CAMP4 Therapeutics Corp (CAMP) 2024 Q3 法說會逐字稿

Good day and thank you for standing by, and welcome to the CalAmp Corp. FY. 24 Q. three earnings call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question and answer session to ask a question during the session, please press star one one on your telephone and wait for your name.

您好，感謝您的耐心等待，歡迎來到 CalAmp 公司 2020 財年。24. 第三季財報電話會議。目前，所有參與者均處於唯讀模式。演講結束後將進行問答環節，如需提問，請按手機上的星號鍵11，然後等待叫到您的名字。

To be announced. To withdraw your question, please press star one. Again, please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jikun Kim, Chief Financial Officer.

待公佈。如需撤回您的問題，請按星號 1。再次提醒，今天的會議正在錄影。現在我謹將會議交給今天的主講人，財務長金智坤先生。

Good afternoon, and welcome to CalAmp's Q3 FY. 24 Financial Results Earnings Call. My name is Jikun Kim. I am the Chief Financial Officer at Cowal. And also with us today is Calence Interim President and Chief Executive Officer and Jason Cohenour.

下午好，歡迎來到 CalAmp 第三財年季度報告。24日財務業績電話會議。我的名字是金智坤。我是 Cowal 公司的財務長。今天和我們在一起的還有 Calence 的臨時總裁兼執行長 Jason Cohenour。

During today's call, we will make certain forward-looking statements within the meaning of Section 27 A. of the Securities Act of 1933 and Section 21E. of the Exchange Act of 1934. Forward looking statements are predictions projections and other statements about future events that are based on current expectations and assumptions and as such, are subject to risks and uncertainties, many factors could cause actual future events to differ materially from forward-looking statements in this communication. Investors should listen to today's call with the understanding that our actual results may be materially different from the plans, intentions and expectations disclosed in the forward-looking statements that we are about to make. For more information about these risk factors that may cause actual results to differ materially from forward-looking statements, please refer to the earnings press release that we issued today as well as the Company's filings within the Securities and Exchange Commission. Investors are cautioned not to put undue reliance on these forward-looking statements. The Company specifically disclaims any obligations to update the forward-looking statements that may be discussed during this call. Jason will begin today's call with a review of company's recent operational highlights and then I will provide a more detailed review of the financial results followed by a question and answer session. With that, it is my great pleasure to turn the call over to CalAmp's Interim President and Chief Executive Officer, Jason Cohenour. Jason, go ahead, please.

在今天的電話會議中，我們將根據 1933 年證券法第 27A 條和 1934 年證券交易法第 21E 條的規定，做出一些前瞻性陳述。前瞻性陳述是指基於當前預期和假設對未來事件的預測、展望和其他陳述，因此存在風險和不確定性，許多因素可能導致實際未來事件與本通訊中的前瞻性陳述有重大差異。投資者應在聽取今天電話會議的同時理解，我們的實際業績可能與我們即將發布的前瞻性聲明中披露的計劃、意圖和預期存在重大差異。有關可能導致實際結果與前瞻性聲明存在重大差異的這些風險因素的更多信息，請參閱我們今天發布的盈利新聞稿以及公司向美國證券交易委員會提交的文件。投資人應注意，不要過度依賴這些前瞻性陳述。本公司特此聲明，不承擔更新本次電話會議中可能討論的前瞻性陳述的任何義務。Jason 將在今天的電話會議上首先回顧公司近期的營運亮點，然後我將對財務表現進行更詳細的回顧，最後進行問答環節。接下來，我非常榮幸地將電話交給 CalAmp 的臨時總裁兼執行長 Jason Cohenour。傑森，請繼續。

Thank you, Jikun, and thanks to all of you for joining us on the call today. In the third quarter Callon continued to see strength in certain areas of the business while also experiencing demand softness in others. Specifically, our industrial and international connected car segments continued to perform well, whereas soft demand from TSP. customers led to lower than expected consolidated revenue. Our view is that continued softness with TSP.s is mainly related to the post COVID supply chain correction and subsequent inventory rebalancing as well as an intensified competitive environment in the overall telematics solution ecosystem. In response, we have reallocated strategic focus and resources to this segment and believe we are seeing early signs of recovery, and we are optimistic that TSP. revenue will stabilize and return to growth from current levels.

