是德科技 (KEYS) 2025 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Keysight Technologies fiscal second-quarter 2025 earnings conference call. My name is [Tamia], and I will be your lead operator today. (Operator Instructions) This call is being recorded today, Tuesday, May 20, 2025, at 1:30 PM Pacific Time.

女士們、先生們，大家好，歡迎參加是德科技 2025 財年第二季財報電話會議。我的名字是 [Tamia]，今天我將擔任您的首席接線生。（操作員指示）本次通話於今天，即 2025 年 5 月 20 日星期二，太平洋時間下午 1:30 進行錄音。

I would like to hand the call over to Paulenier Sims, Director of Investor Relations. Please go ahead, Ms. Sims.

我想把電話交給投資者關係總監 Paulenier Sims。請繼續，西姆斯女士。

Thank you and welcome, everyone, to Keysight's second-quarter earnings conference call for fiscal year 2025. Joining me are Keysight's President and CEO, Satish Dhanasekaran; and our CFO, Neil Dougherty.

感謝大家，歡迎大家參加是德科技 2025 財年第二季財報電話會議。與我一起出席的還有 Keysight 總裁兼執行長 Satish Dhanasekaran；以及我們的財務長 Neil Dougherty。

The press release and information to 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 over 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.

新聞稿和補充今天討論的資訊可以在我們的網站 investor.keysight.com 的財務資訊和季度報告下找到。今天的評論將參考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和過去 12 個月內完成的收購或資產剝離的影響。最直接可比較的 GAAP 財務指標和對帳表可在我們的網站上查閱，除非另有說明，所有比較均以同比為基礎。

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 an upcoming Investor Conference hosted by Baird.

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的陳述。這些聲明受風險和不確定性的影響，並且僅在今天有效。我們不承擔更新這些風險的義務，並鼓勵您查看我們最近向美國證券交易委員會提交的文件，以更全面地了解這些風險和其他因素。最後，管理層計劃參加貝爾德即將主辦的投資者會議。

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.

大家下午好，感謝大家今天的參與。

During the second quarter, Keysight delivered revenue of $1.3 billion and earnings per share of $1.70 both of which exceeded the high end of our guidance. This marks the second consecutive quarter of revenue growth driven by continued momentum in CSG and return to growth in EISG. The demand environment was solid in the quarter, with orders growing 8% year over year and 4% sequentially to $1.3 billion. Even as we are monitoring the overall macro environment, we entered the second half with a healthy pipeline of opportunity and strong customer engagements. Neil will have more details on the tariff impact in his remarks.

第二季度，是德科技的營收為 13 億美元，每股收益為 1.70 美元，兩者都超過了我們預期的上限。這是營收連續第二個季度成長，這得益於 CSG 的持續成長和 EISG 的恢復成長。本季需求環境穩健，訂單年增 8%，季增 4%，達到 13 億美元。即使我們正在監控整體宏觀環境，我們仍以健康的機會管道和強大的客戶參與度進入下半年。尼爾將在演講中詳細介紹關稅的影響。

Overall, our business results demonstrate the resilience of our business and the durability of our financial operating model, which is underpinned by a flexible cost structure, supply chain, and operating capabilities that allow us to quickly adapt to external dynamics. As a result of a multi-year investments, we have a diversified global supply chain which is largely based in Southeast Asia with minimal exposure in China.

整體而言，我們的業務成果證明了我們業務的韌性和財務營運模式的持久性，而這種模式的基礎是靈活的成本結構、供應鏈和營運能力，使我們能夠快速適應外部動態。經過多年的投資，我們擁有多元化的全球供應鏈，主要位於東南亞，在中國的影響力較小。

Despite the near-term uncertainty, we're confident in our market leadership, the strength of our operating model, and our ability to generate value for our stakeholders. Our capital allocation priorities have not changed. We are investing for the long term while also pursuing a balanced return of capital enabled by a strong free cash flow conversion. Over the past 12 quarters, we've returned over $1.7 billion or roughly 50% of free cash flow to investors via repurchases.

儘管近期存在不確定性，但我們對我們的市場領導地位、我們營運模式的優勢以及我們為利害關係人創造價值的能力充滿信心。我們的資本配置重點並沒有改變。我們正在進行長期投資，同時也追求透過強勁的自由現金流轉換來實現平衡的資本回報。在過去的 12 個季度中，我們透過回購向投資者返還了超過 17 億美元，約佔自由現金流的 50%。

Turning to business segments. In CSG, Commercial Communications orders grew double digits. Demand remains robust in wireline where the ongoing data center infrastructure expansion is driving all the strength. We saw continued deployment of 400 and 800 gig Ethernet technologies in AI data center applications. R&D investments in 1.6 terabyte electrical and optical technologies, as well as expansion of new protocols in AI data center networks are fueling demand as the entire industry is innovating and developing new applications and services.

轉向業務部門。在南方電網，商業通訊訂單增加了兩位數。有線電視網路的需求仍然強勁，其中資料中心基礎設施的持續擴張是推動其發展的動力。我們看到 400 和 800 千兆乙太網路技術在 AI 資料中心應用中的持續部署。隨著整個產業不斷創新和開發新的應用和服務，對 1.6 TB 電氣和光學技術的研發投資以及 AI 資料中心網路中新協議的擴展正在推動需求。

This quarter at OFFC, we demonstrated the industry's first solution for 448 gig per lane optical transmission, a key building block in the deployment of 1.6 and 3.2 terabit networks. The depth and breadth of Keysight's capabilities in the electrical and optical and wireline protocol stacks positions as well to enable ongoing innovation in high-performance computing, memory, and networking.

本季在 OFFC，我們展示了業界首個每聲道 448 千兆位元光傳輸解決方案，這是部署 1.6 和 3.2 太比特網路的關鍵基石。是德科技在電氣、光學和有線協議堆疊方面的能力的深度和廣度也為高效能運算、記憶體和網路領域的持續創新提供了支持。

Wireless orders grew in Q2. We saw a steady pace of R&D activity related to 5G advanced and early 6G research, as well as investments in non-terrestrial networks. While smartphone supply chain activity remains stable, innovation and investment in R&D in radio access networks continue to grow. Keysight's new digital twin and system emulation capabilities are enabling non-terrestrial applications and expanding our customer engagements.

第二季無線訂單有所成長。我們看到與 5G 先進和早期 6G 研究相關的研發活動以及對非地面網路的投資穩步發展。雖然智慧型手機供應鏈活動保持穩定，但無線接取網路的創新和研發投資仍在持續成長。是德科技的全新數位孿生和系統模擬功能正在實現非地面應用並擴大我們的客戶參與度。

In Aerospace, Defense & Government, orders grew this quarter driven by strength in the US and Europe. Ongoing investment in spectrum operations and space applications drove growth. Although the US will be operating under a continuing resolution for most of the year, overall demand and pipeline of opportunities remains robust with prime contractor backlogs at record levels. Investments in defense modernization remains a top priority for many countries as reflected in the increased budget proposals in the US, Europe, and Asia.

在航空航太、國防和政府領域，受美國和歐洲強勁成長的推動，本季訂單有所成長。對頻譜營運和太空應用的持續投資推動了成長。儘管美國在今年大部分時間都將按照持續決議運行，但總體需求和機會管道依然強勁，主承包商積壓訂單達到創紀錄的水平。國防現代化投資仍然是許多國家的首要任務，這從美國、歐洲和亞洲增加的預算提案中可以看出。

Keysight is a trusted partner in this ecosystem delivering advanced, high-fidelity test capabilities that simulate real-world electronic threats in lab environments. This quarter, Keysight won a notable deal with a major defense agency in Europe to modernize its testing capabilities for antenna radar applications which are key to mission-critical applications. Our innovation pipeline is driving a steady cadence of new products and solutions which this quarter included a higher-frequency extensions to our phase noise analyzer for defense applications and a new digital communications analyzer for 24 gig transceiver test enabling wireline and general-purpose-use cases.

