Netscout Systems Inc (NTCT) 2023 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to NetScout's Second Quarter Fiscal Year 2023 Financial Results Conference Call. (Operator Instructions) As a reminder, this call is being recorded. Tony Piazza, Senior Vice President of Corporate Finance and his colleagues at NetScout are on the line with us today. (Operator Instructions) I would now like to turn the call over to Tony Piazza to begin the company's prepared remarks.

女士們先生們，感謝您的支持，歡迎參加 NetScout 的 2023 財年第二季度財務業績電話會議。 （操作員說明）作為提醒，此通話正在錄音中。公司財務高級副總裁 Tony Piazza 和他在 NetScout 的同事今天與我們聯繫。 （操作員說明）我現在想將電話轉給 Tony Piazza，開始公司準備好的講話。

Thank you, operator, and good morning, everyone. Welcome to NetScout's Second Quarter Fiscal Year 2023 Conference Call for the period ended September 30, 2022. Joining me today are Anil Singhal, NetScout's President and Chief Executive Officer; Michael Szabados, NetScout's Chief Operating Officer; and Jean Bua, NetScout's Executive Vice President and Chief Financial Officer.

謝謝接線員，大家早上好。歡迎參加截至 2022 年 9 月 30 日期間的 NetScout 2023 財年第二季度電話會議。今天加入我的是 NetScout 總裁兼首席執行官 Anil Singhal； NetScout 首席運營官 Michael Szabados；以及 NetScout 的執行副總裁兼首席財務官 Jean Bua。

There's a slide presentation that accompanies our prepared remarks. You can advance the slides in the webcast viewer to follow our commentary. Both the slides and the prepared remarks can be accessed in multiple areas within the Investor Relations section of our website at www.netscout.com, including the IR landing page under Financial Results, the webcast itself and under Financial Information on the Quarterly Results page.

我們準備好的評論附有一張幻燈片演示文稿。您可以在網絡廣播查看器中推進幻燈片以關注我們的評論。幻燈片和準備好的評論都可以在我們網站 www.netscout.com 的投資者關係部分的多個區域中訪問，包括財務結果下的 IR 登陸頁面、網絡廣播本身和季度結果頁面上的財務信息下。

Moving on to Slide #3. Today's conference call will include forward-looking statements. Examples of forward-looking statements include statements regarding our future financial performance or position, results of operations, business strategy, plans and objectives of management for future operations and other statements that are not historical facts. You can identify forward-looking statements by their use of forward-looking words such as anticipate, believe, plan, will, should, expect, or other comparable terms. We caution listeners not to place undue reliance on any forward-looking statements included in this presentation, which speak only as of today's date.

繼續幻燈片#3。今天的電話會議將包括前瞻性陳述。前瞻性陳述的例子包括關於我們未來財務業績或狀況、經營業績、業務戰略、未來經營管理計劃和目標的陳述以及其他非歷史事實的陳述。您可以通過使用諸如預期、相信、計劃、將、應該、期望或其他類似術語等前瞻性詞語來識別前瞻性陳述。我們提醒聽眾不要過分依賴本演示文稿中包含的任何前瞻性陳述，這些陳述僅在今天發表。

These forward-looking statements involve risks and uncertainties, and actual results could differ materially from the forward-looking statements due to known and unknown risks, uncertainties, assumptions and other factors, including, but not limited to, those described on this slide and in today's financial results press release. For a more detailed description of the risk factors associated with the company, please refer to the company's annual report on Form 10-K for the fiscal year ended March 31, 2022, on file with the Securities and Exchange Commission. NetScout assumes no obligation to update any forward-looking information contained in this communication or with respect to the announcements described herein.

這些前瞻性陳述涉及風險和不確定性，由於已知和未知的風險、不確定性、假設和其他因素，包括但不限於本幻燈片和今天的財務業績新聞稿。有關與公司相關的風險因素的更詳細描述，請參閱公司在美國證券交易委員會存檔的截至 2022 年 3 月 31 日的財政年度的 10-K 表格年度報告。 NetScout 不承擔更新本通訊中包含的或與此處描述的公告相關的任何前瞻性信息的義務。

Let's now turn to Slide #4, which involves non-GAAP metrics. While this slide presentation includes both GAAP and non-GAAP results, unless otherwise stated, financial information discussed on today's conference call will be on a non-GAAP basis only. The rationale for providing non-GAAP measures, along with the limitations of relying solely on those measures, is detailed on this slide and in today's press release. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with GAAP. Reconciliations of all non-GAAP metrics with the applicable GAAP measures are provided in the appendix of the slide presentation, in today's earnings press release and on our website. I will now turn the call over to Anil for his prepared remarks. Anil?

現在讓我們轉向幻燈片#4，它涉及非公認會計準則指標。雖然此幻燈片演示包括 GAAP 和非 GAAP 結果，除非另有說明，今天電話會議上討論的財務信息將僅基於非 GAAP。這張幻燈片和今天的新聞稿詳細介紹了提供非公認會計原則措施的理由，以及僅依賴這些措施的局限性。這些措施不應與根據公認會計原則編制的財務信息隔離或替代。所有非 GAAP 指標與適用的 GAAP 措施的對賬情況在幻燈片演示的附錄、今天的收益新聞稿和我們的網站上提供。我現在將把電話轉給 Anil，讓他準備好發言。阿尼爾？

Thank you, Tony, and good morning, everyone. Welcome, and thank you all for joining us today. Let's now turn to Slide #6 for a brief recap of our non-GAAP financial results in the second quarter and the first half of our fiscal year 2023.

謝謝你，托尼，大家早上好。歡迎，並感謝大家今天加入我們。現在讓我們轉向幻燈片#6，簡要回顧我們在第二季度和 2023 財年上半年的非公認會計原則財務業績。

Focusing first on the second quarter of fiscal year 2023, we delivered strong financial results and drove progress across our strategic growth priorities during the quarter. Importantly, this included further expanding our cybersecurity business. Second quarter revenue was $228.1 million, representing year-over-year growth of nearly 8%. Our revenue expansion was driven by 10% product revenue growth and more than 5% service revenue growth, both on a year-over-year basis. Of note, our cybersecurity and service assurance product lines continued to grow in the quarter on a year-over-year basis. With this revenue growth and our healthy operating leverage, we delivered $0.50 per diluted share in the second quarter of fiscal year 2023, representing diluted earnings per share growth of approximately 21% year-over-year.

