Arteris Inc (AIP) 2024 Q3 法說會逐字稿

Good afternoon, everyone and welcome to the Arteris third quarter, 2024 earnings call. Please note this call is being recorded and simultaneously webcasted all material and in the property and copyright of Arteris with all rights reserved for opening remarks and introductions.

大家下午好，歡迎參加 Arteris 2024 年第三季財報電話會議。請注意，本次電話會議正在錄音並同時進行網路直播，所有資料均屬於 Arteris 的財產和版權，保留開場白和介紹的所有權利。

I will now turn the call over to Erica Mannion of Sapphire Investor Relations. Please go ahead.

我現在將把電話轉給藍寶石投資者關係部的 Erica Mannion。請繼續。

Thank you and good afternoon. With me today from Arteris are Charles Janac, Chief Executive Officer and Nick Hawkins, Chief Financial Officer. Charlie will begin with a brief review of the business results for the third quarter ended, September 30, 2024. Nick will review the financial results for the third quarter followed by the company's outlook for the fourth quarter and full year of 2024. We will then open the call for questions.

謝謝你，下午好。今天與我一起來自 Arteris 的是執行長 Charles Janac 和財務長 Nick Hawkins。Charlie 首先將簡要回顧截至 2024 年 9 月 30 日的第三季的業務表現。Nick 將回顧第三季的財務業績，然後是公司第四季和 2024 年全年的展望。然後我們將開始提問。

Before we begin, I'd like to remind you that management will make statements during this call that are forward-looking statements within the meaning of federal securities laws.

在我們開始之前，我想提醒您，管理層將在本次電話會議中發表聯邦證券法含義內的前瞻性聲明。

These statements involve material risks and uncertainties that could cause actual results or events to differ materially from those anticipated and you should not place undue reliance on forward-looking statements.

這些陳述涉及重大風險和不確定性，可能導致實際結果或事件與預期有重大差異，而您不應過度依賴前瞻性陳述。

Additional information regarding these risks uncertainties and factors that could cause results to differ appear in the press release are tariffs issued today and in the documents and reports filed by our terrorists from time to time with the securities and exchange commission.

有關這些風險、不確定性和可能導致結果不同的因素的更多資​​訊出現在新聞稿中，包括今天發布的關稅以及恐怖分子不時向證券交易委員會提交的文件和報告中。

Please note during this call, we will cite certain non-GAAP measures including non-GAAP loss, non-GAAP, net loss per share and free cash flow which are not measures prepared in accordance with US GAAP.

請注意，在本次電話會議中，我們將引用某些非 GAAP 衡量標準，包括非 GAAP 虧損、非 GAAP 每股淨虧損和自由現金流，這些衡量標準並非根據美國 GAAP 制定。

The non-GAAP measures are presented as we believe they provide investors with the means of evaluating and understanding how the company's management evaluates the company's operating performance.

提出非公認會計原則措施是因為我們相信它們為投資者提供了評估和理解公司管理階層如何評估公司經營績效的方法。

These non-GAAP measures should not be considered in isolation from as substitutes for or superior to financial measures prepared in accordance with US GAAP, a reconciliation of these non-GAAP measures to the nearest GAAP measure can be found in the press release for the quarter ended September 30th 2024.

這些非公認會計原則措施不應孤立地視為替代或優於根據美國公認會計原則編制的財務措施，這些非公認會計原則措施與最接近的公認會計原則措施的調節可以在本季度的新聞稿中找到截至 2024 年 9 月 30 日。

In addition, for a definition of certain of the key performance indicators used in this presentation such as annual contract value, confirmed, design starts active customers and remaining performance obligations. Please see the press release for the quarter ended September 30th, 2024 listeners who do not have a copy of the press release for the quarter ended September 30th, 2024 may obtain a copy by visiting the investor relations section of the company's website.

此外，對於本示範中使用的某些關鍵績效指標的定義，例如年度合約價值、已確認、設計啟動、活躍客戶和剩餘履約義務。請參閱截至 2024 年 9 月 30 日的季度新聞稿。

In addition, management will be referring to the Q3 2024 earnings presentation, which can be found in the investor relations section of the company's website under the events and presentations tab.

此外，管理層將參考 2024 年第三季的收益演示，該演示可以在公司網站的投資者關係部分的「活動和演示」標籤下找到。

Now I will turn the call over to Charlie.

現在我將把電話轉給查理。

Thank you Erica and thanks to everyone for joining us on our call today.

謝謝艾麗卡，也謝謝大家今天加入我們的電話會議。

In the third quarter of 2024, we achieved a record annual contract value plus royalties of $60.5 million.

2024 年第三季度，我們實現了創紀錄的年度合約價值加特許權使用費 6,050 萬美元。

We also delivered positive free cash flow of $1.1 million making it our third consecutive quarter of positive free cash flow.

我們還實現了 110 萬美元的正自由現金流，這使其成為我們連續第三個季度實現正自由現金流。

Our success during the quarter was in particular fueled by demand for AI driven enterprise computing and automotive SoC solutions, along with growing momentum in our other verticals. Business in the third quarter was primarily driven by increasing adoption of our technology by our current customer base. As an example, a top five global technology company increased their deployment of our various products to enable development of their high end, AI chiplets, and SoCs. This expanded engagement provides our customers with a broader access to our system IT. We expect to see designs from this customer used in a wide range of products such as hyperscale cloud data center applications as well as high volume consumer electronics.

