Roper Technologies, Inc. (ROP) 2020 Q1 法說會逐字稿

The Roper Technologies First Quarter 2020 Financial Results Conference Call will now begin. I will now turn the call over to Mr. Zack Moxcey, Vice President of Investor Relations. Please go ahead.

Roper Technologies 2020 年第一季財務結果電話會議現在開始。我現在把電話交給投資人關係副總裁 Zack Moxcey 先生。請開始。

Good morning, and thank you all for joining us as we discuss the first quarter financial results for Roper Technologies. We hope everyone is staying safe and healthy. Joining me on the call this morning are Neil Hunn, President and Chief Executive Officer; Rob Crisci, Executive Vice President and Chief Financial Officer; Jason Conley, Vice President and Controller; and Shannon O'Callaghan, Vice President of Finance.

各位早安，感謝大家加入我們，一同討論 Roper Technologies 第一季財務結果。希望大家都平安健康。今天早上與我一同參與電話會議的有：總裁兼執行長 Neil Hunn；執行副總裁兼財務長 Rob Crisci；副總裁兼主計長 Jason Conley；以及財務副總裁 Shannon O'Callaghan。

Earlier this morning, we issued a press release announcing our financial results. The press release also includes replay information for today's call. We have prepared slides to accompany today's call, which are available through the webcast and are also available on our website.

今天稍早，我們發布新聞稿公布財務結果。新聞稿亦包含今日電話會議的重播資訊。我們已準備投影片搭配今日會議，可透過網路直播取得，也可在我們的網站上查看。

Now if you'll please turn to Slide 2. We begin with our safe harbor statement. During today's call, we will make forward-looking statements, which are subject to risks and uncertainties, including the impact of the COVID-19 pandemic. A description can be found on this page in our press release and in our SEC filings. You should listen to today's call in the context of that information.

現在請翻到投影片第 2 頁。我們先從安全港聲明開始。在今天的電話會議中，我們將作出前瞻性陳述，這些陳述受風險與不確定性影響，包括 COVID-19 疫情的影響。相關說明可在本頁、我們的新聞稿以及我們向 SEC 提交的文件中找到。您應在該等資訊的脈絡下收聽今天的電話會議。

And now please turn to Slide 3. Today, we will discuss our results for the quarter primarily on an adjusted non-GAAP basis. Reconciliations between GAAP and adjusted measures can be found in our press release and in the appendix of this presentation on our website.

接著請翻到投影片第 3 頁。今天我們將主要以調整後的非 GAAP 基礎來討論本季結果。GAAP 與調整後衡量指標之間的調節表可在我們的新聞稿以及本簡報網站版本的附錄中找到。

For the first quarter, the difference between our GAAP results and adjusted results consist of the following items: amortization of acquisition-related intangible assets and purchase accounting adjustments to acquire deferred revenue.

就第一季而言，我們 GAAP 結果與調整後結果之差異包含以下項目：併購相關無形資產攤銷，以及為取得遞延收入所作的購買會計調整。

And now if you'll please turn to Slide 4, I will hand the call over to Neil. After our prepared remarks, we will take questions from our telephone participants. Neil?

現在請翻到投影片第 4 頁，我將把電話交給 Neil。在我們的準備發言結束後，將開放電話與會者提問。Neil？

Thanks, Zack, and good morning, everyone. First and most importantly, we hope that everyone that is joining us this morning and your families are staying safe and are in good health.

謝謝你，Zack，各位早安。首先也是最重要的，我們希望今天早上加入我們的各位以及你們的家人都平安且身體健康。

With that in mind, our first quarter was quite good: 4% organic revenue growth; expanding gross and EBITDA margins; and very strong cash flow coming in at 13% above last year. After a brief run-through of Q1 results, I'll turn the call to Rob, and he will discuss our P&L, our balance sheet and our cash position. We find ourselves in the very fortunate position to have $1 billion of cash on the balance sheet and a completely undrawn $2.5 billion revolver. Then I'll turn to discuss our operational status and our response to the COVID-19 situation. To this end, all of our product businesses are deemed essential, and all our nonproduction workforce are being productive working remotely from home.

基於此，我們第一季表現相當不錯：有機營收成長 4%；毛利率與 EBITDA 利潤率擴張；且現金流非常強勁，較去年高出 13%。在簡要回顧第一季結果後，我會把電話交給 Rob，由他說明損益表、資產負債表以及我們的現金部位。我們目前處於非常有利的位置：資產負債表上有 10 億美元現金，且 25 億美元的循環信貸額度完全未動用。接著我將談我們的營運狀態以及對 COVID-19 情勢的因應。就此而言，我們所有產品事業皆被認定為必要（essential），而所有非生產人員也都在家遠端工作並維持生產力。

As we turn to our segment discussion, the majority of our comments will focus on a detailed view of how our businesses and business models should perform through the current situation. The impacts we're seeing across our diverse set of businesses range from a pause in new license sales for some of our high recurring revenue software businesses, to a positive spike in demand for Verathon's critical medical products, to sharp declines in our industrial and process technology businesses. Following this, we'll break down our Q2 and full year organic revenue guidance. In the midst of this global economic shutdown, we are guiding our full year organic revenues be plus or minus flat. This is a remarkable testament to the durability of our business model.

進入各事業部門的討論後，我們多數評論將聚焦於更細緻地說明，在目前情勢下，我們的各項業務與商業模式應如何表現。我們在多元業務組合中看到的影響範圍很廣：從部分高經常性收入的軟體業務新授權銷售暫停，到 Verathon 關鍵醫療產品需求正向激增，再到我們工業與製程技術業務的急劇下滑。之後，我們將拆解第二季與全年有機營收指引。在這波全球經濟停擺之中，我們對全年有機營收的指引為正負持平。這充分證明我們商業模式的韌性。

During the discussion of our guidance, we outlined for you the assumptions that would cause our earnings to be on the low or high end of our guidance range. I'll then turn to discuss our outlook for continued capital deployment and end with a summary of a few of the Roper companies that are on the front lines responding to the COVID-19 virus. Finally, we'll turn to your questions.

在指引討論中，我們也為各位說明了哪些假設會使我們的獲利落在指引區間的低端或高端。接著我將談我們持續進行資本配置的展望，並以幾家位於第一線、正在因應 COVID-19 病毒的 Roper 公司作為總結。最後，我們將進入提問。

Now let's turn to a brief run-through of our Q1 results. Next slide, please. Q1 was quite good for us. Our businesses continue to work hard to execute strategy and talent offenses and Q1 is another good data point that what we're doing is taking hold.

現在讓我們簡要回顧第一季結果。請看下一頁投影片。第一季對我們而言相當不錯。我們的各項業務持續努力執行策略與人才攻勢，而第一季又是一個良好數據點，顯示我們正在做的事情正在發揮效果。

Revenue grew 4% organically with solid organic growth in 3 of our 4 segments. Gross margins and EBITDA margins expanded nicely, and DEPS came in at $3.05, $0.05 above our guidance range. And as we've said for nearly 20 years, cash is the best performance measure with free cash flow being up 13% in the quarter to $353 million, which was 26% of revenue and 76% of EBITDA.

營收有機成長 4%，我們 4 個事業部門中有 3 個實現穩健的有機成長。毛利率與 EBITDA 利潤率均有良好擴張，調整後稀釋每股盈餘（DEPS）為 3.05 美元，較我們指引區間高出 0.05 美元。正如我們近 20 年來一直強調的，現金是最佳的績效衡量指標：本季自由現金流年增 13% 至 3.53 億美元，相當於營收的 26% 與 EBITDA 的 76%。

Now I'll turn the call over to Rob to discuss our detailed financial performance.

現在我把電話交給 Rob，請他說明更詳細的財務表現。

Thanks, Neil. Good morning, everyone. It's really great to have the opportunity to connect with all of you today.

謝謝你，Neil。各位早安。今天很高興有機會與各位連線交流。

Turning to Page 6, Q1 Income Statement Metrics. As Neil mentioned, organic growth was a very solid 4%, which was better than we had expected coming into the quarter. We did have positive organic growth in 3 of the 4 segments, led by Network Software & Systems at plus 9, and Application Software at plus 5. Once again, really strong margin execution by our business leaders in the quarter, driving strong operating leverage while continuing to invest for future growth. Gross margin expanded 50 basis points to 63.5%. EBITDA margin also expanded 50 basis points to a record 34.5%, driving very solid 7% EBITDA growth for the quarter.

請翻到第 6 頁，第一季損益表指標。如 Neil 所提，有機成長達到非常穩健的 4%，優於我們在進入本季時的預期。我們 4 個事業部門中有 3 個呈現正的有機成長，其中以 Network Software & Systems 成長 9% 領先，其次是 Application Software 成長 5%。本季我們的事業領導團隊再次展現非常強的利潤率執行力，在持續投資未來成長的同時，帶動強勁的營運槓桿。毛利率擴張 50 個基點至 63.5%。EBITDA 利潤率也擴張 50 個基點至創紀錄的 34.5%，帶動本季 EBITDA 穩健成長 7%。

Earnings before taxes increased 7% to $408 million. As a reminder, last year, we had a $43 million discrete tax item in Q1, resulting in a $0.41 benefit, which drove our tax rate last year below 10%. This year, our Q1 tax rate was a more normal 21%, which resulted in DEPS of $3.05, which was well above our guidance range, as Neil mentioned. So in summary, a really strong operational quarter for Roper and really great execution by our business leaders.

稅前盈餘成長 7% 至 4.08 億美元。提醒各位，去年第一季我們有一筆 4,300 萬美元的單次稅務項目，帶來 0.41 美元的利益，使去年稅率降到 10% 以下。今年第一季稅率較為正常，為 21%，因此 DEPS 為 3.05 美元，如 Neil 所提，明顯高於我們的指引區間。總結而言，這是 Roper 營運表現非常強勁的一季，也反映我們事業領導團隊的出色執行。

Next slide. Turning to cash flow. Q1 operating cash flow of $364 million was a 10% increase versus prior year. Q1 free cash flow was $353 million, a 13% increase versus prior year. So looking on the right, you can see over the past 2 years, our Q1 free cash flow has compounded a very strong 14%.

下一頁。接著看現金流。第一季營運現金流為 3.64 億美元，較去年同期增加 10%。第一季自由現金流為 3.53 億美元，較去年同期增加 13%。因此從右側可以看到，過去兩年我們第一季自由現金流的複合成長率達到非常強勁的 14%。

As Roper -- at Roper, as Neil said, and as we've all said, as you know, hundreds of times over the past 2 decades, we really do believe cash is the best measure of performance, and that was really another great cash quarter. We've consistently converted our EBITDA to free cash flow at a rate well above 70% over the past several years, as you can see 76% conversion in Q1, and we certainly expect that strong cash conversion to continue moving forward.