首先著眼於 2023 財年第二季度，我們在本季度實現了強勁的財務業績，並推動了我們在戰略增長重點方面的進展。重要的是，這包括進一步擴大我們的網絡安全業務。第二季度收入為 2.281 億美元，同比增長近 8%。我們的收入增長是由 10% 的產品收入增長和超過 5% 的服務收入同比增長推動的。值得注意的是，我們的網絡安全和服務保障產品線在本季度繼續同比增長。憑藉這一收入增長和我們健康的運營槓桿，我們在 2023 財年第二季度實現了每股攤薄收益 0.50 美元，攤薄後每股收益同比增長約 21%。

Now moving on to the first half of fiscal year 2023. During the period, revenue was $436.9 million, growing by nearly 9% year-over-year. This increase was driven by product revenue growth of more than 14% and service revenue growth of nearly 4%. During the same period, cybersecurity revenue grew by 14%, while service assurance revenue grew by more than 6%. All comparisons are on a year-over-year basis. Additionally, we delivered $0.81 of diluted earnings per share in the first half of the fiscal year 2023, representing diluted earnings per share growth of approximately 21% year-over-year.

現在進入 2023 財年上半年。在此期間，收入為 4.369 億美元，同比增長近 9%。這一增長是由超過 14% 的產品收入增長和近 4% 的服務收入增長推動的。同期，網絡安全收入增長 14%，而服務保障收入增長超過 6%。所有比較都是按年進行的。此外，我們在 2023 財年上半年實現了 0.81 美元的攤薄每股收益，這意味著攤薄每股收益同比增長約 21%。

Now let's move to Slide #7 for some further perspective on marketing -- market and business insights. Starting on the cybersecurity front, we recently released our DDoS threat intelligence report for the first half of 2022. In it, we highlighted many of the current trends and challenges within this critically important area. Our report finding demonstrate how adept and sophisticated cyber criminals have become at leveraging new DDoS attack vectors and their other metrologies to attempt to bypass organization defense measures.

現在讓我們轉到第 7 張幻燈片，進一步了解市場營銷——市場和業務洞察力。從網絡安全方面開始，我們最近發布了 2022 年上半年的 DDoS 威脅情報報告。在報告中，我們強調了這一至關重要領域的許多當前趨勢和挑戰。我們的報告發現表明，網絡犯罪分子在利用新的 DDoS 攻擊媒介及其其他指標試圖繞過組織防禦措施方面已經變得多麼熟練和復雜。

The report also highlighted the significant geopolitical implications of today's DDoS attacks. In short, many of these bad actors are openly embracing online aggression to cause disruption and geopolitical unrest through the high-profile DDoS attack campaigns. (inaudible) with our state-of-the-art platform for increased visibility and defensibility, we play an important role in this ecosystem and remain confident in our ability to help customers navigate these challenges while also capitalizing on the opportunities of today's digital world.

該報告還強調了當今 DDoS 攻擊的重大地緣政治影響。簡而言之，這些不良行為者中的許多人通過備受矚目的 DDoS 攻擊活動公開接受在線侵略，以造成破壞和地緣政治動盪。 （聽不清）通過我們最先進的平台來提高可見性和防禦性，我們在這個生態系統中發揮著重要作用，並且對我們幫助客戶應對這些挑戰同時也利用當今數字世界的機遇的能力充滿信心。

In line with these trends, our Omnis suite of cyber intelligence product has continued to gain traction, although it still only accounts for a small portion of our revenue stream. During the second quarter, for example, one of our large customers continued to integrate with the NetScout platform by incorporating Omnis into the current installation base.

根據這些趨勢，我們的 Omnis 網絡情報產品套件繼續受到關注，儘管它仍然只占我們收入流的一小部分。例如，在第二季度，我們的一個大客戶通過將 Omnis 整合到當前的安裝基礎中，繼續與 NetScout 平台集成。

Additionally, we continue to innovate in the cybersecurity area, introducing new solutions like Arbor Insight to help address the evolving threat landscape. When combined with Arbor Sightline, this solution can dramatically enhance and extend the company's capabilities in threat detection, service delivery and network operator visibility.

此外，我們繼續在網絡安全領域進行創新，引入新的解決方案，如 Arbor Insight，以幫助應對不斷變化的威脅形勢。當與 Arbor Sightline 結合使用時，該解決方案可以顯著增強和擴展公司在威脅檢測、服務交付和網絡運營商可見性方面的能力。

Now let's turn to our customer verticals for more business insights, starting with our service provider. Service provider revenue increased by 11% year-over-year in the first half of fiscal year 2023. This increase was primarily due driven by higher revenue related to radio frequency propagation modeling project from Tier 1 carriers in North America. Importantly, we continue to seek carriers to invest in the 5G deployment, both for planning purposes as well as for stand-alone build-out, where these -- where these same carriers also are starting to deploy commercial traffic.

現在讓我們從我們的服務提供商開始，轉向我們的客戶垂直領域以獲得更多業務洞察力。服務提供商收入在 2023 財年上半年同比增長 11%。這一增長主要是由於北美一級運營商與射頻傳播建模項目相關的收入增加所致。重要的是，我們繼續尋求運營商投資於 5G 部署，既用於規劃目的，也用於獨立擴建，這些運營商也開始部署商業流量。

In our enterprise customer vertical, revenue grew by approximately 6% year-over-year in the first half of fiscal year 2023. This top line expansion was driven by growth in both our cybersecurity and service assurance business line as enterprises continue to demand best-in-class cybersecurity solution as well as visibility solutions capable of helping them to better protect their systems and facilitate the acceleration of their digital transformation. In addition, we are leveraging our growing set of comprehensive solutions to execute a platform approach, which is also starting to resonate with customers. Michael will provide more insight regarding customer wins within our verticals during his remarks.

