Allot Ltd (ALLT) 2023 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Allot's Second Quarter 2023 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have not received it, please contact Allot's Investor Relations team at EK Global Investor Relations at 1-212-378-8040 or view it in the news section of the company's website at www.allot.com.

女士們先生們，謝謝你們的支持。歡迎參加 Allot 2023 年第二季業績電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在你們應該已經收到公司的新聞稿了。如果您尚未收到，請致電 1-212-378-8040 聯絡 EK Global 投資者關係部的 Allot 投資者關係團隊，或在公司網站 www.allot.com 的新聞部分查看。

I would now like to hand over the call to Mr. Kenny Green of EK Global Investor Relations. Mr. Green, please begin.

現在我想將電話轉交給 EK 全球投資者關係部的 Kenny Green 先生。格林先生，請開始。

Thank you, operator. Welcome to Allot's Second Quarter 2023 Conference Call. I would like to welcome all of you to the conference call and thank Allot's management for hosting this call. With us on the line today are Mr. Erez Antebi, President and CEO; and Mr. Ziv Leitman, CFO. Erez will summarize the key highlights, followed by Ziv who'll review Allot's financial performance of the quarter. We will then open the call for the question-and-answer session. Before we start, I'd like to point out that this conference call may contain projections or other forward-looking statements regarding future events or the future performance of the company. These statements are only predictions and Allot cannot guarantee that they will in fact occur. Allot does not assume any obligation to update that information, actual events or results may differ materially from these projected including as a result of changing market trends, reduced demand and the competitive nature of the security systems industry as well as other risks identified in the documents filed by the company with the Securities and Exchange Commission.

謝謝你，接線生。歡迎參加 Allot 2023 年第二季電話會議。我歡迎大家參加電話會議，並感謝 Allot 的管理層主持這次電話會議。今天與我們通話的是總裁兼執行長 Erez Antebi 先生；和財務長 Ziv Leitman 先生。 Erez 將總結主要亮點，隨後 Ziv 將回顧 Allot 本季的財務表現。然後我們將開始問答環節。在開始之前，我想指出，本次電話會議可能包含有關未來事件或公司未來業績的預測或其他前瞻性陳述。這些陳述只是預測，Allot 不能保證它們實際上會發生。 Allot 不承擔任何更新資訊的義務，實際事件或結果可能與這些預測有重大差異，包括由於市場趨勢變化、需求減少和安全系統行業的競爭性質以及文件中確定的其他風險該公司向美國證券交易委員會備案。

And with that, I would now like to hand the call over to Erez. Erez, please go ahead.

現在，我想將電話轉交給埃雷茲。埃雷茲，請繼續。

Thank you, Kenny. I'd like to welcome all of you to our conference call. Thank you for joining us today. Our second quarter revenues were $25 million, 24% lower than the comparable quarter last year. In June 2023, our SECaaS ARR was $9.7 million, 4% higher than our SECaaS ARR in March 2023 and 41% higher than our SECaaS ARR for June 2022. The first half of 2023 was challenging for us. The transition of the business into SECaaS recurring revenue model has proven to be slower than we originally anticipated.

謝謝你，肯尼。歡迎大家參加我們的電話會議。感謝您今天加入我們。我們第二季的營收為 2,500 萬美元，比去年同期下降 24%。 2023 年 6 月，我們的 SECaaS ARR 為 970 萬美元，比 2023 年 3 月的 SECaaS ARR 高 4%，比 2022 年 6 月的 SECaaS ARR 高 41%。2023 年上半年對我們來說充滿挑戰。事實證明，業務向 SECaaS 經常性收入模式的轉變比我們最初預期的要慢。

In addition, our core DPI business is experiencing some macro-related headwinds. While we don't expect these challenges to disappear in the near term, given the challenging economic backdrop, we continue to make progress with the aspects of the business that we can control. I remain optimistic about our future. During today's call, I will discuss the challenges we are facing, the opportunities we see and why I am confident in the future. During the second quarter, our cash balance fell by $11 million as a result of the loss, inventory increase and accounts payable decrease.

此外，我們的核心 DPI 業務正面臨一些宏觀相關的不利因素。儘管我們預計這些挑戰不會在短期內消失，但考慮到充滿挑戰的經濟背景，我們將繼續在我們可以控制的業務方面取得進展。我對我們的未來保持樂觀。在今天的電話會議中，我將討論我們面臨的挑戰、我們看到的機會以及為什麼我對未來充滿信心。第二季度，由於虧損、庫存增加和應付帳款減少，我們的現金餘額減少了 1,100 萬美元。

This cash burn is, of course, higher than we would like it to be. As our cost-cutting efforts come into effect partially in the fourth quarter and in full in 2024, together with a projected increase in revenues, we expect to improve our cash flow and we are reiterating our expectations to be profitable in 2024. Our gross margin in the second quarter was 71% due to our deal mix. We continue to target a gross margin of 70% for 2024 despite expecting a lower gross margin in Q3 as a result of the specific deal mix. In July, we announced an increase of approximately $14 million in the allowance for credit losses relating to receivables arising from sales in 3 African countries.

當然，這種現金消耗比我們希望的要高。隨著我們的成本削減措施在第四季度部分生效並在 2024 年全面生效，加上預計收入增加，我們預計現金流將改善，並重申我們預計在 2024 年實現盈利。我們的毛利率由於我們的交易組合，第二季的成長率為71%。儘管預計第三季毛利率會因具體交易組合而降低，但我們仍將 2024 年毛利率目標定為 70%。 7 月，我們宣布增加約 1,400 萬美元的信貸損失準備金，這些損失與在 3 個非洲國家銷售產生的應收帳款有關。

We have been assessing the collectibility of these accounts receivable on a quarterly basis and in our most recent assessment, the company determined that these accounts previously disclosed as outstanding would not with reasonable certainty be collected. We are continuing our efforts to collect these amounts and believe we should be able to collect them. However, as I said, we can no longer state this with reasonable certainty. So we took an allowance for credit losses. As we announced in July, given the challenges facing our business, the Board formed an executive committee that has worked with management to identify and recommend opportunities for further improvement with a focus on driving sustainable profitability and enhancing shareholder value.

