Casa Systems Inc (CASA) 2023 Q1 法說會逐字稿

Hello, and welcome to the Casa Systems First Quarter 2023 Earnings Call and Webcast. (Operator Instructions) A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Dennis Daly, Investor Relations. Please go ahead.

大家好，歡迎來到 Casa Systems 2023 年第一季度收益電話會議和網絡廣播。 （操作員說明）正式演示後將進行問答環節。提醒一下，這次會議正在錄製中。現在我很高興將電話轉給你的主持人丹尼斯戴利，投資者關係部。請繼續。

Thank you, operator, and good afternoon, everyone. Casa Systems released results for the first quarter of fiscal year 2023 ended March 31, 2023 this afternoon after the market closed. If you did not receive a copy of our earnings press release, you may obtain it from the Investor Relations section of our website at investors.casa-systems.com.

謝謝接線員，大家下午好。 Casa Systems 在今天下午收市後發布了截至 2023 年 3 月 31 日的 2023 財年第一季度業績。如果您沒有收到我們的收益新聞稿副本，您可以從我們網站 investors.casa-systems.com 的投資者關係部分獲取。

With me on today's call is Ed Durkin, our Chief Financial Officer and Interim CEO. This call is being webcast and will be archived on the Investor Relations section of our website.

和我一起參加今天電話會議的是我們的首席財務官兼臨時首席執行官 Ed Durkin。此電話會議正在進行網絡直播，並將存檔在我們網站的投資者關係部分。

Before I turn the call over to Ed, I'd like to note that today's discussion will contain forward-looking statements based on the business environment as we currently see it, and as such, it does include certain risks and uncertainties. Please refer to our press release and our SEC filings for more information on the specific risk factors that could cause our actual results to differ materially from the projections described in today's discussion. Any forward-looking statements that we make on this call or in the earnings release are based upon information we believe as of today and undertake no obligation to update these statements as a result of new information or future events.

在我將電話轉給 Ed 之前，我想指出，今天的討論將包含基於我們目前所見商業環境的前瞻性陳述，因此，它確實包含某些風險和不確定性。請參閱我們的新聞稿和提交給美國證券交易委員會的文件，了解有關可能導致我們的實際結果與今天討論中描述的預測存在重大差異的具體風險因素的更多信息。我們在本次電話會議或收益發布中所做的任何前瞻性陳述均基於我們認為截至今天的信息，並且不承擔因新信息或未來事件而更新這些陳述的義務。

In addition to U.S. GAAP reporting, we report certain financial measures that do not conform to generally accepted accounting principles. During the call, we may use non-GAAP measures if we believe it is useful to investors or believe it will be helpful to investors to better understand our performance or business trends.

除了美國公認會計原則報告外，我們還報告了某些不符合公認會計原則的財務指標。在電話會議期間，如果我們認為對投資者有用或相信這將有助於投資者更好地了解我們的業績或業務趨勢，我們可能會使用非 GAAP 措施。

And with that, I'd like to turn the call over to Ed. Ed?

有了這個，我想把電話轉給埃德。埃德？

Thank you, Dennis, and good afternoon, everyone. Thank you for joining us on our call today. We issued 3 press releases and filed an 8-K this afternoon, including our first quarter 2023 financial results, which I'll cover in more detail momentarily. Since reporting on our fourth quarter results in mid-March, the entire team at Casa Systems has made great progress in streamlining our organization, executing on our 2023 business plan by delivering market-leading solutions to market, closing new sales deals and positioning ourselves to improve future profitability, and I'm pleased with the considerable changes we have made.

謝謝丹尼斯，大家下午好。感謝您今天加入我們的電話會議。今天下午，我們發布了 3 份新聞稿並提交了一份 8-K，其中包括我們 2023 年第一季度的財務業績，稍後我將對此進行更詳細的介紹。自 3 月中旬報告我們的第四季度業績以來，Casa Systems 的整個團隊在精簡我們的組織、通過向市場提供市場領先的解決方案、完成新的銷售交易以及定位自己來執行我們的 2023 年業務計劃方面取得了很大進展提高未來的盈利能力，我對我們所做的重大改變感到滿意。

But before I speak to our financial performance in the quarter, I'm also very pleased to say that in one of our other press releases today, we announced the execution of our strategic term loan B transaction support agreement, TSA, with the majority of our lender group, which when formally completed, will extend our debt maturity to December 2027, all as detailed in the 8-K we filed on this TSA matter today as well.

