Arteris Inc (AIP) 2025 Q3 法說會逐字稿

Good afternoon everyone and welcome to the Arteris third quarter 2025 earnings Hall. Please don't. This call is being recorded and simultaneously broadcast. All materials contained in the webcast is sold property and copyright of Arteris Inc with all rights reserved. For opening remarks and introductions,

各位下午好，歡迎來到 Arteris 2025 年第三季財報發表會現場。請不要這樣做。本次通話正在錄音並同時廣播。網路直播中包含的所有資料均為 Arteris Inc 的財產和版權，保留所有權利。開幕致詞和介紹，

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

現在我將把電話轉交給 Sapphire Investor Relations 的 Erica Mannion。請繼續。

Thank you and good afternoon. With me today from Arteris are Charlie Janac, Chief Executive Officer, and •Nicholas Hawkins, Chief Financial Officer. Charlie will begin with a brief review of the business results for the third quarter ending 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。今天和我一起來自 Arteris 的有執行長 Charlie Janac 和財務長 Nicholas 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 terrorists issued today and in the documents and reports filed by our terrorists 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 the 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，請參閱恐怖分子今天發布的新聞稿以及恐怖分子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量等，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 the 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指標不應與依照美國GAAP編製的財務指標割裂開來考慮，也不應被視為替代或優於這些財務指標。

Reconciliation of these non-GAAP measures to the nearest GAAP measure can be found in the press release for the quarter end of 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.

2025 年 9 月 30 日季度末的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的定義，例如年度合約價值、已確認的設計開工量和剩餘履約義務，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 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，不應被視為按照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 I.arterri.com. In addition, management will be referring to the third quarter of 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，可造訪公司網站I.arterri.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，該文稿可在公司網站投資者關係頁面的「活動與演示」欄位下找到。

Now I will turn the call over to CEO Charles Janac.

現在我將把電話轉交給執行長查爾斯·賈納克。

FlexThank 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 triplets and SOCs across multiple vertical markets. AI applications accounted for over 50% of our licensing dollars in the third quarter, reflecting the growing adoption of our terror system IP technology from data centres to the smart edge.

Flex：謝謝 Erica，也感謝今天所有參加我們電話會議的各位。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，在多個垂直市場中，三元組和 SOC 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 50% 以上，這反映出我們的反恐系統 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 Alterra, which selected Arteris technology portfolio to streamline design workflows, optimize data movement, and enable intelligent computing across data centre, communications, vision, industrial applications, robotics, aerospace, and defense applications.

我們看到，越來越多的頂尖科技公司開始採用我們的產品組合。例如，Alterra 選擇 Arteris 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領域實現智慧運算。

This includes our network on chip IP products, including Encore and FlexGen, and the Magean platform for IP block integration and hardware software integration automation. Which Alterra plans to use in designing the next generation of FPGA and SOC FPGA solutions.

這包括我們的片上網路 IP 產品，包括 Encore 和 FlexGen，以及用於 IP 模組整合和硬體軟體整合自動化的 Magean 平台。Alterra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 knock IP to provide high performance data transport in AI triplets across AMD's broad portfolio from data centres to edge devices.

說到 FlexGen，上個季度我們宣布 AMD 已授權 Smart knock IP，以在 AMD 從資料中心到邊緣設備的廣泛產品組合中為 AI 三元組提供高效能資料傳輸。

I'm happy to note that in the third quarter, AMD has ordered additional incremental licenses. In addition to the Alterra and AMD relationships, we added 4 other new FlexGen customers in the third quarter. 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.

我很高興地註意到，AMD 在第三季追加了許可證訂單。除了與 Alterra 和 AMD 的合作關係外，我們在第三季還新增了 4 家 FlexGen 客戶。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, Nano explores, a provider of radiation hardened silicon techno technology serving the aerospace defense avionics and industrial markets, licensed FlexGen Smartnock 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. 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.

在工業領域，Nano Explores 是一家為航空航太國防航空電子設備和工業市場提供抗輻射矽技術的公司，該公司獲得了 FlexGen Smartnock IP 的許可，以滿足太空中嚴苛的關鍵任務計算需求，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。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。

These examples illustrate the broad applicability of our new FlexGen [SmartN] IP helping design teams deliver on expanded needs of triplets and SOCs. Additionally, we expect demand to scale. With rising design complexity and the move to advance boundary nodes, particularly 5 nanometre, 3 nanometre, 2 nanometre, and as we head into the Engstrom era of silicon.