我們一直在按季度評估這些應收帳款的可收回性，在我們最近的評估中，該公司確定，以前披露為未清償的這些帳款將無法以合理的確定性收回。我們正在繼續努力收集這些款項，並相信我們應該能夠收集到它們。然而，正如我所說，我們無法再以合理的確定性來陳述這一點。因此，我們提列了信用損失準備金。正如我們在 7 月宣布的那樣，鑑於我們業務面臨的挑戰，董事會成立了一個執行委員會，與管理層合作，確定並建議進一步改進的機會，重點是推動可持續盈利能力和提高股東價值。

The executive committee and management agreed that the right direction is to maintain SECaaS as our main growth engine. In this area, we will continue to focus on network native security solutions. In our traffic management and analytics solutions, we are modifying our initiatives to prioritize profitability. In order to conserve cash, reach profitability in 2024 and ensure that we have staying power even as SECaaS takes longer to ramp up, we are implementing a cost reduction plan. Specifically, our actions will result in a reduction of approximately 20% from our current employee head count as well as other cost reductions. We expect this cost-cutting effort to save approximately $15, $1-5 million per year. The relevant employees that may be affected have already been notified. This cost reduction plan will have a onetime cost of approximately $2 million, which will be booked in the third quarter.

執行委員會和管理層一致認為，正確的方向是維持 SECaaS 作為我們的主要成長引擎。在這個領域，我們將繼續專注於網路原生安全解決方案。在我們的流量管理和分析解決方案中，我們正在修改我們的計劃以優先考慮盈利能力。為了節省現金、在 2024 年實現盈利並確保我們在 SECaaS 需要更長時間才能啟動的情況下仍具有持久力，我們正在實施一項成本削減計劃。具體來說，我們的行動將導致我們目前的員工人數減少約 20%，並減少其他成本。我們預計這項成本削減工作每年可節省約 15 美元、1-5 百萬美元。目前已通知可能受影響的相關員工。這項成本削減計劃的一次性成本約為 200 萬美元，將於第三季預訂。

Now I would like to discuss our different product lines. I would like to start by discussing our traffic management and analytics business addressed by our Allot Smart product line. The main use case, as you see today in CSP continues to be in traffic management, congestion management, quality of user experience, especially for video, policy and charging control and digital enforcement. As governments look to fight crime and terrorism, we see a growing interest globally in being able to block illegal activities such as drug trafficking child pornography and terrorism.

現在我想討論我們不同的產品線。我想先討論我們的 Allot Smart 產品線所解決的流量管理和分析業務。正如您今天在 CSP 中看到的那樣，主要用例仍然是流量管理、擁塞管理、用戶體驗質量，特別是視訊、策略和計費控制以及數位實施。隨著各國政府致力於打擊犯罪和恐怖主義，我們看到全球範圍內對阻止販毒、兒童色情和恐怖主義等非法活動的興趣日益濃厚。

We have solutions that address these issues. And we are seeing growing interest in our products. We will continue to pursue this direction as we believe this is a segment that will continue to grow. In CSPs, we see the need for analytics continuing, in traffic management use cases, such as fair use, policy-based charging and congestion management. We still see quite a few opportunities from low ARPU countries, some of which are to replace a competitive product. In our enterprise business, we continue to see demand for on-prem systems such as ours from enterprises in developing countries where bandwidth is relatively expensive.

我們有解決這些問題的解決方案。我們發現人們對我們的產品越來越感興趣。我們將繼續追求這個方向，因為我們相信這是一個將繼續成長的細分市場。在通訊服務提供者中，我們認為在流量管理用例中需要繼續進行分析，例如合理使用、基於策略的收費和擁塞管理。我們仍然看到來自低 ARPU 國家的相當多的機會，其中一些是替代競爭產品。在我們的企業業務中，我們不斷看到頻寬相對昂貴的發展中國家的企業對我們這樣的本地系統的需求。

In developed countries, such as North America and Europe, we see reduced demand from enterprises that are moving to the cloud with growing demand from government entities that require mostly for security reasons, on-prem solutions. Currently, after our deal with Broadcom, we remain the major solution provider for this need. Overall, we recognize that we are facing several challenges that continue to make it more difficult for us to forecast our business over short time frames. First, as we discussed in previous earnings calls, due to tighter headwinds and tighter expense control by the CSPs, it is taking longer to close DPI deals than in the past. And the total number of DPI bids for CSPs we are seeing is not low. Second, the move of CSPs to 5G stand-alone core is very slow, negatively impacting our ability to grow with our 5G NetProtect product. Third, in the enterprise market, we believe the growth we saw as a result of the Broadcom deal has peaked.

在北美和歐洲等已開發國家，我們看到遷移到雲端的企業的需求減少，而政府實體的需求不斷增長，這些機構主要出於安全原因需要本地解決方案。目前，在與博通達成協議後，我們仍然是滿足這項需求的主要解決方案提供者。總的來說，我們意識到我們面臨著一些挑戰，這些挑戰繼續使我們更難以在短時間內預測我們的業務。首先，正如我們在先前的財報電話會議中討論的那樣，由於不利因素更加嚴峻以及 CSP 更加嚴格的費用控制，完成 DPI 交易所需的時間比過去更長。而且我們看到的CSP的DPI投標總數並不低。其次，CSP 向 5G 獨立核心的遷移非常緩慢，這對我們利用 5G NetProtect 產品來成長的能力產生了負面影響。第三，在企業市場，我們相信博通交易帶來的成長已經達到頂峰。

As we stated in our last earnings call, while we continue to have a strong pipeline of large deals for the remainder of the year, the dynamics I mentioned, together with the potential lumpiness of large deals makes it challenging to forecast our DPI business over short time frames.

正如我們在上次財報電話會議中所說，雖然我們在今年剩餘時間內繼續擁有強大的大型交易管道，但我提到的動態以及大型交易的潛在混亂性使得短期內預測我們的DPI 業務具有挑戰性時間範圍。

I want to turn your attention now to what we see in our cybersecurity business and how the market is developing. As I have said previously, Allot is transforming into a cybersecurity company and this is where we see most of our future growth coming from. Our SECaaS revenues are growing steadily, albeit not at the pace we would like, as we continue to see slower deployment than expected.

我現在想請您關注我們的網路安全業務以及市場的發展。正如我之前所說，Allot 正在轉型為網路安全公司，這是我們未來大部分成長的來源。我們的 SECaaS 收入正在穩步增長，儘管沒有達到我們想要的速度，因為我們的部署速度仍然慢於預期。

Nevertheless, there are quite a few positive notes worth highlighting. I would like to start with the North American market. I am very happy to announce that a couple of months ago, Verizon business launched their network native security service, which incorporates Allot's NetworkSecure. I am very excited about this offering from Verizon which provides protection services for segments of Verizon's fixed wireless broadband business customers and help defend them against cyber threats.