是德科技是這個生態系統中值得信賴的合作夥伴，提供先進的高保真測試功能，可在實驗室環境中模擬現實世界的電子威脅。本季度，是德科技與歐洲一家主要國防機構達成了一項重要協議，以現代化其對天線雷達應用的測試能力，這對於關鍵任務應用至關重要。我們的創新通路正在推動新產品和解決方案的穩定推出，本季包括用於國防應用的相位雜訊分析儀的更高頻率擴展，以及用於 24 千兆收發器測試的新型數位通訊分析儀，支援有線和通用用例。

Turning to Electronic Industrial Solutions Group, the demand environment remains mixed while the revenue returned to growth after six quarters of decline. In semi, the demand for our wafer test solutions from large foundry and IDM customers remains strong. Leading-edge process node investment was augmented by rapid growth in high-bandwidth applications. Customer engagements for silicon photonics, co-packaged optics accelerated within the quarter as the industry works to address performance limitations across latency, bandwidth, and power in the AI data center.

談到電子工業解決方案集團，需求環境仍然喜憂參半，而收入在連續六個季度下滑後恢復成長。在半導體領域，大型代工廠和 IDM 客戶對我們的晶圓測試解決方案的需求仍然強勁。高頻寬應用的快速成長促進了尖端製程節點的投資。隨著業界致力於解決人工智慧資料中心在延遲、頻寬和功率方面的效能限制，本季矽光子學、共封裝光學元件的客戶參與度加速成長。

In automotive, while orders and revenues were down, the business has largely stabilized. Engagements with OEM customers remained steady with investments in software-defined vehicle capabilities, including cybersecurity, radar scene emulation, and Ada chipset development. This quarter we secured a key win with a major automotive OEM for design and test of their home energy management systems. General electronics orders grew for the third consecutive quarter, although at a lower rate. Growth in multi-industrial and medtech customers for both R&D and manufacturing solutions was partially offset by contraction in US education funding and continued normalization in the distribution channel.

在汽車領域，雖然訂單和收入有所下降，但業務已基本穩定。與 OEM 客戶的合作保持穩定，對軟體定義汽車功能進行投資，包括網路安全、雷達場景模擬和 Ada 晶片組開發。本季度，我們與一家大型汽車 OEM 達成了一項重要合作，負責其家庭能源管理系統的設計和測試。通用電子產品訂單連續第三個季度成長，儘管成長率較低。美國教育經費的縮減和分銷管道的持續正常化部分抵消了研發和製造解決方案的多工業和醫療技術客戶的成長。

Moving to software. Design engineering software orders grew double digits reflecting a healthy demand for our RFEDA solutions. We're seeing growing interest from industrial customers looking to apply simulation and virtual prototyping in the mechanical domain. With respect to our recent ESI acquisition, we're enabling next-generation industrial design by delivering a panel forming solution to a large European auto OEM that will drive efficiencies through their manufacturing processes and optimize their production timelines.

轉向軟體。設計工程軟體訂單增加了兩位數，反映了對我們的 RFEDA 解決方案的健康需求。我們看到工業客戶對在機械領域應用模擬和虛擬原型的興趣日益濃厚。關於我們最近收購的 ESI，我們透過向一家大型歐洲汽車 OEM 提供面板成型解決方案來實現下一代工業設計，這將提高他們的製造流程效率並優化他們的生產時間表。

In closing, we're pleased with the recovery that's underway. Our end markets have largely performed in line with our expectations heading into this year, and I'm once again proud of the Keysight team's execution in this quarter in what remains a dynamic environment. Keysight's broad portfolio of differentiated solutions positions the company to outperform in a variety of market environments. We continue to make deliberate multi-year investments aligned with long-term technology trends, creating opportunities now and into the future. As we move through the second half, we remain focused on executing on what we control and continuing to deliver value to our customers and stakeholders.

最後，我們對正在進行的復甦感到高興。我們的終端市場表現基本上符合我們今年的預期，我再次為是德科技團隊在本季仍然充滿活力的環境中的表現感到自豪。是德科技廣泛的差異化解決方案組合使公司能夠在各種市場環境中脫穎而出。我們將繼續根據長期技術趨勢進行深思熟慮的多年投資，為現在和未來創造機會。隨著我們進入下半年，我們將繼續專注於執行我們所控制的任務，並繼續為我們的客戶和利害關係人提供價值。

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

接下來，我將把話題交給尼爾來討論我們的財務表現和前景。

Thank you, Satish, and hello, everyone. Second-quarter revenue of $1.306 billion was above the high end of our guidance range of 7% on a reported basis and 8% on a core basis. Orders of $1.316 billion were up 8% on both the reported and core basis. Looking at our operational results for Q2, we reported gross margin of 65%. Operating expenses were $516 million up 4%. Q2 operating margin was 25% and increased 100 basis points over last year.

謝謝你，薩蒂什，大家好。第二季營收為 13.06 億美元，高於我們預期範圍的高端，即報告營收成長 7%，核心營收成長 8%。訂單金額達 13.16 億美元，報告和核心訂單均成長 8%。從我們第二季的營運表現來看，我們的毛利率為 65%。營運費用為 5.16 億美元，成長 4%。第二季營業利益率為25%，比去年同期增加了100個基點。

Turning to earnings, we achieved $295 million of net income and delivered earnings per share of $1.70. Our weighted average share account for the quarter was 173 million shares. Our Q2 results included approximately $7 million of new tariff expenses in cost of sales, which had a 60 basis point unfavorable impact on both gross and operating margins and resulted in an approximately $0.04 reduction in earnings per share.

談到收益，我們實現了 2.95 億美元的淨收入，每股收益為 1.70 美元。本季我們的加權平均股票帳戶為 1.73 億股。我們第二季的業績包括銷售成本中約 700 萬美元的新關稅費用，這對毛利率和營業利潤率產生了 60 個基點的不利影響，導致每股收益減少約 0.04 美元。

Moving to the performance of our segments, the Communications Solutions Group generated second-quarter revenue of $913 million, up 9% on a reported and core basis. Commercial Communications revenue of $612 million was up 9%, reflecting sustained strength in wireline and growth and wireless. Aerospace, Defense & Government achieved revenue of $301 million, an increase of 9%. Altogether, CST delivered 67% gross margin and 26% operating margin.

談到我們各部門的表現，通訊解決方案集團第二季的營收為 9.13 億美元，按報告和核心基礎計算成長 9%。商業通訊收入成長 9% 至 6.12 億美元，反映出有線和無線業務的持續強勁成長。航空航太、國防和政府部門實現收入 3.01 億美元，成長 9%。整體而言，CST 的毛利率為 67%，營業利益率為 26%。

The Electronic Industrial Solutions Group generated $393 million in revenue, an increase of 5%, with growth in semiconductor and general electronics more than offsetting a decline in automotive and energy. EISG delivered 59% gross margin and 23% operating margin. Software and services accounted for approximately 36% of Keysight revenue while annual recurring revenue was 28% of total mix.

電子工業解決方案集團營收為 3.93 億美元，成長 5%，其中半導體和通用電子業務的成長足以抵消汽車和能源業務的下滑。EISG 的毛利率為 59%，營業利益率為 23%。軟體和服務約佔是德科技收入的 36%，而年度經常性收入佔總收入的 28%。

Moving to the balance sheet and cash flow, we ended the quarter with $3.118 billion in cash and cash equivalents, generating cash flow from operations of $484 million and free cash flow of $457 million. In April, we issued senior notes for an aggregate principal amount of $750 million. We intend to use the net proceeds for general corporate purposes, which may include partially funding the previously announced acquisition of Spirent.

轉向資產負債表和現金流，本季末我們的現金和現金等價物為 31.18 億美元，經營活動產生的現金流為 4.84 億美元，自由現金流為 4.57 億美元。4 月份，我們發行了本金總額為 7.5 億美元的優先票據。我們打算將淨收益用於一般公司用途，其中可能包括部分資助先前宣布的對 Spirent 的收購。

With regard to pending acquisitions, the UK Competition and Markets Authority cleared the Spirent transaction in March. We are progressing through the review process with other regulatory agencies and expect the transaction to close in Keysight's third fiscal quarter. In addition, the acquisition of Optical Solutions Group and PowerArtist is anticipated to close shortly after the Synopsys to Ansys transaction is completed. Lastly, we were repurchased 1,042,000 shares this quarter at an average price of approximately $144 for a total consideration of $150 million.

