是德科技 (KEYS) 2018 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Keysight Technologies Fiscal Third Quarter 2018 Earnings Conference Call.

女士們先生們，美好的一天，歡迎參加是德科技 2018 財年第三季度收益電話會議。

My name is Krista, and I will be your lead operator today.

我叫 Krista，今天我將擔任你們的首席接線員。

(Operator Instructions) Please note that this call is being recorded today, Tuesday, August 21, 2018, at 1:30 p.m.

（操作員說明）請注意，此通話將於今天（2018 年 8 月 21 日，星期二）下午 1:30 進行錄音。

Pacific Time.

太平洋時間。

I would now like to hand the conference over to Jason Kary, Vice President, Treasurer and Investor Relations.

我現在想將會議交給財務主管和投資者關係副總裁 Jason Kary。

Please go ahead, Mr. Kary.

請繼續，卡里先生。

Thank you, and welcome, everyone, to Keysight's Third Quarter Earnings Conference Call for Fiscal Year 2018.

謝謝大家，歡迎大家參加是德科技 2018 財年第三季度收益電話會議。

Joining me are Ron Nersesian, Keysight President and CEO; and Neil Dougherty, Keysight Senior Vice President and CFO.

加入我行列的是是德科技總裁兼首席執行官 Ron Nersesian；是德科技高級副總裁兼首席財務官 Neil Dougherty。

Joining us in the Q&A session will be Mark Wallace, Senior Vice President of Worldwide Sales and Satish Dhanasekaran, President of the Communications Solutions Group.

全球銷售高級副總裁 Mark Wallace 和通信解決方案集團總裁 Satish Dhanasekaran 將加入我們的問答環節。

You can find the press release and information to supplement today's discussion on our website at investor.keysight.com.

您可以在我們的網站 investor.keysight.com 上找到新聞稿和信息以補充今天的討論。

While there, please click on the link for quarterly reports under the financial information tab.

在那裡，請單擊財務信息選項卡下的季度報告鏈接。

There, you'll find an investor presentation along with Keysight's segment results.

在那裡，您會看到投資者介紹以及是德科技的部門業績。

Following this conference call, we will post a copy of the prepared remarks to the website.

在本次電話會議之後，我們將在網站上發布準備好的評論副本。

Today's comments by Ron and Neil will refer to non-GAAP financial measures.

Ron 和 Neil 今天的評論將提及非 GAAP 財務措施。

We will also make references to core growth, which excludes the impact of currency movements as well as revenue from acquisitions or divestitures completed within the last 12 months.

我們還將參考核心增長，其中不包括貨幣變動的影響以及過去 12 個月內完成的收購或剝離帶來的收入。

You will find the most directly comparable GAAP financial metrics and reconciliations on our website.

您將在我們的網站上找到最直接可比的 GAAP 財務指標和對賬。

We will make forward-looking statements about the financial performance of the company on today's call.

我們將在今天的電話會議上就公司的財務業績做出前瞻性陳述。

These statements are subject to risks and uncertainties and are only valid as of today.

這些聲明受風險和不確定性的影響，僅在今天有效。

The company assumes no obligation to update them.

公司不承擔更新它們的義務。

Please review the company's recent SEC filings for a more complete picture of our risks and other factors.

請查看公司最近向美國證券交易委員會提交的文件，以更全面地了解我們的風險和其他因素。

I would also note that management is scheduled to present at the Citi Global Technology Conference on September 5 in New York and the Deutsche Bank Technology Conference on September 12 in Las Vegas.

我還要指出，管理層計劃出席 9 月 5 日在紐約舉行的花旗全球技術會議和 9 月 12 日在拉斯維加斯舉行的德意志銀行技術會議。

We hope to see many of you there.

我們希望在那裡見到你們中的許多人。

And now, I'd like to turn the call over to Ron.

現在，我想把電話轉給羅恩。

Thank you, Jason, and thank you all for joining us.

謝謝你，傑森，感謝大家加入我們。

We delivered an outstanding third quarter with both revenue and earnings far exceeding the high end of our guidance.

我們交付了出色的第三季度，收入和收益都遠遠超過了我們指導的高端。

Today, I'll focus my formal comments on 3 key headlines for the quarter.

今天，我將把我的正式評論集中在本季度的 3 個主要頭條新聞上。

First, revenue grew 17% or 15% on a core basis to reach a record $1 billion.

首先，收入在核心基礎上增長了 17% 或 15%，達到創紀錄的 10 億美元。

We achieved this growth while also delivering 45% year-over-year EPS growth, which is a new record for Keysight.

我們實現了這一增長，同時還實現了 45% 的每股收益同比增長，這是是德科技的新紀錄。

Second, customers continue to make strong R&D investments in next-generation technologies, and we continue to achieve differentiation and momentum across multiple end markets with our solutions.

其次，客戶繼續對下一代技術進行大量研發投資，我們繼續通過我們的解決方案在多個終端市場實現差異化和發展勢頭。

Keysight orders also grew to over $1 billion, and both core revenue and orders grew double digits for the second consecutive quarter.

是德科技的訂單也增長到超過 10 億美元，核心收入和訂單連續第二個季度實現兩位數增長。

And third, we are raising our core outlook for the year.

第三，我們提高了今年的核心展望。

We now expect 2018 core revenue growth to be approximately 11%, which is an increase from our prior estimate of 7% to 8%.

我們現在預計 2018 年核心收入增長約為 11%，高於我們之前估計的 7% 至 8%。

Now let's take a deeper look into our performance for the quarter.

現在讓我們更深入地了解我們本季度的表現。

We have achieved earnings of $0.89 per share, which was $0.12 above the midpoint and $0.07 above the high end of our guidance.

我們實現了每股 0.89 美元的收益，比中點高出 0.12 美元，比我們的指導上限高出 0.07 美元。

This represents 45% year-over-year earnings growth.

這代表著 45% 的同比收益增長。

We also delivered outstanding order growth for this quarter and reached a new Q3 record.

我們還實現了本季度出色的訂單增長，並創下了第三季度的新紀錄。

Orders grew 15% in total to surpass $1 billion.

訂單總額增長 15%，超過 10 億美元。

On a core basis, which excludes currency as well as acquisitions or divestitures completed within the last 12 months, orders grew 12%.

在排除貨幣以及過去 12 個月內完成的收購或資產剝離的核心基礎上，訂單增長了 12%。

This is our fourth consecutive quarter of double-digit core order growth and the second quarter out of the last 4 quarters with orders above $1 billion.

這是我們連續第四個季度實現兩位數的核心訂單增長，也是過去 4 個季度中訂單超過 10 億美元的第二個季度。

Our continued strong order growth has translated into record revenue results.

我們持續強勁的訂單增長已轉化為創紀錄的收入結果。

Q3 revenue grew 17% or 15% on a core basis to also surpass $1 billion.

第三季度的核心收入增長了 17% 或 15%，也超過了 10 億美元。

Broad-based demand and investments in emerging technologies drove double-digit order growth for our solutions in commercial communications, aerospace, defense and government, automotive and energy, semiconductor and services.

對新興技術的廣泛需求和投資推動了我們在商業通信、航空航天、國防和政府、汽車和能源、半導體和服務領域的解決方案訂單實現兩位數增長。

Our technology leadership solutions and industry-focused approach continues to advance our footprint in key end markets undergoing technology transformations.