我們在本季的成功尤其得益於對人工智慧驅動的企業運算和汽車 SoC 解決方案的需求，以及我們其他垂直領域的成長勢頭。第三季的業務主要是由於我們目前的客戶群越來越多地採用我們的技術而推動的。例如，一家全球排名前五的科技公司增加了我們各種產品的部署，以支援其高階、AI 小晶片和 SoC 的開發。這種擴大的參與使我們的客戶能夠更廣泛地存取我們的系統 IT。我們期望看到該客戶的設計用於各種產品，例如超大規模雲端資料中心應用程式以及大批量消費性電子產品。

Similarly, NIO, a pioneer and a leading company in the global smart electric vehicle market deployed our Arteris technology for its next generation of ADAS and LiDAR SoCs using our physically aware NoC technology to reduce silicon implementation risks and schedule.

同樣，蔚來作為全球智慧電動車市場的先驅和領先公司，利用我們的物理感知 NoC 技術，為其下一代 ADAS 和 LiDAR SoC 部署了我們的 Arteris 技術，以降低晶片實施風險和進度。

This is yet another example of our continued success in accelerating automotive electrification and autonomous driving with over nine carmakers already using our terrace directly as the gold standard for functionally safe high end automotive computing.

這是我們在加速汽車電氣化和自動駕駛方面不斷取得成功的又一個例子，超過九家汽車製造商已經直接使用我們的平台作為功能安全高端汽車計算的黃金標準。

During the quarter, we also announced the adoption of our terra NoC IP and SoC integration automation software products by tier four for intelligent vehicle SoC then sting for next generation of chiplet based AI solutions and very silicon for HPC data center SoCs. Majority of the new designs in the third quarter came from enterprise computing followed by automotive consumer electronics and communications verticals.

在本季度，我們也宣布採用第四層智慧汽車 SoC 的 terra NoC IP 和 SoC 整合自動化軟體產品，然後為下一代基於小晶片的 AI 解決方案和 HPC 資料中心 SoC 的矽晶片提供支援。第三季的大部分新設計來自企業運算，其次是汽車消費電子和通訊垂直領域。

The demand for multiple type of AI chips and chiplets from data centers to endpoint devices including the smart edge continues to be a key factor in our success this year. Nearly half of our license deals in dollar terms in the year have enabled AI SoC development more than doubling year over year.

從資料中心到包括智慧邊緣在內的端點設備對多種類型人工智慧晶片和小晶片的需求仍然是我們今年成功的關鍵因素。今年以美元計算的授權交易中近一半使 AI SoC 開發量年增了一倍以上。

We continue to work with market leading customers to further advance our technology accelerating the broad shift towards smarter electronics. Accordingly, in October, we announced the addition of NoC tiling supported by mesh and innovation in our IP products to accelerate the design of AI SoCs by providing scalable performance power reduction and increased design reuse . By organizing network interface units or N I into modular repeatable blocks, both FlexNoC and Ncore IP users can replicate verified functional modules into larger AI compute clusters.

我們繼續與市場領先的客戶合作，進一步推進我們的技術，加速向智慧電子產品的廣泛轉變。因此，10 月份，我們宣佈在 IP 產品中添加由網格和創新支援的 NoC 平鋪，透過提供可擴展的效能功耗降低和增加設計重用來加速 AI SoC 的設計。透過將網路介面單元或 N I 組織成模組化可重複區塊，FlexNoC 和 Ncore IP 使用者都可以將經過驗證的功能模組複製到更大的 AI 計算集群中。

These support sophisticated workloads for vision, machine learning, deep learning, natural language processing including large language models and generic AI both for training and inference applications.

這些支援視覺、機器學習、深度學習、自然語言處理的複雜工作負載，包括用於訓練和推理應用的大型語言模型和通用人工智慧。

Earlier this year, we announced expanded support for Armv9 Architecture CPUs with our terrace Ncore IP extensions for joint customers.

今年早些時候，我們宣布透過面向聯合客戶的平台 Ncore IP 擴充擴大對 Armv9 架構 CPU 的支援。

Additionally, we announced a partnership with Andes Technologies to accelerate RISC-V associate adoption and are pleased to have been named by them as partner of the year.

此外，我們宣布與 Andes Technologies 建立合作夥伴關係，以加速 RISC-V 員工的採用，並很高興被他們評為年度合作夥伴。

We recently expanded our collaboration with SiFive announcing pre verified RISC-V solutions for data centers with our Ncore product, providing faster, lower risk SoC design for AI workloads and power efficiency requirements.

我們最近擴大了與 SiFive 的合作，宣布利用我們的 Ncore 產品為資料中心提供預先驗證的 RISC-V 解決方案，為 AI 工作負載和能源效率要求提供更快、風險更低的 SoC 設計。

Moreover, Arteris joined the Synopsis arc access program. The aim is to provide interoperable and optimized solution for mutual customers using Synopsis processors and Arteris NoC. Our strategy of supporting mid and high end SoCs and expanding our footprint within large customers appears to be paying off. In dollar terms, the majority of our license deals in the quarter were with the TOP 10 technology companies as they create ever more sophisticated electronics that increasingly need AI enabled high performance and energy efficient SoCs. To further expand our footprint at large customers, we have broadened our focus to include the support of micro controller chips, many of which are now complex enough to benefit from our system IP technology.

