羅技 (LOGI) 2016 Q3 法說會逐字稿

Good day and welcome to the Logitech third-quarter financial results conference call. (Operator Instructions) This call is being recorded for replay purposes and may not be reproduced in whole or in part without written authorization from Logitech.

大家好，歡迎參加羅技第三季財務業績電話會議。（操作員說明）本次通話將被錄音，用於回放，未經羅技公司書面授權，不得全部或部分複製。

I would now like to introduce your host for today's call, Mr. Joe Greenhalgh, Vice President of Investor Relations and Corporate Treasurer at Logitech.

現在我謹向大家介紹今天電話會議的主持人，羅技公司投資者關係副總裁兼公司財務主管喬·格林哈爾格先生。

Welcome to the Logitech conference call to discuss the Company's financial results for the third quarter ending December 31, 2015. The press release, our prepared remarks and slides, as well as a live webcast of this call are available online at Logitech.com. As noted in our press release we published our prepared remarks on our website in advance of this call. Those remarks are intended to serve in place of extended formal comments today and they will not be read on this call.

歡迎參加羅技公司關於截至 2015 年 12 月 31 日的第三季財務業績的電話會議。新聞稿、我們準備好的演講稿和幻燈片，以及本次電話會議的現場網路直播，都可以在 Logitech.com 上線上取得。正如我們在新聞稿中所述，我們已提前在網站上公佈了準備好的演講稿。這些發言旨在代替今天冗長的正式發言，因此不會在本次電話會議上宣讀。

During the course of this call we may make forward-looking statements, including forward-looking statements with respect to future operating results, that are being made under the Safe Harbor of the Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated in the statements. Factors that could cause actual results to differ materially include those set forth in Logitech's annual report on Form 10-K dated June 5, 2015, and subsequent filings. The Company undertakes no obligation to update or revise any forward-looking statements as a result of new developments or otherwise.

在本次電話會議期間，我們可能會做出前瞻性陳述，包括有關未來經營績效的前瞻性陳述，這些陳述是根據 1995 年證券訴訟改革法案的安全港條款做出的。前瞻性陳述涉及風險和不確定性，可能導致實際結果與陳述中預期的結果有重大差異。可能導致實際結果與預期結果有重大差異的因素包括羅技公司於 2015 年 6 月 5 日發布的 10-K 表格年度報告以及後續文件中列出的因素。本公司不承擔因新情況或其他原因而更新或修改任何前瞻性聲明的義務。

Please note that today's call will include results reported on both a GAAP a non-GAAP basis. Non-GAAP reporting is provided to help you better understand our business; however, non-GAAP financial results are not meant to be considered in isolation or as a substitute for or superior to GAAP results. Non-GAAP measures have inherent limitations and should be used only in conjunction with Logitech's consolidated financial statements prepared in accordance with GAAP. Our press release includes a table detailing the non-GAAP measures together with the corresponding GAAP numbers and a reconciliation to GAAP.

請注意，今天的電話會議將包括按 GAAP 和非 GAAP 準則報告的業績。我們提供非公認會計準則報告，以幫助您更了解我們的業務；但是，非公認會計準則財務表現不應被孤立地看待，也不應被視為替代或優於公認會計準則績效。非公認會計準則指標有固有的局限性，只能與羅技依照公認會計準則編製的合併財務報表一起使用。我們的新聞稿包含一張表格，詳細列出了非GAAP指標以及對應的GAAP資料和與GAAP的調節表。

This information is also posted on our Investor Relations website. The slides that accompany this call are also available on our Investor Relations website. We encourage listeners to review these items.

此資訊也發佈在我們的投資者關係網站上。本次電話會議的幻燈片也可在我們的投資者關係網站上找到。我們鼓勵聽眾查看這些內容。

Unless noted otherwise, comparisons between periods are year-over-year and in constant currency, and all reported results and updated outlook are focused on continuing operations and do not include the performance of Lifesize, which is now reported under discontinued operations. This call is being recorded and will be available for replay on the Logitech website.

除非另有說明，各期間之間的比較均以同比和固定匯率計算，所有報告的業績和更新的展望均側重於持續經營，不包括 Lifesize 的業績，Lifesize 目前已在終止經營項下報告。本次通話將會被錄音，錄音內容將在羅技網站上提供回放。

Joining us today are Bracken Darrell, President and Chief Executive Officer, and Vincent Pilette, Chief Financial Officer. I'll now turn the call over to Bracken.

今天到場的嘉賓有總裁兼執行長布雷肯·達雷爾和財務長文森·皮萊特。現在我將把電話交給布雷肯。

Thanks, Joe, and thanks for joining us today. We've made strong overall progress transforming Logitech into a design-centric growth company and excellent progress this year. We've grown almost 10% through our first three quarters.

謝謝你，喬，也謝謝你今天加入我們。我們在將羅技轉型為以設計為中心的成長型公司方面取得了顯著的整體進展，並且今年取得了優異的成績。前三個季度我們實現了近10%的成長。

This quarter we had balanced growth across our three regions. We had the largest quarter ever in Asia, growing 15%, the fourth consecutive quarter of double-digit growth. In EMEA, we deliver the best growth in more than three years with sales up 10%; and the Americas continued to perform, growing 7%.

