甲骨文 (ORCL) 2006 Q4 法說會逐字稿

Good afternoon. My name is Katina, and I will be your conference facilitator. At this time, I would like to welcome everyone to the Sun Microsystems fiscal year 2006 fourth-quarter results conference call. (Operator Instructions). I would now like to turn the call over to Mr. Bret Schaefer, Vice President of Investor Relations for Sun Microsystems. Please go ahead, sir.

下午好。我叫 Katina，將擔任本次會議的主持人。此刻，我謹代表主辦方歡迎各位參加 Sun Microsystems 2006 會計年度第四季財報電話會議。（接線員指示）現在我想把電話交給 Sun Microsystems 投資人關係副總裁 Bret Schaefer 先生。先生，請開始。

Good afternoon. Thank you for joining the Sun Microsystems quarterly conference call. I'm Bret Schaefer, Sun's Vice President of Investor Relations. With me today is Jonathan Schwartz, Sun's CEO and President, and Michael Lehman, Sun's Chief Financial Officer and Executive Vice President Corporate Resources.

下午好。感謝各位參加 Sun Microsystems 的季度電話會議。我是 Bret Schaefer，Sun 的投資人關係副總裁。今天與我一同出席的有 Sun 的執行長兼總裁 Jonathan Schwartz，以及 Sun 的財務長暨企業資源執行副總裁 Michael Lehman。

The purpose of today's call is to discuss the results of Sun's fiscal year 2006 fourth quarter, which ended on June 30, 2006. During the last hour, we published a copy of the operations analysis data sheet with nine quarters of financial and operational information, including the quarter just completed. If you've not received the announcement or the detailed financial data sheet for any reason or you wish to hear a live broadcast of this conference call, you may log onto our website at sun.com/investors. We posted slides you can view on the Web, which accompany our prepared remarks. These slides may be viewed at the same URL, sun.com/investors. The prepared remarks of the call today will last about 30 minutes with the remaining 30 minutes devoted to the Q&A session.

今天電話會議的目的，是討論 Sun 2006 會計年度第四季（截至 2006 年 6 月 30 日止）的業績結果。在過去一小時內，我們已發布一份營運分析資料表，涵蓋九個季度的財務與營運資訊，包括剛結束的本季度。若您因任何原因未收到公告或詳細財務資料表，或希望收聽本次電話會議的即時轉播，請登入我們的網站 sun.com/investors。我們也已在網路上張貼可供瀏覽的投影片，配合我們的預先準備發言。這些投影片可在相同網址 sun.com/investors 上瀏覽。今天的預先準備發言約 30 分鐘，剩餘 30 分鐘將用於問答環節。

During the course of this conference call, we will be making projections and other forward-looking statements regarding expected future financial results and business opportunities. Our actual future results may be very different from our current expectations. We encourage you to read the 10-Ks and 10-Qs that we file periodically with the SEC. These documents contain a discussion of the risks facing our business, including factors that could cause these forward-looking statements not to come true. We do not currently intend to update these forward-looking statements.

在本次電話會議過程中，我們將就預期的未來財務結果與商機等作出預測及其他前瞻性陳述。我們實際的未來結果可能與目前預期有很大差異。我們鼓勵各位閱讀我們定期向美國證券交易委員會（SEC）提交的 10-K 與 10-Q。這些文件包含對我們業務所面臨風險的討論，包括可能導致這些前瞻性陳述無法實現的因素。我們目前無意更新這些前瞻性陳述。

In addition, during the course of the conference call, we will describe certain non-GAAP financial measures which should be considered in addition to and not in lieu of comparable GAAP financial measures. Please refer to the results call, financial slides and the operations analysis posted on our website at sun.com/investors for the most directly comparable GAAP financial measure and related reconciliation. Please note that unless otherwise indicated, all reported results include the impact of the StorageTek and SeeBeyond acquisitions for the full quarter ended June 30, 2006. Now, let's get to the financials.

此外，在本次電話會議過程中，我們將說明若干非 GAAP 財務衡量指標；這些指標應與可比的 GAAP 財務衡量指標一併考量，而非取而代之。請參閱我們在 sun.com/investors 網站上發布的業績電話會議資料、財務投影片與營運分析，以取得最直接可比的 GAAP 財務衡量指標及相關調節表。請注意，除非另有說明，所有公布的結果均包含截至 2006 年 6 月 30 日止整個季度內 StorageTek 與 SeeBeyond 併購案的影響。現在，我們進入財務部分。

Sun's total revenues for the fourth quarter of fiscal 2006 were $3.828 billion, an increase of 29% as compared with the $2.974 billion in the revenue reported for the fourth quarter of fiscal 2005. Total gross margin was 42.8% of revenue, an increase of 1.4 points over the gross margin for the fourth quarter of fiscal year 2005. Total R&D and SG&A expenses were $1.676 billion, an increase of $416 million year-over-year.

Sun 2006 會計年度第四季總營收為 38.28 億美元，較 2005 會計年度第四季所報告的 29.74 億美元增加 29%。總毛利率為營收的 42.8%，較 2005 會計年度第四季毛利率提高 1.4 個百分點。研發（R&D）與銷售、一般及行政（SG&A）費用合計為 16.76 億美元，較去年同期增加 4.16 億美元。

On the fourth quarter of fiscal 2006, we recorded a $35 million tax provision. GAAP net loss for the fourth quarter of fiscal year 2006 was $301 million or a net loss of $0.09 per share as compared with net income of $50 million or net income of $0.01 per share for the fourth quarter of fiscal 2005. As reflected on slide 12, GAAP net loss for the fourth quarter of fiscal year 2006 included approximately $86 million or a little over $0.02 per share, principally related to intangible asset amortization associated with the acquisitions of StorageTek and SeeBeyond.

在 2006 會計年度第四季，我們認列 3,500 萬美元的所得稅費用。2006 會計年度第四季 GAAP 淨損為 3.01 億美元，或每股淨損 0.09 美元；相較之下，2005 會計年度第四季淨利為 5,000 萬美元，或每股淨利 0.01 美元。如投影片 12 所示，2006 會計年度第四季 GAAP 淨損包含約 8,600 萬美元（或略高於每股 0.02 美元），主要與 StorageTek 與 SeeBeyond 併購相關的無形資產攤銷有關。

As reflected on slide 11, GAAP net loss included approximately $63 million or just under $0.02 per share in stock-based compensation charges related to the adoption of SFAS 123R. GAAP net loss for the fourth quarter of fiscal 2006 also included restructuring charges of $228 million and a related tax benefit of $8 million, $70 million in impairment of other acquisition-related intangible assets, $54 million in settlement income and a loss on equity investments of $4 million. In addition, we incurred a $58 million tax charge and a $14 million reduction in other income due to a repatriation of foreign earnings. The net impact of these seven items is just over $0.09 per share. The total impact of all nine items that I have just covered, including intangible asset amortization and stock-based compensation charges, was approximately $0.13 per share.

如投影片 11 所示，GAAP 淨損包含約 6,300 萬美元（或略低於每股 0.02 美元）的股票基礎薪酬費用，與採用 SFAS 123R 有關。2006 會計年度第四季 GAAP 淨損亦包含 2.28 億美元的重整費用及相關 800 萬美元的稅務利益、7,000 萬美元的其他併購相關無形資產減損、5,400 萬美元的和解收益，以及 400 萬美元的權益投資損失。此外，因海外盈餘匯回，我們產生 5,800 萬美元的稅負，以及其他收益減少 1,400 萬美元。上述七項的淨影響略高於每股 0.09 美元。我剛才涵蓋的九項因素（包括無形資產攤銷與股票基礎薪酬費用）合計影響約為每股 0.13 美元。

Now back to revenue metrics. Q4 products revenues totaled $2.524 billion, an increase of 31% year-over-year. Within products revenues, computer systems products revenue was $1.811 billion, an increase of 15% year-over-year. Data management products revenue was $713 million, an increase of 103% year-over-year.