這些例子說明了我們新的 FlexGen [SmartN] IP 的廣泛適用性，可協助設計團隊滿足三元組和 SoC 的擴展需求。此外，我們預計需求將會增加。隨著設計複雜性的增加和向先進邊界節點（特別是 5 奈米、3 奈米、2 奈米）的轉變，以及我們邁入矽的恩斯特羅姆時代。

As the semiconductor industry accelerates efforts to increase performance and efficiency, especially driven by AI workloads at data centres and the edge. We are continuing to see a growing shift from traditional monolithic chips toward chiplet for multi-die SOC architectures, particularly for AI infrastructure and data centre applications.

隨著半導體產業加快提升效能和效率的步伐，尤其是在資料中心和邊緣的 AI 工作負載的推動下。我們持續看到，對於多晶片 SoC 架構而言，傳統單晶片正逐漸向晶片組轉變，尤其是在人工智慧基礎設施和資料中心應用領域。

One of the keys chiplet is the IO hub chiplet , which controls data movement across heterogeneous multi-die SOCs. 2B systems license our Encore and Flexnoc interconnect IPs to develop just such an IO hub chiplet where Arteris technology serves to control multi-dye 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 centres and cloud infrastructure.

其中一個關鍵晶片是 IO 集線器晶片，它控制異構多晶片 SoC 之間的資料傳輸。2B 系統公司獲得了我們 Encore 和 Flexnoc 互連 IP 的授權，開發出這樣的 IO 集線器晶片，其中 Arteris 技術用於控制多染料資料流量。在滿足資料中心和雲端基礎設施的企業運算需求的同時，滿足高頻寬、低延遲、高能源效率和整體擁有成本目標。

In the quarter, we also saw increased adoption of triplets for high-end automotive applications, including our recently expanded multi-die solution. For example, one of our advanced automotive semiconductor customers shifted from a single chip to multi-die solution architectures for the next generation ADS design, leveraging N-core and Flexnoc IPs for underlying data movement.

本季度，我們也看到高階汽車應用中三晶片的採用率有所提高，包括我們最近擴展的多晶片解決方案。例如，我們的一位先進汽車半導體客戶在下一代 ADS 設計中，從單晶片架構轉向多晶片解決方案架構，利用 N-core 和 Flexnoc IP 進行底層資料傳輸。

Aside from various automotive semiconductor companies, we also saw expanded adoption of our Arteris technology by automotive OEMs. Two of the TOP5 EV automotive OEM companies expanding their use of silicon proven Arteris technology with functional safety for their next generation of vehicles, which increasingly include a wider array of advanced electronic functionality.

除了各大汽車半導體公司外，我們也看到汽車OEM廠商也開始更廣泛地採用我們的Arteris技術。排名前 5 名的電動車 OEM 公司中有兩家正在擴大其下一代汽車的功能安全矽技術 Arteris 的應用範圍，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 chiplet and chips from the AI surge in the high end to the growing needs of advanced microcontrollers, the need for more specialized computing is becoming increasingly evident.

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。

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. With our growing ecosystem, we recently announced an expanded collaboration with Alibaba Demo Academy, enabling better integration and optimized performance between the Risk 5 CPU cores and our data movement system IPs.

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開發。隨著我們生態系統的不斷發展，我們最近宣布擴大與阿里巴巴示範院的合作，從而實現 Risk 5 CPU 核心與我們的資料移動系統 IP 之間更好的整合和更優化的效能。

This collaboration is intended to further enable mutual customers to more efficiently designed AI server communications and automotive chips. Such ecosystem collaborations help enhance support for end customers, enabling them to accelerate the pace of innovation, with recent example being Accelera AI, a provider of purpose-built hardware acceleration technology for AI inference.

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。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 Accelera AI，一家為 AI 推理提供專用硬體加速技術的供應商。

They recently expanded the use of our terrace to help accelerate computer vision for edge devices using our technology to help achieve high bandwidth, low latency, and scalability requires to optimize the next generation infer products. The need for ecosystem collaboration is also evident as industry standards continue to evolve.