本季我們三大區域均實現了均衡成長。我們在亞洲實現了有史以來最大的季度成長，達到 15%，連續第四個季度實現兩位數成長。在歐洲、中東和非洲地區，我們實現了三年多來最好的成長，銷售額成長了 10%；美洲地區也持續保持良好表現，成長了 7%。

We all know these regional results are only possible because we are so focused on innovative well-designed products. That's Logitech's DNA. It's products like UE BOOM and MEGABOOM, CREATE for the iPad Pro, the MX Master wireless mouse, and our conference cams that drove our growth this quarter and year to date. Consumers love them, and we'll continue to invest in product innovation going forward.

我們都知道，這些區域性成果的取得，完全是因為我們專注於創新且設計精良的產品。這就是羅技的DNA。正是 UE BOOM 和 MEGABOOM、iPad Pro 的 CREATE、MX Master 無線滑鼠以及我們的會議攝影機等產品推動了我們本季和今年迄今為止的成長。消費者非常喜歡它們，我們將繼續加大對產品創新的投入。

Looking into our product categories, the overall growth category grew 17%. Excluding the tablet business, which we expected would be down once again due to the tablet market decline, the combination of video collaboration, mobile speakers, and gaming delivered a robust 34% growth.

從我們的產品類別來看，整體成長類別成長了 17%。除去平板電腦業務（我們預計由於平板電腦市場下滑，該業務將再次下滑），視訊協作、行動揚聲器和遊戲業務的組合實現了強勁的 34% 的成長。

Video collaboration grew 62%, another powerful quarter. Cloud-based videoconferencing is growing fast, and we are well positioned to grow right along with it.

視訊協作成長了 62%，又是一個強勁的季度。基於雲端的視訊會議發展迅速，我們已做好充分準備，與它共同發展。

You could say that our approach to video collaboration reflects the neutrality of our Swiss roots, with our conference cams designed to be compatible with all cloud-based services. As cloud-based video rapidly penetrates large and small enterprises, our audio-video equipment activates the cloud solution at a remarkably good value.

可以說，我們對視訊協作的態度體現了我們瑞士根深蒂固的中立性，我們的會議攝影機設計成與所有基於雲端的服務相容。隨著基於雲端的視訊迅速滲透到大中小型企業中，我們的影音設備以非常優惠的價格啟動了雲端解決方案。

Mobile speakers grew 44%, reaching record high sales for a single quarter and surpassing the previous record set just last quarter. Our mobile speaker lineup is powerful, including UE BOOM 2, launched this quarter to replace UE BOOM, and MEGABOOM, and ROLL.

行動音箱銷量成長了 44%，創下單季銷量新高，超過了上個季度創下的紀錄。我們的行動揚聲器產品線功能強大，包括本季推出的 UE BOOM 2（取代 UE BOOM）、MEGABOOM 和 ROLL。

We're in a great position going forward, as the popularity of music streaming services continues to drive overall market growth worldwide. Even the Beatles -- even the Beatles -- are now streaming. And we'll continue to offer more features and benefits to our users, both new and existing, through upgrades in our software.

我們未來的發展前景非常有利，因為音樂串流服務的普及將持續推動全球市場整體成長。就連披頭四樂團——就連披頭四——現在也開始在線上播放了。我們將繼續透過軟體升級，為新舊用戶提供更多功能和優勢。

Gaming delivered its highest sales quarter ever in Q3 with growth of 19%. Our gaming growth came from sales of PC gaming peripherals, which were up 25%. The growth was driven by our new products, with particular strength in Q3 for keyboards and headsets.

遊戲產業在第三季實現了有史以來最高的季度銷售額，成長了 19%。我們的遊戲業務成長主要來自PC遊戲週邊的銷售，該類產品成長了25%。成長主要得益於我們的新產品，其中鍵盤和耳機在第三季表現尤為強勁。

The tablet and other accessories category continued to be weak, as is the tablet market that drives it. The bright spot for us in Q3 was strong sales of our CREATE keyboard for the iPad Pro. Demand exceeded supply during the quarter due to the strong initial reception.

平板電腦及其他配件品類持續疲軟，支撐此品類的平板電腦市場也同樣疲軟。第三季我們最大的亮點是iPad Pro專用CREATE鍵盤的強勁銷售。由於初期市場反應熱烈，本季需求超過了供應。

Our profit maximization category performed well in Q3 as well, with sales up by 5%. We continue to gain share in all of our PC peripheral categories while significantly outperforming the market for new PC shipments, and we feel very good about our formula for maintaining leadership and outperforming the market in these categories going forward.

第三季度，我們的利潤最大化類別也表現良好，銷售額成長了 5%。我們在所有 PC 週邊類別中持續擴大市場份額，同時在新 PC 出貨量方面也顯著優於市場，我們對未來在這些類別中保持領先地位並超越市場的策略感到非常滿意。

Now let me turn it over to Vincent.