我們的技術領先解決方案和以行業為中心的方法繼續擴大我們在經歷技術轉型的關鍵終端市場的足跡。

We are seeing excellent adoption of our solutions within marquee Keysight customers.

我們看到我們的解決方案在眾多 Keysight 客戶中得到了很好的採用。

Additionally, we are adding new customers at a rapid rate.

此外，我們正在快速增加新客戶。

In total, we have added close to 2,000 new direct customers so far this year.

今年到目前為止，我們總共增加了近 2,000 名新的直接客戶。

This quarter, we saw a very strong 23% revenue growth in our commercial communications end market.

本季度，我們在商業通信終端市場看到了 23% 的非常強勁的收入增長。

Broad 5G-related R&D investment continues to increase across the wireless ecosystem, which includes chipsets, devices, networks and infrastructure.

廣泛的 5G 相關研發投資在整個無線生態系統中持續增加，其中包括芯片組、設備、網絡和基礎設施。

Our early engagement with the market leaders and our advanced portfolio of 5G R&D solutions continue to strengthen Keysight's leadership position in 5G.

我們與市場領導者的早期合作以及我們先進的 5G 研發解決方案組合繼續鞏固是德科技在 5G 領域的領導地位。

In Q3, this translated to triple-digit 5G order growth.

在第三季度，這轉化為三位數的 5G 訂單增長。

We have the broadest array of 5G solutions on the market today and continue to see strength globally for our 5G program.

我們擁有當今市場上最廣泛的 5G 解決方案，並繼續在全球範圍內看到我們 5G 計劃的實力。

We are engaged with lead operators around the world such as NTT DOCOMO in their 5G deployment process.

我們在 5G 部署過程中與 NTT DOCOMO 等全球主要運營商進行了合作。

This quarter, our Ixia Solutions Group, along with our Nemo Solutions team from the Anite acquisition secured key design wins for our leading-edge RAN and core network solutions for 5G, which is just another example of our differentiated portfolio of solutions.

本季度，我們的 Ixia Solutions Group 以及收購 Anite 的 Nemo Solutions 團隊贏得了我們領先的 RAN 和 5G 核心網絡解決方案的關鍵設計，這只是我們差異化解決方案組合的另一個例子。

Speaking of Ixia, we were pleased with Ixia's improved revenue performance after our extensive integration activities last quarter.

說到 Ixia，我們很高興 Ixia 在上個季度進行了廣泛的整合活動後提高了收入表現。

We are continuing to make good progress in optimizing the business, and we have a healthy pipeline of opportunities.

我們在優化業務方面繼續取得良好進展，並且我們擁有大量機會。

Ixia was also seeing increased 400G activity.

Ixia 還看到了 400G 活動的增加。

Our recent announced AresONE high-density 400-gig Ethernet test solution won Best of Show at Interop, Tokyo, and is gaining strong interest from customers.

我們最近發布的 AresONE 高密度 400-gig 以太網測試解決方案贏得了東京 Interop 的最佳展示獎，並引起了客戶的強烈興趣。

Automotive and energy is another area where we continue to see strength in the quarter, delivering our seventh consecutive quarter of double-digit order growth in Q3.

汽車和能源是我們在本季度繼續保持強勁勢頭的另一個領域，在第三季度連續第七個季度實現兩位數的訂單增長。

Demand was driven by broad strength across all regions, expansion within our top customers and wins with new accounts in the quarter.

需求受到所有地區的廣泛實力、我們頂級客戶的擴張以及本季度贏得新客戶的推動。

Major automotive OEMs and Tier 1 suppliers continue to aggressively invest across a broad set of automotive electronic applications.

主要汽車原始設備製造商和一級供應商繼續積極投資於廣泛的汽車電子應用。

This is driving growth for both R&D applications and the associated solutions supporting high-value manufacturing test.

這推動了研發應用和支持高價值製造測試的相關解決方案的增長。

In the aerospace, defense and government end market, we delivered double-digit order growth for the fourth consecutive quarter and increased revenue by 22%.

在航空航天、國防和政府終端市場，我們連續第四個季度實現兩位數的訂單增長，收入增長 22%。

In the quarter, we saw a strong worldwide demand across the aerospace and defense supply chain, including space, satellite, radar and electronic warfare applications.

在本季度，我們看到整個航空航天和國防供應鏈的全球需求強勁，包括太空、衛星、雷達和電子戰應用。

Looking forward, in this end market, we are seeing some headwinds in China from growing trade tensions, but expect them to be offset by growing demand in the rest of the world.

展望未來，在這個終端市場，我們看到貿易緊張局勢加劇給中國帶來了一些不利因素，但預計這些因素將被世界其他地區不斷增長的需求所抵消。

In the U.S., the defense budget for 2019 was passed last week.

在美國，上週通過了 2019 年的國防預算。

We expect to benefit from the year-over-year budget stability as well as the significant increases in U.S. spending for research, development, test and evaluation.

我們預計將受益於同比預算穩定以及美國在研究、開發、測試和評估方面支出的顯著增加。

Across our end markets, software and services are key components of the value creation we delivered to customers.

在我們的終端市場，軟件和服務是我們為客戶提供的價值創造的關鍵組成部分。

In the third quarter, revenue for our software solutions grew double digits.

第三季度，我們軟件解決方案的收入增長了兩位數。

We continue to see increased demand in next-generation technology design as the complexity of that design increases and design cycles accelerate.

隨著設計複雜性的增加和設計週期的加快，我們繼續看到對下一代技術設計的需求增加。

Our long-term strategy to drive growth in services is also yielding results.

我們推動服務業增長的長期戰略也正在取得成果。

Services orders grew double digits, and revenue grew 9% year-over-year, driven by calibration, remarketed solutions and repair.

在校準、再營銷解決方案和維修的推動下，服務訂單增長了兩位數，收入同比增長 9%。

Customer success in providing leading-edge technology, solutions and insights is at the core of Keysight's leadership model.

客戶在提供領先技術、解決方案和見解方面取得成功是是德科技領導模式的核心。

The growth we have achieved over the past several quarters would not have been possible without our commitment to innovation and the continued targeted investments we have made over the past several years.

如果沒有我們對創新的承諾和我們在過去幾年中持續進行的有針對性的投資，我們在過去幾個季度取得的增長是不可能的。

We have significantly strengthened our technology leadership in key areas of the market undergoing multiyear transformations and growth trends.

我們在經歷多年轉型和增長趨勢的關鍵市場領域顯著加強了我們的技術領先地位。

We will continue to focus our investments in these key growth areas to drive innovation, create even more value for our customers and outgrow the market.

我們將繼續專注於這些關鍵增長領域的投資，以推動創新，為我們的客戶創造更多價值並超越市場。

Lastly, we have an amazing team at Keysight and I thank them for their commitment to both our company and our customers.

最後，是德科技擁有一支出色的團隊，我感謝他們對我們公司和客戶的承諾。

Attracting and fostering and retaining top talent across the globe as well as creating a culture of diversity and inclusion will be contributing factors to our future success.