此外，Arteris 還加入了 Synopsis arc 存取計劃。目的是為使用 Synopsis 處理器和 Arteris NoC 的共同客戶提供可互通和最佳化的解決方案。我們支持中高端 SoC 並擴大我們在大客戶中的覆蓋範圍的策略似乎正在取得回報。以美元計算，本季我們的大部分授權交易都是與排名前 10 的科技公司簽訂的，因為他們製造出越來越複雜的電子產品，越來越需要人工智慧支援的高效能和節能 SoC。為了進一步擴大我們在大客戶中的覆蓋範圍，我們擴大了關注範圍，將微控制器晶片的支援納入其中，其中許多晶片現在已經足夠複雜，可以從我們的系統 IP 技術中受益。

These designs are numerous and are often produced in large volumes. As micro controllers are used to control the operation of electronic systems such as industrial machinery, automotive functions and IOT devices, they require low latency and low power consumption. To address these requirements, we have achieved the ability to create data packets with zero latency penalty for these types of devices.

這些設計數量眾多，通常大批量生產。由於微控制器用於控制工業機械、汽車功能和物聯網設備等電子系統的運行，因此需要低延遲和低功耗。為了滿足這些要求，我們已經能夠為這些類型的裝置建立零延遲損失的資料包。

This strategy aims to expand customer usage of Arteris technology from complex SoCs to the mid to operate microcontroller product lines and demonstrates the technological flexibility and scalability of our products.

該策略旨在將 Arteris 技術的客戶使用範圍從複雜的 SoC 擴展到中型微控制器產品線，並展示我們產品的技術靈活性和可擴展性。

We are also aiming to address an even broader set of designs in our large customers.

我們也致力於為我們的大客戶提供更廣泛的設計。

We believe the scale and scope of our long term opportunity remains robust, supported by our current products and strong product pipeline of new system IP technologies, as well as growing relationships with some of the largest and most advanced electronics companies in the world.

我們相信，在我們目前的產品和新系統 IP 技術的強大產品線以及與世界上一些最大、最先進的電子公司不斷發展的關係的支持下，我們長期機會的規模和範圍仍然強勁。

Our customers continue to innovate in exciting growth areas such as generic AI and autonomous driving using our various technologies.

我們的客戶利用我們的各種技術，繼續在通用人工智慧和自動駕駛等令人興奮的成長領域進行創新。

Before I hand the call over to Nick, we're excited to have two seasoned individuals join our leadership team.

在我將電話轉交給尼克之前，我們很高興有兩位經驗豐富的人士加入我們的領導團隊。

We recently announced that Joachim Kunkel joined our board of directors, having most recently served as a general manager of the IP Business Unit at Synopsis where he grew revenue from nearly zero to over $1.5 billion.

我們最近宣布 Joachim Kunkel 加入我們的董事會，他最近擔任 Synopsis IP 業務部門的總經理，他的收入從接近零成長到超過 15 億美元。

In addition, Ken Way joined as our terrace EVP of sales leading our global and application engineering force. Bringing with him a wealth of experience and industry knowledge gained from our chronics dialings free scale and others.

此外，Ken Way 加入我們，擔任銷售執行副總裁，領導我們的全球和應用工程團隊。他帶來了從我們的慢性撥號自由規模和其他方面獲得的豐富經驗和行業知識。

With that. I'll turn over to Nick to discuss our financial results in more detail.

就這樣。我將請尼克更詳細地討論我們的財務表現。

Thank you, Charlie and good afternoon everyone.

謝謝你，查理，大家下午好。

As I review our third quarter results today, please note that I'll be referring to GAAP as well as non-GAAP metrics.

當我今天回顧第三季業績時，請注意，我將指的是 GAAP 和非 GAAP 指標。

A reconciliation of GAAP to non-GAAP financials is included in today's earnings release, which is available on our website.

今天的收益報告中包含了 GAAP 與非 GAAP 財務數據的調整表，可在我們的網站上查看。

Also as a reminder, I'll be referring to the 3Q 2024 earnings presentation which can be found in the investor relations section of the company's website under the events and presentations tab.

另外提醒一下，我將提到 2024 年第三季的收益演示，該演示可以在公司網站的投資者關係部分的「活動和演示」標籤下找到。

Turn to slide four of the presentation. Total revenue for the third quarter was $14.7 million up 11% year over year, and at the midpoint of our guidance range. At the end of the third quarter, annual contract value or ACV plus royalties was $60.5 million, at the midpoint of our guidance range and a record high for the company. Remaining performance obligations or RPO at the end of the third quarter were $78.4 million representing a 25% year over year increase, also going to the highest level we have ever reported.

前往簡報的第四張投影片。第三季總營收為 1,470 萬美元，年增 11%，處於我們指導範圍的中點。第三季末，年度合約價值或 ACV 加上特許權使用費為 6,050 萬美元，處於我們指導範圍的中點，也是公司的歷史新高。第三季末的剩餘履約義務或 RPO 為 7,840 萬美元，年增 25%，也達到我們報告過的最高水準。

GAAP gross profit in the quarter was $13.3 million representing a gross margin of 90% non-GAAP gross profit in the quarter was $13.5 million representing a gross margin of 92%.