在我們的企業客戶垂直領域，2023 財年上半年的收入同比增長約 6%。隨著企業繼續要求最好的服務，我們的網絡安全和服務保障業務線的增長推動了這一收入增長。一流的網絡安全解決方案以及能夠幫助他們更好地保護其係統並促進其數字化轉型的可見性解決方案。此外，我們正在利用我們不斷增長的綜合解決方案集來執行平台方法，這也開始引起客戶的共鳴。 Michael 將在他的講話中提供更多關於我們垂直領域內客戶獲勝的見解。

Now let's move to Slide #8 to review our outlook. Looking ahead, we plan to continue managing our operations prudently, taking a balanced approach to revenue growth and profitability. Overall, we recognize the current uncertainty in the macroeconomic environment. We also remain confident about our business prospects and are excited about the market opportunity we are seeing for our NetScout visibility and defensibility platform.

現在讓我們轉到幻燈片#8 來回顧一下我們的前景。展望未來，我們計劃繼續審慎管理我們的業務，採取平衡的方法來實現收入增長和盈利能力。總體而言，我們認識到當前宏觀經濟環境的不確定性。我們也對我們的業務前景充滿信心，並對我們看到的 NetScout 可見性和防禦性平台的市場機會感到興奮。

With this context, we are reiterating our fiscal year 2023 outlook that we shared with you in early August on our first quarter earnings call. As a reminder, this outlook target revenue in the range of $895 million to $925 million and non-GAAP EPS in the range of $1.91 to $2.03 for fiscal year 2023. Jean will provide additional color on our outlook in her remarks.

在此背景下，我們重申我們在 8 月初在第一季度財報電話會議上與您分享的 2023 財年展望。提醒一下，這一展望的目標是 2023 財年的收入在 8.95 億美元至 9.25 億美元之間，非公認會計準則每股收益在 1.91 美元至 2.03 美元之間。Jean 將在她的講話中為我們的前景提供更多色彩。

In summary, we delivered solid results in the second quarter and first half of our fiscal year 2023. We are driving clear progress to our strategic priorities, and we remain excited about our core service assurance and DDoS security solutions as well as our new and innovative Omnis solution. With a unique and powerful platform, deep industry expertise and established customer base, we are well positioned to help customers address the challenges and opportunities of today's increasingly connected and complex digital world. We look forward to sharing our progress with everyone throughout the remaining of our fiscal year. With that, I'll turn the call over to Michael.

總而言之，我們在 2023 財年第二季度和上半年取得了可觀的業績。我們正在推動我們的戰略重點取得明顯進展，我們對我們的核心服務保障和 DDoS 安全解決方案以及我們新的和創新的解決方案仍然感到興奮全方位解決方案。憑藉獨特而強大的平台、深厚的行業專業知識和成熟的客戶群，我們有能力幫助客戶應對當今日益互聯和復雜的數字世界的挑戰和機遇。我們期待在本財年剩下的時間裡與大家分享我們的進展。有了這個，我會把電話轉給邁克爾。

Thank you, Anil, and good morning, everyone. Slide 10 outlines the areas that I will be covering today, starting with customer wins. In our service provider customer's vertical, we continue to expand our installed base by leveraging both our incumbency and rich portfolio of offerings to better support providers as they steadily advance their 5G build-outs. As an example, during the quarter, we received a mid-7-figure order from a Tier 1 North American carrier that has consistently increased their 5G-related purchasing from us.

謝謝你，阿尼爾，大家早上好。幻燈片 10 概述了我今天將介紹的領域，首先是贏得客戶。在我們的服務提供商客戶的垂直領域，我們通過利用我們的在職和豐富的產品組合來繼續擴大我們的安裝基礎，以更好地支持提供商，因為他們穩步推進他們的 5G 建設。例如，在本季度，我們從一家北美 1 級運營商那裡收到了 7 位數的中位數訂單，該運營商一直在增加他們從我們這裡購買的 5G 相關產品。

This order was a combination of additional radio frequency propagation modeling, service assurance for their radio access network and other 5G-related products in the migration and capacity expansion of their network. Importantly, in addition to leveraging our solutions within their mobile business, this customer is also utilizing our service assurance platform within their corporate IT systems.

該訂單結合了額外的射頻傳播建模、無線接入網絡的服務保障以及其他 5G 相關產品，用於網絡遷移和容量擴展。重要的是，除了在其移動業務中利用我們的解決方案外，該客戶還在其企業 IT 系統中利用我們的服務保證平台。

In our enterprise customer vertical, we received a low 8-figure order from a large North American health insurance organization during the second quarter. Last year, this customer placed a 7-figure order with us for service assurance solutions. And this quarter, they added a full Omnis cybersecurity suite and additional service assurance solution to further utilize our platform's integrated capabilities. With the convenience of our shared visibility platform and power of our deep packet inspection at scale, we continue to see our comprehensive suite of enterprise solutions attention among our customers.

在我們的企業客戶垂直領域，我們在第二季度收到了來自北美一家大型健康保險機構的 8 位數的低訂單。去年，該客戶向我們訂購了 7 位數的服務保證解決方案。本季度，他們添加了完整的 Omnis 網絡安全套件和額外的服務保障解決方案，以進一步利用我們平台的集成功能。憑藉我們共享可見性平台的便利性和大規模深度數據包檢測的強大功能，我們繼續看到我們全面的企業解決方案套件受到客戶的關注。

Finally, as Anil mentioned in his discussion of our recent Threat Intelligent report, we continue to see an increased awareness around DDoS attacks and capacity expansion stemming from the rapid growth in the application traffic and the increasing retent geopolitical situation around the world. For example, in the second quarter, we received a mid-7-figure order from a large global financial institution that is based in the U.S. and is also a long-standing customer, to extend the DDoS mitigation capacity and upgrade their key data centers to 100-gigabits capacity.