在 Roper——如 Neil 所說、也如我們大家所說、各位也知道，在過去 20 年我們已經講過無數次——我們確實相信現金是最佳的績效衡量指標，而這一季再次是一個很棒的現金表現季度。過去幾年我們一貫能以遠高於 70% 的比率將 EBITDA 轉換為自由現金流；如各位所見，第一季轉換率為 76%，我們也確實預期未來將持續維持這樣強勁的現金轉換能力。

Next slide. So turning to Page 8, asset-light business model. Once again, we exited the quarter with negative net working capital, negative 4.4%. That was aided by consistently strong working capital management across the enterprise and increasing deferred revenue across our portfolio of niche market-leading software businesses. Roper's focus on cash flow and working capital will be especially important as we work our way through the pandemic. While we certainly could see some negative short-term impacts from delayed payments in some affected end markets such as acute health care, we are well positioned overall given the durable end markets we serve. Our large deferred revenue balance gives us a very high recurring revenue base, limiting earnings volatility.

下一頁。請看第 8 頁，輕資產商業模式。我們再次在季末呈現負的淨營運資金，為負 4.4%。這得益於全公司一貫強勁的營運資金管理，以及我們一系列利基市場領先軟體業務組合中遞延收入的增加。在我們度過疫情期間，Roper 對現金流與營運資金的重視將尤其重要。雖然在某些受影響的終端市場（例如急性醫療照護）中，我們確實可能因延遲付款而看到一些短期負面影響，但整體而言，鑑於我們所服務的終端市場具備耐久性，我們的定位仍然良好。我們龐大的遞延收入餘額提供非常高的經常性收入基礎，限制獲利波動。

On a cash basis, our renewals are spread across the independent businesses and rather evenly throughout the calendar year, limiting any impact of attrition on our cash conversion.

以現金基礎來看，我們的續約分布在各個獨立事業之間，且在全年日曆年度中相對平均，從而降低客戶流失對我們現金轉換的任何影響。

So in closing, we expect our working capital to remain negative and our strong cash conversion to continue in 2020 and beyond.

因此總結來說，我們預期營運資金將維持為負值，而我們強勁的現金轉換能力將在 2020 年及往後持續。

Next slide. So turning to the balance sheet and the strong financial position. This is always a very important slide, but even more critical in today's economic environment, dealing with really the unprecedented shock to global economic activity around the pandemic. We will first look at the numbers here, and then I'll spend a little time on the following slide to talk more about our outlook and the steps we've taken at Roper to prepare ourselves to continue to execute on our disciplined capital deployment strategy.

下一張投影片。接著看資產負債表與強勁的財務狀況。這一直都是非常重要的一頁，但在當前的經濟環境下更為關鍵，因為疫情對全球經濟活動帶來了前所未有的衝擊。我們會先看這裡的數字，然後我會在下一張投影片多花一點時間，談談我們的展望，以及我們在 Roper 為了持續執行嚴謹的資本配置策略所採取的準備步驟。

In short, Roper's liquidity position and balance sheet are very strong. We currently have over $1 billion of cash on hand, and our $2.5 billion revolving credit facility remains fully undrawn. As a reminder, we divested our Gatan business in the fourth quarter, and the cash proceeds remain on our balance sheet. We do have approximately $200 million of cash taxes yet to be paid on the Gatan divestiture, and that payment is now not due until July with the postponement of tax day.

簡而言之，Roper 的流動性部位與資產負債表非常強健。我們目前手上現金超過 10 億美元，而 25 億美元的循環信用額度仍完全未動用。提醒一下，我們在第四季剝離了 Gatan 業務，相關現金收益仍留在資產負債表上。我們仍有約 2 億美元的現金稅款需就 Gatan 的剝離支付，而由於報稅日延後，該筆付款目前延至 7 月才到期。

So in summary, at the end of the quarter, gross debt sat at $5.3 billion against nearly $2 billion of trailing EBITDA for a gross debt-to-EBITDA ratio of 2.7x. However, taking into account our unusually large cash balance, net debt was only $4.3 billion.

因此總結來說，季末總負債為 53 億美元，對比近 20 億美元的過去 12 個月 EBITDA，總負債對 EBITDA 比率為 2.7 倍。不過，考量我們異常偏高的現金餘額後，淨負債僅為 43 億美元。

Next slide. So turning to Page 10. I wanted to take a moment really during this unprecedented time and review, we think -- what we think are the many benefits of Roper's unique business model. The diversification we have across 45 independent, high-margin, asset-light businesses operating across many different niches results in excellent credit profile. We are not dependent on specific end markets and almost nothing is centralized, limiting the overall financial impact of any facility closures or industry-specific economic shocks.

下一張投影片。翻到第 10 頁。在這個前所未有的時期，我想花點時間回顧我們認為 Roper 獨特商業模式所帶來的多項優勢。我們在 45 家獨立、高毛利、輕資產的企業之間高度分散，且各自深耕不同利基市場，因而形成優異的信用體質。我們不依賴特定終端市場，且幾乎沒有集中化運作，從而降低任何工廠停工或特定產業經濟衝擊對整體財務的影響。

So aided by our business model and diversification, we are confident the Roper enterprise will continue to generate high levels of cash flow in nearly all conceivable macroeconomic scenarios. As mentioned earlier, we currently have over $1 billion of cash on our balance sheet, which, as you all know, is a very unusual -- unusually high number for Roper. I think long time shareholders realize how unusual this is. Typically, we hold a limited amount of cash and draw on our revolver to fund acquisitions. This is, however, fortunate timing given the pandemic and something we want to take advantage of with an eye toward future cash flow compounding.

在商業模式與多元化的助力下，我們有信心 Roper 集團在幾乎所有可想見的總體經濟情境下，仍能持續產生高水準的現金流。如先前所述，我們目前資產負債表上有超過 10 億美元現金，大家都知道，這對 Roper 來說是非常不尋常——異常偏高的數字。我想長期股東都明白這有多罕見。通常我們只持有有限現金，並透過動用循環信貸來為併購提供資金。然而，在疫情之下，這樣的時點反而是幸運的，我們也希望把握這個機會，著眼於未來現金流的複利成長。

So over the last couple of weeks, we initiated and completed an amendment process with 100% support from our bank group to modify our gross debt-to-EBITDA covenant to receive credit for this cash.

因此在過去幾週，我們在銀行團 100% 支持下啟動並完成了修約流程，調整我們的「總負債對 EBITDA」財務契約，使其在計算上能將這筆現金納入抵減。

It was fascinating as Shannon and I went through the process with the banks. We are one of the only companies to come to the amendment process as a purely offensive move. This process really was an eye opener to just how unique our company is. My thanks to Shannon and also our high-quality bank group for all the work to complete this amendment quickly and successfully.

Shannon 和我與銀行一起走完整個流程時，這段經驗很有意思。我們是少數在修約流程中以純粹進攻性目的提出修約的公司。這個過程確實讓人更深刻體會到我們公司有多獨特。我要感謝 Shannon，也感謝我們高品質的銀行團，讓這次修約得以快速且成功地完成。

So under the new calculation, our net debt-to-EBITDA ratio currently sits at 2.1x, which is about a half a turn lower than under the old calculation compared to the covenant of 3.5. So in summary, we remain very well positioned with significant financial capacity to take advantage of our large pipeline of high-quality acquisition opportunities.

在新的計算方式下，我們目前的淨負債對 EBITDA 比率為 2.1 倍，較舊算法約低了半圈，而契約上限為 3.5 倍。總結而言，我們仍處於非常有利的位置，具備可觀的財務餘裕，得以把握我們龐大且高品質的併購機會管線。

So with that, I'll turn it back over to Neil.

那麼，我把時間交回給 Neil。

Thanks, Rob. It's worth underscoring the strength of our balance sheet and borrowing capacity. Also a great job by Rob and Shannon and adjusting to a net debt covenant. This further strengthens our capital deployment capacity and the ability to play offense at the appropriate time. Also, thanks to our lending group.

謝謝你，Rob。值得再次強調我們資產負債表與借款能力的強度。Rob 和 Shannon 在調整為淨負債契約方面也做得非常出色。這進一步強化了我們的資本配置能力，以及在適當時機採取進攻策略的能力。同時也感謝我們的放款銀行團。

Now let's turn to how we're responding operationally to COVID-19. First, from an employee health perspective, we are blessed to have very few COVID-19 cases, each of which has recovered or is recovering. From an operational readiness perspective, we are also fortunate. All of our businesses with manufacturing facilities have been deemed essential and have remained operational, delivering the vital products that our customers need during this time. And the remainder of our workforce has successfully transitioned to working from home.

現在來談談我們在營運面如何因應 COVID-19。首先，就員工健康而言，我們很幸運只有極少數 COVID-19 個案，且每一位都已康復或正在康復中。就營運準備度而言，我們也同樣幸運。我們所有設有製造設施的事業都被認定為必要產業並持續運作，在此期間提供客戶所需的關鍵產品。而其餘員工也已成功轉為居家辦公。

Our portfolio of niche businesses are characterized by having meaningfully reduced cyclical exposure having high levels of recurring revenues, low asset intensity, low levels of fixed costs and high levels of operating cash flow. We operate this portfolio in a highly decentralized operating structure that enables rapid, nimble execution. Our locally driven, bottoms-up approach to business planning performs exceptionally well in any environment. And clearly, this is an unprecedented one. Given this, there've not been any top-down mandates or mandatory targets, but rather a few guiding principles to consider and an incentive system that promotes investments in long-term organic growth.

我們的利基事業組合具備幾項特徵：顯著降低的景氣循環曝險、高比例經常性收入、低資產密集度、低固定成本，以及高營運現金流。我們以高度分權的營運架構來管理這個組合，使執行能快速且靈活。我們由在地驅動、自下而上的營運規劃方式，在任何環境下都表現出色，而眼前顯然是前所未有的環境。因此，我們並未下達任何自上而下的命令或強制性目標，而是提供少數可供參考的指導原則，以及一套鼓勵長期內生成長投資的獎酬制度。

We did ask our businesses to assess the short- and medium-term impacts to their demand drivers and take a sober view of each. Based on this, each business deployed appropriate cost countermeasures with emphasis on 3 items: First, each business worked to manage their margins appropriately with always vigilant management of cash flow. Second, each business targeted mostly temporary cost countermeasures. And third, each business continues to make no-regrets investments in innovation and talent, all of which have a mind's eye towards an offensive-oriented posture upon recovery.

我們確實要求各事業評估其需求驅動因素在短期與中期可能受到的影響，並以務實態度逐一檢視。基於此，每個事業都部署了適當的成本對策，重點放在三件事：第一，各事業在始終警覺地管理現金流的同時，適當管理其利潤率。第二，各事業主要採取暫時性的成本對策。第三，各事業持續進行「不後悔」的創新與人才投資，並以復甦後採取進攻姿態為目標。

Also important and often under discussed is our direct channel access in the vast majority of our companies. Rarely does Roper have a business that relies on third parties or distributors for market access. Given this, we remain engaged with our customers in good times and bad. We learn. We adapt. Most importantly, we stay connected. This typically enables market share capture in the difficult times and accelerated benefits during the recovery cycle. And in all times, our leaders keep an intense focus on cash.