他們最近擴大了我們平台的使用範圍，利用我們的技術來幫助加速邊緣設備的電腦視覺，從而實現高頻寬、低延遲和可擴展性，以優化下一代推理產品。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 centre 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, Arters joined the Ultra Accelerator Link Consortium, or UA Link.

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，Arters 加入了 Ultra Accelerator Link 聯盟，即 UA Link。

The goal of this organization is to establish an optimize scale up ecosystem across multiple AI accelerators with our tourist NAC IP serving as data movement transport in triplets and SOCs. We joined with other companies in the consortium such as AMD, Astrolabs, AWS, Cisco, Google, HP Enterprise, Intel, Meta, and Microsoft, all of whom deal with high-end computing and some of whom are requesting related support in our products.

該組織的目標是建立一個跨多個 AI 加速器的最佳化擴展生態系統，利用我們的旅遊 NAC IP 作為三元組和 SOC 中的資料移動傳輸。我們與聯盟中的其他公司，如 AMD、Astrolabs、AWS、思科、Google、惠普企業、英特爾、Meta 和微軟等，共同開展高階運算業務，其中一些公司正在尋求我們產品的相關支援。

Lastly, I am proud that our terrorist 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 knock IP and Magellan registers integration automation software product, both announced earlier this year.

最後，我感到自豪的是，我們不斷創新的精神再次獲得了認可，這次是在第 22 屆國際商業獎中榮獲年度最具創新力技術公司獎，同時，我們今年早些時候發布的 FlexGen Smart knock IP 和 Magellan registers 集成自動化軟體產品也獲得了認可。

We believe the scale and scope of our op 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，在現有產品和強大的新型資料傳輸系統 IP 技術儲備的支持下，以及與全球最大、最先進的電子公司和更廣泛的生態系統合作，我們業務機會的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 centres 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 over to Nick to discuss our financial results in more detail.

接下來，我將把麥克風交給尼克，讓他更詳細地討論一下我們的財務表現。

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. 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.

謝謝你，查理，大家下午好。今天在回顧我們第三季業績時，請注意，我將同時參考GAAP和非GAAP指標。今天發布的盈利報告中包含了 GAAP 與非 GAAP 財務數據的調整表，該報告可在我們的網站上查閱。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, training 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，培訓 12 個月的可變版稅比去年增加了 36%。

At the end of the 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 34% year over year increase. A new high and exceeding the $100 million dollar 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，並創下歷史新高。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%。創下新高，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. The 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、解決方案支援和全球銷售團隊。第三季GAAP營運總支出為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 3 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.

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費用實現了營運槓桿效應，該費用按非GAAP準則計算已連續3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%。

Non-GAAP operating loss in the quarto was $3.5 million in line with our guidance. The GAAP operating loss for the third quarter was $8.7 million compared to a loss of $7.9 million in the prior year period. 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。根據約 4,270 萬股加權平均稀釋流通股計算，本季非 GAAP 淨虧損為 380 萬美元，或稀釋後每股淨虧損 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 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5,620萬美元的現金等價物和投資，且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 of 2025 we expect ACB 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 ACB 加上特許權使用費將達到 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 萬美元至 320 萬美元。

For the full year 2025, our guidance is as follows. ACB 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.

對於 2025 年全年，我們的指導如下。預計到 2025 年底，ACB 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 our terrace, which we believe will help accelerate growth in our license and loyalty revenue, ACV royalties, RPO and positive free cash flow.

我們對我們強勁的交易執行力感到鼓舞。從第三季末 RPO 年成長 34% 可以看出這一點。我們看到一些主要客戶對將系統 IP 產品外包給我們表現出越來越濃厚的興趣，這令人鼓舞。我們相信，這將有助於加快我們許可和忠誠度收入、ACV 版稅、RPO 和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，由接線員進行問答環節。

(Operator Instructions) Kevin Garrison

（操作說明）凱文·加里森

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

嘿，查理和尼克，恭喜你們取得好成績，也恭喜你們宣布加入 Alterra。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，還是你們在這方面還有更多拓展的機會？

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 Alterra, 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 部分使用這項技術。但是，Altera 的業務將會繼續成長。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 Alterra 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 product. So what were they kind of most impressed with that led to increasing usage in such a short time frame?

