惠普企業 (HPE) 2019 Q2 法說會逐字稿

Good morning, good afternoon and good evening, and welcome to the Second Quarter 2019 Hewlett Packard Enterprise Earnings Conference Call. My name is Jamie, and I'll be your conference moderator for today's call. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes.

早上好，下午好，晚上好，歡迎來到惠普企業 2019 年第二季度收益電話會議。我叫傑米，我將擔任今天電話會議的會議主持人。（操作員說明）提醒一下，正在錄製此會議以供重播。

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

現在，我想將演示文稿轉交給今天電話會議的主持人，投資者關係主管安德魯·西馬內克 (Andrew Simanek) 先生。請繼續。

Good afternoon. I'm Andy Simanek, Head of Investor Relations for Hewlett Packard Enterprise, and I'd like to welcome you to our Fiscal 2019 Second Quarter Earnings Conference Call with Antonio Neri, HPE's President and Chief Executive Officer; and Tarek Robbiati, HPE's Executive Vice President and Chief Financial Officer.

下午好。我是 Hewlett Packard Enterprise 投資者關係主管 Andy Simanek，歡迎您參加我們與 HPE 總裁兼首席執行官 Antonio Neri 舉行的 2019 財年第二季度收益電話會議；和 HPE 執行副總裁兼首席財務官 Tarek Robbiati。

Before handing the call over to Antonio, 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 1 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.

在將電話轉接給 Antonio 之前，讓我提醒您，此電話正在網絡直播中。網絡廣播的重播將在電話會議結束後不久提供大約 1 年。我們在我們的 HPE 投資者關係網頁 investors.hpe.com 上發布了新聞稿和伴隨今天收益發布的幻燈片演示。

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. 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 quarterly report on Form 10-Q for the fiscal quarter ended April 30, 2019.

與往常一樣，本次演講的內容具有前瞻性，並且基於我們對當今世界和我們業務的最佳看法。有關更多詳細信息，請參閱與涉及風險、不確定性和假設的前瞻性陳述相關的收益材料的免責聲明。有關其中一些風險、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陳述。我們還注意到，本次電話會議上討論的財務信息反映了基於目前可用信息的估計，可能與 HPE 截至 2019 年 4 月 30 日財季的 10-Q 表季度報告中最終報告的金額存在重大差異。

Also, for financial information that has been expressed on a non-GAAP basis, we have provided reconciliations to the comparable GAAP information on our website. Please refer to the tables and slide presentation accompanying today's earnings release on our website for details. Throughout this conference call, all revenue growth rates, unless noted otherwise, are presented on a year-over-year basis and are adjusted to exclude the impact of currency. Finally, please note that, after Antonio provides his high-level remarks, Tarek will be referencing the slides in our earnings presentation throughout his prepared remarks. As mentioned, the earnings presentation can be found posted to our website and it is also embedded within the webcast player for this earnings call.

此外，對於在非 GAAP 基礎上表達的財務信息，我們已在我們的網站上提供了與可比 GAAP 信息的對賬。有關詳細信息，請參閱我們網站上今天的收益發布隨附的表格和幻燈片演示。在整個電話會議中，除非另有說明，否則所有收入增長率均按年計算，並進行調整以排除貨幣的影響。最後，請注意，在 Antonio 發表他的高級評論之後，Tarek 將在他準備好的評論中引用我們收益演示中的幻燈片。如前所述，可以在我們的網站上找到收益演示文稿，它也嵌入到本次收益電話會議的網絡廣播播放器中。

With that, let me turn it over to Antonio.

有了這個，讓我把它交給安東尼奧。

Thanks, Andy. Good afternoon, everyone. Thank you for joining us. Our Q2 performance reflects our continued progress on shifting our portfolio to higher-margin products and services to deliver positive and consistent earnings growth. As a result of this focus, we delivered strong growth in operating margin improvement, expanded non-GAAP EPS and grew cash flow versus the prior year. We also made a number of bold strategic moves to drive innovation, strengthen our culture and win new customers. While our Q2 revenue growth was impacted by a combination of both intentional and unanticipated factors, we delivered on our [sum] commitment to grow revenue and we are raising our EPS outlook for the year.

謝謝，安迪。大家下午好。感謝您加入我們。我們第二季度的業績反映了我們在將投資組合轉向利潤率更高的產品和服務以實現積極和持續的盈利增長方面的持續進展。由於這一重點，我們在營業利潤率改善方面實現了強勁增長，擴大了非 GAAP 每股收益，並比上一年增加了現金流量。我們還採取了一些大膽的戰略舉措來推動創新、強化我們的文化並贏得新客戶。雖然我們第二季度的收入增長受到有意和意外因素的共同影響，但我們兌現了 [sum] 增加收入的承諾，並且我們提高了今年的每股收益預期。

In Q2, we delivered revenue of $7.2 billion, up 1% year-over-year, excluding the Tier 1 sales and the currency impact. We grew in key businesses, including Storage, High Performance Compute, Composable Cloud, Aruba services and GreenLake orders. Strength in these areas partially offset continued intentional declines in Tier 1 sales and sales into China as well as some market and execution factors, which I will talk more about in a minute.

第二季度，我們實現了 72 億美元的收入，同比增長 1%，不包括一級銷售額和貨幣影響。我們在關鍵業務方面取得了增長，包括存儲、高性能計算、可組合雲、Aruba 服務和 GreenLake 訂單。這些領域的實力部分抵消了一級銷售額和中國銷售額的持續下降以及一些市場和執行因素，我將在一分鐘內詳細討論。

As we shifted the mix of our portfolio toward higher-value solutions, our underlying profitability improved across the board. Our gross margin of 32.2% expanded 200 basis points, and our non-GAAP operating margin of 8.9% was up 70 basis points year-over-year. All of this, combined with favorable OI&E, drove a strong non-GAAP EPS performance of $0.42, well above the midpoint of our outlook, and positive free cash flow of $402 million, up over $650 million versus the prior year.

隨著我們將投資組合轉向更高價值的解決方案，我們的潛在盈利能力全面提高。我們 32.2% 的毛利率擴大了 200 個基點，我們的非 GAAP 營業利潤率為 8.9%，同比增長 70 個基點。所有這些，再加上有利的 OI&E，推動了 0.42 美元的強勁非 GAAP 每股收益表現，遠高於我們預期的中點，以及 4.02 億美元的正自由現金流，比上一年增加了 6.5 億美元。

From a macroeconomic perspective, we continued to see global demand driven by the need to process ever-growing amounts of data. However, like others in the industry, we did see some changes in market dynamics. For example, trade tensions are creating uncertainty. We continue to believe that an open market where everyone can innovate and participate is important for market stability and customer confidence. We also recently experienced an elongation in sales cycles with some customers. We will continue to monitor these and other microeconomic factors.

從宏觀經濟的角度來看，我們繼續看到全球需求受到處理不斷增長的數據量需求的推動。然而，與業內其他人一樣，我們確實看到了市場動態的一些變化。例如，貿易緊張局勢正在製造不確定性。我們仍然相信，每個人都可以創新和參與的開放市場對於市場穩定和客戶信心非常重要。我們最近還經歷了一些客戶的銷售週期延長。我們將繼續監測這些和其他微觀經濟因素。

By business segment, I will start with Intelligent Edge. We continue to see the edge as a significant opportunity for the company. The explosion of data, devices and apps is driving strong demand for connectivity, security, analytics and cloud computing capabilities at the edge. Given our strong portfolio and ongoing investment in this business, we are well positioned to capitalize on this trend over the long term. In Q2, Intelligent Edge revenue was $666 million, down 5% year-over-year. We saw solid growth in EMEA and APJ and in Aruba services, and we won new customers and introduced new compelling products. This positive momentum was offset by some unexpected execution issues and changes in market dynamics. We uncovered some uneven execution in North America mainly driven by our current sales coverage model, which we are actively addressing.

從業務板塊來看，我先從Intelligent Edge說起。我們繼續將邊緣視為公司的重要機遇。數據、設備和應用程序的爆炸式增長推動了對邊緣連接、安全、分析和雲計算功能的強勁需求。鑑於我們強大的投資組合和對該業務的持續投資，我們有能力長期利用這一趨勢。第二季度，Intelligent Edge 收入為 6.66 億美元，同比下降 5%。我們看到 EMEA 和 APJ 以及 Aruba 服務穩步增長，我們贏得了新客戶並推出了引人注目的新產品。這種積極勢頭被一些意外的執行問題和市場動態的變化所抵消。我們在北美髮現了一些不平衡的執行情況，這主要是由我們當前的銷售覆蓋模型驅動的，我們正在積極解決這個問題。

From a market perspective, we experienced some deals not closing in the time frame we anticipated. While we will continue to monitor the demand environment closely, we are confident in our position going forward based on the new customer wins we closed and the positive reception to the products we introduced this quarter.

從市場的角度來看，我們經歷了一些交易沒有在我們預期的時間範圍內完成。在我們將繼續密切關注需求環境的同時，基於我們贏得的新客戶以及對本季度推出的產品的積極接受，我們對未來的發展充滿信心。

For example, we won a deal with C&S Wholesale Grocers, the largest wholesale grocery supply company in the United States, with 14,000 stores in 50 locations. C&S selected Aruba wireless solutions to address its network and security needs.

例如，我們贏得了與美國最大的雜貨批發供應公司 C&S Wholesale Grocers 的交易，該公司在 50 個地點擁有 14,000 家商店。C&S 選擇 Aruba 無線解決方案來滿足其網絡和安全需求。

McKesson Corporation, a global health care leader currently ranked sixth on the Fortune 100, will be deploying Aruba's wire and wireless infrastructure. And Amherst College is updating its entire campus network with Aruba's solutions.

