Ambarella Inc (AMBA) 2024 Q1 法說會逐字稿

Thank you for standing by, and welcome to Ambarella's First Quarter of Fiscal Year 2024 Earnings Conference Call. (Operator Instructions) As a reminder, today's program is being recorded.

感謝您的支持，歡迎來到 Ambarella 2024 財年第一季度收益電話會議。 （操作員說明）提醒一下，今天的節目正在錄製中。

And now I'd like to introduce your host for today's program, Mr. Louis Gerhardy, Vice President, Corporate Development. Please go ahead, sir.

現在我想介紹一下今天節目的主持人，公司發展部副總裁 Louis Gerhardy 先生。請繼續，先生。

Thank you, Jonathan.

謝謝你，喬納森。

Good afternoon, and thank you for joining our First Quarter Fiscal Year 2024 Financial Results Conference Call. On the call with me today is Dr. Fermi Wang, President and CEO; and Brian White, CFO. The primary purpose of today's call is to provide you with information regarding the results for our first quarter of fiscal year 2024.

下午好，感謝您參加我們的 2024 財年第一季度財務業績電話會議。今天與我通話的是總裁兼首席執行官 Fermi Wang 博士；首席財務官布賴恩·懷特 (Brian White)。今天電話會議的主要目的是向您提供有關我們 2024 財年第一季度業績的信息。

The discussion today and the responses to your questions will contain forward-looking statements regarding our projected financial results, financial prospects, market growth and demand for our solutions, among other things. These statements are subject to risks, uncertainties and assumptions. Should any of these risks or uncertainties materialize or should our assumptions prove to be incorrect, our actual results could differ materially from these forward-looking statements. or under no obligation to update these statements.

今天的討論和對您問題的回答將包含有關我們預計的財務結果、財務前景、市場增長和對我們解決方案的需求等的前瞻性陳述。這些陳述受風險、不確定性和假設的影響。如果這些風險或不確定性中的任何一個成為現實，或者如果我們的假設被證明是不正確的，我們的實際結果可能與這些前瞻性陳述存在重大差異。或沒有義務更新這些聲明。

These risks, uncertainties and assumptions as well as other information on potential risk factors that could affect our financial results are more fully described in the documents we filed with the SEC, including the Annual Report and Form 10-K we filed on March 31, 2023 for fiscal year 2023 ending January 31, 2023. Access to our first quarter fiscal 2024 results press release, transcripts, historical results, SEC filings and a replay of today's call can be found on the Investor Relations page of our website.

這些風險、不確定性和假設以及可能影響我們財務業績的潛在風險因素的其他信息在我們向美國證券交易委員會提交的文件中有更全面的描述，包括我們於 2023 年 3 月 31 日提交的年度報告和 10-K 表格截至 2023 年 1 月 31 日的 2023 財年。可以在我們網站的投資者關係頁面上找到我們的 2024 財年第一季度業績新聞稿、成績單、歷史業績、SEC 文件和今天電話會議的重播。

Fermi will first provide a business update for the quarter, Brian will review the financial results and outlook, and then we'll be available for your questions. Fermi?

Fermi 將首先提供本季度的業務更新，Brian 將審查財務結果和前景，然後我們將回答您的問題。費米？

Thank you, Louis, and good afternoon. Thank you for joining our call today.

謝謝你，路易斯，下午好。感謝您今天加入我們的電話會議。

Our Q1 results were slightly ahead of our expectations despite the significant headwinds from the ongoing semiconductor industry cyclical downturn. We are not allowing this difficult environment to distract us from further developing our AI business.

儘管持續的半導體行業周期性低迷帶來了重大阻力，但我們的第一季度業績略高於我們的預期。我們不允許這種困難的環境分散我們進一步發展人工智能業務的注意力。

Before I talk about the details of the quarter with all the [cross currents] in the market together with the other exciting developments in the AI market, so this will be a good time to review our strategic vision. Simply put, our transformation into an AI company is well underway, with AI already representing 45% of our total revenue last year and an estimated 60% this year. Now with our CV3 platform, we are expanding into a new phase of AI market development.

在我談論本季度的細節以及市場上的所有 [cross currents] 以及 AI 市場的其他令人興奮的發展之前，現在是回顧我們戰略願景的好時機。簡而言之，我們正在向 AI 公司轉型，去年 AI 收入已占我們總收入的 45%，今年估計佔 60%。現在有了我們的 CV3 平台，我們正在擴展到 AI 市場發展的新階段。

The AI market is at a very early stage. It is also dynamic with many technologies and [location] emerging. With all excitement about AI, the key to our continued success will be our focus and the degree to which we can leverage our unique core competencies. Even with our focus, our current service available market, or SAM, is sizable, exceeding $4 billion this year and approaching $10 billion in fiscal year 2028.

人工智能市場處於非常早期的階段。隨著許多技術和[位置]的出現，它也充滿活力。人工智能令人興奮，我們持續成功的關鍵將是我們的重點和我們可以在多大程度上利用我們獨特的核心競爭力。即使有我們的重點，我們當前的可用服務市場 (SAM) 規模也很大，今年超過 40 億美元，到 2028 財年將接近 100 億美元。

So what are we focused on? Ambarella is focused on deep learning AI processors and software, which are replacing the legacy and less powerful traditional machine learning approaches. With the deep learning market, the AI processor market has been dominated by training processors using servers typically for the cloud, data center or enterprise. Our focus is our AI inference, which is where AI models get deployed and are practically utilized by end users. As the AI market begin to mature, most third-party research firms forecast the size of influence AI to surpass training AI.

那麼我們關注的是什麼？ Ambarella 專注於深度學習 AI 處理器和軟件，它們正在取代傳統的、功能較弱的傳統機器學習方法。在深度學習市場中，人工智能處理器市場一直由使用通常用於雲、數據中心或企業的服務器的訓練處理器主導。我們的重點是我們的 AI 推理，這是部署 AI 模型並被最終用戶實際使用的地方。隨著人工智能市場開始成熟，大多數第三方研究公司預測人工智能的影響力規模將超過訓練人工智能。

We have already demonstrated how we can leverage our rich heritage in human perception, also known as video processors, into AI. Our CV2 family was our first move into AI and it targets influence AI perception processing at the age where cameras are the principal sensing modality. We continue to expect the CV2 family to be approximately 60% total revenue in fiscal year '24 and represent a material portion of our operating profit dollars. The CV2 SoC integrates our camera perception and expertise with our proprietary second-generation CVflow AI architecture.

我們已經展示瞭如何將我們在人類感知方面的豐富遺產（也稱為視頻處理器）應用到 AI 中。我們的 CV2 系列是我們進入 AI 的第一步，它的目標是在相機是主要傳感方式的時代影響 AI 感知處理。我們繼續預計 CV2 系列在 24 財年的總收入約為 60%，並占我們營業利潤的重要部分。 CV2 SoC 將我們的相機感知和專業知識與我們專有的第二代 CVflow AI 架構相結合。

The incremental processing to enable AI costs causes our CV2 blended average selling price, ASP, to be greater than 2x of video processor. This contributed to an over 20% increase in our firm-wide ASP in fiscal year '23. This year, the CV2 family is expected to become the dominant driver of our revenue and remain a key driver for several years. The solid strength of operating profit from video processors and the CV2 family of [AI] processors is now being reinvested into the significantly more powerful CV3 platform targeting mobility applications. The CV3 platform built upon our CV2 family experiences and utilize our proprietary third-generation AI influencing processor. For the typical Level 2 class application, the CV3 SoC provides the perception processing for all the camera and the radar sensors, as well as the processing required in the future and the [planning] layers. The significant amount of incremental processing expected to facilitate a CV3 SoC ASP to be 5x to 20x higher than a CV2 SoC.

啟用 AI 成本的增量處理導致我們的 CV2 混合平均售價 ASP 大於視頻處理器的 2 倍。這導致我們公司範圍內的 ASP 在 23 財年增長了 20% 以上。今年，CV2 系列有望成為我們收入的主要驅動力，並在未來幾年內繼續成為主要驅動力。來自視頻處理器和 CV2 系列 [AI] 處理器的穩固營業利潤現在正在重新投資到針對移動應用程序的功能更強大的 CV3 平台。 CV3 平台建立在我們 CV2 系列的經驗之上，並利用我們專有的第三代 AI 影響處理器。對於典型的Level 2類應用，CV3 SoC提供了所有攝像頭和雷達傳感器的感知處理，以及未來需要的處理和[規劃]層。大量增量處理有望使 CV3 SoC ASP 比 CV2 SoC 高 5 到 20 倍。

It is also very important to understand CV3 is a platform. Also, the SoC in the CV3 family can capture incremental value by running our own autonomous driving AD software stack IP and/or radar perception (inaudible) IP. We aim to bundle this (inaudible) IP with our CV3 SoCs in a platform approach, providing our customers with the flexibility to pick and choose exactly what they need.

了解 CV3 是一個平台也很重要。此外，CV3 系列中的 SoC 可以通過運行我們自己的自動駕駛 AD 軟件堆棧 IP 和/或雷達感知（聽不清）IP 來獲取增量價值。我們的目標是以平台方式將此（聽不清）IP 與我們的 CV3 SoC 捆綁在一起，讓我們的客戶能夠靈活地挑选和選擇他們需要的東西。

Regarding our autonomous mobility partnerships at Continental, I'm pleased to share that we extended our partnership to Level 4 system development and confirm the first business award of our jointly-developed stack as a complete Level 4 [full backed] system. The system will be supplied to Continental for customers in the commercial vehicle industry.