謝謝Jikun，也謝謝今天所有參加我們電話會議的各位。第三季度，Callon 在某些業務領域繼續保持強勁勢頭，但在其他領域則經歷了需求疲軟。具體而言，我們的工業和國際互聯汽車業務板塊繼續表現良好，而來自TSP客戶的需求疲軟導致合併​​收入低於預期。我們認為，TSP.s 持續疲軟主要與 COVID 疫情後的供應鏈調整和隨後的庫存再平衡，以及整個遠端資訊處理解決方案生態系統中日益激烈的競爭環境有關。為此，我們已將戰略重點和資源重新分配給該業務板塊，並相信我們已經看到了復甦的早期跡象，我們樂觀地認為TSP的收入將趨於穩定，並從目前的水平恢復增長。

Another complicating factor with our TSP. customers has been a difficult but necessary migration from our legacy pulse device management system to its successor, DMCTC. I am very pleased to report that after 20 months of monumental effort and some pain that the technical migration of more than 8.5 million devices to DMCTC. is now essentially complete all of our TSP customers can now look forward to fully leveraging the improved functionality and benefits of DMCTC. as opposed to migrating devices.

對於我們的 TSP 客戶而言，另一個複雜因素是，從我們原有的脈衝設備管理系統遷移到其後續系統 DMCTC 是一項困難但必要的工作。我非常高興地報告，經過 20 個月的巨大努力和一些困難，超過 850 萬台設備向 DMCTC 的技術遷移現已基本完成。我們所有的 TSP 客戶現在都可以期待充分利用 DMCTC 的改進功能和優勢，而無需再進行設備遷移。

Furthermore, as the final strokes of the migration are completed, the CalAmp team can refactor more of its time and attention to optimizing the customer experience and driving revenue growth. Overall, the Company generated $53.6 million in revenue and $1 million of adjusted EBITDA in the quarter, both of which fell below our expectations. At the time we provided directional commentary on October fifth, adjusted EBITDA was lower than expected as a result of the lower revenue and gross margin. Non-gaap OpEx was lower sequentially as a result of previous cost reduction initiatives and this helped to cushion the impact of lower revenue and gross margin.

此外，隨著遷移工作的最後階段完成，CalAmp 團隊可以將更多的時間和精力投入到優化客戶體驗並推動營收成長。整體而言，該公司本季實現營收 5,360 萬美元，調整後 EBITDA 為 100 萬美元，這兩項均低於我們的預期。當我們於 10 月 5 日提供方向性評論時，由於收入和毛利率下降，調整後的 EBITDA 低於預期。由於先前的成本削減措施，非GAAP營運支出環比下降，這有助於緩解收入和毛利率下降的影響。

On the product and sales front, the company continued to hone its focus on core market segments to maximize the effectiveness of our investments and resources. As a result, there were several developments in the quarter that we believe represent growth catalysts for the future. One of these developments was the release of an upgraded version of our AI. dash cam solution Vision 2.1. This new model offers the standalone video capabilities of vision 2.0, but also includes other telematics functionality such as GPS tracking without the need for a separate gateway for LMU. device Vision 2.1 has now been released for our K-12 and commercial fleet applications. As previously mentioned, we had another extraordinarily strong quarter in the industrial segment, particularly with our large OEM customer. We are also seeing some very encouraging market traction with other industrial OEMs who are showing significant interest in the flexibility and computing power of CalAmp's edge software platform edge core. This edge platform, together with our DMCTC. cloud enables customized edge computing capabilities for proprietary edge apps, which can lead to lower operating costs, improved flexibility and lower latency compared to traditional device-to-cloud solutions. We have customers integrating this unique edge capability today and are excited to expand our opportunity set with industrial OEMs. Also, our international Connected Car business continues to execute well, achieving several milestones in the quarter. First, we were granted Toyota genuine certification, enabling our solutions to be installed at Toyota's ports, thereby streamlining the sales and customer delivery process, and providing an opportunity for geographical expansion.