目前在財富 100 強中排名第六的全球醫療保健領導者 McKesson Corporation 將部署 Aruba 的有線和無線基礎設施。Amherst College 正在使用 Aruba 的解決方案更新其整個校園網絡。

We continue to invest in key capabilities like AI and security. For example, in Q2, Aruba introduced 2 new offerings to help enterprise customers simplify the adoption of IoT by eliminating security and connectivity barriers and decreasing associated operational costs and complexities. Aruba ClearPass Device Insight delivered a single pane of glass for device visibility, employing automated device discovery, machine learning-based fingerprinting and identification and new access points built on the industry's most advanced family of WiFi 6 IoT-ready access points. We expect these new solutions and additional introductions later this year to contribute to growth in our Intelligent Edge segment in the long term.

我們繼續投資於人工智能和安全等關鍵能力。例如，在第二季度，Aruba 推出了 2 種新產品，通過消除安全和連接障礙並降低相關運營成本和復雜性，幫助企業客戶簡化物聯網的採用。Aruba ClearPass Device Insight 為設備可見性提供單一管理平台，採用自動設備發現、基於機器學習的指紋識別和識別，以及基於業界最先進的 WiFi 6 物聯網就緒接入點系列構建的新接入點。我們預計今年晚些時候這些新解決方案和其他推出的產品將有助於我們智能邊緣領域的長期增長。

Turning to Hybrid IT. We delivered revenue of $5.6 billion, up 2% year-over-year, excluding Tier 1. Our segmented approach and investment in high-value products and as a service offerings are paying off. We saw continued strong performance in key areas of the business, including Storage, up 5% year-over-year; High Performance Compute, up 25% year-over-year; Hyper Converged, up 25% year-over-year; and Composable Cloud, up 78% year-over-year.

轉向混合 IT。我們實現了 56 億美元的收入，同比增長 2%，不包括第 1 層。我們的細分方法以及對高價值產品和服務產品的投資正在取得回報。我們看到關鍵業務領域的持續強勁表現，包括存儲，同比增長 5%；高性能計算，同比增長 25%；超融合，同比增長 25%；和可組合雲，同比增長 78%。

Our ability to offer all of this technology as a service is a key differentiator for HPE. We are the only company on the market that can provide a true consumption-driven offering in a hybrid cloud environment.

我們將所有這些技術作為服務提供的能力是 HPE 的一個關鍵差異化因素。我們是市場上唯一一家能夠在混合雲環境中提供真正以消費為導向的產品的公司。

HPE GreenLake is a key element of our push toward subscription-based revenue, which also includes Aruba services and other software-defined solutions. GreenLake continues to see very strong customer momentum and recorded its largest quarter ever, with orders that grew 39% year-over-year. This contributed to our overall HP Pointnext performance, which exited the quarter with a book-to-bill ratio of 1.12, highlighting the potential for future revenue growth.

HPE GreenLake 是我們推動基於訂閱的收入的一個關鍵因素，其中還包括 Aruba 服務和其他軟件定義的解決方案。GreenLake 繼續看到非常強勁的客戶勢頭，並創下有史以來最大的季度業績，訂單同比增長 39%。這對我們的整體 HP Pointnext 業績做出了貢獻，該季度結束時訂單出貨比為 1.12，凸顯了未來收入增長的潛力。

These growth areas offset the impact from some unexpected market dynamics and execution as well as the intentional decline in Tier 1 sales and revenue coming from our H3C relationship in China.

這些增長領域抵消了一些意外的市場動態和執行的影響，以及我們在中國的 H3C 關係導致的一級銷售和收入的故意下降。

From a market perspective, we saw extended sales cycles, which indicates a slightly softer demand environment from what we saw earlier in the quarter. And like the Intelligent Edge, although to a lesser extent, we did not execute as well as we could have in North America. We are taking steps to improve our execution, including realigning our sales coverage in specific segments of the market.

從市場角度來看，我們看到銷售週期延長，這表明需求環境較本季度早些時候略微疲軟。和 Intelligent Edge 一樣，雖然程度較輕，但我們的表現不如北美。我們正在採取措施改善我們的執行力，包括重新調整我們在特定市場領域的銷售覆蓋範圍。

Separately, as we have discussed in prior quarters, while our H3C partnership continues to be strong, we are working to balance the right mix of HP product with H3C local offerings to optimize profitable growth for the overall entity. This had some impact on our revenue in Q2, which Tarek will talk more about in a minute.

另外，正如我們在前幾個季度所討論的那樣，雖然我們的 H3C 合作夥伴關係繼續保持強勁，但我們正在努力平衡 HP 產品與 H3C 本地產品的正確組合，以優化整個實體的盈利增長。這對我們第二季度的收入產生了一些影響，Tarek 將在一分鐘內詳細討論。

In Q2, we continued to attract new customers and partners. For example, we won a significant technology and services deal with an electrical utility company, Southern California Edison, as they upgrade all their customer-facing applications. We also expanded the HPE GreenLake ecosystem by announcing a strategic global partnership with Nutanix to provide customers with more choice for building their hybrid cloud strategy.

第二季度，我們繼續吸引新客戶和合作夥伴。例如，我們贏得了一家電力公司 Southern California Edison 的重要技術和服務交易，因為他們升級了所有面向客戶的應用程序。我們還宣布與 Nutanix 建立全球戰略合作夥伴關係，從而擴展 HPE GreenLake 生態系統，為客戶構建混合雲戰略提供更多選擇。

We also announced a similar partnership with Google Cloud. This partnership showed a growing understanding and acceptance of the fact that the world will be hybrid. From an innovation standpoint, we are continuing to invest in BlueData, which we acquired early this year. In Q2, we announced a new integrated offering that combines the HPE BlueData software platform with the HPE Apollo system and HPE Pointnext services to provide customers with a powerful solution for AI and data-driven business innovation.

我們還宣布了與穀歌云的類似合作夥伴關係。這種夥伴關係表明人們越來越理解和接受世界將是混合的這一事實。從創新的角度來看，我們將繼續投資我們今年年初收購的 BlueData。在第二季度，我們宣布了一項新的集成產品，它將 HPE BlueData 軟件平台與 HPE Apollo 系統和 HPE Pointnext 服務相結合，為客戶提供強大的人工智能和數據驅動型業務創新解決方案。

Finally, we are very excited about our intent to acquire Cray. As you know, Cray is a premier provider of high-end supercomputing solutions. I believe this acquisition will position us to tackle the most data-intensive workloads in the high-growth segment of high-performance computing. HPC has been and continues to be a strategic focus area for HPE and one where we have the clear differentiation. Over the years, we have invested organically to build a strong portfolio and completed acquisitions, including SGI, to take advantage of the rapidly growing demand for powerful computing capabilities. With its leading presence in the government, academic, life science, energy and manufacturing segments, Cray will bring complementary technology and end markets to further strengthen our position. Customer benefits will include new offerings in AI, machine learning, analytics and new consumption models with HPE GreenLake in the near future. Together, the companies can achieve greater scale by combining engineering talent and technologies and enabling R&D innovation leadership. We will also have enhanced supply chain capabilities with its improved U.S.-based manufacturing. So overall, I couldn't be more excited to have Cray join the HPE team once we close the deal in the first quarter of fiscal 2020.

最後，我們對收購 Cray 的意圖感到非常興奮。如您所知，Cray 是高端超級計算解決方案的主要供應商。我相信這次收購將使我們能夠處理高性能計算的高增長部分中數據最密集的工作負載。HPC 一直並將繼續成為 HPE 的戰略重點領域，也是我們具有明顯差異化的領域。多年來，我們通過有機投資建立了強大的投資組合併完成了包括 SGI 在內的收購，以利用對強大計算能力快速增長的需求。憑藉其在政府、學術、生命科學、能源和製造領域的領先地位，Cray 將帶來互補的技術和終端市場，以進一步鞏固我們的地位。客戶受益將包括在不久的將來與 HPE GreenLake 一起提供人工智能、機器學習、分析和新消費模型方面的新產品。通過結合工程人才和技術並實現研發創新領導，兩家公司可以共同實現更大的規模。我們還將通過改進美國製造來增強供應鏈能力。因此，總的來說，一旦我們在 2020 財年第一季度完成交易，我對 Cray 加入 HPE 團隊感到無比興奮。

Just as we are investing and bringing innovative offerings to the market, we also remain committed to thoughtfully investing in our own culture. I believe attracting and retaining the best people is critical, and our renewed focus on culture is bringing energy to our employees and attracting new attention from recruits. The day we celebrated our official grand opening in San Jose last month, we also launched several new employee benefits, including 6 months of paid family leave for the birth or adoption of a new child. I believe strongly in supporting both the career and personal development of our people, and I am proud of the new ways we are able to do so.

正如我們正在投資並將創新產品推向市場一樣，我們也將繼續致力於深思熟慮地投資於我們自己的文化。我相信吸引和留住最優秀的人才至關重要，我們對文化的重新關注正在為我們的員工帶來活力，並吸引新員工的新關注。上個月我們在聖何塞慶祝我們正式盛大開業的那天，我們還推出了幾項新的員工福利，包括 6 個月的帶薪家庭假，用於出生或收養新生兒。我堅信支持我們員工的職業和個人發展，我為我們能夠做到這一點的新方式感到自豪。

In summary, I am pleased that we delivered strong margin improvement, EPS above our outlook and robust cash flow in Q2. While we experienced some changes in microeconomic dynamics and could have executed better in certain areas, we are on track to deliver on our commitments we laid out at SAM. I am excited about our future as we continue to deliver what customers need most. Our strategy at the edge is to provide connectivity, security, analytics and cloud computing. At the core, we provide workload-optimized, cloud-enabled and consumption-driven solutions for a hybrid world. I remain confident that our execution against this strategy will drive profitable growth and solid free cash flow, generating strong shareholder returns.