關於我們在大陸集團的自主移動合作夥伴關係，我很高興地分享我們將我們的合作夥伴關係擴展到 4 級系統開發，並確認我們共同開發的堆棧的第一個商業獎項是一個完整的 4 級 [完全支持] 系統。該系統將供應給大陸集團的商用車行業客戶。

To be clear, the CV3 platform is a major leap forward in terms of our value proposition, and it brings a new list of target customers, automotive OEMs. We are still in the early stage of building out the CV3s SoC portfolio and developing the market. However, we are not doing this alone, with leading Tier 1s like [Watch] and Continental [putting] their software to CV3, validating our superior efficiency, jointly marketing to auto OEMs using their scale and bring more credibility to our CV3 market development efforts.

需要明確的是，CV3 平台是我們價值主張的重大飛躍，它帶來了新的目標客戶名單，即汽車原始設備製造商。我們仍處於構建 CV3s SoC 產品組合和開發市場的早期階段。然而，我們並不是孤軍奮戰，像 [Watch] 和 Continental 這樣的領先一級供應商 [將] 他們的軟件用於 CV3，驗證了我們的卓越效率，利用他們的規模聯合向汽車 OEM 進行營銷，並為我們的 CV3 市場開發工作帶來更多可信度.

Additionally, for the AI server influence market, we have already evaluated running large language model, LLM on [CV3AD high], which has been [sample] for 9 months. And we believe the LLM performance on this existing SoC to be good as NVIDIA A100 with much lower power consumption and superior total system cost. We are now establishing a software development effort as well as a business development program to engage with customers.

此外，對於 AI 服務器影響力市場，我們已經評估了在 [CV3AD high] 上運行大型語言模型 LLM，該模型已經 [樣本] 9 個月。我們相信這個現有 SoC 上的 LLM 性能與 NVIDIA A100 一樣好，功耗低得多，總系統成本高。我們現在正在建立軟件開發工作以及與客戶互動的業務開發計劃。

Turning to new products and customer engagement in this quarter. In March, at the ISC West Security Show, we announced our CV72S for mainstream enterprise and public class security cameras. CV72 utilized the same third-generation CVflow deep learning AI accelerator architecture utilized in the CV3 SoCs. This CV3 derivative SoC bring to the IoT market the highest AI performance per watt, the fusion of radar and camera data, and it improves support for the latest transformer neural networks. Furthermore, [CV72S] offers 6x the AI performance of CV2 family, enabling it to run Ambarella's groundbreaking neural network-based image signal processing software for 4K color night vision and HDR, with plenty of headroom for additional concurrent neural networks. CV72S is now sampling to leading IoT camera companies.

轉向本季度的新產品和客戶參與。 3 月，在 ISC West Security Show 上，我們發布了適用於主流企業和公共級安全攝像頭的 CV72S。 CV72 使用了與 CV3 SoC 相同的第三代 CVflow 深度學習 AI 加速器架構。這款 CV3 衍生 SoC 為物聯網市場帶來了最高的每瓦 AI 性能、雷達和攝像頭數據的融合，並改進了對最新 transformer 神經網絡的支持。此外，[CV72S] 提供 CV2 系列 6 倍的 AI 性能，使其能夠運行 Ambarella 開創性的基於神經網絡的圖像信號處理軟件，用於 4K 彩色夜視和 HDR，並為額外的並發神經網絡提供充足的空間。 CV72S 現在正在向領先的物聯網相機公司提供樣品。

In IoT, there were a number of new enterprise and public security camera introduced, including Motorola who will introduce H6SL camera line based on CV25 as well as the V700 body camera based on our (inaudible) SoC. And Verkada introduced its TD52 video intercom featuring 5 megapixel camera based on our CV25. i-PRO, formerly Panasonic, and the Japan's largest security camera supplier, introduced multiple new product family based on our CV2, CV22 and CV25, including dual and quad multi-image models. And the European market leader Axis part of Canon, introduced a [3905] rocket drone models designed for surveillance onboard vehicles, such as buses, based on our (inaudible). Also in Europe, [Del mar] introduced (inaudible) E-series camera, which use our CV22 AI SoCs to enable imaging in total darkness utilizing adaptive IR illuminations.

在物聯網方面，推出了許多新的企業和公共安全攝像頭，包括摩托羅拉將推出基於 CV25 的 H6SL 攝像頭系列以及基於我們（聽不清）SoC 的 V700 隨身攝像頭。 Verkada 推出了基於我們的 CV25 的 TD52 視頻對講機，配備 5 百萬像素攝像頭。 i-PRO，前身為松下，是日本最大的安防攝像頭供應商，推出了多個基於我們的 CV2、CV22 和 CV25 的新產品系列，包括雙和四多圖像型號。佳能的歐洲市場領導者 Axis 部分推出了 [3905] 火箭無人機模型，專為監視車載車輛（例如公共汽車）而設計，基於我們的（聽不清）。同樣在歐洲，[Del mar] 推出了（聽不清）E 系列相機，它使用我們的 CV22 AI SoC，利用自適應紅外照明在全黑環境中成像。

In the home monitoring market, Alarm.com introduced its ADC-780 battery-powered (inaudible) based on our [S5LM].

在家庭監控市場，Alarm.com 推出了基於我們 [S5LM] 的 ADC-780 電池供電（聽不清）。

I will now talk about the progress in the automotive market. As mentioned earlier, our new CV72S SoC is an important CV3 derivative for IoT market. However, it is expected to also be an important derivative product for the automotive market. And in April, at the Shanghai Auto Show, we announced and demonstrated CV72 [8Q]. This SoC targets multiple automotive application, including Level 2+ and other applications, with up to 6 cameras and 5 radars only on the same SoC. CV72AQ demonstration at the show included an ADAS plus parking system with a 5 camera configuration, including an 8-megapixel front camera and the multiple 3-megapixel fisheye camera running [V7] [neural] networks on each camera. We also demonstrated versus a leading GPU solution superior performance and lower power consumption of CV72AQ-running transformer networks.

我現在將談談汽車市場的進展。如前所述，我們的新 CV72S SoC 是面向物聯網市場的重要 CV3 衍生產品。然而，它也有望成為汽車市場的重要衍生產品。 4 月，在上海車展上，我們發布並展示了 CV72 [8Q]。該 SoC 面向多種汽車應用，包括 2+ 級和其他應用，在同一個 SoC 上最多可安裝 6 個攝像頭和 5 個雷達。展會上的 CV72AQ 演示包括具有 5 個攝像頭配置的 ADAS plus 停車系統，包括一個 8-megapixel 前置攝像頭和多個 3-megapixel 魚眼攝像頭，每個攝像頭上運行 [V7] [神經] 網絡。我們還展示了與領先的 GPU 解決方案相比，運行 CV72AQ 的變壓器網絡的卓越性能和更低功耗。

We received very positive feedback on CV72AQ from Tier 1s and OEM in China.

我們從中國的一級供應商和 OEM 那裡收到了關於 CV72AQ 的非常積極的反饋。

Also, as of the Shanghai Auto Show, a number of other Tier 1s demonstrated CV3-based assistance. This included Continental [with a] show of 10 camera live demo with multiple neural networks running on each video stream. And HyperView demonstrated its [GT Hypermax] platform featuring a sensor suite of 11 cameras, plus 1 LiDAR and the 3 radars in a car, providing CT navigate on pilot advanced functions and leveraging the latest transformer network.

此外，截至上海車展，許多其他一級供應商展示了基於 CV3 的輔助。這包括 Continental [with a] 10 台攝像機現場演示，每個視頻流上運行多個神經網絡。 HyperView 展示了其 [GT Hypermax] 平台，該平台具有一個由 11 個攝像頭組成的傳感器套件，外加 1 個 LiDAR 和汽車中的 3 個雷達，為飛行員提供 CT 導航高級功能並利用最新的變壓器網絡。

In March, China's GAC introduced its electric Aion Y Younger L2+ ADAS SUV with an intelligent (inaudible) driving assistance system based on our CV22AQ AI SoC. And in April, JV Zeekr introduced its Zeekr electric SUV with a face recognition access controls based on CD28AX AI SoC.

3 月，中國的 GAC 推出了其電動 Aion Y Younger L2+ ADAS SUV，該 SUV 具有基於我們的 CV22AQ AI SoC 的智能（聽不清）駕駛輔助系統。 4 月，JV Zeekr 推出了其 Zeekr 電動 SUV，該 SUV 具有基於 CD28AX AI SoC 的人臉識別訪問控制。

In summary, a majority of our new customer engagement activity continue to be our AI products. AI is expected to be a majority of our revenue for the first time in fiscal year 2024, and actually continue to grow as a proportion of our mix. To bring our AI strategy vision together, first with CV2, now again with an even more significant CV3 platform, we have leveraged our core competencies, cumulative knowledge and unique approach to establish strong presence in the AI deep learning domain. Our investment yield differentiated products that are very different, are very efficient and on open platforms that are scalable and flexible. The CV2 family is already very profitable, and we are well into the development phase with the CV3 platform.

總之，我們的大部分新客戶參與活動仍然是我們的人工智能產品。預計 AI 將在 2024 財年首次占我們收入的大部分，並且實際上在我們的組合中所佔的比例會繼續增長。為了將我們的人工智能戰略願景結合起來，首先是 CV2，現在又是一個更重要的 CV3 平台，我們利用我們的核心競爭力、積累的知識和獨特的方法在人工智能深度學習領域建立了強大的影響力。我們的投資產生差異化的產品，這些產品非常不同，非常高效，並且在可擴展和靈活的開放平台上。 CV2 系列已經非常有利可圖，我們已經進入 CV3 平台的開發階段。

In summary, there is still a lot of work left to execute to our strategy and the ongoing semiconductor industry cynical downturn pressure our near-term financials. However, we are confident in our long-term secular growth opportunity for (inaudible) AI. We do not intend to stray from our strategy vision, and we are continuing to invest in our differentiated AI strategy.

