Arbe Robotics Ltd (ARBE) 2023 Q2 法說會逐字稿

Good day, and welcome to the Arbe Robotics Second Quarter 2023 Earnings Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎參加 Arbe Robotics 2023 年第二季度盈利結果電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Miri Segal of MS-IR. Please go ahead.

我現在想將會議轉交給 MS-IR 的 Miri Segal。請繼續。

Thank you, operator and everyone, for joining us today. Welcome to Arbe's Second Quarter 2023 Financial Results Conference Call.

感謝運營商和大家今天加入我們。歡迎參加 Arbe 2023 年第二季度財務業績電話會議。

Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements, and the safe harbor statement outlined in today's press release also pertains to this call. If you have not received a copy of the release, please view it in the Investor Relations section of the company's website. Today, we are joined by Kobi Marenko our base Co-Founder and CEO, who will begin the call with a business update. Then we will turn the call over to Karine Pinto-Flomenboim, CFO, who will review the financials. Finally, we will open the call up for the question-and-answer session.

在我們開始之前，我想提醒我們的聽眾，本次電話會議中提供的某些信息可能包含前瞻性陳述，今天的新聞稿中概述的安全港聲明也與本次電話會議有關。如果您尚未收到新聞稿的副本，請在公司網站的投資者關係部分查看。今天，我們的聯合創始人兼首席執行官 Kobi Marenko 也加入了我們的行列，他將首先介紹業務最新情況。然後我們將把電話轉給首席財務官卡琳·平托-弗洛門博伊姆 (Karine Pinto-Flomenboim)，她將審查財務狀況。最後，我們將開啟問答環節。

With that, I'd like to turn the call over to Kobi Marenko. Kobi, please go ahead.

說到這裡，我想把電話轉給 Kobi Marenko。科比，請繼續。

Thank you, Miri. Good morning, everyone, and thank you for joining us. I will begin by reviewing some of our recent business highlights, then Karine Pinto-Flomenboim, our best CFO, will review the financials in more detail and share our outlook. Finally, we will open the call for the question-and-answer session. We are pleased with the progress we have made in the second quarter.

謝謝你，米里。大家早上好，感謝您加入我們。我將首先回顧我們最近的一些業務亮點，然後我們最好的首席財務官 Karine Pinto-Flomenboim 將更詳細地回顧財務狀況並分享我們的前景。最後，我們將開始問答環節。我們對第二季度取得的進展感到滿意。

Our product development is on track and we are poised to achieve a production-ready chipset by the end of this year. Our collaboration with Tier 1 is rapidly evolving, reinforcing our position in the global auto market. Notably, our cutting edge technology plays an increasingly important role in enhancing our customers' next-generation product offering. Weifu high-technology group, a key Tier 1 we've been working with since 2019, placed an $11.6 million preliminary order for radar chipset which will enable our bank to meet we foods projects and sales demand for 2024 for customers across China.

我們的產品開發已步入正軌，並準備在今年年底前實現可投入生產的芯片組。我們與 Tier 1 的合作正在迅速發展，鞏固了我們在全球汽車市場的地位。值得注意的是，我們的尖端技術在增強客戶的下一代產品供應方面發揮著越來越重要的作用。威孚高科技集團是我們自2019 年以來一直合作的重要一級公司，該集團已下達了價值1,160 萬美元的雷達芯片組初步訂單，這將使我們銀行能夠滿足我們食品項目和2024 年中國客戶的銷售需求。

As many of you are aware, China is one of the fastest-growing automotive industries in the world, and this preliminary order represents a large opportunity for us going forward. We know there is a strong demand for perception radar coming from the region, and we are committed to providing key players such as Weifu with the most advanced perception radar solutions that can provide comprehensive free space mapping of vehicles surrounding. Additionally, Weifu placed a $1 million order for professional services, including engineering services set up of a testing lab and advanced support from Arbe.

正如你們許多人所知，中國是世界上增長最快的汽車工業之一，這一初步訂單對我們來說是一個巨大的機遇。我們知道該地區對感知雷達的需求強勁，我們致力於為威孚等關鍵參與者提供最先進的感知雷達解決方案，可以提供車輛周圍全面的自由空間測繪。此外，威孚還下達了價值100萬美元的專業服務訂單，包括建立測試實驗室的工程服務以及Arbe的高級支持。

As we mentioned in Q1, Weifu has already successfully established a production line and has a functional base ab-ling operation which represents the production configuration. Other C1s are actively constructing their production lines and are in the final stages of B sample development as well. This achievement represents one more milestone for our expansion strategy, starting revenues from China in 2024.