總而言之，我很高興我們在第二季度實現了強勁的利潤率改善、每股收益高於我們的預期以及強勁的現金流。雖然我們經歷了微觀經濟動態的一些變化，並且本可以在某些領域表現得更好，但我們有望兌現我們在 SAM 做出的承諾。我對我們的未來感到興奮，因為我們將繼續提供客戶最需要的東西。我們在邊緣的戰略是提供連接、安全、分析和雲計算。我們的核心是為混合世界提供工作負載優化、雲支持和消費驅動的解決方案。我仍然相信，我們對這一戰略的執行將推動盈利增長和穩固的自由現金流，從而產生強勁的股東回報。

And with that, I would like to turn it now to Tarek.

有了這個，我想現在把它轉向 Tarek。

Thank you very much, Antonio. Now let me provide more detail on our financial results for the quarter. As I did before, I'll be referencing the slides from our earnings presentation to better highlight our performance in the second quarter of our fiscal year.

非常感謝你，安東尼奧。現在讓我提供有關本季度財務業績的更多詳細信息。正如我之前所做的那樣，我將參考我們的收益演示文稿中的幻燈片，以更好地突出我們在本財年第二季度的表現。

Starting with Slide 1. You'll see, as Antonio said, that we are on track to deliver our key financial metrics that we committed to at our Securities Analyst Meeting. Revenue grew in line with our commitment at SAM for constant currency growth, excluding Tier 1. We continue to expand both gross and operating margins, enabling us to deliver non-GAAP earnings per share above our quarterly outlook.

從幻燈片 1 開始。正如 Antonio 所說，您會看到我們正在按計劃提供我們在證券分析師會議上承諾的關鍵財務指標。收入增長符合我們在 SAM 的承諾，即貨幣持續增長，不包括一級。我們繼續擴大毛利率和營業利潤率，使我們能夠實現高於季度預期的非 GAAP 每股收益。

Most importantly, the quality of our earnings is improving. This has enabled us to deliver free cash flow of $402 million in Q2 and $212 million in the first half. This is the first time we've achieved positive first half free cash flow as Hewlett Packard Enterprise since the company was spun off from the Hewlett-Packard Company in November 2015.

最重要的是，我們的收入質量正在提高。這使我們能夠在第二季度和上半年交付 4.02 億美元的自由現金流和 2.12 億美元的自由現金流。這是自 2015 年 11 月公司從惠普公司剝離以來，我們作為惠普企業首次實現上半年正自由現金流。

Now let me take this opportunity to explain our revenue growth story in this quarter as shown on Slide 2. This quarter, we continued to take deliberate actions to improve our profitability. We continued the wind-down of our Tier 1 business. The business made up 5% of our total revenue in the prior year, and it is now just under 2% but at a much better gross margin. And as Antonio mentioned, we are selling fewer HPE products to our H3C business in China in order to optimize our H3C joint venture for profitable growth. I will talk about China and the H3C entity there in more detail shortly. Currency was also a greater headwind to revenue this quarter. As you can see, after adjusting for deliberate actions in currency, the underlying core business is growing driven by our strategic focus areas.

現在讓我藉此機會解釋我們本季度的收入增長故事，如幻燈片 2 所示。本季度，我們繼續採取有意識的行動來提高我們的盈利能力。我們繼續縮減一級業務。該業務占我們上一年總收入的 5%，現在略低於 2%，但毛利率要高得多。正如 Antonio 所提到的，我們正在向中國的 H3C 業務銷售更少的 HPE 產品，以優化我們的 H3C 合資企業以實現盈利增長。稍後我將更詳細地討論中國和那裡的 H3C 實體。貨幣對本季度收入的影響也更大。正如您所看到的，在對貨幣方面的有意行動進行調整後，基礎核心業務在我們的戰略重點領域的推動下不斷增長。

Turning to the macroeconomic environment. I'll start with China. As you see on Slide 3, China continues to be an important market for us as the largest and fastest-growing IT market in the world. We have a strong presence in China through a very unique structure with H3C, where we own a 49% equity stake and UNIS owns the other 51%. UNIS is an $8 billion market cap company listed in China. UNIS derives the vast majority of its profits from H3C. As mentioned earlier, we continue to focus on balancing the amount of HPE product versus H3C's local offerings to optimize the overall entity for profitable growth.

轉向宏觀經濟環境。我將從中國開始。正如您在幻燈片 3 中看到的那樣，作為世界上最大和增長最快的 IT 市場，中國仍然是我們的重要市場。通過與 H3C 的非常獨特的結構，我們在中國擁有強大的影響力，我們擁有 49% 的股權，而 UNIS 擁有另外 51% 的股權。UNIS 是一家市值 80 億美元的中國上市公司。紫光的絕大部分利潤來自新華三。如前所述，我們繼續專注於平衡 HPE 產品與 H3C 本地產品的數量，以優化整體實體以實現盈利增長。

While selling fewer units to H3C does impact our revenue, keep in mind that we sell product at preferential prices to H3C. As a result of the balancing, we are recognizing higher equity interest year-over-year in the OI&E line of our non-GAAP P&L for which we receive regular cash dividends. HPC's performance, which is operational in nature, is an important component of the OI&E results in our non-GAAP P&L.

雖然向 H3C 銷售的產品數量減少確實會影響我們的收入，但請記住，我們以優惠價格向 H3C 銷售產品。由於平衡，我們在非 GAAP 損益表的 OI&E 項目中確認了比去年同期更高的股權，我們為此定期收到現金股息。HPC 的性能本質上是可操作的，是我們非 GAAP 損益表中 OI&E 結果的重要組成部分。

Also, since the beginning of this month of May 2019, we have the right over the next 3 years to exercise our put option to sell all or part of our 49% stake to UNIS. The put option is valued at 15x trailing 12-month net earnings. It's worth noting that the publicly traded shares of UNIS are trading at a much higher multiple than the multiple of our put option. However, we do not currently intend to exercise our put at this time given the strategic importance of the China market and HPC's growing revenues and earnings.

此外，自 2019 年 5 月本月初起，我們有權在未來 3 年內行使我們的看跌期權，將我們 49% 的股份全部或部分出售給 UNIS。看跌期權的價值是過去 12 個月淨收益的 15 倍。值得注意的是，紫光公開交易的股票交易價格遠高於我們看跌期權的倍數。然而，鑑於中國市場的戰略重要性以及 HPC 不斷增長的收入和收益，我們目前不打算在此時行使我們的認沽權。

Moving on to a broader view of each global region on the right-hand side of Slide 4. We did witness some shifts in market dynamics, with global trade often mentioned as a concern by our customers. We are taking actions ourselves to mitigate the risk of the recent tariff increase from 10% to 25% and have factored that into our outlook. Moreover, foreign exchange rates have continued to move unfavorably the last few quarters, and we faced a significant year-over-year headwind in Q2 of 210 basis points. We now expect currency to be close to a 2-point headwind to revenue growth on a full year basis in fiscal year '19 based on current spot rates instead of just over 1 point as stated at SAM in October 2018.

轉到幻燈片 4 右側每個全球區域的更廣闊視野。我們確實見證了市場動態的一些變化，全球貿易經常被我們的客戶提到是一個關注的問題。我們自己正在採取行動，以降低近期關稅從 10% 增加到 25% 的風險，並將其納入我們的展望。此外，過去幾個季度外匯匯率繼續不利走勢，我們在第二季度面臨 210 個基點的顯著同比逆風。我們現在預計，根據當前即期匯率，貨幣對 19 財年全年收入增長的不利影響將接近 2 個百分點，而不是 2018 年 10 月 SAM 所說的略高於 1 個百分點。

Geographically, America's revenue was down 7% in constant currency or down 2% when normalizing for Tier 1 sales. Revenue growth in EMEA was up 1% in constant currency, with solid double-digit growth in both France and Germany. Asia Pacific was up 1% in constant currency and up 6% in constant currency, excluding China.

從地域上看，按固定匯率計算，美國的收入下降了 7%，按一級銷售正常化後下降了 2%。按固定匯率計算，歐洲、中東和非洲地區的收入增長了 1%，法國和德國均實現了穩健的兩位數增長。亞太地區按固定匯率計算上漲 1%，按固定匯率計算上漲 6%，不包括中國。

Slide 5 shows our performance in the quarter by segment. I won't take you through every number, but let me hit a few key points. In Intelligent Edge, we had solid performance in both EMEA and APJ, but as Antonio mentioned, we have some go-to-market execution issues in North America that we are working through in the coming quarters. In Hybrid IT, our higher-margin value compute portfolio grew at 8%, and within Storage, we saw notable strength in Nimble Storage, which grew 45%. In Operational Services, we grew orders again, including Nimble services. And within HPE Financial Services, we saw solid single-digit growth in our asset management business and continued strength in return of equity, which again exceeded 15% this quarter.

幻燈片 5 按細分顯示了我們在本季度的表現。我不會帶您了解每個數字，但讓我指出幾個關鍵點。在 Intelligent Edge 中，我們在 EMEA 和 APJ 都有穩健的表現，但正如 Antonio 提到的，我們在北美有一些上市執行問題，我們將在未來幾個季度解決這些問題。在混合 IT 領域，我們利潤率較高的計算產品組合增長了 8%，而在存儲領域，我們看到了 Nimble Storage 的顯著優勢，增長了 45%。在運營服務方面，我們再次增加了訂單，包括 Nimble 服務。在 HPE 金融服務部門，我們的資產管理業務實現了穩健的個位數增長，股本回報率持續走強，本季度再次超過 15%。

Let me bring everything together on Slide 6 and put into perspective the key metrics to measure our business as we pivot our portfolio. The left-hand side of the chart shows how the various businesses within Hybrid IT contributed to HPE's overall revenue growth. First, it is important to separate out our deliberate actions in both Tier 1 and China that diluted growth by 4 points combined. The volume compute business remains stable, contributing 20 basis points to growth, and more importantly, our higher-margin value compute business grew 8%, contributing 1.2 points to overall growth. We are seeing strong growth in these categories, with HPC up 25%, contributing 1.5 points; Composable Cloud up 78%, contributing 1.3 points; and HCI up 25%, contributing another 20 basis points. Storage also was up 5%, contributing 60 basis points to overall growth.