儘管如此，還是有一些值得強調的正面因素。我想從北美市場開始。我很高興地宣布，幾個月前，Verizon 公司推出了他們的網路原生安全服務，其中包含了 Allot 的 NetworkSecure。我對 Verizon 的這項產品感到非常興奮，它為 Verizon 的固定無線寬頻業務客戶提供保護服務，並幫助他們抵禦網路威脅。

This cybersecurity service puts a layer of defense at the Internet base (inaudible) intersecting for us before they can even reach devices. Verizon believes that simple zero (inaudible) solutions like ours are especially helpful for small businesses, which might not have the in-house expertise to manage more complicated security measures. The service is being well received and we are discussing with Verizon various ways to expand its reach. I will note that Verizon did not generate any SECaaS revenues for Allot during the second quarter but Verizon will begin contributing to revenues in the third quarter.

這項網路安全服務在網路基礎（聽不清楚）上設置了一層防禦，甚至在它們到達設備之前就為我們提供了交叉。 Verizon 認為，像我們這樣的簡單零（聽不清楚）解決方案對小型企業特別有幫助，因為它們可能沒有內部專業知識來管理更複雜的安全措施。該服務受到好評，我們正在與 Verizon 討論擴大其覆蓋範圍的各種方法。我要指出的是，Verizon 在第二季沒有為 Allot 產生任何 SECaaS 收入，但 Verizon 將在第三季開始貢獻收入。

As I stated in earlier calls, I continue to believe that the Verizon opportunity is our single largest signed SECaaS opportunity. Furthermore, as other CSPs see Verizon's success, I believe some will follow suit. We are already getting enhanced interest from other operators to better understand what Verizon is doing and how they might do the same.

正如我在之前的電話會議中所說，我仍然相信 Verizon 的機會是我們簽署的最大的單一 SECaaS 機會。此外，隨著其他 CSP 看到 Verizon 的成功，我相信有些人也會跟著做。其他運營商已經對我們產生了更大的興趣，希望更好地了解 Verizon 正在做什麼以及他們將如何做同樣的事情。

On a bittersweet note, one of the operators we signed was a Canadian CSP, has decided not to launch the SECaaS service for now, as they are refocusing their business following a major network issue they had unrelated to Allot. This CSP is also an Allot Smart customer and have recently expanded significantly the (inaudible) business they have with us. Cancellation of this SECaaS launch is a significant contributor to the reduction in our ARR forecast for the year.

喜憂參半的是，我們簽約的營運商之一是一家加拿大 CSP，決定暫時不推出 SECaaS 服務，因為在發生與 Allot 無關的重大網路問題後，他們正在重新調整業務重點。該 CSP 也是 Allot Smart 客戶，最近大幅擴展了他們與我們的（聽不清楚）業務。這次 SECaaS 發布的取消是我們今年 ARR 預測降低的一個重要因素。

In APAC, we are also progressing well. Recently, we signed 2 additional SECaaS deals in APAC. One is a relatively small deal, where we deploy NetworkSecure in a small Pacific Island. The other is a DNS Secure deal with a major Tier 1 telecom operator with more than 50 million subscribers, most of whom are prepaid. The services will initially be offered to their postpaid customers and potentially later to other high-value customers. I believe these deals are a testament to the importance CSPs see in providing business and consumers with network-based security services. Also in Asia, Far EasTone or FET in Taiwan has experienced a very successful launch. Since the launch in December of 2022, the service has been expanding rapidly and we are now in the process of expanding the capacity to handle more subscribers.

在亞太地區，我們也進展順利。最近，我們在亞太地區簽署了另外 2 項 SECaaS 協議。其中一項是相對較小的交易，我們在太平洋的一個小島上部署 NetworkSecure。另一項是與一家主要一級電信業者達成的 DNS Secure 協議，該業者擁有超過 5,000 萬用戶，其中大部分是預付費用戶。這些服務最初將提供給他們的後付費客戶，稍後可能會提供給其他高價值客戶。我相信這些交易證明了通訊服務提供者在為企業和消費者提供基於網路的安全服務方面的重要性。同樣在亞洲，台灣的 Far EasTone 或 FET 的推出也非常成功。自 2022 年 12 月推出以來，該服務一直在迅速擴展，我們現在正在擴展容量以處理更多用戶。

I will note that our ARR from FET has not been growing even as the number of subscribers has ramped because FET committed to a minimum payment per month from day 1. That minimum has been exceeded, so we should start seeing ARR growth as the number of subscribers grow. FET and their president look at security service as strategic and important to their brand image and in line with their core commitments to their customers. As we discussed in the past, this is an excellent example of how successful SECaaS can be when the CSP aligns security with its strategy. It is noteworthy that this (inaudible) experience shows that on average, the security services blocked 47 attacks per user per month. I believe this is a strong validation of the importance and value of the network native security solution.

我要指出的是，儘管訂閱者數量有所增加，但FET 的ARR 並未增長，因為FET 承諾從第一天起每月支付最低付款額。該最低付款額已被超過，因此我們應該開始看到ARR 成長為訂戶成長。 FET 及其總裁將安全服務視為策略性的、對其品牌形象非常重要的服務，並且符合他們對客戶的核心承諾。正如我們過去所討論的，這是一個很好的例子，說明當 CSP 將安全性與其策略結合時，SECaaS 可以取得多麼成功。值得注意的是，這種（聽不清楚）體驗表明，安全服務平均每個用戶每月阻止 47 次攻擊。我相信這是對網路原生安全解決方案重要性和價值的有力驗證。

As we look at the market, we see that the direction and momentum of operators interested in launching network-based security services continues to be positive. We see that in many markets, the various operators provide services that are on par with respect to speed, coverage and reliability. As they look for differentiation, network-based security is emerging as an important element. Because it is a service native to the operator's network, network security is directly coupled to the access network itself.

當我們觀察市場時，我們發現有興趣推出基於網路的安全服務的營運商的方向和勢頭仍然是積極的。我們發現，在許多市場中，各個業者提供的服務在速度、覆蓋範圍和可靠性方面都相當。當他們尋求差異化時，基於網路的安全性正在成為一個重要元素。由於它是運營商網路原生的服務，因此網路安全直接耦合到接取網路本身。

There are several Tier 1 operators who have reached the conclusion of providing network-based security to their customers as of significant importance to them and they are discussing with us how to do so. In addition, we are in discussions with several other operators globally, where we hope to be able to conclude deals over the coming months. I would like to say a few words about convergence. CSPs worldwide, have been talking about convergence for quite a few years, mostly combining their fixed and mobile services. Unfortunately, many CSPs have been struggling to bring tangible value to their customers and basically provide unified billing and discounts. The Allot Secure platform combined security enforcements in the core on the DNS line and in the router under a unified management system and protocol. This is perhaps one of the few tangible convergence value CSPs can bring to their customers, offering a unified experience on both mobile and fixed access.

