Clearone Inc (CLRO) 2017 Q3 法說會逐字稿

Good morning, everyone, and welcome to the ClearOne 2017 Third Quarter Financial Results Conference Call. This call is being recorded.

各位早安，歡迎參加ClearOne 2017年第三季財務業績電話會議。本次電話會議正在錄音。

At this time, for opening remarks and introductions, I would like to turn the call over to the company's Investor Relations representative, Ms. Cathy Mattison of LHA. Ms. Mattison, please go ahead.

現在，我謹將電話轉交給公司投資人關係代表，LHA公司的凱西‧馬蒂森女士，請她致開幕詞並作介紹。馬蒂森女士，請開始吧。

Thank you, Tyron. Welcome, everyone, and thank you for joining us today for the ClearOne Third Quarter 2017 Results Conference Call. On the call today are Zee Hakimoglu, President and CEO; and Narsi Narayanan, Senior Vice President of Finance.

謝謝泰倫。歡迎各位，感謝各位今天參加ClearOne 2017年第三季業績電話會議。今天出席會議的有總裁兼執行長Zee Hakimoglu和財務高級副總裁Narsi Narayanan。

Please note this call is being broadcast live on the Internet at www.clearone.com, and the playback will be available for at least 3 months.

請注意，本次通話正在 www.clearone.com 網站上進行網路直播，重播將至少保留 3 個月。

Before we begin, I would like to make the cautionary statement and remind everyone that the information discussed on the call today is covered under the Safe Harbor provisions of the Litigation Reform Act. The company's discussion today will include forward-looking information reflecting management's current forecast of certain aspects of the company's future, and our actual results could differ materially from those stated or implied. Today, will -- Zee will open with the business update, then Narsi will follow up with a discussion of our financial results. We will then open the call for questions. Now it is my pleasure to turn the call over to Zee.

在會議開始之前，我想先提醒各位，今天電話會議中討論的資訊受《訴訟改革法案》安全港條款的保護。公司今天的討論將包含前瞻性訊息，反映管理層對公司未來某些方面的預測，而我們的實際業績可能與這些預測有重大差異。今天，Zee 將首先報告業務最新進展，然後 Narsi 將討論我們的財務表現。之後我們將開放提問環節。現在，我很高興將電話會議交給 Zee。

Thank you, Cathy, and good morning, everyone. In the third quarter, we delivered several sequential improvements.

謝謝凱西，大家早安。第三季度，我們陸續推出了一些改善措施。

Total revenue increases were driven by a large order that included a mix of video and just about every Pro-audio product we offered, demonstrating our total solution strategy. The percentage of CONVERGE Pro 2 in our professional audio revenue mix also increased. And video product revenue grew 56%, as we continue to capitalize on the migration to software-based videoconferencing application.

總收入成長主要得益於一筆大額訂單，該訂單涵蓋了視訊產品以及我們提供的幾乎所有專業音訊產品，充分展現了我們的整體解決方案策略。 CONVERGE Pro 2 在我們專業音訊收入組成中的佔比也有所提升。此外，視訊產品收入成長了 56%，這得益於我們持續把握向軟體視訊會議應用程式遷移的機會。

On a year-over-year basis, video grew 66%. As discussed on previous calls, the company is going through a major product transition and we knew it would take the better part of the year.

與去年同期相比，視訊業務成長了 66%。正如我們在之前的電話會議中討論的那樣，公司正在經歷重大的產品轉型，我們知道這將需要大半年的時間。

Trends, in our favor, include sequential revenue growth and increasing revenue contribution from video.

對我們有利的趨勢包括收入持續成長以及視訊收入貢獻不斷增加。

ClearOne's ability to anticipate and intercept market needs drives our success. To serve the growing demand for video collaboration and cloud-video services, we developed a sound video strategy to complement our foundation audio end point.

ClearOne之所以能夠取得成功，關鍵在於我們能夠預見並滿足市場需求。為了滿足日益增長的視訊協作和雲端視訊服務需求，我們制定了完善的視訊策略，以補充我們現有的音訊終端。

Our comprehensive portfolio of audio and video conferencing endpoints and peripherals offer compelling features, affordable prices and unified-solution capability.

我們全面的音訊和視訊會議終端及週邊設備產品組合提供引人注目的功能、實惠的價格和統一的解決方案能力。

In October, our complete solution garnered prestigious industry recognition. The 2017 Frost & Sullivan Award for converged audio and videoconferencing competitive strategy innovation and leadership.

10月份，我們的完整解決方案獲得了業內權威認可，榮獲2017年弗若斯特沙利文融合音頻和視頻會議競爭戰略創新與領導力獎。

This award cited ClearOne's diverse video collaboration product and services portfolio for its ability to cater to businesses of varying sizes, industries and technology requirements with a high degree of customization.

該獎項表彰了 ClearOne 多樣化的視訊協作產品和服務組合，因為它能夠高度客製化地滿足不同規模、行業和技術需求的企業的需求。

We believe our strategy gives customers the value they demand.