總而言之，我們的戰略還有很多工作要做，而持續的半導體行業不景氣給我們的短期財務帶來壓力。但是，我們對（聽不清）人工智能的長期長期增長機會充滿信心。我們不打算偏離我們的戰略願景，我們將繼續投資於我們差異化的 AI 戰略。

I will now turn it over to Brian to discuss the Q1 results and the Q2 outlook in more detail.

我現在將把它交給布賴恩來更詳細地討論第一季度的結果和第二季度的前景。

Thank you, Fermi.

謝謝你，費米。

I'll review the financial highlights for the first quarter of fiscal year 2024. I'll also provide a financial outlook for our second quarter ending July 31, 2023. I'll be discussing non-GAAP results and ask that you refer to today's press release for a detailed reconciliation of GAAP to non-GAAP results. For non-GAAP reporting, we have eliminated stock-based compensation expense and acquisition-related costs adjusted for the impact of taxes.

我將回顧 2024 財年第一季度的財務亮點。我還將提供截至 2023 年 7 月 31 日的第二季度的財務展望。我將討論非 GAAP 業績，並請您參考今天的新聞稿，詳細核對 GAAP 與非 GAAP 結果。對於非 GAAP 報告，我們已經消除了基於股票的補償費用和根據稅收影響調整的收購相關成本。

For fiscal Q1, revenue was $62.1 million, in line with the midpoint of our prior guidance range, down 25% from the prior quarter and down 31% year-over-year. As expected, total Automotive revenue was approximately flat sequentially while IoT revenue was down sharply, driven by customer inventory reduction actions.

第一財季，收入為 6210 萬美元，與我們先前指導範圍的中點一致，比上一季度下降 25%，同比下降 31%。正如預期的那樣，汽車總收入環比基本持平，而物聯網收入則在客戶減少庫存行動的推動下大幅下降。

Non-GAAP gross margin for fiscal Q1 was 63.1%, in line with the midpoint of our prior guidance range of 62% to 64%. Non-GAAP operating expense for the first quarter was $46.2 million, up $200,000 from the prior quarter and below our prior guidance range of $47 million to $49 million. The lower operating expense was driven by continued expense management and the timing of spending between quarters. We remain on track to our internal product development milestones.

第一財季的非美國通用會計準則毛利率為 63.1%，符合我們先前指導範圍 62% 至 64% 的中點。第一季度的非 GAAP 運營費用為 4620 萬美元，比上一季度增加 200,000 美元，低於我們之前 4700 萬美元至 4900 萬美元的指導範圍。較低的運營費用是由持續的費用管理和季度之間的支出時間推動的。我們繼續朝著我們的內部產品開發里程碑邁進。

Q1 net interest and other income was $1.3 million. This was higher than our original forecast driven by a higher cash balance and returns on cash invested. Our non-GAAP tax provision was $300,000 or minus 5.5% of pre-tax income. This was slightly lower than our original forecast driven by the mix of pretax income across tax jurisdictions. We reported a non-GAAP net loss of $6 million or $0.15 loss per diluted share.

第一季度淨利息和其他收入為 130 萬美元。這高於我們最初的預測，原因是現金餘額和現金投資回報率較高。我們的非 GAAP 稅收撥備為 300,000 美元或稅前收入的負 5.5%。這略低於我們最初的預測，這是由不同稅收管轄區的稅前收入組合推動的。我們報告了 600 萬美元的非 GAAP 淨虧損或每股攤薄虧損 0.15 美元。

Now I'll turn to our balance sheet and cash flow. Fiscal Q1 cash and marketable securities increased $20.5 million to $227.4 million. DSO improved significantly from 57 days to 43 days as the timing of shipments throughout the quarter normalized after being back-end loaded in the prior quarter. Ending inventory increased slightly, up 1.8%. However, days of inventory increased more significantly from 116 to 151 due to the sequential reduction in cost of goods sold on lower revenue.

現在我將轉向我們的資產負債表和現金流量。第一財季現金和有價證券增加 2050 萬美元至 2.274 億美元。 DSO 從 57 天顯著縮短至 43 天，因為整個季度的發貨時間在上一季度後端加載後正常化。期末庫存略有增加，上升 1.8%。然而，庫存天數從 116 天顯著增加到 151 天，這是由於收入下降導致銷售成本連續下降。

Cash from operations was strong at $22 million, driven by the decrease in accounts receivable. And capital expenditures for tangible and intangible assets were $2.3 million. Free cash flow, defined as cash from operations less CapEx, was 31.7% of revenue for the quarter and 6.4% on a trailing 12-month basis.

受應收賬款減少的推動，運營現金強勁，達到 2200 萬美元。有形和無形資產的資本支出為 230 萬美元。自由現金流（定義為運營現金減去資本支出）佔本季度收入的 31.7%，過去 12 個月為 6.4%。

We had 2 logistics and ODM companies represent 10% or more of our revenue in Q1. WT Microelectronics, a fulfillment partner in Taiwan that ships to multiple customers in Asia, came in at 49% of revenue. Chicony and ODM, who manufactures for multiple IoT customers, was 16% of revenue.

我們有 2 家物流和 ODM 公司占我們第一季度收入的 10% 或更多。 WT Microelectronics 是台灣的履行合作夥伴，向亞洲的多個客戶發貨，佔收入的 49%。為多個物聯網客戶製造產品的 Chicony 和 ODM 佔收入的 16%。

I'll now discuss the outlook for the second quarter of fiscal year 2024. Customer feedback on end demand remains generally healthy. However, at the same time, customers also continue to aggressively manage down their inventory levels. Considering these factors, we estimate that our fiscal Q2 revenue will be flat to Q1 and in the same range of $60 million to $64 million that we guided for the prior quarter. By end market, we expect that both Automotive and IoT revenue will be approximately flat sequentially as well.

我現在將討論 2024 財年第二季度的前景。客戶對終端需求的反饋總體上保持健康。然而，與此同時，客戶也繼續積極降低庫存水平。考慮到這些因素，我們估計我們第二季度的財政收入將與第一季度持平，並且與我們為上一季度指導的 6000 萬至 6400 萬美元的範圍相同。在終端市場，我們預計汽車和物聯網收入也將大致持平。

We expect non-GAAP gross margin to be in the range of 62.5% to 64.5%, up slightly from Q1. We expect non-GAAP OpEx in the second quarter to be in the range of $48 million to $50 million, with the increase compared to Q1 driven by higher R&D tied to new product development activities. We estimate net interest income to be approximately $1 million, our non-GAAP tax expense to be approximately $700,000, and our diluted share count to be approximately 39.7 million shares.

我們預計非 GAAP 毛利率將在 62.5% 至 64.5% 之間，略高於第一季度。我們預計第二季度的非 GAAP 運營支出將在 4800 萬美元至 5000 萬美元之間，與第一季度相比有所增加，原因是與新產品開發活動相關的研發增加。我們估計淨利息收入約為 100 萬美元，我們的非 GAAP 稅費約為 700,000 美元，我們的稀釋後股份數量約為 3970 萬股。

Ambarella will be participating in TD Cowen's Technology, Media and Telecom Conference on May 31 and June 1; Bank of America's Global Technology Conference on June 6; and (inaudible) [Agent] AI Conference on June 7. Please contact us for more details.

Ambarella 將於 5 月 31 日和 6 月 1 日參加 TD Cowen 的技術、媒體和電信會議； 6 月 6 日美國銀行全球技術會議；和（聽不清）[代理人] 6 月 7 日的 AI 會議。請聯繫我們了解更多詳情。

Thank you for joining our call today. And with that, I'll turn the call over to the operator for questions.

感謝您今天加入我們的電話會議。有了這個，我會把電話轉給接線員提問。

(Operator Instructions)

（操作員說明）

And our first question comes from the line of Gary Mobley from Wells Fargo.

我們的第一個問題來自 Wells Fargo 的 Gary Mobley。

I wanted to ask about inventory drawdown with customers. You mentioned that customer and demand appears to be healthy. Obviously, you're undershipping in demand. Could you give us a sense by how much and by how much or how close we are to inventories being back down to a normal level? And then maybe you can comment as well specific to China-related demand?

我想向客戶詢問庫存縮減情況。你提到客戶和需求似乎是健康的。顯然，您的需求不足。您能否讓我們了解我們距離庫存回落到正常水平的程度、幅度或接近程度？然後也許您也可以針對與中國相關的需求發表評論？

Yes, this is Fermi.

是的，這就是費米。

I think like Brian said, we haven't seen a huge change from the customer side. For example, last quarter, we talked about customer that has a healthy growth with based on our silicon, but our silicon revenue from them is down 15%, 20% year-over-year. And that station continues, and I think the customer continue to confirm that their growth and continues to forecast lower revenue this year.

我認為就像布賴恩所說的那樣，我們還沒有看到客戶方面發生巨大變化。例如，上個季度，我們談到了基於我們的矽實現健康增長的客戶，但我們從他們那裡獲得的矽收入同比下降了 15%、20%。而且那個站還在繼續，我認為客戶繼續確認他們的增長並繼續預測今年的收入下降。

So I think from that point of view, I think the situation is very similar to last quarter, and we have not seen anything -- any indication that this inventory correction will end. So I think what we are looking for is really that the ramping up of new orders consistently from different customers, that will probably give us an indication that it's recovered. We haven't seen that yet.