讓我將所有內容放在幻燈片 6 上，並在我們調整投資組合時透視衡量我們業務的關鍵指標。圖表的左側顯示了混合 IT 中的各種業務如何為 HPE 的整體收入增長做出貢獻。首先，重要的是要將我們在一級和中國的故意行動分開，將增長稀釋 4 個百分點。容量計算業務保持穩定，為增長貢獻了 20 個基點，更重要的是，我們的高利潤計算業務增長了 8%，為整體增長貢獻了 1.2 個百分點。我們看到這些類別的增長強勁，其中 HPC 增長了 25%，貢獻了 1.5 個百分點； Composable Cloud增長78%，貢獻1.3個百分點； HCI 上漲 25%，又貢獻了 20 個基點。存儲也增長了 5%，為整體增長貢獻了 60 個基點。

While Pointnext revenue was down in the quarter, we are growing Operational Services orders, including Nimble services, at 1% year-over-year and GreenLake subscription services, which were up 39%. These are both important lead indicators to overall future Pointnext revenue growth. This portfolio mix shift, combined with supply chain efficiencies and improvements in manufacturing overhead, drove margin expansion of 200 basis points year-over-year in Q2. Roughly 2/3 of that was driven by the mix shift, and the remaining 1/3 was other cost of sales efficiencies, including lower commodity costs.

雖然 Pointnext 收入在本季度有所下降，但我們正在增加運營服務訂單，包括同比增長 1% 的 Nimble 服務和增長 39% 的 GreenLake 訂閱服務。這些都是未來 Pointnext 整體收入增長的重要領先指標。這種產品組合轉變，加上供應鏈效率和製造費用的改善，推動第二季度利潤率同比增長 200 個基點。其中大約 2/3 是由混合轉變驅動的，其餘 1/3 是其他銷售效率成本，包括較低的商品成本。

We have also been able to hold non-GAAP operating expenses relatively flat through our continued savings and reinvestments from HPE Next. As a result, non-GAAP operating profits continued to expand and were up 70 basis points year-over-year in Q2. All of this has resulted in significantly improved non-GAAP EPS.

通過 HPE Next 的持續儲蓄和再投資，我們還能夠將非 GAAP 運營費用保持在相對平穩的水平。因此，非美國通用會計準則營業利潤繼續擴大，第二季度同比增長 70 個基點。所有這些都導致非 GAAP 每股收益顯著改善。

We are also focused on working capital, and we have been able to decrease our onetime payments for HPE Next. As a result, Q2 cash flow from operations was $1 billion, up 300% versus the prior year. The key takeaway is that our underlying profitability and quality of earnings is materially improving.

我們還專注於營運資金，我們已經能夠減少 HPE Next 的一次性付款。因此，第二季度運營現金流為 10 億美元，比上年增長 300%。關鍵要點是我們的潛在盈利能力和盈利質量正在顯著提高。

Slide 7 shows our EPS performance to date. Non-GAAP diluted net earnings per share of $0.42 was up 31% year-over-year and above our previously provided outlook of $0.34 to $0.38 due to solid operational performance and favorable other income and expense. OI&E was favorable due to lower interest expense, favorable currency hedging, stronger earnings from H3C and onetime asset sales. This marks the sixth consecutive quarter of robust double-digit growth in continuing operations, and we continue to outperform the high end of our outlook range.

幻燈片 7 顯示了我們迄今為止的 EPS 表現。非 GAAP 每股攤薄淨收益為 0.42 美元，同比增長 31%，高於我們之前提供的 0.34 美元至 0.38 美元的預期，原因是穩健的運營業績和有利的其他收入和支出。由於較低的利息支出、有利的貨幣對沖、H3C 的強勁收益和一次性資產出售，OI&E 表現良好。這標誌著持續經營業務連續第六個季度實現兩位數的強勁增長，我們的表現繼續優於我們預期範圍的高端。

GAAP diluted net earnings per share was $0.30, well above our previously provided outlook range of $0.19 to $0.23 per share primarily due to the same reasons for the non-GAAP outperformance and lower-than-expected transformation costs.

GAAP 攤薄後每股淨收益為 0.30 美元，遠高於我們之前提供的每股 0.19 美元至 0.23 美元的展望範圍，這主要是由於非 GAAP 表現出色和低於預期的轉型成本的相同原因。

Turning to margins on Slides 8 and 9. We continue to deliver significant margin expansion as we focus on profitable growth in Hybrid IT, shifting our portfolio towards higher-value, higher gross margin offerings and executing HPE Next initiatives. Gross margin of 32.2% was up 200 basis points year-over-year and up 110 basis points quarter-over-quarter, the fifth quarter of sequential expansion. Expanding gross margins is very important as it demonstrates that we have a rich portfolio of software-defined offerings of significant value to our customers.

關於幻燈片 8 和 9 的利潤率。隨著我們專注於混合 IT 的盈利增長，將我們的產品組合轉向更高價值、更高毛利率的產品並執行 HPE Next 計劃，我們將繼續實現顯著的利潤率增長。毛利率為 32.2%，同比增長 200 個基點，環比增長 110 個基點，連續擴張的第五個季度。擴大毛利率非常重要，因為它表明我們擁有豐富的軟件定義產品組合，對我們的客戶具有重要價值。

Non-GAAP operating margin of 8.9% was up 70 basis points year-over-year. As mentioned, HPE Next has enabled us to redirect investments back into the business, including a double-digit increase year-over-year in R&D to drive organic innovation.

非美國通用會計準則營業利潤率為 8.9%，同比增長 70 個基點。如前所述，HPE Next 使我們能夠將投資重新投入到業務中，包括研發同比實現兩位數增長，以推動有機創新。

Now turning to the segment and business unit, starting on Slide 10. In the Intelligent Edge, revenue was down 5% year-over-year. While we saw solid growth in EMEA and APJ, we underperformed in North America. We are taking action to address several improvement opportunities in our go-to-market execution and remain confident in the long-term growth opportunity for this business. Operating margins of 3% were down 490 basis points year-over-year due to ongoing investments in sales and R&D as part of our announced plan to invest $4 billion into the Intelligent Edge in 4 years. Our Aruba product declined 7% due to the execution issues just highlighted in North America and longer sales cycles at some customers. Despite these challenges, we feel very good about our Intelligent Edge strategy and are launching our next generation of WiFi 6 products that are just beginning to sell into the installed base and will ramp more significantly in the upcoming quarters.

現在轉向部門和業務部門，從幻燈片 10 開始。在智能邊緣，收入同比下降 5%。雖然我們看到 EMEA 和 APJ 的穩健增長，但我們在北美表現不佳。我們正在採取行動解決我們上市執行中的幾個改進機會，並對這項業務的長期增長機會保持信心。3% 的營業利潤率同比下降 490 個基點，這是由於我們在 4 年內向 Intelligent Edge 投資 40 億美元的計劃的一部分，持續對銷售和研發進行投資。我們的 Aruba 產品下降了 7%，原因是剛剛在北美突出顯示的執行問題以及一些客戶的銷售週期較長。儘管存在這些挑戰，我們對我們的 Intelligent Edge 戰略感到非常滿意，並且正在推出我們的下一代 WiFi 6 產品，這些產品剛剛開始銷售到已安裝的基礎上，並將在未來幾個季度大幅增加。

Aruba services was up 18% on continued installed base growth. We will continue to push high-margin Aruba services to represent a higher portion of Aruba's total revenue. This will be a source of continued gross margin expansion for us.

由於裝機量持續增長，Aruba 服務增長了 18%。我們將繼續推動高利潤的 Aruba 服務佔 Aruba 總收入的更高比例。這將是我們持續擴大毛利率的來源。

Moving on to Slide 11. In Hybrid IT, revenue was down 3% year-over-year but up 2%, excluding Tier 1 sales. Operating margins were 11.4%, up 140 basis points year-over-year at a 2-year high level. Similarly to edge, we saw some execution weakness in North America and some lengthening sales cycles that slowed our growth in the quarter. Compute revenue was down 4% but up 4%, excluding Tier 1. Most importantly, our higher-margin value compute business was up nearly 8%, contributing 120 basis points of growth to HPE.

轉到幻燈片 11。在混合 IT 中，收入同比下降 3%，但增長 2%，不包括一級銷售。營業利潤率為 11.4%，同比增長 140 個基點，創兩年新高。與 edge 類似，我們看到北美的一些執行弱點和一些延長的銷售週期減緩了我們在本季度的增長。計算收入下降了 4%，但上升了 4%，不包括第 1 層。最重要的是，我們利潤率較高的計算業務增長了近 8%，為 HPE 貢獻了 120 個基點的增長。

Storage revenue was up 5% year-over-year, which marks our eighth consecutive quarter of growth. This quarter, we saw particular strength in Nimble Storage, which grew 45% year-over-year. We have also seen significant margin expansion as our customers embrace our Intelligent storage offering. We have also made good progress installing InfoSight across 3PAR, which is now on approximately 1/3 of our installed base and is shipping on all units.

存儲收入同比增長 5%，這標誌著我們連續第八個季度實現增長。本季度，我們看到 Nimble Storage 特別強勁，同比增長 45%。隨著我們的客戶接受我們的智能存儲產品，我們也看到了顯著的利潤增長。我們在 3PAR 中安裝 InfoSight 也取得了良好的進展，現在大約占我們安裝基數的 1/3，並且在所有設備上發貨。

HPE Pointnext revenue declined 3% year-over-year driven by our continued intentional exit from low-margin countries in the Advisory and Professional Services business. As mentioned on earlier calls, this will become less dilutive as the year progresses. Our book-to-bill ratio was 1.12, which is an indicator of future revenue growth. Operational Services orders, including Nimble services orders, grew 1% in constant currency driven by growth in new attach to our higher-value offerings like Nimble and the increasing adoption of our Flexible Capacity offerings with GreenLake, which had its best quarter and was up 39% year-over-year.

