，我們擁有 SGI 的強大功能以及屬於 HPE 的高效能運算能力。

We are also pursuing alliances very aggressively. When we owned ES, yes we did some business with Accenture and Capgemini and the Indian firms, but they were always quite wary of us because they viewed us as owning a competitor. As ES gets spun off, there's a lot more opportunity for us to do business with those partners, and I think that will help mitigate the decline.

我們也正在積極尋求聯盟。當我們擁有 ES 時，我們確實與埃森哲、凱捷和印度公司有一些業務往來，但他們始終對我們保持警惕，因為他們認為我們擁有一個競爭對手。隨著 ES 的剝離，我們將有更多機會與這些合作夥伴開展業務，我認為這將有助於緩解下滑趨勢。

So listen, I'm optimistic that these actions will enable us to stabilize servers in FY17. I'll also say Synergy is important, because Synergy allows us to provide on-prem private cloud alternatives at public cloud economics. Both the total cost of ownership, as well as the consumption-based pricing model and we've seen a number now of customers move workloads off the public cloud back into an on-prem data center, because it's more cost effective. So that's the server part.

所以聽著，我很樂觀地認為這些行動將使我們能夠在 2017 財年穩定伺服器。我還要說 Synergy 很重要，因為 Synergy 讓我們能夠以公有雲經濟的方式提供內部部署私有雲替代方案。無論是總擁有成本還是基於消費的定價模型，我們都已經看到許多客戶將工作負載從公有雲轉移回內部資料中心，因為這樣更具成本效益。這就是伺服器部分。

Storage was challenged, I think, by a continued contraction in the traditional portfolio. Remember, we still have tape and some very old storage products that are in decline, and we also were impacted by SSD supply constraints. But on the positive side, all-flash grew almost 30% and would have been considerably higher than that without the SSD supply constraints, and then we also announced a simplified pricing model and bundled compression offerings with 3PAR that was previously actually a competitive hole in our product.

我認為，傳統投資組合的持續收縮給儲存帶來了挑戰。請記住，我們仍然有磁帶和一些正在衰退的非常舊的儲存​​產品，我們也受到 SSD 供應限制的影響。但從積極的一面來看，全快閃成長了近 30%，如果沒有 SSD 供應限制，成長速度會更高，然後我們也宣布了簡化的定價模型和與 3PAR 捆綁的壓縮產品，這實際上是我們產品之前的競爭漏洞。

So I think we've got -- oh, one last thing is, of course with the SimpliVity acquisition we've got a whole new group of storage sellers, where we can have broader market coverage, and we become much scale in that area. So listen, there are real pressures no question about it, but I don't think particularly more than we thought there was going to be in the quarter.

所以我認為我們已經——哦，最後一件事是，當然，透過收購 SimpliVity，我們擁有了一批全新的儲存銷售商，我們可以擁有更廣泛的市場覆蓋，並且我們在該領域的規模也會擴大。所以聽著，毫無疑問確實存在壓力，但我認為，本季的壓力不會比我們預想的更大。

And then just as my follow-up, you took the full-year guidance down by about $0.12, but if you look at the first half, it doesn't seem like there's that much impact to the first half, whereas most of the impact will be in the second half. Can you talk about the linearity of the FX impact, and the commodity impact that you mention as being part of the take down in guidance? Thank you.

然後，正如我的後續問題，您將全年指引下調了約 0.12 美元，但如果您看一下上半年，似乎對上半年的影響並不大，而大部分影響將在下半年。您能否談談外匯影響的線性，以及您提到的作為指導下調一部分的商品影響？謝謝。

Sure. So if you look at FX as an example, we have a rolling hedge program, we do that by country, we do that by product. So what you're seeing is the hedges we put in place, call it six to nine months ago, which were favorable as they rolled off in Q1, so there was no real impact from an EPS perspective, driven by foreign exchange.

當然。因此，如果您以外匯為例，我們有一個滾動對沖計劃，我們按國家/地區執行，並按產品執行。因此，您所看到的是，我們在六到九個月前實施的對沖，這些對沖在第一季開始時是有利的，因此從 EPS 的角度來看，外匯並沒有對其造成真正的影響。

And then when you look at DRAM pricing as an example, that increased about 50% in the month of January. So again, we had some supplies built up or some inventory built up, so you don't see the full effect of that. So you will see both the FX and the commodity pricing flow through the rest of the year.

以 DRAM 定價為例，1 月價格上漲了約 50%。因此，我們再次累積了一些供應或庫存，因此您看不到其全部效果。因此，您將看到外匯和商品定價在今年剩餘時間內流動。

Now, we're going to try to price for some of that. We've gone out with price increases, and it's really a question of what will the impact be toe demand and what will be the competitive response. So you'll see a flow through I would say in typical seasonality.

現在，我們將嘗試對其中一些進行定價。我們已經提高了價格，真正的問題是這會對需求產生什麼影響以及競爭對手會做出什麼反應。因此，您會看到一個流動，我想說這是典型的季節性現象。

Let me add one thing about the EPS takedown of about $0.12. So when you think about commodities, and you think about foreign exchange, that was about -- we estimate about $0.12 of degradation. And the decision we had to make is did we want to cut $0.12 more of cost out of our cost structure.

讓我補充一點關於 EPS 下降約 0.12 美元的情況。因此，當您考慮商品和外匯時，我們估計損失約為 0.12 美元。我們必須做出的決定是，我們是否要從成本結構中削減 0.12 美元的成本。

And as you all know, we've been taking a lot of cost out of this Company over the last 4.5 years, and my view was we've got very good investments in field selling cost, in innovation, in automation, in IT, that is going to put us in very good stead for the long term. I did not think it was the right thing to do to absorb all of that commodities and foreign exchange degradation by cutting more costs into what I think are going to be very high return on capital and return on investment projects. So we decided actually that the best long term thing for the Company was to not cut into bone and meat.