現在我把麥克風交給文森。

Thanks, Bracken, and good morning, everyone. Good afternoon for those of you in Europe.

謝謝你，布雷肯，大家早安。歐洲的朋友們，下午好。

This quarter is a milestone in our transformation. We are delivering on our commitments and exceeding expectations.

本季是我們轉型過程中的一個里程碑。我們履行了承諾，並且超越了預期。

At the beginning of the fiscal year, we told you we would exit the OEM business in FY16, and we did. Working collaboratively with our customers and other stakeholders, we processed our last shipments on December 23, ahead of plan. We smoothly mostly exited the business without disruption or writeoff.

在本財年伊始，我們告訴大家，我們將在 2016 財年退出 OEM 業務，我們也這麼做了。我們與客戶和其他利害關係人通力合作，提前於 12 月 23 日處理了最後一批貨物。我們基本上順利地退出了這項業務，沒有造成任何中斷或損失。

At the beginning of the year we also told you that Lifesize was not strategic to our mission and long-term success. We took action. We restructured and divested that business into a separate, independent company.

年初的時候我們也告訴大家，Lifesize 對我們的使命和長期成功來說並非策略性的。我們採取了行動。我們對該業務進行了重組，並將其剝離成一家獨立的公司。

Although we still own a minority stake, we have no more operational involvement. Therefore, moving forward, Lifesize results will have no impact on our operating results and prior periods have been re-classed under discontinued operations. What we used to call our retail business is now our only business, the new Logitech.

雖然我們仍然持有少數股權，但我們已經不再參與營運。因此，未來 Lifesize 的業績將不會對我們的經營業績產生任何影響，先前的期間已重新歸類為終止經營業務。我們以前稱之為零售業務的，現在已成為我們唯一的業務，即新的羅技公司。

Our broad-based performance in Q3 and through the first three quarters of the fiscal year has positioned us to exceed our original FY16 financial outlook. We have consistently delivered better-than-expected sales growth and better-than-expected profitability while building the foundation for our long-term growth.

我們在第三季以及本財年前三個季度的全面出色表現，使我們能夠超越原定的 2016 財年財務預期。我們持續實現了超出預期的銷售成長和獲利能力，同時為我們的長期成長奠定了基礎。

Our Q3 sales grew 9% in constant currency and approximately 10% year to date. All three regions grew for the fourth straight quarter, demonstrating sustained momentum despite a challenging environment.

第三季銷售額以固定匯率計算成長了 9%，年初至今成長了約 10%。三個地區連續第四個季度實現成長，展現出在充滿挑戰的環境下仍保持成長勢頭的良好勢頭。

As Bracken said, our strong results are based on innovative, well-designed products and we will continue to invest in product innovation. R&D is up 8% year-to-date.

正如布雷肯所說，我們所取得的優異成績是基於創新、精心設計的產品，我們將持續投資於產品創新。今年迄今為止，研發支出增加了 8%。

Our strong results are also based on operational excellence increasingly becoming part of the fabric of the new Logitech. With a sharp focus we continue to generate cost savings that have helped offset the impact from stronger US dollar on our gross margin during FY16. Gross margin was 33.6%, down 170 basis points and slightly up quarter-over-quarter.

我們所取得的優異成績也得益於卓越的營運能力，而這正日益成為新羅技企業文化的重要一環。透過精準的策略，我們持續降低成本，這有助於抵銷美元走強對我們 2016 財年毛利率的影響。毛利率為 33.6%，下降 170 個基點，較上季略有成長。

As we told you at the beginning of the year we are offsetting more than half of the currency related decline through a combination of pricing actions, product savings, and manufacturing cost efficiencies such as packaging redesigns, using lower-cost integrated circuits in [lines], or using less air shipments. We are delivering on that commitment.

正如我們在年初告訴你們的那樣，我們正在透過價格措施、產品節約和製造成本效率（例如包裝重新設計、在生產線中使用成本更低的積體電路或減少空運）來抵消一半以上的匯率相關損失。我們正在履行這項承諾。

For the year our gross margin now, excluding Lifesize, is expected to be approximately 34%. Our long-term target of 35% remains unchanged as we factored the exit from OEM and Lifesize into our considerations when we set our long-term business model and shared it with you at our last Analyst and Investor Day.

今年，不包括 Lifesize 在內的毛利率預計約為 34%。我們35%的長期目標保持不變，因為我們在製定長期商業模式時已經將退出OEM和Lifesize納入考慮，並在上次分析師和投資者日上與大家分享了這個模式。

Our rigor in managing product and supply chain costs extends to our operating expenses. We held our non-GAAP operating expenses flat in Q3 as well as on a year-to-date basis, thanks to our ongoing actions to reduce our overhead and infrastructure costs while creating at the same time investment capacity to drive growth.