在產品和銷售方面，公司繼續專注於核心市場領域，以最大限度地提高投資和資源的效率。因此，本季出現了一些我們認為將推動未來成長的因素。其中一個進展是發布了升級版的AI行車記錄器解決方案Vision 2.1。這款新型號不僅具備Vision 2.0的獨立視訊功能，還包含其他遠端資訊處理功能，例如無需單獨的LMU網關即可進行GPS追蹤。 Vision 2.1設備現已在K-12學校和商業車隊應用上發布。如前所述，我們在工業領域又迎來了一個異常強勁的季度，尤其是與我們的大型 OEM 客戶合作方面。我們也看到其他工業 OEM 廠商對 CalAmp 邊緣軟體平台邊緣核心的靈活性和運算能力表現出了非常濃厚的興趣，這令人鼓舞。此邊緣平台與我們的 DMCTC 雲端平台結合，可為專有邊緣應用提供客製化的邊緣運算功能，與傳統的裝置到雲端解決方案相比，可降低營運成本、提高靈活性並降低延遲。目前已有客戶正在整合這項獨特的邊緣運算能力，我們很高興能夠與工業OEM廠商拓展合作機會。此外，我們的國際連網汽車業務持續保持良好勢頭，在本季實現了多個里程碑。首先，我們獲得了豐田原廠認證，使我們的解決方案能夠安裝在豐田的港口，從而簡化銷售和客戶交付流程，並為地理擴張提供了機會。

Additionally, Jaguar Land Rover has endorsed our Stolen Vehicle Recovery System as its recommended solution to help mitigate the impact of a growing soft issue in the UK, increasing staff of JLR.'s range. Rovers in the UK has led to significant increases in insurance premiums on these targeted models. With JLR.s endorsement, select insurance companies are offering lower premiums on vehicles that have our SVR solution installed. We are encouraged by Jay, a large endorsement of our unique SBR technology and believe that it represents a catalyst for growth in the UK market and beyond.

此外，捷豹路虎已認可我們的被盜車輛追回系統，並將其作為其推薦的解決方案，以幫助減輕英國日益嚴重的盜竊問題的影響，從而增加了捷豹路虎的員工人數。路虎在英國的行動導致這些特定車型的保險費大幅上漲。憑藉捷豹路虎的認可，部分保險公司為安裝了我們SVR解決方案的車輛提供更低的保費。Jay 對我們獨特的 SBR 技術給予了極大的認可，這令我們倍感鼓舞，我們相信這將成為英國市場及其他地區成長的催化劑。

During the quarter, we also launched an initiative to narrow our strategic focus to market segments where we are particularly well positioned and see opportunities for profitable growth. In addition to concentrating our resources in those market segments with the best opportunity for growth. Our narrower focus has also enabled us to take significant cost reduction actions. We estimate that our cost reduction actions will result in approximately $16 million in annualized savings compared to our fiscal Q2 run rate. We anticipate that approximately 75% of the savings will come from operating expenses and capital expenditures with the balance coming from reductions in cost of goods. While we expect to see some immediate benefit from our cost reduction initiatives, the full impact will be realized throughout fiscal year '25. With these reductions we expect to significantly strengthen the leverage in our operating model and to achieve adjusted EBITDA breakeven at approximately $42 million in quarterly revenue, depending on product mix and gross margins. On December 18, we announced the closing of a $45 million term loan with Linde Rock Lake Master Fund LP. This new term loan replaces our previous asset-backed line of credit and enhances our strategic positioning as we engage with new and existing customers, partners, and suppliers. That new capital also provides financial flexibility in support of our strategy and business transformation. Lynn rock is a long-time supporter of CalAmp. It is an existing holder of a large majority of CalAmp's 2% convertible senior notes maturing in August of 2025. In connection with the execution of the term loan agreement. CalAmp is amending the notes to add a security interest.