同樣重要但常被低估的是，我們旗下絕大多數公司都能直接觸達通路。Roper 很少有事業需要依賴第三方或經銷商來取得市場接觸。基於此，無論景氣好壞，我們都能與客戶保持互動。我們學習、我們調整，最重要的是，我們保持連結。這通常使我們在艱難時期能取得市占，並在復甦循環中加速受益。而在任何時候，我們的領導團隊都會高度聚焦於現金。

Having worked through this process over the last several weeks, I'm incredibly proud of how our leaders have reacted and managed through the current situation. And I'd like to thank each and every one for the work, hard decisions and difficult conversations you have had to endure. Thank you.

在過去幾週走過這個過程後，我對我們領導團隊在當前情勢下的反應與管理方式感到無比自豪。我也想感謝每一位，謝謝你們所付出的努力、所做出的艱難決策，以及不得不面對的困難對話。謝謝。

As we turn to our first quarter segment results, I'll start with our Application Software segment, briefly, a quick run-through of Q1, which was quite strong.

接著看第一季各事業部門的結果，我先從應用軟體（Application Software）部門開始，簡要快速回顧一下第一季，表現相當強勁。

Revenues were $405 million, up 5% on an organic basis. EBITDA was $156 million or 38.6% of revenue. The quarter was highlighted by continued strength at Deltek for consistent factors: strength in GovCon execution, nice wins at the enterprise level and certain professional service markets and continued cloud or SaaS adoption. However, based on the impact of C-19 sheltering, Deltek did see a slowing in perpetual deal activity during the last couple of weeks in the quarter.

營收為 4.05 億美元，有機成長 5%。EBITDA 為 1.56 億美元，約占營收 38.6%。本季亮點在於 Deltek 持續強勁，原因一貫：GovCon（政府承包商）執行面表現強、企業級客戶有不錯的得標，以及在特定專業服務市場的進展，並且雲端或 SaaS 採用持續提升。然而，受 C-19 居家避難措施影響，Deltek 在本季最後幾週的永久授權（perpetual）交易活動確實出現放緩。

PowerPlan was also strong in the quarter. The sales pipeline build that we discussed in prior quarters executed nicely. CBORD and Strata were strong. In CBORD case, due to their integrated security and subscription-based software sold into higher ed markets; and for Strata, much of the same, continued solid sales execution and adoption of their hospital-based cost accounting and financial planning solutions.

PowerPlan 本季也表現強勁。我們在前幾季提到的銷售管線建置，這一季執行得很到位。CBORD 與 Strata 也都很強。以 CBORD 而言，受惠於其整合式安全解決方案與訂閱制軟體，銷售至高等教育市場；而 Strata 也類似，持續穩健的銷售執行，以及其以醫院為基礎的成本會計與財務規劃解決方案的採用度提升。

As we turn to outlook considerations, we want to provide an overview of the business model drivers for the businesses in this segment. To start, about 10% of the revenues in this segment are derived from perpetual software licenses. Within this bucket of revenue, new sales are derived principally from 3 sources: new logos; add-on product sales to existing customers; and finally, seat or volume expansions. Given the current economic outlook, we expect the vast majority of new logo sales to meaningfully slow down for the balance of the year. However, we do expect some volume of add-on product bookings to continue. Typically, during economic slowdowns, some level of selling activity does occur within this bucket of license revenue. These types of projects are smaller dollar and sold and delivered remotely.

接著談展望考量，我們想概述本部門各業務的商業模式驅動因素。首先，本部門約 10% 的營收來自永久性軟體授權。在這一營收類別中，新銷售主要來自三個來源：新客戶（new logos）；對既有客戶的加購產品銷售；以及席次或用量擴增。鑑於目前的經濟展望，我們預期今年剩餘期間，新客戶銷售的絕大部分將明顯放緩。不過，我們仍預期加購產品的訂單（bookings）會維持一定量。通常在經濟放緩期間，這一授權營收類別中仍會出現一定程度的銷售活動。這類專案金額較小，且可透過遠端方式銷售與交付。

The next bucket of revenues are tied to service delivery. Service revenues arise from 2 sources: new product implementations or existing product upgrades. The first bucket is tied directly to new license sales, either new logos or add-ons. The second bucket or services upgrade run independent of new license activity. The services book of business runs off a 6- to 12-month backlog. To date, the vast majority of our service projects continue, albeit at a slower pace, given both our customers and our delivery teams are adjusting to working remotely. We expect this revenue stream to be minimally impacted during the course of the year.

下一類營收與服務交付相關。服務營收來自兩個來源：新產品導入（implementation）或既有產品升級。第一類與新授權銷售直接連動，無論是新客戶或加購。第二類（升級服務）則可獨立於新授權活動運作。服務業務通常依 6 至 12 個月的在手訂單（backlog）推進。迄今為止，我們絕大多數服務專案仍在進行，儘管由於客戶與交付團隊都在適應遠端工作，進度有所放慢。我們預期這條營收來源在今年期間受到的影響將相對有限。

Finally, the remaining 70% of revenue is tied to recurring maintenance or SaaS-based revenues. Our companies in this segment service end markets that are expected to perform relatively well versus a broader economy: government contractors, law firms, health care and education. Given we mostly serve larger enterprises and less-affected end markets, we do expect retention rates to remain high.

最後，剩餘的 70% 營收與經常性維護或以 SaaS 為基礎的營收相關。我們在此分部的公司所服務的終端市場，預期相較於整體經濟表現將相對較佳：政府承包商、律師事務所、醫療保健與教育。鑑於我們主要服務大型企業且終端市場受影響較小，我們預期留存率將維持在高水準。

Now let's turn to the next slide to discuss some specific business impacts. Our Application Software businesses have proven to be extremely durable and consistent organic growers and will continue to do so once customer access and activities begin to come back online. However, in an environment where we essentially -- where essentially all businesses on a global basis are closed, these businesses will be modestly impacted.

現在我們切換到下一張投影片，討論一些具體的業務影響。我們的應用軟體業務已證明具備極高的韌性，且有機成長一向穩健一致；一旦客戶接觸與活動開始恢復，將會持續如此。然而，在一個我們基本上——在一個全球幾乎所有企業都關閉的環境下，這些業務仍將受到一定程度的溫和影響。

As we look at Deltek specifically, we expect the government contractor market to continue to perform well. New lead generation and pipeline build have continued during the last few weeks. On the other hand, we do expect the slowdown in new logo bookings and their professional service markets as the companies they serve are in meaningfully impacted segments and tend to be SMB sized. PS revenue and retention should perform well across both GovCon and professional service markets.

就 Deltek 而言，我們預期政府承包商市場將持續表現良好。過去幾週，新線索開發與銷售管線建置仍在持續。另一方面，我們確實預期新客戶（new logo）訂單的放緩，以及其專業服務市場的放緩，因為其服務的公司所處產業受影響顯著，且多為中小企業（SMB）規模。專業服務（PS）營收與留存率在 GovCon 與專業服務市場兩端都應有良好表現。

Turning to Aderant, PowerPlan and CBORD. We believe these businesses will be impacted in a similar fashion. We expect some net new logo bookings to slow for the next few quarters as these businesses tend to rely on face-to-face interactions to drive enterprise-level new logo sales. These activities will likely be limited for the remainder of 2020. The smaller, add-on-type product sales are expected to maintain at some level, albeit at a lower level of sales activity. All 3 of these businesses have done a fantastic job of shifting their implementation and service activities to be remotely delivered. Recurring revenue retention should perform well.

接著談 Aderant、PowerPlan 與 CBORD。我們認為這些業務將以類似方式受到影響。我們預期未來幾季淨新增新客戶（new logo）訂單可能放緩，因為這些業務往往仰賴面對面互動來推動企業級新客戶銷售。這些活動在 2020 年剩餘期間可能仍將受限。較小型、加購型產品的銷售預期仍可維持在某個水準，但銷售活動量將較低。這三項業務都非常成功地將導入與服務活動轉為遠端交付。經常性營收留存率應能維持良好。

As we look at our 4 businesses who sell into the hospital setting, we are experiencing and expect to continue to experience limited physical access to hospitals. Also, given the financial duress most U.S. health systems are facing, we expect hospital capital spending to be meaningfully down in 2020. That said, labs are extremely busy and proving their value to the world over right now. Our teams have been busy enabling all the new COVID-19 tests and will continue to do so.

就我們四個銷售至醫院場域的業務而言，我們目前正經歷、且預期將持續經歷對醫院的實體進入受限。此外，鑑於多數美國醫療體系面臨財務壓力，我們預期 2020 年醫院資本支出將顯著下滑。話雖如此，實驗室目前極為忙碌，並正向全世界證明其價值。我們的團隊一直在協助啟用所有新的 COVID-19 檢測，並將持續如此。

As a direct result of COVID-19, the Sunquest project in Queensland has been canceled. Strata should continue to grow, albeit at a slower pace. We expect continued strong demand for Strata solution, which help hospitals identify and manage costs and help model and execute financial plans.

由於 COVID-19 的直接影響，昆士蘭的 Sunquest 專案已被取消。Strata 應可持續成長，但速度將放緩。我們預期對 Strata 解決方案的需求仍將強勁；該方案可協助醫院辨識並管理成本，並協助建立模型與執行財務計畫。

Finally, we do anticipate a possible acceleration to the cloud on the back end of the current environment. As customers have had to implement their DR plans, they are likely returning with an increased appetite to offload remote IT management of their core systems. Time will tell. Next slide, please.

最後，我們確實預期在目前環境的推動下，後端上雲可能加速。由於客戶必須啟動其災難復原（DR）計畫，他們很可能在回頭時更願意將核心系統的遠端 IT 管理外包。時間會給出答案。請看下一張投影片。

Turning to our network segment. Q1 revenues grew 9% organically to $441 million. EBITDA was $185 million or 42% of revenue, a solid quarter, indeed.

接著看我們的網路分部。第一季營收有機成長 9%，達 4.41 億美元。EBITDA 為 1.85 億美元，占營收 42%，確實是一個穩健的季度。

TransCore's work for the congestion pricing infrastructure project continued in the quarter as it has been deemed essential work by the state of New York. Network software was strong and highlighted by iTrade and DAT. iTrade grew high single digits on the back of strong renewal and cross-sell activity. DAT continued to expand their network and successfully completed the market launch of rate forecasting and book-it-now capabilities. Finally, RF Ideas did very well due to their identity management solutions.

TransCore 在本季持續進行擁堵收費（congestion pricing）基礎設施專案的工作，因其被紐約州認定為必要工作。網路軟體表現強勁，其中以 iTrade 與 DAT 為亮點。iTrade 在強勁的續約與交叉銷售活動帶動下，成長達高個位數。DAT 持續擴大其網路，並成功完成費率預測與「立即預訂」（book-it-now）功能的市場推出。最後，RF Ideas 因其身分識別管理解決方案而表現非常出色。

For this segment, approximately 60% of the revenues are driven by our network software businesses, 85% of which are recurring. These businesses have very strong network effects and generally serve less impacted end markets such as health care, life insurance, logistics, food and media and entertainment. Given the core software functionality value and strong network benefits, we expect retention rates to hold up well across these businesses.