我們相信，我們的策略能夠為客戶帶來他們所需要的價值。

In summary, this industry validation of our product footprint reaffirms our belief that ClearOne is positioned to grow further and achieve larger customer mind share.

總之，此次產業對我們產品市場佔有率的驗證，再次印證了我們對 ClearOne 能夠進一步發展並獲得更大客戶認可的信念。

In addition, Frost & Sullivan's new analysis, Global Audio Conferencing Endpoints Market Forecast to 2021, which was published in October, found that ClearOne continues to lead the installed audio conferencing space, with a market share of 53.8% in 2016.

此外，Frost & Sullivan 於 10 月發布的新分析報告《2021 年全球音訊會議終端市場預測》發現，ClearOne 繼續在已安裝的音訊會議領域保持領先地位，2016 年的市佔率為 53.8%。

No other company offers the range of conferencing and collaboration solutions that we do across all platforms and for all vertical markets.

沒有其他公司能夠像我們一樣，在所有平台和所有垂直市場中提供如此全面的會議和協作解決方案。

ClearOne is the industry's only complete one-stop source for integrators and consultants to turn to for every installation requirement. To drive revenue growth, we are increasing our attention and resources to sales and marketing initiatives as we've stated before.

ClearOne是業界唯一能夠滿足整合商和諮詢顧問所有安裝需求的全面性一站式服務平台。為了推動營收成長，正如我們之前所說，我們將增加對銷售和行銷活動的投入和資源。

Our initiative includes focusing on smaller regional arenas, adding headcount to sales team for increased feet on the street and bringing on new regional channel partners to boost sales opportunity funnels. Our public relation's initiative on the marketing side has dramatically increased our exposure in the last few months alone, featuring ClearOne in dozens of industry publications, including some great success cases across all product lines.

我們的舉措包括專注於較小的區域市場，增加銷售團隊人手以拓展業務，並引入新的區域通路合作夥伴以增加銷售機會。在過去幾個月裡，我們的公關活動顯著提升了市場曝光度，ClearOne 已在數十家行業刊物上亮相，其中包括涵蓋所有產品線的眾多成功案例。

Our new 35-foot touring van will soon be crisscrossing the United States, making possible live demonstrations of ClearOne's full-line of conferencing, collaboration and streaming solutions to AV integrators, consultants and their end-user who can't always get to larger trade shows and conferences to see and hear our products.

我們新購置的 35 英尺巡迴展車即將穿梭於美國各地，為 AV 整合商、顧問及其最終用戶提供 ClearOne 全系列會議、協作和串流媒體解決方案的現場演示，使他們能夠親身體驗我們產品的功能，而無需前往大型貿易展覽會和會議現場觀看和聆聽。

In conjunction with the touring van as we mentioned, we will be launching our brand-new website that is redesigned and organized to more effectively showcase our comprehensive solutions and services. With its modern look and feel, it will be optimized for partners and customers to easily find the information they need.

正如我們之前提到的巡迴宣傳車，我們將同時推出全新網站。該網站經過重新設計和佈局，旨在更有效地展示我們全面的解決方案和服務。憑藉其現代化的外觀和流暢的用戶體驗，我們將優化網站，方便合作夥伴和客戶輕鬆找到所需資訊。

During Q3, we began shipping some new video and audio products to complement our existing lineup. We expanded the capabilities of our media collaboration Pro-1 solutions by offering native compatibility with Skype for business available through an optional software upgrade.

第三季度，我們開始發售一些新的視訊和音訊產品，以完善我們現有的產品線。我們擴展了媒體協作解決方案 Pro-1 的功能，使其能夠透過選購的軟體升級，原生相容 Skype for Business。

The native Skype for Business option makes COLLABORATE Pro the most versatile video-collaboration system on the market today for any workplace. We began shipping our new COLLABORATE Versa 150 that delivers ease of connectivity for BYOD or bring your own collaboration in huddle spaces and meeting rooms.

COLLABORATE Pro 內建 Skype for Business 功能，使其成為目前市場上適用於任何工作場所的最通用的視訊協作系統。我們已開始發售新款 COLLABORATE Versa 150，它可輕鬆連接 BYOD 設備，方便用戶在小型會議室和大型協作空間中進行協作。

The Versa 150 significantly enhances the audio and videoconferencing experience of PC-based applications such as GoToMeeting, Hangouts, Skype for Business, our own Spontania, WebEx and other, and includes a ClearOne camera, ClearOne speakerphone and ClearOne USB hub.

Versa 150 顯著增強了基於 PC 的應用程式（如 GoToMeeting、Hangouts、Skype for Business、我們自己的 Spontania、WebEx 等）的音訊和視訊會議體驗，並包含 ClearOne 相機、ClearOne 揚聲器和 ClearOne USB 集線器。

Also during the quarter, we began shipping the UNITE 150 USB camera, an economical USB only addition to our professional-grade camera lineup for PC-based applications only.