有幾家一級營運商已經得出結論，為客戶提供基於網路的安全對他們來說非常重要，他們正在與我們討論如何做到這一點。此外，我們正在與全球其他幾家營運商進行討論，希望能夠在未來幾個月內達成交易。關於融合，我想多說幾句。全球的通訊服務供應商多年來一直在談論融合，主要是將其固定和行動服務結合。不幸的是，許多通訊服務提供者一直在努力為客戶帶來有形價值，並基本上提供統一的計費和折扣。 Allot Secure 平台將 DNS 線路核心和路由器中的安全強制措施結合在統一的管理系統和協定下。這也許是 CSP 可以為其客戶帶來的少數有形融合價值之一，在行動和固定接取上提供統一的體驗。

We don't see CSPs starting with a convergence offering but we are in discussions with several CSPs in Europe that have launched our SECaaS service to mobile customers and are looking to expand it to a converged mobile plus fixed offering. As we discussed in previous calls, I want to remind you that we changed our strategy for the Allot Secure business. We are putting more emphasis on large strategic accounts that can have a high revenue impact while in small to medium deals, we are looking for minimum revenue thresholds. These changes reduce the number of new CSPs we can sign up. However, it allows us to focus our resources on the smaller number of CSPs that see more strategic value in the SECaaS service, which should drive profitable revenue growth for Allot. We remain excited about our SECaaS opportunity as we have a differentiated, scalable solution for CSPs.

我們認為 CSP 不會從融合產品開始，但我們正在與歐洲的幾家 CSP 進行討論，他們已經向行動客戶推出了我們的 SECaaS 服務，並希望將其擴展到融合的行動加固定產品。正如我們在之前的電話中討論的那樣，我想提醒您，我們改變了分配安全業務的策略。我們更重視能夠產生高收入影響的大型策略客戶，而在中小型交易中，我們正在尋找最低收入門檻。這些變化減少了我們可以註冊的新 CSP 的數量。然而，它使我們能夠將資源集中在數量較少的 CSP 上，這些 CSP 在 SECaaS 服務中看到了更多的策略價值，這應該會推動 Allot 的獲利性收入成長。我們對 SECaaS 機會仍然感到興奮，因為我們為 CSP 提供了差異化、可擴展的解決方案。

Our SECaaS revenues for the second quarter were $2.4 million and the SECaaS ARR at the end of the second quarter was $9.7 million, a significant growth year-over-year. As of June 30, 2023, we have 28 signed customers but 7 of them have been canceled and discontinued mainly due to our strategy to focus on large customers. Unfortunately, only 14 have started to generate revenues. Most of them are relatively small operators and the majority of them launched the service only to a portion of their subscriber base. There are a few more launches planned for this year.

我們第二季的 SECaaS 營收為 240 萬美元，第二季末的 SECaaS ARR 為 970 萬美元，較去年同期大幅成長。截至2023年6月30日，我們有28個簽約客戶，但其中7個已被取消和終止，主要是由於我們專注於大客戶的策略。不幸的是，只有 14 個已經開始產生收入。他們中的大多數都是相對較小的運營商，大多數只向部分用戶群推出該服務。今年也計劃推出更多產品。

Looking ahead, I want to summarize our expectations for 2023. We expect SECaaS revenues for 2023 to be around $11 million. We expect the SECaaS ARR for December '23 to be between $12 million and $14 million and our total ARR, including support and maintenance to be between $51 million and $55 million. Regarding our total revenue, operating loss and cash flow guidance, we are providing a wide range because of a specific large expansion deal we expect to close this year. We expect our total revenues for the full year 2023 to be between $95 million and $110 million.

展望未來，我想總結我們對 2023 年的預期。我們預計 2023 年 SECaaS 收入約為 1100 萬美元。我們預計 23 年 12 月的 SECaaS ARR 將在 1,200 萬美元至 1,400 萬美元之間，我們的總 ARR（包括支援和維護）將在 5,100 萬美元至 5,500 萬美元之間。關於我們的總收入、營業虧損和現金流量指導，我們提供了廣泛的指導，因為我們預計今年將完成一項特定的大型擴張交易。我們預計 2023 年全年的總收入將在 9,500 萬美元至 1.1 億美元之間。

Non-GAAP operating loss to be between $38 million and $44 million, including the $14 million doubtful debt reserve and cash burn for the whole year to be between $24 million and $44 million. As I stated, we remain committed to reach profitability for the full year 2024. This will be achieved through some revenue growth, mainly in SECaaS combined with tight expense control. We expect the third quarter revenues to be approximately $25 million, but with a lower-than-average gross margin of 50% due to the specific expected deal mix.

非 GAAP 營運虧損將在 3,800 萬美元至 4,400 萬美元之間，其中包括 1,400 萬美元的可疑債務準備金，全年現金消耗將在 2,400 萬美元至 4,400 萬美元之間。正如我所說，我們仍然致力於在 2024 年全年實現盈利。這將透過一些收入成長來實現，主要是在 SECaaS 方面，並結合嚴格的費用控制。我們預計第三季營收約為 2,500 萬美元，但由於具體的預期交易組合，毛利率低於平均 50%。

Our strategy remains the same. While we believe that our DPI business has limited growth potential and the lumpiness of the business makes it difficult to forecast over short time frames, we think we can maintain a stable level of revenues through new use cases and market share gains. And we are using DPI's profitability and cash flow generation to invest in our SECaaS business because our SECaaS business is where we see significant future growth opportunities. While our SECaaS revenues are being recognized later than we would have liked and later than we expected, I remain convinced of the large potential of this business and I'm confident that it will grow significantly in the coming years. I have full faith in our company, our team and our products and I believe the actions we are taking to make our growth -- and I believe in the actions we are taking to make our goals achievable.

我們的策略保持不變。雖然我們認為我們的 DPI 業務成長潛力有限，而且業務的塊狀性使其難以在短期內進行預測，但我們認為我們可以透過新的用例和市場份額的成長來維持穩定的收入水平。我們正在利用 DPI 的盈利能力和現金流生成來投資我們的 SECaaS 業務，因為我們的 SECaaS 業務是我們看到未來巨大成長機會的地方。雖然我們的 SECaaS 收入的確認晚於我們的預期和預期，但我仍然相信這項業務的巨大潛力，我相信它將在未來幾年顯著增長。我對我們的公司、我們的團隊和我們的產品充滿信心，我相信我們為實現成長所採取的行動——我也相信我們為實現我們的目標所採取的行動。

And now I would like to open the call for questions and answers. And Ziv and myself will be available to take your questions. Operator?