正如我們在第一季度提到的，威孚已經成功建立了一條生產線，並擁有代表生產配置的功能基地。其他C1正在積極建設生產線，並且也處於B樣品開發的最後階段。這一成就標誌著我們的擴張戰略又一個里程碑，我們將於 2024 年在中國開始營收。

In parallel, radars based on our best chipsets are in final stages of selection with 11 major premium OEMs in Europe and in China. We see momentum for our radar mainly for Level 2++ and Level 3 applications in both of those markets, and we have confidence that we will meet our targets for full selections this year. In Q2, we were very happy to have successfully raised $23 million with special situations funds as well as with some of our current investors who are related to our directors. In case you are not familiar with Special Situation funds, they are a collection of value-driven funds that invest in growth-oriented small and micro-cap public equities preliminary in the United States, Israel and Canada.

與此同時，基於我們最好的芯片組的雷達正處於歐洲和中國 11 家主要優質 OEM 廠商的最終選擇階段。我們看到我們的雷達主要針對這兩個市場的 2++ 級和 3 級應用的勢頭，我們有信心今年將實現全面選擇的目標。在第二季度，我們很高興通過特殊情況基金以及與我們董事有關的一些現有投資者成功籌集了 2300 萬美元。如果您不熟悉特殊情況基金，它們是一系列價值驅動型基金，最初投資於美國、以色列和加拿大的成長型小型和微型股票。

The fund states that its mission is to identify complex technology trends likely to materialize in the not too distant future and then invest in small companies with state-of-the-art solutions that critically enable those trends. We expect to use the proceeds to further announce our penetration in the Chinese automotive market expedite our R&D efforts, increase our chipset line capacity capitalized on recently proposed safety regulations and strengthened our balance sheet.

該基金表示，其使命是識別可能在不久的將來實現的複雜技術趨勢，然後投資於擁有最先進解決方案的小公司，這些解決方案能夠關鍵地實現這些趨勢。我們預計將利用所得款項進一步宣布我們在中國汽車市場的滲透，加快我們的研發工作，利用最近提出的安全法規提高我們的芯片組生產線產能，並加強我們的資產負債表。

Just recently, during Q2, we participate participated at the international wireless industry consortium automotive sensor architecture conference hosted by BMW, where we showcased our latest breakthrough in radar camera fusion. Arbe's advanced AI algorithms enable realtime fusion of radar and camera data, empowering vehicles with enhanced object detection and tracking capabilities at high speed and long ranges.

就在最近的第二季度，我們參加了寶馬主辦的國際無線產業聯盟汽車傳感器架構會議，在會上我們展示了我們在雷達攝像頭融合方面的最新突破。 Arbe 先進的人工智能算法可實現雷達和攝像頭數據的實時融合，為車輛提供增強的高速、長距離物體檢測和跟踪能力。

This innovative solution is designed to excel in detecting multiple objects to provide clear pathways on highways and incumbent environment ultimately making it truly safe for drivers and pedestrian and the like.

這種創新的解決方案旨在出色地檢測多個物體，從而在高速公路和現有環境中提供清晰的路徑，最終使駕駛員和行人等真正安全。

As we look to the second half of the year, we are confident in our position, and we remain committed to adding 4 customers' wins by the end of 2023.

展望下半年，我們對自己的地位充滿信心，我們仍然致力於在 2023 年底之前增加 4 個客戶的勝利。

Now I'd like now to turn it over to our CFO, Karine to go over the financials.

現在我想把它交給我們的首席財務官卡琳來檢查財務狀況。

Thank you, Kobi, and hello, everyone. I'd like to review our financial results for the second quarter of 2023 in more detail. Total revenue in the second quarter was $0.3 million, a decrease from $1.2 million in Q2, 2022 and slightly below our expectations. Backlog as of August 9 is $1.5 million, not including the previously announced higher-end preliminary and Weifu preliminary orders. Gross margin for Q2 2023 was negative 1% compared to a positive 72.7% gross margin in Q2 2022 as result of our reduced quarterly revenue as we transition and focus on mass production. Moving on to expenses. In Q2 2023, we reported total operating expenses of $12.6 million compared to $30 million in Q2 2022. The decrease in operating expenses was primarily driven by a decrease in research and development from $9.5 million in Q2 2022 to $9.1 million in Q2 2023, and a decrease in general and administration expenses from $2.3 million in Q2 2022 to $2 million in Q2 2023.