接下來回到營收指標。第四季產品營收合計 25.24 億美元，年增 31%。在產品營收中，電腦系統產品營收為 18.11 億美元，年增 15%。資料管理產品營收為 7.13 億美元，年增 103%。

Q4 services revenues totaled $1.304 billion, up 25% year-over-year. Within services revenue, support services revenue was $986 million, up 27% year-over-year. Revenue from client solutions and educational services totaled $318 million, an increase of 18% year-over-year.

第四季服務營收合計 13.04 億美元，年增 25%。在服務營收中，支援服務營收為 9.86 億美元，年增 27%。客戶解決方案與教育服務營收合計 3.18 億美元，年增 18%。

By geography, US revenues were $1.523 billion, up 30% year-over-year. EMEA revenues totaled $1.375 billion, an increase of 21% year-over-year. APAC revenues were $657 million, an increase of 33% year-over-year. International Americas revenues were $273 million, an increase of 60% year-over-year.

按地區別，美國營收為 15.23 億美元，年增 30%。歐洲、中東及非洲（EMEA）營收合計 13.75 億美元，年增 21%。亞太地區（APAC）營收為 6.57 億美元，年增 33%。美洲（美國以外）國際地區營收為 2.73 億美元，年增 60%。

With respect to some of the balance sheet items on slide 12, DSO was 64 days. Excluding acquisitions, ending sales channel inventory was approximately $390 million or about 5.5 weeks of supply, which is within desired levels. We ended the quarter with a cash and marketable debt securities balance of $4.848 billion and generated positive cash flow from operations of $410 million. With that, I will turn it over to Jon.

就投影片 12 中部分資產負債表項目而言，DSO（應收帳款週轉天數）為 64 天。排除併購影響後，期末銷售通路存貨約為 3.90 億美元，約相當於 5.5 週供應量，處於我們期望的水準之內。本季末我們的現金及有價債務證券餘額為 48.48 億美元，並產生 4.10 億美元的正向營運現金流。接下來我把時間交給 Jon。

Hello. I wanted to remind everyone that we are about 90 days into a new team at Sun, and this call marks my and my team's first full quarter leading the Company. So I'm going to be brief. I'm going to try to put the quarter into context and then hand it off to Mike, and we'll get to your questions as quickly as we can.

大家好。我想提醒各位，我們在 Sun 的新團隊上任大約 90 天，而這通電話會議標誌著我與我的團隊領導公司完成的第一個完整季度。因此我會簡短說明。我會嘗試把本季度放在脈絡中解讀，接著交給 Mike，並盡快進入各位的提問。

So as I mentioned on our last call together, which was back on May 31, these first weeks and months have been exceptionally busy. We've conducted top-to-bottom reviews of nearly every corner of our business, and we frankly wasted no time in making some tough decisions so that we are all focused on driving consistent growth and financial performance. So at the outset, I have to say I'm pleased with our initial progress and the results we're announcing today. We showed improvement across a diversity of our internal metrics and of course delivered the growth. We continue to prioritize revenue growth of 29% year-over-year and 21% sequentially along with substantial backlog in deferred revenue growth.

如同我在上一次（5 月 31 日）與各位的電話會議中提到的，這最初幾週與幾個月格外忙碌。我們已對業務幾乎每個角落進行自上而下的檢視，並且坦白說，我們沒有浪費時間就做出一些艱難的決策，以確保大家都聚焦於推動一致的成長與財務表現。因此在一開始，我必須說我對我們初步的進展以及今天公布的結果感到滿意。我們在多項內部指標上展現改善，當然也交出了成長。我們持續將營收成長列為優先事項：年增 29%、季增 21%，同時遞延收入成長亦帶來可觀的待履行訂單（backlog）。

Now, with that said, I would like to very briefly make sure you understand how Mike and I are going to be structuring these calls going forward and what you should expect to hear from us or what we will be talking about in the future. First and foremost, our business -- the delivery of network innovations -- is driven by the adoption of the Internet broadly and our core developer platforms specifically, that being Java and Solaris. So independent of whether we are paid upfront for that adoption, the more consumers that bank through a browser, the more banks will spend on Sun's core products. The more Java phones there are in the market, the more carriers will invest in Sun's network infrastructure. The more e-taxes are filed, the more OnStar cars are on the road, the more Verizon and Vonage grow their subscriber bases, the more auctioneers go to eBay, the bigger the data centers they will all require.

現在，話說在前頭，我想非常簡短地確認各位了解，未來我們將如何安排我和 Mike 的這些電話會議，以及你們應該期待從我們這裡聽到什麼、或我們未來會談些什麼。首先也是最重要的，我們的業務——網路創新的交付——是由整體網際網路的普及採用，以及我們核心開發者平台（也就是 Java 與 Solaris）的採用所驅動。因此，不論我們是否能就這些採用在前期收取費用，越多消費者透過瀏覽器進行網銀交易，銀行就會在 Sun 的核心產品上投入越多。市場上的 Java 手機越多，電信業者就會在 Sun 的網路基礎設施上投資越多。越多電子報稅被提交、越多 OnStar 車輛在路上行駛、Verizon 與 Vonage 的訂戶基礎成長越多、越多拍賣商轉向 eBay，他們全部所需要的資料中心規模就會越大。

Now, this may sound obvious -- and I'm hoping it is -- but I would like you all to understand the key leading indicators of Sun's business, the adoption of our core developer platforms being Solaris and Java, while you also understand our financial performance. Now, looking at leading indicators with that said, developer adoption is trending up. With nearly 1 billion citizens online around world, the number of registered Sun developer network numbers hit 2 million in Q4. This is a big milestone as we doubled the number of users in one year, adding 1 million new developers from all around the world with very significant growth in China, in India, Russia and across other rapidly-growing economies such as Brazil -- all good leading indicators.

現在，這聽起來可能很明顯——我也希望確實如此——但我希望各位在理解我們財務表現的同時，也能理解 Sun 業務的關鍵領先指標：我們核心開發者平台（Solaris 與 Java）的採用情況。那麼，談到領先指標，開發者採用正呈上升趨勢。全球近 10 億網民之下，Sun Developer Network 的註冊人數在第四季達到 200 萬。這是一個重要里程碑，因為我們在一年內將使用者數翻倍，新增了來自全球各地的 100 萬名新開發者，其中中國、印度、俄羅斯以及巴西等其他快速成長經濟體的成長非常顯著——這些都是很好的領先指標。

Solaris passed the 5 million licensed mark downloaded since we open sourced it and we are nearing in on 6 million now. Java is on a consumer tier with the availability of Blu-Ray DVD players embedded with Java technology. And Java phones continue to be the world leader. I was particularly pleased we closed several multiyear deals with three of the top six mobile phone manufacturers within Q4 as well.

自從我們將 Solaris 開放原始碼以來，其下載的授權數已突破 500 萬，現在也正逼近 600 萬。隨著內建 Java 技術的 Blu-Ray DVD 播放器上市，Java 已進入消費者層級。而 Java 手機仍持續保持全球領先地位。我也特別高興的是，我們在第四季與全球前六大手機製造商中的三家，簽下了數個多年期合約。

Not all of these events drive immediate financial benefit; some definitely do. But they all lead to growing usage of Sun's core developer platforms, which again drives demand for the infrastructure we monetize. We monetize computer systems, storage, software, and services. So let me quickly review those businesses.

並非所有這些事件都會立即帶來財務效益；有些確實會。但它們都會帶動 Sun 核心開發者平台的使用量成長，而這又會推動我們可變現之基礎設施的需求。我們變現的項目包括電腦系統、儲存、軟體與服務。因此，讓我快速回顧這些業務。

Q4's highlight was definitely our computer systems business, which had very, very solid revenue growth. This is now the second quarter in a row we have achieved year-over-year revenue gains. Analysts last quarter commented on our share gains. They showed remarkable insight. And our UltraSPARC T1000 and T2000 systems, known as Niagara platforms, exceeded $100 million for the first time in Q4. This is just two full quarters after launch. This is among the fastest product ramps we've ever seen.

