是德科技 (KEYS) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Keysight Technologies Fiscal First Quarter 2024 Earnings Conference Call. My name is Joel, and I will be your lead operator today. (Operator Instructions) This call is being recorded today, Tuesday, February 20, 2024, at 1:30 p.m. Pacific Time.

女士們、先生們，美好的一天，歡迎參加是德科技 2024 年第一季財報電話會議。我叫喬爾，今天我將成為你們的首席操作員。 （操作員說明）本次通話將於今天（2024 年 2 月 20 日星期二）下午 1:30 進行錄音。太平洋時間。

I would now like to hand the call over to Jason Kary, Vice President, Treasurer and Investor Relations. Please go ahead, Mr. Kary.

我現在想將電話轉交給財務主管和投資者關係副總裁 Jason Kary。請繼續，卡里先生。

Thank you, and welcome, everyone, to Keysight's first quarter earnings conference call for fiscal year 2024. Joining me are Keysight's President and CEO, Satish Dhanasekaran; and our CFO, Neil Dougherty. In the Q&A session, we'll be joined by Chief Customer Officer, Mark Wallace.

感謝並歡迎大家參加是德科技 2024 財年第一季財報電話會議。與我一起參加的是德科技總裁兼執行長 Satish Dhanasekaran；和我們的財務長尼爾·多爾蒂。在問答環節，首席客戶長馬克華萊士將參加我們的問答環節。

The press release and information that supplement today's discussion are on our website at investor.keysight.com under Financial Information and Quarterly Reports. Today's comments will refer to non-GAAP financial measures. We will also make reference to core growth, which excludes the impact of currency movements and acquisitions or divestitures completed within the last 12 months. The most directly comparable GAAP financial metrics and reconciliations are on our website, and all comparisons are on a year-over-year basis, unless otherwise noted.

補充今天討論的新聞稿和資訊可在我們的網站 Investor.keysight.com 的「財務資訊和季度報告」下找到。今天的評論將涉及非公認會計準則財務指標。我們還將參考核心成長，其中不包括貨幣變動以及過去 12 個月內完成的收購或剝離的影響。最直接可比較的 GAAP 財務指標和調整表位於我們的網站上，除非另有說明，所有比較均按年度進行。

We will make forward-looking statements about the financial performance of the company on today's call. These statements are subject to risks and uncertainties and are only valid as of today. We assume no obligation to update them and encourage you to review our recent SEC filings for a more complete view of these risks and other factors. Lastly, management is scheduled to participate in upcoming investor conferences hosted by Susquehanna and Morgan Stanley.

我們將在今天的電話會議上對公司的財務表現做出前瞻性陳述。這些聲明存在風險和不確定性，並且僅截至今日有效。我們不承擔更新它們的義務，並鼓勵您查看我們最近向 SEC 提交的文件，以更全面地了解這些風險和其他因素。最後，管理層計劃參加由薩斯奎哈納和摩根士丹利主辦的即將舉行的投資者會議。

And now I will turn the call over to Satish.

現在我將把電話轉給薩蒂什。

Good afternoon, everyone, and thank you for joining us today. My comments will focus on 3 key headlines. First, Keysight delivered revenue of $1.3 billion and earnings per share of $1.63, both of which exceeded the high end of our guidance. Given the current market conditions, these results reflect the Keysight team's strong execution and resilience of our financial model.

大家下午好，感謝您今天加入我們。我的評論將集中在 3 個關鍵標題上。首先，是德科技實現了 13 億美元的營收和 1.63 美元的每股收益，均超出了我們指導的上限。鑑於當前的市場狀況，這些結果反映了是德科技團隊強大的執行力和財務模型的彈性。

Second, orders were $1.2 billion as the demand environment remains constrained. As certain markets continue to normalize from post-pandemic spending levels, our aerospace, defense and government and network and data center businesses grew, highlighting the benefit of our diverse end market exposure.

其次，由於需求環境仍受到限制，訂單為 12 億美元。隨著某些市場繼續從疫情後的支出水準恢復正常，我們的航空航太、國防和政府以及網路和資料中心業務不斷增長，凸顯了我們多元化終端市場的優勢。

Customer engagement and collaborations on next-generation themes remain strong. The adoption of new use cases such as AI is driving new activity and investment across the ecosystem. However, we're not factoring in a strong recovery this fiscal year. Our base case scenario is for a modest first half to second half improvement in orders and revenue.

關於下一代主題的客戶參與和合作依然強勁。人工智慧等新用例的採用正在推動整個生態系統的新活動和投資。然而，我們並未考慮到本財年的強勁復甦。我們的基本情境是上半年到下半年訂單和收入略有改善。

Third, Keysight continues to be well positioned for outperformance into a market recovery. We are investing to enhance our market leadership and expand our broad portfolio of leading solutions. We are also pleased to have completed the acquisition of ESI ahead of schedule and extend a warm welcome to the team. Along with our existing EDA business, the addition of ESI further expands our software solutions for simulation and emulation, a market with favorable growth attributes as the virtualization of design and prototyping increases.

第三，是德科技繼續處於有利地位，能夠在市場復甦中取得優異的表現。我們正在投資以增強我們的市場領導地位並擴大我們廣泛的領先解決方案組合。我們也很高興提前完成了對ESI的收購，並對團隊的到來表示熱烈歡迎。除了我們現有的 EDA 業務之外，ESI 的加入進一步擴展了我們的模擬和模擬軟體解決方案，隨著設計和原型製作的虛擬化增加，這個市場具有良好的成長屬性。

Now let's begin with a brief overview of Keysight's first quarter performance. Market conditions were largely unchanged from the prior quarter. Across our end markets, investment in R&D remains steady, while manufacturing and overall economic activity in Asia continued to moderate.

現在讓我們先簡單回顧一下是德科技第一季的業績。市場狀況與上一季基本沒有變化。在我們的終端市場，研發投資保持穩定，而亞洲的製造業和整體經濟活動持續放緩。

First quarter orders were $1.2 billion, revenue, $1.3 billion and earnings per share of $1.63 were above our guidance, and we generated strong cash flow. Gross margins across the business were strong, and including ESI, we achieved a record 67%, demonstrating the differentiation of our solutions. Operating margin was 28%, reflecting expense discipline and cost actions that we have taken over the past quarter and last year.

第一季訂單量為 12 億美元，營收為 13 億美元，每股收益為 1.63 美元，均高於我們的預期，並且我們產生了強勁的現金流。整個業務的毛利率都很強勁，包括 ESI，我們實現了創紀錄的 67%，證明了我們解決方案的差異化。營業利益率為 28%，反映了我們在過去一個季度和去年採取的費用紀律和成本行動。

Turning to our business segments. Communications Solutions Group revenue declined relative to a strong compare last year, which was driven by robust backlog conversion. Quarter 1 gross margin was a record 68%, reflecting a greater mix of software and higher-value solutions. Orders were in line with expectations with strength in aerospace, defense and government and the wireline business, while wireless continues to normalize.

轉向我們的業務部門。與去年相比，通訊解決方案集團的收入有所下降，這是由強勁的積壓訂單轉換所推動的。第一季毛利率達到創紀錄的 68%，反映出軟體和更高價值解決方案的更廣泛組合。航空航太、國防和政府以及有線業務的訂單量符合預期，而無線業務則繼續正常化。

Aerospace, defense and government revenue declined, while orders grew year-over-year. Spending levels remain elevated as governments around the world prioritize investments in defense modernization, space and satellite applications. We are scaling our threat emulation offerings to a broader set of customers for electromagnetic spectrum operation applications in the U.S. and Europe, resulting in key wins at large primes.

航空航天、國防和政府收入下降，而訂單則是年增。隨著世界各國政府優先投資國防現代化、太空和衛星應用，支出水準仍較高。我們正在將我們的威脅模擬產品擴展到美國和歐洲的電磁頻譜操作應用程式的更廣泛客戶群，從而在大型競爭中取得重大勝利。

Our space and satellite solutions drove businesses this quarter for new space modules and low earth orbit applications. Leveraging our protocol and digital twin capabilities, we partnered with Lockheed Martin and a broad set of technology leaders to successfully demonstrate a secure 5G and data link network that integrates land, air and space operations.

我們的太空和衛星解決方案推動了本季新空間模組和近地軌道應用的業務。利用我們的協議和數位孿生功能，我們與洛克希德·馬丁公司和眾多技術領導者合作，成功演示了整合陸地、空中和太空運營的安全 5G 和數據鏈路網路。

In commercial communications, customer spending remains cautious. While we're not seeing a market recovery yet, industry inventories are slowly returning to normalized levels. For example, smartphone sales in the fourth quarter of 2023 grew meaningfully for the first time since mid-2021.

在商業通訊方面，客戶支出仍然謹慎。雖然我們還沒有看到市場復甦，但產業庫存正在慢慢恢復到正常水準。例如，2023 年第四季智慧型手機銷量自 2021 年中期以來首次大幅成長。

In our wireless business, customer engagements remain high with ongoing R&D activity in advanced technologies. This results in software and service upgrades that contributed to higher gross margins in the quarter. 5G standards continue to progress and are driving a wide range of new use cases and features for ongoing network deployment. New band combinations are expected to be added to the 3GPP standard this year, driving certification needs.

在我們的無線業務中，隨著先進技術的持續研發活動，客戶參與度仍然很高。這導致軟體和服務升級，從而推動了本季毛利率的提高。 5G 標準不斷進步，並為持續的網路部署推動了廣泛的新用例和功能。預計今年將在 3GPP 標準中添加新的頻段組合，從而推動認證需求。

This quarter, we hosted Global Certification Forum that brought together industry leaders across a broad array of sectors to collaborate on certification requirements for network and device interoperability and performance. Next week, at Mobile World Congress, we will be demonstrating over a dozen solutions for 5G, Open RAN, satellite connectivity, AI and early 6G capabilities, many of which will be showcased in partnership with industry-leading customers.

本季度，我們主辦了全球認證論壇，匯集了各個領域的行業領導者，就網路和設備互通性和效能的認證要求進行合作。下週，在世界行動通訊大會上，我們將展示十多種針對 5G、Open RAN、衛星連接、人工智慧和早期 6G 功能的解決方案，其中許多解決方案將與業界領先的客戶合作展示。

Moving to our wireline business. We saw order growth for our data center solutions. Orders for 400 and 800 gig solutions, both in R&D and manufacturing, grew double digits. We also achieved a key milestone in partnership with Marvell by enabling test and verification of their new ultra high-speed networking chip designed for next-generation AI-driven cloud applications. The adoption of AI is clearly lifting activity across the entire data center ecosystem. As the industry deploys AI infrastructure at scale, we expect the demand for high-speed networking and computing capabilities to grow.