謝謝你，科比，大家好。我想更詳細地回顧一下我們 2023 年第二季度的財務業績。第二季度總收入為 30 萬美元，較 2022 年第二季度的 120 萬美元有所下降，略低於我們的預期。截至8月9日，積壓訂單為150萬美元，其中不包括之前宣布的高端初步訂單和威孚初步訂單。 2023 年第二季度的毛利率為負 1%，而 2022 年第二季度的毛利率為正 72.7%，這是由於我們轉型並專注於大規模生產而導致季度收入減少。繼續討論支出。 2023 年第二季度，我們報告的總運營費用為1260 萬美元，而2022 年第二季度為3000 萬美元。運營費用減少主要是由於研發費用從2022 年第二季度的950 萬美元減少到2023 年第二季度的910 萬美元，以及一般和管理費用從 2022 年第二季度的 230 萬美元減少到 2023 年第二季度的 200 萬美元。

The decrease in both was primarily related to a reduction in subcontractor expenses, favorable exchange rates as well as reduction in D&O insurance costs. partially offset by an increase in our share-based compensation costs related to recent employee grants and to a lesser extent, an increase in fundraising costs. Sales and marketing expenses increased from $1.2 million in Q2 2022 to $1.5 million in Q2 2023. Excluding share-based compensation expenses, sales and marketing level remains unchanged. Operating loss in the second quarter of 2023 was $12.6 million compared to an operating loss of $12.1 million in the second quarter of 2022. Adjusted EBITDA, a non-GAAP measurement, which excludes expenses for share-based compensation and for nonrecurring items, such as fundraising costs, was a loss of $8.4 million in Q2 of 2023.

兩者的下降主要與分包商費用的減少、有利的匯率以及 D&O 保險成本的減少有關。部分被我們與近期員工補助金相關的股權激勵成本的增加所抵消，並且在較小程度上被籌資成本的增加所抵消。銷售和營銷費用從 2022 年第二季度的 120 萬美元增加到 2023 年第二季度的 150 萬美元。不包括股權激勵費用，銷售和營銷水平保持不變。 2023 年第二季度的運營虧損為1260 萬美元，而2022 年第二季度的運營虧損為1210 萬美元。調整後EBITDA 是一種非GAAP 衡量標準，不包括基於股份的薪酬和非經常性項目的費用，例如融資成本，2023 年第二季度虧損 840 萬美元。

Over-performed company's expectations and compared to a loss of $9.5 million in the second quarter of 2022. Net loss in the second quarter of 2023 was $12.6 million compared to a net loss of $11.6 million in the second quarter of 2022. Net loss in Q2 2023 includes $0.03 million of financial expenses mainly related to exchange rate revaluation, offset by income of interest from deposits and to warrant revaluations. Net loss in Q2 2022 included financial income of $0.5 million, mainly related to warrant revaluation.

超出公司預期，而2022 年第二季度的淨虧損為950 萬美元。2023 年第二季度的淨虧損為1,260 萬美元，而2022 年第二季度的淨虧損為1,160 萬美元。第二季度的淨虧損2023 年包括 3 萬美元的財務費用，主要與匯率重估相關，被存款利息收入和權證重估所抵消。 2022 年第二季度的淨虧損包括 50 萬美元的財務收入，主要與認股權證重估有關。

Moving to our balance sheet. As of June 30, 2023, Arbe had $31.6 million in cash and cash equivalents and $25.6 million in short-term bank deposits with no debt. With respect to our guidance for the year, we would like to reiterate what we previously shared. Our goal for 2023 is to achieve 4 design-ins with automakers. Revenue is expected to be in the range of $5 million to $7 million, which will be heavily weighted towards the back end of the year. Adjusted EBITDA is expected to be a loss in the range of $32 million to $35 million. Now we will be happy to take your questions. Operator?