第四季的亮點無疑是我們的電腦系統業務，營收成長非常、非常穩健。這已是我們連續第二個季度達成年增營收成長。上季分析師評論了我們的市占提升。他們展現了非凡的洞察力。而我們的 UltraSPARC T1000 與 T2000 系統（稱為 Niagara 平台）在第四季首次突破 1 億美元。這距離上市僅兩個完整季度。這是我們見過最快的產品爬坡之一。

Our x64 business with a totally refreshed product lineup is now at a $500 million annual run rate, and our volume 1 to 8 processor systems, which comprise the largest subgroup within our computer systems business grew a great 21% year-over-year.

我們的 x64 業務在產品線全面更新後，目前年化營收運行率已達 5 億美元；而我們的 1 至 8 處理器量產型系統（構成電腦系統業務中最大的子類別）年增成長達 21%，表現相當出色。

Our storage business, which has been combined with StorageTek for nine months, is now realizing top-line benefits for us. The standalone StorageTek business grew revenues in the mid-to-high single digits year-over-year. Mike will provide some additional information on cost actions related to StorageTek in a few minutes. But we definitely saw in Q4 some of the revenue synergies we anticipated when we announced the acquisition.

我們的儲存業務與 StorageTek 合併已九個月，現在開始為我們帶來營收端的效益。獨立的 StorageTek 業務營收年增為中到高個位數。Mike 將在幾分鐘後補充一些與 StorageTek 相關的成本措施資訊。但我們在第四季確實看到了當初宣布收購時所預期的一些營收綜效。

Services revenues were up 25% year-over-year and up approximately 1% on a Sun stand-alone basis, which is slightly better than our expectations, given the fact that service revenues were impacted by softer product sales from one to two years ago and the mix shift toward lower end systems. But this also represents good field execution.

服務營收年增 25%，若以 Sun 單獨口徑計算則約季增 1%，略優於我們的預期；考量到服務營收受到一到兩年前較疲弱的產品銷售，以及產品組合轉向較低階系統的影響。但這也反映了前線執行良好。

Sun's overall software revenues declined 8% year-over-year, reflecting continued changes in our business model towards subscription-based pricing. In contrast, our OEM software revenues including Solaris and Java increased 23% year-over-year, reflecting some great design wins in key market segments.

Sun 整體軟體營收年減 8%，反映我們的商業模式持續轉向以訂閱制為基礎的定價。相較之下，我們的 OEM 軟體營收（包含 Solaris 與 Java）年增 23%，反映我們在關鍵市場區隔取得了一些很好的設計導入（design wins）。

So in summary, this quarter's performance was an encouraging step toward our longer-term goal of greater than 10% operating margin. Q4 performance was also a validation of our statements on May 31 that we have increasing confidence in the stability of our business, driven by the growing adoption of our core developer platforms. Hopefully, that gives you at least a top-level overview of how we are focusing our time and energies, growing both leading indicators and continuing to execute on the business to deliver value and financial results. They are all important, and both drive the long-term value of our overall business.

總結而言，本季表現是朝向我們長期目標——營業利益率高於 10%——邁出的令人鼓舞的一步。第四季的表現也驗證了我們在 5 月 31 日所做的陳述：在核心開發者平台採用持續成長的帶動下，我們對業務穩定性的信心正在提升。希望這至少能讓各位從高層次了解我們如何聚焦時間與精力：一方面推動領先指標成長，另一方面持續落實業務執行，以交付價值與財務成果。這些都很重要，且兩者共同驅動我們整體業務的長期價值。

So with that said and for more details and specifics, I would like to pass it over to my officemate, Mr. Lehman. Mike.

那麼，話說到這裡，若要更多細節與具體內容，我想把時間交給與我同辦公室的 Lehman 先生。Mike。

Good afternoon, everyone. Jonathan has given you a good sense of the Q4 revenues. I will supplement his remarks with a bit more geography and business flavor. I will also take you through the Q4 income statement as there are a number of onetime items that we want to be sure you understand. I will also give you an update on how we see the current quarter shaping up and talk a bit about additional ways to measure us as we progress throughout the fiscal year.

各位下午好。Jonathan 已讓各位對第四季營收有了很好的概念。我會在他的說明上補充一些更多的地區與業務面向的內容。我也會帶各位走過第四季損益表，因為其中有一些一次性項目，我們希望確保各位理解。我也會更新我們對本季走勢的看法，並談談在本財年推進過程中，衡量我們表現的其他方式。

As I previously mentioned, we are looking at how we can increase transparency of our reporting in FY '07 and intend to report the Q1 results by looking at revenues in four categories -- namely systems, storage, software, and services. Having said that, it is clear that products growth in Q4 was the strongest that it has been in years no matter how you look at it. The sequential revenue growth of over 20% was truly exceptional, especially given that it was not largely driven by any onetime items. In fact, the last time Sun reported sequential revenue growth from Q3 to Q4 of more than 20% was in fiscal 2000. You will note that our Sun standalone product backlog at $1.099 billion was up sequentially by approximately $119 million. Further, as mentioned above, the revenue growth was fairly broad-based from both the geography and industry bases.

如我先前提到的，我們正在思考如何在 2007 財年提升報告透明度，並打算在第一季結果中，以四大類別來呈現營收——也就是系統、儲存、軟體與服務。話雖如此，很明顯地，不論從哪個角度看，第四季的產品成長都是多年來最強的一次。超過 20% 的序列營收成長確實非常突出，尤其是它並非主要由任何一次性項目所驅動。事實上，Sun 上一次從第三季到第四季呈報超過 20% 的序列營收成長，是在 2000 財年。各位會注意到，我們 Sun 單獨口徑的產品訂單積壓（backlog）為 10.99 億美元，較前一季增加約 1.19 億美元。此外，如上所述，營收成長在地區與產業面向都相當廣泛。

For example, in the former Sun standalone business, more than half of the 15 geographies we measure had double-digit product revenue growth year-over-year. And as I looked at preliminary reports covering industries, I saw wins in energy, education, government, financial services, telco and transportation to name a few. We are encouraged by the acceptance of our UltraSPARC T1 processor-based Niagara servers and the continued growth of the Opteron processor-based Galaxy family of servers as well as a few big noteworthy wins with the Sun Fire E25K product. And with overall storage revenues showing growth, we're beginning to see top-line benefits from the relationships established by the StorageTek and Sun sales teams. Revenue clearly was the highlight story in an eventful Q4.

例如，在原 Sun 單獨業務中，我們衡量的 15 個地區裡，超過一半的地區產品營收年增達到雙位數。而當我查看涵蓋各產業的初步報告時，我看到在能源、教育、政府、金融服務、電信與運輸等領域都有斬獲，僅舉數例。我們對 UltraSPARC T1 處理器為基礎的 Niagara 伺服器獲得市場接受，以及以 Opteron 處理器為基礎的 Galaxy 伺服器家族持續成長，感到鼓舞；同時，Sun Fire E25K 產品也拿下了幾個值得一提的大型案子。隨著整體儲存營收呈現成長，我們開始看到 StorageTek 與 Sun 銷售團隊所建立關係帶來的營收端效益。在一個多事的第四季中，營收無疑是最亮眼的故事。

If you turn to gross margins, slide 8, you will note that the overall gross margin percentage decreased by approximately 0.2% sequentially. You will note that service margins increased about 3.7 points sequentially, which is expected in the fourth quarter as seasonally increased revenues outpace any incremental costs, while product margins declined sequentially by just over 2.3 points. The latter is largely driven by changes in volume and mix.