現在我想開始問答徵集。 Ziv 和我本人將隨時回答您的問題。操作員？

(Operator Instructions) The first question is from Eric Martinuzzi of Lake Street. Please go ahead.

（操作員說明）第一個問題來自 Lake Street 的 Eric Martinuzzi。請繼續。

I have a question regarding the bad debt write-off, the $14 million credit allowance. Are we still doing business with the reseller or resellers in Africa that were responsible for that write-off?

我有一個關於壞帳沖銷、1400 萬美元信用額度的問題。我們是否仍在與負責核銷的非洲經銷商開展業務？

Eric, we are not doing new business with this reseller but we are making an effort to collect the money. But we don't have any new deals.

艾瑞克，我們不會與該經銷商開展新業務，但我們正在努力收款。但我們沒有任何新的交易。

The strategy examination that you announced on July 17, are we complete with that? Or is that still an ongoing process? Obviously, we're focused on growth on SECaaS and a return to profitability. But does that say that the strategic examination is complete?

你們7月17日宣布的戰略檢查，我們完成了嗎？或者這仍然是一個持續的過程？顯然，我們專注於 SECaaS 的成長和獲利能力的恢復。但這是否意味著戰略審查已經完成？

I would say that we've done a lot of work over the past few weeks on this. We've reached some high-level conclusions both on the general strategic direction that we are continuing to focus on the SECaaS opportunities because we believe in it. We've reached the conclusion that we need to significantly reduce our cost structure, which we are implementing already. And I think that we will continue to work to see how we both implement this and continue to bring the company back to growth in the future.

我想說，過去幾週我們在這方面做了很多工作。我們就整體策略方向得出了一些高層結論，即我們繼續關注 SECaaS 機會，因為我們相信它。我們得出的結論是，我們需要大幅降低成本結構，我們已經在實施這項方案。我認為我們將繼續努力，看看我們如何實施這一目標，並繼續使公司在未來恢復成長。

So I wouldn't say it's complete. I would say it's a work in process but we've done a lot until now.

所以我不會說它是完整的。我想說這是一項正在進行中的工作，但到目前為止我們已經做了很多工作。

Okay. And I appreciate the color on the full year outlook as well as the Q3 revenue of $25 million and I think you said it was 50% on the gross profit. What should we be thinking about for a normalized operating expense post the restructuring?

好的。我很欣賞全年展望的色彩以及 2500 萬美元的第三季收入，我想你說過這是毛利的 50%。對於重組後的正常營運費用，我們應該考慮什麼？

So as we said, the total cost reduction is supposed to be around $15 million on a yearly basis. And let's assume the baseline could be Q2 expenses, most of this will be in the OpEx, smaller part, it will be in the core. But all together, as we said, we are positive -- be positive early in 2024.

正如我們所說，每年總成本削減預計約為 1500 萬美元。我們假設基準可能是第二季的支出，其中大部分將在營運支出中，較小的部分將在核心中。但正如我們所說，總的來說，我們持積極態度——在 2024 年初保持積極態度。

The next question is from Nehal Chokshi of Northland Capital Markets.

下一個問題來自 Northland Capital Markets 的 Nehal Chokshi。

Yes. Ziv, I'm sorry, I couldn't hear you that well. What was the comment? What was the detail on the OpEx run rate that you had just given out, could you say that again? I'm sorry.

是的。 Ziv，對不起，我聽不清楚。有什麼評論？您剛才給出的營運支出運行率的詳細資訊是什麼，您能再說一遍嗎？對不起。

So the baseline is the Q2 expenses. And the $15 million reduction in cost, most of it will be in expenses and in smaller part will be in COGS. But all of this should bring us to be profitable in 2024. But as was mentioned, we will see the full effect of this cost cutting on the COGS at the end of the year.

所以基線是第二季的支出。成本減少了 1500 萬美元，其中大部分將用於支出，小部分將用於銷貨成本。但所有這些都應該讓我們在 2024 年實現盈利。但正如前面提到的，我們將在年底看到成本削減對銷貨成本的全面影響。

Okay. Understood. And when you say profitable in calendar '24. Does that mean profitable in each quarter of calendar '24? Profitable for the full year '24? Or just profitable by the end of '24?

好的。明白了。當你說「24 日曆年獲利」時。這是否意味著 24 世紀每季都獲利？ 24 年全年獲利？還是到 24 年底就獲利了？

It means full year of 2024, doesn't mean each one of the quarter, as we mentioned already in the previous quarter.

正如我們在上一季中已經提到的那樣，它表示 2024 年全年，並不表示每季。

Okay. And so, looking into the September quarter, what's the worst-case scenario you see transpiring with respect to the DPI business?

好的。那麼，展望 9 月季度，您認為 DPI 業務最壞的情況是什麼？

Not quite sure how to answer that. I know that's -- and I know and honestly, I'm not quite sure of the question, is it with the forecast for the revenue or the guidance, I would say, for the revenues in the third quarter. So maybe if you can elaborate what you're looking for, I can try and help.

不太確定如何回答這個問題。我知道，老實說，我不太確定這個問題，是對收入的預測，還是對第三季收入的指導。所以也許如果你能詳細說明你在尋找什麼，我可以盡力提供協助。

Yes. Okay. Let me be a little bit more explicit. So your full year guidance of $95 million to $110 million, that's a big range given that you have 2 quarters left. And what I'm trying to figure out is, if you basically see this $25 million that you did in the June quarter as a sustainable level given your order book and the uncertainty is whether or not you have an inflection in DPI within the December quarter? Or is there uncertainty with respect to even the September quarter revenue level?

是的。好的。讓我說得更明確一點。因此，您的全年指引為 9,500 萬美元至 1.1 億美元，考慮到剩下 2 個季度，這是一個很大的範圍。我想弄清楚的是，考慮到您的訂單，您是否基本上將 6 月份季度的 2500 萬美元視為可持續水平，而不確定性是您在 12 月份季度內 DPI 是否出現變化？或者甚至九月季度的營收水準也存在不確定性嗎？

So Nehal, as we talked about this issue also in previous quarter. Even at this point, 1 month before the end of the quarter, we don't have all the revenues in hand. So when we say that's our focus for the third quarter, the $25 million, this is our focus. We don't have it in hand. So for Q2 we don't have all the revenues of Q2 in hand. So when we said that the range is $95 million to $110 million, this is our forecast. It doesn't mean that we have in hand the $95 million and we are just waiting for the update. This is the normal course of the industry. It was the same situation also a year ago and 2 years ago.

