BlackBerry Ltd (BB) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to the BlackBerry Second Quarter Fiscal Year 2023 Results Conference Call. My name is Brent, and I will be your conference moderator for today's call.

下午好，歡迎參加 BlackBerry 2023 財年第二季度業績電話會議。我的名字是布倫特，我將擔任今天電話會議的主持人。

(Operator Instructions)

（操作員說明）

As a reminder, this conference is being recorded for replay purposes. I would now like to turn today's call over to Mr. Tim Foote, Vice President of BlackBerry Investor Relations. Sir, please go ahead.

提醒一下，正在錄製本次會議以供重播。我現在想將今天的電話轉給黑莓投資者關係副總裁 Tim Foote 先生。先生，請繼續。

Thank you, Brent. Good afternoon, and welcome to Blackberry's Second Quarter Fiscal 2023 Earnings Conference Call. With me on the call today are Executive Chair and Chief Executive Officer, John Chen; and Chief Financial Officer, Steve Rai. After I read our cautionary notes regarding forward-looking statements, John will provide a business update, and Steve will review the financial results. We will then open the call for a brief Q&A session. This call is available to the general public by pooling numbers and via webcast in the Investor Information section at blackberry.com. A replay will also be available on the blackberry.com website.

謝謝你，布倫特。下午好，歡迎參加 Blackberry 2023 財年第二季度收益電話會議。今天與我通話的還有執行主席兼首席執行官 John Chen；和首席財務官 Steve Rai。在我閱讀我們關於前瞻性陳述的警示說明後，約翰將提供業務更新，史蒂夫將審查財務結果。然後，我們將打開電話進行簡短的問答環節。公眾可以通過匯總號碼和通過 blackberry.com 的“投資者信息”部分中的網絡廣播向公眾發起此次電話會議。 blackberry.com 網站上也將提供重播。

Some of the statements we'll be making today constitute forward-looking statements and are made pursuant to the safe harbor provisions of applicable U.S. and Canadian Securities Laws. We'll indicate forward-looking statements by using words such as expect, will, should, model, intend, believe and similar expressions. Forward-looking statements are based on estimates and assumptions made by the company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors that the company believes are relevant.

我們今天將做出的一些陳述構成前瞻性陳述，並根據適用的美國和加拿大證券法的安全港條款作出。我們將使用諸如期望、將、應該、模型、打算、相信和類似的表達方式來表明前瞻性陳述。前瞻性陳述基於公司根據其經驗和對歷史趨勢、當前狀況和預期未來發展的看法以及公司認為相關的其他因素做出的估計和假設。

Many factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward-looking statements. These factors include the risk factors that are discussed in the company's annual filings and MD&A. You should not place undue reliance on the company's forward-looking statements. Any forward-looking statements are made only as of today, and the company has no intention and undertakes no obligation to update or revise any of them, except as required by law.

許多因素可能導致公司的實際結果或業績與前瞻性陳述中明示或暗示的結果或業績存在重大差異。這些因素包括公司年度申報和 MD&A 中討論的風險因素。您不應過分依賴公司的前瞻性陳述。任何前瞻性陳述僅在今天作出，公司無意且不承擔更新或修改任何前瞻性陳述的義務，除非法律要求。

As is customary during the call, John and Steve will reference non-GAAP numbers in their summary of our quarterly results. For a reconciliation between our GAAP and non-GAAP numbers, please see the earnings press release published earlier today, which is available on EDGAR, SEDAR and blackberry.com website.

按照電話會議的慣例，約翰和史蒂夫將在他們的季度業績摘要中引用非公認會計準則數字。有關我們的 GAAP 和非 GAAP 數字之間的對賬，請參閱今天早些時候發布的收益新聞稿，該新聞稿可在 EDGAR、SEDAR 和 blackberry.com 網站上獲得。

And with that, I'll turn the call over to John.

有了這個，我會把電話轉給約翰。

Thank you, Tim. Good afternoon, everyone, and thanks for joining today's call. This was a solid quarter for BlackBerry, delivering revenue in line with expectations and beats on the earnings. I'll start today with view with the IoT business unit. This quarter, IoT delivered a strong 28% year-over-year revenue growth. QNX design base revenue remains the top performer. That is revenue from developer -- development fees and professional services. Q1 was the third consecutive quarter that we set an all-time record in this category. And this quarter, we almost set another. When we win a new design, this revenue is the first to be recognized with royalties coming later when a vehicle enters into production. This strength in design phase revenue is expected to continue, given the significant amount of professional services we already have lined up and the pipeline of potential new design wins in the next few quarters.

謝謝你，蒂姆。大家下午好，感謝您加入今天的電話會議。對於黑莓來說，這是一個穩健的季度，其收入符合預期並超過了收益。今天我將從物聯網業務部門的觀點開始。本季度，物聯網實現了 28% 的強勁收入同比增長。 QNX 設計基礎收入仍然是表現最好的。那是來自開發商的收入——開發費和專業服務。第一季度是我們連續第三個季度創下該類別的歷史記錄。而本季度，我們幾乎設置了另一個。當我們贏得一個新設計時，這筆收入是第一個被確認的，當車輛投入生產時，特許權使用費就會隨之而來。鑑於我們已經安排了大量的專業服務以及未來幾個季度潛在的新設計獲勝渠道，預計設計階段收入的這種優勢將繼續存在。

On the production front, we saw an uptick in royalty revenue, but it remains below the pre-pandemic level, mainly due to supply chain headwinds. Gross margin came in at 82%. The strength of design wins was clearly illustrated by Volkswagen, one of the world's largest automobile selecting BlackBerry QNX for its new VW.OS platform. This platform will be deployed in all brands across the Volkswagen Group. We're rapidly being trusted to power the safety-critical ADAS and autonomous drive applications. The QNX is currently the market leader.

在生產方面，我們看到特許權使用費收入有所上升，但仍低於大流行前的水平，這主要是由於供應鏈逆風。毛利率為 82%。大眾汽車公司是世界上最大的汽車公司之一，它選擇了黑莓 QNX 作為其新的 VW.OS 平台，清楚地說明了設計勝利的力量。該平台將部署在大眾汽車集團的所有品牌中。我們正迅速被信任為安全關鍵型 ADAS 和自動駕駛應用程序提供動力。 QNX 目前是市場領導者。

This builds on design wins in recent quarters with BMW, Volvo and a long list of electric vehicle players in China. BlackBerry continues to win market share in core safety-critical domains. A couple of examples included an ADAS design win with Hyundai and a digital copper design with one of the world's largest Tier 1 supplier that utilizes the QNX hypervisor. The hypervisor will host a safety-critical instrument cluster along non-safety-critical entertainment applications all on the same chip.