好的，完美。然後，自從與 AMD 進行初步討論和發布初始訂單以來，似乎花了一個季度，甚至可能更長的時間，他們才擴大了你們產品的使用範圍。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？

Yeah, I mean, AMD is a big company. The deal in the second quarter was for their basically their central engineering group, and this, the third quarter deal was basically for another group and Alterra has, I'm sorry, AMD has many groups. To, for us to work with. And so there are also additional opportunities at 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。第二季的交易主要是針對他們的中央工程團隊，而第三季的交易主要是針對另一個團隊，Alterra，抱歉，AMD有很多團隊。為了我們能夠合作。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. Okay and just one more if I can, you talk. Oh, 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 and you know some in markets like spaces you guys mentioned and I think you guys have done a very good job in this front, but do you see this as this focus as really a competitive advantage for you guys?

知道了。好的，如果可以的話，就最後一個問題，你來說吧。哦，您能否再多談談互連的可靠性和安全性的重要性，以及它們在一些市場領域的重要性，例如您提到的那些領域。我認為你們在這方面做得非常好，但你們認為這種關注點真的能成為你們的競爭優勢嗎？

Oh, 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, you know we're being recognized as, very much a silicon proven. A company, 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 is our interconnecting it. So yes, we are very much focused on on reliability. We're very much focused on quality because if the system IP doesn't work, the chip doesn't work.

當然。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磁帶輸出的重大延誤和現場問題。所以，你知道，我們正被公認為一家實力雄厚的矽基公司。我認為，我們公司目前的裝機量已經出貨了大約 39 億個 SoC，它們都能正常工作，而且我們每天使用的一些設備可能就是將它們互連起來的。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。

Yeah, got it. Okay, perfect. I appreciate the call and congrats again.

好的，明白了。好的，完美。感謝來電，再次恭喜你。

Thank you.

謝謝。

(Operator Instructions) Rosenblatt Securities Inc - Analyst

（操作說明）羅森布拉特證券有限公司 - 分析師

Yeah, thanks for taking my question and congratulations on the great momentum. Just on the UA link consortium, what kind of timing can we expect for you know licenses to come out of that consortium and some of the players there?

是的，謝謝你回答我的問題，也恭喜你有如此巨大的進步。就 UA Link 聯盟而言，我們可以期待聯盟及其部分成員在什麼時間內發放授權？

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

嗯，其中一些玩家已經是客戶了，但 UA Li 聯盟的目標基本上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規模化工作。

Okay, great. And with the penetration you're getting within AMD and you know combining it with the Altera announcement, is there opportunities for [yins] or is that already included in your AMD discussion?

好的，太好了。鑑於你們在 AMD 內部的滲透率，再加上 Altera 的公告，[yins] 是否有機會？或者這已經包含在你們對 AMD 的討論中了？

Well, {yins} is an important part of AMD and in fact, Ceiling was the first customer that was involved with us prior to the AMD acquisition. So [Zilins] has been a longtime user of our Terras.

嗯，{yins} 是 AMD 的重要組成部分，事實上，Ceiling 是 AMD 收購我們之前與我們合作的第一個客戶。所以[Zilins]一直是我們的Terra產品的長期用戶。

Okay, thank you.

好的，謝謝。

(Operator Instructions) Gus Richard Northland Securities Inc - Analyst

（操作說明）Gus Richard Northland Securities Inc - 分析師

Yes, thanks for taking the question. 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 you expect that to start to accelerate.

是的，謝謝你回答這個問題。簡單問一下，你們已經連續一段時間獲得了不少設計項目，我想問一下，相對於大多數成熟的 IT 公司來說，你們的版稅是不是比較低？我只是想知道你預計這種情況什麼時候會開始加速發展。

Do you want to take that one?

你想選那個嗎？

Yeah, I will. Yeah, so hi, Gus, welcome to Cole. So the, it's a great question because as you and I have discussed in the past, the, an increasing rate of customer design starts is a great Indicator of future royalty growth because typically there's somewhere between a 3 to 6 year lag between the start of a 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.

好的，我會的。是的，嗨，Gus，歡迎來到Cole。所以，這是一個很好的問題，因為通常從設計開始到大規模生產和規模化生產之間會有 3 到 6 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. The 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 investodeck, our Q3 investodeck, there's a new additional piece of information on royalties. And what's very interesting is, number one, the growth of royalties is quite a variable royalty is quite impressive.