但在我談到我們本季度的財務業績之前，我也很高興地說，在我們今天的其他新聞稿中，我們宣布執行我們的戰略定期貸款 B 交易支持協議 TSA，其中大部分我們的貸方集團正式完成後，會將我們的債務期限延長至 2027 年 12 月，所有這些都在我們今天就此 TSA 問題提交的 8-K 中進行了詳細說明。

When the financing completed by that TSA is finalized, we'll have a significantly extended maturity date of this facility from December 2023 to December 2027, which gives us the time and flexibility to continue with our efforts to significantly enhance shareholder value by executing on our previously announced cash and capital efficient growth plan and our plan to further aggressively delever. This is a significant milestone for Casa, and we believe the support of the large majority of the lenders for the TSA demonstrates their confidence in our operating plan and the resiliency of our business.

當 TSA 完成的融資最終確定時，我們將把該貸款的到期日從 2023 年 12 月顯著延長至 2027 年 12 月，這使我們有時間和靈活性繼續努力，通過執行我們的之前宣布的現金和資本高效增長計劃以及我們進一步積極去槓桿化的計劃。這對 Casa 來說是一個重要的里程碑，我們相信絕大多數貸方對 TSA 的支持表明他們對我們的運營計劃和我們業務的彈性充滿信心。

As you can imagine, in a comprehensive process like the one we just went through, there are third parties involved looking at all aspects of our business. I'm very pleased with the feedback, particularly on the competitive differentiation of our cloud and cable product offerings and our ability to capitalize on the core market segments we are focused on. Our market-leading product portfolios for cable access and cloud are complete, with no major product portfolio gaps and with strong customer demand across all market segments.

可以想像，在像我們剛剛經歷的那樣的綜合過程中，有第三方參與查看我們業務的各個方面。我對反饋非常滿意，特別是關於我們的雲和電纜產品的競爭差異化以及我們利用我們關注的核心細分市場的能力。我們市場領先的有線接入和雲產品組合是完整的，沒有重大的產品組合差距，並且在所有細分市場都有強勁的客戶需求。

I would finally like to thank the whole Casa team and the talented teams at JPMorgan and Sidley Austin for all their hard work to allow us to announce this important TSA today. And I would finally like to thank our term loan B debt holders for their steadfast support and considerable efforts in getting this TSA agreement done.

最後，我要感謝整個 Casa 團隊以及 JPMorgan 和 Sidley Austin 的才華橫溢的團隊，感謝他們的辛勤工作，讓我們今天能夠宣布這一重要的 TSA。最後，我要感謝我們的定期貸款 B 債務持有人，感謝他們的堅定支持和為完成 TSA 協議所做的巨大努力。

The other press release we issued this afternoon was a new virtual CCAP and RPD node customer win with Claro Colombia. This deal, which we originally thought would close in Q1 2023, but then was delayed for a few weeks as we dealt with some untruths being circulated by some of our fact-challenged competitors, was great validation of the capabilities of our virtual CCAP core and RPD node offerings, which we've invested heavily and over the past few years. And we hope to announce other like virtual CCAP core and RPD node customer wins in the very near future.

我們今天下午發布的另一篇新聞稿是與 Claro Colombia 贏得新的虛擬 CCAP 和 RPD 節點客戶。我們最初認為這筆交易會在 2023 年第一季度完成，但後來由於我們處理了一些受到事實挑戰的競爭對手散佈的謊言而被推遲了幾週，這是對我們虛擬 CCAP 核心功能和RPD 節點產品，我們在過去幾年中投入了大量資金。我們希望在不久的將來宣布其他虛擬 CCAP 核心和 RPD 節點客戶獲勝。

This string of good news builds up the great momentum we had last month when we announced that our innovative DA 2200 Distributed Access node, the only FPGA-based DOCSIS 4.0 already Remote PHY node in the industry, was successfully deployed with Tier 1 cable MSOs in North and South America. This solution has set industry benchmarks for performance and flexibility as our DA 2200 Distributed Access nodes provides cable operators with a flexible foundation that enables a smooth, cost-effective future transition to distributed cloud native environments.

這一連串的好消息增強了我們上個月的巨大勢頭，當時我們宣布我們的創新 DA 2200 分佈式接入節點是業界唯一基於 FPGA 的 DOCSIS 4.0 已經遠程 PHY 節點，已成功部署在 1 層有線 MSO 中北美和南美。該解決方案為性能和靈活性設定了行業基準，因為我們的 DA 2200 分佈式接入節點為有線運營商提供了一個靈活的基礎，使未來能夠平穩、經濟高效地過渡到分佈式雲原生環境。

Switching gears, in mid-April, we also announced that LG U+, a leading South Korean mobile network operator, is working with Casa and our partner, E-Tech System, to deploy our eNode B Gateway and Security Gateway solutions, which will enable LG U to simplify its network, improve, therefore, G service coverage and service quality and more easily capitalize on their growing market opportunity. We're continuing to work with multiple operators like LG U+ in the region, and we expect this deployment to be first of many engagements for Casa.