HPE Pointnext 收入同比下降 3%，原因是我們繼續有意退出諮詢和專業服務業務的低利潤國家。正如之前的電話會議所提到的，隨著時間的推移，這將變得不那麼稀釋。我們的訂單出貨比為 1.12，這是未來收入增長的指標。運營服務訂單，包括 Nimble 服務訂單，按固定匯率計算增長了 1%，這是由於我們的高價值產品（如 Nimble）的新附加產品的增長以及越來越多地採用我們的 GreenLake 靈活容量產品的推動，GreenLake 的季度業績最好，增長了 39 ％ 一年又一年。

Moving to Slide 12. HPE Financial Services revenue was up 2% year-over-year in constant currency on strength in our higher-margin asset management business. Financing volume was down 6% year-over-year in constant currency mainly driven by our business with DXC. We ended the quarter with net portfolio assets of $13 billion, and loss ratios continued to be best-in-class at approximately 50 basis points. Operating margins increased 70 basis points year-over-year to 8.6%, and return on equity was a robust 15.6%.

移至幻燈片 12。HPE 金融服務收入按固定匯率計算同比增長 2%，這得益於我們利潤率較高的資產管理業務的強勁表現。按固定匯率計算，融資額同比下降 6%，主要受我們與 DXC 的業務推動。本季度末，我們的投資組合淨資產為 130 億美元，損失率繼續保持在同類最佳水平，約為 50 個基點。營業利潤率同比增長 70 個基點至 8.6%，股本回報率高達 15.6%。

Our Financial Services business continues to play a vital role unlocking value for our customers through our traditional leasing offerings, asset management services and flexible consumption offerings with GreenLake that we look to accelerate for years to come.

我們的金融服務業務繼續發揮著至關重要的作用，通過我們的傳統租賃產品、資產管理服務和我們希望在未來幾年加速發展的 GreenLake 靈活消費產品，為我們的客戶釋放價值。

Turning to cash flow on Slide 13. Free cash flow was seasonally very strong at $402 million in Q2. This is an improvement of more than $650 million versus the prior year driven by higher profitability, improved working capital management and lower onetime payments. Given our performance to date and based on our historical ramp-up in the second half of the year, we feel confident that we will achieve our full year outlook of $1.4 billion to $1.6 billion of free cash flow.

轉向幻燈片 13 上的現金流量。第二季度的自由現金流季節性非常強勁，達到 4.02 億美元。由於更高的盈利能力、改進的營運資本管理和更低的一次性付款，與上一年相比增加了超過 6.5 億美元。鑑於我們迄今為止的表現以及我們在今年下半年的歷史增長，我們相信我們將實現 14 億美元至 16 億美元的自由現金流的全年展望。

With respect to working capital, the cash conversion cycle was a negative 21 days in Q2 as inventory became a source of cash versus being a use of cash in the same period last year. Finally, as part of our continued $7 billion capital return plan through fiscal year '19, we returned $728 million to shareholders during the quarter. We paid $154 million in dividends and repurchased $574 million worth of shares in the quarter.

關於營運資金，第二季度的現金周轉週期為負 21 天，因為存貨成為現金來源，而去年同期是現金使用。最後，作為我們在 19 財年持續的 70 億美元資本回報計劃的一部分，我們在本季度向股東返還了 7.28 億美元。我們在本季度支付了 1.54 億美元的股息並回購了價值 5.74 億美元的股票。

As you can see from Slide 14, our balance sheet remains strong and we ended the quarter with an operating company net cash balance of $1.7 billion. Also, as a reminder, the vast majority of our debt is associated with a $13 billion book of net portfolio assets of our financing business. With approximately 50 basis points of bad debt as a percentage of average net receivables, the underwriting performance of HPEFS is best-in-class. As a result, the levels of cash support for HPEFS are minimal, which enables HPEFS to generate a high return on financial assets and double-digit returns on equity as mentioned before.

正如您從幻燈片 14 中看到的那樣，我們的資產負債表依然強勁，本季度末我們的運營公司淨現金餘額為 17 億美元。此外，提醒一下，我們的絕大部分債務都與我們融資業務的 130 億美元淨投資組合資產相關。壞賬占平均應收賬款淨額的百分比約為 50 個基點，HPEFS 的承保業績是一流的。因此，HPEFS 的現金支持水平極低，這使 HPEFS 能夠產生高金融資產回報率和前面提到的兩位數的股本回報率。

Now turning to our outlook on Slide 15. As a reminder, at SAM, we originally guided our non-GAAP FY '19 EPS outlook to be $1.51 to $1.61. Due to our strong non-GAAP EPS performance in Q1, we raised our full year EPS guidance by $0.05 to $1.56 to $1.66. With our continued outperformance in Q2, we are again raising our EPS guidance for the full year. We now expect to finish fiscal year '19 with non-GAAP diluted net earnings per share of $1.62 to $1.72, and we expect our fiscal year '19 GAAP diluted net earnings per share to be $0.98 to $1.08. This is now the sixth consecutive quarter that we are raising our non-GAAP EPS outlook.

現在轉向我們對幻燈片 15 的展望。提醒一下，在 SAM，我們最初指導我們的非 GAAP 19 財年每股收益預期為 1.51 美元至 1.61 美元。由於我們在第一季度的非 GAAP 每股收益表現強勁，我們將全年每股收益指引上調了 0.05 美元至 1.56 美元至 1.66 美元。憑藉我們在第二季度的持續出色表現，我們再次提高了全年的每股收益指引。我們現在預計 19 財年非 GAAP 攤薄後每股淨收益為 1.62 美元至 1.72 美元，我們預計 19 財年 GAAP 攤薄後每股淨收益為 0.98 美元至 1.08 美元。現在這是我們連續第六個季度上調我們的非 GAAP 每股收益預期。

For Q3 of fiscal year '19, we expect non-GAAP diluted net earnings per share of $0.40 to $0.44, and we expect GAAP diluted net earnings per share to be $0.29 to $0.33. So overall, while we have some work to do in North America sales execution, I am pleased that we continue to make progress against our strategy of shifting our portfolio towards profitable growth that will drive our free cash flow and ultimately, shareholder returns.

對於 19 財年第三季度，我們預計非 GAAP 攤薄後每股淨收益為 0.40 美元至 0.44 美元，我們預計 GAAP 攤薄後每股淨收益為 0.29 美元至 0.33 美元。因此，總的來說，雖然我們在北美銷售執行方面還有一些工作要做，但我很高興我們在將我們的投資組合轉向盈利增長的戰略方面繼續取得進展，這將推動我們的自由現金流並最終推動股東回報。

Now with that, let's open it up for questions.

現在，讓我們打開它來提問。

(Operator Instructions) Our first question comes from Katy Huberty from Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的 Katy Huberty。

First, just a couple clarifications on EPS in the quarter. What would be the net impact of shipping fewer units into China and then offset by the higher H3C earnings that flowed through OI&E? And similarly, what was the impact of onetime asset sales on EPS in the quarter? And then I have a follow-up.

首先，只是對本季度每股收益的一些澄清。減少運往中國的單位然後被流經 OI&E 的更高 H3C 收益所抵消的淨影響是什麼？同樣，一次性資產出售對本季度每股收益的影響是什麼？然後我有一個後續行動。

Hi, Katy. When you look at, overall, our business in China, you can look at Page 2 and see the contribution it makes from a revenue standpoint and what comes at the bottom by way of OI&E. What we explained today is that the revenue that comes from the products we sell through H3C is at preferential prices. And therefore, you can assume that, that revenue is relatively low gross margin. So from the top line side, the impact to EPS is practically negligible. Within the OI&E side, you do get the benefit of the equity interest that comes from H3C from selling their products in China, plus, of course, our products through their channels in China. And we received a pretty high equity interest in the quarter, but that was not the sole driver for outperformance in OI&E. There were other drivers there as well, such as currency hedges, one-off asset sales and of course, the contribution of our H3C business in China. So on the whole, it's a mix of factors that have driven up OI&E, and from the top line, the contribution to EPS growth is negligible.

嗨，凱蒂。總體而言，當您查看我們在中國的業務時，您可以查看第 2 頁，從收入的角度了解它所做的貢獻，以及通過 OI&E 在底部做出的貢獻。我們今天解釋的是，我們通過H3C銷售的產品所產生的收入是有優惠價格的。因此，您可以假設該收入的毛利率相對較低。因此，從收入方面來看，對 EPS 的影響幾乎可以忽略不計。在OI&E方面，你確實可以從H3C在中國銷售他們的產品中獲得股權，當然，我們的產品也可以通過他們在中國的渠道銷售。我們在本季度獲得了相當高的股權，但這並不是 OI&E 表現出色的唯一驅動因素。還有其他驅動因素，例如貨幣對沖、一次性資產出售，當然還有我們在中國的 H3C 業務的貢獻。因此，總的來說，這是推動 OI&E 上漲的多種因素，從收入來看，對 EPS 增長的貢獻可以忽略不計。

And what was the impact of the onetime asset sales in OI&E?

OI&E 的一次性資產出售有何影響？

Relatively, on an EPS standpoint, less than $0.01.

相對而言，從每股收益的角度來看，不到 0.01 美元。

Okay. And then just as a follow-up, given such strong free cash flow in the quarter, why not raise the full year and flow through that strength? I guess you knew you were going to get that question.