如果你看毛利率，第 8 張投影片，你會注意到整體毛利率百分比較前一季約下降 0.2%。你會注意到服務毛利率較前一季上升約 3.7 個百分點，這在第四季是預期之內，因為季節性增加的營收增幅超過任何新增成本；而產品毛利率則較前一季下降略高於 2.3 個百分點。後者主要是由出貨量與產品組合的變化所驅動。

We shipped a greater portion of low-end servers, the Niagara and Galaxy products. And although we shipped an increased number of high-end systems, we were not able to recognize revenue on a number of those due to requirements for installation and/or acceptance. You'll note on slide 4 that total deferred revenues have increased substantially sequentially. We also experienced some of our highest growth in parts of Asia and Latin America, where gross margins are slightly less due to channel participation. Further, our software revenues were slightly less as a percentage of overall revenues as we continue to migrate our software products towards either open source or subscription-based pricing. In other words, we expect continued decreases in upfront licensing revenues in the near-term as we monetize our software products in the form of services and/or recurring subscriptions. All-in-all, we're quite satisfied with the gross margin.

我們出貨了較高比例的低階伺服器，即 Niagara 與 Galaxy 產品。而且儘管我們出貨了更多高階系統，但由於安裝及／或驗收要求，我們無法對其中若干系統認列營收。你會在第 4 張投影片看到，遞延營收總額較前一季大幅增加。我們在亞洲與拉丁美洲部分地區也經歷了最高的一些成長，而由於通路參與，這些地區的毛利率略低。此外，隨著我們持續將軟體產品轉向開源或訂閱制定價，我們的軟體營收占整體營收的比重略有下降。換言之，隨著我們以服務及／或經常性訂閱的形式將軟體產品變現，我們預期短期內一次性授權收入將持續下降。總體而言，我們對毛利率相當滿意。

We have a number of longer-term initiatives being pursued, which will help us maintain gross margins in this range as we go forward. We do expect that gross margins will decline in Q1 due to the normal seasonal volume declines in both product and service revenues that we experience. However, for the entire fiscal year, we still expect gross margin to be in the range of 42 to 44%.

我們正在推動多項較長期的計畫，將有助於我們在未來維持此區間的毛利率。我們確實預期第一季毛利率會下降，原因是我們一向會遇到產品與服務營收在季節性上正常的出貨量下滑。然而，就整個會計年度而言，我們仍預期毛利率將落在 42% 至 44% 的區間。

Turning to slide 9, total R&D and SG&A expenses increased by approximately $133 million sequentially, excluding the restructuring-related items. The principal components of the sequential increase are commissions related to higher revenues; annual incentives related to revenue and cash generation performance; increased compensation and benefits, including having nearly one additional week during Q4; and certain expenses, such as prototype spending incurred prior to the launch of the x64 products in early July.

轉到第 9 張投影片，排除與重整相關的項目後，研發與銷售、一般及行政（SG&A）費用總額較前一季增加約 1.33 億美元。此一季增的主要構成包括：與較高營收相關的佣金；與營收與現金創造表現相關的年度獎勵；薪酬與福利增加（包括第四季幾乎多了一週）；以及某些費用，例如在 7 月初 x64 產品上市前所發生的原型支出。

The Company did an outstanding job, remaining focused on the fundamentals during Q4, including shipping product, controlling inventory and managing the overall cash conversion cycle. I'll discuss the outlook for total operating expenses in a moment.

公司在第四季表現非常出色，持續專注於基本面，包括出貨、控制庫存，以及管理整體現金轉換週期。我稍後會談到總營運費用的展望。

I also encourage you to look at the other slides we provided as the Company continued to focus on cash generation and asset management very effectively. As noted, we generated approximately $410 million of cash from operations during the quarter. You will also note that our total stock-based compensation and amounts recorded for recurring purchase accounting were right in line with what we had expected.

我也鼓勵你查看我們提供的其他投影片，因為公司持續非常有效地專注於現金創造與資產管理。如前所述，我們本季由營運活動產生約 4.10 億美元現金。你也會注意到，我們的股票基礎給付補償總額，以及為經常性購買會計所記錄的金額，都與我們的預期完全一致。

During our Q3 results conference call, we indicated that we were considering repatriating cash from offshore as an opportunity to do so was provided by recent US legislation. During Q4, we did in fact return approximately 2 billion of cash to the US. As a result of that, we incurred a onetime charge to the income tax provision of 58 million, which is included in the Q4 amount reported. We also incurred a charge of approximately $14 million for liquidating certain investments. This charge is netted against reported interest and other income in Q4. This repatriation allowed us to take advantage of a limited window provided by legislation for a favorable tax treatment.

在我們第三季財報電話會議中，我們表示正在考慮將海外現金匯回美國，因為近期美國立法提供了這樣的機會。在第四季，我們確實將約 20 億的現金匯回美國。因此，我們在所得稅費用中認列了一次性費用 5,800 萬，已包含在第四季所報告的金額中。我們也因清算部分投資而產生約 1,400 萬美元的費用。此費用在第四季與所報告的利息及其他收益相抵。此次匯回使我們得以把握立法所提供的有限窗口，享有較有利的稅務待遇。

Turning to restructuring, as we outlined in May, we have a number of ongoing initiatives aimed at lowering the run rate of our total spending. During Q4, we initiated the following restructuring activities -- sale of our Newark, California campus. As previously reported, the sale closed in early July and we have received just over $210 million from that sale. We will lease back a small part of that facility during most of this fiscal year as it takes a while to move certain labs and IT infrastructure to other Bay Area campuses.

談到重整，如同我們在 5 月所概述的，我們正在推動多項持續性的計畫，旨在降低我們總支出的常態化水準（run rate）。在第四季，我們啟動了以下重整活動——出售我們位於加州 Newark 的園區。如先前所報告，該交易於 7 月初完成交割，我們已自該出售收到略高於 2.10 億美元。在本會計年度的大部分期間，我們將回租該設施的一小部分，因為將某些實驗室與 IT 基礎設施搬遷至灣區其他園區需要一些時間。

We announced the closure and ultimate sale of our Puerto Rico manufacturing facility, the closure and ultimate disposition of our Toulouse engineering and manufacturing facility. The Louisville, Colorado facility has been classified as held for sale. As such, we have a plan to vacate that campus as well during the next 9 to 12 months.

我們宣布關閉並最終出售我們在波多黎各的製造設施，以及關閉並最終處置我們在圖盧茲的工程與製造設施。科羅拉多州 Louisville 的設施已被分類為待售。因此，我們也計畫在未來 9 到 12 個月內撤離該園區。

Also, we announced a reduction in force that is estimated to amount to between 4,000 and 5,000 people during the next nine months. And we announced the cancellation of a number of R&D projects, some of which affected existing or acquired technologies. As a result of those actions, we have recorded restructuring charges of approximately $228 million in Q4 and a further charge of approximately 70 million that reflects the impairment of previously-acquired intangible assets. In addition, the restructuring accruals associated with headcount and facilities actions, contract termination costs, taxes and adjustments to other accrued liabilities related to StorageTek and SeeBeyond totaling approximately $70 million have been adjusted against goodwill.

此外，我們宣布裁員，預估在未來九個月內將影響約 4,000 至 5,000 人。我們也宣布取消多項研發專案，其中部分涉及既有或收購而來的技術。由於上述行動，我們在第四季認列約 2.28 億美元的重整費用，並另認列約 7,000 萬美元的費用，反映先前收購之無形資產的減損。此外，與人力與設施行動、合約終止成本、稅負，以及與 StorageTek 與 SeeBeyond 相關的其他應計負債調整等重整準備金合計約 7,000 萬美元，已調整沖減商譽。

I would like to reiterate that we have given guidance to the effect that we are targeting GAAP operating income of at least 4% of revenues during Q4 of this fiscal year. The restructuring activities noted above as well as other initiatives under way do not all result in immediate run rate savings. That is why we believe the best way for you to measure us in FY '07 is to understand our revenues and market share position, which we can discuss each quarter, and to watch our progress towards our Q4 operating income target. We do not expect to get to the operating income target in a linear fashion, which makes it a bit difficult to measure our progress with models.

