Ambarella Inc (AMBA) 2024 Q2 法說會逐字稿

Thank you for standing by, and welcome to Ambarella's Second Quarter Fiscal Year 2024 Earnings Conference Call. (Operator Instructions) As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Louis Gerhardy, Vice President, Corporate Development. Please go ahead.

感謝您的支持，歡迎參加 Ambarella 2024 財年第二季財報電話會議。 （操作員指示）提醒一下，今天的節目正在錄製。現在我想介紹今天節目的主持人，企業發展副總裁 Louis Gerhardy。請繼續。

Thank you, Jonathan. Good afternoon, and thank you for joining our second 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 second quarter fiscal year 2024.

謝謝你，喬納森。下午好，感謝您參加我們 2024 財年第二季財務業績電話會議。今天與我一起通話的是總裁兼執行長 Fermi Wang 博士；以及財務長 Brian White。今天電話會議的主要目的是向您提供有關我們 2024 財年第二季業績的資訊。

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 based on our currently available information and 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. We're under no obligation to update these statements.

今天的討論和對您的問題的回答將包含有關我們預計的財務業績、財務前景、市場成長和對我們解決方案的需求等的前瞻性陳述。這些聲明是基於我們目前掌握的信息，並受風險、不確定性和假設的影響。如果任何這些風險或不確定性成為現實，或者我們的假設被證明是錯誤的，我們的實際結果可能與這些前瞻性陳述有重大差異。我們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. Access to our second 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. The content of today's call as well as the materials posted on our website are Ambarella's property and cannot be reproduced or transcribed without our prior written consent. Fermi will now provide a business update for the quarter. Brian will review the financial results and outlook and then we'll be available for your questions.

這些風險、不確定性和假設以及可能影響我們財務結果的潛在風險因素的其他資訊在我們向美國證券交易委員會提交的文件中進行了更詳細的描述。您可以在我們網站的投資者關係頁面上查看我們的 2024 財年第二季業績、新聞稿、成績單、歷史業績、SEC 文件以及今天電話會議的重播。今天電話會議的內容以及我們網站上發布的資料均屬於 Ambarella 的財產，未經我們事先書面同意不得複製或轉錄。 Fermi 現在將提供本季的業務更新。布萊恩將審查財務結果和前景，然後我們將回答您的問題。

Thank you, Louis, and good afternoon, everyone. Our fiscal Q2 revenue was approximately flat sequentially and consistent with our guidance. Our AI business grew sequentially and year-over-year. While our video processor business was down sequentially and down about 50% from a year ago. Our blended ASP in Q2 was above $12 and is on track to grow about 20% year-over-year. Thanks to the richer mix of AI SoCs, highlighting the value of our emerging AI inference business.

謝謝你，路易斯，大家下午好。我們的財政第二季營收與上一季基本持平，與我們的預期一致。我們的人工智慧業務連續且較去年同期成長。而我們的視訊處理器業務則是環比下滑，比去年同期下滑了約 50%。我們第二季的混合平均銷售價格超過 12 美元，預計將年增約 20%。由於更豐富的AI SoC組合，我們新興的AI推理業務的價值凸顯。

Our mid- to long-term growth outlook for the AI inference processor business remains positive. However, the near-term environment is very challenging for our overall business. Customers are now more aggressively reducing their inventory. And we are now seeing some pockets of weak end market demand, which complicates our customers' ongoing inventory reduction efforts.

我們對人工智慧推理處理器業務的中長期成長前景仍然樂觀。然而，近期環境對我們的整體業務來說非常具有挑戰性。客戶現在正在更積極地減少庫存。我們現在看到一些終端市場需求疲軟，這使我們的客戶正在進行的減少庫存的努力變得更加複雜。

Given this, we have reduced our second half outlook. We are not expecting a recovery in calendar 2023, but we do anticipate our customers' inventory will normalize by the end of the year and set us up for a return to growth in calendar 2024. We continue to expand our position in the rapidly evolving AI inference processor market.

有鑑於此，我們下調了下半年的預期。我們並不期望 2023 年會出現復甦，但我們預計客戶的庫存將在年底前恢復正常，並為 2024 年恢復成長做好準備。我們將繼續擴大我們在快速發展的人工智慧推理處理器市場中的地位。

Cumulatively, we have shipped more than 17 million AI inference processors into device and endpoint for IoT and automotive applications. And we are now expanding our AI inference process reach into vehicle autonomy. As announced on the last earnings call, we continue to evaluate the AI inference accelerator market opportunity.

累計而言，我們已經向物聯網和汽車應用的設備和終端交付了超過 1700 萬個 AI 推理處理器。現在，我們正在將人工智慧推理過程擴展到車輛自主領域。正如上次財報電話會議上宣布的那樣，我們將繼續評估人工智慧推理加速器市場機會。

I will now summarize the status of our 3 major SoC product families, video processors, CV2 and the CV3. First, video processes for human viewing are expected to be about 40% of total revenue this year, down from 55% last year, and they typically command a single-digit ASP. For several years, we have been prioritizing our limited resource on AI technology and products.

我現在將總結我們 3 個主要 SoC 產品系列、視訊處理器、CV2 和 CV3 的狀態。首先，預計今年供人類觀看的影片處理將佔總收入的 40% 左右，低於去年的 55%，而且它們的平均銷售價格通常為個位數。多年來，我們一直將有限的資源優先投入到人工智慧技術和產品上。

And for this reason, we anticipate our video processor revenue to continue to contract. However, the revenue impact from the video processor contraction in fiscal year 2025 is anticipated to be significantly lower than what we are experiencing this year.

因此，我們預計視訊處理器收入將繼續萎縮。然而，預計 2025 財年視訊處理器收縮對營收的影響將大大低於我們今年所經歷的。

Second, our CV2 family of SoCs established Ambarella in the AI inference market, and these SoCs are expected to approach 60% of our total revenue in fiscal 2024, up from 45% last year, this family of AI inference SoC commands an ASP close to $20 and serves computer vision applications for auto and IoT. CV2 remains an important growth market for Ambarella in the mid to long term.

其次，我們的 CV2 系列 SoC 確立了 Ambarella 在 AI 推理市場的地位，預計這些 SoC 將在 2024 財年占我們總收入的 60%，高於去年的 45%，該系列 AI 推理 SoC 的平均銷售價格接近 20 美元，可用於汽車和物聯網的計算機視覺應用。從中長期來看，CV2 仍是 Ambarella 的重要成長市場。

Third, our CV3 family SoC first began to sample a year ago. Based on our third-generation AI inference technology, this SoC target more challenging AI inference workloads such as partial or complete mobile system autonomy. The CV3 family SoC range from $50 to more than $400 per SoC and autonomous driving software stack optimized to run on CV3 can add hundreds of dollars per unit of incremental software value.

第三，我們的 CV3 系列 SoC 一年前就開始提供樣品。基於我們的第三代 AI 推理技術，該 SoC 針對更具挑戰性的 AI 推理工作負載，例如部分或完全移動系統自主性。 CV3 系列 SoC 的價格範圍從每台 SoC 50 美元到 400 多美元不等，並且針對在 CV3 上運行而優化的自動駕駛軟體堆疊可以為每單位增量軟體價值增加數百美元。

The AI inference processor embedded in our CV3 SoC is a starting point for our evaluation of the Gen AI acceleration market. In the last quarter, we began to port META's’ LLaMA 2 to the CV3-AD-High, and we expect to have chatbot demos available later this year. We will provide updates on our continuing evaluation and are encouraged to see generative AI opportunities emerging on both the server and the device side of the market.

我們的 CV3 SoC 中嵌入的 AI 推理處理器是我們評估 Gen AI 加速市場的起點。在上個季度，我們開始將 META 的 LLaMA 2 移植到 CV3-AD-High，我們預計將在今年稍後推出聊天機器人演示。我們將提供有關我們持續評估的最新信息，並鼓勵看到市場伺服器和設備端出現的生成性人工智慧機會。

I will now summarize representative customer activity in the quarter. Design activity in the enterprise security camera market remains robust at medium customers worldwide. Motorola introduced its H5A multisensor camera based on our CV2 AI SoC. The camera offers up to 360-degree view utilizing to full image sensors with up to 32 megapixel resolution and AI analytics.