這建立在最近幾個季度與寶馬、沃爾沃和一長串中國電動汽車廠商的設計勝利之上。黑莓繼續在核心安全關鍵領域贏得市場份額。一些例子包括與現代的 ADAS 設計獲勝，以及與使用 QNX 管理程序的世界上最大的一級供應商之一的數字銅設計。管理程序將在同一個芯片上託管一個安全關鍵儀表組以及非安全關鍵娛樂應用程序。

On the EV front, we won another ADAS design with the Chinese automaker, and Blackberry QNX is now embedded in 7 of the China's 10 largest EV OEMs. In addition to our strong position in auto, we have significant opportunities in the other verticals, too. This quarter, we announced additional support for the aerospace and defense market, with QNX achieving the latest technical standard known as The Future Airborne Capability Environment, or FACE. FACE is a software standard, jointly developed by government and industry that establish a common operating environment. It enables the reuse of software components across different hardware, reducing developer friction and costs.

在電動汽車方面，我們贏得了中國汽車製造商的另一項 ADAS 設計，黑莓 QNX 現已嵌入中國 10 大電動汽車 OEM 中的 7 家。除了我們在汽車領域的強勢地位外，我們在其他垂直領域也有重大機會。本季度，我們宣佈為航空航天和國防市場提供額外支持，QNX 實現了被稱為未來機載能力環境 (FACE) 的最新技術標準。 FACE 是一個軟件標準，由政府和行業共同開發，建立一個通用的運行環境。它支持跨不同硬件重用軟件組件，從而減少開發人員的摩擦和成本。

In addition to aerospace and defense, we saw progress in the medical and industrial markets with wins that include surgical robotics, a retail distribution pick-and-pack robot as well as control for a nuclear power plant. Overall, in the quarter, we won 19 new designs with 9 in auto and 10 in the general embedded market. We successfully added talent to our IoT team this quarter despite the tight labor market. This investment is supported by the large and growing schedule of professional services secured through the recent design wins, and by adding headcount, it will enable additional revenue.

除了航空航天和國防，我們還看到了醫療和工業市場的進步，其中包括手術機器人、零售配送揀貨和包裝機器人以及核電站的控制。總體而言，在本季度，我們贏得了 19 款新設計，其中 9 款用於汽車，10 款用於一般嵌入式市場。儘管勞動力市場緊張，我們本季度成功地為我們的物聯網團隊增加了人才。這項投資得到了通過最近的設計勝利獲得的龐大且不斷增長的專業服務計劃的支持，並且通過增加員工人數，它將帶來額外的收入。

The macro environment for auto remains a mixed picture with varying dynamics across regions and OEMs. The Chinese market where Blackberry has won a number of designs recently appears to be bouncing back to the end -- due to the end of some COVID-related shutdowns and the impact (inaudible) measures. In North America and Europe, however, there appears to be a short-term contraction with certain chip supplies, constraining (inaudible) OEM to build inventory and meet demand. Going forward, the impact of rising interest rate on consumer financing, together with economic uncertainty created by the possibility -- creating (inaudible) choppiness. Despite this ongoing challenge, we're delivering strong year-over-year growth and have a solid pipeline of potential new designs coming in the upcoming quarters.

汽車的宏觀環境仍然是一個複雜的畫面，不同地區和原始設備製造商之間的動態變化很大。由於一些與 COVID 相關的關閉和影響（聽不清）措施的結束，黑莓最近贏得了許多設計的中國市場似乎正在反彈。然而，在北美和歐洲，某些芯片供應似乎出現了短期收縮，這限制了（聽不清）OEM 建立庫存和滿足需求。展望未來，利率上升對消費者融資的影響，以及可能造成的經濟不確定性——造成（聽不清）波動。儘管面臨這一持續挑戰，但我們仍實現了強勁的同比增長，並在未來幾個季度推出了一系列潛在的新設計。

Normally, given the strength of the QNX business, we will adjust our revenue outlook upwards. However, given the macro headwind, we've been prudent in holding our outlook as is. We expect the full year '23 revenue for the IoT business unit to still be in the range of the $200 million to $210 million as previously stated.

通常，鑑於 QNX 業務的實力，我們將向上調整我們的收入前景。然而，鑑於宏觀逆風，我們一直謹慎地保持我們的前景不變。如前所述，我們預計物聯網業務部門的 23 年全年收入仍將在 2 億美元至 2.1 億美元之間。

On the IP front, we made good progress. Our product development road maps remains firmly on track. We have had another new release in August that enabled support for a greater range of in-vehicle hardware and software. This new release incorporates (inaudible) but also value to real time feedback that we are getting from the ongoing group of (inaudible). You may recall that we are currently running a limited number of these trials, including the travel OEM and Tier 1s and these are progressing well. We continue to receive requests for additional trials and this ongoing demand remains a positive sign of the customer receptivity of IVY.

在知識產權方面，我們取得了不錯的進展。我們的產品開發路線圖仍然堅定不移地走上正軌。我們在 8 月發布了另一個新版本，支持更廣泛的車載硬件和軟件。這個新版本包含（聽不清）但也重視我們從正在進行的（聽不清）小組獲得的實時反饋。您可能還記得，我們目前正在進行數量有限的此類試驗，包括旅行 OEM 和 Tier 1，這些試驗進展順利。我們繼續收到要求進行額外試驗的請求，這種持續的需求仍然是 IVY 客戶接受度的積極信號。

On the ecosystem side, we were excited to close another investment by the IVY fund this quarter in the German start-up named COMPREDICT. COMPREDICT uses AI to enable automakers and fee providers to utilize predictive maintenance, i.e., using vehicle sensitive to get ahead of the maintenance issues. The predictive maintenance use case are added to many other (inaudible) enabling, including usage space insurance, intelligent EV Avery management, in-vehicle payments and the next-generation 911 emergency response, just to name a few.

在生態系統方面，我們很高興在本季度完成了 IVY 基金對德國初創公司 COMPREDICT 的另一項投資。 COMPREDICT 使用人工智能使汽車製造商和收費提供商能夠利用預測性維護，即使用車輛敏感來提前解決維護問題。預測性維護用例被添加到許多其他（聽不清）支持中，包括使用空間保險、智能 EV Avery 管理、車載支付和下一代 911 應急響應，僅舉幾例。

Looking ahead, we expect our product -- our next product release in December and remain focused on IVY design wins, which we currently expect to secure in calendar year 2023. We also plan to showcase more of IVY exciting capabilities and use cases at CES in January. So please stay tuned for more details on that in the coming months.

展望未來，我們期待我們的產品——我們的下一個產品將於 12 月發布，並繼續專注於 IVY 設計的勝利，我們目前預計將在 2023 日曆年獲得勝利。我們還計劃在 CES 上展示更多 IVY 令人興奮的功能和用例一月。因此，請繼續關注未來幾個月的更多細節。

Moving on to cybersecurity business unit. Revenue for the quarter was in line with expectation at $111 million. The business also delivered sequential billing growth of 15% to $102 million. Cyber billing for the first half of the fiscal year grew 6% year-over-year. Gross margin was 55%, ARR came in at $321 million, dollar-based net retention rate was 85%.