我想再次強調，我們已提供指引，目標是在本會計年度第四季達成 GAAP 營業利益至少為營收的 4%。上述重整活動以及其他正在進行的措施，並非全部都能立即帶來常態化支出（run rate）的節省。因此，我們認為你在 2007 會計年度衡量我們的最佳方式，是理解我們的營收與市占率位置（我們可在每季討論），並觀察我們朝第四季營業利益目標的進展。我們不預期會以線性的方式達到營業利益目標，這使得用模型衡量我們的進度會稍微困難一些。

Jonathan and I and his entire team are committed to monitoring the progress of all initiatives and to take whatever steps are necessary for us to achieve that goal. The actions that we announced late in Q4 are a good start. And we need to complete implementation of those during the next three to eight months. There are other measures being pursued, which although less visible externally, will also help lower our run rate. We will have ongoing restructuring charges in at least the first three quarters of this fiscal year, as GAAP determines the period in which such actions can be reported.

Jonathan、我以及他整個團隊都承諾會監控所有計畫的進展，並採取任何必要步驟以達成該目標。我們在第四季末宣布的行動是一個良好的開始。我們需要在未來三到八個月內完成這些措施的落實。還有其他正在推動的措施，雖然對外部而言較不顯眼，但也將有助於降低我們的常態化支出（run rate）。由於 GAAP 規定可報告此類行動的期間，我們在本會計年度至少前三季仍將有持續的重整費用。

With regard to Q1, there are a few things you might keep in mind as you look at our business model. Historically, when one looks at the former Sun stand-alone business and the seasonality associated with the former StorageTek business, you would note that revenues from Q4 to Q1 decreased at least 20%. We expect that pattern to continue this year. I had mentioned that we expect gross margin in Q1 to decrease, due principally to the volume reduction but believe the gross margin for the year will remain between 42 and 44%. In Q1, we currently expect total R&D and SG&A expenses excluding any additional restructuring charges to be in the range of 1.45 billion to 1.55 billion.

關於第一季，當你檢視我們的商業模式時，有幾點你可能需要留意。歷史上，若觀察過去 Sun 的獨立業務，以及過去 StorageTek 業務的季節性，你會注意到營收從第四季到第一季至少會下降 20%。我們預期今年將延續這種模式。我先前提到，我們預期第一季毛利率會下降，主要是因為出貨量減少，但我們相信全年毛利率仍將維持在 42% 至 44% 之間。在第一季，我們目前預期研發與 SG&A 費用總額（不含任何額外重整費用）將落在 14.5 億至 15.5 億的區間。

Finally, I would point out that you should still look for the following to be included in our entire FY '07 business model. We expect amortization with StorageTek and SeeBeyond acquisition-related intangible assets of approximately 70 million per quarter. We expect stock-based compensation of approximately $60 million per quarter. We anticipate an annual tax provision in the range of 200 million to 250 million. We expect net interest income of approximately $30 million per quarter. We expect annual capital spending to be in the range of 300 million to $500 million. We are targeting a cash conversion cycle of approximately 30 days by the end of FY '07, which would allow us to generate positive cash flow from operations for the full fiscal year.

最後，我要指出，你仍應在我們整個 2007 會計年度的商業模式中納入以下項目。我們預期與 StorageTek 與 SeeBeyond 收購相關的無形資產攤銷約為每季 7,000 萬。我們預期股票基礎給付補償約為每季 6,000 萬美元。我們預估年度所得稅費用將落在 2.00 億至 2.50 億的區間。我們預期淨利息收入約為每季 3,000 萬美元。我們預期年度資本支出將落在 3.00 億至 5.00 億美元的區間。我們的目標是在 2007 會計年度末將現金轉換週期降至約 30 天，這將使我們在整個會計年度的營運活動能產生正向現金流。

We expect total operating expenses for fiscal '07 to be in the range of 5.6 billion to 6.0 billion, excluding any amounts related to restructuring but including amounts related to stock-based compensation and amortization of purchased intangibles. There will be fluctuations in our cash balance throughout the year. And during the first half of FY '07, we do not expect to generate positive cash flow from operations.

我們預期 07 會計年度的總營運費用將落在 56 億至 60 億的區間，不包含任何與重整相關的金額，但包含與股票基礎薪酬及已購無形資產攤銷相關的金額。我們的現金餘額在全年期間將會有所波動。此外，在 07 會計年度上半年，我們預期不會從營運活動產生正向現金流。

In addition to the cash receipt from the sale of our Newark campus, we will pay off a debt tranche of $500 million in August. And we will be making severance payments throughout the remainder of this fiscal year. At the highest level absent any new initiatives, we are targeting a total cash position of approximately 3.9 billion to 4.3 billion at the end of FY '07.

除了出售我們 Newark 校區所收到的現金款項之外，我們也將在 8 月償還一筆 5 億美元的債務分期。而且在本會計年度剩餘期間，我們將持續支付資遣費。在最高層級、且不考慮任何新計畫的情況下，我們的目標是在 07 會計年度末將總現金部位維持在約 39 億至 43 億之間。

With that, I will turn it back over to Bret.

接下來，我把時間交還給 Bret。

Before we begin the question-and-answer session, I would like to request that each of you ask just one question consisting of one part. This way, we hope to get to most of the questions in queue today. Katina, would you please start the question-and-answer session?

在我們開始問答環節之前，我想請各位每人只提一個問題，且僅包含一個部分。如此一來，我們希望今天能回答到隊列中大多數的問題。Katina，請您開始問答環節，好嗎？

(Operator Instructions). Rebecca Runkle, Morgan Stanley.

（接線員指示）。Morgan Stanley 的 Rebecca Runkle。

Just curious -- you didn't comment at all in terms of (technical difficulty) in the quarter and just given where several competitors have talked about a soft close in June -- would love to hear your perspective. And then on the telco vertical, gentlemen, you mentioned some wins there. Just curious if you could provide some color in terms of what type of product and where you're seeing the strength specifically within telcos, since that's been so important to you historically.

只是好奇——你們在本季完全沒有就（技術困難）方面做任何評論，而且考量到幾位競爭對手談到 6 月月底收尾非常疲弱——很想聽聽你們的看法。另外在電信垂直領域，各位先生，你們提到在那裡有一些贏單。想請問能否提供一些細節，例如是什麼類型的產品，以及你們在電信業者內部具體看到哪些環節的強勁動能，因為那一直以來對你們都非常重要。

It's Mike Lehman. The phone cut out. We did not understand the first part of your question.

我是 Mike Lehman。電話斷訊了。我們沒有聽懂你問題的第一部分。

Just linearity in the quarter, especially within the context of what several competitors have said as it relates to a very soft close in the month of June.

我是指本季的線性（出貨/營收節奏），特別是在幾位競爭對手所說的 6 月份月底收尾非常疲弱的背景之下。

We saw no soft close in June. If anything, we saw things strengthening towards the back end of the quarter. So I think that leaves us pretty optimistic going into Q1, but it also is an interesting contrast to some of our competitors. I think out in the telecommunications sector, we are seeing in general broad-based investment to go off and capture mobile subscribers. So certainly on the mobile sides with Nokia and Motorola frankly announcing very positive quarters largely on the basis of the adoption of their Java phones, we're seeing carriers want to go in invest after the next-generation media and data services that you can deliver onto the phone as well as the operational infrastructure you're going to need to put in place to go run a large-scale consumer network.

我們在 6 月沒有看到疲弱的月底收尾。如果有的話，反而是越接近季度末，情況越強。所以我認為這讓我們對進入第一季（Q1）相當樂觀，但同時也與部分競爭對手形成有趣的對比。在電信產業方面，我們普遍看到為了爭取行動用戶而進行的廣泛投資。因此，特別是在行動端，隨著 Nokia 與 Motorola 坦白說主要因其 Java 手機的採用而公布非常亮眼的季度表現，我們看到電信業者希望投入下一代媒體與數據服務（可在手機上提供），以及你為了營運大規模消費者網路所需建置的營運基礎設施。

So I'm not sure there's a whole lot of color. It's certainly varied by geography. But I think we saw in general a lot of strength on the mobile and wireless side but even still frankly some strength on the wireline side as well.