對於未決收購，英國競爭與市場管理局於三月批准了思博倫交易。我們正在與其他監管機構一起推進審查程序，預計交易將在是德科技第三財季完成。此外，對 Optical Solutions Group 和 PowerArtist 的收購預計將在 Synopsys 向 Ansys 交易完成後不久完成。最後，本季我們以平均價格約 144 美元回購了 1,042,000 股，總對價為 1.5 億美元。

Now turning to the current environment, tariffs, and our outlook. We have a diversified global supply chain with minimal exposure to China and have already taken action across multiple factors to reduce the incremental impact of tariffs. Our multi-pronged mitigation approach spans our global manufacturing footprint and sourcing strategies, as well as pricing and cost actions.

現在來談談當前的環境、關稅和我們的展望。我們擁有多元化的全球供應鏈，對中國的依賴極小，並且已經採取了多種措施來減少關稅的增量影響。我們的多管齊下的緩解方法涵蓋我們的全球製造足跡和採購策略，以及定價和成本行動。

Based on actions taken to date, we estimate our annual exposure at approximately $75 to $100 million. We are working to further reduce this exposure and offset any remaining impact. Given the high priority that we place on maintaining our long-term customer relationships, our pricing actions were not applied to pre-tariff backlog. As a result, and assuming tariff rates remain at the current levels, the most significant tariff impact is expected in Q3 with full mitigation by the end of the fiscal year.

根據迄今為止的行動，我們估計每年的風險敞口約為 7,500 萬至 1 億美元。我們正在努力進一步減少這種風險並抵消任何剩餘的影響。鑑於我們高度重視維護長期客戶關係，我們的定價行動並不適用於關稅前的積壓訂單。因此，假設關稅稅率保持在當前水平，預計最顯著的關稅影響將出現在第三季度，而到本財年末將完全緩解。

Keysight currently has $2.4 billion in backlog and enters Q3 with a solid scheduled shipment position despite the dynamics and uncertainty of the current macroeconomic environment. As Satish mentioned earlier, at this point we have not seen any material adverse effects on demand from tariffs and are therefore raising our full-year growth expectations.

儘管當前宏觀經濟環境充滿動態和不確定性，但是德科技目前擁有 24 億美元的積壓訂單，並且進入第三季度時仍保持著穩固的預定出貨量。正如 Satish 之前提到的，目前我們尚未看到關稅對需求產生任何重大不利影響，因此我們上調了全年成長預期。

We now expect FY25 revenue growth at the midpoint of our 5% to 7% long-term target. And annual EPS growth slightly above our long term 10% target. For the third quarter, we expect revenue in the range of $1.305 billion to $1.325 billion and Q3 earnings per share in the range of $1.63 to $1.69 based on a weighted diluted share count of approximately 173 million shares. Implied in this guidance is the assumption that tariffs remain at current levels for the year.

我們現在預計 25 財年的營收成長率將達到我們 5% 至 7% 長期目標的中間值。年度每股收益成長率略高於我們 10% 的長期目標。對於第三季度，我們預計營收將在 13.05 億美元至 13.25 億美元之間，基於約 1.73 億股的加權稀釋股數，每股收益將在 1.63 美元至 1.69 美元之間。本指南隱含的假設是，關稅將在今年維持在當前水準。

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

說完這些，我會把話題交還給 Paulenier 進行問答。

Thank you, Neil. Operator, will you please have the instructions for the Q&A please?

謝謝你，尼爾。接線生，請問您能提供問答的說明嗎？

(Operator Instructions)

（操作員指示）

Tim Long, Barclays.

巴克萊銀行的提姆朗。

Hi, Tim.

你好，提姆。

Hi. Maybe one and then a follow up. Just if we could just go back to AI. I know you guys have been giving us examples each quarter of where you guys are seeing traction it seems like, across the hardware ecosystem and emulation simulation as well. Can you just kind of update us on what kind of new activity you're seeing there and how meaningful it is for the business.

你好。也許一個，然後再跟進。如果我們能回到人工智慧就好了。我知道你們每季都會給我們一些例子，顯示你們似乎看到了硬體生態系統和模擬模擬領域的發展趨勢。您能否向我們介紹一下您在那裡看到了哪些新活動以及這些活動對業務有何意義？

And then just on the follow up, if you could just give a little bit more color on the orders and pipeline to get to the full-year guidance. I think normally we do see orders pick up towards the second half of the year. So just curious what you're seeing in pipeline to get confidence in the second half. Thank you.

然後，在後續問題上，您是否可以提供更多關於訂單和管道的詳細信息，以獲得全年指導？我認為通常我們會看到下半年訂單量回升。所以我只是好奇你在下半年看到了什麼來增強信心。謝謝。

Thank you, Tim. Obviously, AI, we view it as a long-term secular trend. And with a clear multi-year roadmap that's forming and a great fit to our strategy of not only being a physical-layer tool provider but also going up the stack with physical and protocol layer and offering more solutions to customers.

謝謝你，提姆。顯然，我們認為人工智慧是一個長期趨勢。我們正在製定清晰的多年路線圖，這非常符合我們的策略，即不僅成為實體層工具提供者，而且還透過實體和協定層向上發展，為客戶提供更多解決方案。

The big mega trends are clear, right? We all know the AI workloads are growing and we're making contributions around on a number of technology fronts, including in memory, compute, networking, with new standards that are forming. So our broad portfolio is really in play as we engage with these customers. And where we see the industry right now is trying to solve a number of the scale-up and scale-out challenges as they deploy this digital infrastructure, right? So that's the action or activity that's being driven. And we had another strong quarter.

大趨勢很明顯，對吧？我們都知道人工智慧的工作量正在成長，我們正在許多技術領域做出貢獻，包括記憶體、運算、網路以及正在形成的新標準。因此，當我們與這些客戶接觸時，我們廣泛的產品組合確實發揮了作用。我們現在看到的是，該行業在部署數位基礎設施時正試圖解決許多擴大規模和擴展規模的挑戰，對嗎？這就是正在推動的行動或活動。我們又度過了一個強勁的季度。

So for the first half, last year we said our wireline business was roughly a billion dollars, so over a billion dollars I should say, in sales, and for the first half it grew double digits. So we feel good about our position in this emerging space. And we think it's a long-term growth opportunity for us that we're very excited.

去年上半年，我們說我們的有線業務銷售額大約是 10 億美元，所以我應該說超過 10 億美元，而且上半年的成長率達到了兩位數。因此，我們對自己在這個新興領域的地位感到滿意。我們認為這對我們來說是一個長期的成長機會，我們對此感到非常興奮。

With regard to the progression of orders and what's baked into our guide, again, look, I think we've said this before that we, despite all the uncertainty and chatter out there and the customers are obviously paying attention to all the tariff talks and all the macro concerns, we have not yet seen any material change in customer behavior with regard to their immediate plans.

關於訂單的進展以及我們的指南中包含的內容，再說一次，我想我們之前已經說過，儘管存在各種不確定性和閒聊，而且客戶顯然在關注所有關稅談判和所有宏觀問題，但我們尚未看到客戶在其近期計劃方面的行為發生任何實質性變化。

And so as we enter the quarter, we obviously had a strong finish for Q2 which we enter Q3, our pipeline is solid and supports our guide. And we had a pretty strong uptake in pipeline activity as it relates to the second half. So we feel good about the second half. Obviously, there are risks that we're monitoring like everybody else, but we're focused on what we control and feel confident about where we stand today.

因此，當我們進入本季度時，我們顯然在第二季度取得了強勁的成績，進入第三季度，我們的管道非常穩固並支持我們的指導。與下半年相關的管道活動有相當強勁的成長。所以我們對下半場感到很滿意。顯然，我們和其他人一樣都在監控風險，但我們專注於我們能控制的事情，並對我們目前的狀況充滿信心。

Okay, thank you.