好的。然後作為後續行動，鑑於本季度如此強勁的自由現金流，為什麼不提高全年並通過這種力量流動？我想你知道你會得到那個問題。

Yes. It's pretty obvious. The thing -- let's remind ourselves of where we were on a free cash flow basis when we started this fiscal year. In the first quarter, we did flag that, for the first time, working capital would be a contributor to cash in this fiscal year as opposed to a use of cash. So in the performance, on a free cash flow basis, you have the 3 components: number one, the cash earnings, which are much stronger thanks to the improvement in gross margin and everything we've done from a cash earnings standpoint; number two, the working capital, which is a very important part of the free cash flow equation; and number three, we are having less transformation cost than originally anticipated. The guidance that we provided on free cash flow is sufficiently wide, $1.4 billion to $1.6 billion, and we're comfortable with that level of guidance at this stage. We may want to choose, during the course of the year, to calibrate some investments, and that's why we're not changing the guidance.

是的。這很明顯。事情 - 讓我們提醒自己，當我們開始本財政年度時，我們在自由現金流基礎上的位置。在第一季度，我們確實指出，營運資本將首次成為本財年現金的貢獻者，而不是現金的使用。因此，在業績方面，以自由現金流為基礎，你有 3 個組成部分：第一，現金收益，由於毛利率的提高以及我們從現金收益的角度所做的一切，現金收益要強勁得多；第二，營運資金，這是自由現金流方程式中非常重要的一部分；第三，我們的轉型成本低於原先預期。我們提供的自由現金流指導範圍足夠廣泛，從 14 億美元到 16 億美元，我們對現階段的指導水平感到滿意。我們可能希望在這一年中選擇調整一些投資，這就是我們不更改指南的原因。

Our next question comes from Shannon Cross from Cross Research.

我們的下一個問題來自 Cross Research 的 Shannon Cross。

I just wanted to understand a bit more of what's going on in North America with Aruba. It seems like a pretty abrupt change from a business that was doing pretty well and you were highlighting significantly. So I guess if you can give us any more color as to what went wrong and then the specific steps you're taking to improve the go-to-market.

我只是想更多地了解 Aruba 在北美髮生的事情。這似乎是一個非常突然的變化，與一個做得很好的企業相比，你非常突出。所以我想你是否可以給我們更多關於出了什麼問題的顏色，然後是你為改善上市而採取的具體步驟。

Yes. Thanks for the question, and good afternoon. Listen, we drove solid growth in EMEA and APJ, and we continue to see that momentum going. What we uncovered in North America was that the market dynamic and the demand shifted in different segments of the market and we had to make some quick adjustments on how we covered those markets where the growth is, understanding that now there is a transition on new technology with WiFi 6 and other software capabilities that we just introduced to the market. But at the core of this, Shannon, was nothing more than making sure our resources in covering the market are aligned where the growth is. And there was that. The second was the elongated sales cycles that we saw. And the third one was also the fact that as people assess what's going on here in North America, particularly with global trade, we saw these elongated cycles in the decision-making and, that had an impact on a few deals that shifted from Q2 to Q3. And so that come all together in a way that drove that decline in North America.

是的。謝謝你的提問，下午好。聽著，我們推動了 EMEA 和 APJ 的穩健增長，我們將繼續看到這種勢頭。我們在北美髮現的是市場動態和需求在市場的不同部分發生了變化，我們必須快速調整我們如何覆蓋那些增長的市場，了解現在新技術正在發生轉變具有我們剛剛推向市場的 WiFi 6 和其他軟件功能。但 Shannon 的核心無非是確保我們覆蓋市場的資源與增長點保持一致。就是這樣。第二個是我們看到的延長的銷售週期。第三個也是這樣一個事實，即當人們評估北美這裡發生的事情時，尤其是在全球貿易方面，我們看到了決策制定中的這些延長周期，這對從第二季度到第二季度的一些交易產生了影響Q3.因此，這一切以一種推動北美衰退的方式結合在一起。

But I am really, really confident, a, number one, we know exactly what it is and we have taken active actions to address it. Number two is the fact that our products and services are very differentiated, and we feel confident about that. But to be fair, we could have executed better in that specific segment of the business, and the good news, we know what to do and we have put in place the changes that are needed.

但我真的非常有信心，第一，我們確切地知道它是什麼，我們已經採取積極行動來解決它。第二，我們的產品和服務非常與眾不同，我們對此充滿信心。但公平地說，我們本可以在業務的特定部分執行得更好，好消息是，我們知道該怎麼做，並且我們已經實施了所需的變革。

Okay. And then, Tarek, can you talk a bit about the gross margin improvement, more on the operational side? I'm curious as to how much you think is sustainable, how much more you think you can do and, again, some of the specific things you're doing maybe within the supply chain to take cost out.

好的。然後，Tarek，你能談談毛利率的提高，更多是在運營方面嗎？我很好奇你認為有多少是可持續的，你認為你能做多少，再一次，你正在做的一些具體事情可能在供應鏈中降低成本。

Yes, certainly. So expanding gross margins is very important, and I'm glad that you're focusing on it. It demonstrates that we're not a commoditizing business, and there's a lot of richness in the portfolio of software-defined offerings we provide to our customers. The trends are very positive, and we expanded gross margins now for 5 quarters in a row. We're up to 32.2% in Q2, and this is up 200 basis points year-over-year and up 110 basis points sequentially, if I'm not mistaken. If you look at what has driven up the improvement, it is primarily pivoting the portfolio mix to higher revenue rich -- margin-rich revenue. That was 2/3 of the improvement in gross margin. And the remaining 1/3 came from supply chain efficiencies, the work we're doing with HPE Next, addressing manufacturing overhead and of course, lower commodity costs.

是的，當然了。所以擴大毛利率非常重要，我很高興你關注它。它表明我們不是一家商品化企業，我們為客戶提供的軟件定義產品組合非常豐富。趨勢非常積極，我們現在連續 5 個季度擴大了毛利率。我們在第二季度高達 32.2%，如果我沒記錯的話，這比去年同期增長了 200 個基點，環比增長了 110 個基點。如果你看看是什麼推動了改善，它主要是將投資組合轉向更高的收入——利潤豐厚的收入。這是毛利率提高的 2/3。剩下的 1/3 來自供應鏈效率，我們正在與 HPE Next 合作，解決製造開銷，當然還有降低商品成本。

So specifically, to your point, when you're asking about sustainability of that gross margin improvement, it is not prone entirely to commodity costs rising because the revenue mix is shifting to higher differentiated revenue streams that command a gross margin premium. And therefore, we feel very good about the upside we have in gross margin overall as we continue to accelerate the pivot of our portfolio towards revenues that are higher gross margin.

因此，具體來說，就您的觀點而言，當您詢問毛利率提高的可持續性時，它並不完全容易受到商品成本上升的影響，因為收入組合正在轉向要求毛利率溢價的更高差異化收入流。因此，隨著我們繼續加速將我們的投資組合轉向更高毛利率的收入，我們對整體毛利率的上升空間感到非常滿意。

Our next question comes from Toni Sacconaghi from Bernstein.

我們的下一個問題來自伯恩斯坦的 Toni Sacconaghi。

I think on your last earnings call, you had talked about an expectation that revenue growth would accelerate throughout the remainder of the year and that Aruba's growth would also accelerate throughout the year. And I hear you that things have changed, so I'm just trying to maybe dimension the magnitude. So based on your Aruba statement, it feels like you maybe missed Aruba by $60 million. You maybe missed your top line relative to that statement by $200 million or more. And so I guess I'm trying to understand, of that other $140 million, how much of that was something that you think got pushed out because deals didn't close and you'll get them back next quarter? Or how much of that is a reflection of weakening demand? And given that trade really only started to rear its head like on -- after the quarter closed into early May, is that a potential incremental concern or headwind for Q3? So maybe you can help me dimension sort of what the magnitude of kind of the levers that you expressed were in terms of the disappointment relative to your expectations, and then why don't some of them carry over if they're weaker demand and if we haven't really maybe seen the impact of trade hesitancy in full yet?

我想在你上次的財報電話會議上，你談到了對收入增長將在今年剩餘時間加速增長的預期，並且 Aruba 的增長也將在全年加速。我聽說你的情況發生了變化，所以我只是想確定幅度的大小。因此，根據您的 Aruba 聲明，感覺您可能錯過了 Aruba 6000 萬美元。相對於該聲明，您可能錯過了 2 億美元或更多的收入。所以我想我想知道，在另外 1.4 億美元中，你認為其中有多少是因為交易沒有完成而被推遲的，你會在下個季度收回它們？或者其中有多少是需求疲軟的反映？考慮到貿易真的才開始像在 5 月初的季度結束後那樣抬頭，這對第三季度來說是一個潛在的增量擔憂還是逆風？因此，也許你可以幫助我確定你所表達的槓桿類型的大小，這些槓桿在相對於你的期望的失望方面，然後如果它們是較弱的需求並且如果它們中的一些為什麼不結轉我們還沒有真正完全看到貿易猶豫的影響嗎？

Yes, Tony. Thanks for the question. So the market dynamics at the beginning of the quarter were certain that we felt we could accelerate. And at the end of the quarter, we saw a different story. Because, obviously, the uncertainty continued to be in the market, and as I said, that had an impact on elongated sales cycles, which translated in some deals shifting from Q2 to Q3. And those deals will come as we go along. Definitely, now we continue to drive solid growth against our strategic initiatives. And obviously, you saw some of the numbers we quoted, with Aruba services, and we quoted HCI and Composable Cloud and even GreenLake, which had the largest quarter ever. But no question that we could have executed better in some aspects of this, particularly on the, as we said just a minute ago, on the Aruba product in North America. But the reality, I cannot put a specific number associated with each of them, it was a combination of the market dynamics changing from the beginning of the quarter, some deals slipping to -- from Q2 to Q3 and then obviously, some execution aspects that we could have done better. And -- but we believe we have the handle on the execution challenges because they're in our control and we know exactly which segments of the market, and we have made or continue to make the changes.