轉到網絡安全業務部門。本季度收入為 1.11 億美元，符合預期。該業務還實現了 15% 的連續計費增長，達到 1.02 億美元。本財年上半年的網絡賬單同比增長 6%。毛利率為 55%，ARR 為 3.21 億美元，基於美元的淨保留率為 85%。

In the quarter, we closed business with a wide range of customers but saw particular strength in our core verticals of government and financial services. In North America, we secured business with the Department of Treasury, the Federal Trade Commission, Department of Energy, AIRS, Union Stock Exchange and the U.S. Mint. We also won business with leading merger agency such as the U.S. Army Corps and Engineers, U.S. Central Command, U.S. Marine Corps and other branches of the Department of Defense. Internationally, we secured business with U.K. (inaudible) I guess, we change that now, the registry treasury, the UAE Ministry of Presidential Affairs, the New Zealand Parliamentary Services, the Australian Electoral Commission and the Polish Ministry of Foreign Affairs, just to name a few.

在本季度，我們結束了與廣泛客戶的業務，但我們在政府和金融服務的核心垂直領域看到了特別的優勢。在北美，我們與財政部、聯邦貿易委員會、能源部、AIRS、聯合證券交易所和美國造幣廠取得了業務往來。我們還贏得了與美國陸軍工程兵團、美國中央司令部、美國海軍陸戰隊和國防部其他分支機構等領先的合併機構的業務。在國際上，我們與英國取得了業務（聽不清）我想，我們現在改變了這一點，登記庫、阿聯酋總統事務部、新西蘭議會服務部、澳大利亞選舉委員會和波蘭外交部，僅舉幾例一些。

In financial services, we won new logos as well as renewal and upsells with leading banks in U.S., U.K., Switzerland, Japan, Israel, Italy and more. In addition to these core verticals, we recorded a strong quarter for new business in the middle market. This is a large segment of the market dominated by legacy players, altering legacy solutions and one where our finance product portfolio is resonating well. BlackBerry is very well placed to grow in this market for a number of reasons. The level of timing risk for mid-market customers is high. With our current research team identifying that SMBs, phases upwards of 11 cyber attacks per device per day. SMBs are also those with the lowest level of insurance against ransomware demand. As our study with the Corvus Insurance Show, meaning that they can (inaudible) breach. Customers in this segment, particularly like our lightweight agent and how effective our products are at detecting threats. Our AI engine, the most mature in the market has seen billions of data points, both malicious and non-malicious and use machine learning over several years to effectively distinguish between the 2.

在金融服務方面，我們贏得了美國、英國、瑞士、日本、以色列、意大利等地的領先銀行的新標識以及更新和追加銷售。除了這些核心垂直領域，我們在中間市場的新業務季度表現強勁。這是由傳統參與者主導的市場的很大一部分，改變了傳統解決方案，我們的金融產品組合在其中產生了很好的共鳴。出於多種原因，黑莓非常適合在這個市場上發展。中端市場客戶的時間風險水平很高。我們目前的研究團隊發現，SMB 每天每台設備會發生 11 次以上的網絡攻擊。中小型企業也是針對勒索軟件需求保險水平最低的企業。正如我們對 Corvus Insurance Show 的研究，這意味著他們可以（聽不清）違約。該細分市場的客戶，尤其喜歡我們的輕量級代理以及我們的產品在檢測威脅方面的有效性。我們的 AI 引擎是市場上最成熟的，已經查看了數十億個數據點，包括惡意和非惡意數據，並使用機器學習數年來有效區分兩者。

Further, mid-market customers among those with the fewest resources and expertise to staff a 24/7 security operating center. And customers like how our managed service offering CylanceGUARD have solved the issues for that. As we described in previous quarters, there have been some headwinds for Cyber ARR. However, we expect ARR to return to grow early next fiscal year. A lot of efficient and investment made in the past 2 quarters are starting to bear fruit, and we see some data points and feel confident in this outlook.

此外，中端市場客戶是那些擁有最少資源和專業知識來配備 24/7 安全運營中心的客戶。客戶喜歡我們提供的 CylanceGUARD 託管服務如何解決這些問題。正如我們在前幾個季度所述，Cyber ARR 存在一些不利因素。然而，我們預計 ARR 將在下個財年初恢復增長。過去兩個季度的大量高效投資開始見效，我們看到了一些數據點，對這一前景充滿信心。

First, we saw the total time line of potential opportunity for our Cylance product at the end of Q2 increased by 23% year-over-year. And for new logos specifically, the increase was 73%. Second, significant progress have been made with the product portfolio in recent quarters and is continuing. For example, I'll give you an example, recent enhancement to our PROTECT EPP product have positively impacted our positive rates as evidenced by trusted third-party VirusTotal. Third, on the Global Markets front, we're working to replicate the success we already had, particularly with the mid-market customer, we added a lot of cybersecurity industry experience this year, and we expect to see more traction at these new hires fully ramp up. Fourth, this coming quarter, we're commencing a program to build strong relationship with key channel partners and distributors that are well-established players in the cybersecurity market. We also received a lot of positive feedback following the Cylance product rebrand, including a significant increase in both website traffic and new leads.

首先，我們看到 Cylance 產品在第二季度末的潛在機會總時間線同比增長了 23%。特別是對於新徽標，增幅為 73%。其次，最近幾個季度產品組合取得了重大進展，並且還在繼續。例如，我舉個例子，最近對我們的 PROTECT EPP 產品的增強對我們的陽性率產生了積極的影響，值得信賴的第三方 VirusTotal 證明了這一點。第三，在全球市場方面，我們正在努力複製我們已經取得的成功，特別是在中端市場客戶方面，我們今年增加了很多網絡安全行業的經驗，我們希望看到這些新員工的吸引力更大全面提升。第四，在下個季度，我們將啟動一項計劃，與在網絡安全市場上享有盛譽的主要渠道合作夥伴和分銷商建立牢固的關係。在 Cylance 產品更名之後，我們還收到了很多積極的反饋，包括網站流量和新潛在客戶的顯著增加。

Turning to the overall demand environment for cybersecurity, the rest of the FY '23 looks fairly solid. As I mentioned earlier, BlackBerry has a strong government footprint and demand in vertical appears to still be robust. Overall, we're marketing customers coming back on the cybersecurity budget, even in the mid market, given (inaudible) the cyber defense. Therefore, there are no change to the outlook that we have provided previously. We continue to expect the cybersecurity business unit revenue to be broadly in line with fiscal year '22.

談到網絡安全的整體需求環境，23 財年的其餘時間看起來相當穩固。正如我之前提到的，黑莓擁有強大的政府影響力，垂直領域的需求似乎仍然強勁。總體而言，考慮到（聽不清）網絡防禦，我們正在營銷網絡安全預算的客戶，即使在中端市場也是如此。因此，我們之前提供的前景沒有變化。我們繼續預計網絡安全業務部門的收入將與 22 財年大致一致。

Let me now turn to licensing. Revenue in the quarter came in at $6 million. The sales process for the non-core patent portfolio continues. We understand that the length of time that this has taken is frustrating for shareholders, and we are equally as frustrated, if not more, as we work on it every day. However, we firmly believe that divesting the portfolio remains the best option for shareholder value. While the portfolio is still relatively fresh, the IP as part of the deal and the business of monetizing it, it's not related to our core business.