所以我認為從這個角度來看，我認為情況與上個季度非常相似，我們還沒有看到任何跡象表明這種庫存調整將結束。所以我認為我們正在尋找的實際上是來自不同客戶的新訂單不斷增加，這可能會給我們一個跡象，表明它已經恢復。我們還沒有看到。

As a follow-up, I wanted to ask about your win that you captured in conjunction with Continental. Is that an automotive grade wins? And maybe if you can give us a sense of where automotive -- other automotive grade wins may stand?

作為後續行動，我想問一下您與大陸航空一起獲得的勝利。那是汽車級的勝利嗎？也許如果你能讓我們了解汽車——其他汽車級別的勝利可能會站在哪裡？

Right. So that's automotive grade win. And like I said, it's a level 4 car, and it's going to be also a great chip, and it's going to be its first design win that we work with after we announce and with working with Continental. And this design win involves not only our CV3 SoC but also our software IP, the software stack that we and Continental are co-developing. So I think it's combination of software and the SoC win.

正確的。這就是汽車級的勝利。就像我說的，這是一輛 4 級汽車，它也將是一個很棒的芯片，這將是我們宣布並與大陸集團合作後我們合作的第一個設計勝利。這個設計勝利不僅涉及我們的 CV3 SoC，還涉及我們的軟件 IP，即我們和大陸集團共同開發的軟件堆棧。所以我認為這是軟件和 SoC 的結合。

If we do -- we are working on other design wins. For example, we talk about -- first of all, we continue to work with Tier 1s like (inaudible) and Bosch on any potential design wins. At the same time, we also mentioned that in China, I think we start seeing that a lot of opportunity in Level 2+ cars, and especially at the Shanghai Auto Show, we introduced CV72AQ. It make us believe that we have plenty of opportunity there, and we are optimistic that we're going to close on design win this year there. And also, the time to revenue is much faster with those potential design win in China.

如果我們這樣做 - 我們正在努力爭取其他設計勝利。例如，我們談論 - 首先，我們繼續與（聽不清）和博世等一級供應商合作，爭取任何潛在的設計勝利。同時，我們還提到在中國，我認為我們開始看到 2 級以上汽車的很多機會，特別是在上海車展上，我們推出了 CV72AQ。這讓我們相信我們在那裡有很多機會，並且我們樂觀地認為我們將在今年在那裡結束設計勝利。而且，在中國贏得那些潛在的設計勝利後，實現收入的時間要快得多。

(Operator Instructions) And our next question comes from the line of Ross Seymore from Deutsche Bank.

（操作員說明）我們的下一個問題來自德意志銀行的 Ross Seymore。

Fermi, you mentioned that you haven't seen any signs of end of the inventory digestion that's going on and that growth would really resume when some of the new products kick in. Can you, I guess, dive a little bit deeper into that? And so the 2-part question would be, where do you believe the revenue level would be for your company versus the $60 million to $64 million, if you were shipping to [true] end demand? And to the extent it's dependent upon new products kicking in, when do you believe that occurs?

費米，你提到你還沒有看到任何庫存消化結束的跡象，當一些新產品開始出現時，增長真的會恢復。我想你能更深入地研究一下嗎？因此，由兩部分組成的問題是，如果您要運送到 [真正的] 最終需求，您認為貴公司的收入水平與 6000 萬至 6400 萬美元相比在哪裡？在某種程度上它取決於新產品的推出，你認為這會在什麼時候發生？

Right.

正確的。

So first of all, I think that we are not waiting for new products to kick in. We believe the current inventory correction, when they finish, the existing product line will come back supplies will go back to original level. So we are not counting on new product design win to fix this inventory correction problem.

所以首先，我認為我們不是在等待新產品的推出。我們相信當前的庫存調整，當它們完成時，現有產品線將恢復供應，將恢復到原來的水平。所以我們不指望新產品設計的勝利來解決這個庫存修正問題。

And for your first question in terms of level, last quarter, when we look at just one example of a customer, we think that we are probably like a 25%, 30% below the [reality] level. So I think we still hope, believe that's a level, the differences we're looking at. And hopefully, when the inventory correction finished and all the customer went back to normal, I think that should give you an indication where we think the normal level of revenue is.

對於你關於水平的第一個問題，上個季度，當我們只看一個客戶的例子時，我們認為我們可能比 [現實] 水平低 25%、30%。所以我認為我們仍然希望，相信這是一個水平，我們正在尋找的差異。希望當庫存修正完成並且所有客戶恢復正常時，我認為這應該會給你一個我們認為正常收入水平的指示。

Got it.

知道了。

And I guess for my follow-up, on the Automotive side, specifically, it's good to see the design win with Conti turn into products, et cetera. That business has been basically flat sequentially, I think, for 4 quarters now. Three quarter reported, and I think like you're guiding it relatively flat. When is the timing where we should start to see that business picking up? You guys have talked about this investment. I know it's a longer term strategy for the company, but it seems like one that should yield some pretty strong tailwinds of the size company you're currently running at. So just wondered on the timing that we should look for and what the drivers of that growth should be?

我想對於我的後續行動，特別是在汽車方面，很高興看到 Conti 的設計勝利轉化為產品，等等。我認為，該業務已經連續四個季度基本持平。報告了四分之三，我認為你的指導相對平穩。我們什麼時候應該開始看到業務回暖？你們談到了這項投資。我知道這對公司來說是一項長期戰略，但它似乎應該會為你目前經營的規模公司帶來一些相當強勁的順風。所以只是想知道我們應該尋找的時機以及增長的驅動力應該是什麼？

Well, I definitely think that's it's flat. If you look at -- there are few quarters before the inventory correction, and now you're comparing to the inventory correction period. So I think with the last 2 quarters, definitely been impacted by inventory question in the automotive section. So I also believe that as soon as inventory correction is finished, which also should show some revenue growth from that point of view.

好吧，我絕對認為這是平坦的。如果你看——庫存修正前有幾個季度，現在你正在與庫存修正期進行比較。所以我認為在過去的兩個季度中，肯定受到汽車部分庫存問題的影響。所以我也相信，一旦庫存修正完成，從這個角度來看，這也應該會顯示出一些收入增長。

But like you said, the really big auto growth should come with the ADAS market and also Level 2+ market when that go into production.

但就像你說的，真正的大汽車增長應該伴隨著 ADAS 市場和 2+ 級市場投入生產。

(Operator Instructions) And our next question comes from the line Tristan Gerra from Baird.

（操作員說明）我們的下一個問題來自 Baird 的 Tristan Gerra 系列。

Just wanted to have a follow-up on the inventory correction and also try to tie this with market share shift. So it's no secret that some Chinese companies have tried to diversify away from U.S. supply, either because there is a push for that from the Chinese government or because you're concerned about potential future sanctions. I know you've very much derisked your surveillance camera exposure to China in the past, but you still have exposure in Automotive. So I wanted to know if there is any signs that perhaps the ramp in China, is that expected at the pace that you thought would happen a year ago? Are you getting any feedback? And also, just to the extent that the inventory correction that you're describing seems to be a little bit more pronounced than some of the other companies where it's been really more smartphone and PC-centric for other companies. So any elaboration around that would be great.

只是想跟進庫存調整，並嘗試將其與市場份額轉移聯繫起來。因此，一些中國公司試圖從美國供應轉向多元化，這已經不是什麼秘密了，要么是因為中國政府推動了這一點，要么是因為你擔心未來可能受到製裁。我知道你過去非常懷疑你的監控攝像頭在中國的曝光，但你仍然在汽車領域有曝光。所以我想知道是否有任何跡象表明中國的增長速度是否符合您一年前預期的速度？你有任何反饋嗎？而且，就您所描述的庫存調整而言，它似乎比其他一些公司更明顯，而其他公司實際上更以智能手機和 PC 為中心。因此，圍繞這一點的任何詳細說明都會很棒。

Right.

正確的。

So in terms of the geopolitical situation, I think for Automotive market, it's much less severe than security. Security is really being viewed as the safety of the country, so that's why I think people are trying to avoid U.S. components. But in Automotive, in fact, if you look at the middle and high end auto compnents in the Chinese market today, all of them are U.S. components. So that's because in automotive processing, I think that our solutions among other U.S. components are -- still have better performance efficiency, and we haven't seen a similar impact from Chinese government on mandating the Chinese automotive OEM use exclusively the Chinese component.

因此，就地緣政治形勢而言，我認為對於汽車市場而言，它遠沒有安全那麼嚴重。安全實際上被視為國家的安全，所以我認為這就是為什麼人們試圖避免使用美國組件。但是在汽車方面，其實你看現在中國市場上的中高端汽車零部件，都是美國零部件。所以那是因為在汽車加工方面，我認為我們的解決方案在其他美國組件中仍然具有更好的性能效率，而且我們還沒有看到中國政府強制中國汽車 OEM 僅使用中國組件的類似影響。

So I think that's the 2 things add together. I think I still believe that we won't see a severe downturn on the Chinese Automotive business.

所以我認為這是兩件事加在一起。我想我仍然相信我們不會看到中國汽車業務出現嚴重下滑。

Okay. Great.

好的。偉大的。

And then as my follow-up question, obviously, you've made that software acquisition, you have the sensor fusion chip. So do you think you have all the pieces you need to move into L2+ and L3 application? Are you getting any feedback about customers looking at your company size versus a larger supplier? Or is it purely based on chip performance where obviously you excel? Is there any other consideration that -- and how you -- in terms of getting design wins, and how you would address that? And that question will also tie to the product road map, and whether customers are kind of wondering where will you be 5 years out in terms of product road map?