最後，正如 Anil 在他對我們最近的威脅智能報告的討論中提到的那樣，我們繼續看到，由於應用程序流量的快速增長和全球地緣政治局勢的持續增加，人們對 DDoS 攻擊和容量擴展的認識不斷提高。例如，在第二季度，我們收到了來自一家總部位於美國且也是長期客戶的大型全球金融機構的 7 位數中位數訂單，用於擴展 DDoS 緩解能力併升級其關鍵數據中心到 100 Gb 的容量。

In terms of go-to-market activities, during the quarter, we continue to attend more in-person events. This provided us with additional opportunities to engage with our customers and demonstrate our platform's unique and innovative capabilities. For example, we recently attended the Black Hat Conference, one of the world's leading cybersecurity trade shows, as well as VMware Explore, a conference for digital transformation and cybersecurity. At these high-profile events, we engaged with new prospects and existing customers to demonstrate the power of our platform for integrated visibility and cybersecurity. Looking ahead, we plan to attend the upcoming AWS re:Invent conference in November of this year, where we will showcase NetScout's platform as well as our collaboration with AWS.

在上市活動方面，在本季度，我們繼續參加更多的面對面活動。這為我們提供了與客戶互動並展示我們平台獨特和創新能力的更多機會。例如，我們最近參加了世界領先的網絡安全貿易展之一的黑帽會議，以及數字化轉型和網絡安全會議 VMware Explore。在這些備受矚目的活動中，我們與新的潛在客戶和現有客戶進行了接觸，以展示我們平台在集成可見性和網絡安全方面的強大功能。展望未來，我們計劃參加今年 11 月即將舉行的 AWS re:Invent 大會，屆時我們將展示 NetScout 的平台以及我們與 AWS 的合作。

We have also continued to enhance our customer value proposition by collaborating with other major technology companies and have recently announced several of these initiatives. Through these collaborations, we can help our customers to better address the current threat landscape and navigate the challenges and opportunities of our digital world. An example is a joint strategic initiative with Ericsson and Swisscom, which was officially announced by Ericsson in October. Through this collaboration, we delivered what is believed to be the world's first solution for cloud-based packet data processing.

我們還通過與其他主要技術公司合作，繼續提升我們的客戶價值主張，並且最近宣布了其中的幾項舉措。通過這些合作，我們可以幫助我們的客戶更好地應對當前的威脅形勢，並駕馭我們數字世界的挑戰和機遇。一個例子是與愛立信和瑞士電信的聯合戰略計劃，愛立信在 10 月正式宣布了該計劃。通過這次合作，我們交付了被認為是世界上第一個基於雲的分組數據處理的解決方案。

By leveraging the strength of each organization, this solution can deliver meaningful improvements in network service assurance, analytics and cybersecurity. For example, this solution combines Ericsson's and NetScout's technologies to address the challenges of providing end-to-end monitoring and securing 5G networks when in a qualified and encrypted environment. As a result, Swisscom is utilizing the solution in this newly-deployed cloud-native DLS encrypted 5G network as well as for its existing services to ensure the delivery of mission-critical services with 5G.

通過利用每個組織的優勢，該解決方案可以在網絡服務保障、分析和網絡安全方面提供有意義的改進。例如，該解決方案結合了愛立信和 NetScout 的技術，以應對在合格和加密環境中提供端到端監控和保護 5G 網絡的挑戰。因此，瑞士電信正在這個新部署的雲原生 DLS 加密 5G 網絡及其現有服務中利用該解決方案，以確保通過 5G 交付關鍵任務服務。

Going forward, we aim to continue leveraging the strength of our platform to help our customers better navigate and capitalize on emerging opportunities in today's increasingly connected world. Thank you, everyone. That concludes my prepared remarks, and I will now turn the call over to Jean.

展望未來，我們的目標是繼續利用我們平台的優勢，幫助我們的客戶更好地駕馭和利用當今日益互聯的世界中的新興機遇。謝謝大家。我準備好的發言到此結束，我現在將把電話轉給 Jean。

Thank you, Michael, and good morning, everyone. I will review key metrics for our second quarter and first half of fiscal year 2023 and provide some additional commentary on our fiscal year 2023 outlook. As a reminder, this review focuses on our non-GAAP results, unless otherwise stated, and all reconciliations within our GAAP results appear in the presentation appendix. Regardless, I will note the nature of such comparisons.

謝謝你，邁克爾，大家早上好。我將回顧我們 2023 財年第二季度和上半年的關鍵指標，並對我們的 2023 財年展望提供一些額外的評論。提醒一下，除非另有說明，否則本次審查側重於我們的非 GAAP 結果，並且我們的 GAAP 結果中的所有對賬都出現在演示附錄中。無論如何，我會注意這種比較的性質。

Slide #12 details the results for the second quarter and first half of our fiscal year 2023. Focusing on our quarterly performance, total revenue grew 7.6% year-over-year to $228.1 million. Product revenue grew 10% and service revenue grew 5.4%, both on a year-over-year basis. At the end of the quarter, our total backlog was approximately $80 million, consisting of approximately $45 million of fulfillable orders and approximately $35 million of radio frequency propagation modeling projects, with nearly $20 million of the radio frequency propagation modeling amount categorized as deferred revenue from an accounting perspective.

幻燈片 #12 詳細介紹了我們 2023 財年第二季度和上半年的業績。關注我們的季度業績，總收入同比增長 7.6% 至 2.281 億美元。產品收入同比增長 10%，服務收入同比增長 5.4%。在本季度末，我們的總積壓約為 8000 萬美元，其中包括約 4500 萬美元的可履行訂單和約 3500 萬美元的射頻傳播建模項目，其中近 2000 萬美元的射頻傳播建模金額歸類為來自會計角度。

As a reminder, while fulfillable orders are those we believe can be readily converted into revenue upon shipment or fulfillment, the radio frequency propagation modeling projects require certain execution steps in conjunction with the carrier's timing before they can convert to revenue.