我現在將總結本季具有代表性的客戶活動。全球中型客戶在企業安全攝影機市場的設計活動依然保持強勁。摩托羅拉推出了基於我們的 CV2 AI SoC 的 H5A 多感測器相機。這款相機利用高達 3,200 萬像素解析度和 AI 分析的全影像感測器提供高達 360 度的視野。

Axis, a unit of Canon, announced the 2-megapixel M4215 cameras and the 4K M4218 cameras both based on our CV25 AI inference SoCs, targeting indoor surveillance applications. Japanese market leader, iPro announced the expansion of its Rapid PTZ X-Series and S-Series with 16 new models based on our CV25 and CV22 AI inference processors.

佳能旗下的 Axis 宣布推出 200 萬像素 M4215 攝影機和 4K M4218 攝影機，這兩款攝影機均基於我們的 CV25 AI 推理 SoC，面向室內監控應用。日本市場領導者 iPro 宣布擴展其 Rapid PTZ X 系列和 S 系列，推出 16 款基於我們的 CV25 和 CV22 AI 推理處理器的新型號。

Dynacolor introduced its model Q next generation multidirectional camera using our CV5 AI processor to support four 5 megapixel sensors. And in South Korea, Hanwha launched 3 new bi-spectrum AI cameras based on our CV2 AI SoC. These cameras provide 4K video and thermal view simultaneously for the rapid detection and the classification of vehicles or intruders. I will now talk about representative customer activity in the automotive market.

Dynacolor 推出了其 Q 型下一代多向相機，採用我們的 CV5 AI 處理器支援四個 5 百萬像素感測器。在韓國，韓華推出了 3 款基於我們的 CV2 AI SoC 的新型雙光譜 AI 攝影機。這些攝影機同時提供 4K 視訊和熱視圖，以便快速偵測和分類車輛或入侵者。現在我將談談汽車市場中具有代表性的客戶活動。

In our May 30 earnings call, I mentioned the positive feedback we received at the Shanghai Auto Show for our CV72AQ AI inference processor, a derivative of the CV3 family of SoCs. During Q2, I visited Tier 1 in China, and I'm pleased to report multiple Tier 1 wins for Level 2+ applications.

在我們 5 月 30 日的財報電話會議上，我提到了我們在上海車展上收到的有關我們的 CV72AQ AI 推理處理器的積極反饋，該處理器是 CV3 系列 SoC 的衍生產品。在第二季度，我訪問了中國的 Tier 1 項目，我很高興地報告多個 2+ 級申請獲得了 Tier 1 項目的勝利。

We expect some of these Tier 1 projects to commence production in the second half of the calendar year 2025. We are pleased to announce our first CV5 win in the passenger vehicle, we expect this win to enter production in the next 12 months. In this application, the CV5 will support AI inference processing for multiple cameras.

我們預計其中一些一級項目將於 2025 年下半年開始生產。我們很高興地宣布我們在乘用車領域首次獲得 CV5 合同，我們預計該合約將在未來 12 個月內投入生產。在此應用中，CV5將支援多攝影機的AI推理處理。

Additionally, in July, GAC Motor in China unveiled its Hyper GT intelligence coupe, including an L2+ ADAS intelligent driver assistance systems based on our CV22AQ. And recently, the Chinese government passed a new policy allowing camera monitoring systems CMS to replace conventional left and right side mirrors.

此外，7月份，中國廣汽集團發布了Hyper GT智慧轎跑車，其中包括基於我們CV22AQ的L2+ ADAS智慧駕駛輔助系統。最近，中國政府通過了一項新政策，讓攝影機監控系統CMS取代傳統的左右後視鏡。

The policy also covers interior rearview mirrors, with the CMS enabled models being legal beginning in July 2023. This CMS system represents a significant opportunity for Ambarella's CV2 family of AI inference processors. During the quarter, BAIC, one of the largest automotive OEMs in China began selling SUVs equipped with a CMS system based on our CV22AQ.

該政策還涵蓋車內後視鏡，支援 CMS 的車型將於 2023 年 7 月開始合法化。這款 CMS 系統為 Ambarella 的 CV2 系列 AI 推理處理器帶來了重大機會。本季度，中國最大的汽車原始設備製造商之一北汽集團開始銷售配備基於我們的 CV22AQ 的 CMS 系統的 SUV。

In the automotive aftermarket, Toyota introduced its wireless backup camera system for trailers based on our H32AQ video processor. The camera will be an option for Toyota's model year 2024 Sequoia and Tundra trucks. Canopy the start-ups resulting from Ford and ADT's 2022 joint venture introduced its first product, the Canopy PickUp Cam. Based on our CV25 AI inference processor, the camera provides full HD recording 180-degree field of view, person detection and reach-in detection for the back of a pickup.

在汽車售後市場，豐田推出了基於我們的 H32AQ 視訊處理器的拖車無線倒車攝影機系統。該攝影機將成為豐田 2024 年 Sequoia 和 Tundra 卡車的選配。 Canopy 是福特和 ADT 於 2022 年成立的合資公司，推出了首款產品 Canopy PickUp Cam。基於我們的 CV25 AI 推理處理器，該攝影機可為皮卡後部提供全高清錄製 180 度視野、人體檢測和伸手檢測功能。

And in June, action camera maker Insta360 announced its Go3 camera, a lightweight but powerful 2K camera that utilizes our H22 video processor. This representative engagement indicate a healthy pace of continuing customer design activity for our AI inference processors.

6 月份，運動相機製造商 Insta360 發布了 Go3 相機，這是一款輕巧但功能強大的 2K 相機，採用了我們的 H22 視訊處理器。此次代表性的參與表明，我們的人工智慧推理處理器的客戶設計活動正在以健康的步伐持續進行。

Our investment strategy is aligned with the anticipated market demand for more sophisticated software-intensive AI inference applications. In the last 3 years, thanks to the CV2 family, we have demonstrated the ability to capture more value per win as customer demand migrate to AI from video processors. Looking forward, we believe our new products such as CV5, CV72 and CV3 are well positioned to support the increasingly sophisticated AI inference workload our customers are anticipating.

我們的投資策略與市場對更複雜的軟體密集型人工智慧推理應用的預期需求一致。在過去 3 年中，由於 CV2 系列，隨著客戶需求從視訊處理器轉向 AI，我們已經證明了能夠從每次勝利中獲得更多價值的能力。展望未來，我們相信我們的新產品（如 CV5、CV72 和 CV3）將能夠很好地支援客戶所期望的日益複雜的 AI 推理工作負載。

As these new products ramp and as we also capture more software value we anticipate our blended ASP will continue to rise. While actively managing expenses through the current market turmoil, we will continue to drive our strategic R&D investment to fully realize the AI inference market opportunities we have discussed today. With that, Brian will now discuss the Q2 results and the outlook in more detail.

隨著這些新產品的推出以及我們獲得更多軟體價值，我們預計我們的混合 ASP 將繼續上升。在當前市場動盪中積極管理費用的同時，我們將繼續推動策略研發投資，以充分實現我們今天討論的人工智慧推理市場機會。接下來，Brian 將更詳細地討論第二季的業績和前景。

Thanks, Fermi. I'll review the financial highlights for the second quarter of fiscal year 2024 and provide a financial outlook for our third quarter ending October 31, 2023.

謝謝，費米。我將回顧 2024 財年第二季的財務亮點，並對截至 2023 年 10 月 31 日的第三季進行財務展望。

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.