眾所周知，我們在過去四年半中從公司中節省了大量成本，我認為我們在現場銷售成本、創新、自動化、IT 方面進行了非常好的投資，這將使我們在長期內處於非常有利的地位。我認為，透過削減更多成本來吸收所有商品和外匯貶值並不是正確的做法，而我認為這些成本和外匯貶值項目將會獲得非常高的資本回報率和投資回報率。因此，我們實際上決定，對公司而言，長期來看最好的做法就是不要割肉和骨頭。

The next question will come from Toni Sacconaghi of Bernstein.

下一個問題來自伯恩斯坦的托尼·薩科納吉。

Yes, at your analyst day, and also on your earnings call at the end of the year, you provided three sets of guidance. One for HPE as is, which quite frankly is completely irrelevant at this point, given that you're going to be spinning off services. And you also provided guidance of $1.45 to $1.55 for the current year and $1.25 to $1.35 in EPS for RemainCo. Can you provide updated guidance for RemainCo go forward in current year? And I guess the question is, given that the erosion appears to be all in the Enterprise Group, in fact software and services were better than my numbers, should we be thinking about lowering the current year $1.45 to $1.55 by $0.12, and thinking of RemainCo earnings thereafter as being notably lower than the $1.25 to $1.35, and why not?

是的，在您的分析師日以及年底的收益電話會議上，您提供了三套指導。一個是針對 HPE 的，坦白說，考慮到您將要剝離服務，這在目前是完全不相關的。您還為本年度提供了 1.45 美元至 1.55 美元的預期，為 RemainCo 提供了每股收益 1.25 美元至 1.35 美元的預期。您能否為今年的 RemainCo 進展提供最新指導？我想問題是，鑑於侵蝕似乎全部發生在企業集團，事實上軟體和服務比我的數字要好，我們是否應該考慮將今年的 1.45 美元到 1.55 美元降低 0.12 美元，並且認為此後 RemainCo 的收益將明顯低於 1.25 美元到 1.35 美元，為什麼不呢？

Yes, so let me take a cut at that. So we did guide the $2 to $2.10 as a combined Company, because again, similar to prior practices, until we actually separate, we will provide that outlook, and then we'll adjust that outlook once the transactions have closed.

是的，那麼讓我來削減一下。因此，作為一家合併後的公司，我們確實將價格預期控制在 2 美元至 2.10 美元之間，因為與以前的做法類似，在我們真正分離之前，我們會提供該預期，然後在交易結束後調整該預期。

So to your one of your questions around the as-reported guide, the take down would apply to that, so the $1.45 to $1.55 would go down by $0.12 on both ends of the range. And again, that's primarily driven by the FX, commodity pricing, and some execution challenges. When you look at the $1.25 to $1.35 number, from an ongoing perspective, because obviously we are not going to report that guide on a quarterly basis, it does have the 2017 assumptions in there.

因此，對於您關於報告指南的一個問題，下調將適用於該指南，因此 1.45 美元至 1.55 美元的範圍兩端將下降 0.12 美元。再次強調，這主要是受外匯、商品定價和一些執行挑戰的影響。當你從持續的角度來看 1.25 美元到 1.35 美元的數字時，因為顯然我們不會按季度報告該指南，所以它確實包含了 2017 年的假設。

I think you'll still get within that range longer term. It really depends on how those price increases that we've executed, how those take. So the more that they take, you'd be up at the higher end of that range. If they don't take, given demand or competitive response, you'd be at the lower end of that range.

我認為從長遠來看你仍會處於這個範圍內。這實際上取決於我們執行的價格上漲幅度以及其效果如何。因此，他們服用的越多，你的劑量就越高。如果他們不接受，考慮到需求或競爭反應，你的價格就會在該範圍的低端。

Okay and then just to follow-up, if I go back to when you last reported earnings in late November, the currency bundle really hasn't changed much. And I appreciate that DRAM pricing has changed in the month of January, but I think most people were aware of a much tougher commodity environment in November, in fact your sister Company, HPQ, had been calling that out well before November, and had made provisions to adjust for that, both in pricing and in building inventory.

好的，然後只是為了跟進，如果我回到您上次在 11 月底報告收益的時候，貨幣包實際上並沒有太大變化。我很感激 DRAM 定價在一月份發生了變化，但我認為大多數人都知道 11 月份的商品環境會更加嚴峻，事實上，您的姊妹公司 HPQ 早在 11 月之前就已意識到這一點，並已做好調整準備，包括定價和建立庫存。

So the question is the only thing that really seems new or that you shouldn't have known about was either the market changing or execution. Were you aware of these? I'm sure you were aware in November, or did you just think you could overcome them, and that's why you didn't update your guidance at the end of November? Or should we really be thinking the market and your execution are really what the material differentiators are, in terms of your choosing to lower the guidance now as opposed to in November when at least two of the forces were very apparent?

所以問題是，唯一真正看起來像新的事情或你不應該知道的事情是市場變化或執行。您知道這些嗎？我確信您在 11 月就意識到了這一點，或者您只是認為您可以克服它們，這就是為什麼您沒有在 11 月底更新您的指導？或者我們真的應該認為市場和您的執行才是真正的實質區別因素，就您現在選擇降低指導值而言，而不是在 11 月，當時至少有兩種力量非常明顯？

Yes so I'll address that, and Meg, you can jump in here if you'd like.