轉向我們的有線業務。我們看到資料中心解決方案的訂單成長。研發和製造領域的 400 和 800 演出解決方案訂單均達到兩位數成長。我們也與 Marvell 合作實現了一個重要的里程碑，測試並驗證了 Marvell 專為下一代人工智慧驅動的雲端應用程式設計的新型超高速網路晶片。人工智慧的採用顯然正在提升整個資料中心生態系統的活動。隨著業界大規模部署人工智慧基礎設施，我們預計對高速網路和運算能力的需求將會成長。

Turning to the Electronic Industrial Solutions Group. Revenue was down, reflecting ongoing normalization from outsized demand in the prior year. Customer spending remains cautious as market conditions, particularly in manufacturing and regionally in China, were weaker. Underneath the macro headlines, we see pockets of growth where customers are leaning in and investing to address new use cases and emerging technologies across multiple end markets.

轉向電子工業解決方案集團。收入下降，反映出上一年需求過大導致的持續正常化。由於市場狀況（尤其是製造業和中國地區市場）疲軟，客戶支出仍保持謹慎。在宏觀新聞的背後，我們看到了一些成長，客戶正在傾斜並投資以解決多個終端市場的新用例和新興技術。

In semiconductor, the market environment is mixed. Despite the improved industry outlook for overall fab investments, foundry customers continue to push out large projects due to delays in construction and production time lines. At the same time, we saw a strong demand for Keysight's proprietary interferometer system driven by industry progression in EUV technology. Next-generation performance requirements for new AI-driven data center and ADAS use cases are also driving investments. And we saw some improvement this quarter in memory-related demand as well as mature process capacity in China.

在半導體領域，市場環境好壞參半。儘管整體晶圓廠投資的產業前景有所改善，但由於建設和生產時間表的延誤，代工客戶繼續推出大型專案。同時，我們看到，在 EUV 技術產業進步的推動下，對是德科技專有乾涉儀系統的需求強勁。新的人工智慧驅動資料中心和 ADAS 用例的下一代效能要求也在推動投資。本季我們看到中國內存相關需求以及成熟製程產能有所改善。

In automotive, the funnel of EV opportunities continues to be strong. Competition amongst OEMs, upcoming regulatory requirements and support from government subsidies are incentivizing investments in R&D for new battery technology and charging infrastructure. During the quarter, we secured a key win that marks the expansion of our European battery test footprint into France. As we have noted before, EV funnel is healthy, but the timing and the size of these system level and longer-dated engagements are expected to vary from quarter-to-quarter.

在汽車領域，電動車機會的漏斗仍然強勁。原始設備製造商之間的競爭、即將出台的監管要求以及政府補貼的支持正在刺激新電池技術和充電基礎設施的研發投資。在本季度，我們取得了一項重大勝利，標誌著我們的歐洲電池測試足跡擴展到了法國。正如我們之前指出的，電動車漏斗是健康的，但這些系統級和長期參與的時間和規模預計會因季度而異。

In general electronics, market conditions were unchanged from last quarter. Ongoing capacity normalization and cautious spending continue to weigh on the consumer electronics and manufacturing portions of the market. We saw steady demand for our solutions in digital health, industrial automation and advanced research. This quarter, we secured key wins in digital health applications for medical imaging and scanning as well as test automation. Consistent with our software-centric solution strategy, the value that our customers derive from software and service offerings is enabling business resilience in the current market conditions. Software and services orders and revenue continued to outperform the broader business this quarter and were greater than 35% of total Keysight, even excluding ESI.

在通用電子產品方面，市場狀況與上季持平。持續的產能正常化和謹慎的支出繼續對市場的消費性電子產品和製造業部分構成壓力。我們看到數位健康、工業自動化和高級研究領域對我們的解決方案的穩定需求。本季度，我們在醫學影像和掃描以及測試自動化的數位健康應用領域取得了重大勝利。與我們以軟體為中心的解決方案策略一致，我們的客戶從軟體和服務產品中獲得的價值正在實現當前市場條件下的業務彈性。本季軟體和服務訂單和收入繼續跑贏整體業務，佔德科技總額的 35% 以上（即使不包括 ESI）。

ESI further enhances our design engineering software portfolio and expands our addressable market in automotive, avionics, smart manufacturing and human workflows. We were pleased to complete the acquisition ahead of schedule, and ESI's results were also ahead of expectations for the quarter.

ESI 進一步增強了我們的設計工程軟體產品組合，並擴大了我們在汽車、航空電子設備、智慧製造和人類工作流程方面的潛在市場。我們很高興提前完成了收購，ESI 本季的業績也超出了預期。

In summary, our market leadership and the strength of our solutions portfolio gives us confidence in our ability to capitalize on the multiple waves of technology innovations and long-term secular growth trends of our markets. Our team's relentless customer focus and sustained customer collaborations also position us well for long-term value creation. In addition, the strength of our financial model continues to generate healthy margins and cash flow.

總之，我們的市場領導地位和解決方案組合的實力使我們對利用多波技術創新和市場長期成長趨勢的能力充滿信心。我們團隊對客戶的不懈關注和持續的客戶合作也使我們能夠創造長期價值。此外，我們強大的財務模式繼續產生健康的利潤和現金流。

With that, I will turn it over to Neil to discuss our financial performance and outlook.

接下來，我將把它交給尼爾來討論我們的財務表現和前景。

Thank you, Satish, and hello, everyone. First quarter revenue of $1.259 billion was just above the high end of our guidance range and down 9% or 14% on a core basis. Orders of $1.220 billion declined 6% or 12% on a core basis. We ended the quarter with $2.3 billion in backlog.

謝謝薩蒂什，大家好。第一季營收為 12.59 億美元，略高於我們指引範圍的上限，但核心收入下降了 9% 或 14%。訂單金額為 12.2 億美元，核心訂單量下降 6% 或 12%。本季末，我們的積壓訂單達到 23 億美元。

Looking at our operational results for Q1. We reported record gross margin of 67%, an increase of 200 basis points year-over-year. Excluding ESI, gross margin was a near record 66% on lower revenue, supported by a solid mix of software and higher-value solutions. In addition, software was 22% of revenue, while recurring revenue from both software and services grew 10%. Operating expenses of $491 million were flat year-over-year even with the addition of ESI, demonstrating the flexibility of our cost structure and the cost actions that we have taken. Q1 operating margin was 28% or 27% excluding ESI. These results demonstrate the financial flexibility and resilience of our business. We are outperforming the financial model that we put in place over a decade ago, which calls for only a 300 to 400 basis point year-over-year decline in operating margin when revenue declines 10%.

看看我們第一季的營運表現。我們的毛利率創歷史新高，達 67%，年增 200 個基點。不包括 ESI 在內，在軟體和高價值解決方案的堅實組合的支持下，由於收入下降，毛利率接近創紀錄的 66%。此外，軟體佔收入的 22%，而軟體和服務的經常性收入增加了 10%。即使增加了 ESI，營運費用仍為 4.91 億美元，與去年同期持平，這證明了我們成本結構的靈活性以及我們所採取的成本行動。第一季營業利潤率為 28% 或 27%（不包括 ESI）。這些結果證明了我們業務的財務靈活性和彈性。我們的表現優於十多年前建立的財務模型，該模型要求當收入下降 10% 時，營業利潤率僅年減 300 到 400 個基點。

Turning to earnings. We achieved $286 million of net income and delivered earnings of $1.63 per share, of which ESI contributed $0.09. Our weighted average share count for the quarter was 176 million shares.

轉向收益。我們實現了 2.86 億美元的淨利潤，每股收益 1.63 美元，其中 ESI 貢獻了 0.09 美元。本季我們的加權平均股數為 1.76 億股。

Moving to the performance of our segments. Our Communications Solutions Group generated revenue of $839 million, down 11% or 12% on a core basis. Commercial communications revenue of $544 million declined 14%, while aerospace, defense and government revenue of $295 million was down 5%. Altogether, CSG delivered record gross margin of 68% and operating margin of 27%.

轉向我們細分市場的表現。我們的通訊解決方案集團的收入為 8.39 億美元，核心收入下降 11% 或 12%。商業通訊收入為 5.44 億美元，下降 14%，而航空航太、國防和政府收入為 2.95 億美元，下降 5%。整體而言，南玻集團的毛利率達到創紀錄的 68%，營業利益率達 27%。

The Electronic Industrial Solutions Group generated revenue of $420 million, down 5% or 19% on a core basis. EISG reported gross margin of 65% and operating margin of 31%.

電子工業解決方案集團的營收為 4.2 億美元，年減 5%，核心收入下降 19%。 EISG 報告毛利率為 65%，營業利益率為 31%。

Moving to the balance sheet and cash flow. We ended the first quarter with $1.7 billion in cash and cash equivalents, which reflects the purchase of ESI within the quarter, generating cash flow from operations of $328 million and free cash flow of $281 million. Share repurchases this quarter totaled 625,000 shares at an average price per share of approximately $149 for a total consideration of $93 million.

轉向資產負債表和現金流量。第一季結束時，我們擁有 17 億美元的現金和現金等價物，這反映了本季內對 ESI 的收購，產生了 3.28 億美元的營運現金流和 2.81 億美元的自由現金流。本季股票回購總量為 625,000 股，每股平均價格約 149 美元，總代價為 9,300 萬美元。

Now turning to our outlook. Given Q1 core orders of $1.14 billion and the typical sequential decline in ESI orders and revenue from Q1 to Q2, we expect second quarter revenue to be in the range of $1.190 billion to $1.210 billion and Q2 earnings per share to be in the range of $1.34 to $1.40 based on a weighted diluted share count of approximately 175 million shares. This guidance includes approximately $25 million in ESI revenue and a few cents of earnings dilution from ESI.