本季度，我們也開始販售 UNITE 150 USB 相機，這是一款經濟實惠的 USB 相機，是我們專業級相機產品線中專為 PC 應用而設計的又一力作。

On the Pro-audio front, we began shipping additional models of our new CONVERGE Pro 2 platform as well as a new wireless microphone system. We began shipping the 2 new CONVERGE Pro 2 DSP mixers in Q3.

在專業音訊方面，我們開始發售更多型號的全新 CONVERGE Pro 2 平台以及一款全新的無線麥克風系統。我們已於第三季開始販售兩款全新的 CONVERGE Pro 2 DSP 混音器。

One new model addresses Pro-audio conferencing needs for smaller scaled rooms using VoIP connectivity and the other addresses the need to easily and economically increase the number of microphones in a conferencing room.

其中一款新型號利用 VoIP 連接滿足小型會議室的專業音訊會議需求，另一款則滿足輕鬆經濟地增加會議室麥克風數量的需求。

A touch panel controller designed exclusively for the CONVERGE Pro 2 platform also started shipping in Q3. The controller provides the simplest intuitive interface to manage and control conference calls for environments that don't need expensive and highly-complex control systems.

專為 CONVERGE Pro 2 平台設計的觸控面板控制器也於第三季開始出貨。該控制器提供最簡單直觀的介面，用於管理和控制無需昂貴且高度複雜的控制系統的環境中的電話會議。

Finally during Q3, also to ship was the DIALOG 20, a compact 2-channel wireless microphone system that empowered smaller venues on smaller budgets such as training rooms, presentation venues and offices.

最後，在第三季度，還推出了 DIALOG 20，這是一款緊湊型 2 通道無線麥克風系統，可為預算較小的場所（如培訓室、演示場所和辦公室）提供支援。

This system conveniently uses the unlicensed 2.4 gig frequency band. These new products are significant additions to our Pro-Audio and video platforms that will drive adoption and growth by offering additional unbeatable options to outperform in any size room, any conferencing environment and any application.

該系統便捷地使用了免許可的 2.4 GHz 頻段。這些新產品是我們專業音訊和視訊平台的重要補充，它們將提供更多無與倫比的選擇，在任何大小的房間、任何會議環境和任何應用場景下都能表現出色，從而推動市場普及和成長。

We remain very confident in our product set, which continues to receive awards and market recognition. Going into the fourth quarter, we are confident 2018 will shape up to be a better year.

我們對我們的產品組合依然充滿信心，這些產品不斷獲得獎項和市場認可。展望第四季度，我們相信2018年將會是更好的一年。

Now I'll call -- turn the call over to Narsi.

現在我來打電話──把電話轉給納爾西。

Thank you, Zee, and good morning, everyone. So before I begin, I would like to note that I will be discussing certain non-GAAP financial measures. The reconciliation is included in our earnings release that went out this morning.

謝謝Zee，大家早安。在開始之前，我想先說明一下，我將討論一些非GAAP財務指標。相關調整表已包含在我們今天早上發布的盈利報告中。

Now I will turn to our financial results for the third quarter of 2017. Net revenue was $10.6 million compared to $12.9 million in Q3 2016 and $10.3 million in Q2 2017. Reviewing the year-over-year change in percentage of revenue by region.

現在我將介紹我們2017年第三季的財務表現。淨收入為1060萬美元，而2016年第三季為1290萬美元，2017年第二季為1030萬美元。以下我們將按地區回顧收入佔比的同比變化。

The Asia-Pacific including the Middle East, increased 43%; Europe and Africa decreased 3% and Americas decreased 37%.

亞太地區（包括中東）成長了 43%；歐洲和非洲下降了 3%；美洲下降了 37%。

Reviewing the year-over-year revenue change in percentage by product category. Video increased 66%, professionally decreased 30%, and UC endpoints declined 25%.

依產品類別分析年收入變化百分比。視訊產品成長 66%，專業產品下降 30%，統一通訊終端下降 25%。

Non-GAAP gross profit margin was 62% compared to 62% in Q3 2016 and 59% in Q2 2017.

非GAAP毛利率為62%，與2016年第三季的62%和2017年第二季的59%相比，差距顯著。

Sequential improvement in gross margin was largely due to higher than usual gross margin from the large order that was fulfilled in Q3 2017.

毛利率環比改善主要歸功於 2017 年第三季完成的大訂單帶來的高於平常的毛利率。

Non-GAAP operating expenses were $6 million compared to $5.5 million. Most of this increase was from increased sales and marketing and R&D spending, offset partially by reduced G&A expenses.