是的，我會解決這個問題，梅格，如果你願意的話，你可以加入。

So let's start with FX. I think to your point, we guided in October for the full year 2017 outlook at SAM, so at that point in time, the Euro was trading I'd call it $1.10, and the yen which has another significant impact was trading at about JPY103. When we came out on the fourth-quarter earnings call, we did highlight that there was some pressure.

那麼就讓我們從 FX 開始吧。我認為正如您所說，我們在 10 月對 SAM 的 2017 年全年前景做出了預測，因此在那個時間點，歐元交易價格為 1.10 美元，而對歐元產生重大影響的日元交易價格約為 103 日元。當我們召開第四季度收益電話會議時，我們確實強調存在一些壓力。

So we got a question, I can't remember who asked it, and we said yes, rates are less favorable than they were. I think at that point in time the Euro was about $1.06 and the yen was at about JPY110, JPY111. But given the fact we were three weeks into the year, given the fact that we were rolling into a new administration in the US, and we weren't quite sure how that was going to play out, as well as the fact that we had hedges in place that protected the first quarter, we decided to continue to monitor the currency environment. We would make some operational changes that we thought were appropriate, and then that's why we didn't change the guide then.

所以我們有一個問題，我不記得是誰問的，我們的回答是，是的，利率不如以前那麼優惠。我認為當時歐元兌美元匯率約為 1.06 美元，日圓兌美元匯率約為 110 日圓或 111 日圓。但考慮到今年已經過去三週，考慮到美國即將迎來新一屆政府，我們不太確定事情會如何發展，再加上我們已經採取了對沖措施來保護第一季度，我們決定繼續監測貨幣環境。我們會做出一些我們認為合適的操作變更，這就是我們當時沒有更改指南的原因。

As we sit here today, we're now five months into the year, and that Euro was still sitting at about $1.06 the Yen is still sitting at about JPY112, so we felt it was prudent to adjust our guide now. And it's really, it was a cognitive choice that Meg alluded to, is we had choices that we evaluated, and we decided this was the prudent thing to do, so we could continue to drive the strategy, we could continue to make the strategic investments that will drive long-term value. So that's the foreign exchange piece.

今天，距離今年已經過去了五個月，歐元兌美元匯率仍約為 1.06，日圓兌美元匯率仍約為 112，因此我們認為現在調整我們的指南是明智之舉。事實上，這是梅格提到的認知選擇，我們評估了各種選擇，並認為這是明智之舉，這樣我們就可以繼續推動這項策略，繼續進行能夠推動長期價值的策略投資。這就是外匯部分。

And then on the DRAM piece, those prices spiked in January, about 50% in January. We did do some advanced purchases in the fourth quarter, but there was only so much you could buy, because everybody was facing the same thing, and there's only a limited amount of capacity.

就 DRAM 而言，其價格在 1 月飆升，約 50%。我們確實在第四季度進行了一些提前採購，但能買的數量有限，因為每個人都面臨著同樣的問題，而且產能有限。

So again, that's why you didn't see a lot of that pressure in our Q1 EPS, because we were using inventory that we had bought at lower pricing. And that's something that will continue to play out in Q2, Q3 and Q4. It depends on how the capacity comes online, and we really don't see the foreign exchange changing drastically as we go forward as well, so hopefully that answers your question.

所以，這就是為什麼你沒有看到我們第一季每股收益出現太大壓力的原因，因為我們使用的是以較低價格購買的庫存。這種現象將在第二季、第三季和第四季繼續顯現。這取決於產能如何上線，而且我們確實沒有看到外匯在未來發生劇烈變化，所以希望這能回答你的問題。

Thank you.

謝謝。

The next question will be from Kulbinder Garcha of Credit Suisse.

下一個問題來自瑞士信貸的 Kulbinder Garcha。

Just a couple of clarifications really. Maybe for Meg, I think you've talked about your TAM growing 2% to 3%, and at constant currency, backing out the acquisitions, et cetera, I think you've hit a growth rate in that range or above that range, about half the time since separation and half the time that hasn't been possible, since you separated, and that's a reasonable amount of time now.

其實只是幾點澄清。也許對於梅格來說，我認為你已經談到了你的 TAM 增長 2% 到 3%，並且以不變的貨幣計算，取消收購等等，我認為你已經達到了這個範圍內或高於這個範圍的增長率，自分離以來大約有一半的時間是這樣的，而自分離以來有一半的時間是不可能實現的，現在這是一個合理的時間量。

I'm just wondering, do you still believe in that growth rate that the industry participants, do you think HP can consistently hit those numbers? And if not, does something maybe have to change on the M&A front to accelerate that growth on the revenue side? That's my first question.

我只是想知道，您是否仍然相信行業參與者的成長率，您認為惠普能夠持續達到這些數字嗎？如果不是，那麼是否需要在併購方面做出一些改變，以加速收入的成長？這是我的第一個問題。

And then the second one on restructuring and cost savings. The fact that you're choosing not to take more cost out, given the current challenges that you've seen, does that also tell us that the efficiency drive and the inefficiency that HPE may have had in its costs now, and is a much more difficult balancing act between projects you want to keep and eliminating redundant costs? Thanks.

第二個是關於重組和成本節約。考慮到您目前面臨的挑戰，您選擇不削減更多成本，這是否也告訴我們，HPE 目前的成本驅動力和效率低下，以及在您想要保留的項目和消除冗餘成本之間取得平衡是否更加困難？謝謝。

Yes, okay, so let me address the growth question. I think you're probably right, that we've grown half the quarters since we separated, and you have to look at first what is the go-forward Hewlett Packard Enterprise, as opposed to also the whole Company, because in much of the last year, obviously Enterprise Services was more of a drag than EG was.