現在轉向我們的展望。鑑於第一季核心訂單為11.4 億美元，以及ESI 訂單和收入從第一季到第二季的典型連續下降，我們預計第二季營收將在11.90 億美元至12.10 億美元之間，第二季度每股收益將在1.34 美元之間根據約 1.75 億股的加權稀釋股數，每股收益將降至 1.40 美元。該指導包括大約 2500 萬美元的 ESI 收入和 ESI 帶來的幾美分的收益稀釋。

As we look to the second half of the year and our 6-month order funnel, we aren't assuming a strong revenue recovery in Keysight's fiscal second half, which ends in October. Our base case scenario is that revenue is relatively flat from Q2 to Q3 and sequentially up mid-single digits Q3 to Q4, in line with typical historical seasonality. That said, we do expect second half orders to exceed first half orders, which will be supportive of revenue growth in 2025.

當我們展望今年下半年和 6 個月的訂單管道時，我們並不認為是德科技下半年（即 10 月結束）的收入將出現強勁復甦。我們的基本情景是，第二季到第三季的營收相對持平，第三季到第四季的營收依序上升到中個位數，這與典型的歷史季節性相符。儘管如此，我們預計下半年訂單將超過上半年訂單，這將支持 2025 年的收入成長。

In closing, Keysight's flexible cost structure and discipline, track record of execution and diverse end markets give us confidence in our ability to outperform even in the current market conditions while at the same time, investing to capitalize on the best growth opportunities as markets recover.

最後，是德科技靈活的成本結構和紀律、良好的執行記錄和多元化的終端市場讓我們相信，即使在當前的市場條件下，我們也有能力超越市場，同時隨著市場復甦，我們能夠進行投資，把握最佳成長機會。

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

現在，我將把它轉回傑森進行問答。

Thanks, Neil. Joel, could you please give the instructions for the Q&A?

謝謝，尼爾。 Joel，您能給一下問答的說明嗎？

(Operator Instructions) The first question is from the line of Samik Chatterjee with JPMorgan.

（操作員說明）第一個問題來自摩根大通的 Samik Chatterjee。

Maybe if I can start with the first one just on the sort of what you're implying in terms of the recovery for the back half. I mean just looking at the 2Q guide, to me, it implies that organically, the businesses or the core business is down a bit and there's some ESI revenue sequentially declining as well. But if the core business is down sequentially, what's driving the expectation for a recovery starting 3Q and 4Q? And I know you said you're not baking in a recovery in relation to the macro. So is there something more customer-specific or end market-specific that you're seeing that's driving that expectation? And I have a quick follow-up.

也許我可以從第一個開始，就你所暗示的後半場恢復而言。我的意思是，僅看第二季度指南，對我來說，這意味著業務或核心業務有機地下降了一點，而且一些 ESI 收入也連續下降。但如果核心業務連續下滑，那麼是什麼推動了第三季和第四季開始復甦的預期呢？我知道你說過你不會推動宏觀經濟的復甦。那麼，您認為是否有更多針對特定客戶或最終市場的因素推動了這種期望？我有一個快速的跟進。

Yes. I would just say that as we stated in our prepared remarks, right now, our base case does not include a meaningful second half recovery. We're really more looking at seasonal changes as you move throughout the fiscal year. So flattish Q2 to Q3 and then a typical seasonal uptick into Q4, which is typically our stronger quarter of the year. In aggregate, we do expect orders and revenue in the second half to be modestly above the first half, but we are not baking in a recovery at this point.

是的。我只想說，正如我們在準備好的演講中所說，目前我們的基本情況不包括下半年有意義的復甦。隨著整個財年的變化，我們實際上更關注季節性變化。因此，第二季到第三季表現平平，然後第四季出現典型的季節性上升，這通常是我們一年中表現強勁的季度。總的來說，我們確實預計下半年的訂單和收入將略高於上半年，但目前我們並不認為經濟會復甦。

I guess -- sorry, Satish, just to clarify, I was more looking at what's the driver there? I mean when you call it seasonal, it's been below seasonal for a bit. So is it something more specific to the end markets? And I'll ask my follow-up at the same time, if you don't mind. I mean if you can just shed a bit more light on the order trends in relation to EISG. I know you said it's largely unchanged spending, but what are you seeing in the different verticals when it comes to autos versus broader industrial because we've seen a lot of weaker macro-related points on that front?

我想 - 抱歉，薩蒂什，只是為了澄清一下，我更多的是關注那裡的驅動程序是什麼？我的意思是，當你稱之為季節性時，它已經低於季節性了一段時間。那麼它是針對終端市場的更具體的東西嗎？如果您不介意的話，我會同時詢問我的跟進人員。我的意思是，如果您能更多地了解與 EISG 相關的訂單趨勢。我知道你說過支出基本上沒有變化，但是當涉及到汽車與更廣泛的工業時，你在不同的垂直領域看到了什麼，因為我們在這方面看到了許多較弱的宏觀相關點？

Yes. Thank you, Samik. I would say at the highest level, the customer engagements that we have are remaining strong. And while there are signs of optimism from customers as we enter the new calendar year, we have not yet seen a progression through our pipeline. And as we said in our -- in my prepared remarks, the market conditions remain largely unchanged from a quarter ago. The aerospace, defense strength that we saw last year continues on. And what we have seen incrementally is the wireline business has actually grown for the first time this quarter, and that was a function of some of the AI-related end market inflections that are occurring.

是的。謝謝你，薩米克。我想說的是，在最高層面上，我們的客戶參與度仍然很高。儘管隨著我們進入新的一年，客戶出現了樂觀的跡象，但我們的管道尚未取得進展。正如我們在我準備好的演講中所說，市場狀況與一個季度前基本保持不變。我們去年看到的航空航太、國防實力仍在繼續。我們逐漸看到的是，有線業務實際上在本季度首次成長，這是一些與人工智慧相關的終端市場正在發生的變化的結果。

If I take a reasonable cut at this, I would say our largest region, Americas, grew for the first time in 4 quarters, and this is driven by, again, the strength in aerospace, defense and the wireline business. But Asia continues to remain weak, especially, which is impacting the EISG business and some of the wireless business in that region as it continues to normalize from the peak spending levels.

如果我對此進行合理的削減，我會說我們最大的地區美洲在四個季度中首次出現成長，這又是由航空航太、國防和有線業務的實力推動的。但亞洲仍然疲軟，尤其是，這正在影響該地區的 EISG 業務和部分無線業務，因為該地區的支出水平繼續從高峰水平恢復正常。

Again, to put your question in perspective, CSG entered that normalization phase early and EISG was offset by a few quarters. And so that's what's currently playing out. So given this backdrop, we think it's prudent to think of a base case assumption where orders and revenue would be up modestly first half to second half. But should there be a broad and stronger recovery sooner, and there may be some signs out there around the SIA index, where things are picking up, some of the inventory digestion that's happening, capacity utilization fabs. But should that occur, we will be in a good position to capitalize on that and recover quicker.

再一次，為了正確地看待你的問題，CSG 提前進入了正常化階段，EISG 被抵消了幾個季度。這就是目前正在發生的事情。因此，在這種背景下，我們認為謹慎的做法是考慮一個基本情況假設，即上半年到下半年訂單和收入將小幅增長。但如果更早出現廣泛、更強勁的復甦，SIA 指數周圍可能會出現一些跡象，情況正在好轉，一些庫存正在消化，產能利用率也正在提高。但如果發生這種情況，我們將處於有利地位，可以利用這一點並更快地恢復。

The next question is from Mark Delaney with Goldman Sachs.

下一個問題來自高盛的馬克·德萊尼。

Satish, you mentioned, I believe, double-digit growth in orders to support data center builds for products like high-speed wireline, which you attributed to AI. Can you give us a better sense of how much of either revenue or orders may be directly or indirectly benefiting from AI at this stage and how you see that progressing?

Satish，我相信您提到了支援高速有線等產品的資料中心建設的訂單出現兩位數增長，您將其歸因於人工智慧。您能否讓我們更了解現階段有多少收入或訂單可能直接或間接受益於人工智慧，以及您如何看待這項進展？

Yes. That's a really good question. It's still an emerging opportunity for us, but what is significant this quarter is we started to see the wireline or parts of our business inflect. And if you recall, in the past earnings calls, I've talked about the traffic patterns caused by generative AI really impacting the whole network architecture compute to networking and switching in silicon. And therefore, we knew that demand was coming up. And so what we noticed this quarter is our wireline business started to inflect driven by 400 gig and 800 gig transceiver business in manufacturing as that starts to scale, increased focus on terabit research. We announced a collaboration with Marvell in advanced technologies as well there. So that's the business of today.

是的。這是一個非常好的問題。這對我們來說仍然是一個新興機會，但本季的重要意義是我們開始看到有線或部分業務發生變化。如果你還記得，在過去的財報電話會議中，我談到了生成式人工智慧引起的流量模式確實影響了整個網路架構運算、網路和晶片中的交換。因此，我們知道需求正在增加。因此，本季我們注意到，我們的有線業務開始受到製造中 400 gig 和 800 gig 收發器業務的推動，隨著該業務開始規模化，以及對太比特研究的日益關注。我們也在那裡宣布與 Marvell 在先進技術方面進行合作。這就是今天的事。

But as we start to think about the broader landscape here, I would say the memory technologies with HBM is starting to gain interest in our customers, different processor architectures, increased silicon activity enabled by AI. And then for us, it's very exciting because there's a lot of tools that we can deploy our IP because we have the total stack to help engineers train the AI/ML models better. And so you will see we announced a collaboration with NVIDIA on this front as well. And there's new interface standards. And you know our business is driven by standardization process. So new interface standards are good for us. CXL, PCIe gen 7 and the Ultra Ethernet Consortium playing into it.

但當我們開始思考更廣闊的前景時，我想說 HBM 記憶體技術開始引起我們客戶的興趣、不同的處理器架構、人工智慧帶來的矽活動的增加。對我們來說，這是非常令人興奮的，因為我們有很多工具可以部署我們的 IP，因為我們擁有完整的堆疊來幫助工程師更好地訓練 AI/ML 模型。因此，您將會看到我們也宣布與 NVIDIA 在這方面合作。還有新的介面標準。您知道我們的業務是由標準化流程驅動的。所以新的介面標準對我們有好處。 CXL、PCIe gen 7 和超乙太網路聯盟都參與其中。

Silicon photonics and quantum, while they are sort of enabling technologies, are other areas where we've had investments where we're now able to address new opportunities. Now a lot of that is not yet baked into our forecast, but we're continuing to action these things through the investments we're making.