我將討論非公認會計準則結果，並請您參考今天的新聞稿，以了解公認會計準則與非公認會計準則結果的詳細對帳。對於非公認會計準則報告，我們已消除股票薪酬費用和根據稅務影響進行調整的收購相關成本。

For fiscal Q2, revenue was $62.1 million, in line with the midpoint of our prior guidance range, flat to the prior quarter and down 23% year-over-year. Sequentially, IoT revenue was up slightly, while automotive revenue was down slightly. Non-GAAP gross margin for fiscal Q2 was 64.6% at the high end of our prior guidance range. Non-GAAP operating expense was $46 million, below our prior guidance range of $48 million to $50 million, driven by continued expense management and the timing of spending between quarters.

第二財季營收為 6,210 萬美元，與我們先前預期範圍的中點一致，與上一季持平，年減 23%。環比來看，物聯網收入略有上升，而汽車收入略有下降。第二財季非公認會計準則毛利率為 64.6%，位於我們先前預期範圍的高點。非公認會計準則營運費用為 4,600 萬美元，低於我們先前指導的 4,800 萬美元至 5,000 萬美元範圍，這得益於持續的費用管理和季度之間的支出時間表。

We remain on track to our internal product development milestones. Q2 net interest and other income was $700,000, and our non-GAAP tax provision was $800,000. We reported a non-GAAP net loss of $6 million or $0.15 loss per diluted share equal to the prior quarter.

我們仍在朝著內部產品開發的里程碑前進。第二季淨利息和其他收入為 700,000 美元，我們的非 GAAP 稅收準備金為 800,000 美元。我們報告的非公認會計準則淨虧損為 600 萬美元，即每股攤薄虧損 0.15 美元，與上一季持平。

Now I'll turn to our balance sheet and cash flow. Fiscal Q2 cash and marketable securities decreased $10.9 million to $216.5 million. DSO was relatively flat at 45 days, while inventory declined from 151 to 147 days, down $6.5 million from the prior quarter. Cash used in operations was $6.8 million and capital expenditures for tangible and intangible assets were $5.4 million. Free cash flow, defined as cash from operations less CapEx, was minus 20% of revenue for the quarter and positive 4% on a trailing 12-month basis.

現在我將討論我們的資產負債表和現金流。第二財季現金和有價證券減少 1,090 萬美元至 2.165 億美元。 DSO 相對持平於 45 天，而庫存從 151 天下降至 147 天，較上一季減少 650 萬美元。營運所用現金為 680 萬美元，有形和無形資產的資本支出為 540 萬美元。自由現金流（定義為經營活動產生的現金減去資本支出）為本季收入的負 20%，為過去 12 個月收入的正 4%。

We had 2 logistics and ODM companies represent 10% or more of our revenue in Q2. WT Microelectronics, a fulfillment partner in Taiwan, that ships to multiple customers in Asia, came in at 54% of revenue. Chicony an ODM who manufactures for multiple IoT customers was 14% of revenue.

我們有兩家物流和 ODM 公司，它們占我們第二季收入的 10% 或更多。文曄微電子 (WT Microelectronics) 是台灣的一家履行合作夥伴，為亞洲的多個客戶發貨，其收入佔比為 54%。為多家物聯網客戶生產產品的 ODM 公司 Chicony 的營收佔 14%。

I'll now discuss the outlook for the third quarter of fiscal year 2024. The near-term revenue outlook is challenging. Customer inventory management actions have accelerated and pockets of end demand softening have appeared. Considering these factors, we estimate that our fiscal Q3 revenue will decline to approximately $50 million plus or minus 4%, driven by our IoT end market.

我現在將討論 2024 財年第三季的前景。近期的收入前景充滿挑戰。客戶庫存管理行動加速，終端需求出現疲軟跡象。考慮到這些因素，我們估計，受物聯網終端市場的影響，我們第三財季的營收將下降至約 5,000 萬美元，上下浮動 4%。

At this time, we anticipate that this revenue range could continue into our fiscal Q4 with sequential revenue growth resuming in our fiscal Q1. We expect fiscal Q3 non-GAAP gross margin to be in the range of 62% to 64%. We expect non-GAAP OpEx in the third quarter to be in the range of $46 million to $49 million, with the increase compared to Q2, driven by higher R&D tied to new product development activities.

目前，我們預計這一收入範圍可能會持續到我們的第四財季，而我們的第一財季營收將恢復連續成長。我們預計第三財季非公認會計準則毛利率將在 62% 至 64% 之間。我們預計第三季非 GAAP 營運支出將在 4,600 萬美元至 4,900 萬美元之間，較第二季有所增加，這得益於與新產品開發活動相關的研發投入增加。

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 40.1 million shares. Ambarella will be participating in Evercore's Semiconductor Conference on September 6, the Asia Investor Conference on September 12 hosted by NASDAQ. The Morgan Stanley Bank of America Future Car Series on September 28 and the Mobility Conference hosted by UBS on October 2.

我們估計淨利息收入約為 100 萬美元。我們的非公認會計準則稅費約為 70 萬美元，稀釋股數約為 4,010 萬股。安霸將參加9月6日Evercore的半導體會議，以及由9月12日納斯達克主辦的亞洲投資者會議。 9月28日的摩根士丹利美國銀行未來汽車系列活動和10月2日瑞銀主辦的移動出行大會。

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

請聯絡我們以了解更多詳情。感謝您今天參加我們的電話會議。說完這些，我將把電話轉給接線生來回答問題。

(Operator Instructions) And our first question comes from the line of Christopher Rolland from Susquehanna.

（操作員指示）我們的第一個問題來自薩斯奎哈納的克里斯多福羅蘭。

Guys, thanks for the question. So if you guys could highlight a little bit more the pockets of weaker end demand that you're seeing there. And then maybe you can put this in terms of undershipment by end market. Last quarter, you talked about as an example, a customer that was under shipping by 30%. Has that undershipment changed at that customer and have new customers joined that kind of level of undershipment as well.

夥計們，謝謝你們的提問。因此，如果你們可以進一步強調一下你們所看到的終端需求較弱的領域。然後也許你可以從終端市場出貨不足的角度來看這個問題。上個季度，您舉了一個例子，一個客戶的出貨量低於 30%。該客戶的出貨不足情況是否發生了變化？是否有新客戶也加入了這種出貨不足的水平？

Right. So first of all, in terms of the pockets of weak end market demand. I think there are 2 areas. One is on the -- of course, in China, we generally think that the China market is weaker than the other market. But I think more specifically, there is our home IoT business, we do see some weakness, and we were expecting some demands for the year-end sales, but we don't see that.

正確的。首先，就終端市場需求疲軟而言。我認為有兩個面向。一是──當然，在中國，我們普遍認為中國市場比其他市場弱。但我認為更具體地說，我們的家庭物聯網業務確實看到了一些弱點，我們預計年底銷售會有一些需求，但我們沒有看到這一點。

So we expect to see -- we are expecting a weaker market in consumer IoT. Those are 2 areas that cause a loss. In terms of the -- you said that from the particular customer last quarter, we quoted about undershipments. In fact, that customer come back with even further push out demand and so that our shipment to them will be even lower than the 30% we talk about last quarter. And I don't think there's people adding to the list, but it's just really a lot of customers already on the list, but we see a new wave of push out cancellation coming to the end quarter and come to -- and all the way going to August. That's where we talk about.

因此我們預期－我們預期消費者物聯網市場將會疲軟。這是造成損失的兩個領域。就您所說的上個季度特定客戶而言，我們引用了有關出貨不足的情況。事實上，該客戶再次提出進一步的額外需求，因此我們向他們發貨的量甚至會低於我們上個季度所說的 30%。而且我不認為有人會將訂單添加到名單中，因為名單上已經有很多客戶了，但我們看到新一波的取消訂單潮即將在本季度末到來，並且會持續到 8 月份。這就是我們要談論的地方。

Understood. Perhaps also the revision for next quarter was pretty significant. Can you talk about what kind of backlog coverage you have going into each of these quarters, what kind of visibility you have? What kind of turns you typically need in each of these quarters and then just kind of broader picture. I think you guys kind of thought maybe July would be the last of all of this. It now looks like the weakness is going to continue through January. I couldn't quite sense it, it didn't sound -- I don't know was January going to be flat? Was it going to be up a little, down a little. Any of your thoughts there. And why do we have confidence that, that is indeed going to be the bottom and we'll bounce from there?