我們對產品和供應鏈成本的嚴格管理也延伸到了我們的營運費用。由於我們持續採取措施降低管理費用和基礎設施成本，同時創造投資能力以推動成長，因此我們在第三季以及年初至今保持了非GAAP營運費用的穩定。

Our G&A costs, which represent a portion of the total infrastructure costs, are down 6% in absolute value and represent 3.5% of revenue in the quarter, the lowest ratio in the last 10 years. As we have mentioned before, we're investing a portion of the savings to build a successful portfolio in productivity, music, gaming, and video collaboration as well as adjacent growth opportunities -- what we call seeds. While these trends should continue, our total operating expenses will move towards the long-term target of 25% of revenue or less on an annual basis.

我們的一般及行政費用（佔基礎設施總成本的一部分）絕對值下降了 6%，佔本季收入的 3.5%，是近 10 年來的最低比例。正如我們之前提到的，我們將把一部分節省下來的資金投入到生產力、音樂、遊戲和視訊協作以及相關成長機會（我們稱之為種子基金）的領域，以建立成功的投資組合。儘管這些趨勢應該會繼續下去，但我們的總營運支出將朝著年度收入的 25% 或更低的長期目標邁進。

Operational excellence also means strong cash generation. Here too we are delivering on our commitments and exceeding expectations.

卓越的營運也意味著強勁的現金流。在這裡，我們也履行了承諾，並且超越了預期。

We told you we expected to have strong cash generation in the second half, and our results are ahead of plan. Our cash flow from operations was $166 million in Q3 and up 10% on a year-to-date basis. As a result, our cash conversion cycle in the quarter was just 14 days, the lowest in the Company's history.

我們曾告訴你們，我們預計下半年現金流將強勁成長，而我們的業績超出了預期。第三季我們的營運活動現金流為 1.66 億美元，比年初至今成長了 10%。因此，本季我們的現金週轉週期僅 14 天，是公司史上最短的。

The single biggest driver of our strong cash generation was the reduction in our inventory, down by $73 million from Q2 and up only $7 million year-over-year. We said last quarter that we expected the incremental inventory that we built in the first half to decline through the remainder of the year. We exceeded our results through a combination of operational improvements and higher-than-expected sales.

我們強勁現金流的最大驅動因素是庫存減少，比第二季減少了 7,300 萬美元，比去年同期僅增加了 700 萬美元。我們上個季度曾表示，預計上半年新增庫存將在今年剩餘時間內下降。我們透過營運改善和高於預期銷售額的雙重努力，超額完成了業績目標。

Our strong balance sheet and net cash position of $505 million enable us to act on every front. We will continue to invest in our business and look for tuck-in acquisitions. Our annual dividend and opportunistic share buyback strategy remain in place, with roughly $170 million in dividends expected over the next two years and $200 million remaining on our current share repurchase program. And on that note, Bracken, I'll pass it back to you.

我們強勁的資產負債表和 5.05 億美元的淨現金狀況使我們能夠在各個方面採取行動。我們將繼續投資我們的業務，並尋找合適的收購機會。我們的年度分紅和機會性股票回購策略仍然有效，預計未來兩年將派發約 1.7 億美元的股息，而我們目前的股票回購計畫還剩下 2 億美元。那麼，布雷肯，我就把麥克風交還給你了。

Thanks, Vincent. We're really excited about our momentum as we enter the last quarter of fiscal-year 2016. In the past three years we've transformed Logitech.

謝謝你，文森。進入 2016 財年最後一個季度，我們對目前的良好發展勢頭感到非常興奮。過去三年，我們徹底改變了羅技。

We're performing across all three regions and across our portfolio, and we have the strongest portfolio ever. The strategy is working.

我們在三大區域和所有投資組合中都表現出色，並且擁有有史以來最強大的投資組合。這個策略奏效了。

That brings me to our outlook. We started the year with an outlook for fiscal-year 2016 non-GAAP operating income of $150 million and constant currency retail sales growth of 7%. Given our momentum and strong performance through the first three quarters of the year, we've increased our outlook for fiscal-year 2016 non-GAAP operating income to $170 million and for constant currency retail sales growth to between 7% and 9%.

這就引出了我們的展望。年初，我們預計 2016 財年非 GAAP 營業收入將達到 1.5 億美元，以固定匯率計算的零售銷售額將成長 7%。鑑於我們今年前三個季度的良好勢頭和強勁表現，我們將 2016 財年非 GAAP 營業收入預期提高至 1.7 億美元，並將按固定匯率計算的零售銷售成長預期提高至 7% 至 9%。

And with that, Vincent and I are available now to take your questions. Please follow the instructions of the operator.

好了，現在我和文森可以回答大家的問題了。請遵照操作員的指示。

(Operator Instructions) Joern Iffert, UBS.

（操作說明）Joern Iffert，瑞銀集團。

Yes, good morning, gentlemen. Thanks for taking my question. The first one would be: Can you please help us to understand what is your plan for launching new product categories for fiscal-year 2017? Shall we expect one, two, or three, and will it be a modification of existing categories? Or can we also expect totally new categories?