本季 GAAP 毛利為 1,330 萬美元，毛利率為 90%；非 GAAP 毛利為 1,350 萬美元，毛利率為 92%。

Now turn to slide five. Total GAAP operating expense for the third quarter was $21.2 million. Representing a 4% year over year increase, non-GAAP operating expense in the quarter was $16.8 million flat both sequentially and year over year.

現在轉到第五張投影片。第三季 GAAP 營運費用總額為 2,120 萬美元。本季非 GAAP 營運費用為 1,680 萬美元，較去年同期成長 4%，較上季和年比持平。

This reflects the team's continued focus on prudent management of our operating expenses. As we look ahead, we will continue to limit spending to strategically critical areas while investing in profitable revenue growth.

這反映了團隊繼續專注於謹慎管理我們的營運費用。展望未來，我們將繼續限制策略關鍵領域的支出，同時投資於獲利性收入成長。

GAAP operating loss for the third quarter was $7.9 million compared to a loss of $8.5 million in the prior year period and $7.4 million in the second quarter. Non-GAAP operating loss was $3.3 million, which is better than the top end of our guidance. This represents a $1.2 million improvement compared to the prior year period and a slight improvement sequentially. Net loss in the quarter was $7.7 million or diluted net loss per share was $0.20.

第三季 GAAP 營運虧損為 790 萬美元，而去年同期虧損 850 萬美元，第二季虧損 740 萬美元。非 GAAP 營運虧損為 330 萬美元，優於我們指導的上限。這意味著與去年同期相比增加了 120 萬美元，並且比去年同期略有改善。本季淨虧損為 770 萬美元，攤薄後每股淨虧損 0.20 美元。

Non-GAAP net loss in the quarter was $3.1 million or diluted net loss per share of $0.08, based on approximately $39.3 million weighted average diluted shares outstanding.

根據約 3,930 萬美元的加權平均稀釋後流通股計算，本季非 GAAP 淨虧損為 310 萬美元，攤薄後每股淨虧損為 0.08 美元。

Moving to slide 6 and turn to the balance sheet and cash flow.

前往投影片 6，轉向資產負債表和現金流量。

We ended the quarter with $54.5 million in cash, cash equivalents and investments. Free cash flow, which includes capital expenditure was positive $1.1 million. This was above the midpoint of our guidance range and in line with the company's goal to be free cash flow positive for the full year of 2024.

本季結束時，我們的現金、現金等價物和投資為 5,450 萬美元。包括資本支出在內的自由現金流為正 110 萬美元。這高於我們指引範圍的中點，符合公司 2024 年全年自由現金流為正的目標。

I would now like to turn to our outlook for the fourth quarter and for the full year 2024 and refer now to slide 7. For the fourth quarter of 2024, we expect ACV plus royalties of $63 million to $67 million, revenue of $14.7 million to $15.7 million, with non-GAAP operating loss of $5 million to $4 million, and non-GAAP or free cash flow of negative $0.9 million to positive $1.1 million.

我現在想談談我們對第四季和 2024 年全年的展望，現在請參閱投影片 7。對於2024 年第四季度，我們預計ACV 加上特許權使用費為6,300 萬至6,700 萬美元，營收為1,470 萬美元至1,570 萬美元，非GAAP 營運虧損為500 萬至400 萬美元，非GAAP 或自由現金流為負90 萬美元到 110 萬美元。

For the full year 2024, our guidance is as follows. ACV plus royalties to exit 2024 at $63 million to $67 million up over 16% year over year at the midpoint. Midpoint unchanged from the prior guidance. Revenue of $56.9 million to $57.9 million, increasing the midpoint of our guidance by $0.4 million. Non-GAAP operating loss of between $17.1 million to $16.1 million, improving the midpoint of our guidance by $3.4 million, and non-GAAP free cash flow of positive $0.7 million to positive $2.7 million, which is $1.6 million higher than the prior guidance at the midpoint and represents an improvement of $18.9 million year over year.

對於 2024 年全年，我們的指導如下。到 2024 年，ACV 加上特許權使用費將達到 6,300 萬至 6,700 萬美元，較去年同期成長超過 16%。中點與先前的指導值持平。收入從 5,690 萬美元增至 5,790 萬美元，使我們的指導中位數增加了 40 萬美元。非GAAP 營運虧損在1,710 萬美元至1,610 萬美元之間，使我們指導的中點提高了340 萬美元，非GAAP 自由現金流為正70 萬美元至正270 萬美元，比之前的指導高出160萬美元。

We are very encouraged by our top line trajectory and by our effective cost management in the first three quarters of the year, that resulted in strong performance for the third quarter and improved guidance for revenue, operating income, and free cash flow for the full year.

我們對今年前三個季度的營收軌跡和有效的成本管理感到非常鼓舞，這導致了第三季的強勁業績，並改善了全年收入、營業收入和自由現金流的指導。

We are particularly excited about achieving positive free cash flow for three consecutive quarters.

我們對連續三個季度實現正自由現金流感到特別興奮。

With that, I will turn the call over to the operator and open the deck for questions. Operator.