非GAAP營運費用為600萬美元，去年同期為550萬美元。這一增長主要來自銷售、行銷和研發支出的增加，部分被一般及行政費用的減少所抵銷。

Based on the results of the company's recent impairment analysis triggered by the fall in the company stock price and recent financial performance, the company determined that the entire goodwill and intangible assets, some portion of intangible assets were impaired and recognized impairment charges amounting to $13.4 million. Non-GAAP operating income in Q3 2017 was $526,000 compared to non-GAAP operating income of $2.5 million in Q3 2016. The bulk of this change was due to reduced revenue and gross margin.

鑑於公司股價下跌及近期財務業績不佳，公司開展了減值分析，並據此確定全部商譽和無形資產以及部分無形資產已發生減值，確認減值費用1340萬美元。 2017年第三季非GAAP營業收入為52.6萬美元，而2016年第三季為250萬美元。此項變化主要歸因於收入和毛利率的下降。

Non-GAAP net income was $766 -- $760,000 or $0.09 per diluted share compared to non-GAAP net income of $2 million or $0.22 per diluted share in Q3 2016. Non-GAAP adjusted EBITDA was $743,000 compared to $2.7 million.

非GAAP淨利為766美元至760,000美元，即每股攤薄收益0.09美元，而2016年第三季非GAAP淨利為200萬美元，即每股攤薄收益0.22美元。非GAAP調整後EBITDA為743,000美元，而2016年第三季為270萬美元。

Now turning to our financial results for the 9 months ended December 30, 2017. Please note the following comparisons refer to first 9 months of 2017 versus the first 9 months of 2016.

現在來看看截至 2017 年 12 月 30 日的 9 個月的財務表現。請注意，以下比較是指 2017 年前 9 個月與 2016 年前 9 個月的比較。

Net revenue decreased to $32.5 million from $37.9 million. Non-GAAP net income was $807,000 or $0.09 per diluted share compared to non-GAAP net income of $5.2 million or $0.55 per diluted share for the prior period.

淨收入從 3,790 萬美元降至 3,250 萬美元。非 GAAP 淨利潤為 80.7 萬美元，即每股攤薄收益 0.09 美元，而上一期間的非 GAAP 淨利潤為 520 萬美元，即每股攤薄收益 0.55 美元。

Non-GAAP adjusted EBITDA was $1.7 million compared to $7.7 million.

非GAAP調整後的EBITDA為170萬美元，去年同期為770萬美元。

Turning to the balance sheet. We continue to be very strong. Cash, cash equivalents and investments were $23.4 million compared to $38.5 million at December 31, 2016, still without any debt. The significant portion of this decrease can be attributed to patent-litigation expenses, share repurchases, dividend payments and higher investment in inventory related to the new CONVERGE Pro 2 platform and wireless microphones, which is expected to flow back into cash in 2018.

接下來看一下資產負債表。我們的財務狀況依然非常穩健。截至2018年12月31日，現金、現金等價物及投資總額為2,340萬美元，而2016年同期為3,850萬美元，且公司仍無任何債務。這一顯著下降主要歸因於專利訴訟費用、股票回購、股息支付以及與新型CONVERGE Pro 2平台和無線麥克風相關的庫存增加投資，預計這些投資將在2018年轉化為現金。

During the quarter, we continued our shareholder-friendly actions. We repurchased approximately 140,000 shares for a $1.1 million, bringing the total to 976,000 shares for $10.2 million, since the program commenced in March 2016 and was renewed and extended by the board in March 2017.

本季度，我們持續推行有利於股東的舉措。我們以110萬美元的價格回購了約14萬股股票，使自該計劃於2016年3月啟動並於2017年3月經董事會續簽和延長以來，回購股票總數達到97.6萬股，總金額達1020萬美元。

We intend to continue to repurchase our shares in the open market, subject to price, volume and other Safe Harbor restrictions. Also, the company paid a cash dividend of $0.07 per share for Q3 2017. And now I will turn the call back to Zee.

我們計劃繼續在公開市場回購公司股票，但須遵守價格、數量和其他安全港規則的限制。此外，該公司已派發2017年第三季每股0.07美元的現金股利。現在，我將把電話轉回給Zee。

Thank you, Narsi. We are pleased our product transition delivered favorable trends in the third quarter.

謝謝你，納爾西。我們很高興看到產品轉型在第三季取得了良好的發展趨勢。

As I noted, we remain very confident in our product set and we are confident in our prospects for 2018. Operator, please call -- open the call for questions.

正如我之前提到的，我們對我們的產品組合仍然非常有信心，並且對2018年的前景充滿信心。接線員，請接聽電話－開始提問。

(Operator Instructions) Our first question is from Kara Anderson of B. Riley.

（操作說明）我們的第一個問題來自 B. Riley 公司的 Kara Anderson。

Just wondering if you can talk about any implications to operating expenses from, I guess, the increase in attention to marketing going forward versus the $6 million in OpEx you saw in Q3.

我想問一下，與第三季 600 萬美元的營運支出相比，未來對行銷的重視程度增加會對營運費用產生哪些影響？

Yes. We're going to be, of course, very vigilant in our spending in sales and marketing and as we have been. We didn't expect an increase of greater than 20% throughout the year in that area and have been trying to stick to that framework.