吸引、培養和留住全球頂尖人才以及營造多元化和包容性的文化將是我們未來成功的重要因素。

Demonstrating KLM in action this quarter, I would highlight the career comeback program we have in Malaysia where our largest manufacturing facility is located along with a sizable R&D center.

在展示荷航本季度的行動時，我要強調我們在馬來西亞的職業回歸計劃，我們最大的製造工廠位於馬來西亞，還有一個規模龐大的研發中心。

I am proud to say that through this program we have a growing number of mothers who have returned to the workforce bringing their expertise to the company in various areas, including electrical engineering, software development, human resources and supply chain.

我很自豪地說，通過這個項目，我們有越來越多的母親重返工作崗位，將她們在各個領域的專業知識帶到公司，包括電氣工程、軟件開發、人力資源和供應鏈。

We look forward to sharing with you the success of the Keysight Leadership Model in the quarters and years to come.

我們期待在未來幾個季度和幾年內與您分享是德科技領導力模型的成功。

I will now turn it over to Neil to discuss our financial performance and outlook in more detail.

我現在將把它交給尼爾更詳細地討論我們的財務業績和前景。

Thank you, Ron, and hello, everyone.

謝謝你，羅恩，大家好。

Before I get started, I will note that all comparisons are on a year-over-year basis unless specifically noted otherwise.

在開始之前，我會指出所有比較都是按年比較，除非另有特別說明。

As Ron mentioned, we delivered an exceptional quarter as we continue to execute on the strong demand we see in core areas of our business.

正如 Ron 所提到的，隨著我們繼續執行我們在核心業務領域看到的強勁需求，我們交付了一個出色的季度。

Additionally, our continued focus, execution and commitment to operational discipline is delivering record results for Keysight.

此外，我們對運營紀律的持續關注、執行和承諾正在為是德科技帶來創紀錄的成果。

For the third quarter of 2018, we delivered record non-GAAP revenue of $1 billion, which was well above our guidance of $942 million to $972 million.

2018 年第三季度，我們實現了創紀錄的 10 億美元非 GAAP 收入，遠高於我們 9.42 億美元至 9.72 億美元的預期。

In Q3, we also delivered $1 billion in orders, which were up 15% with core orders growing 12%, enabling us to exit the quarter in a solid backlog position.

在第三季度，我們還交付了 10 億美元的訂單，增長了 15%，其中核心訂單增長了 12%，使我們能夠以穩固的積壓狀態退出本季度。

Looking at our operational results for Q3, we reported gross margin of 61.2% and operating expenses of $402 million, resulting in operating margin of 21.3%, which is the highest level in Keysight's history.

從我們第三季度的運營結果來看，我們報告的毛利率為 61.2%，運營費用為 4.02 億美元，運營利潤率為 21.3%，這是是德科技歷史上的最高水平。

We also achieved record net income of $170 million and delivered $0.89 in earnings per share, which was up 45%.

我們還實現了創紀錄的 1.7 億美元淨收入，每股收益為 0.89 美元，增長了 45%。

Our weighted average diluted share count for the quarter was 191 million shares.

我們本季度的加權平均稀釋股數為 1.91 億股。

Moving to the performance of our segments.

轉向我們細分市場的表現。

Our Communications Solutions Group, or CSG, generated total revenue of $515 million, up 23%, while delivering gross margin of 61.7% and operating margin of 22.2%.

我們的通信解決方案集團 (CSG) 的總收入為 5.15 億美元，增長 23%，毛利率為 61.7%，營業利潤率為 22.2%。

In Q3, commercial communications delivered revenue of $314 million, up 23%, driven by increased 5G R&D demand across the wireless ecosystem and growth in data center next-generation 400-gig and high-speed digital test.

在第三季度，商業通信實現收入 3.14 億美元，增長 23%，這主要受整個無線生態系統 5G 研發需求增加以及數據中心下一代 400-gig 和高速數字測試增長的推動。

Aerospace, defense and government grew 22% and generated revenue of $201 million.

航空航天、國防和政府部門增長了 22%，創造了 2.01 億美元的收入。

As Ron mentioned, aerospace, defense and government growth was robust with strong demand across the aerospace defense supply chain, including space, satellite, radar and electric -- electronic warfare applications.

正如 Ron 提到的那樣，航空航天、國防和政府增長強勁，整個航空航天國防供應鏈的需求強勁，包括太空、衛星、雷達和電力-電子戰應用。

Our Electronic Industrial Group, or EISG, generated third quarter revenue of $258 million, up 19%, driven by strength across all of its markets, automotive and energy, semiconductor and general electronics.

我們的電子工業集團 (EISG) 第三季度收入為 2.58 億美元，增長 19%，這得益於其在汽車和能源、半導體和通用電子等所有市場的實力。

EISG reported gross margin of 63.1% and operating margin of 28.5%.

EISG 報告毛利率為 63.1%，營業利潤率為 28.5%。

Our Ixia Solutions Group, or ISG, reported Q3 revenue of $119 million, gross margin of 75.6% and operating margin of 8.1%.

我們的 Ixia 解決方案集團 (ISG) 報告第三季度收入為 1.19 億美元，毛利率為 75.6%，營業利潤率為 8.1%。

We were pleased with ISG's improved revenue performance after our extensive integration activities last quarter.

我們對 ISG 在上個季度進行廣泛的整合活動後改善的收入表現感到滿意。

We continue to focus on optimizing processes in several key areas and are confident in our ability to grow the business and increase profitability.

我們繼續專注於優化幾個關鍵領域的流程，並對我們發展業務和提高盈利能力的能力充滿信心。

Lastly, Services Solutions Group, or SSG, revenue grew 9% in Q3 to reach $116 million, while delivering 40.1% gross margin and operating margin of 15.0%.

最後，服務解決方案集團 (SSG) 第三季度的收入增長了 9%，達到 1.16 億美元，毛利率為 40.1%，營業利潤率為 15.0%。

Q3 services revenue was driven by growth for calibration, remarketed solutions and repair.

第三季度服務收入是由校準、再營銷解決方案和維修的增長推動的。

Moving to the balance sheet and cash flow.

轉向資產負債表和現金流量。

We ended our third quarter with $742 million in cash and cash equivalents and reported cash flow from operations of $38 million and free cash flow of negative $2 million.

我們在第三季度末擁有 7.42 億美元的現金和現金等價物，報告的運營現金流為 3800 萬美元，自由現金流為負 200 萬美元。

This includes accelerated funding of our U.S. pension plan in the amount of $85 million in order to secure tax deductibility at the current corporate rate prior to the new tax legislation taking effect.

這包括加速為我們的美國養老金計劃提供 8500 萬美元的資金，以確保在新稅法生效之前以當前的公司稅率減稅。

Excluding this accelerated payment, free cash flow was $83 million, which represents 8% of revenue.

不包括這筆加速付款，自由現金流為 8300 萬美元，佔收入的 8%。

Under our existing share repurchase authorization during the quarter, we acquired approximately 668,000 shares on the open market at an average price of $59.81 for a total consideration of $40 million.

根據本季度現有的股票回購授權，我們在公開市場上以平均 59.81 美元的價格收購了約 668,000 股股票，總對價為 4000 萬美元。

Before moving to our guidance, I would like to make a few additional comments about the potential impact on our business from trade tensions between the U.S. and China.