現在讓我談談許可。本季度收入為 600 萬美元。非核心專利組合的銷售過程仍在繼續。我們知道這花費的時間讓股東感到沮喪，而且我們每天都在努力，同樣感到沮喪，如果不是更多的話。然而，我們堅信剝離投資組合仍然是股東價值的最佳選擇。雖然投資組合仍然相對較新，但作為交易的一部分的 IP 和將其貨幣化的業務，它與我們的核心業務無關。

At the time, we were required to announce the deal, we understand that getting the government approval could take up to 210 days, if not longer, but we were pleased that the process were completed much sooner. (inaudible) we're working to conclude the financing in parallel to getting government approval. Unfortunately, we believe the turmoil in the financial markets created unexpected challenges for the original financing syndicate. However, there has been much interest from other parties wanting to (inaudible) currently working to lock down their final syndicate.

當時，我們被要求宣布這筆交易，我們知道獲得政府批准可能需要長達 210 天，如果不是更長的話，但我們很高興該過程更快完成。 （聽不清）我們正在努力在獲得政府批准的同時完成融資。不幸的是，我們認為金融市場的動盪給最初的融資集團帶來了意想不到的挑戰。但是，其他希望（聽不清）目前正在努力鎖定他們的最終辛迪加的各方非常感興趣。

In parallel to this, we're actively working (inaudible) where financing is not a contingency as well as finalizing our plan to restart the monetization engine ourselves should that be necessary. We will, of course, keep shareholders posted until (inaudible) achieved. Let me now hand over the call to Steve, who will provide additional color on our financial results for the quarter.

與此同時，我們正在積極開展工作（聽不清），在融資不是應急措施的情況下，並最終確定我們在必要時自行重啟貨幣化引擎的計劃。當然，我們會一直通知股東，直到（聽不清）實現。現在讓我把電話轉給史蒂夫，他將為我們本季度的財務業績提供額外的色彩。

Thank you, John. As usual, my comments on our financial performance for the second quarter will be in non-GAAP terms unless otherwise noted. Total company revenue for the quarter was $168 million. Total company gross margin was 64%. Our non-GAAP gross margin excludes stock compensation expense of $1 million. Operating expenses for the second quarter were $129 million, and these non-GAAP operating expenses exclude $22 million in amortization of acquired intangibles, a $10 million fair value gain on the convertible debentures, $5 million in stock compensation expense, $4 million from the impairment of long-term real estate lease assets and $3 million of restructuring expenses.

謝謝你，約翰。像往常一樣，除非另有說明，否則我對第二季度財務業績的評論將採用非公認會計原則。本季度公司總收入為 1.68 億美元。公司總毛利率為64%。我們的非公認會計原則毛利率不包括 100 萬美元的股票補償費用。第二季度的運營費用為 1.29 億美元，這些非公認會計原則的運營費用不包括 2200 萬美元的收購無形資產攤銷、1000 萬美元可轉換債券的公允價值收益、500 萬美元的股票補償費用、400 萬美元的減值長期房地產租賃資產和 300 萬美元的重組費用。

BlackBerry continues to make carefully considered investments for top line growth, such as adding additional headcount to the IoT team in response to a strong schedule of professional services from design wins as well as expanding our reach in the cyber market, as John outlined earlier. The non-GAAP operating loss for the second quarter was $22 million, and non-GAAP net loss was $29 million. The GAAP basic loss per share was $0.09, and the non-GAAP loss per share was $0.05. Adjusted EBITDA, excluding the non-GAAP adjustments previously mentioned, was negative $16 million.

正如約翰之前所述，黑莓繼續為收入增長進行仔細考慮的投資，例如為物聯網團隊增加額外的員工人數，以應對來自設計勝利的強大專業服務計劃，以及擴大我們在網絡市場的影響力。第二季度非美國通用會計準則營業虧損為 2200 萬美元，非美國通用會計準則淨虧損為 2900 萬美元。 GAAP 每股基本虧損為 0.09 美元，非 GAAP 每股虧損為 0.05 美元。不包括前面提到的非公認會計原則調整的調整後 EBITDA 為負 1600 萬美元。

Now breaking down revenue in the quarter. IoT revenue was $51 million and cybersecurity revenue was $111 million. Software product revenue remains in the range of 80% to 85% of total revenue, and professional services formed a balance. As before, approximately 80% of software product revenue was recurring. Licensing and other revenue was $6 million.

現在分解本季度的收入。物聯網收入為 5100 萬美元，網絡安全收入為 1.11 億美元。軟件產品收入佔總收入的比重保持在80%~85%之間，專業服務形成平衡。和以前一樣，大約 80% 的軟件產品收入是經常性的。許可和其他收入為 600 萬美元。

Now turning to the balance sheet and cash flow. Total cash, cash equivalents and investments were $699 million at August 31, 2022. Free cash flow was negative $26 million with cash used by operations of $23 million and capital expenditures of $3 million. That concludes my comments. I'll now turn the call back to John.

現在轉向資產負債表和現金流。截至 2022 年 8 月 31 日，現金、現金等價物和投資總額為 6.99 億美元。自由現金流為負 2600 萬美元，運營使用的現金為 2300 萬美元，資本支出為 300 萬美元。我的評論到此結束。我現在將電話轉回給約翰。

Thank you, Steve. Before we open the line up for Q&A, let me summarize the key points for the quarter. Number one, our IoT business unit delivered strong year-over-year revenue growth, in large part driven by ongoing strength from design phase revenue. IoT remains firmly on track with proof-of-concept trials progressing well, and the team is executing on the product development road map as planned.

謝謝你，史蒂夫。在我們開啟問答環節之前，讓我總結一下本季度的重點。第一，我們的物聯網業務部門實現了強勁的同比收入增長，這在很大程度上得益於設計階段收入的持續增長。隨著概念驗證試驗進展順利，物聯網仍堅定不移地步入正軌，團隊正在按計劃執行產品開發路線圖。

Our cybersecurity business unit, net revenue expectations, delivering strong sequential business growth and continue to implement a strategy to build the business with ARR expected to return to growth early next fiscal year. Despite the volatility in the macro market, we are maintaining our revenue outlook for both business units and continue to execute against our plan. That concludes my remarks. And operator, could you please open the line for Q&A.

我們的網絡安全業務部門，淨收入預期，實現強勁的連續業務增長，並繼續實施建立業務的戰略，預計 ARR 將在下個財年初恢復增長。儘管宏觀市場出現波動，我們仍維持兩個業務部門的收入前景，並繼續執行我們的計劃。我的發言到此結束。接線員，請您打開問答線。

(Operator Instructions)

（操作員說明）

Your first question comes from the line of Mike Walkley with Canaccord Genuity.