是的。我們當然會像以往一樣，對銷售和行銷方面的支出保持高度警覺。我們預計全年該領域的支出成長不會超過20%，並且一直努力堅持這個框架。

Okay. And then, I think you're now 2 full quarters in with CP2. Can you talk about how the sales cycle is shaping up relative to your internal expectations? And then second to that, how the overall quarter performed relative to what you had expected?

好的。現在CP2專案已經進行了兩個完整的季度了。能否談談銷售週期與內部預期相比進展如何？其次，本季整體業績與預期相比如何？

Okay. What we're seeing is more opportunities where we had participated in tenders and quotes. We see -- in fact, what we see is really that the CP1 product interest is diminishing clearly. The CP1 is -- the CP2 is getting quoted in more opportunities and some of them are important opportunities for us. And so, we see a nice pipeline. Also, the consultants, now that we have the complete suite and have made significant additions to our software features and have added even some of the products that we just introduced in Q3, which are important on an overall job, we see good interest from many of the consultants in the industry. I would say also, that we see improvement in various regions. We could speak about the various regions which had faster adoptions than others. We still have particular regions that we think there's more to do and we understand the prospect and we're working on those by making adjustments as we need to. So while not every region has the same level of progress, I would say -- overall, we're seeing good progress on the CP2 adoption and interest.

好的。我們看到，在我們參與投標和報價的項目中，機會越來越多。事實上，我們看到CP1產品的需求明顯下降。 CP2在更多項目中被報價，其中一些對我們來說非常重要。因此，我們看到了一個不錯的項目儲備。此外，由於我們擁有完整的產品套件，並且對軟體功能進行了重大改進，甚至包括我們在第三季度推出的一些對整體項目至關重要的產品，我們看到業內許多諮詢顧問都表現出了濃厚的興趣。我還想說，我們看到各個地區的進展都在改善。我們可以談談哪些地區的採用速度較快。我們仍然認為某些地區還有很多工作要做，我們了解這些地區的市場前景，並根據需要進行調整。因此，雖然並非每個地區的進展都相同，但我認為——總體而言，我們看到CP2的採用和需求都在穩步增長。

And then, why were the prepaid expenses up so much in Q3 over Q2?

那麼，為什麼第三季的預付費用比第二季增加了這麼多？

Actually, it's not prepared expenses, it's the big write off with goodwills has given us deferred tax assets. So it's right now included in that category, prepaid expenses and other assets. When we do our end Q, you will see it's properly broken out and put in its own spot with deferred tax of -- we got all these confirmations very recently. So we could not get it into the balance sheet before that. It's mostly deferred tax assets.

實際上，這並非已準備好的費用，而是商譽的大額減損產生了遞延所得稅資產。因此，目前它被計入「預付費用及其他資產」類別。當我們編制季度末報表時，您會看到它已被正確拆分，並單獨列示在遞延所得稅項下－我們最近才收到所有確認文件。因此，在此之前我們無法將其納入資產負債表。它主要屬於遞延所得稅資產。

Got that. And then I apologize if I missed this discussion around the inventory bump. But it was up again? And I think on the last call, you had expectations for that to come down over -- at the time, I think it was the next 6 months. Can you talk about what's changed?

明白了。如果我錯過了關於庫存激增的討論，我深表歉意。庫存又上漲了嗎？我記得上次電話會議上，您預計庫存將在接下來的六個月內下降。能談談發生了什麼變化嗎？

Yes. I think it's -- we made attempts to get the forecast revised and our pipeline with the suppliers changed. But we found out it's going to cost us quite a bit, both in terms of the margins as well as our relationship with the suppliers. So we have decided to go with the original forecast and for the sake of profitability and also for other qualitative reasons. We have commitments till January 2018. And so, our inventory will likely go up in Q4, but it's not going to go up significantly. It'll go up. But starting Q1 2018, it'll start going down, actually. And over 2018, we will see the cash coming back actually. It would be -- to the tune up our at least $2 million a quarter, it'll come back. And all these things significantly depending on our revenue growth actually. And we're hopeful that 2018 will be much better year in terms of all these new products that we have introduced and it's going to reduce the pressure on our inventory, that's one. The second thing is, whenever we introduced new products, like something as big as CP2, we have to be prepared. And in fact it was our long-term commitments and especially, you might have heard about all the recent spectrums in the -- especially with the semiconductor market. The anti-electronics supply chain have been facing quite a bit of imbalance between the capacity built versus the demand. Even simple things like the SSD hard drives and memory, it's taking a longer time to fulfill. And since we are not like Intel or Cisco who can demand whatever they want. We have to play by the rules. And the rules require us to place these orders well in advance. So we can get it on time and get the products available on the shelf actually. So it would be -- we are cautious, we have cash. So -- and we're cautious about making the products available with all the new products introduced. We have to be cautious about having enough inventory for a possible uptick. And I think 2018, we hope that this will all be returned back into cash.