提醒一下，雖然可履行訂單是我們認為可以在發貨或履行時輕鬆轉化為收入的訂單，但射頻傳播建模項目需要某些執行步驟以及運營商的時間安排才能轉化為收入。

Gross profit margin was 76.8% in the second quarter, down 1.5 percentage points year-over-year. This quarter's gross margin was impacted by approximately $15 million of radio frequency propagation modeling projects, which had an average gross margin of less than 30%. Quarterly operating expenses increased 2.2% year-over-year, mostly due to the return of pre-pandemic activities such as in-person events and travel and partially due to a competitive employment market. We reported an operating profit margin of 23.7% compared with 22.3% in the same quarter last year. Diluted earnings per share was $0.57. Clarifying earlier statements, I'll repeat, the diluted earnings per share was $0.57 compared with $0.47 in the same quarter last year, representing an increase of 21.3% year-over-year.

第二季度毛利率為76.8%，同比下降1.5個百分點。本季度的毛利率受到大約 1500 萬美元的射頻傳播建模項目的影響，這些項目的平均毛利率低於 30%。季度運營費用同比增長 2.2%，主要是由於面對面活動和旅行等大流行前活動的回歸，部分原因是競爭激烈的就業市場。我們報告的營業利潤率為 23.7%，而去年同期為 22.3%。每股攤薄收益為 0.57 美元。澄清之前的聲明，我會重複一遍，稀釋後的每股收益為 0.57 美元，而去年同期為 0.47 美元，同比增長 21.3%。

Turning to Slide 13, I'd now like to review key revenue trends by customer verticals and product lines. Please note that all comparisons here are on a year-over-year basis, consistent with our other remarks. For the first 6 months of fiscal year 2023, our service provider customer vertical revenue grew 11%, while our enterprise customer vertical revenue grew 6.4%. During the same period, our enterprise customer vertical accounted for approximately 51% of our total revenue, while provider customer vertical accounted for the remaining 49%.

轉到幻燈片 13，我現在想按客戶垂直和產品線審查主要收入趨勢。請注意，這裡的所有比較都是按年進行的，與我們的其他評論一致。在 2023 財年的前 6 個月，我們的服務提供商客戶垂直收入增長了 11%，而我們的企業客戶垂直收入增長了 6.4%。同期，我們的企業客戶垂直業務占我們總收入的約 51%，而供應商客戶垂直業務佔剩餘的 49%。

Now turning to our product lines. For the first half of fiscal year 2023, our cybersecurity revenue increased by 14.3% while our service assurance revenue increased by 6.6%. During the same period, our service assurance product line accounted for approximately 73% of our total revenue, while our cybersecurity product line accounted for the remaining 27%.

現在轉向我們的產品線。 2023 財年上半年，我們的網絡安全收入增長了 14.3%，而我們的服務保障收入增長了 6.6%。同期，我們的服務保障產品線約占我們總收入的 73%，而我們的網絡安全產品線則佔剩餘的 27%。

Turning to Slide 14, which shows our geographic revenue mix. In the first half of fiscal year 2023, our revenue was more concentrated than usual in the U.S., primarily due to higher revenue related to radio frequency propagation modeling projects from Tier 1 domestic carriers. Additionally, one customer represented 10% or more of our total revenue in the second quarter and the first half of our fiscal year 2023.

轉到幻燈片 14，它顯示了我們的地理收入組合。在 2023 財年上半年，我們的收入比往常更集中在美國，這主要是由於與一級國內運營商的射頻傳播建模項目相關的收入增加。此外，在我們 2023 財年第二季度和上半年，一個客戶占我們總收入的 10% 或更多。

Slide 15 details our balance sheet highlights and free cash flow. We ended the second quarter with $367.1 million in cash, cash equivalents and marketable securities, representing a decrease of $7.5 million since the end of the fiscal -- sorry, since the end of the first quarter of fiscal year 2023. Free cash flow for the quarter was $7.1 million.

幻燈片 15 詳細介紹了我們的資產負債表亮點和自由現金流。我們在第二季度結束時擁有 3.671 億美元的現金、現金等價物和有價證券，自本財年末以來減少了 750 萬美元——對不起，自 2023 財年第一季度末以來。季度為 710 萬美元。

As a reminder with regard to share repurchase program activity, we entered into an accelerated share repurchase agreement in our first quarter of fiscal year 2023 to repurchase $150 million of our common stock. We received approximately 70% of the total shares estimated to be repurchased pursuant to the ASR agreement in our first quarter or approximately 3.3 million shares. We anticipate receiving the remaining approximately 30% of the program shares when the program concludes no later than December 31, 2022.

作為關於股票回購計劃活動的提醒，我們在 2023 財年第一季度簽訂了加速股票回購協議，以回購 1.5 億美元的普通股。我們在第一季度收到了估計根據 ASR 協議回購的總股份的約 70% 或約 330 萬股。我們預計在該計劃不遲於 2022 年 12 月 31 日結束時收到剩餘的大約 30% 的計劃份額。

From a debt perspective, we ended the second quarter of fiscal year 2023 with $200 million outstanding on our $800 million revolving credit facility, which expires in July 2026. To briefly recap our other balance sheet highlights, accounts receivable net was $139.1 million, representing a decrease of $9.1 million since March 31, 2022. The DSO metric at the end of the second quarter of fiscal year 2023 was 52 days versus 64 days at the end of the second quarter of the prior year and 64 days at the end of our fiscal year 2022.