Nehal，正如我們在上個季度討論過這個問題一樣。即使此時，距離本季結束還有 1 個月，我們也沒有掌握所有收入。因此，當我們說這是我們第三季的重點時，即 2500 萬美元，這就是我們的重點。我們手上沒有它。因此，對於第二季度，我們手頭上並沒有第二季度的所有收入。因此，當我們說範圍是 9,500 萬美元到 1.1 億美元時，這就是我們的預測。這並不意味著我們手頭上有 9500 萬美元，我們只是在等待更新。這是業界的常態。一年前和兩年前也是同樣的情況。

Okay. Understood. And how do you know that the DPI softness is certainly macro related as opposed to say, "hey, encryption is reducing irrelevant to the DPI market or some other market phenomenon that might be going on".

好的。明白了。您如何知道 DPI 軟度肯定與宏觀相關，而不是說「嘿，加密正在減少，與 DPI 市場或可能正在發生的其他一些市場現象無關」。

Again, I think it's very hard -- it's hard for me to really differentiate what the macro level consists of. I do see the operators tightening very much their budgets and expenses. You've seen operators in the U.S. announced layoffs and reduction in costs.

再說一遍，我認為這非常困難——我很難真正區分宏觀層面的內容。我確實看到運營商非常緊縮預算和開支。您已經看到美國的運營商宣布裁員和降低成本。

We've seen that in operators in Europe. So this affects, I think, not only Allot, I think it probably affects other technology providers who are selling to the operators. Now I don't think that there's, I don't see technically a material change in the ability of DPI to provide value because of encryption or something like that. We're dealing with increased encryption and we have certain algorithms and I would say, certain algorithms, so some of them, (inaudible) some of them based on AI and machine learning to help us cope with that.

我們已經在歐洲的營運商中看到了這一點。因此，我認為這不僅會影響 Allot，而且可能會影響其他向營運商銷售產品的技術提供者。現在我認為，從技術上講，我沒有看到 DPI 提供價值的能力因加密或類似的原因而發生重大變化。我們正在處理增加的加密，我們有某些演算法，我想說的是，某些演算法，所以其中一些（聽不清楚）一些基於人工智慧和機器學習來幫助我們應對這個問題。

I don't think that, that's a major contributor that the macro environment is definitely harder for operators there as a result for companies providing them with the technology.

我不認為這是宏觀環境對那裡的運營商來說肯定更加困難的一個主要因素，因為對於為他們提供技術的公司來說。

The next question is from Marc Silk of Silk Investment Advisors.

下一個問題來自 Silk Investment Advisors 的 Marc Silk。

I had questions on the July 20 announcement of a Tier 1 with $150 million, mostly prepaid customers. So you're initially offering it to the postpaid customers and then potentially to other high-value customers. Does that include the prepaid customers? Or that's basically something that's not a product for prepaid?

我對 7 月 20 日宣布的價值 1.5 億美元的一級（主要是預付費客戶）有疑問。因此，您最初將其提供給後付費客戶，然後可能提供給其他高價值客戶。這包括預付費客戶嗎？還是這基本上不是預付費產品？

High-value customers include the -- both postpaid customers, which typically pay a lot more than prepaid and some of the prepaid customers as well. Prepaid means different things in different geographies. It's -- I mean, that was in prepaid, obviously but it's not necessarily just very, very poor people who have very, very little money and are trying to save every cent. It's also a way of how people spend their money and how they choose to contract with the telecom operator. So high-value customers or a mix of both.

高價值客戶包括後付費客戶（通常支付的費用比預付費高得多）和一些預付費客戶。預付費在不同地區有不同的意義。我的意思是，顯然這是預付的，但不一定只是非常非常貧窮的人，他們的錢非常非常少，並且正在努力節省每一分錢。這也是人們如何花錢以及如何選擇與電信業者簽訂合約的一種方式。所以高價值客戶或兩者兼具。

Now having said that, the majority of the, as you can imagine, this is an APAC customer, tens of millions of customers. And we said more than [50%]. We can assume that a majority of them are really very low revenue producing, a very low ARPU type customers to the operator and they will probably not be relevant or not relevant to a large extent to the service.

話雖如此，正如你可以想像的那樣，大多數是亞太地區的客戶，數千萬的客戶。我們說超過[50%]。我們可以假設他們中的大多數實際上是營運商的收入非常低、ARPU 類型非常低的客戶，他們可能與服務不相關或在很大程度上不相關。

Okay. So the report that China continues to basically try to infiltrate Taiwan as far as with phishing et cetera, et cetera. Are you seeing that from other Asian countries that might be a little, I don't know, an impetus to use your products or you don't really hear that from some of these customers?

好的。因此，該報告稱，中國基本上繼續試圖透過網路釣魚等方式滲透台灣。您是否從其他亞洲國家/地區看到這可能會有點（我不知道）使用您的產品的動力，或者您確實沒有從其中一些客戶那裡聽到這種說法？

No. I haven't heard that as the reason, or motivation from any of our customers or any of the operators, either in Taiwan or elsewhere.

不。我還沒有聽說過我們的任何客戶或任何運營商（無論是在台灣還是其他地方）的原因或動機。

Okay. And then I'm just concerned about this 2024 profitability, which I know you're trying to do the right things here. But I'm worried that we could have a recession next year and then you have another excuse. So I think it's important that the executive committee, as you're looking at this, as they go throughout the rest of the year, they're going to really make an assessment if you get to -- you can get to profitability because the story is getting a little old and it's frustrating because you have fantastic technology.

好的。然後我只關心 2024 年的獲利能力，我知道你們正在努力做正確的事。但我擔心明年我們可能會陷入衰退，然後你就有另一個藉口。因此，我認為執行委員會在今年剩餘時間裡，當你看到這個問題時，他們將真正進行評估，如果你能夠實現盈利，因為故事有點老了，這令人沮喪，因為你擁有出色的技術。

So I think they got to kind of maybe think outside the box because your stock price is not reflecting your revenues or the success of your product. So has that been discussed as well as saying that maybe a bigger company could do better?

所以我認為他們必須跳出框框思考，因為你的股價並不能反映你的收入或產品的成功。那麼，是否已經討論過這一點，並說也許更大的公司可以做得更好？

I shared what I can in the discussions that with -- the conclusions that we had with the Executive Committee. And I think, as I said in response to a previous question, by someone else on this call that the work is not done. We've reached the conclusions until now and we will continue to work to make sure that we find a way both to reach profitability next year and to create shareholder value.