是的，好的，那麼讓我來談談成長問題。我想你可能是對的，自從我們分開以來，我們已經有一半的季度實現了成長，你必須先看看惠普企業的未來是什麼，而不是整個公司，因為在去年的大部分時間裡，企業服務顯然比 EG 更拖累公司。

But let me answer the question about go-forward Hewlett Packard Enterprise, which in 2017, which is EG plus HPE Financial Services. I would say yes, I think we can return to growth, but there is one caveat that I would make, and that is a single Tier 1 service provider who was a big customer of ours, who is slowing down orders dramatically. But for the rest of the business, ex that large single Tier 1 service provider, I think we've set ourselves up well to be prepared to tackle the future. I like our portfolio, we've really reshaped this portfolio, both inorganically as well as organically.

但讓我來回答有關惠普企業 (Hewlett Packard Enterprise) 未來的問題，即 2017 年的 EG 加上 HPE 金融服務。我想說是的，我認為我們可以恢復成長，但我要提出一個警告，那就是我們的一個大客戶，單一一級服務供應商，正在大幅放慢訂單速度。但對於其餘業務，除了大型單一一級服務提供者之外，我認為我們已經做好了應對未來的準備。我喜歡我們的投資組合，我們確實重塑了這個投資組合，無論是無機的還是有機的。

I think you should feel very good about TS. Remember, over the last three or four years, there was a lot of question, could we return TS to growth? And orders precursors revenue. We've seen orders grow, and the last couple of quarters you've seen revenue grow, and orders grew again this quarter. So we're very confident about the TS growth rate, and of course that happens to carry a much higher margin than our infrastructure products.

我認為你應該對 TS 感覺很好。記住，在過去的三、四年裡，有許多問題，我們能否讓 TS 恢復成長？並有訂單前兆收入。我們看到訂單在成長，過去幾季的營收也在成長，本季的訂單再次成長。因此，我們對 TS 的成長率非常有信心，當然它的利潤率比我們的基礎設施產品要高得多。

Aruba continues to do very well. And as I said, some of our other high growth areas. So I'm going to say yes with the possible exception of the single Tier 1 Service Provider, and that could throw us into slightly negative growth for 2017.

阿魯巴繼續表現良好。正如我所說，我們的其他一些高成長領域也是如此。因此，我的答案是肯定的，但可能只有一家一級服務提供者例外，這可能會導致我們在 2017 年出現輕微的負增長。

On the cost out, so listen, we have taken a lot of cost out of this Company. We have improved the efficiencies, the business process reengineering. And by the way, embedded in our forecast for 2017 is all of the reshaping that we did around RemainCo, costs are coming out. We've totally reshaped how that business is run, with far fewer layers, and much more efficiency. So that will continue.

關於成本，聽著，我們已經從這家公司中扣除了很多成本。我們提高了效率，並進行了業務流程重組。順便說一句，我們對 2017 年的預測中已經包含了我們圍繞「留歐」所做的所有重塑，成本正在顯現。我們徹底重塑了該業務的運作方式，層級大大減少，效率大大提高。這種情況將會持續下去。

I do think after we're separated there is going to be potentially some more costs to come out. Right now, we're carrying almost the full IT load because the IT team is doing all of the separations. We will skinny down IT, obviously some of IT will go to Software, some will obviously go to CSC, so I think that will help us. And then there's some other things we can go after, but I have to say quite honestly, the low hanging fruit is gone.

我確實認為我們分開後可能會產生更多的費用。目前，我們承擔了幾乎全部的 IT 負擔，因為 IT 團隊正在進行所有的分離工作。我們將精簡 IT 部門，顯然部分 IT 部門將用於軟體，部分將用於 CSC，所以我認為這將對我們有所幫助。然後我們還可以追求其他一些事情，但我必須坦白地說，唾手可得的事情已經沒有了。

Yes just to elaborate on that a little bit, if you look at our OpEx for Q1, we were down year over year about $340 million. Now granted, we had the TippingPoint divestiture, so I'll call it from an operational basis, it's roughly $220 million, so we do have a lot of cost take out in the plan. We're executing upon that.

是的，稍微詳細說明一下，如果你看看我們第一季的營運支出，你會發現我們比去年同期下降了約 3.4 億美元。現在，我們已將 TippingPoint 剝離，因此從營運角度來看，這筆交易價值約為 2.2 億美元，因此我們的計劃中確實有很多成本削減。我們正在執行這一目標。

I think when we get to, when we talk a little bit about this at some point, when you get to the Q4 of 2017, we did this benchmarking as an example on all of our functions from a run rate perspective, we will be at that benchmark except for the IT and the real estate component. So again, it takes us a little bit of time to get through these separations and then we can really zero in on the IT and the real estate front to continue to capitalize on those savings. But I think our view is there's always opportunity for cost. It's just a question of how much and how quickly can you take that out, and right now we feel like we're taking out quite a bit of cost.

我認為，當我們在某個時候談論這一點時，當你進入 2017 年第四季度時，我們會從運行率的角度對所有功能進行基準測試，除了 IT 和房地產部分之外，我們都會達到該基準。因此，我們需要花一點時間來完成這些分離，然後我們才能真正專注於 IT 和房地產方面，繼續利用這些節省。但我認為我們的觀點是，總是存在著成本的機會。問題只是你能多快地消除這些成本，而現在我們感覺我們已經消除了相當多的成本。

Great, thank you.

太好了，謝謝。

The next question will be from Steve Milunovich of UBS.

下一個問題來自瑞銀的史蒂夫·米盧諾維奇。

Meg, could you talk a bit more about these management changes? You mentioned the Head of Sales, the Head of TS, who I thought was supposedly doing a great job you've always spoken very highly of him, and all these geos. It seems to coincide with the spinoffs, but I don't know why that would affect a lot of movement around EG. So maybe you could talk about some of the individuals involved, and why are all of the changes?

