The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst
: Maybe for the first one, if I can just ask for a bit more color on the order patterns you're seeing, both on the telco and the web-scale
side. I mean any color on the sequential order trends there? Because from the commentary of the Q2 guide at least, it does appear
like telco orders probably were a lot worse than you were expecting. But any more color there, in terms of the magnitude of the
sequential order trends between those 2 verticals that you're seeing? And I have a follow-up.
Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst
: Okay. Got it. And for my follow-up, if I can just clarify, Jim, your comments about the long-term growth guide prior quarter. I think
the previous guide was for fiscal '24 to '26 to be 6% to 8%. I didn't exactly -- it seemed like you were sort of reiterating that guide but
I didn't exactly capture what you're trying to imply in the updated long-term guide that you provided.
Question: David Vogt - UBS Investment Bank, Research Division - Analyst
: Maybe just digging back into backlog and orders. Maybe, Jim, can you help us understand where backlog exited the quarter? I think
last quarter, you mentioned it was roughly around $2.6 billion. And so what we're trying to figure out is what the orders look like
going forward, and how to kind of triangulate the growth rate in '25 in terms of an order trajectory. And I have a follow-up.
Question: David Vogt - UBS Investment Bank, Research Division - Analyst
: Great. And so maybe if I just extrapolate that comment in '24 into '25, maybe I'm doing the math wrong here but it would imply that
your order growth rate in '25 would have to be up somewhere like 35% to 40% relative to '24. Are we doing the math right? And if
that's the case, what does that imply for SP orders coming back next year? I know you didn't give a full year guide yet, it's early, but
just trying to kind of triangulate on how we get to those -- that 6% to 8% multiyear target that you just provided.
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