從債務的角度來看，在 2023 財年第二季度結束時，我們 8 億美元的循環信貸額度在 2026 年 7 月到期，未償還 2 億美元。簡要回顧一下我們的其他資產負債表亮點，應收賬款淨額為 1.391 億美元，相當於自 2022 年 3 月 31 日以來減少了 910 萬美元。截至 2023 財年第二季度末的 DSO 指標為 52 天，而去年第二季度末為 64 天，本財年末為 64 天2022 年。

Let's move to Slide 16 for commentary on our outlook. I will focus my review on our non-GAAP targets for fiscal year 2023. We are reiterating our non-GAAP outlook for fiscal year 2023 that was last presented during our first quarter fiscal year 2023 earnings call on August 4, 2022. As a reminder, for fiscal year 2023, we anticipate revenue in the range of $895 million to $925 million, which implies a mid- to high single-digit top line growth rate. The effective tax rate is anticipated to be in the range of 20% to 22%, assuming between 73 million and 74 million weighted average diluted shares outstanding, which includes the estimated impact of the $150 million accelerated share repurchase program. With a partial offset for stock compensation dilution, we expect non-GAAP diluted earnings per share to be between $1.97 and $2.03. To reiterate and clarify from previous comments, it's $1.97 and $2.03 for the earnings per share guidance.

讓我們轉到幻燈片 16 來評論我們的前景。我將重點審查我們的 2023 財年非公認會計原則目標。我們重申我們在 2022 年 8 月 4 日的 2023 財年第一季度財報電話會議上最後一次提出的 2023 財年非公認會計原則展望。提醒一下，對於 2023 財年，我們預計收入在 8.95 億美元至 9.25 億美元之間，這意味著中高個位數的收入增長率。假設有 7300 萬至 7400 萬股加權平均稀釋流通股，其中包括 1.5 億美元加速股票回購計劃的估計影響，預計有效稅率將在 20% 至 22% 之間。由於股票薪酬稀釋的部分抵消，我們預計非公認會計原則攤薄後每股收益將在 1.97 美元至 2.03 美元之間。為了重申和澄清之前的評論，每股收益指引分別為 1.97 美元和 2.03 美元。

I'd also like to offer some color on the second half of our fiscal year 2023. Assuming the midpoint of our revenue outlook range, we currently anticipate that our remaining fiscal year 2023 revenue will be nearly evenly split between our third and fourth quarters, with expectations for our third quarter revenue to be 1 to 2 percentage points higher than our fourth quarter revenue in the SKU between third quarter and fourth quarter.

我還想為我們的 2023 財年下半年提供一些顏色。假設我們的收入前景範圍的中點，我們目前預計 2023 財年剩餘的收入將在我們的第三季度和第四季度之間幾乎平均分配，預計我們第三季度的收入將比我們在第三季度和第四季度之間 SKU 的第四季度收入高 1 到 2 個百分點。

With regards to the second half earnings per share, assuming the midpoint of our non-GAAP EPS range, we currently anticipate receiving approximately 60% in the third quarter and approximately 40% in the fourth quarter. As we have discussed previously, our third quarter gross margin will contain a higher product mix of radio frequency propagation modeling project activities, which has a lower gross margin.

關於下半年每股收益，假設我們的非公認會計原則每股收益範圍的中點，我們目前預計第三季度將獲得約 60% 的收益，第四季度將獲得約 40% 的收益。正如我們之前所討論的，我們第三季度的毛利率將包含較高的射頻傳播建模項目活動產品組合，其毛利率較低。

That concludes my formal review of our financial results. Before we transition to Q&A, I'd like to quickly note that our upcoming IR conference participation is listed on Slide 17. Thank you, and I'll now turn the call over to the operator for Q&A.

我對我們財務業績的正式審查到此結束。在我們過渡到問答之前，我想快速指出，我們即將參加的 IR 會議列在幻燈片 17 上。謝謝，我現在將電話轉給接線員進行問答。

(Operator Instructions) We will take our first question from Matt Hedberg with RBC.

（操作員說明）我們將回答 RBC 的 Matt Hedberg 提出的第一個問題。

Nice consistency in the quarter here. You're reiterating guidance for the year, which is nice to see. Jean, thanks for the added color on expectations for the second half just there. With a lot going on, maybe could you talk to some of your confidence points for the second half?

本季度的一致性很好。你重申了今年的指導，很高興看到。讓，感謝您對下半場的期望增加了色彩。發生了很多事情，也許你能談談你下半場的一些信心點嗎？

Sure. I think as we mentioned in our earlier comments, that we've been seeing good activity across a wide variety of the trends that we participate in, the trends being 5G. So we have some 5G projects that have come in from Tier 1s. We have still calibration that we are executing on, which is in part of the backlog. In the enterprise, we have been seeing digital transformation and some customers going through what I would call a not necessarily a refresh but maybe a reconsideration phase of things they had purchased in the past that didn't work out as well in this much more complicated digital environment.

當然。我認為正如我們在之前的評論中提到的那樣，我們在參與的各種趨勢中都看到了良好的活動，這些趨勢是 5G。所以我們有一些來自第一層的 5G 項目。我們仍在執行校準，這是積壓工作的一部分。在企業中，我們一直在看到數字化轉型，一些客戶正在經歷我所說的不一定是更新，但可能是他們過去購買的東西的重新考慮階段，在這個更複雜的情況下效果不佳數字環境。

And then finally, within security, as mentioned, we have been updating the road map and coming out with the new products that Anil talked about as well as the initiation of the Omnis. So we have a combined portfolio of solutions now that works well for 5G digital transformation, the threats of cybersecurity. As you'll note, the backlog in the shippable portion and that, again, is the portion that was not available -- was not able to be shipped at the end of the quarter but probably has already been shipped and will convert into revenue was still consistent with the prior year -- prior quarters entering backlog. The only thing that changed was the execution of calibration. So when we look forward to the end of this year, at this point, we are comfortable with reaffirming our revenue ranges.

最後，如前所述，在安全範圍內，我們一直在更新路線圖並推出 Anil 談到的新產品以及 Omnis 的啟動。因此，我們現在擁有一個組合解決方案組合，適用於 5G 數字化轉型和網絡安全威脅。正如您將注意到的，可發貨部分的積壓，同樣，是不可用的部分 - 無法在季度末發貨，但可能已經發貨並將轉化為收入仍然與上一年一致——前幾個季度進入積壓。唯一改變的是校準的執行。因此，當我們期待今年年底時，在這一點上，我們對重申我們的收入範圍感到滿意。

That's great. And then could you talk to federal business in the quarter with the fiscal year-end? I think you've previously commented to most of those projects being funded. Just anything around federal worth pointing out for us?