我在討論中分享了我們與執行委員會的結論。我認為，正如我在回答之前的問題時所說的那樣，其他人在這次電話會議上表示工作尚未完成。到目前為止，我們已經得出了結論，我們將繼續努力，確保找到一種既能在明年實​​現盈利又能創造股東價值的方法。

Okay. And on a positive note, I did see an advertisement for Verizon and I did call them and it's being well received. And they said there haven't been any issues with the customers. And they say, usually, if people call us back, then there's problems and they haven't really got any call back. So let's hope that this can accelerate growth and maybe bring some other big customers on board. So good luck, I guess and I'd like to see the Board and management buy shares in the open market. It's the only way to show confidence because stock is cheap, money talks.

好的。從積極的方面來看，我確實看到了 Verizon 的廣告，我也給他們打電話，他們很受歡迎。他們表示，客戶沒有遇到任何問題。他們說，通常情況下，如果人們回電給我們，那麼就會出現問題，而他們實際上沒有收到任何回電。因此，我們希望這能夠加速成長，並可能吸引其他一些大客戶加入。我想祝你好運，我希望看到董事會和管理層在公開市場上購買股票。這是表現出信心的唯一方法，因為股票很便宜，有錢能使鬼推磨。

The next question is from Rory Wallace of Outbridge (sic) [Outerbridge].

下一個問題來自 Outbridge（原文如此）[Outerbridge] 的 Rory Wallace。

Following on Marc's point there. It does seem like Verizon is showing a pretty good commitment to the service with the way they've launched it. The way they priced it, they're certainly pricing it is a pretty incrementally valuable service of $10 or $20 per line.

接下來是馬克的觀點。 Verizon 似乎確實透過推出這項服務的方式展現了對該服務的良好承諾。按照他們定價的方式，他們肯定將其定價為每行 10 或 20 美元，這是一項非常有價值的服務。

And there's obviously 30 million Verizon business lines across their group. But currently, probably 1 million of that or less is on FWA. So you mentioned potential expansion opportunity within Verizon based on how the service seems to be going for them so far, it would seem logical that they might expand at some point. But I want to understand your thought process around that and also just when you talk about it being the largest contract that you've won and the biggest opportunity you see, what are you sort of basing that analysis around?

Verizon 集團顯然擁有 3,000 萬條業務線。但目前，FWA 上可能有 100 萬或更少。因此，您提到了 Verizon 內部潛在的擴張機會，根據迄今為止該服務的進展情況，他們可能會在某個時候擴張似乎是合乎邏輯的。但我想了解您對此的思考過程，而且當您談論這是您贏得的最大合約和您看到的最大機會時，您的分析基礎是什麼？

Is it, the FWA opportunity over a few years' time and that alone is enough to make it the biggest? Or is it really predicated on kind of growing outside of FWA into the full business group or even the consumer group?

是不是，幾年後的 FWA 機會就足以使其成為最大的機會？或者它真的是基於從 FWA 之外發展成為完整的業務集團甚至消費者集團嗎？

Okay. So I'm obviously very excited about what's happening in Verizon and so far, it looks to be successful for everyone. And that's great. Now right now, as you mentioned, it has been sold only to fixed wireless access customers. It's, we're talking and I mentioned this in my notes before, we're talking to Verizon about -- because it's going well about possibility to expand that to fund the service and the reach of the service beyond what it is today. I cannot elaborate whether this will be expanded to and if it will be expanded to anyone. When -- and if and when things are concluded, as Verizon allows us to share, I will be happy to share it.

好的。因此，我顯然對 Verizon 所發生的事情感到非常興奮，到目前為止，它看起來對每個人來說都是成功的。那太好了。現在，正如您所提到的，它僅出售給固定無線存取客戶。我們正在討論，我之前在筆記中提到過這一點，我們正在與 Verizon 討論——因為擴大這一範圍以資助該服務以及該服務的覆蓋範圍超出目前的範圍的可能性進展順利。我無法詳細說明這是否會擴展到以及是否會擴展到任何人。當事情結束時，正如 Verizon 允許我們分享的那樣，我將很樂意分享。

Regarding my comment on the size -- the potential size of Verizon, I think that the contract we have is with Verizon, the company. No, we don't have a contract on fixed wireless access in Verizon. We have a contract with Verizon. They have launched it to a specific segment. When I look at overall, I look at the size of Verizon and the potential where this can go, I look at the -- not just the size, number of subscribers but also the fact that Verizon is in the United States with high revenue per customer and high ARPU.

關於我對威瑞森公司規模的評論——威瑞森公司的潛在規模，我認為我們的合約是與威瑞森公司簽訂的。不，我們沒有與 Verizon 簽訂固定無線接入合約。我們與 Verizon 簽訂了合約。他們已將其推出到特定細分市場。當我審視整體時，我會關注 Verizon 的規模以及其發展潛力，我會關注的不僅僅是規模、用戶數量，還有 Verizon 在美國的平均收入很高這一事實。客戶和高 ARPU。

You mentioned that the price that they're putting out in the market for the security services between $10 to $20 a month. And I think that translates to a very large opportunity for us. How much of that opportunity will materialize, I do not know. But anyway, I look at it, it's, I believe today that it's the single largest current opportunity that we have.

您提到他們在市場上提供的安全服務價格為每月 10 至 20 美元。我認為這對我們來說意味著一個非常大的機會。我不知道這個機會有多少會實現。但無論如何，我看看它，我相信這是我們目前擁有的最大的機會。

Yes, that makes a lot of sense and I appreciate those comments. So yes, good work and congratulations on that launching and (inaudible) so far, to your comments on the rest of the U.S. market or sort of halo opportunities coming out of Verizon watching the service. Can you be any more specific about the nature of those conversations? I know you -- it takes a long time to win these Tier 1s and we've been knocking on their doors and having meetings of senior executives for some time in some of these companies. But is it really potentially accelerating actual signings of large merchant opportunities for you?

是的，這很有意義，我很欣賞這些評論。所以，是的，幹得好，恭喜您的推出，以及（聽不清楚）到目前為止，您對美國其他市場的評論，或 Verizon 觀看該服務帶來的光環機會。您能更具體地說明這些對話的性質嗎？我了解您——贏得這些一級公司需要很長時間，我們已經敲開他們的大門，並在其中一些公司召開了高級管理人員會議。但這真的有可能加速您與大型商家的實際簽約嗎？

I think you have -- as you said correctly, it's a long process. It takes time. It's hard for me to predict any short-term revenue, short term, sorry, results. So I would rather not create any expectations that I may not be able to stand behind. So I think we're talking to the other operators. I think it's interesting, think there's potential there but beyond that, I wouldn't comment.