這樣，我會將電話轉給接線員並開放提問台。操作員。

Thank you. Ladies and gentlemen, we are now, we will now begin the question and answer session.

謝謝。女士們先生們，我們現在，我們現在開始問答環節。

(Operator Instructions)

（操作員說明）

Joshua Buchalter from TD Cowen.

TD Cowen 的 Joshua Buchalter。

Hey guys, thank you for taking my questions and congrats on\ solid results in a choppy backdrop.

嘿夥計們，感謝您回答我的問題，並祝賀您在動蕩的背景下取得了堅實的成果。

To start and speaking on the of the choppy backdrop. I mean, this has been an interesting earnings season with China Auto is positive and the rest of the world, we, maybe you could spend a couple minutes talking about, you know, in that, in an environment where China continues to take share in the global auto market, and is that a net positive or is that a headwind for you guys? Because you know, obviously one of your lead customers mobilize, had been losing share in that market. But also there's a lot of local vendors that are also building up their semiconductor portfolios where you have partnered. So I'd just be curious to hear your view on that backdrop and the impacts your business. Thank you.

首先在波濤洶湧的背景下講話。我的意思是，這是一個有趣的財報季節，中國汽車公司是積極的，而世界其他地區，我們，也許你可以花幾分鐘談論，你知道，在中國繼續佔據份額的環境中全球汽車市場，這對你們來說是正面的還是不利的？因為你知道，顯然你的主要客戶之一一直在失去該市場的份額。但也有很多本地供應商也在與您合作建立他們的半導體產品組合。因此，我很想聽聽您對這一背景及其對您業務的影響的看法。謝謝。

So, yeah, I mean this, so this discussion, it's kind of difficult to to get ahead of time, right? And so we, we have, our strategy has been to be in as many projects as we can capture, and so we are in startups, we're in automotive car manufacturers, we're in tier one, and so, regardless of, of market share shifts, Arteris should benefit. But you know, we, we do have a strong presence in the, in the China automotive market. I think NIO was kind enough to allow us to announce that they are using us for some of their, some of their automotive SoC projects, right? And there's, there's a number of others, and, and so, you know, from our, from the Arteris perspective, it doesn't make a whole lot of difference. However, you know, the Chinese have put a huge amount of effort in their electric vehicles there. Very nice vehicles we've been in a number of them. But because of the, the tensions, you know, the the rest of the world is going to probably throw up some protective barriers, right? And so I don't know how much the market share is really going to is going to shift except that, you know, the electric car inside China is going to be the the, you know, eventually the predominant technology.

所以，是的，我的意思是這個，所以這個討論，很難提前進行，對吧？所以我們，我們，我們的策略是參與盡可能多的項目，所以我們在初創公司，我們在汽車製造商，我們在第一梯隊，所以，無論，隨著市場份額的變化，Arteris 應該會受益。但你知道，我們在中國汽車市場確實擁有強大的影響力。我認為 NIO 非常友善地允許我們宣布他們正在使用我們來完成他們的一些汽車 SoC 項目，對嗎？還有，還有很多其他的，所以，你知道，從我們、從 Arteris 的角度來看，這並沒有多大區別。然而，你知道，中國人在那裡的電動車上投入了大量的精力。非常好的車輛我們已經乘坐過其中的許多。但由於緊張局勢，你知道，世界其他地方可能會設置一些保護性障礙，對嗎？所以我不知道市場份額到底會發生多大的變化，除了中國的電動車最終將成為主導技術。

Can I just add a little bit of color to Charlie's excellent comments?

我可以為查理的精彩評論添加一點色彩嗎？

Josh, there are, I mean, as you rightly point out, we have a very small number of, of Chinese auto OEMs that we can actually we're entitled to use their, their names. But you recognize most of the names that we, we, we do have if we are able to able to tell you some of the ones that we can tell you that are in that that area that that Chinese auto area that are public include Black Sesame, which I'm sure, you know, Horizon Semi Drive, those are all very powerful vendors in that, in that space. But there are many others we can't mention. Unfortunately, on the subject of mobile excellent question Mobil is obviously facing a few headwinds and, and and also is, is facing some headwinds specifically in China, but Mobile is still very strong. It's, it's one of the strongest in the market. They have an excellent set of, of products. There, there is, there has definitely been some headwind to our, our royalties as you've seen and we've talked about in previous calls, solely derived from Mobile Iwe shipments in the 1st and 2nd quarters. To an extent that was, started to be remedied in the third quarter. But the, the whole impact of, of short, let's call it short, royalties from mobilized versus our previous expectation, has a less than 1% impact on revenue for the whole year. So it's not as dramatic as you might think.