好的，謝謝。

Thank you.

謝謝。

Matt Niknam, Deutsche Bank.

德意志銀行的馬特‧尼克納姆 (Matt Niknam)。

Hey guys, thanks so much for taking the question. One question and then one follow up. I guess first on my main question, you obviously raised the top-line outlook on average by about 100 bps relative to the prior 5%. So I'm curious maybe where you're seeing a little bit of an incrementally improved view relative to three months ago. That's the first question.

嘿夥計們，非常感謝你們回答這個問題。提出一個問題，然後進行一次跟進。我想先回答我的主要問題，您顯然將營收預期相對於之前的 5% 平均提高了約 100 個基點。所以我很好奇，也許您看到的景色與三個月前相比有了一些逐步改善。這是第一個問題。

Second, just to follow up on cash flow from ops that was meaningfully stronger. I'm just wondering maybe for Neil, anything unique on the working cap side and then maybe how to think about cash flow from ops and working cap over the duration of the fiscal year. Thanks.

其次，只是為了跟進營運現金流的強勁成長。我只是想知道，對於尼爾來說，在營運上限方面有什麼獨特之處，然後也許如何考慮整個財政年度內營運和營運上限的現金流。謝謝。

Well, thank you. I think again, as I mentioned before, we looked at the over performance we've had in the first half. We take a look at our pipeline of opportunities we have, the strong backlog position we have, and we then have applied this to essentially raise the topline expectations for the full year. Again, there's a lot of macro risks and other things people are monitoring, but we have not seen any material change in customer behavior.

好的，謝謝你。我再次思考，正如我之前提到的，我們回顧了上半年的出色表現。我們審視了我們擁有的機會管道、我們擁有的強大積壓狀況，然後我們利用這些來實質上提高全年的收入預期。再次強調，人們正在監控許多宏觀風險和其他事物，但我們並未看到客戶行為有任何實質變化。

And if you recall, at the beginning of the year, we said we thought this year would be a slow, gradual recovery in our markets, and we feel like that's exactly the trajectory we're on. So that's where we find ourselves at the end of the first half and feel confident about where we are. But like everybody else, we continue to monitor the (inaudible) due to tariffs and the geopolitical environment.

如果你還記得的話，在今年年初，我們說過我們認為今年我們的市場將會緩慢、逐步復甦，我們覺得這正是我們現在所處的軌跡。這就是我們在上半場結束時所處的位置，我們對自己的處境充滿信心。但與其他人一樣，我們將繼續監測關稅和地緣政治環境造成的（聽不清楚）影響。

Yeah, so the only thing I would add to that, that Satish just said with regard to our outlook for the year, as everybody knows, we tend to see a seasonal uplift in the fourth quarter. We're still expecting the fourth quarter to be our strongest quarter of the year and that that that lends to that guidance increase.

是的，我唯一要補充的是，薩蒂什剛才談到我們對今年的展望，眾所周知，我們往往在第四季看到季節性成長。我們仍然預計第四季將成為我們今年表現最強勁的一個季度，這也有助於提高預期。

As it relates to cash flow, yeah, so obviously strong cash flow within the quarter. There are a couple of things in there. So first of all, that did include a little less, about $60 million worth of a gain on a hedging contract associated with the purchase price for Spirent. We had put a contract in place about a year ago set to expire at the end of our first half, which was our original thought on the timing of the close that transaction. So we closed out that transaction and essentially rolled it forward, but when we closed it out, we did recognize about a $60 million gain on that hedge.

就現金流而言，是的，因此本季的現金流顯然強勁。裡面有幾件事。首先，這確實包括少一點的收益，大約 6000 萬美元，與 Spirent 的購買價格相關的對沖合約收益。我們大約在一年前簽訂了一份合同，該合約將在上半年末到期，這是我們對交易結束時間的最初想法。因此，我們結束了這筆交易，並將其延續下去，但當我們結束交易時，我們確實確認了該對沖約 6000 萬美元的收益。

In addition, we did see some working capital improvements inventory days were down by about 10%, DSO was down by about 3%, so that contributed to the strong cash flow performance as it significantly lower tax payments than in the year-ago quarter.

此外，我們確實看到一些營運資本改善，庫存天數下降了約 10%，DSO 下降了約 3%，因此這有助於強勁的現金流表現，因為它比去年同期的納稅額大幅降低。

Mark Delaney, Goldman Sachs.

高盛的馬克·德萊尼。

Yes, good afternoon. Thank you very much for taking my question. I was hoping to better understand the tariff topic. Maybe first one just to level set everyone and including myself. The $75 million to $100 million, is that the gross amount of exposure that you have and the net effect this year is maybe something less than that, or is the $75 million to $100 million what you expect the drag on profits to be for this year?

是的，下午好。非常感謝您回答我的問題。我希望能夠更理解關稅話題。也許首先只是為了讓每個人（包括我自己）都處於同一水平。7500 萬到 1 億美元，是您面臨的總風險敞口，而今年的淨效應可能比這要少一些，還是您預計 7500 萬到 1 億美元會對今年的利潤造成拖累？

Yeah, so $75 million to $100 million is a gross annualized number. Obviously, this thing went into effect in April, so we only have a little less than seven months of total impact. So $75 million to 100 million is the gross number. We are working to offset that, although, as we said in our previous remarks to the extent that we're passing those costs onto customers.

是的，7500 萬美元到 1 億美元是一個年化總額。顯然，這項法案在四月生效，因此整體影響不到七個月。因此，總數是 7,500 萬到 1 億美元。我們正在努力抵消這一影響，但正如我們之前所說，我們將這些成本轉嫁給客戶。

We've made no attempt to reprice backlog and given that we enter Q3 with about $2.4 billion backlog, it's going to take some time for those offsets to materialize. And so relatively little here in Q3, a little bit more in Q4, but by the time we get to Q1, we expect to have those tariff costs fully mitigated.

我們沒有嘗試重新定價積壓訂單，並且考慮到我們進入第三季時積壓訂單約為 24 億美元，這些抵消措施需要一些時間才能實現。因此，第三季度的關稅成本相對較少，第四季度稍多一些，但到第一季度，我們預計這些關稅成本將完全消除。

Helpful, Neil. And that was what my follow up was on. If you're not raising price on backlog, maybe you can help us better understand the mitigating actions that you are taking and your confidence and mitigating the tariffs as you exit the year. Thank you.

很有幫助，尼爾。這就是我的後續行動。如果您不提高積壓訂單的價格，也許您可以幫助我們更好地了解您正在採取的緩解措施以及您在年底前降低關稅的信心。謝謝。

Yeah, so I mean, I think as we think about tariffs, we think of kind of two opportunities. One, what are the actions that we can take to reduce our overall tariff exposure, leveraging our global supply chain, leveraging our manufacturing footprint, taking actions to actually reduce tariff costs, and then once we get to kind of we've optimized the tariff cost side, the question is, what can you do to further mitigate either by passing those costs on via price or surcharges of some sort or a reducing costs elsewhere in your P&L. And so we have actions going on across all of those work streams.

是的，所以我的意思是，當我們考慮關稅時，我們會想到兩種機會。首先，我們可以採取哪些行動來降低我們的整體關稅風險，利用我們的全球供應鏈，利用我們的製造足跡，採取行動來實際降低關稅成本，然後，一旦我們開始優化關稅成本方面，問題是，您可以做些什麼來進一步減輕這些成本，是透過價格或某種附加費轉嫁這些成本，還是降低益表中其他部分的成本。因此，我們在所有這些工作流程中都採取行動。

Now when I said we're not raising price on existing backlog, right. So essentially we said, hey, if you had orders that were already on our books that we weren't going to go back and try and recover tariffs on those, but we have taken actions forward-looking on new quotations starting in about mid-April.