然後作為我的後續問題，很明顯，你已經進行了軟件收購，你擁有傳感器融合芯片。那麼，您認為您是否具備進入 L2+ 和 L3 應用程序所需的所有要素？您是否收到有關客戶查看您公司規模與更大供應商的任何反饋？還是純粹基於您顯然擅長的芯片性能？在獲得設計勝利方面，是否還有其他考慮——以及你如何——以及你將如何解決這個問題？這個問題也與產品路線圖有關，客戶是否想知道在產品路線圖方面，5 年後你會在哪裡？

Right.

正確的。

So I think the -- from a product roadmap point of view, I think for Level 2+, Level 3 car, I think we have all the contents that we need to go after this market. Of course, from a hardware, software point of view, I think we can offer a complete solution. But from a strategy point of view, as we said before, we are not bundling hardware and software together. We are trying to offer a software platform that a customer can pick and choose, and we can help our customer to build their own software stack, and working with Conti is probably the best example.

所以我認為——從產品路線圖的角度來看，我認為對於 2+ 級、3 級汽車，我認為我們擁有追趕這個市場所需的所有內容。當然，從硬件、軟件的角度，我覺得我們可以提供一個完整的解決方案。但從戰略的角度來看，正如我們之前所說，我們並不是將硬件和軟件捆綁在一起。我們正在努力提供一個客戶可以挑選的軟件平台，我們可以幫助我們的客戶構建他們自己的軟件堆棧，與 Conti 的合作可能是最好的例子。

And in terms of scale, it's always a problem. And try to compete with a bigger company, it's always a disadvantage for us. But I think that's the reason we continue to try to work with the bigger Tier 1s and using -- with their scale and with the expertise, that will help us partially further to address this problem.

就規模而言，這始終是一個問題。並嘗試與更大的公司競爭，這對我們來說總是不利的。但我認為這就是我們繼續嘗試與更大的 Tier 1 合作並使用它們的規模和專業知識的原因，這將幫助我們在一定程度上進一步解決這個問題。

Great. And clearly, the Conti and (inaudible) design wins speak to that effect. Very useful.

偉大的。顯然，Conti 和（聽不清）設計勝利說明了這一點。很有用。

(Operator Instructions) And our next question comes from the line of Tore Svanberg from Stifel.

（操作員說明）我們的下一個問題來自 Stifel 的 Tore Svanberg。

My first question, Fermi, could you just talk a little bit about the main difference between the CV3AD and the CV3AQ, whether it's functionality or ASPs? Or any other color you could share with us?

我的第一個問題，Fermi，您能否談談 CV3AD 和 CV3AQ 之間的主要區別，無論是功能還是 ASP？或者您可以與我們分享任何其他顏色？

Right. So CV3AD and CV72AQ.

正確的。所以 CV3AD 和 CV72AQ。

First of all, they are all based on the same architect -- CV3 architecture, all of them using the third-generation AI influence, AI processor. The difference -- the main difference is the CV3AD is designed for the auto-grade chip level ASO and CV72AQ is designed for the system level auto grade. So I think that's the main difference.

首先，它們都是基於同一個架構——CV3架構，都使用了第三代AI影響力，AI處理器。區別——主要區別在於 CV3AD 是為汽車級芯片級 ASO 設計的，而 CV72AQ 是為系統級汽車級設計的。所以我認為這是主要的區別。

So I think the -- for example, CV72AQ definitely is targeted for Chinese market where the people are willing to accept system-level ASO system versus chip levels ASO system. And that's the main difference.

所以我認為——例如，CV72AQ 絕對是針對中國市場的，人們願意接受系統級 ASO 系統而不是芯片級 ASO 系統。這就是主要區別。

Very good.

非常好。

And my follow-up question, you announced the design win for the software IP modules. Again, I was just hoping you could elaborate a little bit more on that? And it's surprising to me when I hear software IP margin, right, because I think hardware and software, so like how exactly is the accounting for this particular design?

我的後續問題是，你們宣布了軟件 IP 模塊的設計勝利。再一次，我只是希望你能詳細說明一下？當我聽到軟件 IP 利潤率時，我感到很驚訝，對吧，因為我認為硬件和軟件，就像這個特定設計的會計到底是多少？

So when we -- I think at ISC, we announced this is a software partner with Conti. So basically, the idea is that we are contributing a portion of software solutions, and we work with Conti's software team to integrate those modules into a complete software stack, leveraging the strength of both sides. For example, Ambarella's strength is on the perception side particularly today, it's video perception and [radar] of perception, but Conti definitely has a lot more system-level solutions and famous for their auto grade system software.

所以當我們 - 我認為在 ISC，我們宣布這是與 Conti 的軟件合作夥伴。所以基本上，我們的想法是貢獻一部分軟件解決方案，我們與 Conti 的軟件團隊合作，將這些模塊集成到一個完整的軟件堆棧中，利用雙方的力量。例如，Ambarella 的強項是在感知方面，尤其是今天，它是視頻感知和[雷達]感知，但 Conti 肯定有更多的系統級解決方案，並且以其汽車級系統軟件而聞名。

So I think that's where we see that we can leverage both sides of our strength and build a software stack based on leveraging the both side's strength. So I think that's an approach that were different than the customer. And also for OEMs, that if there are anybody who want to do a similar business model, we are open to that too.

所以我認為這就是我們可以看到我們可以利用我們雙方的力量並在利用雙方力量的基礎上構建軟件堆棧的地方。所以我認為這是一種不同於客戶的方法。對於原始設備製造商，如果有人想做類似的商業模式，我們也願意接受。

And are the sort of revenue accounting for -- I mean is this a marginal sale or IP revenue (inaudible)? Yes.

那種收入佔——我的意思是這是邊際銷售或 IP 收入（聽不清）？是的。

Oh, I see. That's basically software revenue split. We need to decide how to share the software revenue together.

我懂了。這基本上是軟件收入分配。我們需要決定如何共同分享軟件收入。

(Operator Instructions) And our next question comes from the line of Kevin Cassidy from Rosenblatt Securities.

（操作員說明）我們的下一個問題來自 Rosenblatt Securities 的 Kevin Cassidy。

Maybe a similar question to what Tristan had about automotive. But in the AI server, as you move to the adjacent market, AI server inference, and you said you have about the same performance of NVIDIA A100 but much less power, can you say -- like do you have all the tools you need to move into the server market or into the cloud inference market?

也許與特里斯坦關於汽車的問題類似。但在 AI 服務器中，當你轉向相鄰市場時，AI 服務器推理，你說你有與 NVIDIA A100 大致相同的性能，但功率要低得多，你能說——你有你需要的所有工具嗎？進入服務器市場還是進入雲推理市場？

Right.

正確的。

So obviously, the similarity between our current automotive market and the new AI server market is they are really running a new network on our chip. So from tools point of view, that -- we always develop many, many software tools to help our customers to put a neural network onto our chip. But obviously, LLM is a different beast because they are much larger than the typical neural network that we are working with. So definitely, there is optimization cycle we still need to work on.

很明顯，我們當前的汽車市場和新的 AI 服務器市場之間的相似之處在於，它們實際上是在我們的芯片上運行一個新的網絡。所以從工具的角度來看，我們總是開發很多很多軟件工具來幫助我們的客戶將神經網絡放到我們的芯片上。但顯然，LLM 是一種不同的野獸，因為它們比我們正在使用的典型神經網絡要大得多。所以可以肯定的是，我們仍然需要優化週期。

But the reason we decide and we think we have a great opportunity here is, first of all, we have a working (inaudible) in demo. Two, we have a bunch of expertise and the software tools available that we build for other markets. Three, we just need to fine-tune and optimize the current software for this LLM to achieve the best possible performance that we can get.

但是我們決定並且我們認為我們在這裡有一個很好的機會的原因是，首先，我們有一個工作（聽不清）的演示。第二，我們擁有大量的專業知識和我們為其他市場構建的可用軟件工具。第三，我們只需要為這個 LLM 微調和優化當前的軟件，以達到我們可以獲得的最佳性能。

So I think from that point of view, the effort for us is well (inaudible), is limited. And also, I think we also believe that in the market, very few people can claim what I just said, that we have a working [silicon], can show real performance and real power consumption, and also demo to the customer. So I think that's our advantage, and I also believe that the extra resource we need to put on is something that we can handle.

所以我認為從這個角度來看，我們的努力很好（聽不清），是有限的。而且，我想我們也相信，在市場上，很少有人能聲稱我剛才說的，我們有一個工作的[矽]，可以展示真實的性能和真實的功耗，也可以向客戶演示。所以我認為這是我們的優勢，我也相信我們需要投入的額外資源是我們可以處理的。

Great.

偉大的。

And what would be the go-to-market strategy? Are you looking for a few maybe flagship customers to lead the way? Or are you going broad with lots of different customers?

進入市場的策略是什麼？您是否正在尋找一些可能是旗艦客戶來引領潮流？還是您要廣泛接觸許多不同的客戶？

No, I think we have to be focused. I think we need to identify the sweet spot. I think we should talk about strategy later because we are in the process of talking to customers, but I think we need to focus on where our strength is and also focusing on companies that can leverage our chip and our software immediately.

不，我認為我們必須集中註意力。我認為我們需要確定最佳點。我認為我們應該稍後再談戰略，因為我們正在與客戶交談，但我認為我們需要關注我們的優勢在哪裡，也需要關注能夠立即利用我們的芯片和軟件的公司。

And so I think that one thing we learned is to work with customer who has really -- they feel the most painful experience with current solution while most likely to work with us, and that's where we're going to focus on.