您的第一個問題來自 Canaccord Genuity 的 Mike Walkley。

If you delve in a little bit more to the cybersecurity business. The billings commentary sounds promising. Can you just update us maybe on the UEM side, kind of where we are and that's falling off and the confidence that gives you that ARR will start to grow next year?

如果您更深入地研究網絡安全業務。比林斯的評論聽起來很有希望。您能否在 UEM 方面向我們介紹最新情況，我們所處的位置以及正在下降的情況以及讓您相信 ARR 將在明年開始增長的信心？

Yes. So the UEM, as you know, it's a very price-sensitive market on the mid and low end. And particularly dominated by one major player in the market, including (inaudible) and so forth. For the higher-end markets, where they absolutely needed better security, we tend to hold on to those businesses as well, and in some cases, expand on it. We also have -- in addition to just the UEM, secure communication and also an opportunity to upsell our UES product too, the finance product.

是的。如您所知，UEM 是一個對中低端價格非常敏感的市場。尤其是由市場上的一個主要參與者主導，包括（聽不清）等等。對於他們絕對需要更好的安全性的高端市場，我們也傾向於保留這些業務，並且在某些情況下，會對其進行擴展。除了 UEM，我們還有安全通信以及追加銷售我們的 UES 產品（金融產品）的機會。

So on a whole for the UEM, we kind of expected our sales to holding is pretty flat. And then we'll have a way to grow the business next year by bundling some more other stuff and new products that come out and features. The final point I'd like to make is you -- Microsoft, for example, their Intune is really a mobile application manager. This is really not a UEM. So the customers are beginning to recognize that the security side of the equation, they're not fulfilling their requirements. So I think there might be a good strong argument for us to either overcome their tack from Microsoft Intune or actually coexist with them in account that absolutely needed mission-critical security.

因此，總體而言，對於 UEM，我們預計我們的持股銷售額相當持平。然後我們將有辦法通過捆綁更多其他東西和新產品的推出和功能來發展明年的業務。我想說的最後一點是你——例如微軟，他們的 Intune 確實是一個移動應用程序管理器。這真的不是 UEM。因此，客戶開始認識到等式的安全方面，他們沒有滿足他們的要求。因此，我認為我們可能有一個很好的強有力的論據來克服微軟 Intune 的策略，或者實際上與他們共存，因為這絕對需要關鍵任務安全性。

So that's kind of our current thinking. And we feel reasonably good about what I said in terms of where the market validation has been, especially with big customer.

這就是我們目前的想法。我們對我所說的市場驗證情況感到相當滿意，尤其是對大客戶而言。

And as a follow-up question, how has pricing in the endpoints security market as you go head-to-head with both legacy and some of the other next-generation vendors? And then also with the progress on your platform, are you sharing any metrics or give any rough color on how upsells going and how maybe some of your new customers are landing with more than just one product from Cylance?

作為一個後續問題，當您與傳統供應商和其他一些下一代供應商正面交鋒時，端點安全市場的定價如何？然後，隨著您平台上的進展，您是否分享了任何指標或粗略地說明了追加銷售的情況，以及您的一些新客戶如何登陸 Cylance 的不止一種產品？

I get the first part about the legacy. What's the second part? Was it about platform (inaudible)?

我得到了關於遺產的第一部分。第二部分是什麼？是關於平台（聽不清）嗎？

Just how you're going? Any metrics on customers taking more than one Cylance module?

你怎麼走？關於使用多個 Cylance 模塊的客戶的任何指標？

I see. I don't have that information handy with me. So either we're going to have to follow up with you (inaudible) John chew on that information. And the legacy product line, it's interesting, we see actually the most progress we made against the legacy player, particularly in the mid-market where the mid-market doesn't really have a CECL (inaudible) what we offer, and particularly on GUARD which is the managed service, that's very well, resonates really well. We see a pretty big strong growth. The numbers are not huge in terms of the actual amount of dollars, but the number of accounts that we're winning are reasonably sizable.

我懂了。我手邊沒有這些信息。所以要么我們將不得不跟進你（聽不清）約翰咀嚼這些信息。和傳統產品線，有趣的是，我們實際上看到了我們與傳統玩家相比取得的最大進步，特別是在中端市場中，中端市場並沒有我們提供的 CECL（聽不清），特別是在GUARD 是託管服務，非常好，引起了很好的共鳴。我們看到了相當大的強勁增長。就實際金額而言，這些數字並不大，但我們贏得的賬戶數量相當可觀。

Your next question is from the line of (inaudible) with Baird.

您的下一個問題來自 Baird（聽不清）。

My first question, maybe a little bit of a bigger-picture question, John. I'd be curious to get your updated perspective on the auto software competitive landscape in regards to the IoT business. In the last few months here, we've seen both companies that haven't traditionally played in auto looking to make inroads here and in some cases, announcements with customers and some of the chip companies as well talking a bigger game of auto software, your thoughts on both, especially any comments that you build offer on your direct engagement with the chip companies and how that's evolved or incrementally grown recently?

我的第一個問題，也許是一個更大的問題，約翰。我很想知道您對物聯網業務的汽車軟件競爭格局的最新看法。在過去的幾個月裡，我們看到兩家傳統上沒有涉足汽車領域的公司都希望在這裡取得進展，在某些情況下，與客戶和一些芯片公司的公告以及更大的汽車軟件遊戲，您對兩者的看法，尤其是您對與芯片公司的直接合作以及最近如何發展或逐漸增長的任何評論？

Okay. That's a good question. So QNX is probably the biggest player in the auto embedded software space, particularly in the area of operating system and so we, by far, touch wood, with most of a big deal. I will refer you to the last 2, 3 quarters of big win in BMW, in Volvo, in Volkswagen and a lot of the electric vehicle player. Because we occupy a pretty unique position on the stack. Most people, when you talk about a big company, once again, in auto software, they tend to be more on the UI side, user interfaces, more on the infotainment side, but sell them on their core side of the deck, a case point is the announcement of that we won VW.OS, Volkswagen intend to build their own software stack. They do work with just a few players and the chip level up.

好的。這是個好問題。因此，QNX 可能是汽車嵌入式軟件領域的最大參與者，尤其是在操作系統領域，因此到目前為止，我們最重要的是觸手可及。我將向您介紹過去 2、3 個季度在寶馬、沃爾沃、大眾和許多電動汽車廠商中取得的巨大勝利。因為我們在堆棧上佔據了一個非常獨特的位置。大多數人，當你再次談論一家大公司時，在汽車軟件方面，他們往往更多地在 UI 方面、用戶界面，更多地在信息娛樂方面，但在他們的核心方面出售它們，一個案例關鍵是宣布我們贏得了VW.OS，大眾打算建立自己的軟件堆棧。他們確實只與少數玩家合作，並且籌碼水平更高。

And so we are one of the players because of operating system. So as for your question -- so we feel pretty good about where we focus and the more mission-critical and safety certified components of our products, and there will be more that will come out. And we have -- just in case you don't remember this, but we have the highest level of ISO Certification in safety. So we feel pretty good about our position. And so as the question on chipset, probably the 2 or 3 biggest chip vendors that we work with are very committed to each other for a very long time account in particularly 2 of them are Qualcomm and NVIDIA. And Qualcomm and NVIDIA are quite dominant in the auto space.