是的，托尼。謝謝你的問題。因此，本季度初的市場動態肯定我們認為我們可以加速。在本季度末，我們看到了一個不同的故事。因為，顯然，不確定性繼續存在於市場中，正如我所說，這對延長的銷售週期產生了影響，這導致一些交易從第二季度轉移到第三季度。隨著我們的進展，這些交易將會到來。當然，現在我們繼續根據我們的戰略舉措推動穩健增長。顯然，您看到了我們引用的一些數字，包括 Aruba 服務，我們引用了 HCI 和 Composable Cloud，甚至是 GreenLake，這是有史以來最大的季度。但毫無疑問，我們本可以在這方面的某些方面表現得更好，特別是正如我們剛才所說的那樣，在北美的 Aruba 產品上。但現實是，我無法給出與每個交易相關的具體數字，這是市場動態從本季度開始發生變化的組合，一些交易下滑至 - 從第二季度到第三季度，然後很明顯，一些執行方面我們本可以做得更好。而且 - 但我們相信我們可以應對執行挑戰，因為它們在我們的控制之下，我們確切地知道市場的哪些部分，我們已經或繼續做出改變。

But our demand -- the demand for ever-growing amount of data and the pipeline that we have out there continue to reflect the fact that we actually will continue to deliver on our commitment to SAM, which is to grow the company and obviously grow the Intelligent Edge, which is, as I said in my opening remarks, is a big opportunity for the company. So overall, I think that's how I characterize this quarter. And there are things we have in our control and things that we are not in our control. But the pipeline, the fact that data continued to explode and the fact that we have this deal shifting from one quarter to the other give us the understanding and the confidence that we will execute as we go along.

但我們的需求——對不斷增長的數據量的需求以及我們現有的管道繼續反映出這樣一個事實，即我們實際上將繼續履行我們對 SAM 的承諾，即發展公司並顯然發展正如我在開場白中所說，智能邊緣對公司來說是一個巨大的機遇。總的來說，我認為這就是我對本季度的描述。有些事情是我們可以控制的，有些事情是我們無法控制的。但是管道，數據繼續爆炸的事實以及我們將這筆交易從一個季度轉移到另一個季度的事實讓我們理解並相信我們將在進行過程中執行。

Okay. Just to follow up. I was wondering if you could tell us what Operational Services revenue growth was in the quarter and what the Operational Services order growth rate was if we exclude Nimble because that's not part of how you define Operational Services as you report it. And you said last quarter that this good book-to-bill would help growth rate in Operational Services. When do you expect Operational Services to show positive growth?

好的。只是為了跟進。我想知道如果我們排除 Nimble，您是否可以告訴我們本季度運營服務收入增長情況以及運營服務訂單增長率是多少，因為這不是您在報告時定義運營服務的方式的一部分。你上個季度說，這種良好的訂單到賬單將有助於運營服務的增長率。您預計運營服務何時會出現正增長？

Okay, Toni. So overall, we feel good about the long-term opportunity and profitability of Pointnext. Revenue in Q2 was down 3% year-over-year mainly due to the continued exit of low-margin countries in the Advisory and Professional Services business. This will become less dilutive as the year progresses. Our book-to-bill ratio was 1.12, which is an indicator of future revenue growth. And in my script, I've indicated that, as GreenLake continues to grow, there is an elongation of the cycle that we could see for recognizing the revenues pertaining to Pointnext OS. And we need several quarters of a book-to-bill ratio at current levels to be seeing Pointnext OS Operational Services revenue growing.

好的，托尼。所以總的來說，我們對 Pointnext 的長期機會和盈利能力感到滿意。第二季度收入同比下降 3%，主要原因是諮詢和專業服務業務的低利潤率國家繼續退出。隨著時間的推移，這將變得不那麼稀釋。我們的訂單出貨比為 1.12，這是未來收入增長的指標。在我的腳本中，我已經指出，隨著 GreenLake 的持續增長，我們可以看到確認與 Pointnext OS 相關的收入的周期延長。我們需要幾個季度的當前水平的訂單出貨比才能看到 Pointnext OS 運營服務收入增長。

So when you look at this, what's important and what we do is we drive the book-to-bill ratio to be at or above current levels. We also drive Operational Services orders in Nimble. And when you take the combination of Operational Services orders plus the Nimble services orders, the combination grew 1% in constant currency as we have the tailwinds of new attach offerings across our portfolio. GreenLake is really the only on-prem consumption-driven offering in the market, and it was up 39% year-over-year, plus I think that we also announced the strategic partnerships with Google Cloud and Nutanix and this is to expand the GreenLake ecosystems for several quarters ahead of us. So we feel good about this. It will take us a bit of time. Maybe Antonio will want to...

因此，當您看到這一點時，重要的是我們所做的是將訂單出貨比提高到或高於當前水平。我們還在 Nimble 中推動運營服務訂單。當您結合運營服務訂單和 Nimble 服務訂單時，由於我們在整個產品組合中擁有新附加產品的順風，該組合以固定匯率計算增長了 1%。GreenLake 確實是市場上唯一以本地消費為導向的產品，同比增長 39%，而且我認為我們還宣布了與 Google Cloud 和 Nutanix 的戰略合作夥伴關係，這是為了擴大 GreenLake領先我們幾個季度的生態系統。所以我們對此感覺很好。這將花費我們一些時間。也許安東尼奧會想要...

Yes. No, just a couple of comments, Toni. So our book-to-bill ratio is what I'd really measure in going forward in each aspect of the portfolio because, obviously, when you are at these levels over time, depending on the mix of work that's booked, it will drive revenue growth. And if you look at our book-to-bill ratio in Q1, it was lower than Q2 even though it was above the revenue. So that means we are seeing an acceleration of the book-to-bill ratio quarter-over-quarter and year-over-year, and as that matures, it becomes in the balance sheet, over time, you're going to see that balance sheet translate into revenue.

是的。不，只是一些評論，Toni。因此，我們的訂單出貨比是我在投資組合的各個方面真正衡量的，因為很明顯，當你隨著時間的推移處於這些水平時，取決於預訂的工作組合，它將推動收入生長。如果你看一下我們第一季度的訂單出貨比，它低於第二季度，儘管它高於收入。因此，這意味著我們看到訂單出貨比環比和同比加速，隨著時間的推移，它會出現在資產負債表中，隨著時間的推移，你會看到資產負債表轉化為收入。

And the other thing, let's remind ourselves that GreenLake, while it has potentially a longer elongated cycle because of the way the revenue gets recognized, let's remind ourselves it has 100% attach rate of Operational Services. Every time you sell a GreenLake, it comes with the hardware and 100% attach of Operational Services. So as GreenLake grows, so grows our attach rate. And our attach rate gets recognized in the traditional way we recognize our deferred revenue for Operational Services. So that's why I'm very encouraged and very pleased with the performance of Operational Services, with the book-to-bill ratio and the GreenLake because that drives 100% attach rate.

另一件事，讓我們提醒自己，GreenLake，雖然由於收入確認的方式，它可能有更長的延長周期，但讓我們提醒自己，它有 100% 的運營服務附加率。每次您出售 GreenLake 時，它都會附帶硬件和 100% 附加的運營服務。因此，隨著 GreenLake 的增長，我們的附加率也會增長。我們的附加率以傳統方式得到確認，我們確認我們的運營服務遞延收入。因此，這就是為什麼我對運營服務的性能、訂單出貨比和 GreenLake 感到非常鼓舞和非常滿意，因為它推動了 100% 的附加率。

Our next question comes from Aaron Rakers from Wells Fargo.

我們的下一個問題來自富國銀行的 Aaron Rakers。

One question, one quick follow-up as well. First, on the server side of the market, I'm just curious of how you're currently seeing component pricing, particularly DRAM pricing, flow through the model, whether or not you've actively reduced your pricing or if you plan to do so going forward. And then kind of underneath of that, how do we think about unit growth within the server category? Is that -- when do we expect that to maybe trend to the positive?

一個問題，一個快速跟進。首先，在市場的服務器端，我只是想知道您目前如何看待組件定價，特別是 DRAM 定價，通過模型流動，您是否已經積極降低定價或者您是否打算這樣做所以繼續前進。然後在某種程度上，我們如何考慮服務器類別中的單位增長？那是——我們預計什麼時候可能會趨於積極？

Yes. Thanks for the question. So the overall commodity environment continued to be favorable, and there is an oversupply now compared to last year. As you recall, there were shortages and costs going up. The DRAM prices are down. But let's remind ourselves that, that does not translate in a lower AUP because, at the same time, we said our AUP is at 2/3 structural because more and more options in the form of memory and flash get attached to these units. And so we have talked about this before, the fact that units get sold with more and more options, even though the AUP of the components goes down, it does not translate in a lower AUP at the system level. And that's why, this quarter, we again grew our compute revenue by 4%, excluding Tier 1, obviously, which we are intentionally declining, and despite the decline on commodity cost. And that commodity cost takes time to find its way in the system. And I always make this analogy, is when the cost goes up, it's like when you take off with a plane, it goes up fast. When you land, the plane, it takes longer. And this is exactly the same way.