本季度，我們也啟動了一項計劃，將我們的策略重點縮小到我們具有特別優勢且看到獲利成長機會的市場區隔。此外，我們也將資源集中投入最具成長潛力的細分市場。我們更加專注於特定領域，這也使我們能夠採取大幅降低成本的措施。我們預計，與第二財季的營運水準相比，我們的成本削減措施將帶來約 1,600 萬美元的年度節省。我們預計，約 75% 的節省將來自營運費用和資本支出，其餘部分將來自商品成本的降低。雖然我們預計成本削減措施會立即帶來一些好處，但其全部影響將在 2025 財年內逐步顯現。透過這些削減措施，我們預計將大幅增強我們營運模式的槓桿作用，並實現調整後 EBITDA 盈虧平衡點，季度收入約為 4,200 萬美元，具體取決於產品組合和毛利率。12 月 18 日，我們宣布與 Linde Rock Lake Master Fund LP 完成 4500 萬美元的定期貸款交易。這項新的定期貸款取代了我們先前的資產抵押信貸額度，增強了我們在與新舊客戶、合作夥伴和供應商互動時的策略地位。這筆新資金也為我們的策略和業務轉型提供了財務靈活性。Lynn Rock 是 CalAmp 的長期支持者。它是 CalAmp 2025 年 8 月到期的 2% 可轉換優先票據的絕大多數現有持有人。與定期貸款協議的執行有關。CalAmp正在修改票據，增加擔保權益。

And finally, I'm very excited that we very recently announced the appointment of veteran technology leader, Chris Adams as CalAmp's next President and CEO effective January 22, 2024. Chris is an accomplished technology leader, will bring a wealth of knowledge and experience to Calian. He possesses a unique combination of technical depth, operational skills, and general management experience from a broad range of technology companies. Most recently as General Manager of the automotive sensing division at ON Semi, we have high confidence in Chris's ability to lead the company through its transformation and to greater value for customers and investors. As for me, I will continue to serve as catalyst Interim CEO until Chris arrives. Following his arrival, I will work with him and the team to ensure a smooth handover of leadership responsibilities following the handover I plan to resume my role as independent director for KLM has been a true pleasure to serve as Calix Interim CEO, and I can report without hesitation at the CalAmp team is talented and passionate, and they believe in the opportunity before us.

最後，我非常高興地宣布，我們最近宣布任命資深技術領導者克里斯·亞當斯為 CalAmp 的下一任總裁兼首席執行官，該任命將於 2024 年 1 月 22 日生效。Chris 是一位傑出的技術領導者，他將為 Calian 帶來豐富的知識和經驗。他兼具深厚的技術功底、卓越的營運技能和豐富的綜合管理經驗，曾在多家科技公司任職。Chris 最近擔任安森美半導體汽車感測部門總經理，我們對他帶領公司完成轉型並為客戶和投資者創造更大價值的能力充滿信心。至於我，我將繼續擔任臨時首席執行官，直到克里斯到任。他到任後，我將與他及團隊合作，確保領導職責順利交接。交接完成後，我計劃恢復擔任荷航獨立董事的職位。擔任 Calix 臨時執行長是一件非常愉快的事情，我可以毫不猶豫地報告說，CalAmp 團隊才華橫溢、充滿熱情，他們相信我們面前的機會。

In addition to having a great team. The Company also has other tremendous assets, including excellent products and solutions, a blue-chip customer base and a large and growing market opportunity. I look forward to supporting CalAmp's next chapter of profitable growth and market leadership.

除了擁有優秀的團隊之外。公司還擁有其他龐大的資產，包括優秀的產品和解決方案、優質的客戶群以及巨大且不斷成長的市場機會。我期待著支持 CalAmp 開啟下一個獲利成長和市場領導地位的篇章。

With that, I'll turn the call over to Kim to discuss our third quarter financial results in more detail. Jikun?