因此，我認為我們學到的一件事是與真正擁有當前解決方案的客戶合作，他們最有可能與我們合作，而這正是我們要關注的地方。

(Operator Instructions) And our next question comes from the line of Quinn Bolton from Needham & Company.

（操作員說明）我們的下一個問題來自 Needham & Company 的 Quinn Bolton。

I guess Fermi and Brian, maybe just your best guess. I mean we've been working down this inventory now for a few quarters, certainly doesn't sound like it's -- you haven't seen any green shoots yet in terms of the orders. What's your best guess as to how many more quarters do you think it will take to work down this inventory? Do you think we'll be pretty clear by the end of your fiscal year or the end of the calendar year? Or do you think it could take longer?

我猜 Fermi 和 Brian，也許只是你最好的猜測。我的意思是我們幾個季度以來一直在處理這個庫存，當然聽起來不像 - 你還沒有看到訂單方面的任何綠芽。關於您認為還需要多少個季度才能減少庫存，您的最佳猜測是什麼？你認為我們會在你的財政年度結束時或日曆年結束時非常清楚嗎？或者你認為它可能需要更長的時間？

Yes. Quinn, this is Brian.

是的。奎因，這是布萊恩。

A quarter ago, we said that our guidance with -- for fiscal Q1, which was $62 million at the midpoint, we thought that that would represent the bottom as it related to impact associated with inventory adjustments, and then it would likely not get worse from that point. And we're kind of sitting in the same place we were 90 days ago from the standpoint that we still believe that's the case.

一個季度前，我們表示我們的指導意見 - 對於第一財季，中點為 6200 萬美元，我們認為這將代表底部，因為它與庫存調整相關的影響有關，然後它可能不會變得更糟從那時起。從我們仍然相信情況如此的角度來看，我們有點坐在 90 天前的同一個地方。

What becomes challenging is forecasting when this thing lifts off again and at what slope. We certainly have visibility to backlog, but that backlog has been shifting, right? We've had reschedules, cancellations that we've had to deal with. So while in normal times, we can look at that backlog and have a lot of confidence as to how revenue might shape up, say, in fiscal Q3 because of the movements that we've seen, our confidence in providing a forecast would be lower in this cycle than kind of a normal time.

變得具有挑戰性的是預測這個東西何時再次升空以及以什麼斜率升空。我們當然可以看到積壓，但積壓一直在變化，對嗎？我們已經重新安排，我們不得不處理取消。因此，在正常情況下，我們可以查看積壓的訂單，並且對收入可能如何形成很有信心，比如說，由於我們所看到的變化，我們對提供預測的信心會降低。在這個週期中比正常時間。

So we don't see it getting worse, but the visibility to the second half and just how that recovery plays out, I think it's hard for us to talk to at this point.

所以我們沒有看到它變得更糟，但是下半年的可見性以及復甦的結果如何，我認為我們現在很難談論。

I understand you're not getting to the fiscal second half. Historically, you've seen some stronger seasonal trends in the second half. I mean, can you just provide any framework, how we might be thinking about it if the inventory doesn't get any worse than you see normal seasonality that would imply a lift? Obviously, if you start to see the inventory correction, then that would imply a lift. I mean are you sort of suggesting, hey, keep it in the 60% to 64% range until you see the inventory clear? Or do you think you can see some seasonal upticks in the second half?

我知道你不會進入下半財年。從歷史上看，您在下半年看到了一些更強的季節性趨勢。我的意思是，你能否提供任何框架，如果庫存沒有比你看到的正常季節性更糟，這意味著增加，我們會如何考慮它？顯然，如果您開始看到庫存調整，則意味著價格上漲。我的意思是，你是不是有點建議，嘿，將其保持在 60% 到 64% 的範圍內，直到你看到庫存清空？還是您認為下半年會出現一些季節性上漲？

Well, normally, we would see some uptick in the fiscal third quarter in particular, and we would hope that we do again. But we're just at a point where we don't have the visibility and the confidence to put a number out there and try to give you some magnitude of directional increase at this point in time.

好吧，通常情況下，我們會特別在第三財季看到一些增長，我們希望我們能再次這樣做。但我們正處於一個我們沒有可見性和信心的地步，無法在那裡給出一個數字，並試圖在這個時間點給你一些方向性的增加。

Got it. Understood.

知道了。明白了。

And then I guess for Fermi, [I guess I was a] little surprised to see your first win with Continental being a Level 4 win. I think the initial partnership you had announced back late last year, I think, was for Level 2+. And so can you just sort of maybe talk about how the Level 4 win came together? I know you had expanded the relationship with CES and so maybe that was on the fast track. But when were you surprised that the Level 4 came before Level 2+ with Continental?

然後我想對於 Fermi 來說，[我想我有點] 有點驚訝看到你在 Continental 的第一場胜利是 4 級勝利。我認為你去年年底宣布的最初合作夥伴關係是針對 Level 2+ 的。那麼你能不能談談 4 級勝利是如何走到一起的？我知道你們已經擴大了與 CES 的關係，所以也許這是在快速發展的軌道上。但是，您什麼時候對 Continental 的 Level 4 出現在 Level 2+ 之前感到驚訝？

Well, I think that the engagement definitely, after we announced this software collaboration between Continental and us, [which will happen at] CES and things go very fast after that. So I think definitely I'm also surprised how fast this developed. And also -- and you thank Conti for putting this whole thing together because the one important thing is that to sell that joined software stack and get the confidence with the customer is important for us, and I think that's a great win for us.

好吧，我認為在我們宣布大陸集團與我們之間的軟件合作之後，[這將發生在] CES 之後，事情進展得非常快。所以我想我肯定也對它的發展速度感到驚訝。而且 - 你感謝 Conti 將這一切放在一起，因為一件重要的事情是銷售加入的軟件堆棧並獲得客戶的信任對我們來說很重要，我認為這對我們來說是一個偉大的勝利。

But at the same time, I want to say again, on the Level 2+, I think that with -- we look at 2 things. One is the momentum with Conti and with [bosch] that we're still working on and still there. But more importantly, I really think now with Shanghai Auto Show and with our CV72AQ announcement, and sampling the component and the software to a customer recently, that gives us the confidence that we're going to see CV72AQ Level 2+ design win this year and maybe quick revenue returns. And in China, you know that the design cycle is not full year. Usually, it's less than 2 years. So we are hopeful to see a really quick revenue return from the CV72AQ. And also that we have a road map to continue to address this market.

但與此同時，我想再說一遍，關於 2+ 級，我認為 - 我們會看兩件事。一個是康蒂和[博世]的勢頭，我們仍在努力，而且仍然存在。但更重要的是，我真的認為現在通過上海車展和我們的 CV72AQ 發布，以及最近向客戶提供的組件和軟件樣品，這讓我們有信心看到 CV72AQ Level 2+ 設計在今年獲勝也許快速的收入回報。而在中國，你知道設計週期不是整年的。通常，它少於 2 年。因此，我們希望看到 CV72AQ 帶來真正快速的收入回報。而且我們有一個路線圖來繼續解決這個市場。

So I think overall, I think the Level 2+ design win is -- we are continuing to be our focus, and we think we'll continue to deliver what we think that we can do.

所以我認為總的來說，我認為 2+ 級設計的勝利是——我們將繼續成為我們的重點，我們認為我們將繼續提供我們認為我們可以做的事情。

(Operator Instructions) And our next question comes from the line of Brian Ruttenbur from Imperial Capital.

（操作員說明）我們的下一個問題來自 Imperial Capital 的 Brian Ruttenbur。

Can you give me, first of all, housekeeping D&A and material (inaudible) amortization?

首先，你能給我內務管理 D&A 和材料（聽不清）攤銷嗎？

Depreciation and amortization, is that the question?

折舊和攤銷，這是個問題嗎？

Yes, that's affirmative.

是的，這是肯定的。

Yes.

是的。

For fiscal Q1, I think it was $5.8 million.

對於第一財季，我認為是 580 萬美元。

Okay. $5.8 million for the first quarter.

好的。第一季度為 580 萬美元。

Also, in terms of DSOs, do you anticipate DSOs stabilizing here? So in other words, trying to understand your cash situation probably will just go down? You probably won't have [air staff] event again? Or do you anticipate DSOs continuing to go down?

另外，就 DSO 而言，您是否預計 DSO 會在此處穩定下來？所以換句話說，試圖了解你的現金狀況可能只會下降？你可能不會再有 [air staff] 活動了？還是您預計 DSO 會繼續下降？

No. I mean what we saw in fiscal Q1 was a normalization of the timing of shipments throughout the quarter versus, say, fiscal Q4, where shipments were very back-end loaded. So we had a couple of quarters. Fiscal Q3, Q4 were both very back-end loaded quarters. Q1, normalized DSOs came down. That provided about a $22 million benefit to cash flow in the quarter.

不，我的意思是我們在第一財季看到的是整個季度出貨時間的正常化，而在第四財季，出貨量非常大。所以我們有幾個季度。第三財季、第四財季都是後端負載非常大的季度。 Q1，標準化 DSO 下降。這為本季度的現金流帶來了約 2200 萬美元的收益。

As we move forward, we would expect DSOs to remain at similar levels. Thus, we would not expect to get a large benefit in a future quarter from another tier step down, for example. So as we move into Q2, obviously, at the revenue level and the other metrics that we gave you, that would be a forecast for a non-GAAP loss, and so you'll have lower free cash flow in fiscal Q2 versus Q1. And as we go through the year, cash flow is just going to be highly dependent upon the revenue levels. We've talked about the fact that we just -- we don't have great visibility at this point in time to the second half revenue.

