Arteris Inc (AIP) 2025 Q3 法說會逐字稿

Good afternoon, everyone, and welcome to the Arteris third-quarter 2025 earnings call. Please note, this call is being recorded and simultaneously broadcast. All materials contained in the webcast is sole property and copyright of Arteris, Inc., with all rights reserved.

各位下午好，歡迎參加 Arteris 2025 年第三季財報電話會議。請注意，本次通話正在錄音並同時進行廣播。網路直播中包含的所有資料均為 Arteris, Inc. 的專屬財產和版權，保留所有權利。

For opening remarks and introductions, I will now turn the call over to Erica Mannion of Sapphire Investor Relations. Please go ahead.

接下來，我會把電話交給 Sapphire Investor Relations 的 Erica Mannion，由她來致開幕詞和介紹。請繼續。

Thank you, and good afternoon. With me today from Arteris are Charlie 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, 2025. Nick will review the financial results for the third quarter followed by the company's outlook for the fourth quarter and the full year of 2025. We will then open the call for questions.

謝謝，下午好。今天與我一起來自 Arteris 的有執行長 Charlie Janac 和財務長 Nick Hawkins。查理將首先簡要回顧截至 2025 年 9 月 30 日的第三季業務成果。尼克將回顧第三季的財務業績，然後展望公司對第四季和 2025 年全年的展望。接下來我們將開放提問環節。

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. These statements are based on management's current expectations and assumptions and involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated, and you should not place undue reliance on forward-looking statements.

在開始之前，我想提醒各位，管理層將在本次電話會議中發表一些符合聯邦證券法定義的前瞻性聲明。這些聲明是基於管理階層目前的預期和假設，並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結果或事件有重大差異，因此您不應過度依賴前瞻性聲明。

Additional information regarding these risks, uncertainties and factors that could cause results to differ appear in the press release that Arteris issued today and in the documents and reports filed by Arteris from time to time with the Securities and Exchange Commission. Please note during this call, we will cite certain non-GAAP measures, including, among others, non-GAAP net loss, non-GAAP net loss per share and free cash flow, which are not measures prepared in accordance with US GAAP.

有關這些風險、不確定性和可能導致結果出現差異的因素的更多信息，請參閱 Arteris 今天發布的新聞稿以及 Arteris 不時向美國證券交易委員會提交的文件和報告。請注意，在本次電話會議中，我們將引用一些非GAAP指標，其中包括非GAAP淨虧損、非GAAP每股淨虧損和自由現金流，這些指標並非依照美國GAAP編制。

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. 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.

我們認為，列示非GAAP指標能夠提供投資人評估及了解公司管理階層如何評估公司經營績效的手段。這些非GAAP指標不應被孤立地視為替代或優於依照美國GAAP編制的財務指標。

A reconciliation of these non-GAAP measures to the nearest GAAP measure can be found in the press release for the quarter ended September 30, 2025. In addition, for a definition of the key performance indicators used in this presentation such as annual contract value, confirmed design starts and remaining performance obligations, please see the press release for the quarter ended September 30, 2025.

截至 2025 年 9 月 30 日的季度新聞稿中提供了這些非 GAAP 指標與最接近的 GAAP 指標的調整表。此外，有關本次簡報中使用的關鍵績效指標（例如年度合約價值、已確認的設計開工量和剩餘履約義務）的定義，請參閱截至 2025 年 9 月 30 日的季度新聞稿。

These key performance indicators are presented for supplemental informational purposes only should not be considered as a substitute for financial information presented in accordance with GAAP and may differ from similarly titled metrics or measures used by other companies, security analysts or investors.

這些關鍵績效指標僅供補充資訊之用，不應被視為根據公認會計原則編制的財務資訊的替代品，並且可能與其他公司、證券分析師或投資者使用的類似名稱的指標或衡量標準有所不同。

Listeners who do not have a copy of the press release for the quarter ended September 30, 2025, may obtain one by visiting the Investor Relations section of the company's website at ir.arteris.com. In addition, management will be referring to the third quarter 2025 earnings presentation, which can be found in the Investor Relations section of the company's website under the Events and Presentations tab.

尚未收到截至2025年9月30日季度新聞稿的聽眾，可造訪本公司網站ir.arteris.com的「投資者關係」頁面取得。此外，管理層還將提及2025年第三季收益演示文稿，該演示文稿可在公司網站「投資者關係」頁面的「活動與簡報」標籤下找到。

Now I will turn the call over to CEO, Charlie Janac.

現在我將把電話交給執行長查理·賈納克。

Thank you, Erica, and thanks to everyone for joining us on our call today. In the third quarter of 2025, we achieved yet another record annual contract value plus royalties of $74.9 million, resulting in 24% year-over-year growth. We saw increased product adoption in chiplets and SoCs across multiple vertical markets. AI applications accounted for over half of our licensing dollars in the third quarter, reflecting the growing adoption of Arteris' system IP technology from data centers to the smart edge.

謝謝艾麗卡，也感謝今天所有參加我們電話會議的朋友。2025 年第三季度，我們再次創下年度合約價值加上特許權使用費 7,490 萬美元的紀錄，年增 24%。我們看到晶片組和SoC在多個垂直市場中的產品採用率有所提高。第三季度，人工智慧應用占我們授權收入的一半以上，這反映出 Arteris 的系統 IP 技術從資料中心到智慧邊緣的應用越來越廣泛。

We continue to see growing adoption of our product portfolio by top technology companies.An example of this is Altera, which selected Arteris technology portfolio to streamline design workflows, optimize data movement and enable intelligent computing across data center, communications, vision, industrial applications, robotics, aerospace and defense applications.