轉向我們的資產負債表。截至2023年6月30日，Arbe擁有3160萬美元的現金和現金等價物以及2560萬美元的短期銀行存款，沒有債務。關於我們今年的指導，我們想重申我們之前分享的內容。我們 2023 年的目標是與汽車製造商實現 4 項設計。收入預計在 500 萬至 700 萬美元之間，這將在今年年底佔據重要地位。調整後的 EBITDA 預計虧損在 3200 萬美元至 3500 萬美元之間。現在我們很樂意回答您的問題。操作員？

(Operator Instructions) The first question today comes from Gary Mobley with Wells Fargo.

（操作員說明）今天的第一個問題來自富國銀行的加里·莫布里（Gary Mobley）。

As we think about the fruition of the preliminary order from Weifu and the backlog from both Weifu and HiRain. Is the conversion of that primarily a function of having production bubble quantities available from GLOBALFOUNDRIES. And maybe if you can give us some update on where you stand in having some production-ready silicon out of your foundry partner?

當我們想到威孚的初步訂單以及威孚和恒潤的積壓訂單的成果時。其轉換主要取決於 GLOBALFOUNDRIES 提供的生產氣泡數量。也許您可以向我們提供一些最新信息，說明您在從代工合作夥伴那裡獲得一些可立即投入生產的芯片方面的進展情況嗎？

Hi Gary, thank you for the question. Basically, yes, this is what it means. So we have around 30-something million dollar value of orders from our partners in China, and this means that GLOBALFOUNDRIES has for us at least this capacity for next year for 2024. Regarding the progress in production, we are more or less in line with our plan. Production of chips in automotive is around the 18 to 24 months plan. And right now, we are basically meeting our milestones in the resolution of weeks. And basically, the 3 chips are in final stages of qualification for automotive AEC-Q100 and for the safety and we don't expect any issues with production right now.

嗨加里，謝謝你的提問。基本上，是的，就是這個意思。所以我們從中國的合作夥伴那裡得到了大約30多萬美元的訂單，這意味著GLOBALFOUNDRIES至少為我們提供了明年2024年的這個產能。關於生產進度，我們或多或少符合我們的計劃。汽車芯片的生產計劃大約需要 18 至 24 個月。現在，我們基本上在幾週內就實現了我們的里程碑。基本上，這 3 款芯片正處於汽車 AEC-Q100 和安全認證的最後階段，我們預計目前生產不會出現任何問題。

We have the chips, the production ships already in our office. They are all functioning on radar samples. So when we are saying that there is a big sample of Tier 1. The base sample includes the chips from the final production version. It just -- and then we just need to finish at the time that those chips needs to work in order to get the final stance that they are qualified.

我們的辦公室裡已經有了芯片和生產船。它們都在雷達樣本上發揮作用。因此，當我們說有第 1 層的大樣本時。基礎樣本包括最終生產版本的芯片。只是 - 然後我們只需要在這些芯片需要工作的時候完成，以獲得它們合格的最終立場。

That's helpful, Kobi. And I was hoping that you can give us an update on the competitive environment you -- I think have been publicly company for about 2 years and the 4D radar market has evolved over that time. I don't know if we can say it is a slower-than-expected pace, but nevertheless, maybe it's given an opportunity for some competitors to catch up. Maybe if you can give us an update there on how you see the competitive environment?

這很有幫助，科比。我希望您能給我們介紹一下您的競爭環境的最新情況——我認為您已經上市大約兩年了，4D 雷達市場在這段時間裡已經發生了變化。我不知道是否可以說這是一個比預期慢的速度，但儘管如此，也許這給了一些競爭對手追趕的機會。也許您可以向我們介紹您如何看待競爭環境的最新情況？

Yes. So first of all, I think that the main thing is that the competitive landscape didn't change. So right now, we see in all of the RFPs that we are in and mainly with the premium German OEMs that we see Continental as a Tier 1 based on TI chipset on the RF side and on as a processor or FPGA. So this is the same chip that we know, the same performance that we know, and this is a radar that has an order of magnitude lower amount of channels than our solution.

是的。首先，我認為最主要的是競爭格局沒有改變。因此，現在，我們在所有參與的 RFP 中看到，主要是與優質德國 OEM 廠商合作，我們將大陸集團視為基於 TI 芯片組的 RF 側以及處理器或 FPGA 的第 1 層。因此，這與我們所知道的芯片相同，性能與我們所知道的相同，而且這是一種雷達，其通道數量比我們的解決方案低一個數量級。

And from the other side, we see mobilize trying to take into production radar with a similar -- more or less similar amount of channels as we -- a bit less, but I think 10% less challenged than what we have -- we still believe that we have the 2, 3 years ahead of Mobileye in terms of maturity of the solution, and we have an advantage in price that is based on our patents and in the system architect direction that we took as opposed to Mobileye.