所以這無疑是兩者之間的重要連結。我們已經看到了這一點，我們已經看到了版稅開始出現轉折，在我們的投資簡報中，也就是第三季投資簡報中，你會看到關於版稅的新的補充資訊。非常有趣的是，首先，版稅的成長相當不穩定，版稅收入相當可觀。

And in fact, the growth year of a year for the variable royalties in the training 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. And what's particularly interesting in that chart you'll see in the investor deck is that We, if you go back to 2020, which is quite an interesting start point because that's when we were dominated in royalties from high silicon, which has now of course gone to zero, we now have a higher rate of variable royalties, in fact, we have all year since the days of high silicon back in 2020.

事實上，截至 2024 年 9 月 30 日的 12 個月培訓期間可變版稅的年增長率與前 12 個月相比增長了 36%，這與我們一直以來所說的版稅增長率大約是許可增長率的 2 倍的說法是一致的。在投資者簡報中，您將看到的圖表中特別有趣的一點是，如果我們回顧 2020 年（這是一個非常有趣的起點，因為那時我們主要依靠高矽的版稅收入，而現在這些收入當然已經降至零），我們現在擁有更高的可變版稅收入，事實上，自 2020 年高矽時代以來，我們全年都是如此。

And now instead of being a one trick pony, where we had one customer making up 90% of our variable royalties, we now have 5 customers who between them have a greater royalty stream than the one high silicon. So we've got more diversity. We've got more people who are now the majors, so it's 5 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.

現在，我們不再像以前那樣只有一位客戶貢獻了 90% 的可變版稅，而是有 5 位客戶，他們加起來的版稅收入比那位高矽 ...這樣我們就有了更多樣化的群體。我們現在有了更多進入大聯盟的選手，所以有 5 位大聯盟選手，還有 50 位規模較小的選手。所以，它現在都向上向右生長，而且長得非常好。所以，我們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 guys talk about the top 20 companies that you've, penetrated. I was wondering if they, just for everybody define what those companies are and then how many you've at this point penetrated. And then, and specifically in the AI crowd, are you starting to penetrate those both US and Taiwan?

明白了，這非常有幫助。查理，你們來談談你們已經滲透到的前 20 家公司。我想知道他們是否會向所有人解釋這些公司是什麼，以及到目前為止你已經滲透了多少家公司。那麼，尤其是在人工智慧領域，你們是否開始滲透到美國和台灣的市場呢？

Yeah, I mean, we, basically we define the large companies as sort of TOP20 semiconductor companies and then basically another, 20 of the largest system electronics companies, right? So that's 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，我們基本上把大型公司定義為排名前 20 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？所以，我們半開玩笑地把這個指數稱為“動脈指數”，我想說，超過 50% 的公司都是我們的客戶，但並非所有公司都是大客戶，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 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 TOP40 largest technology companies is quite good, but you know there's a long way to go. It's a, it's about a $1.2 billion dollar market and we're about $68 million this year or something like that. So, there's a long way to go.

但顯然，隨著 AMD 和 Altera 的公告發布，還有一些公司不允許我們透露他們的身份，其中一家我們也在第三季完成了收購。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TOP40最大科技公司中的進展相當不錯，但你也知道，我們還有很長的路要走。這是一個價值約 12 億美元的市場，而我們今年的收入大約是 6,800 萬美元左右。所以，還有很長的路要走。

Okay, got it. And then, Lord Baltimore of questions, when I go through cash flow and balance sheet, blah blah, and you know it looks like bookings were in the zip code of $32 million in the quarter booked to go about 1.8. So, Nick, am I in the right zip code?

好的，明白了。然後，問題之王巴爾的摩，當我查看現金流量表和資產負債表時，等等等等，你知道，看起來本季的預訂額在 3200 萬美元左右，預計將增長 180 萬美元。所以，尼克，我算對了嗎？

Yeah, I don't want to comment on bookings, otherwise we open up a Pandora's box of future disclosure.

是的，我不想對預訂情況發表評論，否則我們會打開潘朵拉魔盒，導致未來出現更多資訊外洩。

So bookings as fairly lumpy, and so, 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.