我們持續看到越來越多的頂級科技公司採用我們的產品組合。例如，Altera公司選擇Arteris的技術組合來簡化設計工作流程、優化資料傳輸，並在資料中心、通訊、視覺、工業應用、機器人、航空航太和國防應用等領域實現智慧運算。

This includes our network on-chip IP products, including Ncore and FlexGen and the management platform for IP block integration and hardware, software integration automation, which Altera plans to use in designing their next generation of FPGA and SoC FPGA solutions.

這包括我們的片上網路 IP 產品，包括 Ncore 和 FlexGen，以及用於 IP 模組整合和硬體、軟體整合自動化的管理平台，Altera 計劃將其用於設計下一代 FPGA 和 SoC FPGA 解決方案。

Speaking of FlexGen, last quarter, we announced that AMD licensed the Smart NoC IP to provide high-performance data transport in AI chiplets across AMD's broad portfolio from data centers to edge devices. I'm happy to note that in the third quarter, AMD has ordered additional incremental licenses. In addition to the Altera and AMD relationships, we added four other new FlexGen customers in the third quarter.

說到 FlexGen，上個季度我們宣布 AMD 已授權 Smart NoC IP，以在 AMD 從資料中心到邊緣設備的廣泛產品組合中，為 AI 晶片提供高效能資料傳輸。我很高興地註意到，AMD 在第三季追加了許可證訂單。除了與 Altera 和 AMD 的合作關係外，我們在第三季還新增了四家 FlexGen 客戶。

Within the automotive sector, FlexGen was deployed by Dream Chip, a custom SoC design house for high-end automotive semiconductor design. Additionally, a leading automotive OEM adopted FlexGen for next-generation EVs.

在汽車領域，FlexGen 由 Dream Chip 部署，Dream Chip 是一家為高階汽車半導體設計提供客製化 SoC 設計的公司。此外，一家領先的汽車OEM廠商已將FlexGen技術應用於下一代電動車。

Within the industrial sector, NanoXplore, a provider of radiation hardened silicon technology serving the aerospace, defense, avionics and industrial markets, licensed FlexGen's Smart NoC IP to address the demanding mission-critical computing requirements in space while supporting their product performance, team productivity, device reliability and meeting the underlying area and cost targets.

在工業領域，為航空航太、國防、航空電子和工業市場提供抗輻射矽技術的供應商 NanoXplore 獲得了 FlexGen 的智慧 NoC IP 授權，以滿足太空中嚴苛的關鍵任務運算需求，同時支援其產品性能、團隊生產力、設備可靠性並滿足基本的面積和成本目標。

This represents another example of our products being used not only for applications on Earth, but increasingly in terrestrial orbit, where performance, safety, reliability and security are essential. These examples illustrate the broad applicability of our new FlexGen Smart NoC IP, helping design teams deliver on expanded needs of chiplets and SoCs.

這再次證明，我們的產品不僅用於地球上的應用，而且越來越多地用於地球軌道，在這些軌道上，性能、安全性、可靠性和保障性至關重要。這些例子說明了我們新的 FlexGen 智慧 NoC IP 的廣泛適用性，可協助設計團隊滿足晶片和 SoC 的不斷增長的需求。

Additionally, we expect demand to scale with rising design complexity and the move to advanced foundry nodes, particularly 5-nanometer, 3-nanometer, 2-nanometer and as we head into the Angstrom era of silicon. As the semiconductor industry accelerates efforts to increase performance and efficiency, especially driven by AI workloads and data centers and the edge, we are continuing to see a growing shift from traditional monolithic chips toward chiplets for multi-die SoC architectures, particularly for AI infrastructure and data center applications.

此外，我們預計隨著設計複雜性的增加和向先進代工節點（特別是 5 奈米、3 奈米、2 奈米）的過渡，以及我們邁入矽的埃級時代，需求將會擴大。隨著半導體產業加快提升效能和效率的步伐，尤其是在人工智慧工作負載、資料中心和邊緣運算的推動下，我們不斷看到從傳統的單晶片轉向多晶片SoC架構的小晶片轉變，尤其是在人工智慧基礎設施和資料中心應用領域。

One of the key chiplets is the IO Hub chiplet, which controls data movement across heterogeneous multi-die SoCs. 2V Systems licensed our Ncore and FlexNoC interconnect IPs to develop just such an IO Hub chiplet where Arteris technology serves to control multi-die data traffic meeting the high bandwidth, low latency energy efficiency and total cost of ownership objectives while meeting the needs of enterprise computing in data centers and cloud infrastructure. In the quarter, we also saw increased adoption of chiplets for high-end automotive applications, including our recently expanded multi-die solution.

其中一個關鍵晶片是 IO Hub 晶片，它控制異構多晶片 SoC 之間的資料傳輸。2V Systems 獲得了我們 Ncore 和 FlexNoC 互連 IP 的授權，開發出這樣一款 IO Hub 晶片，其中 Arteris 技術用於控制多晶片數據流量，滿足高頻寬、低延遲、能源效率和總體擁有成本目標，同時滿足數據中心和雲端基礎設施中企業運算的需求。本季度，我們也看到高階汽車應用領域對晶片組的採用率有所提高，包括我們最近擴展的多晶片解決方案。

For example, one of our advanced automotive semiconductor customers shifted from a single chip to multi-die SoC architectures for their next-generation ADAS design, leveraging Ncore FlexNoC IPs for underlying data movement. Aside from various automotive semiconductor companies, we also saw expanded adoption of Arteris technology by automotive OEMs.