接下來，我將把電話交給 Kim，讓她更詳細地討論我們第三季的財務表現。吉坤？

Thank you, Jason, and thank you for stepping up during this transition. It has been a pleasure to work with you. My commentary will include reference to non-GAAP financial measures. A full reconciliation of these non-GAAP measures with the core corresponding GAAP measure is included in the earnings release. Total revenues in the third quarter were $53.6 million. Revenues declined 32% year over year and 13% sequentially from $61.7 million last quarter. Much of the year over year and quarter over quarter. Revenue decline was driven by lower sales to our TSP customers, partially offset by strong performance in our industrial and connected car market. Segments. As Jason mentioned in his remarks, the revenue decline was driven by our TSP customers continuing to rebalance their inventories while also navigating competitive pressures in their end markets. As we move into Q4. We are seeing early indications from our TSP customers that the business is stabilizing, and orders have improved. Recurring application subscription revenue in the quarter were $17.8 million, a $900,000. sequential decline. While the total connected car market segment revenues were steady quarter over quarter, the decline in recurring revenue was driven by our Connected Car UK operations as a large insurance carrier exited the UK market in the quarter. These declines were partially offset by recurring revenue growth in our K-12 segment.

謝謝你，傑森，也謝謝你在過渡時期挺身而出。與您合作非常愉快。我的評論將包括對非GAAP財務指標的引用。獲利報告中包含了這些非GAAP指標與對應核心GAAP指標的完整調節表。第三季總收入為 5,360 萬美元。營收年減 32%，季減 13%，上季營收為 6,170 萬美元。大部分是同比和環比下降。收入下降主要是由於對 TSP 客戶的銷售額減少，但工業和連網汽車市場的強勁表現部分抵消了這一影響。片段。正如傑森在演講中提到的那樣，收入下降是由於我們的 TSP 客戶不斷調整庫存，同時還要應對終端市場的競爭壓力。進入第四季。我們從 TSP 客戶那裡看到初步跡象表明，業務正在趨於穩定，訂單情況也有所改善。本季經常性應用程式訂閱收入為 1,780 萬美元，季減 90 萬美元。儘管互聯汽車市場整體收入環比保持穩定，但經常性收入的下降是由於我們在英國的互聯汽車業務受到衝擊，因為一家大型保險公司在本季度退出了英國市場。K-12 業務部門的經常性收入成長部分抵消了這些下滑。

Consolidated gross margin in the third quarter was 33% compared to 36% in the prior quarter. The sequential gross margin decline was driven by unfavorable product mix, lower volumes and higher than normal excess and obsolescence accruals and warranty expenses. E&o was largely driven by a set of SKUs from our cargo tracking product line and higher warranty expenses were the result of quality issues with one of our product skews, which has since been resolved. Third quarter GAAP operating expenses were $101 million excluding goodwill impairment restructuring charges. Expenses related to Jeff Gardner is passing and other nonrecurring expenses. Third quarter operating expenses would have declined $2.5 million sequentially to approximately $23 million, resulting in Q3 FY. 24 adjusted EBITDA was $1 million or 2% of revenue. Please see the press release for further details of our nonrecurring adjustments.

第三季綜合毛利率為 33%，上一季為 36%。毛利率環比下降的原因是產品組合不利、銷量下降以及高於正常水平的超額和報廢準備金以及保固費用。E&o 主要由我們貨物追蹤產品線中的一組 SKU 驅動，而較高的保固費用是由於我們的一款產品存在品質問題造成的，該問題現已解決。第三季GAAP營運支出為1.01億美元，不包括商譽減損重組費用。與 Jeff Gardner 相關的費用包括傳球費和其他非經常性費用。第三季營運支出較上季減少 250 萬美元至約 2,300 萬美元，導致 2024 財年第三季調整後 EBITDA 為 100 萬美元，佔營收的 2%。有關我們非經常性調整的更多詳情，請參閱新聞稿。

At the end of Q3 FY 24, we had total cash and cash equivalents of approximately $38.2 million as compared to $38.6 million last quarter. Cash flow from operations was a positive $1.8 million in the quarter. Free cash flow in the quarter was a negative $500,000. towards the end of Q3 FY 24, we implemented a significant cost reduction initiatives targeting $16 million in annualized cash savings relative to Q2 FY 24 run rates. These savings should be fully realized by the end of FY'25, approximately 25% of the reductions will come from cost of goods as new lower cost and higher performance products replace aging products over time. The balance of the reductions will come from operating expenses and capital expenditures. With these reductions, our adjusted EBITDA breakeven should be reduced to approximately $42 million in quarterly revenues, depending on business mix and realized gross margin in the quarter. We also assessed the carrying value of goodwill on our balance sheet, driven by significant revenue declines in our TSP. market segment. The fair value of some of the goodwill segment was determined to be less than the carrying value, and we recognized a $74 million goodwill impairment.