隨著我們的前進，我們預計 DSO 將保持在相似的水平。因此，例如，我們不希望在未來一個季度從另一個級別下調中獲得很大的好處。因此，當我們進入第二季度時，顯然，在收入水平和我們給你的其他指標上，這將是對非 GAAP 虧損的預測，因此與第一季度相比，第二財政季度的自由現金流量將更低。隨著我們度過這一年，現金流將高度依賴於收入水平。我們已經談到了一個事實，即我們只是 - 我們目前對下半年的收入還沒有很好的了解。

(Operator Instructions) And our next question comes from the line of Suji Desilva from Roth Capital.

（操作員說明）我們的下一個問題來自 Roth Capital 的 Suji Desilva。

Fermi and Brian. Good to see the Continental win.

費米和布萊恩。很高興看到大陸隊獲勝。

I don't know if I missed this, but did you say the L4 commercial vehicle customer, what geography that was?

我不知道我是否錯過了這個，但是你說L4商用車客戶，那是什麼地理位置？

We didn't. And we -- our customer doesn't want us to disclose that yet.

我們沒有。而我們——我們的客戶還不希望我們透露這一點。

Okay. Fair enough.

好的。很公平。

And then I think when we talked about a range of ASPs, 5x to 20x, can you just talk about what drives the delta there? Is that more compute (inaudible) horsepower in the chip? Or is that compute plus software? Any color there would be helpful.

然後我想當我們討論 ASP 的範圍，5 倍到 20 倍時，你能談談是什麼推動了三角洲的發展嗎？芯片中是否有更多的計算（聽不清）馬力？或者是計算加軟件？那裡的任何顏色都會有所幫助。

I think that comment is purely for silicon. That does not include software. So the difference is really from the low end to the high end. So for example, the lower end -- for the high-end chip, we talk about $400 plus. And the lower end, for example, our 655 chips that we're talking about are probably in the $100 range. So it's really that level of the different performance -- price range that we're talking about.

我認為該評論純粹是針對矽的。這不包括軟件。所以區別真的是從低端到高端。因此，例如，低端——對於高端芯片，我們談論的是 400 美元以上。而低端，例如，我們正在談論的 655 芯片可能在 100 美元的範圍內。所以這真的是不同性能的水平——我們正在談論的價格範圍。

I also believe that for automotive road map, you need to have a family of chip to address different performance level for Level 4, Level 3, Level 2+, even multiple layers of Level 2+ require different ships. So I think that's where we [were] talking about.

我還認為，對於汽車路線圖，您需要有一個芯片系列來解決 4 級、3 級、2+ 級的不同性能級別，甚至 2+ 級的多層需要不同的船。所以我認為這就是我們[正在]談論的地方。

(Operator Instructions) And our next question comes from the line of David O'Connor from BMP Paribas.

（操作員說明）我們的下一個問題來自 BMP Paribas 的 David O'Connor。

Great.

偉大的。

Maybe Fermi, just going back to the question on the AI inference opportunity. Can you just give us a bit more detail there on what type of customers are potentially kind of you could engage with on the AI inference side? Is that data [prise] or enterprise? Any particular vertical that you think may be open to you?

也許是 Fermi，回到關於 AI 推理機會的問題。您能否向我們詳細介紹一下您可以在 AI 推理方面與哪些類型的客戶打交道？那是數據 [企業] 還是企業？您認為可能對您開放的任何特定垂直領域？

And I know it's early days, but as you mentioned, you have a working chip and you need to rework the software, but what kind of time frame do you think you could potentially get to revenue there? Is that kind of 3 to 5 years now? Is it kind of -- is it before that? And anything around kind of content opportunity there would be helpful.

我知道現在還處於早期階段，但正如你提到的，你有一個可以工作的芯片，你需要重新設計軟件，但你認為你有可能在什麼樣的時間框架內獲得收入？現在是那種3到5年嗎？是不是——是在那之前？任何關於內容機會的事情都會有所幫助。

Yes. So it's a [hard] question.

是的。所以這是一個 [困難] 問題。

So I think like I said, the target market is really where is -- I think our first target is really on the (inaudible) server side, which where you can focus on the enterprise and the people who are running their own neural network. For people running open AI or other very large model, that might not be the best customer at this point for us. But there are plenty of other different software [SVs] and that use -- driving different neural net model either for the own code or they are running the enterprise level. Those are the probably sweet spot for our chip because we know that, just like I said, the scale definitely matters in this market too, and we need to pick the best market we go after. And we are still in the process to figure that out, but I definitely think that's, what I just said, it's along our current thinking.

所以我認為就像我說的那樣，目標市場真的在哪裡 - 我認為我們的第一個目標實際上是在（聽不清）服務器端，在那裡你可以專注於企業和運行自己的神經網絡的人。對於運行開放式 AI 或其他非常大的模型的人來說，這對我們來說可能不是最好的客戶。但是還有很多其他不同的軟件 [SV] 並且使用 - 驅動不同的神經網絡模型用於自己的代碼或者它們正在運行企業級。這些可能是我們芯片的最佳點，因為我們知道，就像我說的，規模在這個市場上也很重要，我們需要選擇我們追求的最佳市場。我們仍在弄清楚這一點，但我絕對認為這就是我剛才所說的，這是我們目前的想法。

But I think in terms of the content, I think is obviously even better than our automotive ASPs because the competition out there is selling at a much higher level. And also, we have great advantage on both. On the power consumption side, we are not talking about 5%, 10%, we're talking about significant difference (inaudible) power consumption, therefore -- as well as the total system cost. So I think from that point of view, it will help us to get a healthy content there.

但我認為就內容而言，我認為顯然比我們的汽車 ASP 更好，因為那裡的競爭產品的銷售水平要高得多。而且，我們在這兩方面都有很大的優勢。在功耗方面，我們不是在談論 5%、10%，而是在談論顯著差異（聽不清）的功耗，因此——以及系統總成本。所以我認為從這個角度來看，它將幫助我們在那裡獲得健康的內容。

I think there is another question, I forgot.

我想還有一個問題，我忘記了。

Time to revenue.

收入的時間。

Time to revenue.

收入的時間。

So we -- I think we need to get -- but that we're running -- a software (inaudible) running so that a customer can put, and then we can talk about design and then we talk about revenue. So I think if you ask me today, I would say that's a 24-month process totally. That's a wild guess....

所以我們 - 我認為我們需要 - 但我們正在運行 - 一個軟件（聽不清）運行，以便客戶可以放置，然後我們可以討論設計，然後我們討論收入。所以我想如果你今天問我，我會說這完全是一個 24 個月的過程。這是一個瘋狂的猜測......

That's quite helpful to frame that.

這對構建框架非常有幫助。

And maybe just a follow-up on that for Brian. Just on the -- I'm thinking that software development team. Just to clarify, that fits in with the current OpEx envelope? Or would there need to be some kind of step up there to fund (inaudible) that new team?

也許只是布賴恩的後續行動。就在 - 我在想那個軟件開發團隊。澄清一下，這符合當前的 OpEx 信封嗎？或者是否需要採取某種措施來資助（聽不清）那個新團隊？

Yes, our plan is to use our current expertise and team to facilitate this activity. The idea is simple because we have -- our internal team is -- has helping many other customers to put their neural network onto CV3. And we understand [ROM] because it's so large and it takes an extra effort, so that -- the best way to do this is fund it and put internal resource on this project.

是的，我們的計劃是利用我們目前的專業知識和團隊來促進這項活動。這個想法很簡單，因為我們 - 我們的內部團隊 - 已經幫助許多其他客戶將他們的神經網絡放到 CV3 上。我們了解 [ROM]，因為它太大了，需要付出額外的努力，所以 - 最好的方法是為它提供資金並將內部資源投入到這個項目中。

Obviously, it will take a trade-off, right? We don't plan to add much of the resource into the company, so I think that we need to really focus on the area where we think is important. I think it's very important for us is definitely security camera to provide cash for us, maintaining our CV3 momentum with the current design wins like Bosch and Conti, and then try to secure a CV3 design with OEMs and also try to find a resource to fund this ROM, and everything else is a trade-off that we need to consider.

顯然，這需要權衡，對吧？我們不打算向公司增加太多資源，所以我認為我們需要真正關注我們認為重要的領域。我認為對我們來說非常重要的絕對是安全攝像頭為我們提供現金，通過博世和康帝等當前的設計勝利保持我們的 CV3 勢頭，然後嘗試與 OEM 確保 CV3 設計並嘗試尋找資金來源這個 ROM 和其他一切都是我們需要考慮的權衡。

(Operator Instructions) And our next question comes from the line of Vivek Arya from Bank of America.

（操作員說明）我們的下一個問題來自美國銀行的 Vivek Arya。

This is (inaudible) on for Vivek.

這是（聽不清）Vivek 的。

Just first on the cash side. Just curious, I know you mentioned talking about increased R&D investments over the next few quarters. Just with your current cash flow, are you comfortable there? Or do you see any need to raise incremental cash in the future?

首先是現金方面。只是好奇，我知道你提到過在未來幾個季度增加研發投資。就您目前的現金流量而言，您在那裡感到舒服嗎？或者您是否認為未來需要增加現金？

No, we don't see any need to raise incremental cash. We have a strong cash balance, no debt, and we've got a history of being positive from a free cash flow perspective. So no need to raise additional cash.