從另一方面來看，我們看到動員試圖將具有類似數量的雷達投入生產，與我們的通道數量或多或少相似，但我認為比我們所面臨的挑戰少了 10%，我們仍然相信我們在解決方案的成熟度方面比Mobileye 領先2、3 年，並且我們在價格上具有優勢，這是基於我們的專利以及我們所採取的系統架構師方向，而不是Mobileye。

So basically, there's no new players in this market. I believe that the environment now both on the public markets as well as in the private high-tech sector will basically not allow a new competitor to get in. It's $100 million, $200 million of dollars in order to reach to solution. So we're right now, I believe, till the end of the decade, this is the picture that we see two main -- 2 horse race mobilize and our solution and of course, the Tier 1 that's behind us, especially the fact that Veoneer that was our main Tier 1 was purses by Magna that has a big that is a much bigger company, I think, gives us comfort that there is a big player in the market that's pushing our solution into production.

所以基本上，這個市場上沒有新的參與者。我相信現在的環境，無論是公開市場還是私營高科技領域，基本上不會允許新的競爭對手進入。要達成解決方案，需要一億、兩億美元。所以我們現在，我相信，直到本世紀末，這就是我們看到的兩個主要的圖景——2 賽馬動員和我們的解決方案，當然還有我們身後的第 1 層，尤其是以下事實： Veoneer 是我們主要的一級供應商，是Magna 的錢包，我認為這家公司規模更大，這讓我們感到安慰，因為市場上有一個大玩家正在將我們的解決方案投入生產。

The next question comes from Joshua Buchalter with TD Cowen.

下一個問題來自 TD Cowen 的 Joshua Buchalter。

This is Lanny on for Josh. You called out that you're in the final stages of selection for 11 premium OEMs in Europe and China. I was just hoping if you could elaborate on your confidence in terms of the (inaudible) Are they kind of full cost region and the magnitude of these engagement? Is they're leading to (inaudible) production chips? And have a follow-up.

這是蘭尼為喬什代言的。您表示，您正處於歐洲和中國 11 家優質 OEM 廠商選擇的最後階段。我只是希望您能詳細說明一下您對（聽不清）它們是否屬於完全成本區域以及這些參與程度的信心？它們會導致（聽不清）生產芯片嗎？並進行後續跟進。

Sorry, I couldn't hear the question. Your line was too bad. Can you please repeat the question?

抱歉，我聽不到問題。你的線路太差了。您能重複一下這個問題嗎？

Sure. So you called out that you're in the final stages of selection for 11 premium OEMs in Europe and China. I was hoping that you could elaborate on your confidence that 4 of these will convert to meet your 2023 goal? And any color that you can provide on the magnitude of engagement or kind of the different progress levels across the regions? And I have a follow-up.

當然。您表示，您正處於歐洲和中國 11 家優質 OEM 廠商選擇的最後階段。我希望您能詳細說明您對其中 4 個將實現您 2023 年目標的信心嗎？您可以提供任何顏色來說明各地區的參與程度或不同進展水平嗎？我有一個後續行動。

Yes. So first of all, I think that in general, the selections in China are for a much earlier year model, which means that the revenues that we will see are much earlier than in Europe and U.S. So China, we are now in a final selection of car that cars that should go to production in the second half of '25, which means that they need to get radars from the Tier 1s in early '25. And this means that they need to get chips from us by Q1, Q2 '24. So we believe that those selections will definitely provide us with the ability to fulfill our projection for '24 and '25.

是的。首先，我認為總的來說，中國的選擇是針對更早的年份模型，這意味著我們將看到的收入比歐洲和美國要早得多。所以在中國，我們現在處於最終選擇的汽車應該在25 年下半年投入生產，這意味著他們需要在25 年初從Tier 1 獲得雷達。這意味著他們需要在 24 年第一季度、第二季度之前從我們這裡獲得芯片。因此，我們相信這些選擇肯定會讓我們有能力實現 '24 和 '25 的預測。

Also, in China, I cannot elaborate, but there is two major OEMs that wants to produce also the radar by themselves. And those deals will definitely include some major NRE for us. So it will help us also to meet our second half guidance as well as the revenues out there. In Europe, we are basically right now targeting year model '26 and even '27.