截至 2024 財年第三季末，我們的現金及現金等價物總額約為 3,820 萬美元，而上一季為 3,860 萬美元。本季經營活動產生的現金流為正180萬美元。本季自由現金流為負 50 萬美元。在 2024 財年第三季末，我們實施了一項重大的成本削減計劃，目標是相對於 2024 財年第二季的運行率，實現 1,600 萬美元的年度現金節省。這些節省應該在 2025 財年末完全實現，其中約 25% 的減少將來自商品成本，因為隨著時間的推移，新的、成本更低、性能更高的產品將取代老舊產品。剩餘的削減將來自營運費用和資本支出。透過這些削減措施，我們調整後的 EBITDA 盈虧平衡點應降至每季營收約 4,200 萬美元，具體取決於業務組合和本季實現的毛利率。我們也評估了資產負債表上的商譽帳面價值，這是由於我們在 TSP 市場領域的收入大幅下降所致。部分商譽部分的公允價值被確定低於帳面價值，因此我們確認了 7,400 萬美元的商譽減損。

Subsequent to the quarter end, we announced the closing of a strategic financing agreement with Manitowoc make the financing will provide additional liquidity and operating flexibility as we implement our restructuring efforts and return Cal amp to growth, profitability and cash flow generation.

季度末之後，我們宣布與 Manitowoc 達成戰略融資協議，該融資將為我們實施重組工作、使 Cal amp 恢復成長、盈利能力和現金流提供額外的流動性和營運靈活性。

As a note term loan has no financial covenants with this strategic financing and significantly lower cost structure. Incremental revenues will create enhanced profitability and cash flows, positioning the Company to execute on its plan to address the $230 million convertible loan coming due on August 1, 2025, and the $45 million term loan coming due December 15, 2027.

作為一種定期貸款，它沒有財務契約，這種策略融資方式成本結構也顯著降低。新增收入將帶來更高的盈利能力和現金流，使公司能夠執行其計劃，以解決將於 2025 年 8 月 1 日到期的 2.3 億美元可轉換貸款和將於 2027 年 12 月 15 日到期的 4500 萬美元定期貸款。

From a business outlook standpoint, in Q4, we expect revenues from our industrial markets segment to decrease from its recent multi-quarter highs to a more normalized level. We expect this revenue reduction in Industrial to be partially offset higher recovery from our TSP. customer. Overall, we expect the consolidated revenues to be down slightly and for the adjusted EBITDA to be stable relative to q three FY 24 level.

從業務前景來看，我們預計第四季度工業市場部門的收入將從近期幾季的高點下降到更正常的水平。我們預期工業領域的營收下降將被TSP客戶更高的回收率部分抵銷。總體而言，我們預計合併收入將略有下降，調整後的 EBITDA 將與 2024 財年第三季的水平保持穩定。

With that, I'll turn the call back to Jason for some final comments.

最後，我將把電話轉回給傑森，請他做最後的總結發言。

Jason, thank you.

傑森，謝謝你。

Can't. In conclusion, I would like to thank everyone for their continued support of Callon. We have an unwavering belief in the value our technology services and employees bring to the market, and our team remains dedicated to capitalizing on that value and navigating the opportunities ahead.

不能。最後，我要感謝大家一直以來對卡隆的支持。我們始終堅信我們的技術服務和員工為市場帶來的價值，我們的團隊也將繼續致力於發揮這種價值，並掌握未來的機會。

This concludes our prepared remarks, and we'll now open the call to your questions. Operator?