例如，我們的先進汽車半導體客戶在其下一代 ADAS 設計中，從單晶片架構轉向多晶片 SoC 架構，並利用 Ncore FlexNoC IP 進行底層資料傳輸。除了各大汽車半導體公司外，我們還看到汽車OEM廠商也越來越多採用Arteris技術。

Two of the top five EV automotive OEM companies expanding their use of silicon proving Arteris technology with functional safety for their next generation of vehicles, which increasingly include a wider array of advanced electronic functionality.

排名前五的電動車 OEM 公司中有兩家正在擴大其矽技術的使用，證明 Arteris 技術能夠為其下一代汽車提供功能安全性，這些汽車越來越多地包含更廣泛的先進電子功能。

Given the accelerating demand for increasingly advanced chiplets and chips from the AI surge in the high end to the growing needs of advanced microcontrollers, the needs for more specialized computing is becoming increasingly evident. This trend drives a broad range of specialized processors or XPUs, for a growing number of applications by providers who increasingly rely on Arteris technology for their underlying connectivity and data movement.

從高階人工智慧的蓬勃發展到對先進微控制器的需求不斷增長，對更先進的晶片和晶片組件的需求也在加速增長，因此，對更專業化運算的需求變得越來越明顯。這一趨勢推動了各種專用處理器或 XPU 的廣泛應用，這些應用由越來越多依賴 Arteris 技術來實現底層連接和資料傳輸的供應商提供。

With our growing ecosystem, we recently announced an expanded collaboration with Alibaba DAMO Academy, enabling better integration and optimize performance between the risk five CPU cores and our data movement system IPs. This collaboration is intended to further enable mutual customers to more efficiently design AI server communications and automotive chips.

隨著我們生態系統的不斷發展，我們最近宣布與阿里巴巴達摩院擴大合作，從而更好地整合風險五核心CPU和我們的資料傳輸系統IP，並優化其效能。此次合作旨在進一步幫助雙方客戶更有效率地設計人工智慧伺服器通訊和汽車晶片。

Such ecosystem collaborations help enhance support for end customers, enabling them to accelerate their pace of innovation, with recent example being Axelera AI, a provider of purpose-built hardware acceleration technology for AI inference. They recently expanded the use of Arteris to help accelerate computer vision for edge devices using our technology to help achieve high bandwidth, low latency and scalability requires to optimize their next-generation inference products. The need for ecosystem collaboration is also evident as industry standards continue to evolve.

這種生態系統合作有助於加強對終端客戶的支持，使他們能夠加快創新步伐，最近的一個例子是 Axelera AI，這是一個為 AI 推理提供專用硬體加速技術的供應商。他們最近擴大了 Arteris 的應用範圍，利用我們的技術來幫助加速邊緣設備的電腦視覺，以實現高頻寬、低延遲和可擴展性要求，從而優化其下一代推理產品。隨著產業標準的不斷發展，生態系統協作的必要性也日益凸顯。

In particular, AI data center infrastructure needs are rapidly evolving, driving demand for purpose-built solutions that can better support rapidly expanding AI workloads. To better meet the associated demand from customers, Arteris joined the Ultra Accelerator Link Consortium, or UALink. The goal of this organization is to establish an optimized, scale-up ecosystem across multiple AI accelerators with Arteris NoC IP serving as data movement transport in chiplets and SoCs.

特別是，人工智慧資料中心基礎設施需求正在迅速變化，推動了對能夠更好地支援快速增長的人工智慧工作負載的專用解決方案的需求。為了更好地滿足客戶的相關需求，Arteris 加入了 Ultra Accelerator Link 聯盟，即 UALink。該組織的目標是建立一個優化的、可擴展的生態系統，跨越多個 AI 加速器，其中 Arteris NoC IP 用作晶片和 SoC 中的資料傳輸傳輸。

We joined with other companies in the consortium, such as AMD, Astera Labs, AWS, Cisco, Google, HP Enterprise, Intel, Meta and Microsoft, all of whom deal with high-end computing and some of whom are requesting the related support in our products.

我們與聯盟中的其他公司，如 AMD、Astera Labs、AWS、思科、Google、惠普企業、英特爾、Meta 和微軟等，共同致力於高階運算，其中一些公司正在請求我們為其產品提供相關支援。

Lastly, I'm proud that Arteris continuous innovation was recognized with yet another award this time as the winner of the most innovative technology company of the year by the 22nd Annual International Business Awards, while also being recognized for new FlexGen Smart NoC IP and Magillem registers integration automation software product, both announced earlier this year.

最後，我感到自豪的是，Arteris 的持續創新再次獲得認可，這次在第 22 屆年度國際商業獎中榮獲年度最具創新力技術公司獎，同時，今年早些時候發布的 FlexGen Smart NoC IP 和 Magillem 寄存器集成自動化軟體產品也獲得了認可。

We believe the scale and scope of our opportunity remain robust, supported by our current products, and strong pipeline of new data movement system IP technologies as well as growing relationships with the largest and most advanced electronics companies in the world in collaboration with a broader ecosystem.

我們相信，在現有產品、強大的新型資料傳輸系統 IP 技術儲備以及與全球最大、最先進的電子公司不斷增長的合作關係以及更廣泛的生態系統的支持下，我們的機會規模和範圍仍然強勁。

Our customers continue to innovate in exciting high-growth areas across multiple applications from AI data centers to the edge, autonomous driving, advanced communications, consumer and industrial use cases. Many of these customers are increasingly turning to our products and solutions to support their innovative designs.