另外，在中國，我無法詳細說明，但有兩家主要的原始設備製造商也想自己生產雷達。這些交易肯定會包括我們的一些主要的 NRE。因此，這也將幫助我們實現下半年的指導以及收入。在歐洲，我們現在的目標基本上是 '26 甚至 '27 年車型。

So it's a year after China in terms of revenues. But the volume in Europe is much higher. And of course, the fact that the premium German OEM another big car manufacturer in Europe will select our technology, it of course means a lot for our technology.

因此，就收入而言，它比中國落後一年。但歐洲的銷量要高得多。當然，歐洲另一家大型汽車製造商的優質德國原始設備製造商將選擇我們的技術，這對我們的技術來說當然意義重大。

Great. For my follow-up, I was hoping that you could talk about your $11.6 million order with Weifu technology a bit more. If this is unique, their estimated requirements for 2024, how can we expect this to kind of layer in and layer into the model for that course of time?

偉大的。在我的後續行動中，我希望您能多談談威孚科技 1160 萬美元的訂單。如果這是獨一無二的，他們對 2024 年的估計需求，我們如何才能期望在這段時間內將其分層到模型中？

This is -- basically, the $11.6 million is the expectation of Weifu for '24. I remind you that we also have a preliminary order from HiRain from last quarter of another $30 million for '24.

基本上，1160 萬美元是威孚對 24 年的期望。我提醒您，我們還收到了 HiRain 上季度的 24 年另外 3000 萬美元的初步訂單。

So this is basically Altogether, this is what is giving us our focus for '24.

所以這基本上就是我們 24 世紀的重點。

The next question comes from Jaime Perez with RF Lafferty.

下一個問題來自 Jaime Perez 和 RF Lafferty。

Good day, everybody. I mean gross margins took a hit this quarter. Could you give us some color on the progression as you ramp up and meet the annual expectations for revenue?

大家好。我的意思是本季度毛利率受到了打擊。您能否向我們介紹一下您在提升並滿足年度收入預期方面的進展情況？

I think that the gross margins sorry -- Just take it.

我認為毛利率很抱歉——就接受吧。

Just to say, this is, first, as expected. The revenue levels meet only the fixed cost of our cost of revenue for portion for the COGS. That's why it's driving on a 0 margin profitability for this quarter. But of course, as we progress toward the second half of the year, with our expectations of revenues, the fixed portion will still remain and our contributed margin is profitable margin, which is above the 60%. So taking it all into a mixture it will drive us to higher percentage of -- and, of course, positive ones.

只是說，這首先是預期的。收入水平僅滿足我們的銷貨成本部分的收入成本的固定成本。這就是為什麼它本季度的利潤率為零。但當然，隨著我們進入下半年，按照我們對收入的預期，固定部分仍然會保留，我們的貢獻利潤率是利潤率，高於60%。因此，將所有這些綜合起來，將推動我們獲得更高的百分比——當然，還有積極的百分比。

All right. So reading into it. I mean, so right now, we're looking at, let's say, this fixed cost and then as you ramp up, which you sort of levering the variable costs. All right. Next, to meet the annual revenue guidance, when do you need to ship those chips to the client? And do you book revenues when they receive them or when the cars are sold to the client? What sort of -- my question is, One is the revenue recognition? .

好的。所以閱讀它。我的意思是，現在我們正在研究固定成本，然後隨著你的增加，你可以利用可變成本。好的。接下來，為了滿足年度收入指導，您需要什麼時候將這些芯片運送給客戶？當他們收到收入或將汽車出售給客戶時，您會記入收入嗎？我的問題是，一是收入確認？ 。

Basically will begin we begin to shift we will begin to ship the chips early -- early next year, we believe, maybe we will be able to ship some of it in -- by the end of this year, but the majority of it is going to be in early '24. Basically, the revenue recognition and Karine can elaborate upon delivery. On to the Tier 1.

基本上我們會開始轉變，我們將儘早開始運送芯片——明年初，我們相信，也許我們能夠在今年年底之前運送其中一些芯片，但其中大部分是將於 24 年初。基本上，收入確認和Karine 可以在交付時詳細說明。進入 1 級。

Shipments, yes. Thank you, Jaime.