是的。我們嘗試修改預測並調整與供應商的供貨管道，但發現這樣做會讓我們付出相當大的代價，無論是利潤率還是與供應商的關係。因此，我們決定維持原有的預測，這不僅是為了獲利，也是出於其他一些定性原因。我們有訂單要到2018年1月才到期。所以，我們的庫存可能會在第四季增加，但不會大幅成長。庫存會增加，但從2018年第一季開始，實際上會開始下降。而且在2018年全年，我們的現金流將會回升。至少每季會有200萬美元的現金回升。所有這些都很大程度取決於我們的收入成長。我們希望2018年會更好，因為我們推出的所有新產品都會減輕庫存壓力，這是一方面。第二點是，每當我們推出像CP2這樣的大型新產品時，我們都必須做好準備。事實上，這關係到我們的長期承諾，尤其是您可能已經聽說過的，最近半導體市場的情況。電子供應鏈一直面臨產能與需求嚴重失衡的問題。即使是像固態硬碟和記憶體這樣簡單的產品，交貨時間也越來越長。我們不像英特爾或思科那樣可以隨心所欲，我們必須遵守規則。而規則要求我們提前下單，這樣才能確保及時到貨，讓產品真正上架。所以，我們很謹慎，我們有足夠的現金儲備。因此，在推出所有新產品後，我們都非常謹慎地確保產品供應充足。我們必須謹慎地儲備足夠的庫存，以應對可能的需求成長。我希望到2018年，這一切都能轉化為現金流。

The next question is from Lisa Springer of Singular Research.

下一個問題來自 Singular Research 的 Lisa Springer。

I wanted to ask you about. Are you seeing sales of CP1 wind down in favor of CP2? Or was it still a large percentage of the revenue mix during Q3?

我想問一下，您是否觀察到CP1的銷售量正在逐漸下降，而CP2的銷售量正在上升？或者說，CP1在第三季仍然佔據了很大的收入比例？

It's still going up, CP2 [] combination. The percentage in the mix is going up actually. And as I speak today, we're looking at Q4 results so far. And it's going up significantly, actually. The mix is going up actually, yes.

CP2組合的比例還在上升。實際上，它在產品組合中的佔比確實在上升。就在我今天發言的時候，我們正在查看第四季度迄今為止的業績。而且，它確實在顯著上升。是的，產品組合的比例確實在上升。

Okay. And you had a nice reduction in Q&A expenses for the quarter. How should we think about Q&A going into the fourth quarter?

好的。你們本季的質檢費用有了不錯的下降。那麼，我們該如何看待第四季的質檢工作呢？

You're talking about G&A, right?

你指的是一般及行政費用，對吧？

Yes, G&A, right.

是的，一般及行政費用，對吧。

Yes, we don't expect any significant increase. Further reduction, I think, it should stabilize between the non-GAAP amount of $800 to $1 million dollars. And I think we have been pretty much under that this year, and it will continue actually.

是的，我們預計不會有大幅成長。我認為，進一步下降後，非GAAP金額應該會穩定在800美元到100萬美元之間。而且我認為，今年我們一直都低於這個水平，而且這種情況還會繼續下去。

Okay, good. And is there anything new to update us with regarding the litigation?

好的，明白了。關於訴訟方面，有什麼新的進展需要告知我們嗎？

We -- I would say that we continue to make progress on the litigation. We're doing all the things under advisement of our -- I would say excellent litigation team. And we're doing everything we can to protect the interest of the shareholders. As I've said before, we have a good litigation track record and we have our eyes wide open and we anticipate and hope that it will ultimately benefit the company.

我想說，我們在訴訟方面持續取得進展。我們正按照我們優秀的訴訟團隊的建議進行各項工作。我們正在竭盡所能保護股東的利益。正如我之前所說，我們擁有良好的訴訟記錄，我們時刻保持警惕，並期待最終這將有利於公司。

Our next question is from Dennis Van Zelfden of Brazos Research.

我們的下一個問題來自 Brazos Research 的 Dennis Van Zelfden。

What were the litigation expenses in the quarter and year-to-date?

本季和年初至今的訴訟費用是多少？

I don't have the year-to-date numbers handy. But the litigation expenses for patents that we capitalized this quarter in Q3 were $845,000 actually.

我手頭上沒有年初至今的具體數據。但實際上，我們本季（第三季）計入資本的專利訴訟費用為 84.5 萬美元。

That's all in 1 quarter?

所有這些都在一個季度內完成？

Yes.

是的。

Okay. It's a big number. What's left on your buyback program?

好的，這個數字很大。你們的回購計畫還剩下多少？

It's about $4 million is left actually.

實際上還剩下大約400萬美元。

Okay. Zee, we're all aware of the negative impact of the product transition on revenue. Can you quantify if there is any, the impact on revenue from your competitors infringing on your patents?