我們的客戶在人工智慧資料中心、邊緣運算、自動駕駛、先進通訊、消費和工業應用等多個令人興奮的高成長領域不斷進行創新。越來越多的客戶開始使用我們的產品和解決方案來支援他們的創新設計。

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

接下來，我將把發言權交給尼克，讓他更詳細地討論我們的財務表現。

Thank you, Charlie, and good afternoon, everyone. As I review our third quarter results today, please note that I'll be referring to GAAP as well as non-GAAP metrics, reconciliation of GAAP to non-GAAP financials is included in today's earnings release, which is available on our website.

謝謝你，查理，大家下午好。今天我將回顧我們第三季度的業績，請注意，我將同時提及GAAP和非GAAP指標，GAAP與非GAAP財務數據的調節表已包含在今天的收益報告中，該報告可在我們的網站上查閱。

Also, as a reminder, I will be referring to the 3Q 2025 earnings presentation which can be found in the Investor Relations section of the company's website under the Events and Presentations tab. We had a strong third quarter meeting or beating our guidance on all financial measures.

另外，提醒一下，我將提及 2025 年第三季收益演示文稿，該演示文稿可在公司網站的「投資者關係」部分的「活動和演示」標籤下找到。我們第三季業績表現強勁，所有財務指標均超乎預期。

Turning to slide 5 of the presentation. Total revenue for the third quarter was $17.4 million, up 5% sequentially and 18% year over year and above the top end of our guidance range. Notably, trailing 12-month variable royalties was 36% higher year over year.

翻到簡報的第5張投影片。第三季總營收為 1,740 萬美元，季增 5%，年增 18%，高於我們預期範圍的上限。值得注意的是，過去 12 個月的可變版稅年增了 36%。

At the end of our third quarter, annual contract value plus royalties was $74.9 million, up 24% year over year, above the top end of our guidance range and at a new record high. Remaining performance obligations, which is our contracted future revenue at the end of the third quarter was $104.7 million, representing a 34% year-over-year increase, a new high and exceeding the $100 million milestone for the first time. Non-GAAP gross profit for the quarter was $15.9 million, representing a gross margin of 91%. GAAP gross profit for the quarter was $15.6 million, representing a gross margin of 90%.

第三季末，年度合約價值加上特許權使用費為 7,490 萬美元，年增 24%，高於我們預期範圍的上限，創歷史新高。截至第三季末，剩餘履約義務（即我們已簽訂合約的未來收入）為 1.047 億美元，年增 34%，創歷史新高，並首次突破 1 億美元大關。本季非GAAP毛利為1590萬美元，毛利率為91%。本季 GAAP 毛利為 1,560 萬美元，毛利率為 90%。

Now turning to slide 6. Non-GAAP operating expense for the quarter was $19.5 million. We continue to reinvest a portion of our top line growth into technology innovations, solution support and our global sales team. Total GAAP operating expense for the third quarter was $24.4 million.

現在請看第6張投影片。本季非GAAP營運費用為1,950萬美元。我們將繼續把部分營收成長再投資於技術創新、解決方案支援和我們的全球銷售團隊。第三季 GAAP 總營運費用為 2,440 萬美元。

We believe that our ongoing investments will help accelerate our top-line growth in the coming years. At the same time, we are delivering operating leverage by controlling G&A spending, which has now remained broadly flat on a non-GAAP basis for over three years. This has resulted in a 15% improvement of non-GAAP operating expense as a percentage of revenue for the year-to-date compared to the same period in 2023. Non-GAAP operating loss in the quarter was $3.5 million, in line with our guidance. GAAP operating loss for the third quarter was $8.7 million compared to a loss of $7.9 million in the prior year period.

我們相信，持續的投資將有助於在未來幾年加速我們的營收成長。同時，我們透過控制一般及行政支出實現了營運槓桿效應，該支出以非GAAP準則計算已連續三年多保持基本持平。與 2023 年同期相比，今年迄今的非 GAAP 營運費用佔收入的百分比改善了 15%。本季非GAAP營業虧損為350萬美元，與我們的預期一致。第三季GAAP營業虧損為870萬美元，而去年同期虧損為790萬美元。

Non-GAAP net loss for the quarter was $3.8 million or diluted net loss per share of $0.09 based on approximately 42.7 million weighted average diluted shares outstanding. GAAP net loss in the quarter was $9 million or diluted net loss per share of $0.21.

本季非GAAP淨虧損為380萬美元，或以約4270萬股加權平均稀釋後流通股計算，稀釋後每股淨虧損0.09美元。本季GAAP淨虧損為900萬美元，或稀釋後每股淨虧損0.21美元。

Moving to slide 7 and turning to the balance sheet and cash flow. We ended the quarter with $56.2 million in cash, cash equivalents, and investments, and we have no financial debt. Free cash flow, which includes capital expenditure, was positive $2.5 million for the third quarter, above the midpoint of our guidance range.

接下來請看第 7 張投影片，了解資產負債表和現金流量表。本季末，我們擁有現金、現金等價物和投資共 5,620 萬美元，我們沒有任何金融債務。第三季自由現金流（包括資本支出）為正250萬美元，高於我們預期範圍的中點。

I would now like to turn to our outlook for the fourth quarter and the full year 2025 and refer now to slide 8. For the fourth-quarter 2025, we expect ACV plus royalties of $74 million to $78 million, revenue of $18.4 million to $18.8 million with non-GAAP operating loss of $2.3 million to $3.3 million and non-GAAP free cash flow of $0.2 million to $3.2 million.