開關裝置，4 月中旬，我們還宣布韓國領先的移動網絡運營商 LG U+ 正在與 Casa 和我們的合作夥伴 E-Tech System 合作，部署我們的 eNode B 網關和安全網關解決方案，這將使LG U 簡化其網絡，從而提高 G 服務覆蓋範圍和服務質量，並更輕鬆地利用其不斷增長的市場機會。我們將繼續與該地區的 LG U+ 等多家運營商合作，我們預計此次部署將成為 Casa 眾多項目中的第一個。

Turning now to our strategic partnership with Verizon. We remain on track and have achieved all delivery milestones to date. Verizon's confidence in our offering is an important validation of our 5G core and MEC solution and our security gateway software solution as well. And it's a good validation of our go-forward strategy and leadership position in cloud-native 5G core and mobile edge compute solutions. We expect increased GAAP revenues from our Verizon partnership in our second quarter and second half of 2023, given the progress we are making and the positive status of this very important and large partnership.

現在談談我們與 Verizon 的戰略合作夥伴關係。我們保持在正軌上，並且已經實現了迄今為止的所有交付里程碑。 Verizon 對我們產品的信心是對我們的 5G 核心和 MEC 解決方案以及我們的安全網關軟件解決方案的重要驗證。這很好地驗證了我們在雲原生 5G 核心和移動邊緣計算解決方案中的前瞻性戰略和領導地位。鑑於我們正在取得的進展以及這一非常重要且龐大的合作夥伴關係的積極地位，我們預計 2023 年第二季度和下半年我們與 Verizon 合作夥伴關係的 GAAP 收入將有所增加。

And finally, before I go into the Q1 financial results, I would like to note that the search for a permanent CEO remains active and ongoing, and the Board is interviewing candidates now for this role. We look forward to announcing more on this in the coming few months. Let's now move to our financial results for the first quarter.

最後，在我介紹第一季度財務業績之前，我想指出，尋找永久 CEO 的工作仍在積極進行中，董事會現在正在面試這個職位的候選人。我們期待在未來幾個月內就此發布更多信息。現在讓我們來看看第一季度的財務業績。

Revenue for the quarter came in at $45.3 million, which is down 30% from a year ago, while our revenue performance came in slightly below our expectations due to the slip timing of some cable orders due to the uncertainty regarding our term loan B status, including Claro, which we have now closed as well as timing of acceptance of a software delivery for one large cloud software contract. We believe we will see revenue contributions from both items in Q2 2023, and this was solely a timing matter and not any type of competitive loss.

本季度的收入為 4530 萬美元，比去年同期下降 30%，而我們的收入表現略低於我們的預期，這是由於我們定期貸款 B 狀態的不確定性導致一些電纜訂單的延遲時間，包括我們現在已經關閉的 Claro，以及接受一個大型雲軟件合同的軟件交付的時間。我們相信我們將在 2023 年第二季度看到這兩個項目的收入貢獻，這只是一個時間問題，而不是任何類型的競爭損失。

We continue to believe that revenue for the year will be within our guided range of $300 million to $325 million and weighted toward the second half of the year, given the timing of backlog shipments, shipments of our new 4G, 5G small cell radio offerings in the second half, later-stage pipeline deals we expect to convert to revenue in 2H 2023 and revenue recognition related to deferred revenues now on our balance sheet.

我們仍然相信，今年的收入將在我們 3 億美元至 3.25 億美元的指導範圍內，並在今年下半年加權，考慮到積壓發貨的時間，我們新的 4G、5G 小型蜂窩無線電產品的發貨時間下半年，我們預計將在 2023 年下半年將後期管道交易轉化為收入，並在我們的資產負債表上確認與遞延收入相關的收入。

To provide investors with a clearer view of our performance, we have modified how we are disclosing revenue by 3 product lines, which have similar attributes, the revenue contribution by product offerings are easier to follow. Breaking down revenue across our 3 product lines. Our Q1 cloud revenue, which consists of our 5G core and MEC software, our security gateway software product and the virtual BNG routing software was $4.2 million, which was up 86% from $2.3 million in the prior year.