發貨，是的。謝謝你，海梅。

(Operator Instructions) The next question comes from Matthew Galinko with Maxim Group.

（操作員說明）下一個問題來自 Maxim Group 的 Matthew Galinko。

So we see the progression in the backlog number. I guess I'm just curious if that's excluding the 2 major Tier 1s that we've talked about, where is the backlog growth coming from?

所以我們看到積壓數量的進展。我想我只是好奇，如果不包括我們討論過的兩個主要一級供應商，那麼積壓的增長來自哪裡？

So yes, as I stated, it excludes the recent Weifu and HiRain preliminary orders, but it does include -- we mentioned in our PR as well the $1 million of order from Weifu for services, which will be -- which we received, and that's included in our orders, and we'll also be able to recognize it towards the end of the second half of the year.

所以，是的，正如我所說，它不包括最近威孚和恒潤的初步訂單，但它確實包括——我們在公關中提到了威孚的100 萬美元服務訂單，這將是——我們收到的，以及這已包含在我們的訂單中，我們也將能夠在今年下半年末認識到它。

Okay. I think you might have mentioned also in your prepared that revenue was below internal expectations for the quarter. So I guess, can you just touch on maybe why and does it does it influence your view on where we land for the full year range? Or is that just a timing issue that doesn't really change the full year expectation? .

好的。我想您可能在準備中也提到過該季度的收入低於內部預期。所以我想，你能談談為什麼嗎？它是否會影響你對我們全年範圍的看法？或者這只是一個時間問題，並沒有真正改變全年預期？ 。

The first 2 quarters' revenues this year were not really meaningful. So -- when we say it's below expectation, it's below $50,000 or something. So it's a matter of shifting of a few chipsets of few radar models that shifted between Q2 and Q3. So basically, I think this year's revenues are not the ones that are really important. The real revenues is 24% and up.

今年前兩個季度的收入並沒有多大意義。所以——當我們說它低於預期時，它是低於 50,000 美元之類的。因此，這是在第二季度和第三季度之間轉移的少數雷達型號的一些芯片組的問題。所以基本上，我認為今年的收入並不是真正重要的。實際收入為 24% 甚至更高。

This year, we're still selling chipset for evaluation, radars for evaluation, some (inaudible) and so on. So before we will start shipping full production. I think that the revenues and the level of the revenues is basically meaningless. It's not really showing anything about our traction, maybe the other way around. So our ability to be laser-focused on the selections and supporting our Tier 1 on the selections that they are going through with their customers is, of course, coming, we can always sell another 10 or 20 systems to clients that, by the end of the day, will buy from us 100 radar or 100 chips that it's not relevant. We are laser focused on the big lines on the big selections and not on small projects that we can always take.

今年，我們仍然銷售用於評估的芯片組、用於評估的雷達、一些（聽不清）等等。因此，在我們開始發貨之前，我們將全面生產。我認為收入和收入水平基本上沒有意義。它並沒有真正顯示出我們的吸引力，也許相反。因此，我們有能力專注於選擇並支持我們的一級客戶正在與客戶進行的選擇，我們總是可以向客戶銷售另外 10 或 20 個系統，到最後當天，將從我們這裡購買100 個雷達或100個芯片，這是不相關的。我們專注於大選擇的大方向，而不是我們總是可以採取的小項目。

Got it. And then just final one for me. I think you touched on a radar camera, sensor fusion demonstration. Just curious, is that the direction that you think OEMs are starting to pull as far as the their sensor stack looking out into 27 model years? Or how are you thinking about it? And how does that impact your go-to-market, if at all?

知道了。然後對我來說就是最後一件事。我認為您談到了雷達攝像頭、傳感器融合演示。只是好奇，您認為 OEM 廠商開始將其傳感器堆棧推向 27 個車型年的方向嗎？或者說你是怎麼想的？如果有的話，這會對您的上市有何影響？

So basically, we're acquiring as much as we can to build software stack that will help our final customers, the car manufacturers adapt the technology as fast as they can. So we are working to help them with the Free Space Mapping, with the classification of the objects based on the radar and also with the fusion. So this is -- we are not going to take this code and this software stack into production, we will just provide it as a reference code to our customers in order to reduce for them the effort for taking those technologies to production.