矽光子學和量子雖然是一種使能技術，但也是我們投資的其他領域，我們現在能夠抓住新的機會。現在，其中許多內容尚未納入我們的預測，但我們將繼續透過我們正在進行的投資來採取這些行動。

That's helpful color. My second question was on margins. The company has a target for its EBIT margin to reach 31% to 32% by fiscal '26. Maybe you can help us better understand what kind of revenue would be needed for the company to reach that kind of margin. And I think you have a 5% to 7% revenue CAGR or target. I mean, should we be thinking about a couple of years of at least the high end, if not higher revenue relative to that target in order to reach your margin objective?

這是有用的顏色。我的第二個問題是關於邊緣的。該公司的目標是到 26 財年其息稅前利潤率達到 31% 至 32%。也許你可以幫助我們更了解公司需要什麼樣的收入才能達到這樣的利潤率。我認為您的收入複合年增長率或目標是 5% 到 7%。我的意思是，為了實現您的利潤率目標，我們是否應該考慮至少幾年的高端收入（如果不是相對於該目標更高的收入）？

Yes. Thank you. It might be a little too premature to talk about the outer years, but here's how we're thinking about it. We've had -- obviously, this is the second year we're entering in where orders are declining. And every time that's happened, we would expect to bounce back at -- in the outer years to be stronger. So that's still to be proven out. And you know the sort of earnings leverage that we get when we are able to grow our business above our models. So profitability, I'm pretty encouraged by the strong gross margins we're maintaining even on declining top line right now that's a function of the software and services content and just the discipline in which we run our business. And so I feel like getting our business back to growth is the principal driver. And given all the trends that we see across wireless, wireline, the long-term trends we see in next-gen silicon and aerospace, defense and in semi, we believe that we can get back to this growth model that we put out at Investor Day.

是的。謝謝。現在談論外部年份可能有點為時過早，但我們是這樣考慮的。顯然，這是我們進入訂單下降的第二年。每次發生這種情況，我們都希望在未來幾年反彈得更強勁。所以這還有待證明。你知道，當我們能夠將業務發展到超出我們的模式時，我們會獲得什麼樣的獲利槓桿。因此，獲利能力讓我感到非常鼓舞，即使目前的收入正在下降，我們仍然保持著強勁的毛利率，這是軟體和服務內容的功能，也是我們經營業務的紀律的結果。因此，我認為讓我們的業務恢復成長是主要驅動力。考慮到我們在無線、有線方面看到的所有趨勢，以及我們在下一代矽和航空航太、國防和半導體領域看到的長期趨勢，我們相信我們可以回到我們在投資者上推出的這種成長模式天。

The next question is from the line of Meta Marshall with Morgan Stanley.

下一個問題來自摩根士丹利的梅塔·馬歇爾。

Apologies for the background noise. Maybe just a couple of questions for me. Maybe first and just in terms of -- clearly, you guys were a little bit more cautious entering into the year. You hadn't guided to the full year. I guess I'm just trying to get a sense of versus the environment, as you saw it 90 days ago, how have your expectations changed? And maybe just on the second question, just in terms of ESI and the earlier closure that we had. Just any changes that you can make or able to make to that business kind of earlier than you expected?

對背景噪音表示歉意。也許只是問我幾個問題。也許首先，很明顯，你們在進入這一年時更加謹慎了。你沒有指導全年。我想我只是想了解與環境的對比，正如您在 90 天前看到的那樣，您的期望有何變化？也許只是關於第二個問題，就 ESI 和我們之前的關閉而言。您可以或能夠比您預期更早對該業務進行任何更改嗎？

Yes. I think as far as the ESI question goes, I think we're quite positive -- incrementally positive about the opportunities that we have to grow the ESI business in Keysight's environment. We've long studied the system simulation, emulation marketplace. And so having all of the capabilities is definitely a huge advantage. And for us, bringing an asset that was sort of locked in a European environment and exposing it with our go-to-market channel and taking it into our customer base remains an opportunity to drive growth above what they have been able to do.

是的。我認為就 ESI 問題而言，我認為我們非常積極——對我們在是德科技環境中發展 ESI 業務的機會越來越積極。我們長期研究系統模擬、模擬市場。因此，擁有所有的能力絕對是一個巨大的優勢。對我們來說，將一種被鎖定在歐洲環境中的資產引入我們的市場管道並將其帶入我們的客戶群仍然是一個推動成長超越他們所能做到的機會。

But incrementally, I'm pretty bullish about the technology and the depth of simulation capabilities they bring. They also have a hybrid AI capability that is pretty unique and differentiated that we'll look to fully leverage across the company as we go. And we're also positive about the strong start in the first quarter for ESI. And I'll just hand it off to Mark to make some comments on the pipeline that he sees and how he sees that progressing.

但逐漸地，我非常看好它們帶來的技術和模擬功能的深度。他們還擁有非常獨特和差異化的混合人工智慧功能，我們將尋求在整個公司中充分利用它們。我們對 ESI 第一季的強勁開局也持正面態度。我將把它交給馬克，對他所看到的管道以及他如何看待進展發表一些評論。

Yes. Thanks. Thank you, Satish. The pipeline that we see today really supports our base scenario that second half orders and revenue will be modestly higher than the first half. And this is seen through some improvement in our 6-month funnel that Neil mentioned in his prepared statements and we've called out in various other earnings calls as well. The improvement comes in the form of some funnel intake up modestly, indicating that we have some green shoots and pockets of demand that are showing up.

是的。謝謝。謝謝你，薩蒂什。我們今天看到的管道確實支持我們的基本情景，即下半年的訂單和收入將略高於上半年。尼爾在準備好的聲明中提到了我們 6 個月漏斗的一些改進，我們也在各種其他收益電話會議中呼籲了這一點。這種改善是以漏斗攝取量小幅上升的形式出現的，這表明我們有一些萌芽和部分需求正在顯現。

And the other area is in the funnel velocity or in other words, how long it takes for opportunities to move through the funnel as some customers are beginning to move a bit more quickly. So 90 days later, those are the big changes. The short-term funnel is about the same at the beginning of Q1, which still remains constrained, but we are seeing some positive pipeline dynamics as we look out 6 months.

另一個領域是漏斗速度，或者換句話說，隨著一些客戶開始更快地移動，機會需要多長時間才能通過漏斗。 90 天后，這些就是巨大的變化。短期漏斗與第一季初大致相同，仍然受到限制，但展望 6 個月，我們看到了一些積極的管道動態。

The next question is from the line of Chris Snyder with UBS.

下一個問題來自瑞銀集團 (UBS) 的 Chris Snyder。

I guess it sounds like from much of the demand end market commentary that things are very similar in a demand sense from where they were 3 months ago. But I guess my question is, is there any place in the business where you see demand continuing to deteriorate on the leading edge? Because orders were down, it seems like on an organic basis, about mid-teens versus Q4, which is a bit sharper than seasonality. And the book-to-bill did step back below 1 after being above 1 last quarter. So are there any places in the business where things are getting worse?

我想從需求端市場的大部分評論來看，從需求角度來看，情況與 3 個月前的情況非常相似。但我想我的問題是，您認為行業中是否有任何地方的需求持續惡化？由於訂單量下降，似乎是有機的，與第四季度相比，訂單量下降了大約十幾歲，這比季節性因素要嚴重一些。訂單出貨比在上季高於 1 後確實回落至 1 以下。那麼，產業中是否有哪些地方的情況正在變得更糟呢？

Yes. I mean I think areas of relative weakness, Satish talked about Asia and China specifically continues to be challenging. I think manufacturing continues to be challenging. And I think we see our wireless customers that are still working through some of their issues. On the positive side, wireline driven by AI is clearly a strength point. Mark, do you want to add?

是的。我的意思是，我認為相對薄弱的領域，薩蒂什談到了亞洲和中國，特別是仍然具有挑戰性。我認為製造業仍充滿挑戰。我認為我們看到我們的無線客戶仍在解決他們的一些問題。從積極的一面來看，人工智慧驅動的有線顯然是一個優勢。馬克，你要添加嗎？

Yes. I would just add to that. We have said that the weaknesses in China for the EISG businesses, as we said, if you look at China, we saw customer engagements continue. I was there in December. Our historic exposure to China has been high teens of revenue. It's a little lower than that in Q1, and it was because of the continued headwinds, incrementally worse in semi and manufacturing.

是的。我想補充一點。我們已經說過，EISG 業務在中國的弱點，正如我們所說，如果你看看中國，我們會看到客戶參與仍在繼續。我十二月份在那裡。我們在中國的歷史風險敞口一直高達十幾歲。它比第一季略低，這是因為持續的不利因素，半成品和製造業的情況逐漸惡化。

But we did see sequential order growth from Q1 to -- from Q4 to Q1 driven by this demand that we talked about earlier with growth in 400 gig and 800 gig, R&D for the data center upgrades, some demand for 5G private networks. And as a global company, we're also exposed to some of the offshoring that has been going on and continues as some of the multinational companies move offshore.

但我們確實看到了從第一季到第四季到第一季的訂單連續成長，這是由我們之前談到的400 GB 和800 GB 成長、資料中心升級的研發以及對5G 專用網路的一些需求推動的。作為一家全球性公司，隨著一些跨國公司向海外轉移，我們也面臨一些一直在發生和持續的離岸外包。

And the last thing I'll say is, thinking back over the last several quarters, we vastly derisked China from a trade perspective. It was meaningless in Q1. Additions to the RPL have had a very [little] impact. We continue to monitor the situation very closely. So that's where we've seen some of the headwinds, but even there, I've seen some positive indicators in China as well.

我要說的最後一件事是，回顧過去幾個季度，我們從貿易角度大大降低了中國的風險。這在第一季毫無意義。 RPL 的補充產生了非常[小]的影響。我們將繼續密切關注事態發展。因此，我們在這方面看到了一些不利因素，但即便如此，我在中國也看到了一些正面的跡象。

I appreciate that. And then for my follow-up, I wanted to ask around backlog. Neil, I think you said $2.3 billion again, which is more than 6 months of coverage at this quarterly revenue run rate. But you guys are kind of saying that you don't expect revenue to get better into the back half of the year. So on this excess backlog, when does the company think it could start coming through in revenue? And is it because these big chip customers are pushing out their CapEx plans? Or is it just because the company has moved more towards a solutions-based model? Any help with that would be great.