所以我不確定是否還能補充很多細節。這確實會因地區而異。但我認為整體而言，我們在行動與無線端看到很強的動能，不過坦白說，在固網端也仍然看到一些強勁表現。

Richard Farmer, Merrill Lynch.

Merrill Lynch 的 Richard Farmer。

Question for Mike, you talked a little bit about the cost savings outside of headcount qualitatively, although really not in significant quantitative terms. You have talked a lot about the headcount savings themselves in quantitative terms. If you look around at some of the other restructurings in the IT hardware space, particularly HP, a large portion of the savings are coming from outside of headcount. So I wonder if you would just help us even in a range quantify how big those opportunities may be outside of headcount for cost savings.

給 Mike 的問題：你有稍微以質化方式談到人力編制以外的成本節省，但在量化上其實沒有太多。你們已經以量化方式談了很多人力編制本身的節省。如果看看 IT 硬體領域其他一些重整案，特別是 HP，很大一部分節省來自人力編制以外。所以我想請你協助我們，即使用一個區間也好，量化一下在人力編制以外的成本節省機會可能有多大。

So we announced back at the end of May that there was a number of initiatives and we gave targeted cost savings and things like that. We don't want to sit and try and update every quarter you know a number that has a cost-saving associated with it. Our view is that we've got an overall business model that we've been pretty clear about what we are targeting and all the levers that we are pulling including the ones that I mentioned. If you will note, restructuring was the one that I mentioned last well. While clearly, there is a sizable cost savings associated with it, the list was intended to show you that we are looking at a lot of different things. So, we remain committed to looking at the entire cost structure up and down the line in ensuring we're going after everything.

我們在 5 月底宣布過有多項計畫，並提供了目標成本節省等資訊。我們不希望坐在這裡試圖每一季都更新一個與成本節省相關的數字。我們的看法是：我們有一個整體商業模式，我們已相當清楚地說明我們的目標，以及我們正在拉動的所有槓桿，包括我提到的那些。如果你注意到，我最後才提到重整。雖然很明顯它伴隨可觀的成本節省，但那份清單的用意是要讓你看到我們正在檢視很多不同的面向。因此，我們仍然致力於檢視整體成本結構的各個環節，並確保我們把所有能做的都做到。

Ben Reitzes, UBS.

UBS 的 Ben Reitzes。

The revenue upside was pretty significant. But a lot of it didn't flow to the bottom line. It looked like SG&A and obviously product gross margin. Could you talk about perhaps as we go throughout '07 how that may play out and what -- can you just recap again the factors in the quarter that made it so it didn't flow through and perhaps what might be onetime in nature that you kind of get through and then the cost structure is lower outside of restructuring or with it -- anything you can quantify or qualify for how we move forward so that this revenue upside can start to flow through to hit your goal?

營收超預期的幅度相當顯著。但其中很多並沒有流到最終獲利。看起來是 SG&A，當然還有產品毛利率。你能否談談在 07 年接下來的期間這可能會如何發展？以及——你能否再回顧一下，本季有哪些因素導致它沒有流到損益表底線？另外哪些可能屬於一次性因素，之後消化完畢後（不論是否包含重整），成本結構就會更低——任何你能量化或質化的內容，讓我們了解接下來如何推進，使這個營收超預期開始能流到獲利、以達成你們的目標？

Then one other thing, can you just say what your book-to-bill is? I don't know if there is a typo here on this slide.

另外還有一件事，你能否說一下你們的接單出貨比（book-to-bill）是多少？我不知道這張投影片上是不是有個打字錯誤。

So essentially, the book-to-bill was just north of 1 to 1. Bookings were just over 3.9 billion when you add in all the bookings from service orders in the StorageTek revenue. So it's just over 1 to 1. And while we focus a lot on product backlog for you, that is what we report. You know we don't report all the other backlog. We don't report the StorageTek backlog. So, the book-to-bill was just north of 1 to 1.

基本上，接單出貨比略高於 1 比 1。當你把 StorageTek 營收中的所有服務訂單所帶來的接單都加進來，接單金額略高於 39 億。所以就是略高於 1 比 1。雖然我們常為各位聚焦在產品積壓訂單（backlog），那是我們所揭露的項目。你知道我們不揭露其他所有的積壓訂單。我們不揭露 StorageTek 的積壓訂單。因此，接單出貨比略高於 1 比 1。

With regard to your other question, I'm afraid I would have to repeat all of my comments. I tried to give you a signal first of all of the incremental expenses sequentially. Those were largely driven by compensation-related items. The best way for you to I guess hear what I said was I gave you a range of OpEx for Q1, which basically says we expect OpEx to come down at least $150 million sequentially from Q4 to Q1. So that gives you a sense of the onetime nature of the non-restructuring items.

至於你另一個問題，恐怕我得重複我剛才所有的評論。我試著先給你一個訊號，說明營運費用（OpEx）在序列上增加的部分。那些主要是由薪酬相關項目所驅動。我想你理解我所說內容的最佳方式，是我給了你第一季（Q1）的 OpEx 區間，這基本上表示我們預期 OpEx 會從第四季到第一季序列性至少下降 1.5 億美元。因此，這能讓你了解非重整項目中一次性因素的性質。

Bret also read a whole paragraph that basically had seven items in there that totaled $0.09. Those were all sort of onetime items if you will, and I don't want to go back and read through them all but that's why we reiterated them. There's quite a few. So when you go back and look at that, there is the seven items that totaled $0.09. You take $0.09 away; it was essentially a breakeven quarter.

Bret 也念了一整段，裡面基本上有七個項目，加總為 0.09 美元。如果你願意的話，那些都算是一次性項目；我不想再回頭把它們全部重念一遍，但這就是我們為什麼要再次重申它們。項目相當多。所以當你回頭看時，會看到那七個項目合計 0.09 美元。把 0.09 美元扣掉後，基本上那一季就是損益兩平。

And so let's just add maybe a little strategic color on top of that. The fact of the matter is we have a product line that allows us to go after our competitors and win. We were probably a little more willing given some of the strength we were seeing in the win rates to go after some of those competitors and throw price into the mix. So I think we are what about two ticks off on the gross margin line.

所以讓我們在此基礎上再補充一些策略性的說明。事實是，我們擁有一條產品線，讓我們能夠正面迎戰競爭對手並取得勝利。鑑於我們在贏單率上看到的強勁表現，我們可能更願意去爭取其中一些競爭對手的案子，並把價格因素納入考量。所以我認為，我們在毛利率這條線上大概偏離了約兩個 tick。

In general on the spending side, we had other -- they're not necessarily onetime, but we had other big spending items in the quarter -- big prototype spending for product release. So our expectation is as we've said before, we're going to hit 4% operating margin in Q4. And again, to me, the most significant accomplishment of the quarter is we grew 29%. Growth is the best way to go deliver that operating margin. Just sitting here cutting cost is a pretty short runway.

整體而言，在支出方面，我們還有其他——不一定是一次性，但本季確實有其他較大的支出項目——例如為產品發佈所做的大量原型機支出。因此我們的預期是，如同先前所說，我們將在第四季達到 4% 的營業利益率。而且再次強調，對我而言，本季最重要的成就是我們成長了 29%。成長是實現該營業利益率的最佳方式。只是坐在這裡削減成本，能走的路其實很短。

Laura Conigliaro, Goldman Sachs.

Laura Conigliaro，高盛。

Your restructuring is not only underway, but it sounds like you are having some success. Does this make you more confident in the timing of reaching that 10% plus type operating margin, even though you haven't given us more detail on that yet? Is there any way you can actually get there without reducing headcount further?