梅格，您能再多談談這些管理變動嗎？您提到了銷售主管、TS 主管，我認為他們應該做得很好，您一直對他評價很高，還有所有這些地理位置。這似乎與衍生產品相吻合，但我不知道為什麼這會影響 EG 周圍的許多動向。那麼也許您可以談論一些涉及其中的個人，以及為什麼會發生所有這些變化？

Sure. So remember as we go forward as RemainCo if you will, which is EG plus HPE FS, we needed to set up EG to be a very lean and cost effective competitor, because guess what? In Europe, we compete against the Chinese, obviously it's a very, very competitive market. So we wanted to reorganize ourselves in a way that we thought would be much more cost effective and more efficient.

當然。因此請記住，當我們以 RemainCo 的身份繼續前進時，也就是 EG 加上 HPE FS，我們需要將 EG 設定為一個非常精簡且具有成本效益的競爭對手，因為你猜怎麼著？在歐洲，我們與中國競爭，顯然這是一個競爭非常激烈的市場。因此，我們希望以一種我們認為更具成本效益和更有效率的方式進行重組。

And the first was we appointed Peter Ryan to be the new Head of Global Sales. We've actually never had a Head of Global Sales. He's now the Head of Global Sales, and he's got three new region heads:

首先，我們任命 Peter Ryan 為新的全球銷售主管。我們實際上從未有過全球銷售主管。他現在是全球銷售主管，並且有三位新的地區主管：

Jim Merritt, who used to be in Asia, and did a fantastic job for us in Asia has come back to the United States. And then we promoted Andy Isherwood to be the Head of Europe, who filled in behind of Peter Ryan, because he had been head of Europe, so I've got three new region heads, plus Peter being a new Head of Global sales. They are not new to HP, but they are new in their roles.

吉姆·梅里特曾經在亞洲工作，為我們在亞洲做出了傑出的貢獻，現在他已經回到美國了。然後，我們提拔安迪·伊舍伍德 (Andy Isherwood) 為歐洲區主管，他接替彼得·瑞安 (Peter Ryan)，因為他曾擔任歐洲區主管，因此我有三個新的地區主管，另外彼得還擔任新的全球銷售主管。他們對惠普來說並不陌生，但他們所扮演的角色卻是新的。

Secondarily, we have now real plans to grow TSS, which is our Technology Services Support business as well as TS Consulting, so Scott Weller still runs TSS, Rafael Brugnini still runs TSC, but we've hired someone to take both of those businesses, and really drive growth overall in the services business, because we've got to grow our advisory and transform service, we have to grow our support services business, as we have in the past, and there's a lot of opportunity in some of the new products, particularly around flexible capacity services.

其次，我們現在有真正的計劃來發展 TSS，即我們的技術服務支援業務以及 TS 諮詢業務，因此 Scott Weller 仍然負責 TSS，Rafael Brugnini 仍然負責 TSC，但我們已經聘請了專人來負責這兩項業務，並真正推動服務業務的整體增長，因為我們必鬚髮展我們的諮詢和轉型服務，我們必鬚髮展我們的商業，

So we hired a new executive named Ana Pinczuk, who is going to be in charge of all services. Scott Weller is still in place, and we think very highly of Scott and Rafael Brugnini is still in place.

因此，我們聘請了一位名叫 Ana Pinczuk 的新主管，負責所有服務。斯科特·韋勒 (Scott Weller) 仍在原職，我們對斯科特評價很高，拉斐爾·布魯尼尼 (Rafael Brugnini) 仍在原職。

We also hired a new leader for our channel program. We had a fellow who was hired in a number of years ago, who actually did a very good job for us, but was really focused on selling cloud services and so we actually hired a fellow by the name of Denzil Samuels, who has a long history with the channel. He most recently was at GE, and so he has come in the last month or two months to run all of the channel worldwide, yet Scott Dunsire is still in place in the United States. And so we've got consistency there but we do have a new head of the channel.

我們也為我們的通路專案聘請了一位新領導者。我們幾年前聘請了一位同事，他確實為我們做了很好的工作，但他真正專注於銷售雲端服務，所以我們實際上聘請了一位名叫 Denzil Samuels 的同事，他在該管道有著悠久的歷史。他最近在通用電氣公司任職，所以在過去的一兩個月裡，他來這裡是為了管理全球的所有管道，但斯科特鄧西爾仍然在美國任職。因此，我們在這方面保持一致，但我們確實有一位新的通路主管。

So I think all these folks to some degree were also doing double duty. We were making divestitures, we were doing M&A, we were doing separation, and Antonio was doing a lot of double duty as well. So I think the good news is largely that is through the pipeline or through the python if you will, and I'm feeling pretty good about people settling into their new roles. But quite frankly, I probably put more change into this organization in Q1 than I probably should have.

所以我認為所有這些人在某種程度上也承擔著雙重責任。我們正在進行資產剝離、併購、分離，安東尼奧也承擔許多雙重職責。因此，我認為好消息主要是透過管道或透過 python，我對人們適應新角色感到非常滿意。但坦白說，我在第一季對這個組織做出的改變可能比我應該做的還要多。

I wouldn't -- this doesn't go under the org change category, but I wouldn't underestimate at the local level the impact on the country leaders, which obviously do a lot of selling for us. When you do a separation like this, you have to go out and speak with customers, you have to explain to them the ES separation from HPE, you have to deal with workers councils, if there are any organizational changes, so there is quite a bit of work that ripples through the organization.