我很感激。然後對於我的後續行動，我想詢問積壓的情況。尼爾，我想你又說了 23 億美元，以本季營收運行速度計算，這相當於 6 個多月的覆蓋範圍。但你們好像在說，你們預計今年下半年的收入不會好轉。那麼，對於這種過剩的積壓，公司認為什麼時候可以開始實現收入呢？是因為這些大型晶片客戶正在推出他們的資本支出計畫嗎？或者僅僅是因為該公司已經更多地轉向基於解決方案的模式？任何幫助都會很棒。

Yes. So you're correct. The number is $2.3 billion, and I would start by saying that we've now stated a couple of quarters ago that we believe we've worked through the excess backlog. And so -- and we did that last year when revenue outpaced orders by the tune of $275 million or something like that was when we worked through that excess backlog.

是的。所以你是對的。這個數字是 23 億美元，我首先要說的是，我們在幾個季度前就表示，我們相信我們已經解決了多餘的積壓問題。所以，我們去年就做到了這一點，當時收入超過訂單達 2.75 億美元，或者類似的情況就是我們處理了過多的積壓訂單時。

I think as we look currently, we're managing a couple of things. Obviously, by design, our recurring revenue businesses, software and services are holding up. You see that in an increasing deferred revenue balance. But in addition to this, we're also managing this dynamic between where our -- we've seen a pretty significant increase in these longer-dated orders, which, if you remember correctly, had historically been about 2% of our incoming order rate, and we really didn't talk about it as a result of that.

我認為，從目前的情況來看，我們正在處理一些事情。顯然，按照設計，我們的經常性收入業務、軟體和服務保持穩定。您可以從遞延收入餘額的增加中看到這一點。但除此之外，我們還管理著這些長期訂單之間的動態，我們已經看到這些較長期訂單的顯著增加，如果你沒記錯的話，歷史上這些訂單約占我們收到訂單的2 %率，因此我們真的沒有談論它。

Last year, they were more like 8% of the incoming order rate. They were 8% again here in Q1. And as Mark talked about, we have a robust funnel of longer-dated opportunities as we look out over the course of the next 6 months. And so that's a dynamic that we're starting to see. We are starting to see those longer-dated orders show up in revenue. We saw that beginning in Q1 and by Q4, we'd expect revenue from those longer-dated programs to be about 8% of that Q4 revenue.

去年，它們約佔新訂單率的 8%。第一季的成長率再次達到 8%。正如馬克所說，展望未來 6 個月，我們擁有一個強大的長期機會漏斗。這就是我們開始看到的動態。我們開始看到那些長期訂單出現在收入中。我們看到，從第一季開始到第四季度，我們預計這些長期項目的收入將佔第四季營收的 8% 左右。

The next question is from Adam Thalhimer Thompson, Davis.

下一個問題來自戴維斯的亞當·塔爾希默·湯普森。

I think to get to -- a question on operating margins. I think to get to the midpoint of guidance, they're down 600, 700 basis points year-over-year. And my question is, is that what you would expect in your model? Or is there something specifically impacting margins in Q2?

我想談談營業利益率的問題。我認為要達到指導的中點，它們比去年同期下降了 600、700 個基點。我的問題是，這是您所期望的模型嗎？或者有什麼特別影響第二季利潤率的因素嗎？

No, I think that's basically -- we're performing in line with the model, right? So if you take a look at what's happening, obviously, you see the significant sequential decline in ESI, which is as expected. But if you adjust for that, you're seeing a mid-teens kind of decline in the core business, right, from a revenue perspective. And we've talked about a downside model that contemplates 300 to 400 basis points of operating margin decline when revenues are down 10%. Obviously, we're down significantly more than that, but we'll continue to perform basically in line with that model.

不，我認為這基本上是——我們的表現符合模型，對吧？因此，如果你看看正在發生的事情，顯然，你會看到 ESI 顯著連續下降，這符合預期。但如果你對此進行調整，從收入的角度來看，你會發現核心業務出現了十幾歲左右的下降。我們討論了一個下行模型，該模型考慮當收入下降 10% 時營業利潤率下降 300 到 400 個基點。顯然，我們的下降幅度遠大於此，但我們將繼續基本上按照該模型執行。

We've taken significant actions. Our cost actions started last year and enabled us to deliver record operating margins on flat revenue in an inflationary environment. And then this quarter, as it started to begin to appear that the recovery was pushing out, we've taken incremental actions that are going to benefit us. We now expect that total OpEx for the company will be down low single digits on a year-over-year basis prior to the addition of ESI, and all of that reduction is going to show up in the SG&A line items as we like to strike a balance between investment and financial performance. We're going to maintain our investments in R&D. We'd expect R&D to be flat. But again, total OpEx down about 3%, driven by actions we've taken to control SG&A.

我們已經採取了重大行動。我們從去年開始採取成本行動，使我們能夠在通膨環境下以穩定的收入實現創紀錄的營業利潤。然後在本季度，隨著復甦開始顯現，我們採取了漸進的行動，這將使我們受益。我們現在預計，在添加 ESI 之前，公司的總營運支出將同比下降較低的個位數，並且所有這些減少都將體現在 SG&A 行項目中，正如我們所希望的那樣投資與財務績效之間的平衡。我們將維持對研發的投資。我們預計研發將持平。但在我們為控制 SG&A 採取的行動的推動下，總營運支出再次下降了約 3%。

Okay. And then just a quick one on -- how is auto demand holding up in this environment, EV, AV charging?

好的。然後快速介紹一下——在這種環境下，汽車需求、電動車、自動駕駛汽車充電的需求如何？

Yes. Adam, in the quarter, we saw continued R&D spend for battery and charging infrastructure. We expect that to continue. Manufacturing spend, supply chain spend was down. You've seen unit volumes drop for both conventional and EV demand. So that's where we see that. But e-mobility, which is EV and autonomous, as Neil mentioned, as I mentioned, the funnel remains strong, very robust as we look at Q2 into FY '24. A lot of this is long-dated program spend around battery test, charging infrastructure. Some of these product -- or programs are fluid. So many of them are based on some government subsidies that you may have read have been delayed in Europe and so forth. So -- but we're tied into all of those. And as we look forward, this space continues to be one that's going to be driving growth for us for a long time.

是的。亞當，本季我們看到電池和充電基礎設施的研發支出持續增加。我們預計這種情況會持續下去。製造支出、供應鏈支出下降。您已經看到傳統和電動車需求的單位銷售量都下降了。這就是我們所看到的。但電動車，即電動車和自動駕駛汽車，正如尼爾所提到的，正如我所提到的，當我們展望 24 財年第二季度時，該漏斗仍然強勁、非常強勁。其中很大一部分是圍繞電池測試、充電基礎設施的長期計畫支出。其中一些產品或程序是可變的。其中許多都是基於一些政府補貼，您可能已經讀到這些補貼在歐洲等地區已被推遲。所以——但我們與所有這些都息息相關。展望未來，這一領域將繼續成為長期推動我們成長的領域。

And also, some of the capabilities that we have developed around electrification are finding new applications in aerospace and defense and other end markets that are also going to be impacted by the similar trends. And so we're quite pleased by the leverage and synergies we'll see as we move forward.

此外，我們圍繞電氣化開發的一些功能正在航空航太、國防和其他終端市場中找到新的應用，這些市場也將受到類似趨勢的影響。因此，我們對前進過程中將看到的影響力和協同效應感到非常高興。

The next question is from Tim Long with Barclays.

下一個問題來自巴克萊銀行的提姆朗。

I wanted to ask one on the wireless business. Can you just kind of run through some of the technologies and give us a sense how they might be influencing the business? Just curious, you mentioned the [5GPP] standards. What's on the come there? Anything new with millimeter wave or 6G or O-RAN? If you could just kind of give us a little state of the union on those? And then I have a follow-up.

我想詢問一位有關無線業務的問題。您能否簡單介紹一下一些技術，讓我們了解它們可能如何影響業務？只是好奇，您提到了 [5GPP] 標準。到那裡來有什麼事嗎？毫米波、6G 或 O-RAN 有什麼新內容嗎？您能否向我們簡單介紹一下這些方面的情況？然後我有一個後續行動。

Yes, we'll do, Tim. I think at the highest level, what we have seen so far is the Release 15 and 16 deployments that have occurred largely in the United States and in China and now in India. So we expected, and we've talked about this, that the industry capital would peak at some point in '22, '23. So roughly, we got that timing right.

是的，我們會的，提姆。我認為在最高層面上，我們迄今為止看到的是版本 15 和版本 16 的部署，這些部署主要發生在美國和中國，現在又發生在印度。所以我們預計，並且我們已經討論過這一點，行業資本將在 22 年、23 年的某個時候達到頂峰。粗略地說，我們的時機是對的。

But if you think about the business model that we established for commercial comms and for our wireless business, it was always about more vectored to service the R&D customers. So while even in this environment the volumes are down, especially the manufacturing, production-related volumes, with the RAN markets down. So we're starting to see that effect in the businesses normalizing. But what we're continuing to see is customers engage with us in buying upgrades for the release libraries, so going from 15, 16 to 17, as an example, which is much more evolutionary in nature.

但如果你考慮我們為商業通訊和無線業務建立的商業模式，你會發現它總是更注重為研發客戶提供服務。因此，即使在這種環境下，隨著 RAN 市場的下滑，銷量也會下降，尤其是製造、生產相關的銷量。因此，我們開始在業務正常化中看到這種影響。但我們繼續看到的是客戶與我們互動購買版本庫的升級，例如從 15、16 到 17，本質上更具進化性。

But as we think about the future now, the road map is very clear. It's sort of a road map for the next 5 years where the industry is working on Release 18, Release 19, followed by 20, which would include some early study items on 6G, as an example. But some of the same ideas that we had for growth, which are built around vertical industry expansions with AI/ML, new device form factors, such as the Vision Pro that's just launched that's capturing a lot of imagination on what augmented reality can mean in the future. And just the sort of the integration, I should say, of satellite communications and [telcel] networks is opening up new threads of innovation and exposing us to more customers that want our capability.