好的。 Zee，我們都知道產品轉型會對營收產生負面影響。你能量化一下，如果競爭對手侵犯了你的專利，會對收入造成什麼影響嗎？

It's a good question, and I couldn't share that. That is under the review of our attorneys. But certainly, we would not be litigating unless we felt that there was an impact and there is an impact. We're competing against our own patented technology, which is unfortunate. And we're going to do what we feel we need to do properly, manage our expenses and protect the interest of the company and its shareholders. Patents are there for a reason and we respect the system and we're going to go to court and we are in court to try to defend our intellectual property.

這是一個很好的問題，但我無法透露詳情。此事正在由我們的律師審查。但可以肯定的是，除非我們認為此事造成了影響，否則我們絕不會提起訴訟，而事實的確如此。我們不得不與自己擁有專利的技術競爭，令人遺憾。我們將採取一切必要的措施，妥善管理支出，維護公司及其股東的利益。專利制度的存在自有其道理，我們尊重法律體系，我們將訴諸法庭，捍衛我們的智慧財產權。

Okay. Someone else had mentioned that you're about 2 quarters into the product transition. And if I remember correctly, you guys have said and on past calls, that it normally takes somewhere between 2 and 4 quarters on a typical product transition to return, for the new product to take over the revenue decline of the old product. Do you still see that? i.e. in about 2 quarters? Or a maximum, maybe in 2 quarters, we're going to return to growth?

好的。之前有人提到你們的產品過渡已經進行了大約兩個季度。如果我沒記錯的話，你們在之前的電話會議上說過，通常情況下，產品過渡需要兩到四個季度才能恢復，新產品才能彌補舊產品帶來的收入下滑。你們現在仍然這麼認為嗎？也就是說，大概兩個季度？或者最多兩個季度，我們就能恢復成長？

We're looking at 2018 for growth. And to speak about the transition, in fact, we did not appreciate the extent that the differences in the CP2 and the CP1 would -- how it would impact as it did. We knew that there would be an impact. We did a design, which on the bright side was very impactful. It is extremely modern, very effective, has many new features and functionalities and addresses the needs of the market. So we're pleased that we really took a leap in the next generation. But at the same time, we underestimated the transition, but we're pleased with the changes we made. Our goal and our survival and our growth is based on offering the best audio-conferencing performance. And if it takes a bit longer to get the products in the channel then we have to bear and grin it, and that's what we're doing now. We're getting good feedback. The channel likes it. They're going through training, they love it, but they got to spec it in. And the reality is, today, we have many more competitors. It's an attractive market, people want to displace ClearOne. They want to do it rather by taking our technology or they want to get in and get into our market. And we're going to just have to spend a little more time and effort, both with excellence in products, excellence in sales and markets to defend our territory and see growth. Technology is not an easy game. But I think, we've proven that we can play it and win.

我們期待2018年能實現成長。說到產品升級，事實上，我們並沒有預料到CP2和CP1之間的差異會如此之大——影響如此之大。我們知道會有影響，也確實進行了設計，而且效果顯著。新設計非常現代化，非常高效，擁有許多新功能，並且滿足了市場需求。因此，我們很高興在下一代產品中實現了真正的飛躍。但同時，我們也低估了產品升級的難度，不過我們對所做的改變感到滿意。我們的目標、生存和發展都基於提供最佳的音訊會議效能。如果產品進入通路需要更長時間，我們也必須接受並克服困難，而這正是我們現在正在做的。我們收到了良好的回饋。通路合作夥伴很喜歡這款產品。他們正在接受培訓，他們很喜歡它，但他們需要將其納入採購計劃。而現實情況是，如今我們面臨更多的競爭對手。這是一個充滿吸引力的市場，人們都想取代ClearOne。他們要么想竊取我們的技術，要么想直接進入我們的市場。我們需要投入更多的時間和精力，在產品、銷售和市場拓展方面都做到精益求精，才能捍衛我們的立場並實現成長。科技業競爭激烈，但我認為，我們已經證明我們有能力在這個行業中取得成功。

Okay. So you're not kind of pinpointing a particular quarter in 2018 when we can expect a return to growth, just sometime during 2018?

好的。所以您並不是具體指出2018年哪個季度會恢復成長，只是說2018年期間的某個時間點會恢復成長？

I would hesitate to pick a time on a quarter. And I wish I could see a quarter. And if I could pinpoint, I might even share it with you. But it's a complex business, it's based on quotes, long-term projects, large and small and it's very difficult at this point to point to a particular quarter. But we're seeing good quoting activity and that's always a nice indicator.

我不太願意具體指出是哪個季度。我也很希望能夠確定一個季度。如果可以的話，我甚至可能會和你們分享。但這行業務很複雜，它是基於報價、長期專案（無論大小），所以目前很難指出具體是哪個季度。不過，我們看到報價活動很活躍，這始終是一個好兆頭。

(Operator Instructions) We have a question from Michael Kay of Kay Associates.