我不會——這不屬於組織變革類別，但我不會低估地方層級對國家領導人的影響，這顯然為我們帶來了許多銷售。當你進行這樣的分離時，你必須出去與客戶交談，你必須向他們解釋 ES 與 HPE 的分離，你必須與工人委員會打交道，如果有任何組織變化，所以有相當多的工作會波及整個組織。

And we've got two separations going on now at once. And I'll add one more thing. When we separated HPI from Hewlett Packard Enterprise, it was one family. There was one adult that was supervising both the separation of the siblings. Now, we're doing separations that is a merger with a third party, and that actually adds a complexity that we knew about, but has created some complexity. And by the way, the most intense time for the ES separation was in Q1, no question about it, and now we're on sort of a nice glide path to March 31.

我們現在同時進行兩次分離。我還要補充一點。當我們將 HPI 與惠普企業分開時，它們是一個整體。有一名成年人監督兄弟姊妹的分離。現在，我們正在進行分離，即與第三方合併，這實際上增加了我們所知道的複雜性，但確實造成了一些複雜性。順便說一句，ES 分離最緊張的時期是在第一季度，這是毫無疑問的，現在我們正處於 3 月 31 日的良好下滑路徑上。

Okay, fair enough. You talked about markets being difficult, but can you talk a bit about competition, particularly against folks like Cisco and Lenovo, and do you feel like you're missing the window a bit to take advantage of whatever disruption is happening at Dell EMC?

好吧，夠公平。您談到市場競爭激烈，能否談談競爭情況，特別是與思科和聯想等公司的競爭？您是否覺得自己錯過了利用 Dell EMC 所發生的任何顛覆性變革的機會？

No, I think we actually did quite a good job of intercepting that merger, and we have recruited a lot of new channel partners. They are beginning to ramp. Much as we did a good job intercepting the server move from IBM to Lenovo, we did a very good job intercepting a lot of that business, so I think we've taken advantage of that to some degree.

不，我認為我們在阻止那次合併方面實際上做得相當不錯，而且我們已經招募了許多新的通路合作夥伴。他們開始加速行動。就像我們在阻止伺服器從 IBM 轉移到聯想的方面做得很好一樣，我們在阻止許多此類業務方面也做得非常好，所以我認為我們在某種程度上利用了這一點。

Lenovo is around. They've got their hands full on a couple of other things, the server business and Motorola, but Dell is being very aggressive, particularly on the server side of things, and we're countering that when we think it makes the right sense. We aren't doing share for share's sake here, but we are being smart about it.

聯想就在附近。他們在其他一些事情上也忙得不可開交，例如伺服器業務和摩托羅拉，但戴爾表現得非常積極，特別是在伺服器方面，而當我們認為這樣做合理時，我們就會反擊。我們不是為了分享而分享，而是明智地分享。

And then in Europe, we actually are seeing the Chinese. We're seeing Huawei being more aggressive, and we're trying to avoid what we learned in the PC business, which is they do the land and expand. If you can keep them from landing, then that is a much better long-term strategy, so we're working hard on that, too.

在歐洲，我們確實看到了中國人。我們看到華為變得更加積極，我們正試圖避免重蹈個人電腦業務的覆轍，佔領市場然後擴張。如果你能阻止它們著陸，那麼這是一個更好的長期策略，所以我們也在努力做到這一點。

I'd also say the joint venture on China is actually working quite well. There's been some growing pains there but actually we're quite optimistic about that, and optimistic about the Shingwa team that is now in charge of that business. And given the trade situation and what may or may not happen with the administration, I'm very glad I'm part of a joint venture in China.

我還想說，在中國的合資企業其實運作得相當順利。雖然經歷了一些成長的煩惱，但實際上我們對此非常樂觀，並且對現在負責該業務的 Shingwa 團隊也持樂觀態度。考慮到貿易狀況以及政府可能採取或不採取的行動，我很高興成為中國合資企業的一部分。

The next question will be from Katy Huberty of Morgan Stanley.

下一個問題來自摩根士丹利的凱蒂休伯蒂 (Katy Huberty)。

When I look at the storage business, a number of the headwinds you're discussing including declines in the legacy business and higher commodity prices are dynamics that some of your big competitors also face. And yet when I look at NetApp the closest public peer, they grew their business 5% sequentially. Your storage business declined 12% sequentially, so that's a huge gap, and I just wonder if you can talk a little bit more about what changed your momentum so quickly, relative to peers, and then what needs to be done to get back on track?

當我審視儲存業務時，您所討論的許多不利因素，包括傳統業務的下滑和大宗商品價格的上漲，也是您的一些大型競爭對手所面臨的因素。然而，當我觀察最接近的上市公司 NetApp 時，他們的業務卻連續成長了 5%。你們的儲存業務環比下降了 12%，這是一個巨大的差距，我只是想知道你們是否可以再多談一下，相對於同行，是什麼讓你們的發展勢頭如此迅速地改變，然後需要做些什麼才能回到正軌？

Yes, so I'd say listen, the bright spot in the storage portfolio continues to be the all-flash growth, which was almost 30%. And it would have been considerably higher if we had more SSD supply, so we're feeling really good about our all-flash display. I mean our all-flash product.

是的，所以我想說，儲存產品組合中的亮點仍然是全快閃成長，增幅接近 30%。如果我們有更多的 SSD 供應，這個數字還會更高，所以我們對我們的全快閃顯示器感到非常滿意。我指的是我們的全快閃產品。

Some of the other parts of the business were weaker than probably they should have been. I think I will attribute some of that to execution, and some of that to market. So we're not happy with the storage performance this quarter. I'm quite happy with the all-flash situation, but there's other things that we're going to buck up as we go forward. And so I think that's the way I would characterize the quarter.