在此分部中，約 60% 的營收由我們的網路軟體業務驅動，其中 85% 為經常性收入。這些業務具有非常強的網路效應，且通常服務受影響較小的終端市場，例如醫療保健、壽險、物流、食品以及媒體與娛樂。鑑於核心軟體功能價值與強勁的網路效益，我們預期這些業務的留存率將維持良好。

Relative to TransCore, as mentioned, the New York City congestion pricing infrastructure project continues and is deemed essential. Over the course of the last couple of weeks, New York state and the MTA budget moved the congestion pricing toll revenue into the operating budget versus the MTA capital budget. Our view is that this modestly increases the urgency of this project. All this being said, we have pushed the project to the right a bit, moving approximately $25 million into early 2021.

就 TransCore 而言，如前所述，紐約市擁堵收費基礎設施專案仍在進行，且被認定為必要項目。在過去幾週期間，紐約州與大都會運輸署（MTA）的預算將擁堵收費通行費收入從 MTA 資本預算移入營運預算。我們的看法是，這會在一定程度上提高該專案的急迫性。儘管如此，我們仍將專案時程稍微往後推，約有 2,500 萬美元移至 2021 年初。

For the balance of TransCore, project activity continues and will continue, but we do expect some projects to be pushed into 2021. Over the longer arc of time, the business case for all electronic tolling may accelerate as a result of the current health pandemic. Essentially, human-to-human contact paying a toll may be greatly reduced, if not eliminated. TransCore will be ready to execute if this demand driver accelerates.

至於 TransCore 其餘業務，專案活動仍在進行且將持續，但我們確實預期部分專案會延後至 2021 年。從更長期的角度來看，受此次健康疫情影響，全電子收費（all electronic tolling）的商業理由可能加速成立。基本上，人與人接觸進行繳費的情境可能大幅降低，甚至被消除。若此需求驅動因素加速，TransCore 將準備好執行。

Next slide, please. Turning to some company-specific impacts for the software businesses in our network segment. First, our DAT and ConstructConnect. Both of these businesses have subscription-based revenue models. Both have some exposure to small- and medium-sized businesses, but also work directly with large enterprises. Both businesses have network benefits that typically exhibit countercyclical behavior. For example, and specific to ConstructConnect, the core product is a lead -- is a project lead identification source. As more contractors look for fewer projects, they tend to enter our network to source and bid for new project business. In the first 3 weeks in April, it's encouraging to see the ConstructConnect network expands modestly. For DAT, the brokers stay connected to the network and take advantage of lower spot rates versus contracted rates, and carriers stay connected to find load volumes.

請看下一張投影片。接著談我們網路分部中軟體業務的一些公司層面影響。首先是 DAT 與 ConstructConnect。這兩項業務皆採訂閱制營收模式。兩者都對中小企業有一定曝險，但也直接與大型企業合作。兩項業務都具備網路效益，且通常呈現逆景氣循環（countercyclical）行為。以 ConstructConnect 為例，其核心產品是一個線索——是一個專案線索辨識來源。當更多承包商為了較少的專案而尋找機會時，他們往往會加入我們的網路以取得來源並投標新的專案業務。在四月的前三週，令人鼓舞的是 ConstructConnect 的網路規模小幅擴大。至於 DAT，經紀商會持續連線至網路並利用較低的即期運價（spot rates）相對於合約運價，而承運商也會持續連線以尋找貨量。

ITrade is quite busy connecting food retailers. With an increasing number of grower shippers, we expect minimal disruption here. iPipeline has been super active helping their life insurance customers adapt their products and their underwriting processes in this environment. The outlook remains stable here as well.

iTrade 正忙於連結食品零售商。隨著種植者出貨商（grower shippers）數量增加，我們預期此處的干擾將極小。iPipeline 也非常積極，協助其壽險客戶在此環境下調整產品與核保流程。此處展望同樣維持穩定。

Relative to Foundry, content creation continues. There is a large pipeline of post-production work that is currently being processed as well as continued new animation content creation. As a potential early read for western productions, Chinese live action has restarted on a limited basis.

就 Foundry 而言，內容創作仍在持續。目前有大量後期製作工作正在處理中，同時也持續進行新的動畫內容創作。作為西方製作的潛在早期指標，中國的真人實拍已在有限範圍內重新啟動。

Finally, our alternate site health care businesses will perform relatively well but are not spared from some level of impact. Both SHP and SoftWriters customers are being impacted by the lack of hospital-based procedures and the associated outpatient recoveries. For instance, new starts of care for home health are down 30% to 35% versus a year ago. We expect these customers to likely pause buying new products until their patient volumes return. Retention, however, should remain high as our products are needed for core operations.

最後，我們的替代場域（alternate site）醫療保健業務將相對表現良好，但仍無法完全免於一定程度的影響。SHP 與 SoftWriters 的客戶都受到醫院端手術量不足及相關門診復原量下降的影響。例如，居家健康（home health）的新開案照護（new starts of care）較去年同期下降 30% 至 35%。我們預期這些客戶可能會暫停購買新產品，直到其病患量回升。不過，留存率應仍將維持高水準，因為我們的產品為核心營運所必需。

And finally, MHA's revenues are tied to pharmaceutical utilization across long-term care settings. Starting now and likely for several quarters into the future, new admissions into long-term care settings will likely slow. However, this should only modestly impact the growth rate of MHA.

最後，MHA 的營收與長期照護場域的藥品使用量相關。從現在開始，且可能在未來數季，新入住長期照護機構的人數可能放緩。然而，這應僅會對 MHA 的成長率造成溫和影響。

Next slide, please. Turning to our Measurement & Analytical Segment. Q1 revenues grew 3% organically to $365 million. EBITDA was $123 million or 33.6% of revenue. The quarter was highlighted by strong growth at Verathon amid the COVID-19 outbreak. Unrelated to C-19, Verathon saw continued traction in their new single-use bronchoscope products.

請看下一張投影片。接著談我們的「量測與分析」分部。第一季營收有機成長 3%，達 3.65 億美元。EBITDA 為 1.23 億美元，占營收 33.6%。本季亮點是在 COVID-19 爆發期間 Verathon 的強勁成長。與 C-19 無關的是，Verathon 的新型一次性支氣管鏡產品持續獲得市場動能。

Additionally, Northern Digital and Neptune continued their solid string of growth. Also, we did experience declines, as expected, in our short-cycle industrial businesses with some further weakening in the quarter due to COVID-19.

此外，Northern Digital 與 Neptune 也延續其穩健的成長走勢。同時，我們也如預期在短週期工業業務上出現下滑，且本季因 COVID-19 影響而進一步走弱。

Turning to the outlook. This segment can be analyzed across 4 areas: Verathon, other medical products, Neptune and industrial. At Verathon, we are experiencing truly unprecedented demand for their GlideScope family of products. Intubation procedures have skyrocketed due to COVID-19. Verathon's video intubation products enable the caregiver to intubate a patient with appropriate spatial distance from the patient, making the intubation procedure meaningfully less risky for the caregiver. The demand for these products is global and has been sustained since the middle of March.

接著談展望。此分部可分四個面向分析：Verathon、其他醫療產品、Neptune 與工業。在 Verathon，我們正經歷對其 GlideScope 產品系列真正前所未見的需求。由於 COVID-19，插管（intubation）處置量大幅飆升。Verathon 的影像插管產品可讓照護人員在與病患保持適當空間距離的情況下進行插管，使插管程序對照護人員而言風險顯著降低。這些產品的需求遍及全球，且自三月中旬以來一直維持。

Our other medical product businesses, which grow organically MSD like clockwork in virtually all environments, are likely negatively impacted based on the global nature of historically lower hospital-based volumes and the associated economic impact. Hospitals have never been forced to defer all nonemergency cases.

我們其他的醫療產品業務，在幾乎所有環境下都能像時鐘般有機地帶動 MSD 成長，但鑑於歷史上較低的以醫院為主的就診量具有全球性，以及其相關的經濟影響，這些業務很可能會受到負面衝擊。醫院從未被迫延後所有非緊急病例。

Neptune is a very stable growth business due to consistent required meter upgrades and replacements. Given the shelter-in-place requirements, limited access to indoor meters and municipality budget uncertainties, some level of sales activity will likely push to the right with the most acute impact being in the second quarter.

Neptune 是一項非常穩定的成長型業務，原因在於持續且必要的儀表升級與更換。考量到就地避難要求、室內儀表可接觸性受限以及市政預算不確定性，部分銷售活動很可能會往後遞延，其中最急性的影響將出現在第二季。

Finally, our industrial businesses are negatively impacted and generally tied to industrial output. Our industrial products are critical to industrial production processes. There are some pockets of strength, Dynisco, Hardy and Hansen, but for this group, our revenues for these businesses will be tied to the pacing of plant reopenings. And as a green shoot, we are seeing strong activity across Chinese end markets as our markets come back online.

最後，我們的工業業務受到負面影響，且通常與工業產出連動。我們的工業產品對工業生產流程至關重要。雖然有一些強勢領域，例如 Dynisco、Hardy 與 Hansen，但就這個群組而言，這些業務的營收將取決於工廠復工的節奏。作為一個正向訊號，隨著市場重新上線，我們看到中國終端市場的活動強勁。

Next slide, please. Turning to our Process Technologies segment. Revenues were $142 million in the quarter, down 10% on an organic basis. EBITDA was $46 million or 32.4% margins. This was a difficult quarter for these businesses, and we expect the outlook to remain extremely poor for the balance of 2020. We saw our upstream businesses decline in the high teens in the quarter. Also, CCC was weak based on the inability to perform field service work, all related to C-19.

請看下一張投影片。接著談我們的流程技術（Process Technologies）部門。本季營收為 1.42 億美元，有機基礎下下降 10%。EBITDA 為 4,600 萬美元，或 32.4% 的利潤率。這一季對這些業務而言相當艱難，我們預期 2020 年剩餘期間的展望仍將極度疲弱。本季我們的上游業務下滑達高十幾個百分點。此外，由於無法執行現場服務工作，CCC 表現疲弱，這些都與 C-19 相關。

One bright spot in the quarter was Zetec, up mid-single digits based on growth from their new nondisruptive testing products. The outlook for the balance of the year is going to be an extremely challenging one. About 60% of the segment's revenue and about 6% of Roper's revenue is related to oil and gas. We will be hit the hardest, down approximately 50% in the second quarter in our upstream businesses. For the year, upstream revenues will be less than $100 million or roughly 2% of Roper. We do not expect the recovery at all in 2020. Our mid- and downstream businesses are also meaningfully negatively impacted but less so than our upstream businesses. Pace of recovery here will be gated by CCC's ability to get into the field and perform field service work and the recovery of fuel refining for PAC.