因此，基本上，我們正在盡可能多地收購來構建軟件堆棧，以幫助我們的最終客戶（汽車製造商）盡快適應該技術。因此，我們正在努力幫助他們進行自由空間測繪、基於雷達的物體分類以及融合。所以，我們不會將此代碼和軟件堆棧投入生產，我們只會將其作為參考代碼提供給我們的客戶，以減少他們將這些技術投入生產的工作量。

The next question comes from Suji Desilva with ROTH Capital.

下一個問題來自羅斯資本的 Suji Desilva。

So congrats on the progress here. The customers that are in the final stage of selection, Kobi, what are the remaining steps in there process that they are evaluating and that are between here and sort of final decisions, just so we understand the remaining process?

所以祝賀這裡取得的進展。處於選擇最後階段的客戶，Kobi，他們正在評估的流程中還有哪些剩餘步驟，以及在此處和最終決策之間的剩餘步驟是什麼，以便我們了解剩餘的流程？

I think there is two things here that the Tier 1 needs to meet in order to get into selection. First of all, I think in all of the evaluations that we are in, it's clear that the technology and the product is better than the competition and the price is attractive. What they are waiting to see is a full sample from the Tier 1, especially from Magna also from hiring. The fact that we have a big sample with Weifu is very good, but we need to have also a big sample with the last version of the chips going to production from HiRain and from Magna.

我認為一級需要滿足兩件事才能進入選擇。首先，我認為在我們參與的所有評估中，很明顯我們的技術和產品比競爭對手更好，而且價格也很有吸引力。他們等待看到的是來自一級的完整樣本，尤其是來自麥格納的招聘樣本。事實上，我們與威孚公司有一個大樣品，這是非常好的，但我們還需要有一個大樣品，其中包括恒潤科技和麥格納即將生產的最新版本的芯片。

This is expected to be around, I believe, during September. So they -- both of them already have the harbor, and it's in the final stages to bring up.

我相信這預計會在九月份左右發生。所以他們——他們倆都已經擁有了港口，而且正處於建造的最後階段。

So this is a major milestone for the selection. And then we will be left with the last but not least, the final negotiation on the price. And we believe that by September, October, we will be able to be selected in some of those projects.

因此，這是選擇的一個重要里程碑。然後我們將進行最後但並非最不重要的一步，即最終的價格談判。我們相信，到九月、十月，我們將能夠被選中參與其中一些項目。

And then one other question, I apologize if you already covered this. the Weifu announcement, does that cover a single automotive OEM? Or is that multiple auto OEMs that they're working with -- if it is in auto, I just wanted to clarify that or if it's not audit?

還有一個問題，如果您已經討論過這個問題，我深表歉意。威孚的公告是否涵蓋單一汽車整車廠？或者他們正在與多個汽車原始設備製造商合作——如果是在汽車領域，我只是想澄清一下，或者如果不是審計？

It's a -- part of it is OEM and part of it is the project that we won together for -- with DiDi for the Level 4 trucks. That we announced last quarter.

這是一個——一部分是 OEM，一部分是我們與 DiDi 共同贏得的 4 級卡車項目。我們上季度宣布了這一點。

This concludes our question-and-answer session. I would like to turn the conference back over to Kobi Marenko, Arbe's CEO, for any closing remarks.

我們的問答環節到此結束。我想將會議轉回 Arbe 首席執行官 Kobi Marenko 致閉幕詞。

Thank you. We were so pleased that you joined us today to our employees and partners, your continued dedication is deeply appreciated. We look forward to updating you further on Arbe's progress in the coming months. Look out for updates as we prepare for several investor events, including the JPMorgan Auto Conference that happens today, the Jefferies Chicago semis Conference on August 29 and the Jefferies Israel Tech Track September 12.

謝謝。我們很高興您今天加入我們的員工和合作夥伴行列，我們對您持續的奉獻精神深表感謝。我們期待在未來幾個月向您進一步通報 Arbe 的進展情況。請留意我們為多項投資者活動做準備的最新動態，包括今天舉行的摩根大通汽車會議、8 月29 日舉行的傑富瑞芝加哥半決賽和9 月12 日舉行的傑富瑞以色列科技賽道。

Please contact us at investors@arberobotics.com or visit our sites to schedule a meeting.

請通過 Investors@arberobotics.com 聯繫我們或訪問我們的網站安排會議。

Thank you, and goodbye for now.

謝謝你，現在再見了。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。