現在我想談談我們對 2025 年第四季和全年的展望，請參考第 8 頁投影片。預計 2025 年第四季 ACV 加上特許權使用費為 7,400 萬美元至 7,800 萬美元，營收為 1,840 萬美元至 1,880 萬美元，非 GAAP 營業虧損為 230 萬美元至 330 萬美元，非 GAAP 自由現金流為 20 萬美元。

For the full-year 2025 our guidance as follows: ACV plus royalties to exit 2025 at $74 million to $78 million, an increase of $1 million compared to our prior guidance. Revenue of $68.8 million to $69.2 million, also an increase of $1 million compared to our prior guidance. Non-GAAP operating loss of between $12.5 million to $13.5 million and non-GAAP free cash flow of $2.5 million to $5.5 million.

我們對 2025 年全年的業績預期如下：2025 年底的年度合約價值加上特許權使用費將達到 7,400 萬美元至 7,800 萬美元，比我們先前預期的增加 100 萬美元。營收為 6,880 萬美元至 6,920 萬美元，比我們先前預期的增加了 100 萬美元。非GAAP營業虧損在1,250萬美元至1,350萬美元之間，非GAAP自由現金流在250萬美元至550萬美元之間。

We remain encouraged by our strong deal execution witnessed by the 34% year-over-year growth in RPO at the end of the third quarter. We are seeing promising signs of accelerated interest by some major customers to increase their outsourcing of system IP products to Arteris, which we believe will help accelerate growth in our license and royalty revenue, ACV plus royalties and positive free cash flow.

第三季末 RPO 年成長 34%，這反映了我們強勁的交易執行力，也讓我們倍感鼓舞。我們看到一些主要客戶對將系統 IP 產品外包給 Arteris 的興趣顯著增強，這令人鼓舞。我們相信，這將有助於加速我們許可和特許權使用費收入、年度合約價值加特許權使用費以及正自由現金流的成長。

With that, I will turn the call back to the operator for the Q&A portion of the call. Operator?

接下來，我將把電話轉回給接線生，進行問答環節。操作員？

(Operator Instructions) Kevin Garrigan, Jefferies.

（操作說明）凱文·加里根，傑富瑞。

Charlie and Nick, congrats on the results in the Altera announcement. Can you just talk a little bit more about Altera? Are they fully away from using internal interconnect teams? Or is there still more opportunities for you guys to expand there?

Charlie 和 Nick，恭喜你們在 Altera 的公告中取得佳績。能再詳細介紹一下 Altera 嗎？他們是否完全放棄了使用內部互聯團隊？或者說，你們在那邊還有更多拓展事業的機會嗎？

I think there's more opportunities. Basically, the application is for FPGAs and FPGA SoCs. So Altera is using their own interconnect in the FPGA matrix, and then we are used essentially in the SoC part. But Altera business is going to continue to evolve and grow and we believe that there's future opportunities, but this is a major milestone because Altera, as they spun out of Intel, chose to go with Arteris for their primary system IP requirements. But yes, there is more potential going down the road.

我認為還有更多機會。此應用程式主要針對FPGA和FPGA SoC。所以 Altera 在 FPGA 矩陣中使用了自己的互連技術，而我們則主要在 SoC 部分使用我們的技術。但 Altera 的業務將會繼續發展壯大，我們相信未來會有更多機會，但這確實是一個重要的里程碑，因為 Altera 從英特爾分拆出來後，選擇了 Arteris 來滿足其主要係統 IP 需求。但沒錯，未來還有更大的發展潛力。

Okay. Perfect. And then since the initial discussions with AMD and the initial order announcement, it seems like it took about one quarter, maybe a little bit longer for them to expand the use of your products. So what were they most impressed with that led to increasing usage in such a short time frame?

好的。完美的。自從與 AMD 進行初步討論並宣布初步訂單以來，似乎花了一個季度，甚至可能更長的時間，他們才擴大了貴公司產品的使用範圍。那麼，究竟是什麼讓他們印象最深刻，從而在如此短的時間內提高了使用率呢？

Yes. I mean, AMD is a big company. The deal in the second quarter was for their -- basically their central engineering group. And the third quarter deal was basically for another group. And AMD has many groups for us to work with. And so there are also additional opportunities at AMD, and we're very much looking forward to helping them accelerate their chip deliveries.

是的。我的意思是，AMD是一家大公司。第二季的這筆交易是針對他們的——基本上是他們的中央工程團隊。第三季的交易基本上是針對另一批客戶。AMD有很多團隊可以與我們合作。因此，AMD 還有更多機會，我們非常期待幫助他們加快晶片交付速度。

Got it. Got it. Okay. And just one more if I can. Can you just talk a little bit more about the importance of reliability and safety when it comes to interconnects and the importance of it in some end markets like space as you guys mentioned? And I think you guys have done a very good job on this front, but do you see this as this focus as really a competitive advantage for you guys?

知道了。知道了。好的。如果可以的話，再來一個。能否再詳細談談互連的可靠性和安全性的重要性，以及它們在你們提到的太空等終端市場中的重要性？我認為你們在這方面做得非常好，但你們認為這種專注真的能成為你們的競爭優勢嗎？

Absolutely. I mean, basically, all the important data goes through our network on chips. And basically, if that has problems or doesn't work, the chip doesn't work. So customers are very risk averse in choosing system IP solutions because any problems there can cause major delays in tape-outs and field problems. So we're being recognized as very much a silicon-proven company.