現在，當我說我們不會提高現有積壓產品的價格時，對的。所以基本上我們說，嘿，如果你有已經在我們賬簿上的訂單，我們不會回去嘗試收回這些訂單的關稅，但我們已經從 4 月中旬開始對新的報價採取了前瞻性的行動。

Yeah, Mark, just Satish. To chime in, we have a pretty resilient supply-chain operations that is agile, and we have a considerable amount of operational realignments that we can still work on, because at this point, we're assuming 10% tariff sort of is the base case for us. And should that materially change, we would be prepared to respond to those scenarios as well. Customer pricing and strategies, it's definitely a part of it, but it's also all the other operational alignments that we can make with our partners who we have a multi-year relationship with that can help us scale across geographies if needed.

是的，馬克，只是薩蒂什。補充一下，我們的供應鏈營運非常靈活，我們仍然可以進行大量的營運調整，因為目前，我們假設 10% 的關稅是我們的基本情況。如果情況發生重大變化，我們也將做好應對這些情況的準備。客戶定價和策略肯定是其中的一部分，但我們還可以與我們的合作夥伴進行所有其他營運協調，這些合作夥伴與我們有著多年的合作關係，可以幫助我們在需要時跨地域擴展業務。

Thank you very much. I'll pass it on.

非常感謝。我會傳達的。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Meta Marshall, Morgan Stanley.

摩根士丹利的 Meta Marshall。

Great, thanks. A couple of questions for me. Just one, know that your Aerospace & Defense business is kind of relatively split between kind of US and allies, but just wondering if you had seen any kind of pushback on allied orders that were aligned to US programs or just kind of any commentary you could kind of give on Aerospace & Defense.

太好了，謝謝。我有幾個問題。第一，要知道，你們的航空航天和國防業務在美國和盟友之間相對分散，但我想知道，你們是否看到過與美國計劃一致的盟國訂單遭到任何形式的阻撓，或者你們能否對航空航天和國防業務發表一些評論。

And then just also kind of following up on that -- of noted that you said kind of minimal China impact, but just how much of that $75 million to $100 million of impact that you guys are talking about from a gross perspective is from shipping into China versus kind of shipping into the US. Thanks.

然後也只是對此進行了跟踪——注意到您說對中國的影響很小，但從總體角度來看，您所說的 7500 萬到 1 億美元的影響中，有多少是來自運往中國的，有多少是來自運往美國的。謝謝。

Thank you, Meta. I'll have -- I'll take the Aerospace, Defense and Neil can quantify the China impact.

謝謝你，Meta。我將——我將考慮航空航太、國防，尼爾可以量化中國的影響。

I'll just say that the strong quarter with growth in orders, as I mentioned, even under a continuing resolution that we've been operating under, and this is unprecedented that we're still under continuing resolution maybe for the full year, and so that doesn't limit growth in new programs and such. But we saw some good orders bookings again with our prime contractors in the US and actually had a double-digit order growth in our European business.

我只想說，正如我所提到的那樣，即使在我們一直在持續決議下運營的情況下，本季度訂單仍然增長強勁，這是前所未有的，我們可能全年仍在持續決議下運營，因此這不會限制新項目等的增長。但我們再次看到美國總承包商的訂單量有所回升，而且歐洲業務的訂單量實際上實現了兩位數的成長。

Just to give you some examples, we were awarded by NATO ForEx contract, which is public, to modernize radar and electronic support measures. We also were selected by the US Army for validating Zero Trust security on the unified network. So the spend environment remains strong, especially with the prime contractor backlog.

舉幾個例子，我們獲得了北約 ForEx 合同，這是一份公開合同，用於對雷達和電子支援措施進行現代化改造。我們也被美國陸軍選中，負責驗證統一網路上的零信任安全性。因此，支出環境依然強勁，尤其是在總承包商積壓的情況下。

Again, this is a business I want to remind you it's always difficult to call on a quarterly basis, but easier to call on a longer term because the trends are clear, and we look at it longer term and say, the US budget next year is likely to go up. European budgets for defense are likely to go up with the programs being put in place. And so -- and we feel good about our portfolio position in Aerospace, Defense.

再次，我想提醒大家，對於這個行業來說，按季度預測總是很困難的，但從長期來看則更容易，因為趨勢很明顯，而且從長期來看，我們可以說，明年美國的預算可能會增加。隨著這些計劃的實施，歐洲的國防預算可能會增加。因此，我們對在航空航太和國防領域的投資組合狀況感到滿意。

Yeah, I mean, and just to get to the question about China. So US, China, China, US, both directions is less than 10% of total tariff exposure.

是的，我的意思是，只是想回答有關中國的問題。因此，美國、中國、中國、美國，雙向關稅風險佔總關稅風險的 10% 以下。

Okay. Great, thank you.

好的。太好了，謝謝。

Aaron Rakers, Wells Fargo.

富國銀行的 Aaron Rakers。

Yeah, thanks for taking the question. Two if I can, I'll just ask him right away as well.

是的，感謝您提出這個問題。如果可以的話，我也會立即問他。

So first, I think Neil, as we talk about the guidance and getting up north of that 5% growth or in that 5% to 7% range that you alluded to, can you just remind us again of how we think about the incremental margin for the company? I think all the way back at the analyst that you talked about anything north of 5% dropping through like a 40% incremental margin and what I'm trying to get to is just the pace of how we could think back to getting off margin back above 30%.

所以首先，尼爾，當我們談論指導並達到您提到的 5% 以上的增長或 5% 到 7% 的範圍內時，您能否再次提醒我們我們如何看待公司的增量利潤率？我認為，正如分析師所說，利潤率從 5% 下降到 40%，而我想了解的是，我們如何才能回想利潤率回到 30% 以上的速度。

And then as a follow up or as the second question I should say is that, can you talk a little bit about the wireless business, that I think previously is talked about is kind of think of that as being stable, but it sounds like that's actually performing a little bit better. How do you think about the durability of that wireless business? Thank you.

然後作為後續問題或我應該說的第二個問題是，您能否談談無線業務，我認為之前談到的無線業務是穩定的，但聽起來它實際上表現得更好一些。您認為無線業務的持久性如何？謝謝。

Yeah, so (inaudible) I'll start with the first one here on [yanker] amount. You're absolutely correct. What we've basically said is anytime our business is growing 5% or better that we would expect to drop through that growth at an operating incremental of about 40%. Now I would point out that the tariffs are new and substantial incremental costs that are in the short run going to impact our ability to deliver on that incremental.

是的，那麼（聽不清楚）我將從這裡的第一個關於[yanker]金額開始。你完全正確。我們基本上是說，任何時候我們的業務成長 5% 或更高，我們預計該成長將以約 40% 的營運增量下降。現在我想指出的是，關稅是新的、巨大的增量成本，短期內會影響我們實現增量目標的能力。

Yes. And on the wireless business?

是的。那麼無線業務方面呢？

Yeah, on the wireless business, again, we're continuing -- I would say the headline is we're continuing to see stability, strengthen the infrastructure side, still the smartphone-related businesses, do some segments of sell soft, especially in China, so still monitoring, but stable, but soft. I would say the real strength is in the network infrastructure side with Open RAN.

是的，關於無線業務，我們將繼續——我想說的是，我們將繼續看到穩定性，加強基礎設施方面，仍然是與智慧型手機相關的業務，一些部分的銷售疲軟，特別是在中國，因此仍在監控，但穩定，但疲軟。我想說真正的優勢在於 Open RAN 的網路基礎架構方面。

Some of the latest standards releases with AI and some early 6G research really driving some of the spend and customer engagements. But we have a strong position in the space and we continue to invest for the longer term here to maintain our leadership in the space.

一些最新的人工智慧標準發布和一些早期的 6G 研究確實推動了一些支出和客戶參與。但我們在該領域佔有強勢地位，我們將繼續在此進行長期投資，以保持我們在該領域的領導地位。

Robert Jamieson, Vertical Research.

羅伯特·傑米森（Robert Jamieson），垂直研究。

Hey, good afternoon. Thanks for taking my questions and nice quarter. Just quickly on software and services, just it's a growing part of the business up to 36% of revenue recurring almost 30% now. Are there any like investments that you're making to further accelerate growth here, just given the margin profile of those businesses.