我們的發言稿到此結束，現在開始接受各位的提問。操作員？

Thank you. As a reminder, to ask a question, please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again, One moment for questions.

謝謝。再次提醒，如需提問，請按電話上的星號鍵1，然後等待播報您的名字。如需撤回您的問題，請再次按星號鍵。提問時間有限。

Yes, our first question comes from Adam Bubes with Goldman Sachs. You may proceed.

是的，我們的第一個問題來自高盛的亞當·布貝斯。您可以繼續。

Hi, this is Adam Bubes on for Jerry today. Thanks for taking my question. As a starting point, can you just put a finer point on what you're seeing in the TSP. market that's driving your confidence that we could see a recovery here soon. And then stepping back more broadly, how are you thinking about timing around them, return to revenue growth for the overall business? Thank you.

大家好，我是 Adam Bubes，今天代 Jerry 為您報道。謝謝您回答我的問題。首先，您能否更具體地說明您在TSP市場觀察到的哪些因素讓您相信我們很快就能看到市場復甦？再從更宏觀的角度來看，您如何看待這些措施帶來的時機變化，以及它們如何幫助公司整體恢復收入成長？謝謝。

Thanks, Adam. This is Jason. So I'll be abstract somewhat on this on the signals we're seeing from TSP.s. But basically, we're we are seeing order volume come up a bit. Our internal forecast is up. We're getting more favorable anecdotal commentary from our from our TSPs. So all of that leads us to believe that a recovery is underway. I'm being realistic. I think that recovery is going to be slow. We it's going to take us a while to get back up to historical levels. But like I said, we're optimistic in our current view is in Q4, we'll see a recovery relative to two Q. three on with respect to our forward guidance beyond the commentary provided here on overall consolidated revenue, I think we're going to be cautious on that at this point in time, Adam, but I'd say on balance where we're optimistic, you know, the big negative moving piece for us has been in the past few quarters TSPs, and we're seeing signs of recovery. As Jikun indicated in our prepared remarks, we're going to see kind of a return to normal for industrial. So that's going to that's going to work through the consolidated results. But overall, we're optimistic and we've got we’ve got some, we believe, growth catalysts in the business that will play out over time.

謝謝你，亞當。這是傑森。所以，我會稍微抽像地談談我們從TSP（交易服務提供者）看到的訊號。但基本上，我們看到訂單量略有上升。我們的內部預測上調了。我們從電信服務供應商那裡得到了更多有利的軼事評論。綜上所述，種種跡象顯示經濟正在復甦。我只是實事求是。我認為復甦將會是一個緩慢的過程。我們需要一段時間才能恢復到歷史水準。但正如我所說，我們目前樂觀地認為，第四季將會出現相對於第二季的復甦。從第三季開始，我們將對整體合併收入的未來指引做出更具體的說明，亞當，我認為我們目前會對此保持謹慎。但總的來說，我們樂觀的原因在於，過去幾季對我們影響最大的負面因素是TSP（電信服務供應商），而我們現在看到了復甦的跡象。正如季坤在我們事先準備好的演講稿中所指出的那樣，我們將看到工業逐漸恢復正常。所以，這將在合併後的業績報告中反映出來。但總的來說，我們持樂觀態度，我們相信，公司擁有一些成長催化劑，這些催化劑將在一段時間內發揮作用。

Thanks for that. And then nice to see the closing of the $45 million term loan. Can you just update us on how you're thinking about other strategic options to address the 2025 convertible note?

謝謝。很高興看到4500萬美元的定期貸款順利完成。能否簡要介紹您目前考慮的其他策略方案，以應對 2025 年可轉換債券的問題？

So I think we've discussed this in the past, Adam. So operationally, obviously, we're going to have to do better, right, grow the business, increased profitability and generate more cash. We believe these things will generate opportunities and flexibility options for us to be able to, one, potentially refinance a portion of all the debts coming due at a lower cost as well as push out some of it as well as pay off some of that at maturity. So fundamentally, the strategy really hasn't changed.