我認為你已經——正如你所說，這是一個漫長的過程。這需要時間。我很難預測任何短期收入，短期的，抱歉，結果。所以我寧願不要創造任何我可能無法支持的期望。所以我認為我們正在與其他運營商交談。我認為這很有趣，認為那裡有潛力，但除此之外，我不會發表評論。

Got it. And then as far as that Tier 1 Canadian operator, they've had a few things come up and it's not totally shocking to hear that, I guess, they're pushing out the launch. I just wanted to be clear, are they backing away from offering SECaaS at any point in time? Or is it just that they sort of deferred the launch date to an unknown future date, so you've kind of conservatively taken that out of any future projections?

知道了。然後，就加拿大一級運營商而言，他們遇到了一些問題，我想，聽到他們正在推遲發布，這並不完全令人震驚。我只是想澄清一下，他們是否會在任何時候放棄提供 SECaaS？或者只是他們將發布日期推遲到了未知的未來日期，所以你保守地將其從任何未來的預測中剔除？

And then I think you mentioned they're still taking DPI equipment from Allot. And I was wondering if that might be part of the reason for the Q3 gross margin being lower, might be that maybe there was a bundled thought process around how you structure that contract? Just trying to understand because the gross margin, did you say 50% or 60% for Q3, but it's a lot lower than the gross margin you've had in any other quarter?

然後我想你提到他們仍在從 Allot 取得 DPI 設備。我想知道這是否可能是第三季毛利率較低的部分原因，可能是圍繞如何建構合約存在捆綁的思維過程？只是想了解一下，因為你說第三季的毛利率是 50% 還是 60%，但它比你在任何其他季度的毛利率都低很多？

So I said 50% for Q3, 50%, 5-0% for Q3, there's no difference between postponing indefinitely to not doing because it's subject to change anyway with the outlook. So right now, we're not doing it. That's how we look at it. In the future, if you (inaudible) many things. It's obviously no longer in any of our forecasts. And regarding the Q3 projected margin, it's very low and it's related to a mix of a few deals. Well, beyond that I don't want to specify where exactly it's coming from.

所以我說第三季是 50%，第三季是 50%，5-0%，無限期延後和不做之間沒有差別，因為無論如何，前景都會改變。所以現在我們不這樣做。我們就是這樣看的。將來，如果你（聽不清楚）很多事情。顯然，它不再出現在我們的任何預測中。至於第三季的預期利潤率，它非常低，並且與一些交易有關。好吧，除此之外我不想具體說明它到底來自哪裡。

Okay. That's fair. And then with sort of other large opportunity on Vodafone for HomeSecure, I think you mentioned the convergence of mobile and then fixed services. But can you comment any more on the opportunity with Vodafone or any of these other fixed line deals that you've won for the HomeSecure product?

好的。這還算公平。然後，關於沃達豐 HomeSecure 的其他重大機會，我想您提到了行動服務和固定服務的融合。但您能否對沃達豐的機會或您為 HomeSecure 產品贏得的任何其他固定電話交易發表更多評論？

Like we announced, I don't remember when but a while ago, we signed an agreement with Vodafone to launch the HomeSecure product. And that's and we're very hopeful that this will launch and will be successful. I don't have other comments on that. We're talking to various other operators, both in Europe and in other places about launching HomeSecure. It's one of our product lines. We are actively selling it. And I'm not sure I have much more to add beyond that.

就像我們宣布的那樣，我不記得是什麼時候，但不久前，我們與沃達豐簽署了一項協議，推出 HomeSecure 產品。這就是我們非常希望它能夠啟動並取得成功。對此我沒有其他評論。我們正在與歐洲和其他地方的其他業者討論推出 HomeSecure。這是我們的產品線之一。我們正在積極銷售它。我不確定除此之外還有什麼要補充的。

Okay. And then the operating expense run rate that you mentioned, you used Q2, you previously said Q3 would come down from Q2 levels out before this most recent cost reduction actions. So, is there some cushion in that? Or is there a reason why that prior sort of expected step down in the Q3 OpEx level wouldn't have been happening anyway?

好的。然後，您提到的營運費用運行率，您使用了第二季度，您之前說過第三季度將比最近的成本削減行動之前的第二季度水準下降。那麼，這裡面有緩衝嗎？或者是否有一個原因可以解釋為什麼之前預期的第三季度營運支出水準的下降不會發生？

That's the point. In Q3, as we said, we are going to book the $2 million of onetime (inaudible) expenses. And the other expenses would be roughly in the same level as the second quarter.

這才是重點。正如我們所說，在第三季度，我們將記入 200 萬美元的一次性（聽不清楚）費用。其他支出將與第二季大致持平。

Okay. Got it. And then, in terms of working capital, you had the inventory come up quite a bit. I guess some of that's going to be related to this, the lower-margin business. But what should we expect from working capital going forward? I mean is, is your goal going to be to kind of bring back these days of inventory and receivables and payables kind of back to where they were? And that should be a tailwind for cash flow at some point letting alone that $14 million bad debt receivable that's still sitting out there. I mean is it fair to think that working capital should normalize at some point?

好的。知道了。然後，就營運資金而言，庫存增加了很多。我想其中一些與利潤率較低的業務有關。但我們對未來的營運資金該有什麼期望呢？我的意思是，您的目標是否是將這些天的庫存、應收帳款和應付帳款恢復到原來的水平？這在某種程度上應該會成為現金流的順風車，更不用說仍然存在的 1400 萬美元的應收壞帳了。我的意思是，認為營運資本在某個時候應該正常化是否公平？

Currently, I wouldn't take it into account. It can sharply go down but definitely, it will not be increased further.

目前，我不會考慮它。它可以急劇下降，但絕對不會進一步增加。

This concludes the question-and-answer session. Mr. Antebi, would you like to make your concluding statement?

問答環節到此結束。安特比先生，您願意做總結發言嗎？

Yes. I want to thank you all again for joining this call. And for asking the questions and participating and I look forward to talking to you in the next conference call next quarter. Thank you very much.

是的。我想再次感謝大家參加這次電話會議。對於提問和參與，我期待在下個季度的下一次電話會議中與您交談。非常感謝。

Thank you. This concludes the Allot Second Quarter 2023 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.

謝謝。 Allot 2023 年第二季業績電話會議至此結束。感謝您的參與。您可以繼續並斷開連線。