嘿，下午好。感謝您回答我的問題，很高興。軟體和服務業務成長迅速，目前佔經常性收入的 36%，接近 30%。考慮到這些業務的利潤狀況，您是否正在進行類似的投資以進一步加速成長？

Thank you. Again, a big part of our strategy, if you look at the business and how we performed in a downturn, as you rightfully point out, is a function of software and services because it's been such a big part of the company's resilience, especially even as topline comes under some pressure. So we could -- this is clearly the area of focus across all our businesses, we have a strategy to grow the software and services.

謝謝。再說一次，如果你看一下我們的業務以及我們在經濟低迷時期的表現，你會發現，正如你正確指出的那樣，我們策略的很大一部分是軟體和服務的功能，因為它一直是公司韌性的重要組成部分，尤其是在營收面臨一些壓力的情況下。因此我們可以——這顯然是我們所有業務的重點領域，我們有發展軟體和服務的策略。

But one particular area really excited we saw double-digit growth in our simulation business, as an example, it's an area where we have placed a lot of M&A dollars and focus. If you remember, we acquired ESI and now we're also potentially beneficiaries of the Synopsys-Ansys transaction where we might get a couple more acquisitions to bolster our presence in the simulation space.

但有一個特定領域確實讓我們興奮不已，例如，我們的模擬業務實現了兩位數的成長，這是我們投入大量併購資金並重點關注的領域。如果您還記得的話，我們收購了 ESI，現在我們也可能是 Synopsys-Ansys 交易的潛在受益者，我們可能會進行更多的收購以增強我們在模擬領域的地位。

And it does two things, right? It increases our software and recording revenue, but equally it allows us to engage with our customers earlier in the design cycle, which again fits our strategy of being a bigger player in the R&D parts of our market. And now as recovery does happen in our markets, you will see a number, maybe take back as a percentage of the total makes just a little because we're starting to see some of our core business recover. But I think the long term, we still feel like there's more upside to driving the software as a percentage of revenue.

它有兩個作用，對嗎？它增加了我們的軟體和錄音收入，但同樣也使我們能夠在設計週期的早期與客戶接觸，這再次符合我們在市場研發領域發揮更大作用的策略。現在，隨著我們市場的復甦，你會看到一個數字，也許佔總數的百分比會有所回升，因為我們開始看到我們的一些核心業務正在復蘇。但我認為，從長遠來看，我們仍然認為推動軟體在收入中所佔比例的成長還有更大的上升空間。

Sure, thank you. And then, just on AI, I mean, it's been consistent theme and growing nicely, but -- and maybe addressed this earlier, but beyond testing of like the high-speed interconnection network infrastructure. Are there any other kind of test applications or demand that you're seeing from customers within that realm, or is that kind of coming from some of the emulation software they mentioned on testing of how compute latency, et cetera is working its way through the data centers as they are reconfiguring things for higher network speeds and things like that.

當然，謝謝。然後，就人工智慧而言，我的意思是，它一直是一致的主題並且發展良好，但是 - 也許早些時候就解決了這個問題，但超出了高速互連網路基礎設施的測試。您是否看到該領域的客戶有其他類型的測試應用程式或需求，或者這些是否來自他們在測試計算延遲等如何在資料中心重新配置以實現更高的網路速度等時提到的某些模擬軟體。

Yeah, I think it's important to characterize this not just a cable test, but it's important to characterize it as the challenges in the digital infrastructure that's being put in place for AI are very different. When customers are trying to look at the scale-up and scale-out challenges they face, what might be an interconnect really turns into a mission-critical fail point if it's not performing right and the cost of failure gets up pretty substantially.

是的，我認為不僅要將其描述為電纜測試，還要將其描述為為人工智慧而實施的數位基礎設施所面臨的挑戰非常不同。當客戶試圖解決他們所面臨的擴大和擴展挑戰時，如果互連性能不佳，它實際上就會變成關鍵任務故障點，並且故障成本會大幅上升。

So we're engaging with our customers on those mission-critical needs that they have today, but equally from a strategic sense, we're looking at where is the industry going in five years, and I can tell you that the state of the art on the technology keeps growing. There's this roadmap that's forming around multiple dimensions and we're participating in those to enable it, so we're there for our customers.

因此，我們正在與客戶就他們目前的關鍵任務需求進行溝通，但同樣從戰略角度來看，我們正在關註五年後行業的發展方向，我可以告訴你，技術水平正在不斷發展。這個路線圖正在多個維度上形成，我們正在參與其中以實現它，因此我們可以為客戶提供服務。

And what we see is a big trend of pulling in the timelines because of the rapid increase in the AI workload, right? So all of this is pretty rich opportunity for us. We also, along the way, have designed wins in the in the software emulation space, which allows customers to isolate at their performance in the AI data center and say, where is the bottleneck to get the true performance. So we're working with them on those as well. So across the board, across physical and protocol layer, we're continuing to grow our contributions to this marketplace.

我們看到由於人工智慧工作量的快速增加而導致時間表縮短的趨勢很大，對嗎？所以這一切對我們來說都是非常寶貴的機會。在此過程中，我們也在軟體模擬領域設計了勝利，這使得客戶能夠隔離他們在人工智慧資料中心的效能，並說出獲得真正效能的瓶頸在哪裡。因此我們也正在與他們合作。因此，在物理層和協議層的各個方面，我們將繼續為這個市場做出貢獻。

Great. Thank you very much.

偉大的。非常感謝。

Thank you.

謝謝。

Rob Mason, Baird.

羅布梅森，貝爾德。

Oh yes, good afternoon. Just a couple of questions. On the general electronics business, I'm curious just given all the realignment of supply chain activity, maybe it's round two versus tariffs the last time is as companies look at where they're manufacturing footprints need to reside. Can you just speak to maybe the impact on that business from a demand side and again, I'm maybe thinking more on the production test side if that's an influence.

哦，是的，下午好。僅有幾個問題。對於一般電子業務，我很好奇，考慮到供應鏈活動的所有重新調整，也許這是第二輪與關稅的較量，上一次是企業考慮他們的製造足跡需要放在哪裡。您能否從需求方面談談這對該業務的影響？如果這有影響，我可能會更多地考慮生產測試方面。

And then I'll just go ahead and ask my follow up. Neil could, just to think about the tariff impact in the third quarter, is it kind of roughly a doubling of what you experienced in the second?

然後我會繼續問我的後續問題。尼爾，想想關稅對第三季的影響，是不是比第二季翻了一番？

Yeah, I'll take the second first here. I think it's likely a little bit more than that. We had about three weeks of tariff impact in April versus obviously a full quarter. Now we have already taken some mitigation -- mitigating actions that have positive impact. So I don't think you can extrapolate totally forward from 8 million just based on the number of weeks -- sorry, 7 million, but it is a little bit more than a doubling. It is more than a doubling of what we saw in Q2 just given the time involved.

是的，我先選擇第二個。我認為可能不只這些。四月份，關稅的影響大約持續了三週，而顯然是整個季度的影響。現在我們已經採取了一些緩解措施——具有正面影響的緩解行動。因此，我認為你不能僅根據週數就從 800 萬推斷出全部的未來數字——抱歉，是 700 萬，但這比翻一番略多一點。考慮到所涉及的時間，這一數字是第二季度的兩倍多。

Yeah, I think, when you look at the general electronics business, given it's a broad, it's a broad marketplace for us in terms of the number of different types of applications that end market presence, we see no change in sort of the areas such as digital health and research because those are -- those tend to be durable in nature and the manufacturing parts of it do move around. So on one hand, China still remains weak in that area.

是的，我認為，當你看一般電子業務時，考慮到它是一個廣泛的市場，就最終市場存在的不同類型的應用程序的數量而言，它對我們來說是一個廣闊的市場，我們看到數字健康和研究等領域沒有變化，因為這些往往是持久的，而且它的製造部分確實會移動。所以一方面，中國在該領域仍然很弱。

But I would say that there's a lot of recent conversations we're having with customers because they're trying to diversify their manufacturing footprint. Now it's not materially yet reflected in our results but could be an opportunity for us to engage in that we're working with our customers on. So it's still early days, but it's driven by the tariffs and what might happen. So there's a lot of scenario planning that's occurring and it'll probably be playing out over the next 90 to 180 days.