為了讓投資者更清楚地了解我們的業績，我們修改了 3 條產品線的收入披露方式，這些產品線具有相似的屬性，產品的收入貢獻更容易追踪。細分我們 3 條產品線的收入。我們第一季度的雲收入（包括我們的 5G 核心和 MEC 軟件、我們的安全網關軟件產品和虛擬 BNG 路由軟件）為 420 萬美元，比去年的 230 萬美元增長了 86%。

Q1 cable revenue, consisting of all products customarily associated with our cable line of business, was $15.3 million, which was down 46% from $28.6 million in the prior year. The decline in cable was largely due to lower software license revenue during the quarter. And finally, Q1 access revenue, which includes our access device products from our 2019 NetComm acquisition, plus our 4G/5G enterprise small cell radio products, was $25.8 million, which was down 23% from $33.5 million from the prior year.

第一季度有線電視收入（包括通常與我們的有線電視業務相關的所有產品）為 1,530 萬美元，比去年同期的 2,860 萬美元下降了 46%。有線電視業務的下滑主要是由於本季度軟件許可收入下降。最後，第一季度的接入收入為 2580 萬美元，其中包括我們 2019 年收購 NetComm 的接入設備產品，以及我們的 4G/5G 企業小型蜂窩無線電產品，比上年的 3350 萬美元下降了 23%。

Turning now to backlog. We currently have approximately $140 million in backlog product and service orders, including scheduled 2023 Verizon 5G MEC contract billings, bringing our total backlog, deferred revenue and the remaining $92 million of future billings under the Verizon contract to be built in 2024 and beyond to approximately $270 million.

現在轉向積壓。我們目前有大約 1.4 億美元的積壓產品和服務訂單，包括預定的 2023 年 Verizon 5G MEC 合同賬單，使我們的總積壓訂單、遞延收入和 2024 年及以後建造的 Verizon 合同項下剩餘的 9200 萬美元未來賬單達到大約2.7億美元。

As we noted last quarter, we also have approximately $57 million of closed multiyear contracted business for our 4G/5G enterprise small cell radios with a major North American MNO, where we get POs on an annual as-ordered basis. I want to note that this is not included in the backlog and deferred revenue numbers I just mentioned and that these small cell radios will begin shipping in the second half of 2023, pursuant to close contracts we have.

正如我們在上個季度指出的那樣，我們還與北美主要 MNO 簽訂了約 5700 萬美元的 4G/5G 企業小型蜂窩無線電多年合同業務，我們每年按訂單獲得 PO。我想指出，這不包括在我剛才提到的積壓和遞延收入數字中，並且這些小型蜂窩無線電將根據我們簽訂的合同於 2023 年下半年開始發貨。

As we noted in our fourth quarter call in March, we are continuing to see good improvements in supply chain and believe a significant majority of our backlog will ship in 2023, assuming there is no unanticipated deterioration in our supply chain in the future.

正如我們在 3 月份的第四季度電話會議中指出的那樣，我們繼續看到供應鏈的良好改善，並且相信我們的大部分積壓訂單將在 2023 年發貨，前提是我們的供應鏈未來不會出現意外惡化。

Moving to gross profit. GAAP gross profit for Q1 came in at $18.2 million or 40% of revenue. GAAP operating expenses for the quarter came in at $45.3 million, including $3.9 million in nonrecurring charges related to Jerry's departure as President and CEO in March 2023.

轉向毛利。第一季度的 GAAP 毛利潤為 1820 萬美元，佔收入的 40%。本季度的 GAAP 運營費用為 4530 萬美元，其中包括與 Jerry 於 2023 年 3 月辭去總裁兼首席執行官職務相關的 390 萬美元非經常性費用。

And while outside of the first quarter, it's also important to note that in April 2023, we made the difficult decision to reduce our headcount by approximately 13% across all functions and geos and to reduce non-headcount costs as well. This is a necessary step to rightsize the cost structure to our revenue levels and was done surgically so we could continue to innovate in cable and cloud, retain our product lead and excellence and capitalize on future growth opportunities. This realignment of resources would help Casa towards our goal of returning to annual net adjusted EBITDA positive results in 2023 and beyond.

在第一季度之外，同樣重要的是要注意，在 2023 年 4 月，我們做出了艱難的決定，將所有職能部門和地區的員工人數減少約 13%，並降低非員工成本。這是根據我們的收入水平調整成本結構的必要步驟，並且是通過外科手術完成的，因此我們可以繼續在有線和雲領域進行創新，保持我們的產品領先地位和卓越性，並利用未來的增長機會。這種資源調整將幫助 Casa 實現我們的目標，即在 2023 年及以後恢復年度淨調整後 EBITDA 正結果。

Our GAAP operating loss for the quarter was $27.1 million. This was primarily driven by our softer-than-expected Q1 revenue results and the nonrecurring $3.9 million charge taken during Q1. As mentioned, the largest cable deal that did slip outside of Q1 is now closed. We also expect to receive formal acceptance on the software order that slipped outside of Q1 soon. And we have taken action to reduce our cost structure in April 2023 as just announced.