一些其他業務部分可能比應有的程度要弱。我想我會將其中一部分歸因於執行，一部分歸因於市場。所以我們對本季的儲存效能不滿意。我對全快閃的情況非常滿意，但隨著我們不斷前進，我們還會加強其他方面。所以我認為這就是我對本季的描述。

And then the weakness at a major Tier 1 service provider, can you talk about that a little bit more? Is that an HP year on year comp issue, or is there just a change in the momentum of buying at that particular customer?

那麼，您能否再詳細談談主要一級服務提供者的弱點呢？這是 HP 同比問題嗎，還是只是特定客戶的購買勢頭髮生了變化？

It's actually both. It's a year-over-year comp issue and it is a different buying pattern than had been anticipated. And so we'll see if that corrects over the next two or three, four quarters, built into our forecast is that it does not correct, so if it does, that would be an upside. And again remember, these Tier 1 deals, we do make money on them, but they aren't as profitable as the core ISS, so that doesn't translate as dynamically into operating profit as it does to revenue. So they are facing a very competitive business, the Tier 1 business is very competitive, and we'll see what happens there.

事實上兩者皆有。這是同比問題，購買模式與預期不同。因此，我們將看看這種情況是否在未來兩到三個或四個季度內得到糾正，我們的預測是這種情況不會得到糾正，所以如果情況確實如此，那將是一個好處。再次記住，我們確實從這些一級交易中賺錢，但它們的利潤不如核心 ISS 高，因此，它不能像轉化為收入那樣動態地轉化為營業利潤。因此，他們面臨非常激烈的競爭，一級市場的業務競爭非常激烈，我們將拭​​目以待。

Thank you.

謝謝。

The next question will be from Maynard Um of Wells Fargo.

下一個問題來自富國銀行的 Maynard Um。

Within TS, if I exclude the SGI services business, which I presume is in there, I'm calculating that the core TS was maybe down around 2% year over year. And I'm just wondering if this is purely a function of slowing hardware, or is there slowing in that reclassed ES revenue that you moved in there? What I'm really trying to figure out is whether the larger hardware declines that are happening now will have an adverse impact on TS, or if the new services are now growing significantly more? And then I have a follow-up.

在 TS 中，如果我排除 SGI 服務業務（我假設它包含在內），我計算出核心 TS 可能同比下降約 2%。我只是想知道這是否純粹是硬體速度減慢的結果，還是您轉移到那裡的重新分類的 ES 收入也出現了減慢？我真正想弄清楚的是，現在正在發生的更大範圍的硬體衰退是否會對 TS 產生不利影響，或者新服務現在是否會顯著增長？然後我有一個後續問題。

So Maynard, the organic TS results were 2.5% in constant currency, so 2.5% growth in constant currency. So we're actually feeling pretty good about that, and it is driven by the new product acceleration, data center care, proactive care, FSC.

因此，梅納德，有機 TS 結果按固定匯率計算為 2.5%，因此以固定匯率計算成長 2.5%。因此，我們對此感覺非常好，這是由新產品加速、資料中心護理、主動護理、FSC 推動的。

And if you go back three or four years on TS, in all rights, for awhile there, that business should have been down 25% a year because it was so driven by our mission critical business. The TS team deserves a huge amount of credit for diversifying the product and actually having that business down only single digits. Now, with the new products coming online, and being actually quite successful, orders are up and we anticipate that business will grow organically, forget adding the SGI services on top of that. So we're feeling pretty good about that business, and anticipate we're going to see growth.

如果你回顧 TS 的三、四年歷史，那麼在所有權利中，有一段時間，該業務每年應該下降 25%，因為它是由我們的關鍵任務業務所驅動的。TS 團隊因實現產品多樣化並實際上使業務僅下降個位數而值得稱讚。現在，隨著新產品的上線，並且實際上相當成功，訂單也在增加，我們預計業務將有機成長，更不用說在此基礎上添加 SGI 服務了。因此，我們對這項業務感到非常滿意，並預計會看到成長。

Keep in mind that business, about 85% of those revenue streams are recurring, so that's why we're confident in the growth throughout the course of the year.

請記住，大約 85% 的業務收入來源都是經常性的，這就是我們對全年成長充滿信心的原因。

And listen, a lot of the server business that was weak didn't have high attach to it anyway. So Tier 1 Service Providers has no service attached to it, so it's not a drag on our services business.

聽著，很多較弱的伺服器業務本來就沒有很高的依戀度。因此，一級服務提供者沒有附加任何服務，因此不會拖累我們的服務業務。

Great, and then, with the incremental cash you'll be getting from the divestitures, any guidance on how you intend to use that cash, particularly against the backdrop of the Company being more acquisitive lately and the possibility for a tax repatriation holiday? Thanks.

太好了，那麼，您從資產剝離中獲得的增量現金，您能指導一下如何使用這些現金嗎，特別是在公司最近收購活動增多以及有可能享受稅收返還假期的背景下？謝謝。

Yes, so I think that we're going to continue to execute the returns-based capital allocation strategy. We feel like that's been working well for us. So in Q1, as an example, we'll return $750 million in cash in the form of share repurchases and dividends. So we're still committed to that $3 billion that we talked about at SAM, again in the form of share repurchases and dividends. Now I will say we are biased towards share repurchases, but we feel like that framework is working well with us, and we're going to continue to operate within that framework.