本季的一個亮點是 Zetec，受其新型非破壞性檢測產品成長帶動，營收上升中個位數百分比。全年剩餘時間的展望將極具挑戰。該部門約 60% 的營收、以及 Roper 約 6% 的營收與油氣相關。我們受衝擊最嚴重的將是上游業務，第二季約下滑 50%。全年而言，上游營收將低於 1 億美元，約占 Roper 的 2%。我們不預期 2020 年會出現任何復甦。我們的中游與下游業務也將顯著受到負面影響，但程度低於上游業務。此處的復甦速度將受限於 CCC 能否進入現場並執行現場服務工作，以及 PAC 的燃料煉製需求復甦。

Next slide, please. As we turn to our guidance, we are initiating DEPS guidance for 2Q in the range of $2.50 to $2.70 and updating our full year DEPS guidance to be between $11.60 and $12.60 per share. Embedded in this guidance model is an increased full year tax rate of 23%. We built this model, as we always do, on a business-by-business, bottoms-up analysis. We have summarized the organic outlook for each segment for the second quarter and the full year with the underlying material assumptions.

請看下一張投影片。接著談我們的財測指引，我們啟動第二季 DEPS 指引區間為 2.50 至 2.70 美元，並將全年 DEPS 指引更新為每股 11.60 至 12.60 美元。此指引模型內含全年稅率提高至 23%。我們一如既往，以逐一業務、自下而上的分析建立此模型。我們已彙總各部門在第二季與全年的有機展望，以及其背後的重要假設。

For Application Software, we see second quarter revenue down MSD, with full year revenue plus or minus low single digits. Where we settle for the full year is dependent upon the volume and timing of add-on perpetual deals, the pacing of services work and sustaining high-recurring revenue retention rates.

就應用軟體（Application Software）而言，我們預期第二季營收下降 MSD，而全年營收約為正負低個位數百分比。全年最終落點取決於附加的永久授權（add-on perpetual）交易量與時點、服務工作的推進節奏，以及維持高經常性收入留存率的能力。

For network systems, we've seen second quarter organic revenues up low single digits and full year up mid-single digits to possibly low double digits. The largest variable is the pacing of the New York congestion pricing project.

就網路系統（network systems）而言，我們看到第二季有機營收上升低個位數百分比，全年上升中個位數百分比，甚至可能達到低雙位數百分比。最大的變數是紐約擁堵收費（congestion pricing）專案的推進節奏。

For MAS, we see this segment down mid-single digits in the second quarter and flat to up mid-single digits for the year. Principal factors for this segment are the sustained nature of Verathon's demand spike, the timing of medical procedures coming back online, the nature of water municipality budgets and the ramp of global industrial production.

就 MAS 而言，我們預期該部門第二季下降中個位數百分比，全年持平至上升中個位數百分比。該部門的主要因素包括 Verathon 需求激增的持續性、醫療程序恢復上線的時點、水務市政預算的特性，以及全球工業生產的爬坡。

Finally, our process segment will be materially and negatively impacted. We expect 2Q revenues to be down at least 30% and full year down in the 20% to 25% range. Again, we do not expect a recovery this year. When you roll all this together, we expect our consolidated organic revenues to be down mid-single digits for the second quarter. And for the full year, organic revenues are expected to be plus or minus low single digits. Again, this is a remarkable testament to the durability of our businesses and business model.

最後，我們的流程部門將受到重大且負面的影響。我們預期第二季營收至少下降 30%，全年下降約 20% 至 25%。再次強調，我們不預期今年會復甦。綜合以上，我們預期第二季合併有機營收下降中個位數百分比；而全年有機營收預期為正負低個位數百分比。再次強調，這充分證明了我們業務與商業模式的韌性。

Our teams did a good job responding to the demand shock and placing cost countermeasures in place, the vast majority of which being temporary. This enabled us to remain -- this enables us to maintain high margins as we work through the demand shock, retain virtually all no regrets investments in innovation and talent while preserving the operational flexibility to rebound quickly.

我們的團隊在回應需求衝擊並採取成本對策方面做得很好，其中絕大多數是暫時性的。這使我們得以在度過需求衝擊期間維持高利潤率，幾乎保留所有「不後悔」的創新與人才投資，同時保有快速反彈所需的營運彈性。

Now let's turn to our summary. We had a very solid Q1, really proud of the team here for these results. As we quickly pivot towards operating in a C-19 world, our enterprise remains fully operational, and working from home is proving to be highly effective. So effective that we'll likely remain in this posture for quite some time. Our balance sheet is stronger than at any point in history, with $1 billion in cash and $2.5 billion of revolver capacity.

現在來做個總結。我們第一季表現非常穩健，對團隊的成果感到非常自豪。隨著我們迅速轉向在 C-19 的世界中營運，我們的企業仍全面運作，而居家辦公證明非常有效。有效到我們很可能會在相當長一段時間內維持這種模式。我們的資產負債表比歷史上任何時點都更強健，擁有 10 億美元現金與 25 億美元的循環信貸額度（revolver）可用額度。

For the full year, we expect to have plus or minus flat organic revenue growth. We believe our portfolio of businesses and our governance processes are well suited to navigate this extremely difficult time. We will do so in a way that prudently balances short-term financial performance and cost countermeasures with that of long-term investments in innovation and talent. Our teams are keenly focused on market share gains, both now and upon recovery.

就全年而言，我們預期有機營收成長約為正負持平。我們相信，我們的業務組合與治理流程非常適合在這段極其艱難的時期中前行。我們將以審慎方式在短期財務表現與成本對策，以及長期在創新與人才上的投資之間取得平衡。我們的團隊高度聚焦於市占率提升，無論是現在或是復甦之後。

As we execute our strategy that focuses on long-term cash flow compounding, we will continue to patiently evaluate and pursue capital deployment opportunities. Our process is rigorous and disciplined. We do expect many attractive capital deployment opportunities to arise from the current economic situation. As our balance sheet is very well positioned, we will offensively deploy capital on the -- as the right opportunities are identified.

在執行以長期現金流複利成長為核心的策略時，我們將持續耐心評估並追求資本配置機會。我們的流程嚴謹且自律。我們確實預期，當前的經濟情勢將帶來許多具吸引力的資本配置機會。由於我們的資產負債表處於非常有利的位置，一旦辨識到合適機會，我們將採取更積極的資本部署。

Final slide, please. As we prepare for your questions, I wanted to highlight a few examples of how Roper businesses are aiding in the fight against COVID-19. Our lab businesses enabled a new C-19 test to interface with lab information systems and provide results to doctors and patients. iTrade is connecting new food trading relationships as food buying shifted almost entirely to grocers. Strata is using their AI tools to help hospitals have financial clarity in these uncertain times. And Verathon, as discussed, is truly on the front lines. I'm extraordinarily proud to be able to lead this organization. Now let's turn to your questions.

請看最後一張投影片。在準備回答各位問題之前，我想強調幾個例子，說明 Roper 的業務如何協助對抗 COVID-19。我們的實驗室業務使新的 C-19 檢測能與實驗室資訊系統介接，並將結果提供給醫師與病患。iTrade 在食品採購幾乎完全轉向雜貨通路之際，正在連結新的食品交易關係。Strata 正在運用其 AI 工具，協助醫院在這些不確定時期釐清財務狀況。如前所述，Verathon 確實站在第一線。我非常自豪能夠領導這個組織。現在我們來回答各位的問題。

(Operator Instructions) Our first question comes from Deane Dray of RBC Capital Markets.

（接線員指示）我們的第一個問題來自 RBC Capital Markets 的 Deane Dray。

And I just want to thank you for all the additional color that you provided today on both the Application Software and network software business models and the mix. That was helpful. And that last slide on all the ways you're participating in the COVID defense, that was great to see as well.

我只是想感謝你今天就應用軟體與網路軟體的商業模式與組合所提供的額外細節與說明。這很有幫助。最後那張投影片展示你們參與 COVID 防疫的各種方式，也很高興看到。

So Neil, for the first question, it's -- the idea here is most companies are drawing on revolvers. You're obviously not doing that, you're at much stronger position. But keeping $1 billion in cash at the ready to deploy in M&A at the appropriate time, can you talk through the -- when will be the appropriate time? Because will these -- there be targets in distress that would be opportunistic? Because it typically takes a while for prices to reset in a downdraft like this. So maybe kind of set expectations on when and how you deploy M&A here?

所以 Neil，第一個問題是——這裡的想法是，多數公司都在動用循環信貸額度（revolver）。你們顯然沒有這麼做，你們的處境強得多。但你們保留 10 億美元現金以便在適當時點用於併購（M&A）部署，你能否談談——何時會是適當時點？因為是否會有陷入困境的標的，讓你們可以把握機會？畢竟在這種下行走勢中，通常需要一段時間價格才會重置。所以也許請你設定一下預期：你們會在何時以及如何在此部署併購？

Sure. Appreciate the question. In any environment, it's hard to predict the timing of capital deployment because, as you know, it's lumpy. But a few comments.

當然。感謝這個問題。在任何環境下，都很難預測資本部署的時點，因為如你所知，它是非線性的、時點不均的。不過我有幾點想法。

First, leading into the shutdown, leading into the middle of March, we were extraordinarily active and paused several things and believe at the right time, we can unpause those things. Only time will tell there. But we stay in constant contact with the owners of those assets, the leadership team for those assets. And these were very late-stage sort of situations.

第一，在停擺之前、也就是進入三月中旬之前，我們的活動非常積極，後來暫停了幾件事，並相信在適當時機我們可以重新啟動。這只能交由時間來驗證。但我們與那些資產的所有者、以及那些資產的領導團隊保持持續聯繫。而且這些都是非常後期階段的情況。

On the -- but once we work through that sort of late-stage part of the pipeline, there continues to be some level of discussions between sponsors and ourselves. We've spent years developing relationships. We know the portfolios well. And this is the time where those relationships matter the most because it's unlikely that here in the next couple, 3, 4, 5 months, however long it is, that there's going to be broad-based, sell-side processes. But sponsors still have requirement to get liquidity back to their shareholders. And if there's one-off trades that makes sense for both sides, we think those could happen.

在——但一旦我們把管線中那種偏後期的階段處理完之後，贊助方與我們之間仍會持續有一定程度的討論。我們花了多年建立關係。我們很了解這些投資組合。而這正是那些關係最重要的時候，因為在接下來的幾個月——2、3、4、5 個月，不管多久——不太可能會出現廣泛性的賣方流程。但贊助方仍然有需求要把流動性回饋給他們的股東。而如果有一些一次性的交易對雙方都有意義，我們認為這些交易是可能發生的。

And then finally, they're more likely than not. We saw it in the last downturn in the '07, '08, 09 time frame as we studied that, I wouldn't call them just -- there likely be some companies that are distressed from a capital structure point of view, not from an operating point of view, which gives them sort of -- it puts them in a pinch to where we're able to acquire nice assets, operating assets that meet all of our criteria. But they just have -- made some poor decisions or have some bad timing on their capital structure.

然後最後，他們很可能——我們在上一輪衰退、也就是 07、08、09 年那段期間研究時就看到了——我不會稱它們只是——很可能會有一些公司是從資本結構的角度陷入困境，而不是從營運角度，這會讓它們有點——使它們陷入窘境，讓我們能夠收購優質資產、符合我們所有標準的營運資產。但它們只是——在資本結構上做了一些不佳的決策，或是時點不巧。

So there's really -- it's the nature of where we'll sort of target, might change modestly. Because you're right, it does take typically a couple of quarters, plus or minus, for private valuations to reset to where public ones are.