我們本季度的 GAAP 營業虧損為 2710 萬美元。這主要是由於我們的第一季度收入結果低於預期以及第一季度發生的非經常性費用 390 萬美元。如前所述，第一季度以外最大的有線電視交易現已結束。我們還希望很快收到第一季度外的軟件訂單的正式驗收。正如剛剛宣布的那樣，我們已採取行動在 2023 年 4 月降低成本結構。

Further, it should be noted our operating cash burn was very modest in Q1 at only $8.4 million. And this is important to recognize and reflects the high level of noncash charges flowing through our GAAP P&L.

此外，應該指出的是，我們在第一季度的運營現金消耗非常溫和，僅為 840 萬美元。這對於識別和反映流經我們的 GAAP 損益表的高水平非現金費用很重要。

Finally, related to our Q1 P&L, our net loss for the quarter was $31.7 million or $0.33 loss per diluted share versus a net loss of $32.6 million in Q1 2022. On a non-GAAP basis, we had a loss of $24.5 million or $0.26 loss per share and reported adjusted EBITDA loss of $16.2 million as reflected in the schedule shown in our press release.

最後，與我們第一季度的損益相關，我們本季度的淨虧損為 3170 萬美元或攤薄後每股虧損 0.33 美元，而 2022 年第一季度的淨虧損為 3260 萬美元。按非美國通用會計準則計算，我們虧損 2450 萬美元或每股攤薄虧損 0.26 美元每股虧損和報告的調整後 EBITDA 虧損 1620 萬美元，如我們新聞稿中所示的時間表所示。

Turning to our balance sheet. We ended the quarter with cash, cash equivalents and restricted cash of $115.6 million. Our cash balance at March 31, 2023 was down approximately $14 million compared to December 31 due primarily to an approximately $2 million reduction in our term loan B debt, another $2.9 million use of cash for financing activities, so modest fixed asset purchases and the modest operating cash burn during the quarter, as just mentioned. We ended the quarter with high-quality accounts receivables of approximately $47.5 million, which excludes major billings we are in the process of issuing Q2 related to our Verizon contract. Further, I'm pleased to say that our long-term debt, which was $274 million as of 3/31/22, is now down to $223 million, reflecting great progress on our delevering plan.

轉向我們的資產負債表。本季度末，我們的現金、現金等價物和受限現金為 1.156 億美元。與 12 月 31 日相比，我們在 2023 年 3 月 31 日的現金餘額減少了約 1400 萬美元，這主要是由於我們的定期貸款 B 債務減少了約 200 萬美元，另外 290 萬美元現金用於融資活動，因此適度的固定資產購買和適度的正如剛才提到的，本季度的運營現金消耗。本季度結束時，我們的高質量應收賬款約為 4750 萬美元，其中不包括我們正在發行與 Verizon 合同相關的第二季度的主要賬單。此外，我很高興地說，截至 2022 年 3 月 31 日，我們的長期債務為 2.74 億美元，現在已降至 2.23 億美元，這反映出我們的去槓桿化計劃取得了巨大進展。

Finally, we are reiterating our annual 2023 revenue guidance of $300 million to $325 million and positive net adjusted EBITDA results for the year. As noted earlier, we expect 2023 to be back-end weighted. And our guidance is based on visibility into our backlog, deferred revenue and later-stage pipeline deals, including large expansion deals at major customers, which we expect to convert into revenue later this year.

最後，我們重申 2023 年 3 億至 3.25 億美元的年度收入指引和全年調整後的 EBITDA 淨利潤為正。如前所述，我們預計 2023 年將進行後端加權。我們的指導基於對積壓訂單、遞延收入和後期管道交易的可見性，包括主要客戶的大型擴張交易，我們預計這些交易將在今年晚些時候轉化為收入。

So to wrap up, the team and I are incredibly excited about the recent developments at Casa. From our recent customer wins to new successful customer deployments to the progress we're making in our important partnership for Verizon, we're on the right path to drive growth and return to net adjusted EBITDA profitability. And we will soon have the December 23 maturity overhang formally resolved with the support of this majority of term Loan B lenders pursuant to the TSA we announced today.