但我想說的是，我們最近與客戶進行了很多對話，因為他們正在嘗試實現製造足跡的多樣化。目前，它尚未在我們的業績中得到實質體現，但這可能是我們與客戶合作的機會。所以現在還為時過早，但它受到關稅和可能發生的情況的推動。因此，正在進行大量的情境規劃，這些規劃可能會在未來 90 到 180 天內完成。

I see. Thank you.

我懂了。謝謝。

Thank you.

謝謝。

Adam Thalhimer, Thompson, Davis.

亞當泰爾希默、湯普森、戴維斯。

Hey, good afternoon guys, great quarter.

嘿，大家下午好，這是一個很棒的季度。

Thank you, Adam.

謝謝你，亞當。

Can you parse through orders a little bit? I'm curious if there was any -- to what extent you saw pre-buy activity ahead of any surcharges and what our expectations should be for border trends after the surcharges went into effect.

能稍微分析一下訂單嗎？我很好奇，在徵收任何附加費之前，您在多大程度上看到了預購活動，以及我們對附加費生效後的邊境趨勢有何預期。

Yeah, so I'd say just taking a look at the orders in Q2, orders progressed fairly linearly in the quarter. The funnel conversion was what we expected. We had a strong intake in the funnel as well, which is what we reflected into Q3. And then I would say April was strong, and in part because it's the end of our first half for our compensation for our sales force. So it does tend to have a strong.

是的，所以我想說，只要看一下第二季的訂單，就會發現本季的訂單成長相當線性。漏斗轉換正如我們所期望的。我們的漏斗中也有大量攝取量，這正是我們在第三季所反映的。然後我想說四月表現強勁，部分原因是因為這是我們上半年銷售人員薪資發放的結束。所以它確實傾向於具有強大的力量。

So no real change. We didn't see any difference in pull in, pull outs, or cancellations or anything of that kind. And that's why we -- our position is, while customers are watching the macro and evaluating the risk associated with it, we haven't seen any material change in customer behavior.

因此沒有真正的改變。我們沒有看到拉入、拉出、取消或任何類似情況有任何差異。這就是為什麼我們的立場是，雖然客戶正在關注宏觀經濟並評估與之相關的風險，但我們並沒有看到客戶行為有任何實質變化。

Good to hear. And then, secondly, I wanted to ask about Asia. The revenue there was really strong in the quarter and maybe you can just give some high-level thoughts on China demand.

很高興聽到這個消息。其次，我想問亞洲的情況。本季的營收確實非常強勁，也許您可以就中國的需求給出一些高層次的看法。

Yeah, I would say Asia was strong. And again, it's across all of our segments really Commercial Communications being the leader, semiconductors saw strong demand as new nodes and new technologies such as silicon photonics are being deployed, and General Electronics also had some growth in in Asia.

是的，我想說亞洲很強大。再說一次，在我們所有的細分市場中，商業通訊確實處於領先地位，隨著新節點和矽光子學等新技術的部署，半導體的需求強勁，通用電子在亞洲也取得了一些成長。

I would just maybe make a comment about China. Orders were flattish for the quarter in China, with strengths in a few sectors, but clearly the, as I mentioned before, the General Electronics with the manufacturing exposure was weak and automotive in China was also weak. We continue to monitor the POS demand, although we have a very small indirect business, we continue to monitor that. It seems largely in line. So China I would say continues to hold up well in this environment.

我可能只是想對中國發表一點評論。本季中國訂單持平，少數產業表現強勁，但顯然，正如我之前提到的，通用電子的製造業業務表現疲軟，中國的汽車業務也同樣疲軟。我們將繼續監控 POS 需求，儘管我們的間接業務規模很小，但我們會繼續監控。看起來大體上是一致的。因此，我認為中國在這種環境下將繼續保持良好表現。

Thanks, Satish.

謝謝，薩蒂什。

Thank you.

謝謝。

Samik Chatterjee, JPMorgan.

摩根大通的 Samik Chatterjee。

Hi, thanks for taking my question. Satish, maybe if I can --

你好，謝謝你回答我的問題。Satish，如果我可以的話--

Hi, Samik.

你好，薩米克。

Sort of try to -- hi, good to hear from, you. So on the drivers of wireline demand, and -- yeah, no, thank you. Drivers of wireline demand. I'm trying to sort of address that maybe in terms of how to think about sustainability and your customers clearly are doing well on volume, but how should we think about the strength you're seeing driven by progress on R&D from your customers related to maybe sort of what they're seeing on their volume outlook and driven by production. So maybe if you can share any color about, I know communications is very R&D aligned for you, but what does it look like for wireline?

試試看－嗨，很高興收到你的來信。因此，關於有線需求的驅動因素，是的，不，謝謝。有線需求的驅動因素。我試圖從如何看待永續性的角度來解決這個問題，您的客戶在產量方面顯然做得很好，但我們應該如何看待您所看到的由客戶在研發方面取得的進展所驅動的實力，以及他們所看到的產量前景和生產所驅動的實力。所以也許您可以分享一些關於顏色的信息，我知道通信對您來說非常符合研發，但是對於有線來說它是什麼樣子的呢？

And is the demand you're seeing there, are you selling new testers when it comes to like either silicon phonics or CPO support, or are you just seeing more sort of customers buying just because their volume outlooks are stronger? Anything you can share on that front. And I have a follow up. Thank you.

您看到的需求是，當涉及矽語音或 CPO 支援時，您是否在銷售新的測試儀，或者您是否只是看到更多的客戶購買，因為他們的銷售前景更強勁？關於這方面可以分享什麼嗎？我還有一個後續行動。謝謝。

Oh, good. That's a great question, Samik. I think, I would just say, when we looked at our wireline business, say a year or two ago, we've said the majority of the business R&D, and I would probably put it as 80/20-ish, roughly as the ratio of R&D to manufacturing. Now, we've probably seen a 10-point swing in the manufacturing in that area, but that's sort of where we are still heavily man R&D oriented. But we're clearly also benefiting from all of the manufacturing activity that's happening as the industry is trying to ramp for digital infrastructure.

噢，很好。這是一個很好的問題，薩米克。我想，我只想說，當我們在一兩年前審視我們的有線業務時，我們說過大部分業務都花在了研發上，我可能會把它定為 80/20 左右，大致相當於研發與製造的比例。現在，我們可能已經看到該地區的製造業出現了 10 個百分點的變化，但我們仍然高度重視人力研發。但隨著業界努力擴大數位基礎設施，我們顯然也受益於正在進行的所有製造活動。

But when I look at the portfolio of products that we service, all the way from only R&D to call it mainstream or R&D or validation through deployment, whether it is with our AWGs, birds, scopes, silicon photonics, wafer test systems, network analyzers, software with our AI benchmarking, and network speed emulators. So a pretty broad category of products that we're selling to. And actually, as we -- as I think about the whole first half, I would say the number of customers that participate in that has also grown for us, which it's a good sign that the ecosystem is expanding. As more companies are coming in and driven -- given that this is going to eventually be a longer-term opportunity.

但當我查看我們服務的產品組合時，從單純的研發到稱之為主流或研發或驗證通過部署，無論是我們的 AWG、鳥類、示波器、矽光子學、晶圓測試系統、網絡分析儀、帶有我們的 AI 基準測試的軟體和網路速度模擬器。因此，我們銷售的產品類別相當廣泛。實際上，當我回顧整個上半年時，我想說參與其中的客戶數量也在成長，這是生態系統正在擴大的一個好兆頭。隨著越來越多的公司進入並推動——這最終將成為一個長期機會。

And when I look at some of the data trends that are going on and the standards progressions, really bodes well for R&D business, we'll have some times when we'll pick up manufacturing demand as well because we have a portfolio, but strategically, the R&D business is more valuable to us.