但當我們現在思考未來時，路線圖非常清晰。這是未來 5 年的路線圖，業界正在開發第 18 版、第 19 版，然後是第 20 版，其中包括一些關於 6G 的早期研究計畫。但我們對成長的一些相同的想法是圍繞人工智慧/機器學習的垂直行業擴張、新設備外形因素構建的，例如剛推出的Vision Pro，它激發了人們對擴增實境在行業中的意義的大量想像力。未來。我應該說，衛星通訊和 [telcel] 網路的這種整合正在開闢新的創新路線，並使我們接觸到更多需要我們能力的客戶。

So all in all, in balance, I look at the capabilities we have, our market leadership position that we've established in 5G, and I feel confident that post normalization of this demand that we can return the business to growth even prior to 6G. That's yet to play out, but that's our thinking at this point.

因此，總而言之，我會考慮我們擁有的能力以及我們在 5G 中建立的市場領導地位，並且我相信，在這種需求正常化後，我們甚至可以在 6G 之前使業務恢復成長。這還沒結束，但這就是我們目前的想法。

Okay. Great. And then I just wanted to follow up on the optical side. It sounds like 400 and 800 gig are pretty strong. Could you talk a little bit about what you're seeing on R&D for the cycle beyond that? And also curious about what's going on in the software side, Ixia and some of the other software businesses related to optical wireline.

好的。偉大的。然後我只想在光學方面進行跟進。聽起來 400 和 800 gig 相當強大。您能否談談您對除此之外的周期的研發的看法？我也對軟體方面的進展感到好奇，Ixia 和其他一些與光纖線路相關的軟體業務。

Yes. I think what we are seeing is obviously the first instantiation with every technology like this where 100 gig times, 400 gig times 8 sort of topologies are currently being -- are being deployed. And so we're obviously engaged with that, and we're starting to benefit from that. But the road map is clear, right, then it's going to get to 200 times 4 because the scaling continues and leading to even higher speed research in 1.6 terabits and beyond. So that's on the wireline side.

是的。我認為我們所看到的顯然是此類技術的第一個實例，目前正在部署 100 次、400 次、8 種拓撲。因此，我們顯然正在參與其中，並且我們開始從中受益。但路線圖很明確，對吧，然後它將達到 200 乘以 4，因為擴展仍在繼續，並導致 1.6 太比特及以上的更高速度的研究。這是有線方面的。

The Ixia business or what was Ixia business, we -- it's integrated into our wireline business. And it's been remarkably stable for us in the commercial communications market because of the higher services and software content associated with that business. And it's also a business that doesn't really trend up that significantly during upcycles. So it's been a very steady business for us and one where now we're able to take out some of the traffic generation capabilities and adapt it to go address some of the emerging AI use cases. So we're quite pleased by the assets we have in the company and by our ability to go and solve customer emerging challenges even beyond the traditional segments we serve.

Ixia 業務或 Ixia 業務，我們將其整合到我們的有線業務中。由於與該業務相關的更高的服務和軟體內容，我們在商業通訊市場上一直非常穩定。而且這也是一個在升級週期中並沒有真正顯著成長的業務。因此，這對我們來說是一項非常穩定的業務，現在我們能夠利用一些流量產生功能並對其進行調整，以解決一些新興的人工智慧用例。因此，我們對公司擁有的資產以及我們解決客戶新興挑戰的能力（甚至超越我們服務的傳統細分市場）感到非常滿意。

The next question is from the line of Aaron Rakers with Wells Fargo.

下一個問題來自富國銀行的 Aaron Rakers。

I have two as well. Neil, I wanted to go back to your prior comments on kind of backlog. I know last quarter -- last couple of quarters, you've talked about these longer-dated backlog or order dynamics. And I think even last quarter, you quantified it at like $400 million. Could you give us an update how much of your backlog today is kind of these longer-dated deals? And could we consider them as kind of large lumpy deals that possibly, rev rec-wise, show up late this year into more so '25? Or how do we just think about that?

我也有兩個。尼爾，我想回到您之前關於積壓的評論。我知道上個季度 - 過去幾個季度，您談到了這些較長期的積壓或訂單動態。我認為即使在上個季度，您也將其量化為 4 億美元。您能否告訴我們最新的情況，您今天的積壓訂單中有多少是這些較長期的交易？我們是否可以將它們視為某種大型的、不穩定的交易，就轉速而言，可能會在今年稍後出現到 25 世紀？或者我們如何思考這個問題？

Yes. From a backlog perspective, we're in the $400 million to $500 million range of our backlog is these long-dated deals. You are correct that they tend to be larger, lumpier deals in aerospace, defense, auto and even in the semi space. And as I said on the previous question about this, we've actually started to see them now because we started to see the ramp in a little bit in Q1 of last year, but then really in earnest in Q2 of last year on the order line. And some of those things are starting to flow through to revenue now. Now we're not at 8% yet from a revenue perspective. We expect to be there by the end of the year. But just as you suggested, it is lumpy, right? So you could end up in a situation where there is relatively lower either order or revenue activity from these types of transactions and then some other quarter, you might have double activity just given the nature of the business.

是的。從積壓訂單的角度來看，這些長期交易的積壓金額在 4 億至 5 億美元之間。你是對的，在航空航太、國防、汽車甚至半太空領域，它們往往是規模更大、更不穩定的交易。正如我在上一個問題中所說的那樣，我們現在實際上已經開始看到它們，因為我們在去年第一季開始看到了一點點的增長，但在去年第二季度真正認真地看到了訂單線。其中一些現在開始轉化為收入。現在從收入角度來看我們還沒有達到 8%。我們預計將在今年年底到達那裡。但正如你所建議的，它是塊狀的，對嗎？因此，您最終可能會遇到這樣的情況：這些類型的交易的訂單或收入活動相對較低，然後在其他季度，考慮到業務的性質，您可能會出現雙倍的活動。

Yes. That's helpful, Neil. And then as a second question, I wanted to go back to the AI networking discussion. Clearly, a lot of focus here. But a lot of focus on the wireline side is this 400, 800 transition towards Ethernet versus InfiniBand. I'm curious to Keysight's positioning. Is there a disproportionate position around Ethernet and the deployment cycle of back-end AI networks based on Ethernet versus InfiniBand? Or is it maybe not such that we should delineate between the 2 for the company?

是的。這很有幫助，尼爾。作為第二個問題，我想回到人工智慧網路討論。顯然，這裡有很多焦點。但有線方面的許多關注點是 400、800 向乙太網路與 InfiniBand 的過渡。我很好奇是德科技的定位。與InfiniBand相比，乙太網路的地位以及基於乙太網路的後端AI網路的部署週期是否存在不相稱的情況？或者我們不應該為公司區分兩者？

Yes. I think for us, we don't try to pick winners. In some ways, innovation is best served when you have multiple competing technologies approach the same challenge. But fundamentally, data is growing. The pattern of data through these networks are altering and changing, which requires the communication systems to adapt. And I think all the way from memory to network -- NIC cards, to compute architectures are getting more heterogenous, if you will. So more standards -- I talked about CXL, Ultra Ethernet Consortium, PCIe gen 7, et cetera. So all of that really creates a real good bed of technologies for us to service through our platforms. And often, it's the same underlying platform -- I missed out USB 4. But often, it's the same sort of underlying platforms that we have with -- from all the way from oscilloscopes to our BERTs to our network traffic emulators from our Ixia acquisition. So we tend to go approach these things and then add in more software capabilities as we move forward.

是的。我認為對我們來說，我們不會試圖挑選贏家。在某些方面，當你有多種競爭技術來應對相同挑戰時，創新才能得到最好的服務。但從根本上來說，數據正在成長。通過這些網路的數據模式正在改變和變化，這需要通訊系統進行適應。我認為，如果你願意的話，從記憶體到網路——NIC 卡，再到運算架構，一切都變得更加異質。更多標準——我談到了 CXL、超以太網聯盟、PCIe gen 7 等等。因此，所有這些確實為我們透過我們的平台提供服務創造了一個真正良好的技術基礎。通常，它是相同的底層平台 - 我錯過了 USB 4。但通常，它與我們擁有的底層平台相同 - 從示波器到我們的 BERT，再到我們收購 Ixia 的網路流量模擬器。因此，我們傾向於處理這些事情，然後隨著我們的進展添加更多的軟體功能。

We're actually quite pleased with the performance and the resilience of our software business even through these times. And software and services represents roughly now 40% of the total order/revenue in the most recent quarter. And we'll continue to keep growing the value of the company. Our ARR was also up double digits this quarter.

事實上，即使在這些時期，我們對軟體業務的效能和彈性也非常滿意。軟體和服務目前約佔最近一個季度總訂單/收入的 40%。我們將繼續不斷增加公司的價值。本季我們的 ARR 也成長了兩位數。

The next question is from Matt Niknam with Deutsche Bank.

下一個問題來自德意志銀行的 Matt Niknam。

Just maybe unpacking the guide for fiscal 2Q. Are you anticipating modest sequential pressure across the board? Or are there any pockets in the business where you may be anticipating or seeing some level of sequential improvements in the fiscal second quarter?

也許只是解開第二財季的指南。您預計整體上會出現適度的連續壓力嗎？或者您可能會預期或看到第二財季業務中的某些部分會出現一定程度的連續改善？

And then maybe just secondly, in terms of -- we talked a lot about wireline. I'm just wondering on the wireless side, expectations for that business this year, simply given maybe some green shoots we're reading about and also the fact that, that seem to be a business that maybe started seeing the downturn a little bit sooner. So I'm just wondering if there's any additional color you can share in terms of expectations for the year.

然後也許只是第二，就有線而言，我們談了很多。我只是想知道在無線方面，今年對該業務的期望，只是考慮到我們正在讀到的一些萌芽，以及事實上，這似乎是一個可能會更早開始看到低迷的業務。所以我想知道您是否可以分享對今年的期望的任何其他顏色。

Yes. I'll take the second part, and then I'll have Mark sort of walk through his thinking on the pipeline, which really impact -- I mean, which really flow into our guide, if you will. On the wireless side, I think we're continuing to expect stability and moderation as it comes off of strong peak demand years in '21 and '22. So that normalization phase continues to play out over the next couple of quarters, and that's sort of our base case thinking on wireless. All of the R&D activity that I described continues on, but we're still waiting for any inflection in component spend, which we're not seeing at this point. So that slowed up our expectations on wireless. And I'll just have Mark make comments on the pipeline.