總而言之，我和團隊對 Casa 最近的發展感到非常興奮。從我們最近贏得客戶到新的成功客戶部署，再到我們在與 Verizon 的重要合作夥伴關係中取得的進展，我們正走在推動增長和恢復調整後 EBITDA 淨盈利能力的正確道路上。根據我們今天宣布的 TSA，在大多數定期貸款 B 貸方的支持下，我們將很快正式解決 12 月 23 日的到期未決問題。

I want to thank the entire team at Casa for the dedication to serving our customers and staying focused on our long-term goals during this time of transition. I will now turn the call over to the operator to open the line for any questions. Operator?

我要感謝 Casa 的整個團隊在這個過渡時期致力於為我們的客戶服務並專注於我們的長期目標。我現在將把電話轉給接線員，以便為任何問題打開線路。操作員？

We'll now be conducting a question-and-answer session. (Operator Instructions) Our first question is coming from Simon Leopold from Raymond James.

我們現在將進行問答環節。 （操作員說明）我們的第一個問題來自 Raymond James 的 Simon Leopold。

A handful of things. One more on the housekeeping front is with the redefined segments, will you be posting essentially a pro forma so that we could see what the trending has been with the new segmentation over the last 8 quarters, just to help with kind of forecasting and identification of trends? Is that something you plan to do or can do?

一些東西。內務處理方面的另一個問題是重新定義的細分市場，您是否會發布一份備考表，以便我們可以了解過去 8 個季度新細分市場的趨勢，只是為了幫助預測和識別趨勢？這是你計劃或可以做的事情嗎？

Yes, Simon, we'll do that.

是的，西蒙，我們會這樣做的。

Great. That was an easy one. They'll get a little harder. What do you expect for your interest expenses going forward with the new term B? And congratulations for getting that done.

偉大的。那很容易。他們會變得更難。您對新學期 B 未來的利息支出有何期望？並祝賀你完成了這項工作。

Yes. Thank you. So I think the interest rate structure is in the 8-K. As we close it later in Q2, it should be kind of (inaudible) plus 6.5%, somewhere around 10%, so slightly higher, but still a very good market rate.

是的。謝謝。所以我認為利率結構在 8-K。當我們在第二季度晚些時候關閉它時，它應該有點（聽不清）加 6.5%，大約 10%，所以略高，但仍然是一個非常好的市場利率。

Okay. And what is sort of the normalized expense run rate now? Because I guess the recent cuts were done during the current quarter. So really, I'm trying to get a better sense of where do you think operating expenses settle in the second, let's call it, 3Q, 4Q OpEx budget? What are you thinking?

好的。現在的標準化費用運行率是多少？因為我猜最近的削減是在本季度完成的。所以真的，我想更好地了解你認為第二季度的運營費用在哪裡，我們稱之為 3Q，4Q OpEx 預算？你在想什麼？

Yes. So we did do the rightsizing, Simon. It was surgical in nature and it preserved our ability to grow in our core market segments, including cable and cloud and RAN. In total, we took out of -- on an annualized basis, excluding severance charges, we took out about $28 million of expense with the April action. That said, we are continuing to invest in certain areas like cable and cloud and elsewhere. But the annualized savings from that April event was roughly $28 million.

是的。所以我們確實進行了調整，西蒙。它本質上是外科手術，它保留了我們在核心市場領域增長的能力，包括有線、雲和 RAN。總的來說，我們扣除了——按年計算，不包括遣散費，我們在 4 月份的行動中扣除了大約 2800 萬美元的費用。也就是說，我們將繼續投資某些領域，例如電纜和雲以及其他地方。但那次 4 月的活動每年節省大約 2800 萬美元。

Great. And then in terms of an update on the Verizon progress. I think at the end of the last quarter, there was, I believe, a $120 million lift in the project. You had only recognized a fraction of revenue last year. What are your expectations for how much of that Verizon project is baked into the 2023 forecast?

偉大的。然後是關於 Verizon 進展的更新。我認為在上個季度末，我相信該項目增加了 1.2 億美元。去年您只確認了一小部分收入。您對 2023 年預測中包含多少 Verizon 項目有何期望？

Yes. So very good question. We did recognize only a fraction last year. I think we billed them $20 million and got paid from Verizon $20 million in nonrefundable payments in 2022 and only took about $7 million of -- $6.5 million or $7 million. We actually recognized no revenue from Verizon in Q1 2023. So we're just waiting on the formal acceptance, but the project itself is going great. And I would expect more meaningful revenue contributions from Verizon in Q2 and in the second half of 2023.