你們的重整不僅已經展開，而且聽起來也取得了一些成效。這是否讓你們對達到 10% 以上那種營業利益率的時點更有信心，儘管你們尚未提供更多細節？有沒有可能在不進一步裁減人力的情況下達成？

So obviously, we feel better about the going forward projections given some of the top-line growth we've seen. It certainly adds confidence to the model that we have articulated. We're not going to really talk about the timing for that. Obviously, we want to get there as soon as we possibly can. What we have done is put a stake in the ground around 4% operating margins.

所以很明顯地，鑑於我們看到的營收端成長，我們對未來的預測感覺更好。這確實提升了我們所闡述模型的信心。我們不會真正去談那件事的時點。顯然，我們希望能盡快達成。我們已經在 4% 的營業利益率上立下明確目標。

But I will reiterate; frankly, the best way to go get that operating margin is to go drive revenue and wins out in the marketplace, keeping our spending relatively constant. We think again, given that we saw such a surge in demand in Q4, we can win the business that we get in front of. We are focused right now on getting in front of that business. Because the products that we've got with Solaris 10, with the adoption of the UltraSPARC platform, with some of the storage wins we're getting suggest that we've got a pretty clear path to how we get to a better operating model.

但我會重申；坦白說，取得該營業利益率的最佳方式，是在市場上推動營收與贏單，同時讓我們的支出維持相對穩定。我們再次認為，鑑於我們在第四季看到需求大幅湧現，只要我們能接觸到的案子，我們就能拿下。我們目前的重點是去接觸那些案子。因為我們在 Solaris 10 的產品、UltraSPARC 平台的採用，以及我們取得的一些儲存產品勝利，都顯示我們有一條相當清晰的路徑，知道如何走向更好的營運模式。

Keith Bachman, Banc of America.

Keith Bachman，美國銀行證券（Banc of America）。

I have two if I could. I didn't hear you comment on it, but was there any supply constraints in the quarter that you think limited your ability to either rack revenue or add to the bookings? And I have a follow-up please.

我有兩個問題，如果可以的話。我沒有聽到你們評論，但本季是否有任何供應限制，讓你們無法認列營收或增加訂單？我還有一個追問。

So the answer to that is no, there really were not. There were a lot of challenges as there always are within any quarter, but we were not supply constrained toward the end of the quarter.

所以答案是否定的，真的沒有。如同任何一季一樣，確實有很多挑戰，但我們在季末並沒有受到供應限制。

But it was a very complex quarter just given the transitions that the entire industry is going through around return of hazardous substances and [wi] initiatives. So I have to give credit to the ops team for getting us through that.

但這是一個非常複雜的季度，主要是因為整個產業正在經歷關於有害物質回收以及 [wi] 倡議的轉換。所以我必須肯定營運團隊，讓我們順利度過。

The follow-up, Mike --

追問，Mike——

We'll go on to the next question, and hopefully we'll come back to you.

我們先進行下一個問題，希望之後能再回到你這邊。

Toni Sacconaghi, Sanford Bernstein.

Toni Sacconaghi，Sanford Bernstein。

Yes, Mike, you talked about your revenues being down 20% or more between Q4 and Q1. It's actually only happened once in the last 10 years and that was at the trough of the bubble. In fact on average over the last 10 years, it's been down about 14.5%. So why the pessimism around guidance, especially given that you have a very large background and commented on how strong the quarter should start?

是的，Mike，你提到你們的營收在第四季到第一季之間會下滑 20% 或更多。其實在過去 10 年只發生過一次，那是在泡沫最低谷的時候。事實上，過去 10 年的平均下滑約為 14.5%。所以為什麼對指引如此悲觀，尤其是你們有非常大的 backlog，而且也評論過本季開局應該會很強？

So yes, we do have a pretty healthy backlog. I guess our view is we want to be conservative as I've said a number of times and as Jonathan has said. We want to make sure that we put a plan in place to make money, given the sort of revenue levels that we have. To the extent that the business is stronger, that will only help us accelerate getting to our goals but we've got to be realistic. And we want to make sure that we are successful. So those are the types of goals that we're putting in place. We're not limiting ourselves to the opportunity that's out there. But our view is that there is also a pretty historical component to the STK business, and their seasonality is somewhat less predictable. So we just want to be conservative.

所以是的，我們確實有相當健康的 backlog。我想我們的看法是，如同我多次說過、Jonathan 也說過的，我們希望保守一些。我們要確保在我們所擁有的這種營收水準下，制定一個能賺錢的計畫。如果業務表現更強，那只會幫助我們更快達成目標，但我們必須務實。而且我們要確保我們能成功。所以這些就是我們正在設定的目標類型。我們並沒有把自己限制在外部的機會之內。但我們的看法是，STK 業務也有相當強的歷史性因素，其季節性相對較難預測。所以我們只是想保守一些。

This is Jonathan. To reiterate that point, we're going to drive our spending levels to map to conservative revenue projections, so we can hit the operating margin we have articulated. So again to the extent that we over-execute on the top line, our hope is that's going to get us to our target a little more rapidly. But as Mike said, we want to put targets out there that you can have confidence in and that we can also drive toward.

我是 Jonathan。再重申這一點，我們會把支出水準調整到與保守的營收預測相匹配，這樣我們就能達到我們所闡述的營業利益率。因此同樣地，如果我們在營收端超額執行，我們希望那能讓我們更快達到目標。但如 Mike 所說，我們希望提出你們可以有信心、而我們也能朝之努力的目標。

Brent Bracelin, Pacific Crest Securities.

Brent Bracelin，Pacific Crest Securities。

Fun kind of Q1 outlook here. Obviously, you have good momentum on the server side, accelerating growth year-over-year there. You got a rebound in storage. You've got a healthy deferred going into next quarter. Are you being conservative here, or are you kind of running the business a little bit differently where you're going to try to drive a little bit more of the business to improve visibility kind of on a quarter-out basis? Again, just anymore color on kind of why the expectation for that 20% sequential decline this quarter?

關於第一季展望這邊有個有趣的問題。顯然你們在伺服器端動能良好，年增成長在加速。儲存也出現反彈。你們帶著健康的遞延收入進入下一季。你們是在這裡採取保守作法，還是你們在經營方式上有所不同，會嘗試把更多業務推向能提升可視度的模式，以便在「提前一季」的基礎上更容易掌握？再多給一些說明，為什麼本季預期會有 20% 的季減？

So we are definitely going to try to drive the business both toward more transparency for you all as well as frankly more predictability for us. So moving toward subscription-based pricing, moving toward a greater share of systems business being sold along with software and services all are going to give us a lot more confidence in the going forward numbers. Our hope again is to give you more confidence.

所以我們確實會努力推動業務，讓你們看到更高的透明度，同時坦白說也讓我們自己有更高的可預測性。因此，朝向訂閱式定價、以及讓更多系統業務與軟體和服務一起銷售，這些都會讓我們對未來數字更有信心。我們再次希望能讓你們更有信心。

So, Mike, I don't know if you have anything you want to add to that?

所以，Mike，我不知道你是否想補充什麼？

That's fair.

這樣說很合理。

(Operator Instructions). Jonathan Hoopes, ThinkEquity.

（接線員指示）。Jonathan Hoopes，ThinkEquity。

Jonathan, you mentioned that you were throwing price into the mix when you saw strength in the product sales. Are we to understand now that Sun has opened a new era of more fierce price competition? And on this topic, can you point to a single vendor -- a single competitor -- Dell comes to mind -- that took the brunt of this price action, or was Sun's price activities equally distributed among your competitors?

Jonathan，你提到當你看到產品銷售走強時，你們把價格因素也納入考量。我們是否可以理解為，Sun 已經開啟了一個更激烈價格競爭的新時代？就這個主題而言，你能否指出單一一家廠商——單一競爭對手——例如想到 Dell——承受了這波價格行動的主要衝擊，還是 Sun 的價格動作是平均分布在各個競爭對手之間？

I think we were less focused on competitors than we were on making sure that we gained customers. I think we did see some strength at a systems level, which means we are selling both the hardware -- the service as well as the software. And that again just gives us an ability to price with a portfolio that some of our competitors can't match.