是的。我將討論第二部分，然後我將讓馬克介紹他對管道的想法，這確實產生了影響——我的意思是，如果你願意的話，這確實會流入我們的指南。在無線方面，我認為我們將繼續期待穩定和適度，因為它已經擺脫了 21 和 22 年的強勁需求高峰。因此，正常化階段將在接下來的幾季繼續進行，這就是我們對無線的基本案例思考。我描述的所有研發活動仍在繼續，但我們仍在等待組件支出的任何變化，但目前我們還沒有看到這種變化。因此，這降低了我們對無線的期望。我會讓馬克對管道發表評論。

Yes. And Matt, I think it's more of the same what we've been speaking about in terms of the markets that are driving growth. I expect aerospace, defense to continue to be an area of -- driving growth for us, not only in the U.S., but in Europe and other countries that are faced with the geopolitical situation that exists today. We are operating under continuing resolution in the U.S., which we're expecting that budget to be signed this quarter, which is favorable for us in terms of the RDT&E line items that are getting bipartisan support to progress through this election year. So that seems to be an area for us. And then the defense modernization, as we've already touched around, there's multiple areas of innovation that involve long-term, short-term programs with the prime contractors, again, around EMSO space crossing over into the commercial sector. So there's a lot of vectors within what we would traditionally call aerospace and defense.

是的。馬特，我認為這與我們一直在談論的推動成長的市場更加相似。我預計航空航天和國防將繼續成為推動我們成長的一個領域，不僅在美國，而且在歐洲和其他面臨當今地緣政治局勢的國家。我們在美國根據持續的決議開展業務，我們預計預算將於本季度簽署，這對我們的 RDT&E 項目有利，這些項目得到了兩黨的支持，以在今年的選舉年取得進展。所以這似乎是我們的一個領域。然後是國防現代化，正如我們已經談到的，有多個創新領域，涉及與主承包商的長期、短期項目，再次圍繞電磁頻譜支持空間跨入商業領域。因此，我們傳統上所說的航空航太和國防領域有許多向量。

Wireline, as we just spent a lot of time talking about, continues to provide opportunities for us to grow. And then I think as we've mentioned, the automotive funnel, which is quite robust, has programs that are crossing into the next several 3 quarters, and we are actively engaged with all of those. So I expect that to be a driver of growth for us as well. And we'll watch it and take it a quarter at a time with the headwinds that we're currently experiencing at manufacturing and on semiconductor. But as we mentioned, we saw some growth around memory. That's an early indicator that typically goes first. We expect that to continue to be an area of strength. And of course, we're watching very closely the status of these additional fabs that are in the process of being built out in various places around the world.

正如我們剛才花了很多時間談論的那樣，有線繼續為我們提供成長的機會。然後我認為，正如我們所提到的，汽車漏斗非常強大，有跨越未來幾個三個季度的計劃，我們正在積極參與所有這些計劃。因此，我預計這也將成為我們成長的動力。我們將對其進行觀察，並考慮到我們目前在製造和半導體領域遇到的不利因素，一次一個季度地進行一次。但正如我們所提到的，我們看到了記憶體方面的一些成長。這是一個通常首先出現的早期指標。我們預計這將繼續成為一個優勢領域。當然，我們正在密切關注世界各地正在建造的這些額外晶圓廠的狀況。

The next question is from the line of Mehdi Hosseini with Susquehanna.

下一個問題來自邁赫迪·胡賽尼 (Mehdi Hosseini) 和薩斯奎哈納 (Susquehanna) 的路線。

First one for Neil. I just want to better understand the organic change in your revenue. Assuming $60 million from ESI in the January quarter and then about $25 million in the April quarter, the decline in organic revenue on a sequential basis is only 2 percentage. Is that correct?

第一個是給尼爾的。我只是想更了解您收入的有機變化。假設一月份季度來自 ESI 的收入為 6000 萬美元，四月份季度的收入約為 2500 萬美元，那麼有機收入環比下降幅度僅為 2%。那是對的嗎？

It was -- ESI was $67 million, $68 million in Q1, a little higher, and so I think the revenue decline Q1 to Q2 in the core is -- still rounds to 1. It's just a tick over 1.

ESI 為 6700 萬美元，第一季為 6800 萬美元，略高一些，所以我認為第一季到第二季的核心收入下降仍然四捨五入為 1。僅比 1 稍稍高一些。

Sure. So perhaps maybe the expectation was for a different contribution from ESI and maybe a little bit better than expected trend with the organic, but the ESI is making some compares difficult. Would you agree?

當然。因此，也許人們期望 ESI 做出不同的貢獻，並且可能比有機趨勢的預期好一點，但 ESI 使一些比較變得困難。你同意嗎？

Yes. I mean ESI -- first of all, ESI was great in Q1. It was significantly 10% or more above our expectation going into the quarter. They saw strong renewal activity as expected with some good upsizing of transactions and other things that drove that revenue nicely. The sequential decline in ESI is totally as expected. We talked about it last quarter, that 40% to 45% of their orders and revenue are falling because the renewal schedules fall in Keysight's first quarter, but it does make the compares a bit more challenging when looking at the combined entity.

是的。我的意思是 ESI——首先，ESI 在第一季表現出色。這比我們進入本季的預期高出 10% 或更多。正如預期的那樣，他們看到了強勁的續約活動，交易規模擴大以及其他因素也很好地推動了收入。 ESI環比下降完全符合預期。我們在上個季度談過，由於是德科技第一季的續訂時間表下降，他們的訂單和收入下降了40% 到45%，但這確實使合併後的實體的比較更具挑戰性。

Right, right. Okay. Don't want to come across [as a cheetah], but I think these compares get a little bit murky looking to April versus January. Looking into July and October, obviously, your comments suggest maybe April, July will be the bottom and a modest recovery in October. So the question for Satish is, what do you think the driver behind that modest rebound would be? And why should we assume acceleration in that rebound into FY '25? The 5G is behind us, but what are some of the other key drivers that would give you confidence that the modest rebound should follow by acceleration? Unless you tell me it's just going to be a modest improvement into FY '25.

是的是的。好的。不想給人留下[作為獵豹]的印象，但我認為四月與一月的比較有點模糊。展望 7 月和 10 月，顯然，您的評論表明 4 月、7 月可能會觸底，10 月將出現溫和復甦。因此，薩蒂什的問題是，您認為溫和反彈背後的驅動因素是什麼？為什麼我們應該假設 25 財年反彈會加速？ 5G 已經過去，但還有哪些其他關鍵驅動因素可以讓您相信，溫和的反彈會伴隨著加速？除非你告訴我，這只是 25 財年的小進步。

Yes. The profile -- the timing and the profile of the recovery, Mehdi, as you can appreciate, is hard to really quantify or analytically quantify for you at this point. But let me give you some subjective color on what we're seeing. I think we're seeing continued strength in aerospace, defense. Mark touched upon that. The trends are on defense modernization. The new emulation solutions are continuing to proliferate through that ecosystem. And given the sort of national security emphasis that's playing out, we think that's on a sure track.

是的。正如您所理解的，邁赫迪（Mehdi）的概況——復甦的時間和概況，目前很難真正量化或分析量化。但讓我給你一些我們所看到的主觀色彩。我認為我們看到航空航太和國防領域持續強大。馬克談到了這一點。趨勢是國防現代化。新的模擬解決方案正在該生態系中不斷擴散。考慮到當前對國家安全的重視，我們認為這是一個確定的軌道。

We also have seen the 5G platform that we have get into some of the more defense-related applications, and we announced a collaboration, as an example, with Lockheed Martin. So we look at that -- we look at the pipeline of opportunities that Mark referenced and feel good about the aerospace and defense. And typically, as you would expect, our aerospace, defense has the strongest quarter in quarter 4. So that's one part of the equation.

我們也看到了 5G 平台已進入一些與國防相關的更多應用，例如，我們宣布與洛克希德馬丁公司合作。因此，我們著眼於這一點——我們著眼於馬克提到的一系列機會，並對航空航天和國防領域感到滿意。通常，正如您所期望的那樣，我們的航空航太和國防業務在第四季度表現最強勁。這就是等式的一部分。

The other thing is what we're hearing from some of our semiconductor customers as the fab companies coming out and laying out their plans for '25, is they're all planning for a pretty strong '25 capital environment around next-generation 2-nanometer technology and some of the new investments around power semiconductor and silicon photonics and other areas. And so we would expect some uptick there in our semi business, which has been depressed by the time we roll out in Q4 and entering into Q1. So it's hard to really time it on a quarterly basis, but that's sort of the horizon that we would expect.

另一件事是我們從一些半導體客戶那裡聽到的消息，當晶圓廠公司出來製定他們的 25 年計劃時，他們都在計劃圍繞下一代 2- 打造一個相當強大的 25 資本環境。奈米技術以及一些圍繞功率半導體和矽光子等領域的新投資。因此，我們預計我們的半成品業務會出現一些成長，而當我們在第四季度推出並進入第一季時，該業務一直處於低迷狀態。因此，很難真正按季度進行計時，但這是我們所期望的範圍。

We would expect the wireline business to largely continue to perform well because the drivers on AI continue to remain robust. And then wireless, I would -- I'm just factoring in a pretty gradual recovery as we go through the year. So that's sort of our base case. Now there is this whole macro, what does the macro do? And if the global PMI improves quicker, then maybe there's some upside in our general electronics business. But we're, at this point, just assuming that there isn't this big broad recovery this year or in this fiscal year anyway. We would assume that second half is just modestly bigger in business than the first half.

我們預計有線業務將在很大程度上繼續表現良好，因為人工智慧的驅動因素持續保持強勁。然後是無線，我只是考慮到這一年的復甦會相當緩慢。這就是我們的基本情況。現在整個巨集已經有了，這個巨集是做什麼的？如果全球 PMI 改善得更快，那麼我們的一般電子業務可能會有一些上漲空間。但目前我們只是假設今年或本財年不會出現如此大規模的復甦。我們假設下半年的業務量比上半年稍大。

But again, if we go back and look at the situation as we take it a step back, last year was the first year where orders declined double digits. We were still able to use our backlog to deliver a revenue -- a stronger revenue -- I mean, at least an upside revenue and strong profitability. So now we're coming off of that. This will be the second year when if orders don't rebound, we would expect a strong rebound from our experience historically running this business.

但同樣，如果我們回頭看看情況，去年是訂單出現兩位數下降的第一年。我們仍然能夠利用我們的積壓訂單來創造收入——更強勁的收入——我的意思是，至少有上升的收入和強勁的盈利能力。所以現在我們要擺脫這個困境了。這將是第二年，如果訂單沒有反彈，我們預計從我們歷史上經營這項業務的經驗來看，將會出現強勁反彈。

The next question is from David Ridley-Lane with Bank of America.