不，我們認為沒有必要籌集更多現金。我們有強勁的現金餘額，沒有債務，而且從自由現金流的角度來看，我們有過積極的歷史。所以不需要籌集額外的現金。

Great.

偉大的。

And then quickly as a follow up. Just given the current revenue levels, we've seen a relatively substantial profit kind of split between IoT and Auto is now roughly 65%, 35%. Gross margins are still kind of held up relatively okay and above this the long-term range of 59% to 62%. So just kind of curious if you can give us the puts and takes on to the gross margin side and maybe beyond Q2 [personalizing] level?

然後快速跟進。就目前的收入水平而言，我們已經看到物聯網和汽車之間相對可觀的利潤分配現在大約為 65%、35%。毛利率仍然保持相對較好，高於 59% 至 62% 的長期範圍。所以有點好奇，如果你能給我們看跌期權並承擔毛利率方面的責任，甚至可能超過 Q2 [個性化] 水平？

Yes. I think we'd stick with that long-term model that we provided previously. In the recent history, we've been delivering higher gross margins than that, and we would expect that that would continue until we get into the impacts of potentially very large automotive opportunities, and that's why that long-term model provides for a slightly lower gross margin if we need to get there to secure those design wins. But for now, in the foreseeable future, we should be at recent gross margin levels and probably a little bit higher once we get through this inventory correction and get back to slightly higher gross margins that we were posting in last fiscal year.

是的。我認為我們會堅持我們之前提供的長期模型。在最近的歷史中，我們一直提供比這更高的毛利率，我們預計這種情況會持續下去，直到我們進入潛在的非常大的汽車機會的影響，這就是為什麼這種長期模型提供了略低的毛利率毛利率，如果我們需要到達那里以確保那些設計獲勝。但就目前而言，在可預見的未來，我們應該處於最近的毛利率水平，並且一旦我們完成這次庫存調整併回到我們在上一財年公佈的略高的毛利率，可能會更高一點。

(Operator Instructions) And our next question comes from the line of Martin Yang from Oppenheimer.

（操作員說明）我們的下一個問題來自 Oppenheimer 的 Martin Yang。

(technical difficulty)

（技術難度）

I'm sorry, I cannot hear you well.

對不起，我聽不清你說話。

Can you hear me better now?

你現在能聽得更清楚了嗎？

Yes.

是的。

Do you expect most customers either on automotive (technical difficulty)

您是否期望大多數客戶要么在汽車上（技術難度）

Jonathan, let's go to the next question, and then we'll give Martin another chance after this question. .

Jonathan，讓我們轉到下一個問題，然後我們將在這個問題之後再給 Martin 一次機會。 .

Okay. Understood. (Operator Instructions)

好的。明白了。 （操作員說明）

And our next question comes from the line of Matt Ramsey from TD Cowen.

我們的下一個問題來自 TD Cowen 的 Matt Ramsey。

This is Josh Buchalter on behalf of Matt.

我是代表 Matt 的 Josh Buchalter。

It is great to see that the CV3 win with Continental for commercial applications. I was wondering if you could provide some initial feedback on how it's going on the consumer passenger vehicle side? I know -- I recognize it's only been a few months since the partnerships have been announced, but you're going against some entrenched and large competitors in the central ADAS domain. And I was wondering how Conti and Bosch are positioning your CV3-based solutions to win in that market?

很高興看到 CV3 在商業應用方面與大陸集團合作。我想知道您是否可以就消費乘用車方面的進展情況提供一些初步反饋？我知道 - 我知道自宣布合作夥伴關係以來只有幾個月，但你正在與中央 ADAS 領域的一些根深蒂固的大型競爭對手對抗。我想知道 Conti 和 Bosch 如何定位你們基於 CV3 的解決方案以贏得該市場？

Yes. I think first of all, we have a strong relationship with both Bosch and Conti, and the Conti has even further collaboration because of software relationship, and you can see that software relationship already starting off not only on the Level 4, but also we start getting our engineers in collaboration on that. So I think that activity definitely is very helpful.

是的。我認為首先，我們與博世和康帝都有很強的關係，康帝因為軟件關係而有更進一步的合作，你可以看到軟件關係不僅在 Level 4 上已經開始，我們也開始讓我們的工程師在這方面進行合作。所以我認為這個活動肯定是非常有幫助的。

And also on the business on [both] side, both sides are working with the Conti and Bosch definitely help us to address the scale problem partially. And also, we believe that working with Conti, we continue to believe that working with Conti and Bosch is the right thing for us to do to get design wins in the U.S. and Europe.

而且在 [both] 雙方的業務上，雙方都在與 Conti 和 Bosch 合作，這無疑幫助我們部分解決了規模問題。而且，我們相信與 Conti 合作，我們繼續相信與 Conti 和 Bosch 合作是我們在美國和歐洲贏得設計勝利的正確選擇。

I think that said, that I also believe that our first Level 2+ design will come from China, like I said, because the momentum we see after the Shanghai Auto Show is real and that we not only demo a powerful chip, but also we demo something that very few people can do which is running transformer neural network in a lower-end chip that just nobody out there can demo, like the company you mentioned. None of them, the low-end chip can demo [transformer] efficiently. And the transformer will become such an important neural network and being used as benchmark everywhere, so particularly in China where AI neural network performance is very much appreciated.

話雖如此，我也相信我們的第一個 Level 2+ 設計將來自中國，就像我說的那樣，因為我們在上海車展後看到的勢頭是真實的，我們不僅展示了強大的芯片，而且我們演示很少有人可以做的事情，即在低端芯片中運行 Transformer 神經網絡，而那裡沒有人可以演示，就像你提到的公司一樣。沒有一個，低端芯片可以高效演示[變形金剛]。 Transformer 將成為如此重要的神經網絡，並在任何地方都被用作基準，尤其是在 AI 神經網絡性能非常受歡迎的中國。

So I think that's a momentum where we definitely enjoy it. And I think -- I hope we can get several design wins in China this year.

所以我認為這是我們絕對喜歡的勢頭。我想——我希望今年我們能在中國贏得幾項設計大獎。

Appreciate the color. That's actually a nice segue to my follow-up.

欣賞顏色。這實際上是我後續行動的一個很好的轉折點。

Can you talk about -- I think this is the first time you've mentioned auto being a source of inventory correction despite the results coming in line with your expectations. Did that get any appreciably worse during the quarter? I know we've all heard about weakness in the China EV market. It would be helpful if you could help us understand your exposure there? And if that worsened and drove, I guess, some incremental weakness during the quarter?

你能談談——我認為這是你第一次提到汽車是庫存修正的來源，儘管結果符合你的預期。在本季度，情況是否變得更糟？我知道我們都聽說過中國電動汽車市場的疲軟。如果您能幫助我們了解您在那裡的曝光情況會有所幫助嗎？如果這種情況惡化並推動，我猜，本季度會出現一些增量疲軟？

No. What we said before is we think that our inventory control in auto is much less than the inventory control in IoT. That's what we said. We didn't say Auto was not impacted. We definitely see a few -- several customers got impacted, but not as bad as IoT space.

不是的，我們之前說的是我們認為我們在汽車方面的庫存控制比物聯網方面的庫存控制少很多。我們就是這麼說的。我們沒有說汽車沒有受到影響。我們確實看到了一些——一些客戶受到了影響，但沒有物聯網領域那麼嚴重。

So from that point of view, I think we still think that -- I still expect that when the inventory correction finished, auto should go back to growth.

所以從這個角度來看，我認為我們仍然認為——我仍然預計當庫存調整結束時，汽車應該會恢復增長。

(Operator Instructions) Mr. Yang, your line is now open.

（接線員說明）楊先生，您的線路開通了。

I apologize for my technical issue. Can you hear me now?

我為我的技術問題道歉。你能聽到我嗎？

Yes.

是的。

I have a question on CV72. So do you expect your Automotive and IoT customers to -- most of them to opt and adopt the Oculii integration that comes with CV72.

我有一個關於 CV72 的問題。那麼，您是否希望您的汽車和物聯網客戶——他們中的大多數人選擇並採用 CV72 附帶的 Oculii 集成。

That's a good question.

這是個好問題。

So I think for the IoT, the adoption of radar system will be slower because the core market, the IoT market, is moving towards radar but not as fast as auto. Radar in auto space is basically everywhere. Everybody realizes that they need to have a radar solution in any Level 2+ systems. So I think in terms of adoption, that the radar will go to auto space first.

所以我認為對於物聯網，雷達系統的採用會更慢，因為核心市場，物聯網市場，正在轉向雷達，但速度不如汽車。汽車領域的雷達基本上無處不在。每個人都意識到他們需要在任何 2+ 級系統中使用雷達解決方案。所以我認為就採用而言，雷達將首先進入汽車領域。

For CV72AQ, I think that the radar integration will come later because right now, we're focusing on winning the video side. But however, at the second phase of software development, [auto] radar integration will come also.

對於 CV72AQ，我認為雷達集成會稍後出現，因為目前我們正專注於贏得視頻方面的勝利。但是，在軟件開發的第二階段，[自動] 雷達集成也會到來。

This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Dr. Fermi Wang for any further remarks.

今天節目的問答環節到此結束。我想將程序交還給 Fermi Wang 博士以供進一步評論。

Thank you. Thank you very much for you to join us today. Looking forward to talk to you next quarter. Thank you.

謝謝。非常感謝您今天加入我們。期待下個季度與您交談。謝謝。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們，先生們，感謝你們參加今天的會議。這確實結束了程序。您現在可以斷開連接。再會。