是的，早安，先生們。謝謝您回答我的問題。第一個問題是：請問貴公司在 2017 財政年度推出新產品類別的計畫是什麼？我們該期待一個、兩個還是三個？這會是對現有類別的修改嗎？或者我們也可以期待全新的類別？

And the second question would be the competitive environment. Have you realized any changes here in terms of new players coming in, old players exiting? An update here would be appreciated.

第二個問題是競爭環境。你有沒有註意到這裡在有新玩家加入、老玩家退出方面有什麼變化？希望您能在此提供最新進展。

And then, you have highlighted that 50% of the FX hits are offset already in fiscal-year 2016. Can we assume when you annualize it there should be support coming from the average selling price increases and cost savings done in 2016, that we should see the other 50% benefits in 2017? Thanks very much.

此外，您也指出，2016 財年已經抵銷了 50% 的外匯衝擊。我們能否假設，如果將年化收益計算出來，2016 年平均售價上漲和成本節約將起到支撐作用，那麼 2017 年我們應該能看到剩餘的 50% 收益？非常感謝。

Okay. I got three questions there. Let me take two and I'm going to hand one off to Vincent -- although you can add color to anything you like, Vincent. First, Joern, you ask what's our plan for entering new categories as we go into next fiscal year. As we normally say and I'll say it again, we don't disclose what we're going to go into in terms of new categories.

好的。我當時有三個問題。讓我拿兩張，然後我把其中一張交給文森特——不過文森特，你想給任何東西上色都可以。首先，Joern，你問的是，隨著我們進入下一個財政年度，我們進入新領域的計畫是什麼。正如我們通常所說，我再說一遍，我們不會透露我們將要進入哪些新類別。

What I will say is you can expect a lot of innovation through our existing categories, and we have seed projects in place that continue to mature. And when we feel like we've got a really compelling offering, you can expect that we will bring those out.

我想說的是，大家可以期待我們現有產品類別中湧現出許多創新，而且我們已經啟動了一些正在不斷改進的種子計畫。當我們覺得有了真正有吸引力的產品時，你們可以期待我們會推出它們。

Second, in terms of competitive environment, we operate across many different categories, and we have lots of different competitors, and they're always changing. We're vigilant about everybody who might enter the space or has, and it makes this a really exciting business.

其次，就競爭環境而言，我們的業務涵蓋許多不同的類別，我們有許多不同的競爭對手，而這些競爭對手總是不斷變化。我們對任何可能進入或已經進入這個領域的人都保持警惕，這使得這個行業變得非常令人興奮。

I think as we go into new things you're going to see more of it, but the key for us is we really believe that if we invest in technology and continue to develop our design skills, we can compete with anybody we might see enter our categories, and that's our fundamental game plan for new and existing categories.

我認為隨著我們不斷涉足新領域，你會看到更多這樣的情況，但對我們來說，關鍵在於我們堅信，如果我們投資於技術並不斷提升我們的設計技能，我們就能與任何進入我們領域的競爭對手一較高下，而這正是我們針對新舊領域制定的基本戰略。

I'm going to hand the FX question off to Vincent.

我將把FX方面的問題交給Vincent來回答。

On the currency, just to remind everyone, when in March of last year we got hit by currency we explained the flow-through and the significant impact it has on our gross margin. We committed to recover at least a third of it in FY16. We're doing better than expected at this point in time.

關於匯率問題，提醒大家一下，去年三月我們受到匯率衝擊時，我們解釋了匯率波動的影響以及它對我們毛利率的重大影響。我們承諾在 2016 財年至少會收回其中的三分之一。目前來看，我們的情況比預期好。

We also said at the time that in the long run we would expect to fully recover on the currency. I'm not going to exactly guide FY17 now; we will do that at our Analyst Day. And of course it will also depend where currency will land between now and March, right?

我們當時也說過，從長遠來看，我們預期該貨幣將完全復甦。我現在不會具體預測2017財年的情況；我們將在分析師日上進行預測。當然，這還要取決於從現在到三月這段時間貨幣的走勢，對吧？

But we definitely in the long run expect to fully recover. And that's why we are holding our business model today at 35% gross margin or more.

但從長遠來看，我們肯定能夠完全復甦。這就是為什麼我們目前將毛利率維持在 35% 或以上的原因。

All right; thanks very much. (technical difficulty) quickly follow-up on the competitive and the [change]. Your market share has been at least maintained and some peripheral focus of Apple or Nest hasn't really shaken up anything so far.

好的，非常感謝。（技術難題）迅速跟進競爭對手和[變化]。你的市場份額至少得以維持，而蘋果或Nest等公司的一些邊緣化舉措到目前為止並沒有真正撼動任何事情。

Yes, our market shares continue to be intact. In fact we're growing market shares in virtually all of our categories around the world.

是的，我們的市佔率依然保持完好。事實上，我們在全球幾乎所有品類中的市佔率都在成長。

And we're continuing to invest very aggressively -- as Vincent mentioned, up 8% year-over-year in innovation. We're going to keep doing that.

我們將繼續大力投資——正如文森特所提到的那樣，創新方面的投資年增了 8%。我們會繼續這樣做。

Thanks very much.

非常感謝。

Tavis McCourt, Raymond James.