明白了。或許下一季的修訂也相當重要。您能否談談您在每個季度中積壓的訂單情況如何，以及您有什麼樣的了解？在每個季度中你通常需要什麼樣的轉變，然後就是更廣闊的前景。我想你們可能認為七月會是這一切的最後一刻。現在看來，這種疲軟態勢將持續整個一月。我感覺不太清楚，聽起來不像——我不知道一月份是否會持平？它會稍微上升一點，還是會下降一點？您有什麼想法嗎？我們為什麼有信心，那確實是底部，我們會從那裡反彈？

Chris, this is Brian. In terms of backlog coverage coming into any quarter for the company, we typically come in with the quarter in backlog and don't really rely on turns to make the forecast that we provide. And that remains the case. So as we give guidance for Q3, Q3 is covered with backlog. And as we look forward into Q4, you asked about kind of whether that's flat or up or down.

克里斯，這是布萊恩。就公司任何季度的積壓訂單覆蓋率而言，我們通常會根據該季度的積壓訂單情況進行預測，而實際上並不依賴週轉率來做出我們提供的預測。情況至今仍是如此。因此，當我們為第三季提供指導時，第三季已經積壓了訂單。當我們展望第四季度時，您詢問這是持平、上升還是下降。

In the prepared remarks, we talked about an expectation that our range of revenue in fiscal Q4 will likely remain in a similar range as Q3. And again, that's based on additional clarity that we've obtained as we've moved through this cyclical correction. Certainly, we're much farther through that correction at this point. We've seen some new information.

在準備好的評論中，我們談到了這樣的預期：我們的第四財季收入範圍可能與第三財季保持相似的範圍。再次強調，這是基於我們在經歷這項週期性調整過程中獲得的額外清晰度。當然，目前我們已經透過這項修正取得了很大進展。我們看到了一些新的資訊。

We've incorporated that into our current outlooks. We think it's -- we think we have greater confidence in able to -- in our ability to get our heads around how this is shaping up at this point. We think that there is an opportunity for sequential revenue growth as we move into our fiscal Q1 for '25. But that's what we see at this point in time.

我們已將其納入我們當前的展望中。我們認為，我們認為我們更有信心能夠弄清楚目前情況如何。我們認為，隨著我們進入 2025 財年第一季度，我們有機會實現連續收入成長。但這就是我們目前所看到的情況。

And our next question comes from the line of Quinn Bolton from Needham & Company.

我們的下一個問題來自 Needham & Company 的 Quinn Bolton。

I guess first, on some of the opportunities for the CV72S in China, where I think you mentioned having secured several Level 2+ plus ADAS wins that ramp, I think you said towards the end of 2025. But just wondering if you could give us any more color what's the magnitude potentially of the lifetime revenue of those wins? Are they significant or are they sort of smaller projects? And then I've got a follow-up.

首先，我想問 CV72S 在中國的一些機會，我記得您提到已經獲得了幾項 2+ 級及以上 ADAS 的勝利，我記得您說過將在 2025 年底實現。但是，您是否可以給我們更多信息，這些勝利可能帶來的終身收入有多大？它們是否重要或只是一些較小的項目？然後我有一個後續行動。

Right. So I talked about several design wins with the Chinese Tier 1 for this Level 2+ application. And the application is very specific, which is smart ADAS plus parking for the Chinese market. And we believe this is going to be a next high-volume opportunity in China to replace the current single camera ADAS market. I think that -- I think the price is right and feature is right. And we also have major OEMs looking at evaluating the products at this point. So I think -- we think this could be as big as current ADAS market at the given time. Of course, we're ramping up the revenue in early -- in the second half 2025, the volume will be just ramping up, but I think when at peak, I think it can be a significant volume from the Chinese market point of view.

正確的。因此，我談到了與中國一級供應商合作完成的幾項 2+ 級應用設計勝利。而且應用非常具體，就是針對中國市場的智慧ADAS加停車。我們相信這將成為中國下一個大規模取代目前單攝影機 ADAS 市場的機會。我認為——我認為價格合適，功能也合適。目前，我們也有主要的原始設備製造商正在評估這些產品。所以我認為——我們認為這可能與當前 ADAS 市場一樣大。當然，我們早期就在增加收入——到 2025 年下半年，銷量才會開始增加，但我認為，當達到頂峰時，從中國市場的角度來看，銷量可能會非常可觀。

Great. And then second question, it sounds like you guys continue to make progress on the data center or enterprise AI inferencing application, I think mentioned -- you reported the META’ LLaMA model to the CV3 chip. Wondering, as you look out, kind of what are the next steps to for that project? Where are you on the software and platform development? And are you still sort of thinking of this as probably an 18- to 24-month time to revenue. Is that the right time frame to be thinking about potentially for revenue from this opportunity?

偉大的。然後第二個問題，聽起來你們在資料中心或企業 AI 推理應用方面繼續取得進展，我想提到過——你們將 META 的 LLaMA 模型報告給了 CV3 晶片。想知道，當您觀察時，該專案的下一步是什麼？您在軟體和平台開發方面處於什麼位置？您是否仍認為這可能需要 18 到 24 個月才能獲利？這是考慮利用這個機會來獲得潛在收入的正確時間範圍嗎？

Yes. So first of all, we start putting LLaMA 2 as soon as it becomes available. And I think we made great progress on that. We are in a plan to demo this LLaMA 2 in chatbot demo to our customer sometime in the coming quarter.

是的。首先，一旦 LLaMA 2 推出，我們就會立即開始投放。我認為我們在這方面取得了巨大進展。我們計劃在下個季度的某個時候向客戶演示這個聊天機器人 LLaMA 2。

And also, I think that we continue to believe that we -- our current CV3 represents not only cost effect and power efficient, but also performance-wise is capable to compete with A100. So from that point of view, we continue to develop. But I think you see the one important task is continue to build out the software infrastructure to support customers.

而且，我認為我們仍然相信——我們目前的 CV3 不僅具有成本效益和節能效果，而且在性能方面也能夠與 A100 競爭。因此從這個角度來看，我們會繼續發展。但我認為，一項重要任務是繼續建立軟體基礎設施來支援客戶。

That's definitely another area we are ramping up resource. We talk about really carve out a resource from the current employee pool to support the effort. But when we move forward, when we start engaging customer providing customer support, we probably need to increase headcount. But that's the second phase after we start engaging customers with our chatbot demo. In terms of the revenue, last quarter, we talked about -- this is more like a 24-month cycle. I continue to believe that's the case.

這絕對是我們正在加大資源投入的另一個領域。我們討論從現有員工中真正挖掘出資源來支持這項工作。但是當我們繼續前進，當我們開始與客戶接觸並提供客戶支援時，我們可能需要增加員工人數。但這是我們開始透過聊天機器人演示吸引客戶之後的第二階段。就上個季度的收入而言，我們談到了——這更像是一個 24 個月的周期。我依然相信事實確實如此。

And our next question comes from the line of Joe Moore from Morgan Stanley.

我們的下一個問題來自摩根士丹利的喬·摩爾。

Great. Can you talk about how you're thinking about spending your OpEx at this point, close to your revenue, I understand revenues are at a temporary low point. Just how are you thinking about that sort of the balance between the importance of the revenue pipeline versus the sort of near-term cash burn?

偉大的。您能否談談您目前如何考慮支出營運支出，接近您的收入，我知道收入處於暫時的低點。您如何看待收入管道的重要性與短期現金消耗之間的平衡？

So Joe, I think while -- I think you noticed that we are definitely trying to control our expense. You can see that our Q2 OpEx come below the guidance. And that's the direction we're going to continue to look at where we can cut, where we can save. But however, we still want to continue to invest on our strategic directions. Namely Series 3 architecture as well as for the auto and IoT, auto and AI. But those are the 3 big pieces of the investment area, things for below the line, we need to look at whether we have a resource to support it. So while we continue to manage carefully about expense, we do not want to sacrifice our strategic direction.