所以其實——我們鎖定的目標性質可能會有些微調整。因為你說得對，通常需要幾個季度、上下浮動一些，私募估值才會重置到與公開市場估值一致。

That's real helpful. And then a follow-up for Rob on working capital. You said that there was -- you might be seeing some delayed payments. Can you elaborate on that? And when you said you expect working capital to remain negative, was that a comment for quarterly or for the year? And how do you think the quarterly stacks out for -- in terms of being negative each quarter?

這很有幫助。接著我想追問 Rob 一個關於營運資金的問題。你提到可能看到一些延遲付款。你能再多說明一下嗎？另外你說你預期營運資金會維持為負，那是指按季度來看，還是指全年？你怎麼看每一季的表現——就每季都為負這件事而言？

Yes. Deane, appreciate the question. It's always difficult to predict working capital, right? It's one of the toughest things to predict. We certainly know that there are some end markets, particularly acute care -- health care, where, if you follow the news, there's going to be some challenges there where hospitals are slowing some payments, et cetera. So difficult to predict each quarter.

是的。Deane，謝謝你的問題。營運資金一向很難預測，對吧？它是最難預測的事情之一。我們確實知道有一些終端市場，特別是急性照護——醫療保健領域，如果你有看新聞，醫院那邊會有一些挑戰，像是放慢部分付款等等。所以每一季都很難預測。

I will say that our customers overall were in very durable end markets. And so we expect really no credit risk across all of our customers. So it's a matter of timing of payments. And when you have the huge deferred revenue balance, when you have management teams, they're really close to their customers. We feel really confident that the working capital position will remain very strong and negative throughout the year.

我想說的是，我們整體客戶所處的終端市場非常具韌性。因此我們預期在所有客戶中基本上不會有信用風險。所以這只是付款時點的問題。而當你有龐大的遞延收入餘額，當你有管理團隊與客戶保持非常緊密的互動時，我們對於營運資金狀況在全年都會維持非常強勁且為負，感到非常有信心。

Our next question today comes from Steve Tusa of JPMorgan.

我們今天的下一個問題來自 JPMorgan 的 Steve Tusa。

Thanks for all the detail. Every quarter, more successive detail on all the businesses. It's very helpful in helping us dumb industrial analysts understand these tech businesses. So I appreciate that.

謝謝你們提供這麼多細節。每一季都更進一步、連續地提供各個業務的細節。這對於幫助我們這些笨拙的工業類分析師理解這些科技業務非常有幫助。所以我很感謝。

On the second quarter guide, the -- it looks to me like your sales are down like $85 million -- $80 million to $90 million, just using kind of a mid-single-digit rate maybe. And -- but the EPS decline of like $0.45 seems to be a pretty high decremental. Is that just kind of the nature of the business? How -- can you kind of just help us walk the kind of the profit performance there? Anything moving around mix wise?

關於第二季的指引——在我看來，你們的銷售額大概下滑了 8,500 萬美元——8,000 萬到 9,000 萬美元左右，如果用大概中個位數的降幅來估算的話。而——但 EPS 下滑大約 0.45 美元，看起來是相當高的遞減幅度。這只是業務本質使然嗎？你們能不能幫我們梳理一下獲利表現？在產品組合方面有什麼變動嗎？

Yes, I'll start, and then I'll ask Rob to add any color. So obviously, the -- this demand shock for basically every company came fast and deep, right? So we started feeling it across a few of our companies at the end of the quarter. And then obviously, it sustained here through the first part of April.

是的，我先回答，然後請 Rob 補充。很明顯地，這次需求衝擊對幾乎每家公司來得又快又深，對吧？所以我們在季度末開始在幾家子公司感受到影響。然後很顯然地，這種情況在 4 月初的前段時間仍持續。

So a couple of comments. So first, when this happened, just from a planning perspective, we first -- we didn't try to overreact or react too quickly. We first had to get everybody home, which took a week or 2. We then took a week to 10 days to let our leaders really onboard and accept the reality of the demand shock. And then we started our planning process, which was really the first week or so in April. So some time spaced by. And so by the time you do the planning process in the second quarter and then start putting in the cost countermeasures, it was really just starting to layer in now against what we believe is going to be the steepest demand shock. And so when you put those 2 together, you just naturally get sort of the worst leverage, if you will, in 2Q and things stabilize from that point forward.

所以有幾點說明。第一，當這件事發生時，就規劃角度而言，我們一開始——並沒有試圖過度反應或反應得太快。我們首先得讓大家回到家工作，這花了 1 到 2 週。接著我們又花了 1 週到 10 天，讓我們的領導團隊真正上手並接受需求衝擊的現實。然後我們才開始規劃流程，大概是在 4 月的第一週左右。所以中間隔了一段時間。因此當你在第二季做完規劃流程，並開始導入成本對策時，其實才剛開始逐步疊加，而我們認為這將是最陡峭的需求衝擊。把這兩者放在一起，你自然就會在第二季看到最差的槓桿效應（如果你願意這麼說），而從那之後情況會趨於穩定。

Yes. I'll just add to that. We talked a lot about the perpetual license timing. And so when you're in the second quarter period where the economy is basically shut down for at least the first month of the quarter. So we're not assuming much, if any, license revenue. As you know, that comes at a really high margin. We do have the TransCore project continuing, which is lower margin. So you're really also looking at some mix impacts, adding on to what Neil said.

是的。我再補充一下。我們談了很多永久授權的時點問題。因此在第二季期間，經濟基本上至少在該季的第一個月是停擺的。所以我們不假設會有太多、甚至任何授權收入。你也知道，那部分毛利率非常高。我們確實有 TransCore 專案持續進行，但那是較低毛利。因此你也會看到一些組合影響，再加上 Neil 剛才提到的因素。

And then the final thing, Steve, so I should have mentioned it at the onset, is we're not adding back any of the restructuring costs. So that is a little bit of a headwind in the quarter as well.

然後最後一點，Steve，我一開始應該就要提到：我們沒有把任何重組成本加回去。所以這在本季也會帶來一些逆風。

Got it. How much is that again?

了解。那大概是多少來著？

It's sub-$10 million.

低於 1,000 萬美元。

Okay. That makes some sense. And then it's my understanding that in some of these software businesses, you see kind of perhaps a bit of a pause, but then that's kind of a quarterly variance. We're kind of used to some CapEx businesses that are kind of more annual cycles. So that -- are you expecting kind of a push on revenues in Application Software from second quarter into third, so that you kind of have a bit of like pent-up revenue in the second half of the year, if you will? Is that how we should kind of think about this or not really?

好，這就說得通一些。然後我的理解是，在某些軟體業務中，你可能會看到某種程度的暫停，但那比較像是季度間的波動。我們比較習慣一些資本支出型業務，那種比較偏年度週期。所以——你們是否預期應用軟體的營收會從第二季推遲到第三季，讓你們在下半年有點像是累積的、被延後的營收（如果可以這麼說）？我們應該這樣理解嗎，還是不太是？

So Steve, everything's certainly pushing to the right. We've not assumed that there's a -- it's a 2Q push that comes back in 3Q. It's just everything sliding to the right. And to the extent what you describe happens, then that would lead us to be more on the higher side of our guidance than the lower side.

Steve，確實一切都在往右推。我們並沒有假設這是第二季的推遲、第三季就回來。比較像是所有事情都往右滑移。而如果你描述的情況真的發生，那會讓我們的表現更可能落在指引的較高端，而不是較低端。

On the new logo sales, the new customers that are buying relatively high-dollar, transformational-type IT projects, those are going to be pushed to the right for the balance of the year for the most part, right? Who's going to make a big IT investment right now, setting aside how our salespeople actually get to that customer and sell. But the smaller-ticket items, the upgrades and the add-on products, that level of activity has actually been quite nice. At Deltek, for instance, the top of the funnel here in the last 3 or 4 weeks, like this is the inquiries, are up 30% to 35% versus a year ago. Now some of that is everybody's sitting at home doing Google searches, right? So the quality of that top of the funnel may not be as high. But what's been accepted as sales acceptance lead at Deltek has actually paced even a little bit ahead of last year. So the exact nature of how this thing is going to unfold because it's more of a shock than a cycle, is yet to be seen.

至於新 logo 銷售，也就是新客戶購買相對高金額、具轉型性質的 IT 專案，那些在今年剩餘時間大多都會往右推，對吧？誰會在現在做一筆大的 IT 投資呢？先不談我們的業務人員實際上如何接觸客戶並完成銷售。但小額項目、升級與加購產品，那個層級的活動其實相當不錯。以 Deltek 為例，過去 3 到 4 週漏斗頂端（也就是詢問量）比一年前增加了 30% 到 35%。當然其中一部分是大家都坐在家裡做 Google 搜尋，對吧？所以漏斗頂端的品質可能沒那麼高。但在 Deltek，被接受為銷售認可線索（sales acceptance lead）的數量，實際上甚至比去年還略快一些。因此這件事會如何展開的確切樣貌——因為它更像是一個衝擊而不是一個循環——仍有待觀察。

Sorry, one more for you. Any impact to MHA? I know that obviously, nursing homes and those types of things are having a real hard time right now dealing with all of this in certain areas, kind of struggle to understand whether that's -- it's obviously negative in life, but it did -- whether it's negative or positive for your business. How does that work here with the stress in nursing homes?

不好意思，再問最後一個。對 MHA 有任何影響嗎？我知道很明顯地，護理之家以及那類機構在某些地區現在正非常辛苦地應對這一切，我有點難理解這對你們的業務是——它在生活層面顯然是負面的，但它對你們的業務是負面還是正面？護理之家承受壓力時，這裡的運作情況是怎樣？

Yes. So certainly, the number of new admissions to the skilled nursing or SNF sort of care setting is likely going to be paused for quite some time, right? We're not putting in the elderly population in that care setting. So that -- because the census, if you will, in SNFs, is going to be impacted by that, that will have some, but it'd be a modest and slow building impact, negative impact to the growth rate of MHA.

是的。所以可以確定的是，新的入住人數進入專業護理（skilled nursing）或 SNF 這種照護場域，可能會暫停相當一段時間，對吧？我們不會把高齡人口送進那種照護環境。所以——因為 SNF 的入住人數（如果你願意這麼說）會因此受到影響，這會對 MHA 的成長率帶來一些影響，但會是溫和且逐步累積的影響，也就是負面影響。

What still happens, we're not seeing any meaningful discharges, right? The people that are in this setting for a long arc of time, they're not being pulled out because of what's going on. And this is just one of many growth drivers at MHA, right? You still have pricing that goes up. You still have pharmaceutical consumption per capita that goes up. You still have the team building to put new products online. There still are new pharmacies that will start that we'll capture. So there's a handful of sort of consistent growth drivers. But certainly, census levels will moderate some in the skilled nursing facility, which will impact the growth rate of -- modestly of MHA.