當我觀察正在發生的一些數據趨勢和標準進展時，我發現這對研發業務來說確實是一個好兆頭，我們有時也會增加製造需求，因為我們有投資組合，但從策略上講，研發業務對我們來說更有價值。

Okay, got it. And for my follow up, if I can sort of stay with the wireline demand but more sort of when we think about adoption of technologies like CPU and silicon photonics, I'm imagining sort of visualizing it as more of the test demand moves towards a bit more sort of semiconductor level testing. So anything you can share there in terms of how you see the comparative landscape.

好的，明白了。至於我的後續問題，如果我能繼續關注有線需求，但當我們考慮採用 CPU 和矽光子學等技術時，我可以想像，隨著更多的測試需求轉向半導體級測試，情況會變得更加直觀。因此，您可以就您對比較景觀的看法分享任何資訊嗎？

Does it change from what you've had historic in sort of 400gig, 800 gig. And do you think you have the sort of entire stack to address some of those complexities, or is there something that you need to add to the portfolio to address sort of when the overall sort of technology moves more closer to semiconductor testing?

它與歷史上的 400gig、800gig 相比有什麼變化嗎？您是否認為您擁有完整的技術堆疊來解決其中的一些複雜問題，或者當整體技術越來越接近半導體測試時，您是否需要在產品組合中添加一些東西來解決這些問題？

No, you're very astute to pick up the change right between electrical to optical or that conversion. It's been an area of emphasis and investment for us, especially as these things go into silicon. This is why we invested about 18 months ago to intercept the demand from silicon photonics. We talked about this on a call as well, and we're now benefiting from that. That requires bringing together optical capabilities with our electrical capabilities and probing and complex metrology.

不，您非常敏銳，能夠察覺到從電到光或從光到光的轉換之間的變化。這一直是我們重點關注和投資的領域，尤其是當這些東西進入矽片時。這就是為什麼我們在大約 18 個月前進行投資以攔截來自矽光子學的需求。我們也在電話中討論了這個問題，現在我們從中受益匪淺。這需要將光學能力與我們的電氣能力、探測能力和複雜的計量能力結合。

So really in our wheelhouse as a company to go after this opportunity. Co-packaged optics is another great example of what I saw from customers. I think that's accelerating as well. And if we need more capabilities, we can acquire talent, but I think we have a strong foundation to start with today that we actually at OFC we showcased multiple first-in-this-area 448 gig transmission, key enabler of 3.2 terabytes, and so on and so forth. So we had about 50 demonstrations. So it will continue to grow. But you're right, this is where the puck is moving to and we find ourselves having a strong foundation to intercept this.

因此，作為一家公司，我們確實有能力去追求這個機會。共封裝光學元件是我從客戶那裡看到的另一個很好的例子。我認為這一進程也在加速。如果我們需要更多能力，我們可以招募人才，但我認為我們今天有一個堅實的基礎，實際上我們在 OFC 上展示了該領域的多個首創 448 千兆傳輸、3.2 兆位元組的關鍵推動因素等等。所以我們舉行了大約50場示威活動。因此它將繼續增長。但你是對的，這就是冰球移動的方向，我們發現自己有一個堅實的基礎來攔截它。

Okay, great. Thank you. Thanks for taking my questions.

好的，太好了。謝謝。感謝您回答我的問題。

Thank you.

謝謝。

Mehdi Hosseini, SIG.

邁赫迪·胡賽尼（Mehdi Hosseini），SIG。

Yes, thanks for letting me ask a question. I want to follow up on the wire line and, Satish, I just want to look at the big picture you talked about the connection is moving from copper to actually moving towards optical. And when you look at the entire market for both networking tests as well as the testing that happens with the component and component migrating to optical, would it be fair to say that your content would increase as you migrate from 800 gig to 1.2 terabytes and if content increases, including both system level tests and semiconductor, what is the magnitude of the increase or you can [audit] help us qualitatively or quantitatively. And I have a follow up.

是的，謝謝你讓我問問題。我想跟進有線線路，薩蒂什，我只是想看看你談到的大局，連接正在從銅線轉向光纖。當您觀察整個網路測試市場以及組件和組件遷移到光纖時，是否可以公平地說，當您從 800 GB 遷移到 1.2 TB 時，您的內容會增加，如果內容增加，包括系統級測試和半導體，那麼增加的幅度是多少，或者您可以[審計]在定性或定量上幫助我們。我還有一個後續行動。

Now, that's a -- look, I think I don't know that I would say that from what we see that it's either going to be electrical or optical. I think it's electrical for some applications where you obviously have a better sort of economics and then optical where you need the performance and it's where the puck is moving to. So I think this sort of hybrid is where the solutions are needed, and I think being a company that has both technologies, we find ourselves in a really good position across the stack, as you pointed out, memory, compute, networking, so on and so forth.

現在，這是一個——看，我想我不知道我會說從我們所看到的情況來看它要么是電的要么是光學的。我認為對於某些應用來說電氣技術顯然具有更好的經濟效益，而對於需要性能的應用來說光學技術則是未來的發展方向。所以我認為這種混合就是解決方案所需要的，而且我認為作為一家同時擁有這兩種技術的公司，我們發現自己在整個堆疊中處於非常有利的位置，正如你所指出的，內存、計算、網絡等等。

Now with regard to the magnitude of the opportunity, typically as the complexity goes up, we would see the types of solutions that customers need, especially in early R&D, tend to be more complex and therefore, we're adding more value to our customers as we get there. Now, as those technologies mature, obviously the puck moves to the next one, and therefore, the volume may drop on the previous technology. It's always the case that that happens, but the net effect of these overlapping waves of technology is it really supports our long-term growth expectations for the company that we have set to be in the 5% to 7% range.

現在就機會的規模而言，通常隨著複雜性的增加，我們會看到客戶需要的解決方案類型（尤其是在早期研發中）往往會更加複雜，因此，我們會為客戶增加更多價值。現在，隨著這些技術的成熟，顯然冰球會轉移到下一個技術，因此，先前技術的音量可能會下降。這種情況總是會發生，但這些技術浪潮重疊的淨效應確實支持了我們對公司設定的 5% 至 7% 的長期成長預期。

Okay. And then follow up for Neil. If I just take a midpoint of your remi for fiscal year '25, assuming that the sequential growth is stronger in October versus July and embedding the tariff impact into your margin profile, would it be fair to say that there is a slight decline in operating margin from April to July and it would go kind of sideways from July to October. So your fiscal year '25 uppity margin would be kind of flattish compared to fiscal year '24.

好的。然後跟進尼爾。如果我只取您 25 財年的中間值，假設 10 月份的連續增長比 7 月份更強勁，並將關稅影響納入您的利潤率概況，那麼是否可以公平地說，4 月份至 7 月份的營業利潤率略有下降，而 7 月份至 10 月份的營業利潤率則會出現橫盤整理。因此，與 24 財年相比，您的 25 財年的溢價率將會持平。

One second. Yeah, I mean, I think as we look forward here, I think we're kind of range bound, I would say, in a pretty tight range. Obviously, we're going to see, we would expect to see a seasonal uplift here as we move from Q3 to Q4 but -- and as always, we would expect the abs and tariffs to continue to drive a strong incremental on that flow through.

一秒鐘。是的，我的意思是，當我們展望未來時，我認為我們處於某種區間內，我想說，在一個相當狹窄的範圍內。顯然，我們將會看到，隨著從第三季度進入第四季度，我們預計這裡會出現季節性上漲，但像往常一樣，我們預計 abs 和關稅將繼續推動這一流量的強勁增長。

Okay, thank you.

好的，謝謝。

That concludes our question-and-answer session for today. I would like to turn the call back to Paulenier Sims for any closing comments.

今天的問答環節到此結束。我想將電話轉回給 Paulenier Sims，請他發表最後評論。

Thank you, Tamia, and thank you, all, for joining us today. Have a great rest of your day.

謝謝你，塔米亞，也謝謝大家今天加入我們。祝您今天剩餘的時間過得愉快。

This concludes our conference call. You may now disconnect.

我們的電話會議到此結束。您現在可以斷開連線。