那太棒了。然後你能在財政年度結束的那個季度與聯邦企業談談嗎？我想你之前已經評論過大多數被資助的項目。聯邦周圍的任何事情都值得為我們指出嗎？

I think as Jean is looking at this, Matt, it was better than last year but that's because last year was not that great. So I mean, there is still uncertainty in terms of the project budgets and timing and the fiscal year was just over. But since it's not a big portion of our total revenue, I think this is probably not -- I mean, there are other factors which could impact things in the future than the federal business.

我認為當 Jean 正在看這個時，Matt，它比去年好，但那是因為去年並沒有那麼好。所以我的意思是，在項目預算和時間安排方面仍然存在不確定性，財政年度剛剛結束。但由於這不是我們總收入的很大一部分，我認為這可能不是 - 我的意思是，除了聯邦業務之外，還有其他因素可能會影響未來的事情。

Yes. Just to add, some numerics to that. I would say basically, the service revenue in the U.S. federal government, so the portion that is support, has been consistent on a year-over-year basis, which is good, which means that they're still using our products and they still want to use -- still want to have support on those. Product revenue was probably slightly flat with what it was in Q2. So overall, on a dollar basis, it was relatively consistent with prior year's Q2. That's the U.S. federal government piece.

是的。只是要添加一些數字。我想說的是，美國聯邦政府的服務收入，即支持的部分，與去年同期相比是一致的，這很好，這意味著他們仍在使用我們的產品，他們仍然想要使用——仍然希望得到那些支持。產品收入可能與第二季度略有持平。因此，總體而言，以美元計算，它與去年第二季度相對一致。那是美國聯邦政府的作品。

We will take our next question from James Fish with Piper Sandler.

我們將回答 James Fish 和 Piper Sandler 的下一個問題。

I want to follow up on the question before that, before the Fed. With the reiterated guide, I just want to understand the puts and takes you're thinking about here, given the macro environment, especially on the international side where budgets are a little bit tighter, you have elongating sales cycles. Obviously, you got a benefit from the 5G builds. But we did hear from some of your networking peers that have cited weakness here already. Just trying to understand how you guys are thinking about order growth in the back half of the year.

我想在美聯儲之前跟進這個問題。通過重申的指南，我只想了解您在此處考慮的看跌期權，考慮到宏觀環境，特別是在預算有點緊縮的國際方面，您的銷售週期會延長。顯然，您從 5G 構建中受益。但是我們確實從您的一些網絡同行那裡聽到了已經在此處引用弱點的消息。只是想了解你們如何看待下半年的訂單增長。

So Jim, thanks for the question. So I think there's another dynamic plays out on our business in addition to the very good backlog we had entering this year. When we look at the networking peers, they are mostly infrastructure companies, and we have a trailing effect on both spending cuts and spending opportunities once the network build-out is done. Then you use tools.

所以吉姆，謝謝你的問題。所以我認為除了我們今年進入的非常好的積壓工作之外，我們的業務還有另一個動態。當我們查看網絡同行時，他們大多是基礎設施公司，一旦網絡建設完成，我們對削減開支和開支機會都有拖累效應。然後你使用工具。

So I think if we see some headwinds on the macroeconomic side, we'll probably see that, and we'll update that at the end of the fiscal year. So we feel comfortable the range which we have allows us to manage this and with all the other pipeline and other information and visibility we have. And despite some of the things you are seeing in the international side, we, at this point, feel comfortable with the guidance.

所以我認為，如果我們在宏觀經濟方面看到一些不利因素，我們可能會看到這一點，我們將在本財政年度結束時對其進行更新。因此，我們對我們擁有的範圍感到很舒服，我們可以通過我們擁有的所有其他管道以及其他信息和可見性來管理這一點。儘管您在國際方面看到了一些事情，但在這一點上，我們對指導感到滿意。

That's helpful, Anil. Obviously, still elevated backlog, I'll agree, but how are you guys thinking about that backlog returning to kind of normal as supply chain does start to open up? Is it by fiscal year-end of '24, earlier or later? And then Jean, it sounds like there was a little bit more professional services mix this quarter in the service revenue. Is that right? Or is it just kind of the natural flow-through of maintenance starting to pick up as products grew last year?

這很有幫助，阿尼爾。顯然，積壓仍然增加，我同意，但是隨著供應鏈開始開放，你們如何看待積壓恢復正常？是在 24 財年年底之前還是之後？然後是吉恩，聽起來本季度的服務收入中有更多的專業服務組合。那正確嗎？或者它只是一種自然的維護流程，隨著去年產品的增長而開始回升？

What is flowing through this quarter in service revenue is something that happens almost every year. We have back maintenance people that sign up for contracts after their original due date. And so any period of service that you've provided flows right through revenue at that time. So I think in Q3 of last year, we had some -- a lot of back maintenance or some back maintenance. Q2 of this year, I would say the delta between -- the delta in back maintenance was probably maybe attributed to about $5 million.

本季度的服務收入幾乎每年都會發生。我們有後勤維護人員在原始到期日之後簽署合同。因此，您提供的任何服務期間都直接通過當時的收入流動。所以我認為在去年的第三季度，我們進行了一些 - 很多後台維護或一些後台維護。今年第二季度，我會說兩者之間的差額 - 後端維護的差額可能歸因於大約 500 萬美元。

Okay. And then on the backlog timing, like when we go back to the -- I think the historical range was about $25 million, $30 million historically, where you sit around $80 million today. I guess are you guys thinking about it as like a 6-quarter or 8-quarter kind of time frame?