所以喬，我想你注意到了，我們肯定在努力控制我們的開支。您可以看到我們的第二季營運支出低於預期。這就是我們將繼續研究的方向，看看哪些方面可以削減，哪些方面可以節省。但儘管如此，我們仍然希望繼續投資於我們的策略方向。即Series 3架構以及針對汽車和物聯網、汽車和人工智慧的架構。但這些是投資領域的三大部分，對於線下的事情，我們需要看看我們是否有資源來支持它。因此，在我們繼續謹慎管理開支的同時，我們不想犧牲我們的策略方向。

And then in terms of the video processing market that you talked about, we've obviously recognized that there was going to be a replacement cycle from video processing to computer vision. But do you think you're losing share in the segments, the sort of legacy markets that aren't moving to CV? Is that part of why the numbers are challenged here?

然後就您談到的視訊處理市場而言，我們顯然已經認識到從視訊處理到電腦視覺將會有一個替代週期。但是，您是否認為您在那些尚未轉向 CV 的傳統市場中正在失去份額？這是為什麼這裡的數字受到質疑的部分原因嗎？

I think back what I said in the consumer IP can, majority of the product today is really focused on the low-end cost-competitive solutions. And that's where we really don't spend a lot of money to invest on. As you know, our investment strategy is always focused on the areas where we can continue to demand higher AI performance. And for the consumer IoT side that we haven't focused on a lower-end SoC road map definitely hurt us. I think that's where we have the biggest risk in terms of losing market share.

我回想起我在消費者 IP 中說過的話，當今的大多數產品實際上都專注於低端具有成本競爭力的解決方案。而這正是我們其實不需要花費大量資金進行投資的地方。如您所知，我們的投資策略始終專注於能夠持續要求更高人工智慧效能的領域。對於消費者物聯網方面，我們沒有專注於低端 SoC 路線圖，這無疑對我們造成了傷害。我認為這是我們在失去市場份額方面面臨的最大風險。

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

我們的下一個問題來自 TD Cowen 的 Matt Ramsay。

Forgive me for this question from me, but maybe I read a little bit too much into sort of the tone of your earnings release and some of your commentary. And with all the -- I mean, Joe asked the question just now about your investments and how you're going to focus them. And what I'm trying to get at is maybe one step maybe one level of traction above that is like the focus of the company like changed a lot now?

請原諒我提出這個問題，但也許我對您的收益報告和一些評論的語氣解讀得有點過度了。而且，我的意思是，喬剛才問了有關您的投資以及您將如何集中投資的問題。我想說的是，也許再往前走一步，或再往上一個層次，公司的重點現在發生了很大的變化？

I mean it seems like there's a maybe deemphasis of your camera business and now a shift toward investments in hardware and probably more software to support inference inclusive of some data center applications. So I guess, should we be taking some of the tone here over the last -- tonight and maybe last quarter's call as well as a big shift in direction of where you and your team are focused.

我的意思是，似乎你們可能不再重視相機業務，而是轉向對硬體的投資，甚至可能投入更多軟體來支援推理，包括一些資料中心應用程式。所以我想，我們是否應該採取上次——今晚，也許是上個季度的電話會議的一些基調，以及您和您的團隊關注方向的重大轉變。

And I guess the second part of the question is, has there been a change at all in the focus of the company on the automotive end market, changes in expectation of revenue, timing of revenue, investment, et cetera. Like I said, maybe you can -- if I'm reading things that aren't there, certainly tell me, but I think it's an important question to address.

我想問題的第二部分是，公司對汽車終端市場的關注點是否發生了變化，收入預期、收入時機、投資等是否發生了變化。就像我說的，也許你可以——如果我讀到的東西不存在，當然告訴我，但我認為這是一個需要解決的重要問題。

First of all, I think we continue to -- committed to the IoT market. I think that this is -- when you say camera, I think you meant IoT market. I think that's one area we need to continue to focus and continue to provide solution. After we think that we have a differentiated technology as well as a big customer base, we need to continue -- we will continue to provide the solutions to our customers. So I think that is one area, I will never say we take our eyes off the ball.

首先，我認為我們將繼續致力於物聯網市場。我認為這是——當您說相機時，我認為您指的是物聯網市場。我認為這是我們需要繼續關注並繼續提供解決方案的領域。當我們認為自己擁有了差異化技術以及龐大的客戶群之後，我們需要繼續下去——我們將繼續為客戶提供解決方案。所以我認為這是一個領域，我永遠不會說我們會忽略這個領域。

And given that, I think we want to continue to invest in auto. But when you say changing auto strategy, one thing that I would say what happened in the last 6 months is we believe that the China market will give us earlier and shorter-term revenue than the other market, we definitely moved more focus, our resource to Chinese market for the CV72 and CV3. And I think that's an area we believe is -- can get us faster to the revenue.

有鑑於此，我認為我們希望繼續投資汽車領域。但當你說改變汽車策略時，我想說的是過去 6 個月發生的事情，我們相信中國市場將比其他市場為我們帶來更早和更短期的收入，我們肯定會將更多的重點和資源轉移到中國市場的 CV72 和 CV3 上。我認為這是一個我們相信可以讓我們更快獲得收入的領域。

And -- but that doesn't mean we don't focus on our U.S. and Europe or other markets, we can get our CV3 design but obviously, those design will take a longer time to go to revenue. So I think it's really a focus on the short-term revenue versus longer-term opportunities. But I would say for LLM, one thing is it's become very clear even our current market, like even security camera, when we talk to our professional security camera customers, they all start thinking about how LLM and what impact their business, how to use LLM as to integrate multiple cameras into the services for the service they provide to their customers, and also that automotive guys also start thinking bigger, bigger transformer model, which is the performance getting higher and leverage while we invest in our LLM model.

但這並不意味著我們不關注美國、歐洲或其他市場，我們可以獲得 CV3 設計，但顯然，這些設計需要更長的時間才能產生收入。所以我認為這實際上關注的是短期收入而不是長期機會。但我想說的是，對於 LLM 來說，有一件事已經變得非常清楚，即使是我們目前的市場，例如安全攝像頭，當我們與專業安全攝像頭客戶交談時，他們都開始思考 LLM 如何影響他們的業務，如何使用 LLM 將多個攝像頭集成到他們為客戶提供的服務中，而且汽車行業人士也開始思考、更大的變壓

So I really think that although that LLM start with -- on the server side, which is definitely an interesting area for us. But it's just in the next 3 months when people talk -- when we start talking to our existing customer, it became very clear that LLM is also on the road map for all our existing customers. So LLM a road map for us is not just an opportunity we can choose to invest or not. I hope this is clarifying your question.

所以我真的認為，儘管 LLM 從伺服器端開始，但這對我們來說絕對是一個有趣的領域。但就在接下來的 3 個月裡，當人們開始談論——當我們開始與現有客戶交談時，很明顯 LLM 也在我們所有現有客戶的路線圖上。因此，LLM 對我們來說是一個路線圖，而不僅僅是一個我們可以選擇投資或不投資的機會。我希望這能澄清你的問題。

No, thank you, Fermi for all the color there. I appreciate it. I guess as my follow-up question. You mentioned there's going to be different phases of your new investment around inferences and LLM. Have you guys thought about sizing some of those investment areas? I mean, how -- what number of people or number of dollars that you're shifting internal resources and then if it goes well, like what kind of magnitude of investment are you guys considering given where the P&L is right now?

不，謝謝你，費米，謝謝你帶來的所有色彩。我很感激。我想這是我的後續問題。您提到，您的新投資將圍繞推理和法學碩士 (LLM) 分為不同階段。你們是否考慮過確定一些投資領域的規模？我的意思是，您要轉移多少人或多少美元的內部資源？如果一切順利，考慮到目前的損益情況，你們考慮進行多大規模的投資？

Right now. So for the current phase, we talk about we only carve out a team that we're using our current resource, which is under our payroll already to do that. But obviously, when we start ramping up we probably need to duplicate a similar sized team to support LLM. So we are talking about anywhere from 60, 80 people total to support a limited engagement for the customer like our goal is not going to all the possible customers that we said last time.