在轉向我們的指導之前，我想就中美貿易緊張局勢對我們業務的潛在影響發表一些額外的評論。

We currently estimate that the expense impact from the announced tariffs is still relatively immaterial.

我們目前估計，宣布的關稅對費用的影響仍然相對較小。

We're also closely monitoring the potential impact of these tensions on our aerospace and defense business in China, which we currently estimate at $10 million to $15 million per quarter.

我們還在密切關注這些緊張局勢對我們在中國的航空航天和國防業務的潛在影響，我們目前估計每季度 1000 萬至 1500 萬美元。

As Ron mentioned, we believe this will be offset by the strong demand trends we are seeing in the rest of the world aerospace defense market.

正如 Ron 所提到的，我們相信這將被我們在世界其他地區的航空航天防禦市場看到的強勁需求趨勢所抵消。

Now turning to our outlook and guidance.

現在轉向我們的展望和指導。

We expect fourth quarter revenue to be in the range of $1,000,000,000 to $1,020,000,000 and Q4 earnings per share to be in the range of $0.85 to $0.91 based on a weighted diluted share count of approximately 191 million shares.

我們預計第四季度收入將在 1,000,000,000 美元至 1,020,000,000 美元之間，根據約 1.91 億股的加權稀釋後每股收益，第四季度每股收益將在 0.85 美元至 0.91 美元之間。

At the midpoint, this brings our earnings growth for 2018 to 23% and total revenue growth to approximately 19% or 11% on a core basis, which is an increase from our prior estimate of 7% to 8%.

在中點，這使我們 2018 年的盈利增長達到 23%，總收入增長達到約 19% 或 11%，高於我們之前估計的 7% 至 8%。

Additionally, for the year, we expect to deliver a year-over-year core operating margin incremental at or above our 40% target.

此外，今年，我們預計核心營業利潤率同比增幅將達到或超過我們 40% 的目標。

With that, I will now turn it back to Jason for the Q&A.

有了這個，我現在將把它轉回 Jason 進行問答。

Thank you, Neil.

謝謝你，尼爾。

Krista, will you please give the instructions for the Q&A?

Krista，你能給出問答的說明嗎？

(Operator Instructions) And the first question comes from the line of Joseph Wolf with Barclays.

（操作員說明）第一個問題來自巴克萊銀行的約瑟夫·沃爾夫。

This is Peter Zdebski on for Joseph.

這是約瑟夫的彼得茲德布斯基。

Circling back to 400G, I recall, last quarter, you had said that you were starting to see some manufacturing activity in addition to just the R&D.

回到 400G，我記得，上個季度，你曾說過，除了研發之外，你還開始看到一些製造活動。

Has that firmed up a bit?

是不是堅定了一點？

Can you quantify that a little bit?

你能量化一下嗎？

This is Satish, I'll take that.

這是薩蒂什，我會接受的。

We continue to see more activity in R&D, both in the U.S. and rest of the world.

我們繼續看到美國和世界其他地區的研發活動越來越多。

Manufacturing, early manufacturing is starting, but at this point, we believe that most of the big manufacturing ramps are out in the 2019 time frame.

製造，早期製造正在開始，但在這一點上，我們認為大多數大型製造坡道都在 2019 年的時間框架內結束。

Okay.

好的。

And just one follow-up.

只有一個後續行動。

Could you give us a sense of how much of the growth that you're seeing from 5G?

您能告訴我們您從 5G 中看到了多少增長嗎？

How much of that is flowing into SSG in terms of the recurring services that will be -- that will occur post-installation, if you will?

就將要發生的經常性服務而言，其中有多少流入 SSG，如果您願意的話？

Yes, the 5G growth numbers we're reporting are only the 5G revenues that reflected within the Communications Solutions Group and they do not reflect any services business at this point in time.

是的，我們報告的 5G 增長數字只是反映在通信解決方案集團內的 5G 收入，目前並不反映任何服務業務。

Right, would -- but would that be along the same lines as your other businesses once it's sort of rolled out?

是的，會——但是一旦它推出後，它會和你的其他業務一樣嗎？

Yes.

是的。

That's running at roughly the same ratios where the equipment that's used for 5G is repaired and calibrated just as all the other equipment we sell for 3G or 4G or other technologies.

這與用於 5G 的設備維修和校準的比率大致相同，就像我們為 3G 或 4G 或其他技術銷售的所有其他設備一樣。

So it's a pretty standard ratio at this point.

所以在這一點上這是一個非常標準的比率。

And your next question comes from the line of Vijay Bhagavath with Deutsche Bank.

你的下一個問題來自德意志銀行的 Vijay Bhagavath。

So my question is around 5G in particular and then I have a follow-up for Neil.

所以我的問題特別是關於 5G，然後我要跟進 Neil。

The 5G question would be, I mean, Verizon in particular quite affirmative on big plans at 5G broadband.

5G 問題是，我的意思是，Verizon 對 5G 寬帶的大計劃特別肯定。

I mean, they announced in Indianapolis recently.

我的意思是，他們最近在印第安納波利斯宣布了這一消息。

So as we fast forward into next year, Ron, would some of this order strength start cooling off as service providers like Verizon get into production or not really?

因此，隨著我們快進到明年，Ron，隨著像 Verizon 這樣的服務提供商投入生產，一些訂單強度是否會開始降溫？

I mean, that's kind of the most frequently asked question from clients.

我的意思是，這是客戶最常問的問題。

Thank you, Vijay.

謝謝你，維杰。

Let me take this one.

讓我拿這個。

I think you know our -- we have shared our strategy to really work with the entire ecosystem, all the way from chipsets to data centers and that's kind of the flow that we've been following.

我想你知道我們的 - 我們已經分享了我們真正與整個生態系統合作的戰略，從芯片組到數據中心，這就是我們一直遵循的流程。

And what we see that's really resulting in these results is: number one, very strong industry acceleration, not only from the operator you referenced, but multiple lead operators globally, so that's the first sort of driver; second, with the standards just finalizing the release 15 version of it, we've seen unleashing of about 673 entries of new features and over 866 band combinations.

我們看到真正導致這些結果的是：第一，非常強勁的行業加速，不僅來自您提到的運營商，而且來自全球多個領先運營商，所以這是第一種驅動因素；其次，隨著標準剛剛完成其第 15 版，我們已經看到釋放了大約 673 個新功能條目和超過 866 個波段組合。

You combine these things together, we're going to be in R&D phase for a long time to come, okay?

你把這些東西結合在一起，我們將在很長一段時間內處於研發階段，好嗎？

Now I'll answer the question you just mentioned.

下面我來回答你剛才提到的問題。

There are some early sort of signs of manufacturing.

有一些早期的製造跡象。

In fact, in this quarter, we had our first design win in manufacturing, also, to support some of the trial initiatives of our key customers.

事實上，在本季度，我們在製造領域獲得了第一個設計勝利，同時也支持我們主要客戶的一些試驗計劃。

Very helpful.

很有幫助。

Quick follow on for Neil.

快速跟進尼爾。

Things are going well, Neil.

事情進展順利，尼爾。

So how would you keep OpEx in check and in control?