Tavis McCourt，Raymond James。

Hey, guys. Hey, thanks for taking my question, Bracken. First, a couple housekeeping items for Vincent.

嘿，夥計們。嘿，謝謝你回答我的問題，布雷肯。首先，給文森提幾件家事。

The discontinued ops was about a $20 million net loss year-to-date. Is that similar to what the non-GAAP EBIT impact is of Lifesize as well? Or is there some kind of tax benefit, where there is a material difference there?

截至目前，已終止的業務淨虧損約 2,000 萬美元。這與 Lifesize 的非 GAAP EBIT 影響是否類似？或者是否存在某種稅收優惠，使得兩者之間存在實質差異？

Then the other housekeeping one, Vincent, was I don't think there were any stock buybacks in the quarter. Were there any circumstances that led to that?

文森特，另一個家事是，我認為本季沒有任何股票回購。導致這種情況發生的具體情況是什麼？

Yes. Discontinued operations, which is Lifesize -- Lifesize in the first half of the year had an operating loss on a non-GAAP basis of about $10 million. We explained at the last earnings call that we restructured that business on October 1, which was part of the restructuring charge of $5 million to $7 million that we booked last quarter for that restructuring. That plan called for breakeven results on a non-GAAP basis for Lifesize in the second half.

是的。已終止營運的業務，即 Lifesize——Lifesize 在今年上半年的非 GAAP 準則下經營虧損約為 1,000 萬美元。我們在上次財報電話會議上解釋說，我們於 10 月 1 日對該業務進行了重組，這是我們上個季度為該重組計提的 500 萬至 700 萬美元重組費用的一部分。該計劃要求 Lifesize 在下半年實現非 GAAP 準則下的損益平衡。

When you move into discontinued operations, we move the non-GAAP operating loss plus the restructuring plus the stock-based compensation, which leads to your minus $20 million that you have seen. So minus $10 million was the answer, and breakeven for the second half was the projection.

當您將業務轉為終止經營時，我們將非GAAP經營虧損加上重組費用加上股票選擇權費用，導致您看到的-2000萬美元虧損。所以答案是虧損 1000 萬美元，預計下半年能夠收支平衡。

Also note that we expect a gain on a GAAP business -- we'll exclude it from our non-GAAP -- of $15 million to $20 million noncash gain for closing the Lifesize deal here on December 28, which is part of our Q4 quarter. That will be offsetting that discontinued operation of minus $20 million on a year-to-date basis.

另請注意，我們預計 GAAP 業務收益（我們將從非 GAAP 業務中排除）為 1500 萬美元至 2000 萬美元的非現金收益，這筆收益來自 12 月 28 日完成的 Lifesize 交易，該交易屬於我們的第四季度。這將抵消今年迄今因業務終止而造成的 2,000 萬美元虧損。

Then the second question is around buyback. We put our buyback on hold when we were discussing the term sheet with the investors that were taking operational control of Lifesize. It started right at the beginning of the quarter when the window opened that happened, and so we had to close it. And we unfortunately only closed that deal at the end of December and so could not buy during the quarter.

第二個問題是關於回購的。在與即將接管 Lifesize 營運控制權的投資者討論條款清單時，我們暫停了回購計畫。事情就發生在季度初，當時機會窗口打開，所以我們不得不把它關掉。很遺憾，我們直到 12 月底才完成那筆交易，因此本季無法進行採購。

Moving forward in the absence of any material information that we would have, we will continue and resume the buyback.

鑑於目前我們尚未掌握任何實質訊息，我們將繼續並恢復回購計劃。

Got you. Then you'll still own a minority portion of Lifesize, correct? So if there are profits or losses in any given quarter we'll see that below the operating line; is that the right way to think about it?

抓到你了。那麼你仍然會擁有 Lifesize 的少數股權，對嗎？所以，如果某個季度有獲利或虧損，我們會在營業額下方看到這些獲利或虧損；這種理解方式對嗎？

We have no operational control. The accounting method will be the cost method. So we will evaluate the value of that stake, and if there is an impairment on an annual basis of that investment, it will be below the line. We'll not consolidate the results on a quarterly basis for Lifesize operational results.

我們沒有營運控制權。會計方法將採用成本法。因此，我們將評估該投資的價值，如果該項投資每年出現減損，則減損部分將列於下方。Lifesize的營運業績將不會按季度進行合併。

Great. Then, Bracken, my question for you is -- another really strong performance in the profit maximization categories. And as I'm looking at the numbers here it looks like it's not just ASP increases, but the volumes are actually reasonably steady; and obviously the PC numbers have not been, as a category.

偉大的。那麼，布雷肯，我的問題是──你在利潤最大化類別中又一次表現出色。從這些數據來看，似乎不只是平均售價上漲，銷售量也相當穩定；而個人電腦的銷售量作為一個整體顯然並非如此。

So what I'm wondering is -- I wonder if you could talk about market growth that you see in these categories versus market share gains that Logitech has had. You mentioned you've been gaining share in most categories. Is this the market holding in better than the overall PC category, or is this just the impact of Logitech taking share? Thanks.