下一個問題來自美國銀行的 David Ridley-Lane。

One of the hallmarks of Keysight has been the ability to continue to invest organically and inorganically through cycles. How do you see R&D spending and also your appetite for additional M&A this year?

是德科技的標誌之一是能夠透過週期持續進行有機和無機投資。您如何看待今年的研發支出以及您對額外併購的興趣？

Yes. Thank you. I think, first and foremost, I would say from an organic -- we're an organic-first company. We believe in taking a long-term view of our markets. And what's changed since we formed Keysight is our organization that is focused on customers. So we're getting strong validation around our investments with our customers. So partnerships and collaborations are key to how we are able to realize the full value of our organic investments. So we feel very good about where we are focused on from a portfolio perspective and our ability to drive long-term organic growth.

是的。謝謝。我認為，首先，我想說的是，我們是一家有機優先的公司。我們相信對我們的市場要有長遠的眼光。自從我們成立是德科技以來，發生的變化是我們的組織以客戶為中心。因此，我們的投資得到了客戶的強而有力的驗證。因此，夥伴關係和協作是我們實現有機投資全部價值的關鍵。因此，從投資組合的角度來看，我們對自己關注的領域以及推動長期有機成長的能力感到非常滿意。

Now having said that, I laid out at Investor Day 4 or 5 areas where we are looking at some expansion opportunities. Some of them were pursuing organically as well, but we're also looking at our pipeline from an M&A perspective and looking for opportunities where we can create a good return on investment for our shareholders. You've seen us be incredibly disciplined as we have pursued these opportunities. We walked away from deals where we thought we couldn't get a good return. And so you can expect that even as we pursue these opportunities and look at the pipeline, we will stay disciplined as we go through this -- as we go through the evaluation.

話雖如此，我在投資者日 4 或 5 中列出了我們正在尋找一些擴張機會的領域。他們中的一些人也在追求有機發展，但我們也在從併購的角度審視我們的管道，並尋找可以為股東創造良好投資回報的機會。您已經看到我們在追求這些機會時表現得非常自律。我們放棄了那些我們認為無法獲得良好回報的交易。因此，您可以預期，即使我們在尋求這些機會並審視管道時，我們也會在進行評估時保持紀律。

And I'll just add one additional bit of color on the R&D side. We stayed very disciplined in the period of time in '21 and '22 where revenues were growing at a high level of rate. We underspent our R&D target of 16.5% of revenue. That continued into '23. What that enables us to do now in '24 is maintain R&D investments basically flat. As I said in my earlier comments, that will take R&D up above that 16.5% target 100% of revenue basis, but it will allow us to continue our investments to make sure that we're full participants in the eventual upturn.

我將在研發方面添加一點額外的色彩。在 21 年和 22 年期間，我們保持了非常嚴格的紀律，收入高速成長。我們的研發支出低於收入 16.5% 的目標。這種情況一直持續到23年。這使我們在 24 年能夠做的就是保持研發投資基本持平。正如我在先前的評論中所說，這將使研發佔收入的 16.5% 目標高於 100%，但這將使我們能夠繼續投資，以確保我們完全參與最終的復甦。

Great. And then just a quick follow-up. How are you working on getting the ESI and Keysight sales forces aligned and prioritizing which customers to go after on a joint basis? And am I right in thinking just similar to other software companies, it takes 6 to 9 months to build the pipeline and then another 6 months to close, so those benefits, we should think of showing up maybe in fiscal '25?

偉大的。然後進行快速跟進。您如何努力讓 ESI 和是德科技銷售團隊保持一致，並確定共同服務的客戶的優先順序？我的想法是否正確，就像其他軟體公司一樣，需要 6 到 9 個月的時間來建立管道，然後再花 6 個月的時間來關閉，所以這些好處，我們應該考慮在 25 財年顯現出來？

Yes. I think ESI had -- was well on a track of transforming the business to growth. And our first priority is to continue to support that base plan, and that's baked into '24. But in a targeted way, Mark and his team have already started to engage to take those capabilities and apply them to our aerospace and defense customer base in the U.S. as a first order of priority. But as I've gotten to know that portfolio, what gives me excitement is their core technologies around hybrid AI, which I think could find a broader leverage into other Keysight applications to accelerate our pursuits. But that's with time. Our #1 priority is to stabilize, integrate and basically keep your base plan on track, and I think they're off to a good start.

是的。我認為 ESI 已經走在將業務轉變為成長的軌道上。我們的首要任務是繼續支持該基本計劃，該計劃已納入「24 年」。但馬克和他的團隊已經開始有針對性地利用這些能力，並將其作為首要任務應用於我們在美國的航空航太和國防客戶群。但隨著我對這個產品組合的了解，讓我興奮的是他們圍繞混合人工智慧的核心技術，我認為這些技術可以更廣泛地利用到其他是德科技應用程式中，以加速我們的追求。但這是隨著時間的推移。我們的第一要務是穩定、整合並基本上保持你的基本計劃走上正軌，我認為他們有了一個很好的開始。

The next question is from Rob Mason with Baird.

下一個問題是 Rob Mason 和 Baird 提出的。

Neil, I wanted to go back to the conversation. You pointed out the operating model performing as expected on the downside operating margin on a year-over-year basis. Is there anything that you'd call out sequentially impacting operating margins? It just looks like the sequential deleverage is a little high, if I'm doing my math correctly -- higher.

尼爾，我想回到剛才的話題。您指出，營運模式的表現符合預期，但營運利潤率較去年同期下降。您認為有哪些因素會依序影響營業利益率？如果我計算正確的話，順序去槓桿化看起來有點高——更高。

Yes. It's a good question. And there are a few things. So first of all, we had very favorable mix within the quarter in Q1, not just because ESI was in at $67 million or $68 million of revenue on software. But even within the Keysight classic portion of the business, we were north of 66%, so very favorable in the core as well. We do not expect to be -- mix to be as favorable next quarter as it was or frankly, probably for the rest of the year. Mix is unlikely to be as favorable as it was in the first quarter. And the other thing would be from an OpEx perspective, we do expect Q2 OpEx to be seasonally higher, that is typical. And the single biggest factor to that is PTO usage. PTO usage is the lowest in the second quarter of our fiscal year, and that's enough to drive a measurable increase in OpEx as we move from Q1 to Q2.

是的。這是一個好問題。還有一些事情。首先，我們在第一季的季度內擁有非常有利的組合，不僅僅是因為 ESI 的收入為 6,700 萬美元或軟體收入為 6,800 萬美元。但即使在是德科技經典業務部分，我們的佔有率也超過了 66%，因此在核心業務方面也非常有利。我們預計下個季度的混合情況不會像以前那樣有利，或者坦白說，可能在今年剩餘時間裡也不會如此有利。混合情況不太可能像第一季那樣有利。另一件事是從營運支出的角度來看，我們確實預計第二季的營運支出會季節性上升，這是典型的。其中最大的一個因素是 PTO 的使用。 PTO 使用率是本財年第二季的最低水平，足以推動營運支出在第一季進入第二季時出現可衡量的成長。

It might also be worth highlighting our confidence in both the operating cash flow performance and also the free cash flow conversion. We had 98% of net operating profit this quarter. So we feel good about the cash flow generation capabilities as we navigate this near-term downturn in our markets.

也許也值得強調我們對經營現金流表現和自由現金流轉換的信心。本季我們的淨利潤為 98%。因此，當我們應對市場近期的低迷時，我們對現金流產生能力感到滿意。

Yes. Certainly. Just as a second question. There's -- during the quarter, we saw more, I guess, some of your EDA and simulation participants in the market converging. I know Keysight has some strategic partnerships with some of the players involved there. I'm just curious how you think consolidation around those areas affects your opportunity. And maybe you could speak to any of the test layers that would be more impacted or not. And really just kind of getting at how do you define Keysight's moat in this backdrop where you're seeing some of the simulation converge?

是的。當然。正如第二個問題。我想，在本季度，我們看到市場上的一些 EDA 和模擬參與者正在融合。我知道是德科技與其中的一些參與者建立了一些策略夥伴關係。我只是好奇您認為這些領域的整合如何影響您的機會。也許您可以與任何受影響或不受影響的測試層交談。實際上只是想了解在這種背景下您如何定義是德科技的護城河，在這種背景下您會看到一些模擬融合？

Yes. I think when we think about the markets, we're approaching it, obviously, from tests to emulation to simulation, and we're connecting the workflow there. In many ways, we collaborate with all of the players that have been on record and we have a relationship with them, so that we can offer a good workflow experience for customers. And this has long been a market where there's been good interplay between the tools because just like Keysight is an engineering company, we are also a customer of a number of these tools, and it's hard to standardize on one tool or the other because each of them have different focus areas and different strategies.

是的。我認為，當我們考慮市場時，顯然我們正在接近它，從測試到模擬再到模擬，並且我們正在連接那裡的工作流程。在許多方面，我們與所有有記錄的參與者合作，並與他們建立了關係，以便我們可以為客戶提供良好的工作流程體驗。長期以來，這個市場的工具之間一直存在著良好的相互作用，因為就像是德科技是一家工程公司一樣，我們也是許多此類工具的客戶，並且很難對一種工具或另一種工具進行標準化，因為每種工具他們有不同的重點領域和不同的策略。

So when we piece it together, we don't view this as necessarily a big impact to our plans. We, in fact, are continuing to progress our system simulation, emulation strategy and SAM expansion. And with ESI in the company, we have more capabilities to drive that strategy moving forward.

因此，當我們將其拼湊在一起時，我們並不認為這一定會對我們的計劃產生重大影響。事實上，我們正​​在繼續推進我們的系統模擬、模擬策略和 SAM 擴展。有了 ESI 的加入，我們就有了更多的能力來推動這項策略的發展。

There are no further questions in queue. With that, I would like to turn the call back over to Jason for concluding remarks.

隊列中沒有其他問題。至此，我想將電話轉回傑森進行總結發言。

Thanks, Joel, and thanks, everyone, for joining us today. We look forward to talking to you later this quarter and wish you a good day.

謝謝喬爾，也謝謝大家今天加入我們。我們期待本季稍後與您交談，並祝您有美好的一天。

That concludes today's conference call. Thank you for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。