那麼，您將如何控制 OpEx？

So I'd point to our business model where we have over time worked very hard to increase the flexibility and the portion of our dollars that are discretionary, and it's our job to manage that.

因此，我要指出我們的商業模式，隨著時間的推移，我們非常努力地提高靈活性和可自由支配的美元部分，而管理它是我們的工作。

And as we mentioned on the call, we expect to deliver the 40% operating margin incremental for this year and feel like we are well positioned from that standpoint going forward.

正如我們在電話會議上提到的那樣，我們預計今年將實現 40% 的營業利潤率增量，並且從這個角度來看，我們覺得我們處於有利地位。

And as you saw, just to wrap up, at our Analyst Day in March, obviously, we put our targets for 2021 where we're looking to increase the overall level of profitability in the business to 23% by that period of time.

正如你看到的那樣，在 3 月份的分析師日上，我們顯然設定了 2021 年的目標，我們希望到那時將業務的整體盈利水平提高到 23%。

So we do have work to do to drive that incremental level of profitability, but those actions are well underway.

因此，我們確實需要努力提高盈利水平，但這些行動正在進行中。

As we look through our budgeting process, we just don't go ahead and layer on what our top line revenue growth is and then add more expenses.

當我們審視我們的預算過程時，我們只是不繼續並在我們的收入增長的基礎上分層，然後增加更多的費用。

We go through a process that we're in the middle of, right now, we call it, zero-based budgeting where we start at the floor and we say, okay, what are the most important things to move the needle from where we're today to where we want to get to in the future.

我們正在經歷一個過程，現在，我們稱之為零基預算，我們從基層開始，然後我們說，好吧，最重要的事情是什麼，可以從我們的位置移動針頭今天到達我們未來想要到達的地方。

And that prioritizes our expenses, making sure that we have a good ROI at either being defensive or being offensive, which is our top priority.

這會優先考慮我們的支出，確保我們在防禦或進攻方面有良好的投資回報率，這是我們的首要任務。

So by doing that, we're able to go ahead and continually improve the operating model and hit the 2021 targets.

因此，通過這樣做，我們能夠繼續前進並不斷改進運營模式並實現 2021 年的目標。

And your next question comes from the line of Jim Suva with Citi.

你的下一個問題來自花旗銀行的 Jim Suva。

In your prepared comments, you made some comments about the U.S. China some tariffs, some costs, some demand offsets.

在你準備好的評論中，你對美國中國的一些關稅、一些成本、一些需求抵消發表了一些評論。

Can you just give a little bit more details or help us better understand kind of what you're building in?

您能否提供更多細節或幫助我們更好地了解您正在構建的內容？

And again, walk me through the costs and the savings and the offsets there again?

再一次，讓我再次了解成本、節省和補償嗎？

So yes, I'll take that.

所以是的，我會接受的。

This is Mark Wallace.

這是馬克華萊士。

So just to reiterate a couple of the points that were made at the -- in the prepared statements from Ron and Neil.

因此，我想重申 Ron 和 Neil 在準備好的聲明中提出的幾點。

So far, as we've looked at the tariffs that have been announced, the impacts are very small, immaterial.

到目前為止，當我們查看已宣布的關稅時，影響非常小，無關緊要。

And separate from that, the trade tensions are -- and the restrictions are principally affecting our aerospace defense business in China.

除此之外，貿易緊張局勢——這些限制主要影響我們在中國的航空航天防禦業務。

And as Neil mentioned, based on the current situation, we estimate that impact to be $10 million to $15 million per quarter.

正如尼爾所說，根據目前的情況，我們估計每個季度的影響為 1000 萬至 1500 萬美元。

Now if you take a step back, and I think Ron mentioned this as well, the strength of our aerospace defense business globally is very strong, and we feel like the rest of the world will offset this impact to China.

現在，如果你退後一步，我想羅恩也提到了這一點，我們在全球的航空航天防禦業務實力非常強大，我們覺得世界其他地區將抵消這種對中國的影響。

This is our fourth quarter in a row of double-digit order growth.

這是我們連續第四個季度實現兩位數的訂單增長。

And we continue to see increased investments around the world, especially the U.S. As Ron mentioned, the U.S. DoD bill, the Defense Appropriation Bill, has been signed before the beginning of the new fiscal year.

我們繼續看到世界各地的投資增加，尤其是美國。正如羅恩提到的，美國國防部法案，即國防撥款法案，已在新財政年度開始前簽署。

I think this is the first time that's happened in more than 20 years.

我認為這是 20 多年來第一次發生這種情況。

And our overall business in aerospace defense remains very broad from satellite to MilCom radio test to electronic warfare and radar test.

我們在航空航天防禦領域的整體業務仍然非常廣泛，從衛星到 MilCom 無線電測試再到電子戰和雷達測試。

So it's a very large market, and it's a growing market that we're playing a big role in.

所以這是一個非常大的市場，這是一個我們正在發揮重要作用的不斷增長的市場。

And then finally, back to China, just for a moment, we continue to actively monitor the situation and despite the trade tensions, our business in China continues to be strong and broad.

最後，回到中國，暫時，我們繼續積極監測局勢，儘管貿易緊張，我們在中國的業務仍然強勁而廣泛。

We delivered solid double-digit revenue and order growth in Q3, and we're continuing to win in China with our differentiated solutions for 5G, for automotive, for semiconductor, et cetera.

我們在第三季度實現了兩位數的穩健收入和訂單增長，我們將繼續憑藉我們在 5G、汽車、半導體等領域的差異化解決方案在中國取勝。

And we are not just taking a look at the advancements in the U.S. and their actual budgets going forward and picking up, obviously, growth on that front, but even in China, what we're doing is we're redeploying some of our sales force to focus where there is business.

我們不僅關注美國的進步和他們未來的實際預算，而且顯然在這方面有所增長，但即使在中國，我們正在做的是重新部署我們的一些銷售力集中在有業務的地方。

So we dynamically allocate our resources to optimize our overall China business inside and outside of aerospace defense, and we're capitalizing on the U.S. and our friendly neighbors that are increasing their aerospace defense budgets.

因此，我們動態分配資源以優化我們在航空航天防禦內外的整體中國業務，並且我們正在利用美國和我們正在增加航空航天防禦預算的友好鄰國。

And as Mark mentioned, not only do we expect to see a traditionally seasonally high September, or end of this fiscal year, the budget is already in place for 2019, which we haven't seen in decades.

正如馬克所提到的，我們不僅預計 9 月或本財政年度結束時會出現傳統的季節性高潮，而且 2019 年的預算已經到位，這是我們幾十年來從未見過的。

And then my follow-up is on Ixia and the integration.

然後我的後續工作是關於 Ixia 和集成。

Is it fully integrated?

它是完全集成的嗎？

Or kind of what of, say, the top handful of things have been done?

或者說，已經完成了一些最重要的事情？

And what are the top handful of things are still yet to come?

還有哪些最重要的事情尚未發生？

Yes, we talked about our big integration efforts last quarter, obviously, moving them into our ERP, shifting them from their legacy contract manufacturing into Keysight's contract manufacturing environment.

是的，我們在上個季度談到了我們的重大整合工作，顯然，將它們轉移到我們的 ERP 中，將它們從傳統的合同製造轉移到是德科技的合同製造環境中。

Those -- the heavy lifting on those things is done.