因此，由於操作系統，我們是參與者之一。至於你的問題——所以我們對我們關注的重點以及我們產品中更多關鍵任務和安全認證的組件感覺很好，而且還會有更多的東西出來。我們有 - 以防您不記得這一點，但我們擁有最高級別的 ISO 安全認證。所以我們對自己的位置感覺很好。因此，關於芯片組的問題，可能與我們合作的 2 或 3 家最大的芯片供應商在很長一段時間內都非常致力於彼此，特別是其中 2 家是高通和英偉達。高通和英偉達在汽車領域佔據主導地位。

So we feel very comfortable in both our partnerships and their position in the market and our position in the market that doesn't overlap. So I think just being overly -- I don't want to change it obviously, but we feel pretty good. And in addition to that, even sales by Google, at a quarter ago or 2 quarters ago (inaudible) auto play. So that will tell you something about the unique position we are in, but we are not really in contradiction to what they offer.

因此，我們對我們的合作夥伴關係及其在市場中的地位以及我們在不重疊的市場中的地位感到非常滿意。所以我認為只是過度 - 我不想明顯改變它，但我們感覺很好。除此之外，即使是谷歌在一個季度前或兩個季度前（聽不清）自動播放的銷售額。因此，這將告訴您有關我們所處的獨特位置的一些信息，但我們並不真正與他們提供的內容相矛盾。

And then staying within IoT for my follow-up, you recently announced that you've gained certification in the aerospace market. And I was just hoping you can expand on the strategic approach to that market. Are there any parts of the market that you're focusing on initially? How are you investing and resourcing that initiative and anything similar that would be worth adding?

然後留在物聯網中進行我的後續工作，您最近宣布您已獲得航空航天市場的認證。我只是希望您可以擴展該市場的戰略方法。您最初關注的市場有哪些部分？您如何投資和資源化該計劃以及任何值得添加的類似內容？

Yes. This is a little early for us, but we do have the intent. And so when we look at the success in our auto market, it's really all rely on the highest level of safety certification. So we then -- and we have a new product that comes out that focus on high level of scalability. And so if you think about this, and we think about, okay, who else, which vertical exhibit the same requirements, so needed the same requirement. So medical is one, industrial is one. And we've been doing reasonably well on what we call the (inaudible) general embedded market, which medical and industrial is in there. But we are very interested in the cycle of replacing some of the legacy software and the aerospace, particularly aircraft area. And so this is why we want to make sure that we're certified so that a developer can reuse the code. And we likely will work through large system integrators like Raytheon (inaudible), but that's to the extent that I can share at this point.

是的。這對我們來說有點早，但我們確實有這個意圖。因此，當我們看到我們汽車市場的成功時，它實際上都依賴於最高級別的安全認證。所以我們然後 - 我們推出了一款專注於高水平可擴展性的新產品。因此，如果您考慮這一點，我們會考慮，好吧，還有誰，哪個垂直領域表現出相同的要求，因此需要相同的要求。所以醫療是一，工業是一。我們在我們所謂的（聽不清的）通用嵌入式市場上做得相當好，醫療和工業都在那裡。但我們對更換一些遺留軟件和航空航天，特別是飛機領域的周期非常感興趣。這就是為什麼我們要確保我們已經過認證，以便開發人員可以重用代碼。我們可能會通過像雷神這樣的大型系統集成商（聽不清），但這就是我現在可以分享的程度。

Your next question comes from the line of Paul Treiber with RBC Capital Markets.

您的下一個問題來自 RBC Capital Markets 的 Paul Treiber。

Just I just wanted to follow up on your previous comments about Auto Software. What's changed in your mind in terms of the mentality of these auto OEMs and even Google to adopt QNX as a foundational layer?

我只是想跟進您之前對 Auto Software 的評論。對於這些汽車 OEM 甚至 Google 採用 QNX 作為基礎層的心態，您的想法發生了哪些變化？

Well, it's a -- so first of all, QNX, the operating system has been in the business for over 30 years. And you all remember that on the extent some of it but it was way back when it was the infotainment company, it's actually long to Harman. And BlackBerry bought it before my time, they bought it and was kind of creating an operating system with it. So the safety certification has always been the claim the same. And they want a lot of infotainment. So what we have done since the time I arrived, what we have done is to expand from infotainment into areas of more safety-oriented and superior oriented on oriented applications actually related to a car. And of course, then in parallel, the world started to move towards the software-defined vehicle. So therefore, the OEMs are taking more control of the design, the stack, the software stack, okay? And -- but they also know that they can't just sit there and replicate their operating system and get it certified.

嗯，它是一個——首先，QNX，這個操作系統已經在市場上運行了 30 多年。你們都記得，在某種程度上，但它是信息娛樂公司的時候，它實際上對哈曼來說很長。黑莓在我之前買了它，他們買了它，並用它來創建一個操作系統。所以安全認證的說法一直都是一樣的。他們想要很多信息娛樂。因此，自從我到達以來，我們所做的就是從信息娛樂擴展到更安全、更優越的領域，這些領域實際上與汽車相關的面向應用程序。當然，與此同時，世界開始轉向軟件定義的車輛。因此，OEM 正在對設計、堆棧、軟件堆棧進行更多控制，好嗎？而且——但他們也知道，他們不能只是坐在那裡複製他們的操作系統並獲得認證。

Now some people try to use say Automotive Grade Linux, AGL, but AGL couldn't get it certified, and it's an open source also with a -- has its own business challenges to it. So they gradually all came back to QNX. And that's the reason why. And then being having over 200 million cars that use our software today effectively, you will send a pretty sizable market for a lot of other players to ignore. So on player to be ignored. So this is why Google works with us and Qualcomm works with us and NVIDIA work with us, and GI works with us (inaudible) works with us, and it's a long list of players that all uses us as a foundational piece, and then we'll continue to expand application or different types of features in that foundation base.

現在有些人嘗試使用汽車級 Linux，AGL，但 AGL 無法獲得認證，而且它是一個開放源代碼，也有其自身的業務挑戰。所以他們逐漸都回到了QNX。這就是原因。現在有超過 2 億輛汽車有效地使用我們的軟件，你將帶來一個相當大的市場，讓許多其他玩家忽略。所以對玩家來說是被忽略的。所以這就是為什麼 Google 與我們合作，Qualcomm 與我們合作，NVIDIA 與我們合作，GI 與我們合作（聽不清）與我們合作，這是一長串玩家都將我們作為基礎，然後我們'將繼續在該基礎基礎上擴展應用程序或不同類型的功能。

That's helpful. The -- and it's in my next question. Like how do you think about the economics within the foundational layer? And what's the strategy to try to maximize economics over the long term?