喬什，我的意思是，正如你正確指出的那樣，我們有極少數的中國汽車原始設備製造商，我們實際上有權使用他們的名字。但是，如果我們能夠告訴您一些我們可以告訴您的名字，那麼您認識我們，我們，我們確實擁有的大多數名字，這些名字都在那個地區，即中國公開的汽車領域包括黑芝麻，我確信， Horizo​​n Semi Drive，這些都是該領域非常強大的供應商。但還有很多其他的我們不能一一提及。不幸的是，在行動優秀問題上，美孚顯然面臨一些阻力，現在也面臨一些阻力，特別是在中國，但移動仍然非常強大。它是市場上最強大的之一。他們擁有一套優秀的產品。正如您所看到的，我們的特許權使用費肯定存在一些阻力，我們在先前的電話會議中也談到了這些阻力，這些阻力完全來自第一季和第二季的行動 Iwe 出貨量。在某種程度上，這種情況在第三季開始得到糾正。但是，總而言之，我們就這麼稱呼它吧，調動的特許權使用費與我們之前的預期相比，對全年收入的影響不到 1%。所以事情並不像你想像的那麼戲劇化。

Yeah.

是的。

And, and, you know, in terms of, if I'm, if I may add, in terms of mobilize is not going anywhere, they are designed into a bunch of you know, very impressive vehicles and, you know, they are going to continue to be the leader. Despite, you know, short term headwinds or those kinds of things, we're, we believe we're strong believers that mobilize is going to continue to do well in this, in this market because of their, their superior software technology.

而且，而且，你知道，就動員而言，它們不會去任何地方，它們被設計成一堆你知道的、非常令人印象深刻的車輛，而且，你知道，它們是將繼續擔任領導者。儘管存在短期阻力或諸如此類的事情，但我們堅信，由於他們卓越的軟體技術，mobility 將繼續在這個市場中表現出色。

No, thank you both for all the color there to follow up and move away from the auto space. I mean, it was, it was great to see that enterprise computing design was sort of the, the leading contributor this quarter. Any more details you can give us on sort of the contribution today and, and, and maybe what that funnel can look like over the next year or so as you diversify the revenue base. Thank you.

不，謝謝你們所有的顏色跟進並遠離汽車空間。我的意思是，很高興看到企業運算設計是本季的主要貢獻者。您可以向我們提供有關今天的貢獻的更多詳細信息，並且，當您實現收入基礎多元化時，也許明年左右該渠道會是什麼樣子。謝謝。

Yeah, I mean, you know, the, the the business continues to to be strong. We've as you said, it's a choppy market with with us having to be be nimble and and responsive to various developments. However, one of the things that we were talking about on the earnings call is we are making a move also into the microcontroller market. Micro controllers have now become sophisticated enough that at least the mid range to upper range of the of the of the micro controller market can benefit from from our system IP technology. So that opens up an additional segment. So we're very excited about that and we're also excited about our strong product pipeline for for next year. So we're, we continue to be prudent but optimistic.

是的，我的意思是，你知道，業務持續強勁。正如您所說，這是一個動盪的市場，我們必須靈活應對各種發展。然而，我們在財報電話會議上討論的一件事是我們也正在進入微控制器市場。微控制器現在已經變得足夠複雜，至少微控制器市場的中高階可以從我們的系統 IP 技術中受益。這樣就開闢了一個額外的部分。因此，我們對此感到非常興奮，也對明年強大的產品線感到興奮。所以我們繼續保持謹慎但樂觀的態度。

Yeah, one thing I would just add to that Charlie is is that as you can actually see Josh from the the investor deck that's, that's on our website. Now, the enterprise computing actually still remains slightly our biggest revenue contributor slightly slightly larger than automotive. It's in the low 30% total of, of revenue and it's growing quite nicely. A lot of that's driven out of the sort of the enterprise space, sorry, the, the AI element of the enterprise space.

是的，我要向查理補充的一件事是，你實際上可以從我們網站上的投資者平台上看到喬許。現在，企業運算實際上仍然是我們最大的收入貢獻者，略大於汽車。它只佔總收入的 30%，而且成長得相當不錯。其中許多都是從企業領域中剔除出來的，抱歉，企業領域的人工智慧元素。

And a if you look at AI ML as a, as its own said sector, I can't call it a vertical because it's really horizontal. That actually contributes to about 40% of total revenue, but that goes across all our verticals as you probably know. So some some really interesting dynamics going on there.

如果你把 AI ML 看作一個它自己所說的部門，我不能稱它為垂直領域，因為它實際上是水平的。這實際上約佔總收入的 40%，但正如您可能知道的那樣，這涉及我們所有的垂直領域。那裡正在發生一些非常有趣的動態。

Thank you both. Appreciate it.

謝謝你們倆。欣賞它。

Kevin Garrigan from Rosenblatt Securities Inc.

羅森布拉特證券公司的凱文‧加里根 (Kevin Garrigan)

Yeah. Hey Charlie Nick, good afternoon and let me echo back and grab some solid results.

是的。嘿查理尼克，下午好，讓我迴聲並獲得一些可靠的結果。

Going off of Josh's question on the Chinese auto market. So I guess a different way to kind of ask the question. Are you seeing design activity in the Chinese EV market increasing at a faster clip versus other parts of the world? And I think you guys had mentioned the average time from waisting to production for automotive is about 2.5 to 3 years. Are you seeing these Chinese customers looking to accelerate that time line?