那些 - 這些事情的繁重工作已經完成。

We have been working first to stabilize and reramp the business, and we're very pleased with results that we got this quarter.

我們一直在努力穩定和重新調整業務，我們對本季度取得的成果感到非常滿意。

Obviously, we saw approximately $30 million increase sequentially in revenue.

顯然，我們看到收入連續增加了大約 3000 萬美元。

We saw 16 percentage point improvement in operating margins.

我們看到營業利潤率提高了 16 個百分點。

But we're not satisfied with the overall level of profitability in that business.

但我們對該業務的整體盈利水平並不滿意。

We're continuing to work on that.

我們正在繼續努力。

We have additional profit improvement plan for this quarter as we continue to make progress in the -- optimizing the operation of that business within the Keysight environment.

隨著我們在 Keysight 環境中優化該業務的運營方面繼續取得進展，我們為本季度製定了額外的利潤改善計劃。

And your next question comes from the line of Brandon Couillard with Jefferies.

你的下一個問題來自 Jefferies 的 Brandon Couillard。

Ron, just at a high level, I mean, seeing incredible broad-based strength sort of across the business.

羅恩，我的意思是，只是在高層次上，看到了整個企業令人難以置信的廣泛實力。

How much the growth would you sort of attribute to underlying end markets getting better versus Keysight gaining share and some of the things you may be doing on the new product front or the commercial side where you're just in the right places at the right time?

您將增長多少歸因於基礎終端市場的改善與是德科技的份額增加以及您可能在新產品方面所做的一些事情或您在正確的時間出現在正確的地方的商業方面？

Sure.

當然。

Well, I think it's a mix.

好吧，我認為這是一個混合體。

The first thing that we did when we were forming the company even before we went public was to identify where are the growth opportunities and let's put our resources where there is strength in the markets.

甚至在我們上市之前，我們在組建公司時所做的第一件事就是確定增長機會在哪裡，讓我們把我們的資源放在市場上有實力的地方。

And accordingly, we focused on 5G, we focused on automotive and energy, we also focused on building out our services business and the list goes on.

因此，我們專注於 5G，我們專注於汽車和能源，我們還專注於建立我們的服務業務，並且清單還在繼續。

So I think we've done a good job of picking the markets that actually have a higher secular growth rate relative to the other broader electronic measurement markets.

因此，我認為我們在挑選相對於其他更廣泛的電子測量市場實際具有更高長期增長率的市場方面做得很好。

On top of that, from what we can see, we believe very strongly that we are gaining share with our 11% organic revenue growth this year and much, much higher when you look at our total revenue growth.

最重要的是，從我們所看到的情況來看，我們非常堅信，我們今年的有機收入增長了 11%，而且當您查看我們的總收入增長時，我們的份額要高得多。

So we also, if you take a look at the core growth that we reported versus some of the other players, I think our core growth really shows the underlying strength of the business.

所以我們也，如果你看看我們報告的核心增長與其他一些參與者的對比，我認為我們的核心增長確實顯示了業務的潛在實力。

So Brandon, it is a mix of the 2. The markets are strong, but we have taken Keysight to a point where we are outgrowing the market without a doubt compared to a time when we were with Agilent and where we were not and the investments that we put in place are providing great returns all the way to the bottom line.

所以布蘭登，它是兩者的結合。市場很強勁，但我們已經把是德科技帶到了這樣一個地步，與我們在安捷倫和我們不在的時候以及投資相比，我們毫無疑問地超越了市場我們採取的措施一直在為底線提供豐厚的回報。

And then I realized it may be a little bit early to start talking about fiscal '19 at this point, but any preliminary views you can sort of share with us in terms of how you're thinking about the top line growth next year?

然後我意識到現在開始談論 19 財年可能還為時過早，但是關於您如何考慮明年的收入增長，您可以與我們分享任何初步觀點嗎？

I mean, on one hand, you'll be lapping tougher comps, but you should be lapping easier comps at the Ixia businesses, assuming it continues to rebound on a quarter-over-quarter basis?

我的意思是，一方面，你將獲得更艱難的競爭，但你應該在 Ixia 業務中獲得更容易的競爭，假設它繼續在季度環比基礎上反彈？

I mean, how do we think about fiscal '19 relative to your longer-term model of 4% to 5%?

我的意思是，相對於你的 4% 到 5% 的長期模型，我們如何看待 19 財年？

Is it reasonable that, that might be even a little bit better than the long-term model?

這是否合理，甚至可能比長期模型好一點？

Yes, Brandon, it's a great question.

是的，布蘭登，這是一個很好的問題。

Obviously, we're very pleased with the high-level of growth that we put up this year, 11% core growth for the year, and as you mentioned, that is going to present some stronger comps for us as we go into FY '19.

顯然，我們對今年實現的高水平增長感到非常滿意，今年核心增長率為 11%，正如您所提到的，這將在我們進入財政年度時為我們帶來一些更強勁的業績 ' 19.

Now as we look at that though, we still -- we are still seeing continued strength in many of our end markets, 5G, automotive, services, software are all areas that continue to put up strong numbers.

不過，現在我們來看，我們仍然——我們仍然看到我們的許多終端市場持續走強，5G、汽車、服務、軟件都是繼續保持強勁數字的領域。

We've mentioned some of the areas that we're monitoring being the China trade situation, the continued strength in semi that feels like it has to cool off at some point.

我們已經提到了我們正在監測的一些領域是中國貿易形勢，半導體的持續強勢感覺它必須在某個時候降溫。

We're not seeing that as of where we're today.

就我們今天所處的位置而言，我們還沒有看到這一點。

I think as we look forward to FY '19, I do feel like we are in a stretch with the market help where there is opportunities for some upside to that 4% to 5% long-term model.

我認為，在我們期待 19 財年的時候，我確實覺得我們在市場幫助下處於緊張狀態，4% 到 5% 的長期模型有一些上行空間。

And your next question comes from the line of Adam Thalhimer with Thompson, Davis.

你的下一個問題來自 Adam Thalhimer 和 Thompson, Davis 的台詞。

Congrats on a great quarter.

祝賀一個偉大的季度。

Thanks, Adam, and welcome.

謝謝，亞當，歡迎。

Thanks for joining us.

感謝您加入我們。

I think this is your first call with us.

我認為這是您第一次與我們通話。

Yes, sir.

是的先生。

Yes.

是的。

I wanted to ask first just high level.

我想先問高水平。

Can you talk a little bit about expectations for orders in Q4?

你能談談對第四季度訂單的預期嗎？

Because I know you're starting to come up against these tougher comps Q4 last year, particularly in communications?

因為我知道你去年第四季度開始遇到這些更強硬的對手，特別是在通信方面？

We don't report orders.

我們不報告訂單。

Or we don't -- excuse me, we don't guide orders going forward.

或者我們不——對不起，我們不指導未來的訂單。

You could take a look at what we guided for revenue that we believe is pretty strong.

你可以看看我們認為收入非常強勁的指導方針。

As you notice this quarter, our book-to-bill was approximately 1.00 or we delivered that $0.89 EPS and that revenue growth without even eating into our backlog.