絕對地。我的意思是，基本上所有重要數據都是透過我們的晶片網路傳輸的。基本上，如果這部分出現問題或無法正常工作，那麼晶片也就無法工作。因此，客戶在選擇系統 IP 解決方案時非常規避風險，因為任何問題都可能導致流片和現場出現重大延誤。因此，我們被公認為一家實力雄厚、經受住了矽技術考驗的公司。

I think now our installed base has shipped something like 3.9 billion SoCs and they all work. And probably some of the stuff used daily, probably has our Arteris Interconnect in it. So yes, we are very much focused on reliability. We're very much focused on quality because if the system IP doesn't work, the chip doesn't work.

我認為目前我們的產品出貨量已經達到了約 39 億顆 SoC，而且全部都能正常運作。而且，我們日常使用的一些產品中，可能就含有我們的 Arteris 互連技術。是的，我們非常注重可靠性。我們非常注重質量，因為如果系統IP有問題，晶片也就沒辦法運作。

Kevin Cassidy, Rosenblatt Securities.

Kevin Cassidy，Rosenblatt Securities。

Congratulations on the great momentum. Just on the UALink consortium, what kind of timing can we expect for licenses to come out of that consortium and some of the players there?

恭喜你們取得如此強勁的勢頭。僅就 UALink 聯盟而言，我們可以預期聯盟及其部分成員何時會發放許可證？

Well, some of the players are already customers. But basically, the objective of the UALink consortium is to essentially scale up data center solutions. And so we're basically developing technology to support that, and we're already involved in some of those designs, but we're basically following that consortium's protocol in order to support the data center scale up efforts that they are pioneered by the companies that we mentioned.

嗯，其中一些玩家已經是我們的客戶了。但從本質上講，UALink 聯盟的目標是擴大資料中心解決方案的規模。因此，我們基本上正在開發支援該技術的技術，並且我們已經參與了其中一些設計，但我們基本上遵循該聯盟的協議，以支持我們提到的公司率先開展的資料中心擴展工作。

Okay. Great. And with the penetration you're getting within AMD and combining it with the Altera announcement, is there opportunities for Xilinx? Or is that already included in your AMD discussion?

好的。偉大的。鑑於 Xilinx 在 AMD 內部的滲透率，再加上 Altera 的公告，Xilinx 是否有發展機會？或者這已經包含在你們關於AMD的討論中了？

Well, Xilinx is an important part of AMD. And in fact, Xilinx was the first customer that was involved with us prior to the AMD acquisition. So Xilinx has been a long-time user of Arteris.

Xilinx是AMD的重要組成部分。事實上，在 AMD 收購我們之前，Xilinx 是我們的第一個客戶。所以，Xilinx 一直是 Arteris 的長期用戶。

Gus Richard, Northland.

格斯·理查德，北地。

Real quick, you've had a number of design wins for a while. And just wondering the royalty relative to most mature IT companies is relatively low. Just wondering when do you expect that to start to accelerate?

簡單來說，你已經連續一段時間獲得了不少設計獎。我只是好奇，相對於大多數成熟的IT公司而言，其版稅水準是否相對較低。我想知道您預計這種情況何時會開始加速？

Nick, do you want to take that one?

尼克，你想接那個嗎？

Yes. I will. Yes. Gus, welcome to the call. It's a great question because as you and I have discussed in the past, an increasing rate of customer design starts is a great indicator of future royalty growth because typically, there's somewhere between a three- to six-year lag between start of the design and mass production and scale, and it can take even another couple of years to get up to full scale after the mass production starts.

是的。我會。是的。Gus，歡迎接聽電話。這是一個很好的問題，因為正如你我過去討論過的那樣，客戶設計啟動率的提高是未來版稅增長的一個很好的指標，因為通常情況下，從設計開始到大規模生產和規模化生產之間會有三到六年的滯後，而且在大規模生產開始後，可能還需要幾年時間才能達到全面規模。

So it is definitely a heavy link between the two. We're already seeing that, and we're already seeing the beginning of the inflection on royalties. And there's one you'll see in our investor, like our Q3 Investor Day, there's a new additional piece of information on royalties.

所以這無疑是兩者之間的重要連結。我們已經看到了這種情況，版稅也開始出現轉折。在我們的投資者關係報告中，例如第三季投資者日，您會看到一條關於版稅的新補充資訊。

And what's very interesting is, number one, the growth of variable royalties is quite impressive. And in fact, the growth year over year for the variable royalties in the trailing 12 months to the end of September compared to the prior 12 months ending September 30, 2024, was up 36%, which is in line with what we've been saying in terms of the royalties growing at roughly 2x the rate of licenses.

非常有趣的是，第一，可變版稅的成長相當驚人。事實上，截至 2024 年 9 月 30 日的過去 12 個月的可變版稅同比增長 36%，這與我們一直以來所說的版稅增長速度大約是許可費增長速度的 2 倍的說法相符。

And what's particularly interesting in that chart you'll see in the investor deck, is that if you go back to 2020, which is quite an interesting start point because that's when we were dominated in royalties from HiSilicon, which has now, of course, gone to 0, we now have a higher rate of variable royalties in fact we have all year since the days of HiSilicon back in 2020 and now instead of being a one-trick pony where we had one customer making up 90% of our variable royalties.