繞過喬希關於中國汽車市場的問題。所以我想用不同的方式來問這個問題。您是否認為中國電動車市場的設計活動比世界其他地區成長得更快？我想你們已經提到了汽車從腰部到生產的平均時間約為 2.5 至 3 年。您是否看到這些中國客戶希望加快這一進程？

Yes. I mean, We're seeing design activity throughout the world, right? I mean, people you know, precisely as you said, the the design cycles for automotive chips are long, and so, right now, people are really building chips for the 2030 automotive model year, right, and so people typically try to design their way out of recessions, and so even, even when there's a shipment volume impact the impact on the design activity from our perspective, at least, doesn't seem to be great and certainly the Chinese design activities are robust, but there's also, you know, number of designs that are being done in the US and in Europe.

是的。我的意思是，我們看到世界各地都有設計活動，對吧？我的意思是，正如您所說，汽車晶片的設計週期很長，因此，現在人們實際上正在為 2030 年汽車車型年構建晶片，對吧，因此人們通常會嘗試設計自己的晶片擺脫經濟衰退，因此，即使出貨量影響了設計活動，至少從我們的角度來看，影響似乎並不大，而且中國的設計活動當然很強勁，但也有，你眾所周知，美國和歐洲正在進行的設計數量。

Okay. Got it. That makes sense, and then in the in the micro controller market, do the licensing deals that in this market, do they have the same ASPs as those in, in complex? SoCs

好的。知道了。這是有道理的，然後在微控制器市場中，在這個市場上的授權交易是否具有與複雜的相同的 ASP？SoC

I was afraid you were going to have that. So the answer is no, the ASPs are lower typically. But the royalty volumes are very, very high and the designs are numerous. So our strategy in the microcontroller market is really to engage with the largest microcontroller suppliers and and essentially not just capture one design but to capture an entire generation of microcontrollers, which is typically designed together. So that would essentially improve the the account yield. Because as you, as your question implies, if you focus on one or two micro controller projects. The ASP will, will be lower than what we're seeing in the, in the in the SoC market.

我擔心你會得到那個。所以答案是否定的，平均售價通常較低。但專利費非常非常高，而且設計也很多。因此，我們在微控制器市場的策略實際上是與最大的微控制器供應商合作，並且本質上不僅僅是捕捉一種設計，而是捕捉通常一起設計的整代微控制器。因此，這將從根本上提高帳戶收益率。因為正如您所言，正如您的問題所暗示的那樣，如果您專注於一兩個微控制器專案。ASP 將低於我們在 SoC 市場中看到的價格。

But if you bundle everything together, then essentially, you know, things will go to the right.

但如果你把所有東西都綁在一起，那麼基本上，你知道，事情就會往好的方向發展。

Yes. Okay. Yeah, that, that makes sense, and then just last one, if I could and congrats on the announcement of, of the NOC tiling, how is kind of customer feedback been for this product?

是的。好的。是的，這是有道理的，然後是最後一個，如果我可以的話，祝賀 NOC 平舖的宣布，該產品的客戶反饋如何？

Well, it's just coming, that particular product is just coming out. People have been asking for that for a long time. So we, we're finally started or are about to commence the deliveries, but we have a significant number of customers waiting for it because what it does is that the AI sections are very complicated and so what, what the customers want to do is they want to design a certain section of get it verified and then replicate across the chip to basically build larger clusters out of these out of these tiles if you will. That's why it's called tiling, and so, you know, so this is built at the request of our, of our AI customers and we think that the reception is going to be very good. But we've, you know, we've had lots of requests for it, but the orders and the revenue impact will probably not start until next year.

嗯，它才剛剛到來，那個特定的產品才剛剛問世。人們長期以來一直在要求這一點。所以我們，我們終於開始或即將開始交付，但是我們有大量客戶在等待，因為它的作用是人工智慧部分非常複雜，所以客戶想要做的是他們想要設計某個部分並對其進行驗證，然後在整個晶片上進行複製，以基本上從這些區塊中建立更大的叢集（如果您願意的話）。這就是為什麼它被稱為平鋪，所以，你知道，這是應我們的人工智慧客戶的要求而建造的，我們認為反響將會非常好。但我們收到了很多要求，但訂單和收入影響可能要到明年才會開始。

Hey, Kevin, this is Nick. Just, just a little bit of extra color. I don't want to interrupt Charlie midstream, but the going back to the MCU's question, it is, it is definitely a, a new incremental sort of product area for us to an extent having said that we have had some history in MCUs in the past, but I can't name the customer unfortunately, but it's a very large US semi top semi company, and the the volumes that we had this is actually for a Bluetooth application were very, very substantial, and so the world is also out of that were very substantial. So just to give you an understand that we have actually visited this space before, we're just emphasizing it much more now.

嘿，凱文，這是尼克。只是，只是一點額外的顏色。我不想打斷查理，但回到 MCU 的問題，這對我們來說絕對是一個新的增量產品領域，在某種程度上我們已經在 MCU 領域有了一些歷史了。 ，我無法說出客戶的名字，但它是一家非常大的美國半頂級半公司，我們的藍牙應用程式數量實際上非常非常大，所以世界也其中非常重要。因此，為了讓您了解我們之前確實訪問過這個空間，我們現在只是更加強調它。

Okay, perfect. I appreciate the color guys. Thank you.

好的，完美。我很欣賞那些顏色的傢伙。謝謝。

(Operator Instructions)

（操作員說明）

Gus Richard from Northland Securities Inc.

理查德 (Gus Richard)，來自北國證券公司 (Northland Securities Inc.)