是的。謝謝你的問題。所以整體大宗商品環境繼續向好，與去年相比，現在供應過剩。正如您所記得的那樣，短缺和成本上升。DRAM 價格下降。但是讓我們提醒自己，這並不能轉化為較低的 AUP，因為與此同時，我們說我們的 AUP 處於 2/3 結構，因為越來越多的內存和閃存形式的選項連接到這些單元。因此，我們之前已經討論過這一點，即售出的單元有越來越多的選擇，即使組件的 AUP 下降，也不會轉化為系統級別的 AUP 降低。這就是為什麼本季度我們的計算收入再次增長了 4%，顯然不包括我們有意減少的第 1 層，儘管商品成本有所下降。而商品成本需要時間才能在系統中找到它的位置。我總是做這個類比，當成本上升時，就像你乘坐飛機起飛時，它會快速上升。當你著陸時，飛機需要更長的時間。這是完全相同的方式。

And because our unique portfolio in the compute, because we have probably one of the richest portfolios in terms of, what I call, volume and value, and in value, we have probably the most complete in terms of mission-critical, in terms of in-memory solutions, HPC, obviously, and things like Blade and Composable, we have a unique mix that drives higher-value AUPs and higher attach. So it will take a long time to get these numbers, the lower cost in the system AUP. But at the same time, more and more options will get attached.

而且因為我們在計算方面的獨特產品組合，因為我們可能擁有最豐富的產品組合之一，我稱之為數量和價值，以及價值，我們可能在關鍵任務方面擁有最完整的產品組合，就內存解決方案，顯然是 HPC，以及 Blade 和 Composable 之類的東西，我們有一個獨特的組合，可以推動更高價值的 AUP 和更高的附加。所以獲取這些數字需要很長時間，在系統 AUP 中成本較低。但與此同時，越來越多的選項將被附加。

The second part of the question was about the units, and now we are in the very low single-digit declines. And as we said before, by the end of the year, we believe this is going to be a nonevent. And from there on, obviously, as we continue to drive this pivot to the higher-value products and services, particularly on the product side, we're going to see growth in that. And we are starting to see the momentum in some of these areas, like a quarter, right, so Composable Cloud, 78%, High Performance Compute continued to be very strong, another 25% growth. And obviously, as we close the Cray transaction, that will add more to it, the larger, larger amount of scale of units because these are big amount of systems. And then obviously, the Hyper Converged infrastructure as well, which, at the core, is a compute platform with a bunch of storage attached to it.

問題的第二部分是關於單位的，現在我們處於非常低的個位數下降。正如我們之前所說，到今年年底，我們相信這將是一件小事。從那時起，很明顯，隨著我們繼續推動這種轉向更高價值的產品和服務，特別是在產品方面，我們將看到這方面的增長。我們開始看到其中一些領域的勢頭，比如一個季度，對，所以可組合雲，78%，高性能計算繼續非常強勁，又增長了 25%。很明顯，當我們關閉 Cray 交易時，這將增加更多，更大、更大的單位規模，因為這些是大量的系統。然後很明顯，超融合基礎設施也是如此，它的核心是一個計算平台，上面附有一堆存儲。

That's perfect. And a quick follow-up. You mentioned in the call that you obviously have this put option from the H3C asset. I think at 15x trailing 12-month net income that actually equates to a relatively large number. So I'm curious of how you think about evaluating that put option relative to the strategic nature of that relationship or how you just think about that with that now being on the table.

那很完美。並進行快速跟進。您在電話中提到您顯然擁有 H3C 資產的看跌期權。我認為 15 倍的 12 個月淨收入實際上相當於一個相對較大的數字。所以我很好奇你是如何考慮相對於這種關係的戰略性質來評估看跌期權的，或者你是如何考慮現在擺在桌面上的。

Yes. Look, it's important to realize that China is a very critical market for us. It's the largest and fastest-growing IT market in the world. And we have a unique structure there with a fully operational business that makes money. And it's a structure that not many Western companies can actually claim they have. Starting May 19, we can exercise that put option to sell part or all of our 49% stake. And if you take the minimum of the put value at 15x trailing 12-month net earnings, you get to the figures that you have in mind. But it's important to understand the contribution of H3C to the overall profit pool that UNIS, which is a listed company in China, is actually generating. And what is that contribution of UNIS underneath H3C on a [niche] unit alongside the other entities that UNIS has, and I invite you to just take a look at this and you will form your own view as to the value of our puts and what it represents for us.

是的。看，重要的是要認識到中國對我們來說是一個非常重要的市場。它是世界上最大、增長最快的 IT 市場。我們在那裡擁有獨特的結構，擁有全面運營的盈利業務。而且這種結構並沒有多少西方公司能夠真正聲稱自己擁有。從 5 月 19 日開始，我們可以行使該看跌期權，出售我們 49% 的部分或全部股份。如果您將看跌期權價值的最小值設為 15 倍的 12 個月淨收益，您就會得到您想要的數字。但重要的是要了解 H3C 對中國上市公司 UNIS 實際產生的整體利潤池的貢獻。H3C 下的 UNIS 與 UNIS 擁有的其他實體一起在 [利基] 單位上的貢獻是什麼，我邀請你看看這個，你會對我們看跌期權的價值形成自己的看法，以及它代表我們。

So let me add a comment around this. I mean obviously, there is a financial aspect of this and then there is the strategic aspect of this. We are incredibly pleased with this relationship and the setup in China, and it has proven to be very important and critical in the times we are living today because we can participate in the second-largest market, growing faster than any other market. And so we are actually collecting the benefits of that growth in a unique setup that shows up in our EPS growth, as we talked earlier. And obviously, we have to assess a couple of things, right, how that market evolves and how we participate in the market, ultimately, what is the source of a potential use of that cash to continue to drive the growth in the company. Right now, as we said in our opening remarks, we have no intent to sell the put option. But as always, we will continue to evaluate what is the best for the company, for our shareholders, understanding what's going on in that market and understanding how we continue to participate.

因此，讓我對此添加評論。我的意思是很明顯，這有一個財務方面，然後是這個的戰略方面。我們對這種關係和在中國的設置感到非常滿意，事實證明，這在我們今天生活的時代非常重要和關鍵，因為我們可以參與第二大市場，增長速度比任何其他市場都快。因此，正如我們之前所說，我們實際上是在一個獨特的設置中收集這種增長的好處，這種設置顯示在我們的 EPS 增長中。顯然，我們必須評估幾件事，對，市場如何發展以及我們如何參與市場，最終，潛在使用現金以繼續推動公司增長的來源是什麼。現在，正如我們在開場白中所說，我們無意出售看跌期權。但一如既往，我們將繼續評估什麼對公司、對我們的股東是最好的，了解那個市場正在發生什麼，並了解我們如何繼續參與。

So we're coming up on the bottom of the hour. So I think we have time for just one more question, please.

所以我們即將結束。所以我想我們還有時間再問一個問題。

And our final question today comes from Jim Suva from Citi Investment Research.

我們今天的最後一個問題來自花旗投資研究部的 Jim Suva。

I have one question, and it's probably the CEO and CFO both want to chime in on it. But it appears that, on this conference call, you were a lot more vocal about the H3C operations, put options, especially the put options have been in the past. And maybe I'm just hearing that a little bit different, but it seems like you're a lot more vocal about that. Why is that? Is that because of the China-U. S. friction? Or is that because of perhaps a lot of the guide and beat was due to this other income line? Or how should we think about -- it appears to be a change in the verbalization around this line item on your income statement.

我有一個問題，可能是首席執行官和首席財務官都想插話。但在這次電話會議上，您似乎對 H3C 的運營、看跌期權，尤其是過去的看跌期權直言不諱。也許我只是聽到了一點點不同，但你似乎更直言不諱了。這是為什麼？是因為中美。S.摩擦？還是因為很多指導和節拍是由於這條收入線？或者我們應該如何考慮——這似乎是您損益表中圍繞此行項目的措辭發生了變化。

Thanks for the question. I think we felt that it was a need to provide more clarity and education on our setup. Honestly, as I go back and listen to the type of questions and so forth, we felt we probably haven't done a good job explaining this setup and the value of this unique relationship. That's why we decided to show it to you. It has nothing to do with the U.S.-China relationship. It had to do to how we drive value for shareholders, and we believe this is driving significant value for shareholders. But we didn't explain it to the extent that Tarek did today because we felt we didn't do a good job before. So that's why we are bringing it up. And it just happened at the same time with everything going on in China. Now probably, people are thinking, well, maybe that setup is unique and is more valuable in the context of what we see. But really, it was all about educating you in understanding this setup in the context of the valuation and the value we drive for our shareholders. And I thought Tarek did a very good job explaining that because it's very unique. We don't see anything out there like this. Tarek, I don't know if you want to add anything else.

謝謝你的問題。我認為我們覺得有必要為我們的設置提供更多的清晰度和教育。老實說，當我回去聽取問題類型等等時，我們覺得我們可能沒有很好地解釋這種設置和這種獨特關係的價值。這就是我們決定向您展示它的原因。這與美中關係無關。這與我們如何為股東創造價值有關，我們相信這會為股東帶來巨大的價值。但我們沒有像今天塔雷克那樣解釋，因為我們覺得我們以前做得不好。這就是我們提出它的原因。它與中國發生的一切同時發生。現在人們可能在想，嗯，也許這種設置是獨一無二的，並且在我們所看到的情況下更有價值。但實際上，這一切都是為了教育你在估值和我們為股東創造的價值的背景下理解這種設置。我認為 Tarek 很好地解釋了這一點，因為它非常獨特。我們在外面看不到這樣的東西。Tarek，我不知道你是否還想補充什麼。

Oh, absolutely. I will simply add that this is -- at the beginning of this month, this is the first time where we can exercise the put option. And that's the reason why we talked to you about it today.

哦，當然。我只想補充一點，這是 - 在本月初，這是我們第一次可以行使看跌期權。這就是我們今天與您談論它的原因。

Great. Thank you, Jim. I think with that, we can close up the call. I know there is a heavy earnings schedule today, so I appreciate everybody who joined us, and we'll look forward to talking to you next time. Thank you.

偉大的。謝謝你，吉姆。我想這樣，我們就可以結束通話了。我知道今天的收益計劃很繁重，所以我感謝所有加入我們的人，我們期待下次與您交談。謝謝。

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

女士們，先生們，我們今天的呼籲到此結束。謝謝。