是的。非常好的問題。去年我們確實只認識了一小部分。我認為我們在 2022 年向他們收取了 2000 萬美元的費用，並從 Verizon 那裡獲得了 2000 萬美元的不可退還付款，並且只收取了大約 700 萬美元——650 萬美元或 700 萬美元。實際上，我們在 2023 年第一季度沒有確認來自 Verizon 的收入。所以我們只是在等待正式驗收，但項目本身進展順利。我預計 Verizon 在第二季度和 2023 年下半年將做出更有意義的收入貢獻。

Your next question today is coming from Tim Savageaux from Northland Capital Markets.

您今天的下一個問題來自 Northland Capital Markets 的 Tim Savageaux。

Can you hear me okay?

你能聽到我說話嗎？

Yes. Hey, Tim.

是的。嘿，蒂姆。

Okay. Great. So I'm just kind of working through this debt agreement. And does this leave you with -- still with some maturities at the end of the year over the old agreement?

好的。偉大的。所以我只是在處理這份債務協議。這是否會讓您在年底仍舊協議到期？

Yes. So the belief is that we will get substantially all of the term loan B lenders to sign on to this. This first phase was to get the 60% we have signed up today, but there are mechanisms that can be put in place now with this majority to incent the remaining lenders to join in the sense of us and JPMorgan is that, substantially all will sign on. And any type of stuff will be very minimal, if any, at the end of the year.

是的。因此，我們相信，我們將獲得幾乎所有 B 期貸款貸方的同意。第一階段是為了獲得我們今天簽署的 60%，但現在可以建立機制，以大多數人來激勵剩餘的貸方加入我們和摩根大通的感覺，基本上所有人都會簽署在。到年底，任何類型的東西都將非常少，如果有的話。

Okay. And as it stands now, you've got 60% of it going out to '27, the $40 million paydown, and about $50 million kind of remaining that you hope to convert to the same '27 status. Is that accurate?

好的。就目前而言，你有 60% 的資金用於 27 年，即 4000 萬美元的支付，以及你希望轉換為相同的 27 年狀態的大約 5000 萬美元。那是準確的嗎？

Yes, that's correct, Tim. But again, this is part of the strategy. And again, we expect substantially all to sign on to this new deal.

是的，沒錯，蒂姆。但同樣，這是戰略的一部分。同樣，我們預計幾乎所有人都會簽署這項新協議。

Got it. A question about the Claro then. I mean can you give us any metrics on kind of the size and importance of that opportunity to you guys and how significant a customer that could be, say, relative to big customers you've had in the past? Or any kind of metrics that you want to toss out there.

知道了。然後是關於 Claro 的問題。我的意思是，你能給我們任何指標，說明這個機會對你們的規模和重要性，以及一個客戶相對於你過去擁有的大客戶來說有多重要嗎？或者您想在那里扔掉的任何類型的指標。

Yes. So it was a great validation of our virtual CCAP core and RPD node, Tim. In terms of size, it was mid- to high single-digit millions. It was particularly gratifying to win that in that we had a deal with some fear, uncertainty and doubt that some of our true challenged competitors were selling after our March announcement. But they have confidence in us, and we're very pleased to announce that win, and we do think there is substantial land and expand inside of Claro as well.

是的。因此，這是對我們的虛擬 CCAP 核心和 RPD 節點 Tim 的一個很好的驗證。就規模而言，它是中高個位數的百萬。贏得這場比賽特別令人欣慰，因為我們帶著一些恐懼、不確定性和懷疑，我們的一些真正面臨挑戰的競爭對手在我們 3 月宣布之後正在出售。但他們對我們有信心，我們很高興宣布獲勝，我們確實認為 Claro 內部也有大量土地和擴張。

Got it. And given the pushouts into Q2, where I'm assuming you might have a fair bit of visibility there, I know you reiterate an annual guide. But given, I think, you have a lot of -- potentially a lot of parts moving in the right direction in Q2, which is revenues up and expenses down, I wonder if you might be able to give us a little more color on what your expectations are here short term.

知道了。考慮到第二季度的推出，我假設你在那裡可能有相當多的知名度，我知道你重申了一份年度指南。但考慮到，我認為，你有很多 - 可能有很多部分在第二季度朝著正確的方向發展，即收入增加和支出減少，我想知道你是否可以給我們更多關於什麼的顏色您的期望是短期的。

Yes. So that is part of the success plan, revenue up, expenses down. I think in mid-March when we gave guidance for the year, we did guide that it was going to be second half weighted plan, but we've got good visibility given the high backlog we have entering the year. The big growth in deferred revenues on our balance sheet, which ultimately will flow into our top line revenues. Actually, a very strong sales pipeline across all 4 market segments: cable, CAD, cloud and RAN.