在投資者簡報中您將看到的圖表中，特別有趣的是，如果您回顧 2020 年（這是一個非常有趣的起點，因為當時我們主要依賴海思的版稅收入，而現在這部分收入當然已經降至 0），我們現在擁有更高的可變版稅收入比例，事實上，自 2020 年海思時代以來，我們全年都是如此。現在，我們不再像以前那樣，依賴單一客戶貢獻 90% 的可變版稅收入。

We now have five customers who between them have a greater royalty stream than the one HiSilicon. So we've got more diversity. We've got more people who are now the majors. So it's five majors and then another 50 smaller players. And so it's all up and to the right and growing very nicely. So we are starting to see that. I do see there's an increasing inflection point as we go through the next couple of years. So by 2028, you'll see an even faster rate of acceleration.

我們現在有五家客戶，他們加起來的版稅收入比海思半導體一家還要多。這樣我們就有了更多樣化的群體。我們現在有更多人成為業界領導人物了。所以，有五項大滿貫賽事，還有另外 50 場小型賽事。所以它全都向上向右生長，長得非常好。我們已經開始看到這種情況了。我確實看到，在接下來的幾年裡，我們將迎來一個越來越明顯的轉捩點。因此到 2028 年，你會看到更快的加速成長速度。

Got it. That was super helpful. And then, Charlie, for you, you guys talk about the top tech companies that you've penetrated, I was wondering if that's just for everybody to find what those companies are and then how many you've, at this point, penetrated? And then specifically in the AI ASIC crowd, are you starting to penetrate those, both US and Taiwan?

知道了。那真是太有幫助了。然後，查理，你們談到了你們已經滲透到哪些頂尖科技公司，我想知道這是否只是為了讓大家找到這些公司，以及你們目前已經滲透了多少家公司？那麼具體到人工智慧專用積體電路（ASIC）領域，你們是否已經開始打入美國和台灣的客戶群？

Yes. I mean, basically, we define the large company to sort of top 20 semiconductor companies and then basically another 20 of the largest system electronics companies, right? We're kind of jokingly referring to that as the Arteris index. And we have, I would say, more than 50% of those companies as customers but not all of them are huge customers, right? So there's still a long way to go in terms of expansion of our business.

是的。我的意思是，基本上，我們將大型公司定義為排名前 20 名的半導體公司，然後再定義另外 20 家最大的系統電子公司，對吧？我們半開玩笑地把它稱為動脈指數。我想說，我們擁有其中超過 50% 的客戶，但並非所有客戶都是大客戶，對吧？因此，就業務擴張而言，我們還有很長的路要走。

But obviously, with the AMD and Altera announcement, and there's a couple of others who don't let us announce who they are. One of which we also closed in the Q3. We did our best to be able to announce them, but they did not let us. So I think our progress in the top 40 largest technology companies is quite good. But there's a long ways to go. It's about a $1 billion, $1.2 billion market and we're about $68 million this year or something like that. So there's a long way to go.

但很顯然，AMD 和 Altera 已經發布了公告，還有幾家公司不允許我們透露他們的身份。其中一家公司也是我們在第三季完成交易的。我們盡力想要公佈這些消息，但他們不讓我們公佈。所以我認為我們在排名前 40 的科技公司中取得的進展相當不錯。但還有很長的路要走。這是一個價值10億美元到12億美元的市場，而我們今年的收入大約是6800萬美元左右。所以還有很長的路要走。

Okay. Got it. And then the (inaudible) questions. When I go through cash flow on balance sheet, blah, blah, and it looks like bookings were in the ZIP code of $32 million in the quarter, book-to-bill about $1.8 billion. So Nick, am I in the right ZIP code?

好的。知道了。然後是（聽不清楚的）問題。當我查看資產負債表上的現金流量時，等等等等，看起來該季度的預訂額在 3200 萬美元左右，訂單出貨額約為 18 億美元。尼克，我輸入的郵遞區號對嗎？

Yes. I don't want to comment on bookings, otherwise we open up a Pandora's box of future disclosure. So bookings, as you know, fairly lumpy because we have very large customers these days. And so that can really create a false precedent if we start disclosing that. So I'll have to allow you to do your own math on bookings, Gus.

是的。我不想對預訂情況發表評論，否則就會打開潘朵拉魔盒，導致未來資訊外洩。如您所知，由於我們現在有很多大客戶，所以預訂量波動較大。因此，如果我們開始透露這些訊息，可能會開創一個錯誤的先例。所以，格斯，我得讓你自己去計算預訂情況了。

Joshua Buchalter, TD Cowen.

Joshua Buchalter，TD Cowen。

Charlie, I thought your comments in the prepared remarks about seeing more traction from AI applications and specifically in the data center were interesting. Obviously, a lot's happened in the AI space over the last few months. Could you maybe level set us on how much of your opportunity over time you see coming from actually in data center versus edge device edge and edge embedded devices where I think that's been your bread and butter for a while?

查理，我認為你在準備好的演講稿中關於人工智慧應用，特別是資料中心領域，將獲得更多關注的評論很有意思。顯然，過去幾個月人工智慧領域發生了許多事情。您能否向我們說明一下，隨著時間的推移，您認為您的機會有多少來自資料中心，又有多少來自邊緣設備、邊緣嵌入式設備？我認為邊緣嵌入式設備一直是您的主要收入來源。

Yes. I mean, basically, our thesis is that, over time, pretty much all electronic endpoints or edge devices are going to be connected to the data center. And so for each end point or edge device, there is some ratio of blades in the data center. And as everything becomes connected to the data center, these the number of chips that's actually in these data centers goes to a very large number. So we're sort of following customer demand.