正如您在本季度注意到的那樣，我們的訂單出貨比約為 1.00，或者我們交付了 0.89 美元的每股收益和收入增長，甚至沒有消耗我們的積壓訂單。

So we're very, very pleased with where we're now.

所以我們對我們現在所處的位置非常非常滿意。

We haven't seen our order rate slow down relative to our revenue growth rate.

我們還沒有看到我們的訂單率相對於我們的收入增長率有所放緩。

There is a slight difference in numbers.

數字略有不同。

So you get a slight different percentage, but overall we've been running basically with orders and revenues equal to 1.

所以你得到的百分比略有不同，但總的來說，我們基本上一直在運行訂單和收入等於 1。

Okay.

好的。

And then I wanted to ask, the EISG margins were really solid in the quarter, can you provide any thoughts on what drove that and perhaps touch on sustainability of that trend?

然後我想問，本季度 EISG 的利潤率真的很穩固，您能否就推動這一趨勢的因素提供任何想法，並可能觸及該趨勢的可持續性？

Yes, so this is Neil.

是的，這就是尼爾。

I mean, obviously, the biggest driver of that was the top line trends within EISG.

我的意思是，顯然，其中最大的驅動力是 EISG 內部的頂級趨勢。

The R&D investments within EISG are lower than in some of our other businesses.

EISG 內部的研發投資低於我們其他一些業務。

But we're seeing broad-based strength across auto and energy, general electronics, semiconductor measurement, and so we are able to get a high degree of leverage in that business when it is growing at these levels.

但我們在汽車和能源、通用電子、半導體測量領域看到了廣泛的實力，因此當它在這些水平上增長時，我們能夠在該業務中獲得高度的槓桿作用。

And I will add that, if you look at the 3 markets that we break down, which is auto and energy, the general electronics and semiconductors, all 3 of them had double-digit revenue growth.

我要補充一點，如果你看看我們細分的三個市場，即汽車和能源、通用電子產品和半導體，這三個市場的收入都實現了兩位數的增長。

So that's very strong when we have very, very solid management of that P&L as we do in the other businesses, and therefore, we can certainly drive it to the bottom line.

因此，當我們像其他業務一樣對 P&L 進行非常、非常可靠的管理時，這是非常強大的，因此，我們當然可以將其推向底線。

The semiconductor business has higher margins and that was 1 of the 3 businesses that had higher -- high revenue growth in double digits.

半導體業務的利潤率更高，這是 3 個業務中的一個——兩位數的高收入增長。

Your next question comes from the line of Richard Eastman with Baird.

你的下一個問題來自 Richard Eastman 與 Baird 的對話。

Ron, could you maybe just speak for a second to Ixia?

Ron，你能不能和 Ixia 說幾句話？

When I look at the revenue number, certainly, year-over-year, it looks like the business is now stable from a revenue perspective.

當我查看收入數字時，當然，與去年同期相比，從收入的角度來看，業務現在似乎很穩定。

I'm curious a little bit around order growth there.

我對那裡的訂單增長有點好奇。

And also, is the tone of the business now that you have it integrated, stable revenue.

而且，既然你已經整合了它，那麼它的業務基調就是穩定的收入。

Should we start to think about getting to that targeted mid-single-digit growth rate in '19 for Ixia?

我們是否應該開始考慮在 19 年為 Ixia 實現目標中個位數增長率？

I'm going to let Mark Wallace make a couple of comments, but you're exactly right, Rick.

我要讓馬克華萊士發表一些評論，但你是完全正確的，里克。

We have -- the integration has stabilized that business.

我們已經 - 整合穩定了該業務。

There was a lot of work at moving contract manufacturers, of getting these whole sales channel integrated, so they work with Mark Wallace's broader channel, and we're very pleased with where that is right now.

移動合同製造商需要做很多工作，整合整個銷售渠道，所以他們與 Mark Wallace 更廣泛的渠道合作，我們對現在的情況感到非常滿意。

Our funnel is very strong, and we did see an increase in the actual conversion rate of our funnel from Q2 to Q3, and we're expecting that to continue and to improve more, but I'll let Mark make a couple more comments.

我們的漏斗非常強大，我們確實看到從第二季度到第三季度漏斗的實際轉化率有所增加，我們期待這種情況繼續下去並進一步改進，但我會讓馬克再多說幾句。

Sure.

當然。

Thanks, Ron.

謝謝，羅恩。

Hi, Rick.

嗨，里克。

Ron covered a lot of it.

羅恩涵蓋了很多。

We've made great progress since we spoke last in the business and optimizing our whole sales operational process.

自從我們上次談到業務並優化我們的整個銷售運營流程以來，我們取得了很大進展。

We were very pleased with the increase in the funnel conversion during Q3, and we expect to see that continue even further in Q4.

我們對第三季度漏斗轉化率的增加感到非常高興，我們希望看到第四季度繼續增加。

We had some really important wins, one of which was mentioned in the prepared statements with NTT DOCOMO.

我們取得了一些非常重要的勝利，其中之一在與 NTT DOCOMO 的準備好的聲明中提到。

We introduced some new products around 400-gigabit Ethernet test, which -- one of which we won Best in Show at Interop in Tokyo.

我們推出了一些圍繞 400 吉比特以太網測試的新產品，其中之一我們在東京的 Interop 上贏得了最佳展示獎。

And our funnel is stronger than it's been in many, many quarters.

而且我們的漏斗比許多季度都更強大。

So the outlook is good.

所以前景還是不錯的。

We continue to see strong demand for 400G.

我們繼續看到對 400G 的強勁需求。

Like the wireless business, 5G is a big opportunity for us in the future, and again, I'm very excited about where we are with the optimization of our integration and sales and the very healthy funnel as we go into Q4.

與無線業務一樣，5G 對我們未來來說是一個巨大的機遇，我再次對我們在進入第四季度時優化集成和銷售以及非常健康的漏斗所處的位置感到非常興奮。

Okay.

好的。

It is -- will volume play a role?

它是 - 體積會發揮作用嗎？

This maybe sounds -- face value sounds like a funny question, but will volume play a role as you move forward in this margin because I know we have work to do on the margin line, but I'm wondering how much of that work that we need to do yet is around cost and efficiency versus just pure volume?

這聽起來可能——面值聽起來是個有趣的問題，但隨著你在這個邊際中前進，成交量會發揮作用嗎，因為我知道我們在邊際線上還有很多工作要做，但我想知道有多少工作要做我們需要做的是圍繞成本和效率而不是單純的體積？

Pure volume, you're exactly right, Rick, is really the issue.

純粹的音量，你說得對，瑞克，這才是真正的問題所在。

If you take a look at this, we've had very high gross margins, and we have a fixed amount of expenses.

如果你看一下這個，我們的毛利率非常高，而且我們的費用是固定的。

So once we start ramping the revenue, the fixed expenses will stay relatively fixed and you'll be able to see that flow-through right to the bottom line and get great incrementals.

因此，一旦我們開始增加收入，固定支出將保持相對固定，您將能夠看到直接流向底線並獲得巨大的增量。

Okay.

好的。

And just as a follow-up.

並作為後續行動。

Ron, could you perhaps may be just size on an annualized basis maybe the software business?