因此，預訂量相當不穩定，而且，由於我們現在有很多大客戶，如果我們開始披露這些信息，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。

Okay, yeah, I figured, thanks, I'll pass it on.

好的，是的，我想到了，謝謝，我會轉達的。

(Operator Instructions) Joshua Buchalter, TD Cowen - Analyst

（操作說明）Joshua Buchalter，TD Cowen - 分析師

Hey guys, thank you for taking my question. Charlie, I thought your comments in the prepared remarks about, more 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, edged embedded devices where I think you know that's been your bread and butter for a while. Thank you.

各位好，感謝你們回答我的問題。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。您能否為我們說明一下，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？我想您也知道，邊緣設備一直是您主要的收入來源。謝謝。

Yeah, 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 endpoint 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, and we are, there's just a lot of attention on AI workloads in the data center.

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，因此每個終端或邊緣設備在資料中心中都會有一定比例的刀片伺服器。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，而且，資料中心對人工智慧工作負載的關注度也很高。

There's a lot of project starts. Obviously, Nvidia is a very major player and 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. We see it as a 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, hyperscale companies that are handling the, high-end AI workloads. So over time, I mean, I think data center will you know be somewhere between 25% to 30%, maybe 35% of our business, but right now AI represents about 50% of all the design stars that we're involved with. So right now there's a bit of a design star bonanza, but on a long-term basis I would expect it to be about probably 35% or so.

有很多項目即將啟動。顯然，英偉達是一家非常重要的公司，並將繼續保持其重要地位，但一些系統整合商也在設計自己的晶片，以加速特定工作負載的特定資料。他們正在研究特定的人工智慧工作負載以及這類問題。我們認為這是一個重大機遇，我們正在與這些客戶合作，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、處理高階 AI 工作負載的超大規模公司所面臨的重要問題。所以隨著時間的推移，我認為資料中心將會占我們業務的 25% 到 30%，甚至 35%，但目前人工智慧在我們參與的所有設計專案中約佔 50%。所以現在設計界湧現不少新星，但從長遠來看，我預計這個比例大概在 35% 左右。

Yeah, thank you for all the color there. 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? Thank you both and congrats again.

是的，謝謝你們帶來的繽紛色彩。Nick，你能否就 FlexGen 提供一些評論或細節？ FlexGen 似乎取得了不錯的進展，其版稅和授權方面的平均售價也更高。我們什麼時候才能看到它成為該模式中一個有意義的轉捩點？謝謝你們兩位，再次恭喜你們。

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

為了明確起見，您問的這個問題是指版稅，還是更廣泛意義上的授權收入？

I was more on the royalty side.

我比較傾向於皇室那邊。

Yeah, so I mean, FlexGen is accretive to both ASP and therefore licensed, but it's also accretive to royalties because it has more competence as a product than it's the more junior the Flexo 5 that doesn't have the automation feature. So yes, if you look at somebody, for example, in who who's just kicked off a FlexGen cycle or a FlexGen deal with us, and most of those have come from the mid of this year onwards, and now you saw we had another 4 in addition to Alterra and AMD in the third quarter. So, it very much depends on the use case.

是的，我的意思是，FlexGen 既能提高平均售價，從而增加授權收入，也能增加版稅收入，因為它比不具備自動化功能的初級產品 Flexo 5 更強大。所以，是的，例如，如果你看看那些剛剛與我們啟動 FlexGen 週期或達成 FlexGen 協議的公司，其中大多數都是從今年年中開始的，現在你可以看到，除了 Alterra 和 AMD 之外，我們在第三季度又新增了 4 家。所以，這很大程度取決於具體的使用場景。

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. We do expect a lot more penetration from Flexen 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.

如您所知，目前大多數用例都集中在伺服器和 FPGA 環境中，而這些環境的規模並不大。有些項目涉及的交易量較大。我們還處於早期階段。我們預計 Flexen 將在其他一些銷售可能更高的領域中取得更大的滲透。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。

And so, from a if you use Flexen and Automotive, for example, auto 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 stoking going on in royalties from this.

因此，例如，如果您今天使用 Flexen 和 Automotive 進行汽車設計，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。

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

謝謝。賈納克先生，目前沒有其他問題了，請您作總結發言。

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

非常感謝大家對我們露台的關注。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 I 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。