我認為我們相較於關注競爭對手，更專注於確保我們能獲得客戶。我認為我們確實在系統層級看到了某些優勢，這表示我們同時在銷售硬體——服務以及軟體。而這也再次讓我們能以產品組合來定價，這是部分競爭對手無法匹敵的。

But again, I think growing at the rate that we did is a reflection of having innovations that customers want. We want to make sure that we can meet not only our existing installed base. But one of the statistics you might find interesting, we have a program we have called try and buy, which allows us to distribute hardware across the world to any customer that can pass a credit test. Of the systems that we've distributed, 60% have been to customers that have never done business with Sun before. So I think it's fair to say that we have entered a new era in which we are gaining new customers. We want to make it as attractive as possible and to keep the barriers low as possible, whether it's through free software or try and buy programs. So that once we grab that share, we can go after it with gusto across the rest of our product line. So I feel pretty good that we're going to gather some new customers, and we've got again good evidence that we're doing that already.

但再說一次，我認為我們以那樣的速度成長，反映的是我們擁有客戶想要的創新。我們希望確保不僅能滿足既有的已安裝基礎客戶。不過有一項你們可能會覺得有趣的統計：我們有一個名為 try and buy（試用後購買）的計畫，讓我們能把硬體配送到全球，提供給任何能通過信用測試的客戶。在我們已配送的系統中，有 60% 是給以前從未與 Sun 做過生意的客戶。因此我認為可以公平地說，我們已進入一個新的時代，正在獲得新客戶。我們希望讓它盡可能具吸引力，並把門檻降到最低，不論是透過免費軟體或 try and buy 計畫。如此一來，一旦我們抓住那個市占，我們就能在其餘產品線上更積極地推進。所以我對我們將會吸引一些新客戶感到相當有信心，而且我們也再次有很好的證據顯示我們已經在這麼做了。

Andrew Neff, Bear Stearns.

Andrew Neff，Bear Stearns。

I just want to go back to a question asked before just in terms of the environment. Again, most of your competitors are talking about a fairly soft environment. Can you just elaborate on the comments you made before in terms of why you are seeing the factors that are driving it and any signs of concern? Indeed, does that relate to your guidance also in terms of the overall economic environment?

我只是想回到先前有人問過、關於整體環境的問題。再說一次，你們大多數競爭對手都在談論相當疲弱的環境。你能否就你先前的評論再多加說明，為什麼你們看到的是這些驅動因素，以及是否有任何令人擔憂的跡象？另外，這是否也與你們的指引有關，特別是就整體經濟環境而言？

Well our -- as we said, before our core customers are those that view IT as a competitive weapon. So we don't see people slowing down their investment in IT to gather new customers or drive new value. For those in the business that are serving customers who view IT as a cost center, that is I think going to be an increasingly difficult position to be in. But the large-scale media companies, large-scale telcos, financial services companies -- they are all investing to get new customers and drive new value. So I'm not sure we've seen any slowing in their appetite to invest.

嗯，我們——如同先前所說，我們的核心客戶是那些把 IT 視為競爭武器的人。因此我們沒有看到人們為了獲取新客戶或創造新價值而放慢 IT 投資。對於那些服務的客戶把 IT 視為成本中心的業者而言，我認為那將會是一個愈來愈難以處於其中的位置。但大型媒體公司、大型電信業者、金融服務公司——他們都在投資以獲取新客戶並創造新價值。所以我不確定我們是否看到他們的投資意願有任何放緩。

In fact, I think frankly the Googles and eBays and Yahoo!s of the world are if anything pouring on the steam as much as they can to go after new customers. So our customers are more looking at the total cost of operations, so for example looking at the fact that we have incredible power savings with our Niagara platforms, that we have tremendously low service costs on our new Thumper storage, things that aren't just about the optics of purchase price.

事實上，坦白說，全球的 Google、eBay、Yahoo! 等公司，如果說有什麼不同的話，反而是在盡其所能加大力道去爭取新客戶。因此我們的客戶更著眼於總營運成本，例如看到我們的 Niagara 平台具有驚人的省電效益，我們新的 Thumper 儲存產品也有極低的服務成本——這些都不只是著眼於採購價格表面上的觀感。

The example I have used on my blog, which I would of course point all of you toward, is selling a Ferrari right now is going to be pretty tough because it gets 9 miles to the gallon. But selling an electric vehicle -- go sell a Tesla; you're going to find a lot of demand. I don't want what Mike is driving nowadays, but $4 a gallon is pretty steep. When customers are paying through the nose for power and space if you can deliver more power efficient systems that are smaller, you're going to gain a lot of business. That's where we see ourselves gaining share.

我在我的部落格上用過的一個例子——我當然也建議各位去看——是：現在要賣一台法拉利會相當困難，因為它每加侖只能跑 9 英里。但要賣一台電動車——去賣一台 Tesla；你會發現需求很大。我不想要 Mike 現在開的那種車，但每加侖 4 美元確實很貴。當客戶在電力與機房空間上付出高昂成本時，如果你能提供更省電、體積更小的系統，你就會獲得很多生意。這就是我們看到自己正在提升市占的地方。

(Operator Instructions). Chris Whitmore, Deutsche Bank.

（接線員指示）。Chris Whitmore，德意志銀行。

Hoping you can quantify or give us some color around the extra week in the quarter, how much do you think it impacted to the top line and/or bookings?

希望你能量化或提供一些說明，關於本季多出來的一週，你認為它對營收（top line）和／或訂單（bookings）造成了多大影響？

Again on a year-over-year basis, probably nothing because we typically have some extra days in the fourth quarter. You know it's just hard to say. In any quarter, there is always a linearity associated with that quarter and the close of the quarter. So I think Jonathan's point earlier was the more interesting one that we saw a pretty strong finish to the quarter, which is not what all of our competitors saw. So we are happy with it.

同樣地，以年對年來看，可能沒有影響，因為我們通常在第四季會多出一些天數。你知道，這很難說。在任何一季，通常都會有與該季及季末結帳相關的線性特徵。所以我認為 Jonathan 先前的重點更有意思：我們看到本季末段收尾相當強勁，而這不是我們所有競爭對手都看到的情況。因此我們對此感到滿意。

(Operator Instructions). Sir, there are no questions at this time.

（接線員指示）。先生，目前沒有問題。

Thank you very match. Thank you for joining us today. Investor Relations personnel will be back at our offices shortly to respond to any further questions. You may contact us through our Investor Relations main number at 408-404-8427.

非常感謝。感謝各位今天加入我們。投資人關係人員稍後將回到我們辦公室，回覆任何進一步的問題。您可透過我們投資人關係的主要電話 408-404-8427 與我們聯繫。

This concludes today's conference call. We appreciate your participation. We are again providing (technical difficulty) for this quarter. This concludes today's conference call. We appreciate your participation.

今天的電話會議到此結束。感謝各位的參與。我們再次提供（技術問題）本季的服務。今天的電話會議到此結束。感謝各位的參與。

We are again providing an encore replay service for this quarter. If you joined late or wish to hear any part of the conference call again, you may call the replay service at any time 3:30 Pacific Time tonight to hear the recording. The phone number for the replay is 1-800-642-1687 or 706-645-9291. You must enter the conference reservation ID number 2281547 on your touchtone phone. Thanks again for taking the time to join the Sun Microsystems call this afternoon. You may now disconnect.

我們本季再次提供重播回放服務。如果您較晚加入或希望再次收聽電話會議的任何部分，您可在今晚太平洋時間 3:30 之後的任何時間撥打回放服務收聽錄音。回放電話為 1-800-642-1687 或 706-645-9291。您必須在按鍵式電話上輸入會議預約 ID 號碼 2281547。再次感謝您今天下午撥冗參加 Sun Microsystems 的電話會議。您現在可以掛線。