仍然發生的情況是，我們沒有看到任何有意義的出院，對吧？在這種環境裡待了很長一段時間的人，因為目前發生的事情，他們並沒有被轉出。而這只是 MHA 眾多成長驅動因素之一，對吧？你仍然有價格上漲。你仍然有人均藥品消耗量上升。你仍然有團隊建置以讓新產品上線。仍然會有新的藥局開業，我們也會把它們納入。我們有幾個算是相對一致的成長驅動因素。但可以確定的是，專業護理機構的入住人數（census）水準會有所降溫，這將對 MHA 的成長率造成——溫和的——影響。

Our next question today comes from Julian Mitchell of Barclays.

我們今天的下一個問題來自 Barclays 的 Julian Mitchell。

[Joao] on for Julian. Maybe switching back to working capital first. Can you talk a bit on how the unearned revenue is going to kind of play in without the expectation? How well has that been holding up? And how much of a headwind could that be with AS guided down for Q2?

[Joao] 代 Julian 提問。也許先切回營運資金。你能談談遞延收入（unearned revenue）在沒有那個預期的情況下會如何發揮作用嗎？它目前維持得如何？以及在 AS 對第二季下修指引的情況下，這可能會帶來多大的逆風？

Yes, sure. This is Rob. The way deferred revenue works for our software businesses is it's just the passage of time that needs to happen in order for the revenue to be recognized. And so as I mentioned on the call, it is -- when you have a renewal, then -- and then that's the point at which you hope the customer renews or they don't. And generally, they do at very high 90% renewal rates. And those renewals are timed throughout the year. So as long as you maintain your recurring revenue, it's very, very steady. The deferred revenue continues to grow as the software businesses grow.

好的，當然可以。我是 Rob。對我們的軟體業務而言，遞延收入的運作方式是：只要時間推移，收入就會被認列。正如我在電話會議上提到的，當你遇到續約時——那就是你希望客戶續約或不續約的時間點。而一般而言，他們會以非常高的 90% 多的續約率續約。這些續約在一年中分散發生。所以只要你維持經常性收入，它就非常、非常穩定。隨著軟體業務成長，遞延收入也會持續成長。

A reminder, we're selling this software. It's really critical software systems across durable markets, like government contractors, mostly large enterprises are the customers. And so it's very, very steady. It gives you high levels of recurring revenue and high levels of cash flow. So we don't see any meaningful impact from that certainly in the short term.

提醒一下，我們銷售的是這套軟體。它是橫跨耐久型市場的關鍵軟體系統，例如政府承包商；客戶多半是大型企業。因此它非常、非常穩定。它能帶來高水準的經常性收入與高水準的現金流。所以我們看不到它在短期內會有任何有意義的影響。

Got it. And then I guess maybe on that guided decline for next quarter, it does sound like a big chunk of that is just push out of licensing and so on. But is there any impact from kind of the mix here moving much more towards license and service rather than perpetual just being down to 10% now kind of as you're saying?

了解。那我想再問一下，對於下一季指引的下滑，聽起來其中很大一部分只是授權等項目的遞延（push out）。但在這裡，組合是否有任何影響——也就是更大幅度地轉向授權與服務，而不是永久授權（perpetual），因為如你所說永久授權現在只剩 10%？

Well, certainly, we expect the bucket of revenue of perpetual license revenue, the historical 10% number, that will be down. It will be impacted for the reasons that we talked about. The recurring won't be impacted in any meaningful way and the services backlog, we'll work through the back -- the services teams will work through the backlog, as we've said. So I don't know if you have...

嗯，當然，我們預期永久授權收入這個收入桶（bucket），也就是歷史上的 10% 那個數字，會下降。它會因為我們談到的原因而受到影響。經常性收入不會受到任何有意義的影響，而服務積壓（services backlog），我們會如先前所說，由服務團隊逐步消化這些積壓。所以我不確定你是否還有……

Yes. And then just as you're going through the guidance, keep in mind, we did increase the tax rate. So that's a big difference from prior guidance and if you're looking at last year versus this year. So the tax rate is a little bit higher. And then we are assuming relatively high deleveraging in Process Technologies given all the declines there and that we're not assuming any sort of a rebound. And as Neil mentioned, we're taking specific cost actions as well that are flowing through. So those are all key drivers in the roll up.

是的。另外在你檢視指引時請記得，我們提高了稅率。所以這是相較於先前指引的一個重大差異，也是在你比較去年與今年時的一個差異點。因此稅率稍微高一些。再者，我們假設 Process Technologies 會出現相對較高的去槓桿（deleveraging），因為那邊的下滑幅度很大，而且我們並未假設會有任何反彈。正如 Neil 提到的，我們也在採取特定的成本措施，這些都會反映在結果中。所以這些都是彙總（roll up）時的關鍵驅動因素。

Our next question comes from Joe Giordano of Cowen.

我們的下一個問題來自 Cowen 的 Joe Giordano。

I apologize if you went through some of the stuff. We're kind of quadruple passing this morning a little bit. So for TransCore, I know you mentioned in the prepared remarks, you pushed some off into next year, and I don't think that should be too surprising. But given some of the stuff that's been in the paper recently about necessary permits and issues with different government agencies, can you talk about what actually needs to happen before this is able to be -- before the actual hardware can be deployed?

如果你們已經談過其中一些內容，我先道歉。我們今天早上有點同時在聽好幾場電話會議。所以關於 TransCore，我知道你在事先準備的講稿裡提到，你把一些內容推遲到明年，我想這不會太令人意外。但鑑於最近報紙上有一些關於必要許可與不同政府機構之間問題的報導，你能談談在實際硬體能夠部署之前，究竟需要發生什麼嗎？

Yes. So I would -- the hardware is being deployed. The project is on track. It's on pace other than just pushing the $25 million in our planning assumptions into the Q1 of next year. What you may have read and what others have read is there -- I think there is a distinct separation between the work that we're doing with our customer to put the infrastructure in, which is pacing for the reason we said. It's now the revenue from this or the operating budget, not the capital budget because the MTA, obviously, revenues are way down, given what's going on. And then what (inaudible) happened [was the] governmental process to enable and structure the tolling itself. That's going to happen at the very end part of this year, but the infrastructure work continues, and that's -- and we -- that's our planning assumption. All the signals and all the discussions, as you can imagine, we stay very, very close with this customer, and we're in the same posture on that together with our customer.

好的。所以我會——硬體正在部署。專案進度正常、節奏也符合預期，除了我們只是把規劃假設中的 2,500 萬美元推到明年第一季。你可能讀到、其他人也可能讀到的是——我認為我們正在與客戶合作建置基礎設施的工作，與你所讀到的內容之間有明顯區隔；基礎設施建置的進度之所以如此，是基於我們所說的原因。現在影響的是這部分的收入或營運預算，而不是資本預算，因為 MTA 顯然在目前情況下收入大幅下滑。然後（聽不清）發生的是政府流程，用以啟用並規劃收費（tolling）本身。那會在今年年底的最後階段發生，但基礎設施工作仍在持續，而那——而且我們——那就是我們的規劃假設。所有訊號與所有討論，如你所想像，我們與這位客戶保持非常、非常緊密的合作，我們與客戶在這件事上的立場與步調是一致的。

So does -- I guess, would that put potentially like a push on some of the recurring revenue associated with this if there's some issue with like a go-live so you get your deployment and then there could be like a delay in the -- in when stuff actually goes on?

所以——我想問，這是否可能會讓與此相關的一些經常性收入也被推遲？如果像是上線（go-live）出現一些問題，你完成部署後，實際啟用的時間點可能會延後？

Yes, it could. If we ultimately don't go live, then the maintenance part would not turn on, would be our planning assumption there. But I think there's a pretty high level of interest by all parties to see this project turn on.

是的，有可能。如果我們最終沒有上線，那維護（maintenance）那一部分就不會啟動，這會是我們在那裡的規劃假設。但我認為各方都有相當高的意願希望這個專案能夠啟動上線。

Yes. Okay. And then again, you probably went through this a little bit. But on the software backlog that you have, like, can you just talk me through how you're thinking about that in terms of whether it's 6-month or a year? Like what do you anticipate -- what do you modeling in, in terms of like companies being smaller and needing less licenses and stuff like that?

是的。好的。然後再一次，你們可能也稍微談過這個。但就你們的軟體積壓訂單（software backlog）而言，你能否帶我梳理一下你們怎麼看它的時間跨度——是 6 個月還是一年？你預期——你在模型裡是怎麼假設的，例如公司規模變小、需要更少授權之類的？

So well, there's a couple of different questions embedded there. So first -- but first of all, you have to go company by company. So really, all we're talking about in our comments where we see a meaningful headwind on the license activities at our Application Software business. We went company-by-company on the network side. The recurring nature, they'll be impacted, but doesn't have the license activity because they're all SaaS businesses there. So when you look at Application Software, it's really the combination of those companies there that are going to likely not have large, new customer perpetual deals happen in this environment.

所以，嗯，你那裡其實包含了幾個不同的問題。首先——但首先你必須逐家公司來看。所以我們在評論中所說、我們看到在 Application Software 業務的授權活動上有明顯逆風，指的是那一塊。我們在 Network 那邊是逐家公司檢視的。經常性收入的特性會受到影響，但不會有授權活動，因為那邊全部都是 SaaS 業務。所以當你看 Application Software 時，真正的情況是那裡那些公司的組合，在這種環境下很可能不會出現大型、全新客戶的永久授權交易。

The smaller projects, the add-on projects, the upgrade projects, the increased functionality, the -- how do you turn on -- do some SaaS conversions, right, during this process, during the current economic environment, the activity in the sales funnel suggests that's going to continue, but we're only 5 or 6 weeks into this situation, so we have to see how that continues. So that's on the license side.

較小的專案、加購（add-on）專案、升級專案、功能擴充、以及——在這個過程中你如何啟用——進行一些 SaaS 轉換，對吧，在目前的經濟環境下，銷售漏斗（sales funnel）的活動顯示這些應該會持續，但我們才進入這個情況 5 到 6 週，所以我們必須觀察它是否能持續。這是授權端的部分。

On the services side, the services work results from selling licenses. So there'll still be some of that. And then there's a fair amount of upgrades that happened. And actually, when -- times like this or actually a pretty decent time to upgrade systems because you have maybe less people in the office and less user activity, so the IT staff can do what they need to do to get to a new version. Now we have to see if it actually plays out. But even if it doesn't, even if that had slowed, the services teams work off a 6- to 12-month services backlog of implementation. They basically have 6 to 12 months to replenish the backlog from new sales activities.

在服務端，服務工作來自於授權銷售，所以仍然會有一些。然後也有相當多的升級在進行。實際上，像現在這種時期反而是升級系統的相當不錯時機，因為你可能辦公室裡的人比較少、使用者活動也較少，所以 IT 人員可以做他們需要做的事，把系統升到新版本。當然我們還得看是否真的會如此發展。但即便沒有，即便那也放緩了，服務團隊仍是依據 6 到 12 個月的導入服務積壓（services backlog）來工作。他們基本上有 6 到 12 個月的時間，透過新的銷售活動來補充這個積壓。

Perfect. So fair to say you're assuming that to be -- like essentially like a 0 in new big licensing and things like that for now?