好的。然後在積壓時間上，比如當我們回到 - 我認為歷史範圍約為 2500 萬美元，歷史上為 3000 萬美元，而你今天的位置約為 8000 萬美元。我想你們認為它是一個 6 個季度或 8 個季度的時間框架嗎？

Well, I think overall, it will be somewhere in between because of hopefully higher growth because of our cybersecurity initiatives. So some of the new initiatives, even though this year, we feel comfortable with the guidance, a lot of the new things have not really significantly contributed to this. And we have a general feeling that cybersecurity is less prone to macroeconomic challenges than service assurance.

好吧，我認為總體而言，這將介於兩者之間，因為我們的網絡安全計劃有望實現更高的增長。所以一些新舉措，儘管今年我們對指導感到滿意，但很多新事物並沒有真正對此做出重大貢獻。我們普遍認為，與服務保障相比，網絡安全更不容易受到宏觀經濟挑戰。

So the investment we made last year, so our plan is that our backlog will be somewhere between the traditional one, which we had, like you talked about $30 million, $40 million to the elevated one, mainly because of calibration. I mean, calibration business is still possible this year, but nowhere will be at the size of what it was last year. So it's hard to predict what the backlog is going to be like this or lower or higher in the next 18 months. But I think when we talk about the guidance for next year, it will reflect our insights into that.

所以我們去年進行的投資，所以我們的計劃是我們的積壓將介於傳統的之間，就像你所說的 3000 萬美元，4000 萬美元到高架的，主要是因為校準。我的意思是，今年仍有可能進行校準業務，但不會有去年的規模。因此，很難預測未來 18 個月內的積壓工作會是這樣或更低或更高。但我認為，當我們談論明年的指導時，它將反映我們對此的見解。

We will take our next question from Kevin Liu with K. Liu & Company.

我們將向 K. Liu & Company 的 Kevin Liu 提出我們的下一個問題。

Just wanted to clarify some comments around kind of the macroeconomic impacts on your business. Have you guys seen anything to date in terms of delays or project cancellations that are concerning at all? And then I was just wondering, with cybersecurity maybe being a little bit more insulated, whether you're expecting your service provider business to hold up fairly well.

只是想澄清一些關於宏觀經濟對您的業務的影響的評論。迄今為止，你們有沒有看到任何令人擔憂的延誤或項目取消？然後我只是想知道，由於網絡安全可能更加絕緣，您是否期望您的服務提供商業務能夠保持良好狀態。

Overall, I think we see, Kevin, that so far, at least, we have not seen any delays which has got to my attention any big deals or anything. And how this changes over the next 3, 4 months, we'll see. But we are still benefiting here and there from the -- we have very little supply chain problem because being a corporate company and the way we package our software and we have some partners, we take care of that.

總的來說，我認為我們看到了，凱文，至少到目前為止，我們還沒有看到任何引起我注意的任何大交易或任何事情的延誤。以及在接下來的 3 到 4 個月內這將如何變化，我們將拭目以待。但是我們仍然從這里和那裡受益——我們幾乎沒有供應鏈問題，因為作為一家公司，我們打包軟件的方式和我們有一些合作夥伴，我們會處理好這個問題。

So we think that we might -- even in this environment, we might benefit from some supply chain dollars coming from other vendors to us in this last quarter. So right now, I think we are not seeing those effects. But like I said earlier, that we'll have to carefully watch it and make -- and when we provide the guidance for next fiscal year, we will keep that into account. But so far, luckily, we are not seeing any real issues. We keep hearing in other earnings calls, but fortunately, we are not seeing anything so far.

因此，我們認為我們可能 - 即使在這種環境下，我們也可能會在最後一個季度從其他供應商提供給我們的一些供應鏈資金中受益。所以現在，我認為我們沒有看到這些影響。但就像我之前說的，我們必須仔細觀察並製定——當我們為下一財年提供指導時，我們會考慮到這一點。但到目前為止，幸運的是，我們沒有看到任何真正的問題。我們不斷聽到其他財報電話會議，但幸運的是，到目前為止我們沒有看到任何東西。

Understood. That's good to hear. And then just on the expense side of things, you guys talked about things starting to return to kind of pre-pandemic types of spend with in-person activities. Just wondering as we look out to next year and maybe in the future, do you feel like this is kind of a more normalized baseline that should recur from year to year? Or do you think there's even more kind of interest in activities that will continue to pick up and that we should account for?

明白了。聽起來還不錯。然後只是在費用方面，你們談論的事情開始回到大流行前的那種通過面對面活動的支出。只是想知道，當我們展望明年甚至未來時，您是否覺得這是一種更規範化的基線，應該每年重複出現？還是您認為對將繼續增加且我們應該考慮的活動的興趣更大？

I would say that the amount of travel is not as high as we would have originally thought in this fiscal year. So next year, I could see where some travel would repopulate in the P&L. Also depending on economic times and as everyone -- a lot of people have experienced significant compensation rate increases, we would have to see if that occurs in our next fiscal year also. Barring that, those 2, off the top of my head, I don't see any other operating expenses that would come through. And so as the company generates incremental revenue, we will continue to have traditionally strong flow-through to our operating margin and our earnings per share.

我想說的是，這個財政年度的旅行量並沒有我們最初想像的那麼高。所以明年，我可以看到一些旅行將在損益表中重新填充。同樣取決於經濟時期和每個人 - 很多人都經歷了顯著的補償率增加，我們將不得不看看這是否會在我們的下一個財政年度發生。除非那兩個，我不知道，我看不到任何其他運營費用會通過。因此，隨著公司產生增量收入，我們將繼續擁有傳統上強勁的營業利潤率和每股收益。

Great. Congrats on the quarter end.

偉大的。恭喜本季度結束。

We have no further questions on the line at this time. I will turn the program back over to Tony Piazza for any additional or closing remarks.

我們目前沒有其他問題。我會將程序轉回給 Tony Piazza 以獲取任何補充或結束語。

Thank you, operator. That concludes our call for today. Thank you for joining us, and have a good day.

謝謝你，接線員。我們今天的呼籲到此結束。感謝您加入我們，祝您有美好的一天。

This does conclude today's program. Thank you for your participation. You may disconnect at any time.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接。