現在。因此，在當前階段，我們討論的是我們只組建一個團隊，使用我們現有的資源，該資源已經在我們的工資單下，用於完成這項工作。但顯然，當我們開始擴大規模時，我們可能需要複製一個類似規模的團隊來支援 LLM。因此，我們談論的是總共 60 到 80 個人來支持客戶的有限參與，就像我們的目標不是涵蓋我們上次所說的所有潛在客戶一樣。

We need to prove the concept and with several customers that really want to have a second source for LLM on the server side. Also, several customers in our current customer base that can use LLM for their road map. So I think with the -- to limit the scope and we think that we can fund this activity with our P&L's.

我們需要證明這個概念，並與一些真正希望在伺服器端擁有第二個 LLM 來源的客戶合作。此外，我們目前的客戶群中有幾位客戶可以使用 LLM 作為他們的路線圖。所以我認為——限制範圍，我們認為我們可以用我們的損益表來資助這項活動。

And our next question comes from the line of Ross Seymore from Deutsche Bank.

我們的下一個問題來自德意志銀行的羅斯·西摩。

I want to ask a near-term question and then I have a follow-up. On the near-term side, I guess there's kind of 2 parts. So forgive me for that. But the guide for the third quarter for me or Brian, you mentioned that I think you said the majority of the weakness would be in the IoT side, not auto. I just wanted to get some color on that. And then the second part of the first question here is going to be the fiscal year basis, I think Joe kind of asked it earlier, but it looks to me like your non-CV revenues are going to be down about 50% year-over-year.

我想問一個近期的問題，然後再進行後續提問。就短期而言，我猜想有兩個部分。請原諒我。但是對於我或 Brian 來說，第三季的指南提到，我認為您說大部分弱點在於物聯網方面，而不是汽車方面。我只是想對此進行一些說明。然後這裡第一個問題的第二部分是財政年度基礎，我想喬之前問過這個問題，但在我看來，你的非 CV 收入將同比下降約 50%。

How much of that, if you can guess, do you think is share that's just gone and it's the low-end stuff you mentioned versus just the cyclical dynamic of inventory burn and some of that will snap back.

如果您能猜一下的話，您認為其中有多少份額已經消失，以及您提到的低端產品，而不是庫存消耗的周期性動態，其中一些會反彈。

Right. So first of all, I think that for the short-term side, we definitely believe that it's -- I think the question is related to.

正確的。因此首先，我認為就短期而言，我們肯定相信 - 我認為這個問題與之相關。

Yes. I think your -- the first part of your question, Ross, was a confirmation that the weakness that we see in revenue for fiscal Q3 is driven by the IoT side of the equation. And that is correct. We're seeing obviously some significant rebalancing of inventory and orders across our businesses. But in terms of what's driving this leg down in revenue between Q2 and Q3, it appears to essentially be all IoT at this point.

是的。羅斯，我認為你問題的第一部分證實了我們看到的第三財季收入疲軟是由物聯網方面造成的。這是正確的。我們顯然看到整個業務的庫存和訂單發生了顯著的重新平衡。但就導致第二季和第三季營收下降的原因而言，目前看來基本上都是物聯網造成的。

Right. On the second part is really whether that the video processor side, I think that the video processor side is definitely part of the weakness we talked about in the consumer IoT side. And so that it really depends on the inventory situation whether they --, well, how fast they can rebound to it. But I don't think we can snap back to the original level. We believe that some of our video processor business will be replaced by our low-end CV chip too. So I think that we talk about next year, our video processor business will continue to go down but not in the same scales that we saw this year.

正確的。第二部分是視訊處理器方面，我認為視訊處理器方面絕對是我們在消費者物聯網方面談到的弱點的一部分。所以這實際上取決於庫存情況，他們能否以多快的速度反彈。但我不認為我們能夠恢復到原來的水準。我們相信，我們的部分視訊處理器業務也將被我們的低階 CV 晶片所取代。所以我認為，談到明年，我們的視訊處理器業務將繼續下滑，但下滑幅度不會像今年那麼大。

And then I guess as my follow-up, and forgive me, I guess, we are kind of 3 here. If we look at the growth for fiscal year '25, you said that the video process will still go down. What do you think are the key growth drivers in your CV business that we should look forward to? Either when design wins kick in, and inventory is burned, so cyclically or secularly just roughly speaking, what do you see as the biggest tailwind to offset that video processer headwind.

然後我想作為我的後續行動，請原諒我，我想，我們這裡有 3 個人。如果我們看一下 25 財年的成長，您說視訊流程仍會下降。您認為您的 CV 業務中值得我們期待的關鍵成長動力是什麼？無論是設計勝利開始發揮作用，還是庫存被消耗，因此從週期性或長期性的角度粗略地說，您認為抵消視頻處理器逆風的最大順風是什麼。

So for the -- for CV side, I definitely believe that both inventory burn through as well as our new project like CV5 and CV72 production, will help us to get tailwinds to boost our IoT business. But even on auto side, we believe that there's new design wins can help us to get more revenue growth for next year. So I think that professional -- from the professional IP side, it's become very clear that we think that our market is still -- we hold our market share very well. And as soon as we get the inventory cleaned, we should be able to see a rebound on the current design wins and plus with the CV5 and CV72 design win we talk about, that should help.

因此，對於 CV 方面，我堅信庫存消耗以及 CV5 和 CV72 等新項目的生產都將幫助我們獲得推廣動物聯網業務的順風。但即使在汽車方面，我們相信新的設計勝利可以幫助我們在明年獲得更多的收入成長。因此我認為，從專業智慧財產權來看，很明顯我們認為我們的市場仍然——我們保持著良好的市場份額。一旦我們清理完庫存，我們就應該能夠看到當前設計勝利的反彈，再加上我們談論的 CV5 和 CV72 設計勝利，這應該會有所幫助。

And our next question comes from the line of Tristan Gerra from Robert W. Baird.

我們的下一個問題來自羅伯特·W·貝爾德 (Robert W. Baird) 的特里斯坦·傑拉 (Tristan Gerra)。

This is Todd for Tristan. Just -- you touched on the IoT side of the business, but maybe on the auto side, have you seen any step downs in order patterns from automotive OEMs as they take inventory control measures in the past few months? And do you expect any further order reductions before year-end in auto?

這是托德 (Todd)，特里斯坦 (Tristan)。剛才您談到了物聯網業務，但也許在汽車方面，您是否看到過去幾個月汽車原始設備製造商在採取庫存控制措施時訂單模式有所下降？您預計年底前汽車業的訂單還會進一步減少嗎？

Right. So we did, some small customer that trying -- reducing their inventory, but it's not as bad as the IoT side. I think most of the time, I think our automotive customers continue to take the part of the plan. Although we see some weakness, but it's not like I said, IoT is really the main problem we are dealing with right now.

正確的。所以我們確實嘗試了一些小客戶來減少他們的庫存，但這並不像物聯網方面那麼糟糕。我認為大多數時候，我們的汽車客戶都會繼續參與該計劃。儘管我們看到了一些弱點，但並不像我說的那樣，物聯網才是我們目前面臨的主要問題。

Okay. Great. And then for my follow-up, how different are the potential engagements for CV3 given the long-term nature and software platform cost of developing ADAS solutions? Versus the traditional segments that you play in, including data recorder.

好的。偉大的。然後，對於我的後續問題，考慮到開發 ADAS 解決方案的長期性和軟體平台成本，CV3 的潛在參與有何不同？與您所玩的傳統片段相比，包括數據記錄器。

Right. So obviously, the CV3 design win take much longer than our recorder in the past. Recorder in the past was like 18 months even its auto grade 18-month design cycles. Here in outside China, we talk about 4 years. That's the reason we decided to really focus on our CV72 and CV3 opportunity for -- in China first and so that we can address the revenue -- time to market, time to revenue issue. So for that, we talk about CV72, most likely will have a revenue second half 2025 calendar year. And I even think CV3,we have a design win with a Tier 1 that we might generate revenue in fiscal -- sorry, calendar year 2026. And that is definitely shorter than any other areas that we're seeing.