我想我們以前討論過這個問題，亞當。因此，從營運角度來看，顯然我們必須做得更好，發展業務，提高獲利能力，並創造更多現金流。我們相信，這些措施將為我們帶來機會和靈活的選擇，使我們能夠以更低的成本對部分到期債務進行再融資，並推遲部分債務的償還期限，同時在到期時償還部分債務。所以從根本上講，戰略並沒有改變。

Okay. Got it. And then just lastly from me, you folks have been focused on some new applications and solutions. Just wondering how the growth trajectory of some of those higher ARPU solutions have been and how you think about revenue subscriber trends over the next several quarters as you work to grow those newer applications and solutions?

好的。知道了。最後我想說的是，大家最近一直在關註一些新的應用和解決方案。我想了解一些高ARPU解決方案的成長軌跡如何，以及在您努力發展這些新應用和解決方案的過程中，您如何看待未來幾季的營收用戶趨勢？

Sure, Adam. This is Jason. I'll talk to really Vision 2.1 has been kind of our most recent important launch in terms of ARPU driver. That product has been now fully integrated with both our K-12 apps and our CalAmp app for commercial fleet, and we're in market with it. We've got a handful of customer wins and installations. So we're kind of stepping into it now. We're optimistic there. And in particular around K-12. And the other dynamic around K-12 is they're back and they're back to business now after their normal seasonal quiet period as school opens and, of course, through the holidays. So we're optimistic there and other growth catalysts to point to outside the app. Our Connected Car connected car has, I think, a few good things happening. We've organically opened in Spain about 18 months ago, and that business has now achieved breakeven and is continuing to grow. And based on the success there, we're evaluating other geographical expansion opportunities with connected car, mainly in Europe. And in addition to that, we've got some nice milestones, customer milestones in that part of the business with both Toyota and GM and Jaguar Land Rover that we believe can help us drive more growth in that in that area of the business.

當然，亞當。我是傑森。我會和他談談Vision 2.1，就ARPU驅動而言，這是我們最近最重要的一次發布。該產品現已完全整合到我們的 K-12 應用程式和商業車隊的 CalAmp 應用程式中，並且我們正在將其推向市場。我們已經成功拿下了一些客戶，並完成了一些安裝項目。所以我們現在算是開始涉足其中了。我們對此持樂觀態度。尤其是在K-12階段。K-12教育領域的另一個動態是，隨著學校開學和假期結束，他們已經恢復了正常的季節性淡季，業務也重新步入正軌。因此，我們對這一領域持樂觀態度，同時也關注著應用之外的其他成長動力。我認為，我們的連網汽車有一些不錯的改進之處。大約 18 個月前，我們在西班牙自然而然地開設了分店，現在該業務已經實現收支平衡，並且正在持續成長。基於在該地區的成功，我們正在評估互聯汽車在其他地區的擴張機會，主要在歐洲。除此之外，我們在業務的這一部分與豐田、通用和捷豹路虎都取得了一些不錯的里程碑式的成就，我們相信這些成就能夠幫助我們在該業務領域推動更大的成長。

Thanks so much.

非常感謝。

Thank you. And as a reminder, to ask a question, please press star one on your telephone. One moment for questions and I'm not showing any further questions. I would like to I'll turn the call back over to Jason Cohenour for any closing remarks.

謝謝。再次提醒大家，如有任何疑問，請按手機上的星號鍵 1。稍等片刻，回答問題，之後不再回答任何問題。我想把電話轉回給傑森·科恩諾，讓他做最後的總結發言。

Thank you, Josh, and thank you to everybody for joining us on the call today and for your continued interest in Callon. We look forward to speaking with you again during our fourth quarter and fiscal year 2024 earnings call. Josh, you can now disconnect the call.

謝謝 Josh，也感謝今天所有參加我們電話會議的朋友們，以及大家對 Callon 的持續關注。我們期待在2024財年第四季財報電話會議上再次與您交流。喬希，你現在可以掛斷電話了。

Thank you. Thank you for your participation. You may now disconnect.

謝謝。感謝您的參與。您現在可以斷開連線了。