完美。所以可以公平地說，你們目前的假設是——例如新的大型授權與這類事情基本上先當作 0？

Well, again, you've got to parse it out, right? It's very low large, new logos assumed in the planning horizon. There is going to be some new -- for the product add-ons. That's exactly right.

嗯，再次強調，你必須把它拆開來看，對吧？在規劃期間內，我們假設大型、全新客戶（new logos）非常少。但產品加購方面會有一些新的需求——沒錯，就是這樣。

Our next question comes from Alex Blanton of Clear Harbor Asset Management.

我們的下一個問題來自 Clear Harbor Asset Management 的 Alex Blanton。

Typically, during recessions, dominant companies like Roper gain market share -- a lot of market share in some cases, from weaker competitors. And it seems to me that, that would be true right now in space. Could you comment on where you would expect the greatest such effect at Roper? I mean gaining share from companies that get in trouble during this period?

通常在經濟衰退期間，像 Roper 這樣的龍頭公司會取得市占——在某些情況下會取得大量市占，來自較弱的競爭對手。而在我看來，這在目前的環境中也會成立。您能否評論一下，您預期 Roper 在哪些領域會出現最大的這種效應？我的意思是，在這段期間從陷入困境的公司那裡取得市占？

Alex, appreciate the question. No. It's a -- we agree with your sentiment. History would suggest that's the case. When you have the operational readiness that we have, when you have the balance sheet that we have, when you have the cash flow that we have, sort of [mouths those hearty] needs allows us to very quickly pivot to play offense or defense, and that's the posture that we're leaning, right? We also talked in our prepared remarks about our direct channel access. So we're talking across all of our businesses every day with our customers.

Alex，感謝你的提問。是的——我們同意你的看法。歷史經驗顯示確實如此。當你具備我們這樣的營運準備度、我們這樣的資產負債表、我們這樣的現金流時，這些（[mouths those hearty]）需求讓我們能非常快速地轉向，採取進攻或防守，而這正是我們目前傾向採取的姿態，對吧？我們也在事先準備的發言中談到我們的直接通路觸達能力。因此，我們每天都在所有業務中與客戶保持溝通。

Where the opportunities are, it's incrementally, and I don't -- I mean, it's in all the businesses. I don't want to sort of call out one business there where there's a disproportionate opportunity because it's a structural opportunity with our business model that we have across the 45 businesses. But we agree, there is times to fulfill need right now when our competitors cannot fulfill a product that garners you sort of an opportunity to capture and keep that share of momentum going on the backside of this thing. So we agree with the sentiment, and we're offensively leaning forward, but we've got to be -- do that in a prudent way, given the current situation we all face.

至於機會在哪裡，它是逐步出現的，而且我不——我的意思是，它存在於所有業務中。我不想特別點名某一個業務說那裡有不成比例的機會，因為這是我們商業模式在 45 個業務中普遍具備的結構性機會。但我們同意，當下確實有一些需求需要被滿足，而當競爭對手無法交付產品時，就會為你帶來某種機會去取得並維持市占，並在這件事過後延續那股動能。所以我們同意這個觀點，我們也在進攻性地向前傾，但在我們共同面對的當前情勢下，我們必須以審慎的方式來做。

Right. And you mentioned that you're keeping very close touch with your customers, so you can identify these opportunities when they arise.

了解。而且你提到你們與客戶保持非常密切的聯繫，因此可以在機會出現時加以辨識。

That's correct.

沒錯。

I have one more question on your -- on the acquisition outlook. You mentioned that there's a delay in implementing some of the sellers plans to sell the businesses, which is understandable. But could you characterize the backlog? You said it was a very full backlog or pipeline of acquisition opportunities. Could you expand on that a bit? Because you've got a lot of [fire power] there.

我還有一個關於你們——關於併購展望的問題。你提到賣方在執行一些出售企業的計畫上有所延遲，這可以理解。但你能否描述一下待辦量？你說那是一個非常充實的待辦量或併購機會管線。你能否再多談一點？因為你們手上有很多（[fire power]）資源。

Correct. There's always a lot of activity that happens in our pipeline. I've been here since 2011. For the first 6 or 7 years, it was my responsibility to manage the pipeline, in addition to my operating responsibilities. And so just speaking over the whole time I've been here, there's a lot of activity.

沒錯。我們的管線裡一直都有很多活動在進行。我自 2011 年就在這裡。前 6 到 7 年，除了營運職責之外，管理管線也是我的責任。所以就我在這裡的整段時間而言，活動量一直都很大。

What we're specifically commenting on earlier is there was very late-stage activity. Under exclusivity, most terms agreed, to most diligence done for a few deals that we just decided it was prudent to pause and take stock of the current situation. So there's a late-stage pipeline.

我們先前特別評論的是，有一些非常後期階段的活動。在排他性（exclusivity）之下，大多數條款已同意、盡職調查也大多完成的幾筆交易，我們只是決定暫停一下、審慎地停下來盤點目前情勢。因此，確實存在一個後期階段的管線。

Now the things right behind that, most -- every other process, sales process that was in the market has pulled for obvious reasons. And so we're going to have to lean into our knowledge of the existing sponsor relationships and relationships that we have to see if we can build funnel on a proprietary basis for the next couple of quarters. And only time will tell if we're going to be able to successfully do that. And then from that point, private equity business models need to return capital to their limiteds, and we expect that to continue once the new reality of the valuation regime, the leverage regime, all sort of land on us all.

至於緊接在那之後的項目，幾乎——市場上其他所有正在進行的流程、出售流程，都因為顯而易見的原因而撤回了。因此，接下來幾個季度，我們將必須更倚重我們對既有贊助方（sponsor）關係以及我們既有關係網的了解，看看能否以專案式（proprietary）的方式建立漏斗。能否成功做到，只有時間能證明。再往後，私募股權的商業模式需要向其有限合夥人（limiteds）返還資本，我們預期在估值體系、槓桿體系等新的現實逐步落地並影響到我們所有人之後，這種情況仍會持續。

Our next question comes from Robert McCarthy of Stephens.

我們的下一個問題來自 Stephens 的 Robert McCarthy。

Yes, just expanding on kind of the private equity or the acquisition environment. Obviously, a situation where, as Deane suggested, prices are coming down. But I mean, could you see a phenomenon here of -- as private equity has a lot of businesses that are probably highly impacted more than what their risk characteristics would have suggested, that you could provide the ATM on some decent deals where they could get an exit, so there could be a liquidity premium to getting something out, returning it to limiteds and you could still pick off some decent businesses at some reasonable valuations? Do you think there's a path forward for that? And maybe just expand more broadly about your acquisitions capacity and candor?

是的，我想延伸談談私募股權或併購環境。顯然，如 Deane 所說，價格正在下滑。但我的意思是，你是否可能看到這樣一種現象——由於私募股權手上有很多企業，受到的衝擊可能遠高於其風險特徵原本所暗示的程度，你們可以在一些不錯的交易上扮演「ATM」的角色，讓他們能夠退出，因此為了把資產變現、返還給有限合夥人，可能會出現一個流動性溢價，而你們仍能以合理估值挑到一些不錯的企業？你認為這有可行的路徑嗎？也請更廣泛地談談你們的併購能力與看法？

Yes. So on the capacity side, it's going to -- it's $2 billion to $3 billion right now very easily. We're going to be prudent in how we deploy that and always be very mindful of the current situation we're in.

是的。就能力面而言，目前很容易就能做到 20 億到 30 億美元。我們會審慎地部署這些資金，並且始終非常留意我們所處的當前情勢。

Relative to the first part of your question, I think it depends on the sponsor, right? If you talk to some of these very large, highly successful sponsors who have raised 8 to 15 funds and returned 3 to 5x, my guess is their limiteds are going to have a lot of patience with them as they work through this. So those assets and those portfolios, I think they wait a little longer.

至於你問題的第一部分，我認為要看贊助方而定，對吧？如果你去跟一些非常大型、非常成功的贊助方談，他們已募了 8 到 15 支基金，並且為其有限合夥人帶來 3 到 5 倍的回報，我猜他們的有限合夥人會很有耐心，讓他們度過這段時間。所以那些資產與投資組合，我認為會再多等一段時間。

On the other hand, there's scores of more middle-market sponsors that do not have that track record that probably exhibit the exact behavior that they're outlining. And so only time will tell, but it's our job to identify those opportunities as they come up.

另一方面，有大量更多的中型市場贊助方並沒有那樣的績效紀錄，他們很可能就會展現你所描述的那種行為。因此，結果如何只有時間能證明，但辨識這些機會並在出現時把握住，是我們的工作。

And then I guess in terms of thinking about the longer-term opportunity with CBORD and also TransCore, I mean obviously, episodically, companies have been talking about changing the regime for not only payments but also access, particularly given in light of the pandemic. I mean you're going to probably see a reconfiguration of security and access around motion as opposed to touch, just given the nature of sanitation and public hygiene. Do you think that creates a bit of an opportunity for you in each of those businesses? Or do you think it's a little bit too much of a nuance right now?

另外，我想就 CBORD 以及 TransCore 的長期機會來思考一下。我是說，顯然，企業一直在討論要改變制度，不僅是支付，也包括門禁，特別是在疫情背景之下。我想你們可能會看到安全與門禁的重新配置，從「觸碰」轉向「動作/感應」，考量到消毒與公共衛生的需求。你認為這會為你們在這兩項業務中帶來一些機會嗎？還是你覺得現在談這個有點太細微了？

I think it does over the medium term, right? So there's the CBORD. It's the work we've done with Apple for contactless sort of entry and security. I think also the way that in the near term, at least, universities are going to want to follow where the students are, and so we might be able to be assistants -- assist them in that. TransCore, we talked about the concept of handing cash and getting change back is likely going to end here at some point. And then also, RF Ideas is a business we all talk a whole lot about. We talked about in the quarter -- I mean, in the quarter, they had a very strong quarter. They're all about contactless reading for identity access, for instance, in hospitals and health systems. For secure print, right, so how do you actually go to a printer and get your materials off without having to touch it. So they enable those sorts of solutions from a product perspective.

我認為在中期確實會，對吧？以 CBORD 來說，是我們與 Apple 在非接觸式進出與安全方面所做的工作。我也認為，至少在短期內，大學會想要跟著學生所在的位置走，因此我們或許能成為他們的助手——協助他們做到這點。至於 TransCore，我們談過「交付現金並找零」這個概念，某個時間點很可能會結束。還有 RF Ideas，這也是我們經常談到的一項業務。我們在本季——我是說，在本季他們表現非常強勁。他們的核心是用於身分與門禁的非接觸式讀取，例如在醫院與醫療體系中。也用於安全列印，對吧？也就是你如何在不必觸碰的情況下，到印表機取走你的文件。因此，從產品角度來看，他們能夠提供這類解決方案。

That will end our question-and-answer session for this call. We would now like to turn the call back to Zack Moxcey for closing remarks.

本次電話會議的問答環節到此結束。現在我們把電話交回給 Zack Moxcey 作結語。

Thank you, everyone, for joining us today, and we look forward to speaking with you during our next earnings call.

謝謝各位今天參與，我們期待在下一次財報電話會議中再與各位交流。