是的。我的意思是，基本上，我們的論點是，隨著時間的推移，幾乎所有的電子終端或邊緣設備都將連接到資料中心。因此，對於每個終端或邊緣設備，在資料中心中都存在一定比例的刀鋒伺服器。隨著所有設備都連接到資料中心，這些資料中心中實際存在的晶片數量將變得非常龐大。所以，我們某種程度上是在順應客戶需求。

And there's just a lot of attention on AI workloads in the data center. There's a lot of project starts. Obviously, NVIDIA is a very, very major player and it will continue to be a major player. But some of these system houses are also designing some of their own chips for specific data acceleration of specific workloads. They're working on specific AI workloads and those kinds of things.

資料中心對人工智慧工作負載的關注度非常高。有很多項目即將啟動。顯然，英偉達是一家非常非常重要的公司，而且它將繼續保持重要地位。但其中一些系統整合商也在設計自己的晶片，用於特定工作負載的特定資料加速。他們正在研究特定的人工智慧工作負載以及這類問題。

So we see as a major opportunity, and we're working with those customers, and we're increasingly starting to pivot our engineering to address the issues that are important to these data center companies, hyperscaler companies that are handling the high-end AI workloads.

因此，我們認為這是一個重大機遇，我們正在與這些客戶合作，並且我們正越來越多地調整我們的工程方向，以解決這些資料中心公司、處理高端 AI 工作負載的超大規模資料中心公司所關注的重要問題。

So over time, I think data center will be somewhere between 25% to 30%, maybe 35% of our business. But right now, AI represents about 50% of all the design starts that we're involved with. So right now, there's a bit of a design start bonanza. But on a long-term basis, I would expect it to be about probably 35% or so.

所以隨著時間的推移，我認為資料中心將占我們業務的 25% 到 30%，甚至可能達到 35%。但目前，人工智慧在我們參與的所有設計項目中約佔 50%。所以現在，設計專案啟動正迎來一波熱潮。但從長遠來看，我預計大概在 35% 左右。

Maybe, Nick, could you provide any comments or color on -- it seems like you're getting a lot of good traction from FlexGen, which comes with higher ASP on the royalty and I'm guessing the licensing side as well. When should we expect that to start being a sort of meaningful needle mover in the model?

尼克，你能否就 FlexGen 提供一些評論或細節——看起來你們從 FlexGen 獲得了很大的發展勢頭，它帶來了更高的版稅平均售價，我猜授權方面也是如此。我們應該何時才能預期它會對模型產生實質的影響？

Josh, just to be clear, are you asking that question specifically regarding royalties or more generally on license revenue?

Josh，我確認一下，你問的這個問題是指版稅，還是更廣義的授權收入？

It was more on the royalty side.

更偏向皇室方面。

Yes. So I mean, FlexGen is accretive to both ASP and therefore, license, but it's also accretive to royalties because it has more competence as a product than it's -- the more junior the FlexNoC 5 that doesn't have the automation feature.

是的。所以我的意思是，FlexGen 既能提高 ASP，從而提高許可費，也能提高版稅，因為它比不具備自動化功能的初級產品 FlexNoC 5 更勝一籌。

So yes, if you look at somebody, for example, in who've just kicked off a FlexGen cycle or FlexGen deal with us, and most of those have come from the mid of this year onwards. And now you saw we had another four in addition to Altera and AMD in the third quarter. So it very much depends on the use case. There are some -- most of the use cases right now are more in the server and FPGA environment which don't have huge volumes, as you know, there are some which are more involved in higher volume. We're early stages yet.

所以，是的，例如，如果你看看那些剛開始與我們簽訂 FlexGen 合約或 FlexGen 協議的人，而這些人大多是從今年年中開始的。現在你們可以看到，除了 Altera 和 AMD 之外，我們在第三季又新增了四家公司。所以這很大程度取決於具體使用場景。目前大多數應用場景都集中在伺服器和 FPGA 環境中，這些環境的資料量並不大。如你所知，也有一些應用場景涉及更大的資料量。我們還處於早期階段。

We do expect a lot more penetration from FlexGen into some of the other areas that are perhaps higher volume. And of course, the biggest royalty area for us, which is about half of our total royalties is actually from the automotive market. And so if you use FlexGen in automotive, for example, in automotive design today and you start the design, it would be 2030 to 2031 before we started seeing the royalties from that. So there's a lot of pipe stocking going on in royalties from this.

我們預計 FlexGen 將在其他一些銷售量可能更高的領域取得更大的滲透率。當然，我們最大的版稅收入來源，約占我們版稅總額的一半，實際上來自汽車市場。因此，例如，如果您今天在汽車設計中使用 FlexGen，並且您開始進行設計，那麼要到 2030 年到 2031 年我們才能開始看到由此產生的版稅。所以，這其中有很多版稅收入被挪用了。

There are no further questions at this time. Mr. Janac, please proceed with closing remarks.

目前沒有其他問題了。Janac 先生，請作總結發言。

Well, thank you, everyone, for your interest in Arteris. We're very excited about the current quarter, and we look forward to meeting with you in the upcoming non-deal road shows and investor conferences in the quarters ahead and updating you on our business progress. Thank you very much.

非常感謝大家對 Arteris 的關注。我們對本季充滿信心，期待在接下來的幾個季度裡，在即將舉行的非交易路演和投資者會議上與您見面，並向您報告我們的業務進度。非常感謝。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，請您斷開線路。