正確的。顯然，CV3 設計的勝利比我們過去的記錄器花費的時間要長得多。過去的錄音機的設計週期是18個月，甚至汽車等級也是18個月。在中國以外，我們談論的是4年。這就是我們決定真正關注 CV72 和 CV3 機會的原因——首先在中國，這樣我們才能解決收入——上市時間、收入時間問題。因此，我們討論的 CV72 很可能會在 2025 年下半年實現收入。我什至認為 CV3，我們贏得了 Tier 1 的設計，我們可能會在財政年度（抱歉，是 2026 日曆年）產生收入。這肯定比我們看到的任何其他領域都要短。

And our next question comes from the line of Tore Svanberg from Stifel.

我們的下一個問題來自 Stifel 的 Tore Svanberg。

Fermi, just back to sort of the resources and the opportunities and specifically thinking about CV3, the leverage of the software because we're talking about auto, right, but -- which is an edge device, but we're also talking about AI accelerators at the core. So just trying to understand how much portability you have with your current investments so that you don't have to go through a completely new investment cycle, if you will.

費米，回到資源和機會方面，特別是考慮 CV3，軟體的槓桿作用，因為我們正在談論汽車，對吧，但是 - 這是一個邊緣設備，但我們也在談論核心的人工智慧加速器。因此，只是想了解您目前的投資有多大的可移植性，這樣您就不必經歷一個全新的投資週期。

Right. So we don't plan to have a brand-new investment cycle. With our current resource, we only build up our software stack in a way we are ready to demo a brand-new software stack that's 100% AI-based very soon. Like what we talked about in the past, right? We talk about -- we are working with the -- currently on software stack, in parallel we're doing our own software development. With our current resource with the 2 acquisitions, both Oculii as well as VisLab we are at a stage ready to demo our next-generation software stack.

正確的。因此我們不打算開啟一個全新的投資週期。利用我們目前的資源，我們只能以一種方式建立我們的軟體堆棧，以便很快地演示一個 100% 基於 AI 的全新軟體堆疊。就像我們以前談論的那樣，對吧？我們談論的是——我們正在與——當前的軟體堆疊合作，同時我們也在進行自己的軟體開發。憑藉我們透過兩次收購（Oculii 和 VisLab）獲得的現有資源，我們已準備好展示我們的下一代軟體堆疊。

So from a development point of view, software side, we are -- I think we definitely not only proved that we have enough resource, but we'll finish the work to certain extent. So now the issue is with LLM. Also, we founded our first phase of LLM investment based on our current resource and leveraging a lot of investment we put into CV3 software already.

因此，從開發的角度來看，軟體方面，我認為我們不僅證明了我們擁有足夠的資源，而且我們將在一定程度上完成工作。所以現在的問題在於 LLM。此外，我們根據現有資源並利用已在 CV3 軟體上投入的大量投資，建立了第一階段的 LLM 投資。

But for the second phase that we are waiting to see whether the result of first phase of engaging with customers, that -- even that ramping up is not going to be a lot more than what we have today. We definitely -- we'll be ready to talk to investors when we are talking about ramping up. From that point of view, you can think that even for the silicon side for LLM, like I said, this is going to be our next phase of CV3 road map. So we have to build the next generation road map for the silicon side, and this will leverage 100% of existing VLSI team. So any new development or new investment cycle for LLM is a software team to support customers. I hope that clarifies the question.

但對於第二階段，我們正在等待觀察第一階段與客戶接觸的結果，即使這種提升也不會比我們現在的水平高很多。當我們談論擴大規模時，我們肯定會準備好與投資者交談。從這個角度來看，你可以認為，即使對於 LLM 的矽片方面，就像我說的，這也將是我們 CV3 路線圖的下一階段。因此，我們必須為矽片方面建立下一代路線圖，這將充分利用現有的 VLSI 團隊的 100%。因此，LLM 的任何新開發或新投資週期都是由軟體團隊來支援客戶。我希望這能澄清這個問題。

Yes. No, absolutely. And I also wanted to follow up on -- I think it was a previous question about LLM or AI accelerator milestones. So what kind of milestones as investors should we be looking at here? I always understand the timing part of it, but what are some of the more specific milestones that we should be keeping an eye on?

是的。不，絕對不是。我還想跟進一下——我認為這是之前關於 LLM 或 AI 加速器里程碑的問題。那麼，身為投資者，我們該關注什麼樣的里程碑呢？我一直都明白其中的時間部分，但是我們應該關注哪些更具體的里程碑呢？

I think the first important milestone is that we demo our chatbot demos to our customers, and it will happen sometime in the coming quarter. So I think that's important because with the demo, it also shows the performance our -- how we compete compared to our competitors. And all those information will be become -- open to our customers. I think that's probably the biggest near-term milestone.

我認為第一個重要的里程碑是我們向客戶演示我們的聊天機器人演示，這將在下個季度的某個時候發生。所以我認為這很重要，因為透過演示，它也展示了我們的表現——與競爭對手相比我們表現如何。所有這些資訊都將向我們的客戶公開。我認為這可能是近期最大的里程碑。

And our next question comes from the line of Kevin Cassidy from Rosenblatt.

我們的下一個問題來自 Rosenblatt 的 Kevin Cassidy。

My question is also along the lines of the software stack. With the CV72 in China, how much of the software stack you developed, is there a component of that? Can you sell that software stack too.

我的問題也與軟體堆疊有關。對於中國的 CV72，您開發了多少軟體堆棧，其中有組件嗎？你也可以出售該軟體堆疊嗎？

Yes. So there are 2 -- I think our strategy -- software strategy inside China, outside China are different. Inside China, we are counting on our software partners because to really collect data and train the data in China is problematic for us. So we are counting on working with our Chinese software partners to deliver CV72.

是的。所以我認為我們的策略有兩個——中國國內和國外的軟體戰略是不同的。在中國，我們依賴我們的軟體合作夥伴，因為在中國真正收集資料和訓練資料對我們來說是有問題的。因此，我們期待與中國軟體合作夥伴合作推出 CV72。

Last quarter, we talked about -- we already identified multiple, our software partner, and they are porting aggressively their software to our CV72 platform, hardware platform and ready to demo to OEMs in this quarter. So I think from the China side, it's pretty -- we know exactly what to do with CV72. With outside China with CV3, we talked about our collaboration with Conti, but more importantly, we want to demo our own software stack, which we don't plan to bundle 100%, but we definitely think this is an important software, important technology that we can help our customer to leverage how we have developed. This software stack, we will talk about more next time. But however, it's really, we think, one of the very few software stack is 100% AI-based and we can show the performance and the functions are close to the BAIC level. And I think this is definitely one thing we need to talk about not only technology, but also our business model where we are already, sometime in the near future.

上個季度，我們討論過——我們已經確定了多個軟體合作夥伴，他們正在積極地將他們的軟體移植到我們的 CV72 平台、硬體平台上，並準備在本季度向 OEM 進行演示。所以我認為從中國方面來看，我們很清楚該如何處理 CV72。對於中國以外的 CV3，我們談到了與 Conti 的合作，但更重要的是，我們想展示我們自己的軟體堆疊，我們不打算 100% 捆綁，但我們絕對認為這是一個重要的軟體，重要的技術，我們可以幫助我們的客戶利用我們的開發成果。這個軟體棧，我們下次再詳細講。但是，我們認為，它確實是極少數 100% 基於 AI 的軟體堆疊之一，我們可以展示其性能和功能接近 BAIC 水平。我認為這絕對是我們需要討論的一件事，不僅是技術，還有我們現有的商業模式，在不久的將來。

Yes. Kevin, I'll just add next week, September 5 to 8 Continental will be demonstrating our joint software stack on CV3 at the IAA show. So public demonstration, if anyone's in the area to check it out.