羅恩，你能不能只是按年計算軟件業務的規模？

And I'm curious, with the growth we've seen in that business, is that being pulled along or driven by 5G or automotive or any particular vertical?

我很好奇，隨著我們在該業務中看到的增長，它是被 5G 或汽車或任何特定垂直行業拉動或推動的嗎？

Well, there is no doubt that software is used more and more in many of the applications that we address.

嗯，毫無疑問，軟件在我們處理的許多應用程序中的使用越來越多。

We go ahead and we acquire signals, but then you have to analyze them and now with our most recent oscilloscope that we have launched, we literally make a trillion measurements per second, or we sample at a trillion measurements a second, or 256 billion precision measurements a second times 4 channels.

我們繼續並獲取信號，但隨後您必須分析它們，現在使用我們推出的最新示波器，我們實際上每秒進行一萬億次測量，或者我們每秒進行一萬億次測量，或 2560 億次精度第二次測量 4 個通道。

So as that data comes off, software is the only way to analyze that.

因此，當數據出現時，軟件是分析它的唯一方法。

We do some of that software within chips or in firmware or in pure software.

我們在芯片或固件或純軟件中做一些軟件。

But if I take a look at the overall business, in FY '17, it was over $500 million in software.

但如果我看一下整體業務，在 17 財年，軟件業務超過 5 億美元。

Now as we look in this year, this quarter, we're running obviously significantly above that and that's even without Ixia.

現在，正如我們在今年、本季度所看到的那樣，我們的運行速度明顯高於該水平，甚至在沒有 Ixia 的情況下也是如此。

And when we add Ixia software in and we're going to be doing -- adding that to our total number, but we just want to make sure that we break out the products that are, let's say, half hardware and half software and do that correctly, you'll see that number go up and up.

當我們添加 Ixia 軟件時，我們將要做的——將其添加到我們的總數中，但我們只是想確保我們打破了產品，比方說，一半是硬件，一半是軟件，然後做如果正確，您會看到該數字不斷上升。

But there is no doubt, 5G drives software as well as many of our other applications.

但毫無疑問，5G 驅動軟件以及我們的許多其他應用程序。

That business is growing, and we like that, not only for increased margins, but we also like that for potential recurring revenue in long term.

該業務正在增長，我們喜歡這一點，不僅是因為利潤率增加，而且我們也喜歡長期潛在的經常性收入。

And your next question comes from the line of Brandon Couillard with Jefferies.

你的下一個問題來自 Jefferies 的 Brandon Couillard。

Just a couple of follow-ups.

只是一些後續行動。

Neil, the service margins were down a little bit year-over-year despite the top line growth.

尼爾，儘管收入增長，但服務利潤率同比略有下降。

Are you making some specific investments there around capabilities, anything, you know, color you can share with us?

你是否圍繞能力進行了一些具體的投資，你知道，任何你可以與我們分享的顏色？

As we've discussed at this business in the past, our original thought was we were going to be able to make some significant acquisitions, smaller ones, but a number of them in this business to increase the growth rate.

正如我們過去在該業務中所討論的那樣，我們最初的想法是我們將能夠進行一些重大的收購，較小的收購，但其中一些是為了提高增長率。

We have since pivoted to a more organic growth strategy, which does require investment.

從那以後，我們轉向了更有機的增長戰略，這確實需要投資。

You're starting to see that hit the top line over the past several quarters, and we are confident on our ability to increase the profitability in this business likely into the upper teens is where we think it ultimately settles.

你開始看到在過去幾個季度中達到了頂線，我們相信我們有能力將這項業務的盈利能力提高到十幾歲以上，這是我們認為最終解決的問題。

It will likely have a profit level that is below the company average, but certainly in that upper teen range is where we would expect it to settle.

它的利潤水平可能會低於公司平均水平，但肯定會在我們預期的區間內。

And secondly on the China aerospace and defense headwind, you mentioned of $10 million to $15 million a quarter.

其次，關於中國航空航天和國防逆風，你提到每個季度 1000 萬到 1500 萬美元。

Could you sort of speak to how you arrived at that number and your confidence levels, visibility around the headwind and potential that it could be worse or perhaps not actually as bad as you expect right now?

您能否談談您是如何得出這個數字的，以及您的信心水平、逆風的可見度以及它可能會更糟或者可能不像您現在預期的那樣糟糕的可能性？

Well, obviously, the China situation is changing every day.

嗯，顯然，中國的情況每天都在變化。

And so we have pretty good visibility into our end customers and have an open dialogue with them on a regular basis.

因此，我們對最終客戶有很好的了解，並定期與他們進行公開對話。

And from working with our management team, we're able to assess what some of those pressures are that we're seeing in the market.

通過與我們的管理團隊合作，我們能夠評估我們在市場上看到的一些壓力。

I will let Mark see if he has any additional comments, but that's how we size it.

我會讓 Mark 看看他是否還有任何其他意見，但這就是我們確定大小的方式。

At the moment, we're monitoring it constantly, and we'll see how things evolve as we move forward.

目前，我們正在不斷監控它，我們將看到事情在我們前進的過程中是如何演變的。

Yes, this is Mark.

是的，這是馬克。

The only thing I'd add to that is, as the team is monitoring the situation with the trade tensions, we're obviously also paying close attention to all of our customers.

我唯一要補充的是，由於團隊正在監測貿易緊張局勢，我們顯然也在密切關注我們所有的客戶。

And I can tell you that the overall tone remains positive.

我可以告訴你，整體基調仍然是積極的。

We're working with all of our customers, if anything, they're interested in working further with us.

我們正在與所有客戶合作，如果有的話，他們有興趣與我們進一步合作。

And as I mentioned before, our business is very broad in China with 5G, automotive, semiconductor and aerospace defense.

正如我之前提到的，我們在中國的業務非常廣泛，涉及 5G、汽車、半導體和航空航天國防。

So we're looking at both sides of the equation, and so far, the effects are not wide reaching.

所以我們正在考慮等式的兩邊，到目前為止，影響並不廣泛。

We have also gone down and looked at something which China calls -- or the U.S. government calls the restricted party list, companies that you're not allowed to sell to, and we've combed through that list.

我們還深入研究了中國所稱的東西——或者美國政府稱之為受限方名單，不允許向其出售的公司，我們已經梳理了該名單。

We know exactly what's in the funnel, what customers buy.

我們確切地知道漏斗中有什麼，客戶購買什麼。

So any changes that have occurred in the U.S. policy on where we can sell, we've already quantified that and included that in that overall number.

因此，美國關於我們可以在哪裡銷售的政策發生的任何變化，我們已經對其進行了量化並將其包含在總數中。

That concludes our question-and-answer session for today.

今天的問答環節到此結束。

I would like to turn the conference back to Jason Kary for any closing remarks.

我想將會議轉回 Jason Kary 的閉幕詞。

Thank you, Krista, and we appreciate all of you joining us today.

謝謝你，Krista，感謝你們今天加入我們。

We look forward to seeing many of you at the upcoming conferences.

我們期待在即將舉行的會議上見到你們中的許多人。

And with that, we'll close.

有了這個，我們就結束了。

And have a great day.

祝你有美好的一天。

This concludes our conference call.

我們的電話會議到此結束。

You may now disconnect.

您現在可以斷開連接。