Yes. Thanks for letting me ask some questions and let me add my congratulations on the quarter. The cloud service providers are designing their own A sixes quite a bit of data suggesting that those are in flight and starting to ramp, and I'm just wondering if you could talk about, you know how many of the top ESPs you're involved with now or maybe even better yet. How many of the TOP 30 tech companies that actually design chips you're involved with?

是的。感謝您讓我提出一些問題，並讓我對本季表示祝賀。雲端服務供應商正在設計自己的 A 6，大量數據表明它們正在飛行中並開始提升，我只是想知道您是否可以談談，您知道您參與了多少頂級 ESP現在或甚至更好。前 30 名科技公司中有多少家是您參與實際設計晶片的？

So, yeah, so we sort of created our own TOP 10 Index, the TOP 30 index by market cap, right, of technology companies, and so out of those 30 of about 15 are, are designing chips about half of them at the moment, and basically 10 out of the 30 are are using Arteris for something.

所以，是的，所以我們創建了自己的 TOP 10 指數，即按市值計算的 TOP 30 科技公司指數，在這大約 15 家公司中的 30 家中，目前大約有一半正在設計晶片，基本上30 人中有10 人正在使用Arteris 來做某事。

Got it, and, and you had a large deal with one of the top five tech companies. This deal to expand the use of your products. Correct.

明白了，而且，您與排名前五的科技公司之一達成了一筆大交易。這筆交易擴大了您產品的用途。正確的。

Correct. So this would be one of the yes. So this would be one of the large Hypers scalers. Yeah.

正確的。所以這將是其中之一。所以這將是大型 Hypers 縮放器之一。是的。

Got it, and then Nick for you, you know, I calculate your from cash flow, your bookings were on the order of like $23 million to $24 million, am I in the right zip code?

明白了，然後尼克對你來說，你知道，我根據現金流計算你的，你的預訂金額約為 2300 萬至 2400 萬美元，我的郵政編碼正確嗎？

Close.

關閉。

I think that's a sort of a good blended average between third quarter and fourth quarter. We do, we do have a bit of seasonality on bookings as you know, Gus, typically the fourth quarter is our strongest bookings quarter by, by some way, last year was a little different. We had a sort of a reasonable third quarter and a and a weaker fourth quarter in terms of in terms of bookings, this year is back to kind of normal, which is a decent third quarter, but a much stronger fourth quarter. So the number that you quoted there is, I guess kind of an average between, between the two.

我認為這是第三季和第四季之間的一個很好的混合平均值。如你所知，格斯，我們的預訂確實有一些季節性，通常第四季度是我們預訂量最強的季度，從某種程度上來說，去年有點不同。就預訂而言，我們第三季表現不錯，第四季表現較弱，今年已經恢復正常，第三季表現不錯，但第四季表現強勁。所以我想你引用的數字是兩者之間的平均值。

Between Q3 and Q4 or Q2 and Q3.

在 Q3 和 Q4 或 Q2 和 Q3 之間。

Q3 and Q4.

Q3 和 Q4。

Got it, and then, you know, you guys talked about a new product and it doesn't sound like the tiling and mesh network. Is that new product? And I'm just wondering if you guys have any updates on you know, how many companies you're engaged with and when you expect to launch.

明白了，然後，你們知道，你們談論了一種新產品，它聽起來不像平鋪和網狀網絡。那是新產品嗎？我只是想知道你們是否有任何最新消息，你們與多少家公司合作以及預計何時推出。

We, so that as you say, the tiling and the mesh features is not, not the product that we were sort of alluding to earlier. We, we do have we do have installations and we hope to provide more information on the fourth quarter earnings call.

正如您所說，我們的平鋪和網格功能不是我們之前提到的產品。我們確實有安裝，我們希望在第四季度的財報電話會議上提供更多資訊。

Okay. Got it, and have you recognized any revenue on that product at this point?

好的。明白了，此時您是否已確認該產品的任何收入？

Not yet. No, it's more of an early access, more of an early access thing at the moment, Gus, so revenue will follow in due course.

還沒有。不，格斯，這更多的是搶先體驗，目前更多的是搶先體驗，所以收入會在適當的時候隨之而來。

Got it. That's it for me. Thanks so much.

知道了。對我來說就是這樣。非常感謝。

Thanks Gus.

謝謝格斯。

There are no further questions at this time. I would not like to turn the call over to Charles Janac, for closing comments.

目前沒有其他問題。我不想將電話轉給查爾斯·雅納克（Charles Janac）徵求結束意見。

Well, thank you everyone for your time and interest in our terrace. We look forward to meeting with you at the upcoming investor conferences and and we're that we're participating in during the next couple of months and months and we look forward to updating you on all of our business progress in the quarters to come. So, thank you.

好的，感謝大家抽出時間來參觀我們的露臺。我們期待在即將舉行的投資者會議上與您會面，並且我們將在接下來的幾個月和幾個月內參加，我們期待向您通報我們在未來幾個季度的所有業務進展。所以，謝謝你。

Ladies and gentlemen, this concludes your conference call for today.

女士們、先生們，今天的電話會議到此結束。

Thank you for participating and ask that you please disconnect your lines.

感謝您的參與，請斷開您的線路。

Thank you. Bye bye.

謝謝。再見。