這很有幫助。 - 這是我的下一個問題。比如你如何看待基礎層的經濟學？從長遠來看，嘗試最大化經濟效益的策略是什麼？

It's -- well, our strategy is obviously use more of more of our foundational modules in the stack. And so -- that's the basic strategy. And then if you have multiple copies and then as we get deeper into the engine and deeper into the safety side of the equation of a car operation, it will -- the QNX will be able to demand or command a little bit more ARPU. So we have more copies and higher-value copies like hypervisor is to have a higher value than infotainment. For example, that's kind of move up the stack in ARPU and broaden it to be multiple copies in the cart. This is our strategy in general for the business strategy side. And then don't forget IVY, because IVY is our next-generation push into EHS to cloud. And it not only provides security and privacy, it also provides economics because cloud-only solution is too expensive, and it's too much data being generated along the operation of a car. So don't forget about that. So we feel that we have a pretty good 1, 2, 3 functions on the auto space or at least on the IoT side, and we're going to expand it beyond auto, as I said. But today, we're very focused on auto.

這是——好吧，我們的策略顯然是在堆棧中使用更多的基礎模塊。所以——這就是基本策略。然後，如果你有多個副本，然後隨著我們對引擎的深入研究，以及對汽車操作等式的安全方面的深入研究，QNX 將能夠要求或控制更多的 ARPU。所以我們有更多的副本和更高價值的副本，比如虛擬機管理程序，它比信息娛樂具有更高的價值。例如，這是在 ARPU 中向上移動堆棧並將其擴展為購物車中的多個副本。這是我們在業務戰略方面的總體戰略。然後不要忘記 IVY，因為 IVY 是我們將 EHS 推進到雲的下一代。它不僅提供了安全性和隱私性，還提供了經濟性，因為純雲解決方案過於昂貴，而且在汽車運行過程中產生的數據過多。所以不要忘記這一點。所以我們覺得我們在汽車領域或至少在物聯網方面擁有相當不錯的 1、2、3 功能，正如我所說，我們將把它擴展到汽車之外。但是今天，我們非常關注汽車。

And just if I can just squeeze in one more. Just in regard to the patent portfolio, I mean I know it's -- you're limited in terms of what you can say. But how should we think about the time frame that the clock is ticking in terms of the ability to monetize the patents. As the time goes on, does it -- buying the patents decrease to you or to a potential buyer? Or is there a way to get back damages, per se or back royalties and so the time is less critical?

如果我能再擠一個就好了。就專利組合而言，我的意思是我知道它是——你能說什麼是有限的。但是，從專利貨幣化的能力來看，我們應該如何考慮時鍾正在滴答作響的時間框架。隨著時間的推移，您或潛在買家購買專利是否會減少？或者有沒有辦法收回損害賠償，本身或收回特許權使用費，所以時間不那麼關鍵？

Yes. Assume there are 2 data points, you already answered one, which is those that needed our license will have to address the path deployment. So it's not just time ticking away and therefore. So that's one of the answer to your question. The other one is there is a miss out there about the time. There was an article published that's actually incorrect, and it's actually incorrectly almost throughout the entire article about the number of years for our portfolio and the value of that, that is absolutely not true. Because if it had been true, then you would have -- you wouldn't have to be syndicate to wanted to make this thing happen. So I will just leave it at that. I don't want to do a public debate with the writer, but I'm sorry, the writer is absolutely wrong. Even though this article has been around for a little while, this was reprint by a newspaper that would like to, I guess, contextualize something that is not true. And anyway, I'll leave it at that. So yes, we could capture the path deployment and no, it's not that (inaudible).

是的。假設有 2 個數據點，您已經回答了一個，即需要我們的許可證的那些必須解決路徑部署問題。所以這不僅僅是時間的流逝，因此。所以這是你的問題的答案之一。另一個是關於時間的錯過。有一篇發表的文章實際上是不正確的，而且幾乎在整篇文章中關於我們投資組合的年數及其價值實際上都是錯誤的，這絕對不是真的。因為如果它是真的，那麼你就會 - 你不必成為辛迪加想要讓這件事發生。所以我就這樣吧。我不想和作者進行公開辯論，但很抱歉，作者絕對錯了。儘管這篇文章已經存在了一段時間，但它是由一家報紙轉載的，我猜它想將一些不真實的東西置於上下文中。無論如何，我會把它留在那裡。所以是的，我們可以捕獲路徑部署，不，不是這樣（聽不清）。

Your next question is from the line of Todd Coupland with CIBC.

您的下一個問題來自於 CIBC 的 Todd Coupland。

I wanted to ask you about the cyber unit. You indicated you still expect revenue to be roughly flat year-on-year. But implied in that comment is a seasonal uptick in the fourth quarter. And I'm just wondering, is that also still expected in line with prior expectations. And I just wanted you to close the logic on that point with growth expected early in fiscal 2024?

我想問你關於網絡部隊的事。您表示您仍預計收入將與去年同期大致持平。但該評論中暗示的是第四季度的季節性上升。我只是想知道，這是否仍然符合先前的預期。我只是想讓你結束這一點的邏輯，預計在 2024 財年初實現增長？

Earlier in fiscal 2024?

2024財年早些時候？

Well, you commented on ARR growth expected early next year.

好吧，您評論了明年初預期的 ARR 增長。

Of course, yes, yes, yes. It's a little bit of a complicated set of math, but I'll focus on the kind of the high level. So yes, our Q4 pipeline is a lot more bigger than Q3. And so we believe that, therefore, my statement about the revenue relatively flat in line with the last fiscal year, it's a proper statement. And then there will be some billings growth because of that. And then we also take a look at what the -- where the headwinds are. And if you look at all the headwinds from all the deals that we expected to either get or renewed and ones that are being attacked, especially the mid-market state, we believe that the major part of our headwind is behind us. We'll be behind us after Q4, sorry, I should say that because we kind of look through it on a quarterly basis. So therefore, next fiscal year, I don't know whether it's Q1 or definitely Q2, that we expect ARR to have a year-over-year increase, and we should continue that trend going forward.

當然，是的，是的，是的。這是一組複雜的數學，但我將專注於高水平的那種。所以是的，我們的第四季度管道比第三季度大得多。因此，我們認為，因此，我關於收入與上一財年相對持平的陳述是一個正確的陳述。然後會因此而出現一些賬單增長。然後我們還看看逆風在哪裡。而且，如果您查看我們預計會獲得或續籤的所有交易以及受到攻擊的所有交易的所有不利因素，尤其是中端市場狀態，我們認為我們的不利因素的主要部分已經過去。我們將在第四季度之後支持我們，抱歉，我應該這麼說，因為我們每季度都會查看它。因此，因此，下一個財政年度，我不知道是第一季度還是第二季度，我們預計 ARR 將同比增長，我們應該繼續這一趨勢。

And on that point for you guidance...

在這一點上為您提供指導...

Does that answer your question?

這是否回答你的問題？

Yes, that's clear. And on that point, just remind us what you think the potential growth in cyber is once you start to benefit from improved product bundling and go-to-market?