是的，所以我認為我們將繼續執行基於回報的資本配置策略。我們覺得這對我們很有幫助。以第一季為例，我們將以股票回購和股利的形式返還 7.5 億美元現金。因此，我們仍然致力於實現我們在 SAM 上談到的 30 億美元，同樣以股票回購和股利的形式。現在我要說的是，我們傾向於股票回購，但我們覺得該框架對我們來說效果很好，我們將繼續在該框架內運作。

As far as the repatriation, we haven't incorporated any of that into our plans, because we're not sure what is going to happen, to be quite honest with you. But if there was a one-time holiday, as a majority of our cash is offshore, we would certainly benefit from that, like many other companies. But I would just balance it with, even if we were to see some sort of holiday, I'm not so sure that it would change our returns-based approach. I'm not so sure it would change our approach or strategy towards M&A as we go forward.

至於遣返，我們還沒有將任何內容納入我們的計劃，因為坦白說，我們不確定會發生什麼。但如果有一次性假期，由於我們的大部分現金都在海外，我們肯定會像許多其他公司一樣從中受益。但我要平衡的是，即使我們看到某種假期，我也不太確定它是否會改變我們基於回報的方法。我不太確定它是否會改變我們未來的併購方式或策略。

I agree with that. Remember what we've said, is the kind of acquisitions that have worked well for this Company are 3Com, 3PAR, Aruba, SGI is actually going to be very successful, and SimpliVity, we're excited about, it's too new to declare victory. We just closed on Friday.

我同意這一點。記住我們說過的話，對本公司來說效果良好的收購包括 3Com、3PAR、Aruba，SGI 實際上會非常成功，而 SimpliVity，我們對此感到興奮，因為它太新了，還不能宣布勝利。我們週五剛關門。

But what do they have in common? They've got reasonable valuations, they leverage our distribution channels, they are complimentary technologies, and they drive profitable growth. So I think the best indication of the future is the past.

但他們有什麼共同點呢？他們擁有合理的估值，利用我們的分銷管道，採用互補技術，推動獲利成長。所以我認為過去是未來最好的預兆。

Thanks Maynard. We have time for one more question, please.

謝謝梅納德。我們還有時間再回答一個問題。

That will be Shannon Cross from Cross Research.

演講者是 Cross Research 的 Shannon Cross。

Just, can we go back to the Tier 1 Service Provider? I'm just curious as to whether or not the changes you saw there were basically a slowdown from a capacity need for them, or was it the competitive decision, so you're just facing more competition maybe from white box? I'm trying to figure out if this is just a one-time, or if there's something fundamentally changing in the business model?

只是，我們可以回到一級服務提供者嗎？我只是好奇，您看到的變化是否基本上是由於容量需求而導致的放緩，或者是競爭決策，所以您只是面臨著來自白盒的更多競爭？我想弄清楚這是否只是一次性的，或者商業模式是否發生了根本性的變化？

I mean I'm not entirely sure. What I will tell you is that they have dramatically decreased their purchasing, below commitments that they had made to us.

我的意思是我並不完全確定。我要告訴你的是，他們大幅減少了採購量，低於他們對我們的承諾。

Okay, and then Tim, a quick clarification and maybe talk a little bit about cash flow during the year. You gave a few comments on how we should think about it from a linearity standpoint for the fiscal second quarter, but I just want to confirm, so we're down to $1.9 billion then which would be the pension funding, and then is there anything -- so that's all done now, there won't be any more coming out in this quarter?

好的，然後提姆，快速澄清一下，也許談談今年的現金流。您就我們應該如何從線性角度考慮第二財季的問題發表了一些評論，但我只是想確認一下，我們的資金已降至 19 億美元，這將是養老金資金，然後還有什麼——現在這些都完成了，本季度不會再有任何支出了嗎？

And then just how should we think about the opportunity to drive more working capital out of the model? Maybe you aren't going to be cutting cost as much in the P&L but is there more room from a working capital standpoint as we look forward?

那麼，我們究竟該如何看待從這個模型中獲得更多營運資本的機會呢？也許您不會在損益表中削減那麼多成本，但從我們展望未來來看，從營運資本的角度來看是否還有更多空間？

Yes, sure. I'll just give you a total year perspective, so our guide, we're still comfortable with a negative $1.8 billion. We have, to your point, we've paid out the $1.9 billion in pension. Now there are some more payments to be made because we don't finalize everything until we close the transaction, but we do expect that those payments will be less than the $2.5 billion that we had communicated at SAM, so we will see some favorability there.

是的，當然。我只會給你一個全年的觀點，因此我們的指導是，我們仍然可以接受負 18 億美元。正如您所說，我們已經支付了 19 億美元的退休金。現在還有一些付款需要支付，因為我們在交易結束之前不會完成所有事情，但我們確實預計這些付款將少於我們在 SAM 溝通過的 25 億美元，因此我們會看到一些有利因素。

The reason why we're sticking with our guide is because obviously, with the $0.12 takedown, that drives some earnings pressure. So net-net we still feel very comfortable with the free cash flow guide. As far as working capital, again, we have some timing elements here and there, but I would say overall assumptions over the course of the year have not changed, since the guidance we gave at SAM.

我們堅持指導的原因顯然是，隨著 0.12 美元的下跌，這會帶來一些獲利壓力。因此，我們仍然對自由現金流指南感到非常滿意。至於營運資金，我們再次強調，我們這裡和那裡有一些時間因素，但我想說，自從我們在 SAM 給出指導以來，全年的總體假設並沒有改變。

Thank you.

謝謝。

Great thank you, Shannon. So I think with that, thank you, everyone for joining today. And we'll wrap up the call. Thank you.

非常感謝，香農。所以我想，感謝大家今天的參加。我們將結束通話。謝謝。

Ladies and gentlemen, the conference has concluded. Thank you for attending. You may now disconnect your lines.

女士們、先生們，會議已經結束。謝謝您的出席。現在您可以斷開線路了。