所以我想知道的是——您能否談談您在這些類別中看到的市場成長情況，以及羅技所取得的市場份額成長情況。您提到您在大多數類別中的市場份額都在成長。這是指該市場整體表現優於PC產業整體水平，還是僅僅因為羅技搶佔了市場份額？謝謝。

I'd say three things, three responses to that. First one is, even though the PC market continues to decline -- it declined 11% this quarter -- if you look in front of you, most of you if you're in your offices probably have a PC. So the PC usage actually is not declining like that at all.

對此我有三點看法，三種回應。首先，儘管個人電腦市場持續下滑——本季下滑了 11%——但如果你環顧四周，你會發現，如果你在辦公室裡，大多數人可能都有一台個人電腦。所以，實際上個人電腦的使用率根本沒有像人們想像的那樣下降。

So as a result people are still using PCs, and PC peripherals are still pretty interesting to upgrade your experience with. So I think that's one of the thing that's continuing to keep our PC peripherals business pretty healthy.

因此，人們仍在使用個人電腦，而個人電腦週邊仍然是提升使用者體驗的絕佳選擇。所以我認為這是我們的電腦週邊業務能夠持續維持健康發展的原因之一。

The second thing is, yes, there is weakness in different categories in the PC peripherals space, but we're gaining share. We're continuing to innovate, we don't intend to let up, and I think that formula can continue for quite some time, if not forever. Did I answer your question there, Tavis?

第二點是，沒錯，PC週邊領域的各個類別都存在弱點，但我們不斷擴大市場佔有率。我們將繼續創新，不打算放鬆，我認為這種模式可以持續相當長一段時間，甚至永遠。塔維斯，我回答你的問題了嗎？

Yes. Thanks, Bracken.

是的。謝謝你，布雷肯。

Andrew Humphrey, Morgan Stanley.

安德魯漢弗萊，摩根士丹利。

Hi, there. Thanks for taking the question and congratulations on the quarter. Maybe just one follow-up on the guidance upgrade. From what you're saying, if non-GAAP operating loss for Lifesize in the first half was $10 million and you're budgeting breakeven for the second half, that suggests to me that about half of the upgrade from $150 million to $170 million is organic and like-for-like. So just a confirmation there.

你好呀。感謝您回答這個問題，並祝賀您本季取得好成績。或許只需要對指導意見升級做一次後續跟進。根據你的說法，如果 Lifesize 上半年的非 GAAP 營業虧損為 1000 萬美元，並且你預計下半年將實現盈虧平衡，那麼在我看來，從 1.5 億美元到 1.7 億美元的增長中，大約有一半是內生增長和同類增長。所以，我只是想確認一下。

The other question I had was around working capital. Clearly you saw a substantial benefit from winding up inventory on the OEM business over the quarter. How much of the inflow that you saw there was actually OEM related?

我還有另一個問題，是關於營運資金的。顯然，本季透過清理 OEM 業務的庫存，您獲得了顯著的收益。你看到的流入量中有多少實際上是與OEM相關的？

I think looking into Q4 I think you've also said you aim to work on receivables between now and the end of the year. So can we expect another strong operating cash performance in your fourth quarter?

我認為，展望第四季度，您也曾表示，您計劃從現在到年底處理應收帳款問題。那麼，我們是否可以預期貴公司第四季將繼續保持強勁的營運現金流表現？

Yes, let me handle those two questions, and let me start with the cash flow from operations. We generated $166 million in the quarter. Normally I guide -- also we've done the formal guidance before you, modeling that we generate cash flow from operations at around 1 time non-GAAP net income.

好的，讓我來解答這兩個問題，首先讓我從經營活動產生的現金流說起。本季我們創造了1.66億美元的收入。通常我會提供指導——而且我們之前也已經正式提供過指導，模型顯示我們從經營活動中產生的現金流約為非GAAP淨收入的1倍。

We've done that in Q3, which is about half of the cash flow from operations. The other half is coming from the inventory reductions.

我們在第三季完成了這項工作，這大約佔營運現金流的一半。另一半則來自庫存減少。

From the OEM side, our OEM inventory was around $18 million decrease on the year-over-year basis. So that's for -- the first question was -- can you remind me the first question was, Andrew?

從 OEM 方面來看，我們的 OEM 庫存比去年同期減少了約 1800 萬美元。所以，第一個問題是──安德魯，你能提醒我第一個問題是什麼嗎？

Just around the guidance increase and trying to reconcile how much was like-for-like, if you like, versus Lifesize-related.

就在指導意見上調前後，試圖弄清楚有多少是同類產品（如果你願意這麼說的話）的增長，又有多少是與真人大小相關的增長。

Yes, that's why I forgot the question. It's a simple answer. The answer is yes. You are correct.

是的，這就是我忘記問題的原因。答案很簡單。答案是肯定的。你說得對。

So half of the guidance increase is from Lifesize. The other half is from our over-delivery year-to-date.

因此，指導價上漲的一半來自 Lifesize。另一半來自我們今年迄今為止的超額交付。

Great. Thank you.