是的。所以這是成功計劃的一部分，收入增加，費用減少。我認為在 3 月中旬我們給出今年的指導時，我們確實指導這將是下半年加權計劃，但鑑於我們進入今年的大量積壓，我們有很好的知名度。我們資產負債表上遞延收入的大幅增長，最終將流入我們的收入。實際上，所有 4 個細分市場都有非常強大的銷售渠道：電纜、CAD、雲和 RAN。

The fact that we're going to start shipping our 4G/5G small cell radios in the second half pursuant to that closed contract. We also got some great expansion opportunities inside some of our largest customers. Again, we're having success with our land and expand cohort sales model that you're familiar with. So I mean, all those factors are going to combine to allow us, in our opinion, to attain that revenue guidance we provided. And candidly, we just got a very high single-digit million cable order from a major customer in North America this past week that will ship for revenue in the second half. So it's the combination of all those factors that allow us to have confidence in our annual top line and bottom line guidance.

事實上，我們將根據該封閉合同在下半年開始運送我們的 4G/5G 小型蜂窩無線電。我們還在一些最大的客戶內部獲得了一些巨大的擴張機會。同樣，我們在您熟悉的土地和擴展群組銷售模式方面取得了成功。所以我的意思是，在我們看來，所有這些因素都將結合起來，使我們能夠獲得我們提供的收入指導。坦率地說，上週我們剛剛從北美的一個主要客戶那裡收到了一個非常高的個位數百萬電纜訂單，該訂單將在下半年發貨以實現收入。因此，正是所有這些因素的結合讓我們對我們的年度頂線和底線指導充滿信心。

Okay. Great. And one last question for me. And you mentioned no Verizon revenue recognized. And I realize that's probably separate from cash. But despite that, you put up gross margins in the 40% range in the quarter. I guess, I don't know what a normalized quarterly Verizon contribution is or software contribution. But I guess my question is, if there is such a thing, what should that add to gross -- what should gross margins look like with a more normalized either Verizon or, if you want to say, Tier 1 cloud software contribution?

好的。偉大的。最後一個問題問我。你提到沒有確認 Verizon 收入。我意識到這可能與現金分開。但儘管如此，您還是將本季度的毛利率設定在 40% 的範圍內。我想，我不知道什麼是標準化的 Verizon 季度貢獻或軟件貢獻。但我想我的問題是，如果有這樣的事情，那應該增加毛利率——對於更規範化的 Verizon 或，如果你想說，一級雲軟件貢獻，毛利率應該是什麼樣的？

Yes. So in terms of the margin, it would probably be in the low 90s as a gross margin as a percent of revenue. From a GAAP 606 rev rec point of view, it's a little complex, but the margins on the cloud side are going to be very, very high.

是的。因此，就利潤率而言，毛利率佔收入的百分比可能在 90 年代左右。從 GAAP 606 rev rec 的角度來看，它有點複雜，但云端的利潤率會非常非常高。

We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further closing comments.

我們的問答環節已經結束。我想將發言權轉回去征求任何進一步的結束意見。

No, I guess to close up first. Thank you, everyone, for joining us today. Look, it's been a really busy few months at Casa and the whole team is working truly tirelessly to address the issues that were facing us, and we believe great progress has been made.

不，我想先關門。謝謝大家今天加入我們。看，這幾個月在 Casa 真的很忙，整個團隊都在不知疲倦地工作以解決我們面臨的問題，我們相信已經取得了很大進展。

As we enter Q2, we're bringing strong business momentum into the quarter. We're really pleased after a lot of late nights and hard work on the TSA announcement today. And with this term loan B cloud now moving away, we've also engaged Piper Sandler to assist us in assessing the potential for select noncore product line divestitures while we double down on cloud, cable and select access device offerings. And we'll continue to update everyone on our progress during the coming months with more press releases around customer wins and additions to the team that will be forthcoming soon.

隨著我們進入第二季度，我們為本季度帶來了強勁的業務勢頭。經過許多深夜和今天的 TSA 公告的辛勤工作，我們真的很高興。隨著貸款 B 雲這個期限的消失，我們還聘請了 Piper Sandler 協助我們評估剝離非核心產品線的可能性，同時我們在雲、有線和選擇接入設備產品上加倍努力。在接下來的幾個月裡，我們將繼續向每個人更新我們的進展情況，更多關於贏得客戶的新聞稿和即將發布的團隊成員。

So please stay tuned, and thank you for your continuing support and interest in Casa. Thank you, operator.

所以請繼續關注，感謝您一直以來對 Casa 的支持和興趣。謝謝你，運營商。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網絡廣播到此結束。您可以在此時斷開您的線路，並度過美好的一天。感謝您今天的參與。