是的。凱文，我還要補充一點，下週，9 月 5 日至 8 日，大陸航空將在 IAA 展會上展示我們在 CV3 上的聯合軟體堆疊。因此，如果有人在該地區的話，可以進行公開演示。

We'll look for that. Maybe along those lines of demos, and your work with Conti, is there any update of how many OEMs you're talking to and any progress at all you can...

我們會尋找它。也許沿著這些演示的思路，以及您與 Conti 的合作，您是否有關於您正在與多少​​家 OEM 廠商進行交談的最新消息，以及您能提供的任何進展...

Yes, we announced one design win last time. And this time, we have continued to engage multiple OEMs with potential collaboration with Conti, but also independent that we also talk to OEMs directly. So we still continue to have engagement, multiple engagement with the OEMs at this point.

是的，我們上次宣布了一項設計獲勝。這次，我們繼續與多家 OEM 廠商洽談與 Conti 的潛在合作，但同時也直接與 OEM 廠商進行溝通。因此，我們目前仍繼續與 OEM 保持多方合作。

And our next question comes from the line of Suji Desilva from ROTH.

我們的下一個問題來自 ROTH 的 Suji Desilva。

As thanks for giving us the mix of revenue for the year roughly between the products, video, CV2, CV3. Can you give us a sense of what the mix is either currently or kind of when it normalizes the auto and IoT because it sounds like those 2 categories are having different trends right now, and I think it would be helpful to understand kind of where you sit on your revenue today and then maybe in a year or so when things normalize?

感謝您向我們提供產品、影片、CV2、CV3 等年度收入的大致構成。您能否向我們介紹目前的組合情況，或是當汽車和物聯網正常化時，這兩個類別的組合情況如何？因為聽起來這兩個類別現在有不同的趨勢，我認為了解您目前的收入狀況以及大概一年左右當情況正常化時的收入狀況會很有幫助。

Yes. Sure, Suji. So if you go back to last year, automotive was about 1/4 and IOT is about 3/4. Given the relative stability of automotive this year versus IoT, which has been much more volatile to the downside, that mix is looking more like 70% IoT and 30% automotive for the current year.

是的。當然，蘇吉。如果你回顧去年，汽車約佔 1/4，物聯網約佔 3/4。鑑於今年汽車產業相對穩定，而物聯網產業的下行波動性更大，因此今年的物聯網產業佔比將達到 70%，汽車產業佔比將達到 30%。

Obviously, we said that the size of our SAM we are pursuing over a multiyear time period is much more levered to automotive, where it would be the inverse of that relationship or long term, we would expect automotive to be up 70% and IoT, about 30% as we move out several years in the future as we get traction with CV3 and some of the other automotive solutions.

顯然，我們說過，我們在多年時間內追求的 SAM 規模更多地與汽車有關，而汽車行業與汽車行業的關係則與汽車行業相反，從長期來看，我們預計汽車行業將增長 70%，物聯網將增長 30% 左右，因為隨著 CV3 和其他一些汽車解決方案的發展，我們將在未來幾年內繼續前進。

Okay. That's very helpful. And then just trying to reconcile, guys, the large pipeline number you've been giving the last several quarters versus the inventory correction here. Is there a time frame in which some of that pipeline starts to convert and meaningfully contribute. I imagine that, that process will be independent of the inventory perturbations that are happening right now, just correct me if that's wrong, but that's not pushed out or pulled in any way because of what's going on right now.

好的。這非常有幫助。然後，夥計們，試著調和一下你們在過去幾個季度給出的大量管道數字與這裡的庫存修正。是否存在一個時間框架，讓部分管道開始轉換並做出有意義的貢獻。我想，這個過程將獨立於目前正在發生的庫存擾動，如果錯了請糾正我，但是由於目前正在發生的事情，這個過程不會以任何方式被推遲或拉動。

So I think that you're talking about the final number we talked about. So for the very near term, for example, if you talk about the partner for this year, definitely, there is some impact for the inventory. But in general, I don't think that's the current inventory correction should have any impact to the funnel because it's really based on design wins and also the probability and the volume of the design win. So we'll be ready to talk about this number in November this year.

所以我認為您談論的是我們討論過的最終數字。因此，就短期而言，例如，如果您談論今年的合作夥伴，那麼肯定會對庫存產生一些影響。但總的來說，我認為當前的庫存調整不會對漏斗產生任何影響，因為它實際上是基於設計勝利以及設計勝利的機率和數量。因此我們將準備在今年 11 月討論這個數字。

And can you just give us some idea of what years those start to kind of come in, the elbow of those? Like how many years away that is?

您能否告訴我們這些症狀在什麼年份開始出現？那還有多少年呢？

Well, our funnel, Suji, is 6 years. And given the time it takes to land some of these wins and particularly with CV3, it was back-end loaded in the -- definitely in the latter half of those 6 years.

嗯，我們的漏斗，Suji，已經 6 年了。考慮到取得這些勝利所需的時間，尤其是 CV3，它是在後端加載的——肯定是在這 6 年的後半段。

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

我們的下一個問題來自富國銀行的加里‧莫布利 (Gary Mobley)。

If I'm not mistaken, there's about 20 customers that really move the needle for your overall business. Have you had an opportunity to review those top 20 customers and where they stand with respect to inventory balances, whether healthy or not. And to give us a sense of the either of the 20% sequential revenue decline expected for the third quarter, how many customers are driving that down? Or is it in just one or two.

如果我沒記錯的話，大約有 20 位客戶對您的整體業務產生了真正影響。您是否有機會審查這前 20 名客戶以及他們的庫存餘額狀況（無論是否健康）。為了讓我們了解預計第三季營收將連續下降 20%，有多少客戶導致了這一下降？或只有一兩個。

I think that, in general, for IoT, all of the top 20 customers are having inventory correction problems. But total might not be as bad. Some of the auto customers have an inventory problem, but our top auto guys, some of them may not. So if you look at -- if you really separate the application, looking at IoT, any customer or any of our top customers, all of them have inventory problems, maybe to a different degree, yes. I'm just saying that maybe they will have different degrees of inventory, but all of them have some significant inventories.

我認為，總體而言，對於物聯網而言，前 20 名客戶都存在庫存調整問題。但整體來說可能沒那麼糟。有些汽車客戶有庫存問題，但我們的頂級汽車客戶中，有些人可能沒有。因此，如果你看一下 - 如果你真正分離應用程序，看看物聯網，任何客戶或我們的任何頂級客戶，他們都有庫存問題，可能程度不同，是的。我只是說也許他們的庫存程度不同，但他們都有一些重要的庫存。

Okay. So a follow-up, I wanted to ask about your relationships with Bosch and some other China Tier 1 partners for CV3, where do those stand relative to how Continental is moving along?

好的。那麼接下來我想問一下，在 CV3 專案上，您與博世和其他中國一級合作夥伴的關係如何，相對於大陸集團的發展情況，這些關係如何？

So I think in China, we focus on working with the Chinese Tier 1 as the first priority and also with Conti and Bosch. So I think that -- those are the priorities we have. And we definitely have continued to have appeal some RFQ from OEMs through those Tier 1s. CV72, because this is really -- the silica is not ASIL, but it's a systems ASIL solution.

因此我認為在中國，我們首先要與中國一級供應商合作，同時也要與康迪和博世合作。所以我認為——這些就是我們的優先事項。而且我們肯定會繼續透過那些一級供應商來吸引來自 OEM 的一些 RFQ。 CV72，因為這確實——二氧化矽不是 ASIL，但它是一種系統 ASIL 解決方案。

This is definitely a Chinese Tier 1 play. For Bosch and Conti were focused on the CV3 levels of our solution to Chinese market right now. And we definitely have that multiple discussion with our Bosch and Conti on this.

這絕對是一部中國一級戲劇。因為博世和康迪目前專注於針對中國市場的 CV3 級別解決方案。我們確實與博世和康迪就此進行了多次討論。

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，以便他可以提出進一步的意見。

Thank you, everybody, for joining us today and looking forward to talk to you soon. Thank you.

感謝大家今天的參與，期待很快與你們交談。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，感謝各位參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。再會。