偉大的。謝謝。

(Operator Instructions) Andreas Mueller,

（操作說明）安德烈亞斯·穆勒

Hello; thanks for taking my question. The Circle product was not mentioned in the prepared remarks. Can you give us an update on that product, and how well is it selling, and what was the share in the video collaboration category? That's the first question.

您好，感謝您回答我的問題。準備的發言稿中沒有提到Circle產品。能否介紹一下該產品的最新情況，銷售情況如何，在視訊協作類別中佔據了多少市場份額？這是第一個問題。

The last one was -- is actually: What was the operating margin for OEM in the last quarter? And would you expect to incur still some costs for OEM as well in the fourth quarter, or is the chapter basically closed there?

最後一個問題是：上個季度 OEM 的營業利潤率是多少？那麼，您預計第四季OEM廠商還會承擔一些成本嗎？還是說這方面的問題已經基本解決了？

Yes, I'll answer the first one; I'll let Vincent answer the second one. The Circle camera launched in October in a very selected number of countries and accounts, and we're very excited about it.

好的，第一個問題我來回答；第二個問題就讓文森來回答吧。Circle 相機於 10 月在少數國家和地區推出，我們對此感到非常興奮。

I think if you haven't -- if those of you on the call haven't bought one, we'd be happy to offer a discount if we could do that from a -- probably we can't; but you certainly could buy one, and I think you'll find the experience is really remarkable. I know those of us who -- around this table where we're having this call check ours probably 10 times a day.

我想，如果你們——如果參加電話會議的各位還沒有購買的話——我們很樂意提供折扣，如果我們能做到的話——可能我們做不到；但你們當然可以購買一個，我想你們會發現體驗真的非常棒。我知道我們這些圍坐在桌旁進行電話會議的人，一天可能會查看手機 10 次。

It's way too early to judge how it's doing. We're getting distribution in the places we expected. We're getting merchandising in the way we expected, and we're continuing to look at the whole market and figure out what role we're going to play in it.

現在判斷它的表現還為時過早。我們在預期的地區實現了產品分銷。我們正在按預期進行商品銷售，並且我們將繼續關注整個市場，並弄清楚我們將在其中扮演什麼角色。

But we're really excited about the in-home camera market, the opportunity for us to get in and offer a differentiated product that also delivers on the core experience of an in-home camera, and we're doubling down on it and excited about it. So I'll give you an update going forward, but so far it's getting into the places we expected, and people are buying, and I'm getting continuous feedback that people love the product.

但我們對家用攝影機市場感到非常興奮，我們有機會進入這個市場，提供差異化的產品，同時還能提供家用攝影機的核心體驗，我們正在加倍投入，並對此感到興奮。接下來我會帶給大家最新消息，但就目前而言，產品已經進入了我們預期的銷售區域，人們都在購買，而且我不斷收到回饋，人們都很喜歡這款產品。

On the OEM side, we mentioned in last March that we were running Lifesize and OEM breakeven on a combined basis. Lifesize lost about $10 million in the first half, with breakeven projected for second half.

在 OEM 方面，我們曾在去年三月提到，Lifesize 和 OEM 業務合計實現了損益平衡。Lifesize公司上半年虧損約1,000萬美元，預計下半年將達到損益兩平。

On the OEM side, we tried to hold breakeven as well as we were declining, decreasing the cost, decreasing the inventory, and holding it breakeven. In this last quarter because the better-than-expected sales were able to fully flush all of the inventory, we got a benefit from a reserve release of about $5 million. So OEM is slightly positive on a year-to-date basis, offsetting basically the Lifesize first-half decline.

在 OEM 方面，我們努力維持損益平衡，同時我們也努力減少成本、減少庫存，以維持損益平衡。由於上一季銷售額優於預期，足以完全消化所有庫存，我們從約 500 萬美元的儲備金釋放中獲益。因此，OEM 今年迄今為止略有增長，基本上抵消了 Lifesize 上半年的下降。

Moving forward there is no more inventory, there is no more risk, and there is no more expected revenue and/or return or other things in our P&L for OEM.

展望未來，OEM業務不再有庫存，不再有風險，損益表中也不再有預期收入和/或回報或其他事項。

Okay. Thank you.

好的。謝謝。

Thank you. It appears there are no further questions. At this time I'll turn the conference back over to Mr. Darrell for closing remarks.

謝謝。看來沒有其他問題了。現在我將把會議交還給達雷爾先生，請他作閉幕致詞。

Thanks to all of you we have very strong momentum going into our Q4, and we really look forward to updating you on our progress. I hope that we'll see many of you at our strategy and Analyst and Investor Day in Zurich on March 2. Thanks a lot for joining today, and we'll talk to you again soon.

感謝大家的支持，我們第四季的發展動能非常強勁，我們非常期待向大家報告我們的進展。希望我們能在3月2日於蘇黎世舉行的策略研討會暨分析師和投資者日活動上見到各位。非常感謝各位今天的參與，我們期待很快能再次與您交流。

Thank you.

謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線了。