是的，這很清楚。在這一點上，請提醒我們，一旦您開始從改進的產品捆綁和進入市場中受益，您認為網絡的潛在增長是什麼？

You saw the 3-year plan that we put out -- a 3- and 5-year plan further release. In fact, I had recently presented to the Board, we have not deviated from that, we're not deviating from that at all. So you can see that from a (inaudible) the cybersecurity group, the compounded annual growth should be roughly about 10%. So that will be what we will focus on getting.

您看到了我們推出的 3 年計劃——進一步發布的 3 年和 5 年計劃。事實上，我最近向董事會提出過，我們沒有偏離這一點，我們根本沒有偏離這一點。因此，您可以從（聽不清）網絡安全小組看到，複合年增長率應該約為 10%。因此，這將是我們將重點關注的內容。

Your final question comes from the line of Tripatinder Chowdhry with Global Equities Research.

您的最後一個問題來自全球股票研究公司的 Tripatinder Chowdhry。

Very solid execution in a brutal environment. Two questions. First, I had this regarding your Volkswagen deal, which is very significant. Can you give me some directional guidance in a sense that some metrics like you won the design, it's a design win, what should we be thinking in terms of production revenues once these vehicles go into production, how should we think, is it 1x, 2x, 3x the design win revenues? Is production usually more than design wins? Any color on that will be helpful. And then I have a follow-up question.

在殘酷的環境中非常紮實的執行。兩個問題。首先，我對你們的大眾汽車交易有過這樣的看法，這非常重要。你能給我一些方向性的指導嗎，像你這樣的指標贏得了設計，這是設計的勝利，一旦這些車輛投入生產，我們應該如何考慮生產收入，我們應該如何考慮，是 1x， 2 倍、3 倍的設計贏得收入？生產通常比設計更勝一籌嗎？上面的任何顏色都會有幫助。然後我有一個後續問題。

Okay. Okay. So in general, I do auto because our backlog numbers are based on the auto. So in general, if you look at a cycle of an auto win somewhere between 7 to 10 years. So what we will see upfront is that probably on an overall -- let's say, a deal bring us $1 million. I'm making this up, okay? (inaudible) obviously, it's a lot bigger than that. But let's just start with $1 million. So I would say the 10% upfront probably is something that we should expect and could expect on development fees. And then probably there are some professional services revenue. So I will put it again in the range of 5% to 10%. Now the bulk of the production will come a year normally 4, 5, 6, 7, 8. However, we see that compressing because of all the -- because we're going electrified, right, the electrification, the electric vehicle market turns the product cycle a lot faster and particularly with the Chinese.

好的。好的。所以總的來說，我做自動，因為我們的積壓數量是基於自動的。所以總的來說，如果你看一下自動獲勝的周期在 7 到 10 年之間。所以我們首先會看到可能是總體上 - 比如說，一筆交易給我們帶來了 100 萬美元。我正在編造這個，好嗎？ （聽不清）顯然，它比這大得多。但是，讓我們從 100 萬美元開始。所以我會說 10% 的預付款可能是我們應該期待並且可以期待的開發費用。然後可能會有一些專業服務收入。所以我再把它放在5%到10%的範圍內。現在大部分生產通常會在 4、5、6、7、8 年到來。然而，我們看到壓縮是因為所有的——因為我們要電氣化，對，電氣化，電動汽車市場轉向產品週期快了很多，尤其是中國人。

The Chinese is telling it around a cycle of 3 to 5 years instead of 7 to 10. So -- and everybody else will probably have to keep up and whether they will get to 3 or 5 years, who knows. But it will shorten the 7 to 10 years. So we get a little bit of upfront, which is always nice. And then we get some professional services, and then we will get the production royalty.

中國人告訴它的周期是 3 到 5 年，而不是 7 到 10 年。所以——其他所有人可能都必須跟上，他們是否會達到 3 年或 5 年，誰知道呢。但它會縮短7到10年。所以我們得到了一點預付款，這總是很好的。然後我們得到一些專業的服務，然後我們將獲得製作版稅。

Excellent. Now I was also wondering, you have a very solid offering in terms of IVY. And today, you mentioned the hybrid approach that is in cloud and on device, which is a vehicle which is, I think, very novelty, very novel, because you don't want the OEM to be finalized for success where the success means more data. And if the whole objective is to put the data into the cloud, you, that is, BlackBerry or the OEM purely like a resell around AWS. So I like that strategy big time. But I was wondering if you, that is, if there's a customer who is like Volkswagen, which is already standardized on OEM. Are there any plans you may have to make migration or at least experimentation with IVY, like just a mouse-click away, do we have anything like that in plans? And that's all for me.

出色的。現在我還想知道，就 IVY 而言，你們提供了非常可靠的產品。今天，您提到了雲端和設備上的混合方法，我認為這是一種非常新穎、非常新穎的工具，因為您不希望 OEM 最終確定成功，而成功意味著更多數據。如果整個目標是將數據放入雲中，那麼您，即黑莓或 OEM 純粹就像 AWS 周圍的轉售商一樣。所以我很喜歡這個策略。但是我想知道您是否，即是否有像大眾汽車這樣的客戶，它已經在OEM上標準化。您是否有任何計劃進行遷移或至少對 IVY 進行試驗，例如只需單擊鼠標，我們是否有類似的計劃？這就是我的全部。

Yes. That's a good question. I don't want to turn this into an announcement, but let me just say that it is logical. It will be -- maybe put it differently. It will be illogical for BlackBerry not to take advantage of all the assets. And there is a good reason why both IVY and QNX is in the same IoT group.

是的。這是個好問題。我不想把它變成一個公告，但我只想說這是合乎邏輯的。它將是——也許換一種說法。黑莓不利用所有資產是不合邏輯的。 IVY 和 QNX 屬於同一個物聯網組是有充分理由的。

I would now like to turn the call back over to John Chen, Executive Chair and CEO of BlackBerry for closing remarks.

我現在想將電話轉回給黑莓執行主席兼首席執行官 John Chen 做閉幕詞。

Thank you. Thank you, operator. Before we conclude today's call, I'd like to remind everyone about our upcoming BlackBerry Security Summit on October 27, in that particular assess the FSC keynote addresses with BlackBerry executives, customer-led case studies, interactive talk on cybersecurity innovation and a practice from BlackBerry Research and Intelligence team and more, all virtual and all on demand. Investors could register for the event on the Investor page of our blackberry.com website. And I want to thank you all for joining our call. I'm sorry there's always late in the East Coast. And I truly appreciate it. Thank you, and see you all next time.

謝謝你。謝謝你，接線員。在結束今天的電話會議之前，我想提醒大家我們即將於 10 月 27 日舉行的 BlackBerry 安全峰會，特別是評估與 BlackBerry 高管的 FSC 主題演講、客戶主導的案例研究、網絡安全創新的互動談話以及來自黑莓研究和情報團隊等，所有虛擬和按需。投資者可以在我們 blackberry.com 網站的投資者頁面上註冊該活動。我要感謝大家加入我們的電話會議。對不起，東海岸總是遲到。我真的很感激。謝謝大家，下次見。

This concludes today's call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。