（操作說明）我們收到來自 Kay Associates 的 Michael Kay 的一個問題。

Good -- is there any -- do you see any light at the end of the litigation tunnel. I mean how long has it been going on? And is there a possibility that if ClearOne is victorious, there could be significant damages awarded to ClearOne?

很好——你覺得這場訴訟有希望結束嗎？我的意思是，這場訴訟已經持續多久了？如果ClearOne勝訴，是否有可能獲得巨額賠償？

I -- okay. I think in terms of how long we've been involved, we can probably clearly say that since we got notice that the patent will issue from the U.S. PTO, we began our activity in whole. And I don't recall the exact date, but it was certainly last quarter when we -- or was the quarter before...

我——好的。就我們參與的時間而言，我們可以很肯定地說，自從收到美國專利商標局的專利申請通知後，我們就全面開始了相關工作。我不記得確切的日期了，但肯定是在上個季度——或者更確切地說是上個季度…

2016.

2016年。

2016. The end of 2016 is when we began the litigation process. And part of the litigation and how it will roll out, it's dependent on the other side. We have control of our approach and our strategy and what we need and want and the other side has a big impact on the control of what they will do. So we have part of the control, but part of it, we don't have and so we will do our best to manage the expenses and manage the litigation and we've always done that. And of course, assuming that we are victorious and we're looking towards being victorious, there will be consequences to have infringed on our patents, because we have given early warning and they are aware of our objection. And certainly we expect to be compensated for any and all of the business loss in addition to other perhaps intangibles that lawyers will look at.

2016年底，我們啟動了訴訟程序。訴訟的進展和方式部分取決於對方。我們掌控自己的策略和方法，以及我們的需求和願望，而對方的行動則對我們有著很大的影響。因此，我們擁有部分控制權，但也有部分控制權不在我們手中。我們會盡力控制訴訟費用，並妥善處理訴訟事宜，我們一直都是這樣做的。當然，假設我們最終勝訴（我們也確實希望勝訴），那麼侵犯我們專利的行為必將承擔後果，因為我們已提前發出警告，對方也了解我們的異議。我們當然希望獲得賠償，包括所有商業損失，以及律師可能會考慮的其他一些無形損失。

Are these much of those that are infringed on the patents? So they're much larger companies with much greater resources than ClearOne. So they could really draw it out through the litigation?

這些是專利侵權案件中被侵權的公司數量嗎？這些公司規模更大，資源更豐富，比ClearOne公司大得多。所以他們完全可以透過訴訟拖延時間？

Yes. In fact, they are. And some of them are older companies and certainly, they're larger and private as it turns out as well and less under the lens of their litigation expenses of course. And so -- but we've been in litigation before with large parties and have been victorious. And we will work this one as best as we can. And I think we're making good progress.

是的，的確如此。而且其中一些是老牌公司，規模也更大，事實證明它們都是私人企業，當然，它們的訴訟費用也較少受到關注。所以——但我們之前也和大型訴訟方打過官司，而且都贏了。我們會盡力處理好這次的案子。我認為我們進展順利。

And also, what's been the trend in international sales, especially in Asia, China? Do you see that as an important and growing markets for your products?

此外，國際銷售趨勢如何，尤其是在亞洲和中國？您認為這些市場對您的產品而言是否重要且不斷成長？

Yes, of course. We have had a consistent 30%-plus market share from outside North America. And it's about 40% outside the U.S. as a whole. And India, Middle East, China, these markets have been pretty important and we have been focusing on it, yes.

當然。我們在北美以外的市佔率一直穩定在30%以上。而在美國以外整體市場，我們的市佔率約為40%。印度、中東、中國，這些市場都非常重要，我們也一直非常重視這些市場。

Okay. And you think it will be prudent to either cut back or eliminate the buyback program, given the results of the Q3? And also the expenses involved in litigation so that you could protect the dividend?

好的。鑑於第三季的業績，您認為削減或取消股票回購計畫是否明智？同時，考慮到訴訟費用，為了保障股息，您又該如何考慮？

I would say that of course, the board continues to have high confidence in the products and how well they've been received and confidence in the team. So they've committed to the repurchase program and the dividend. And of course, it is actively reviewed as it should be. So we have -- the board has decided that we're going to continue with that. Was there a question on the litigation, I...

當然，董事會仍對產品及其市場反應充滿信心，也對團隊充滿信心。因此，他們承諾繼續執行股票回購計劃和分紅計劃。當然，這些計劃也正在按部就班地進行審查。所以，董事會已經決定繼續執行這些計畫。關於訴訟方面的問題，我…

No.

不。

Expense?

費用？

Yes, it seems the litigation is very expensive, so you know not to put pressure on the balance sheet.

是的，訴訟費用似乎非常高昂，所以你知道不能給資產負債表帶來壓力。

Right. And we watch the balance sheet and watch our expenses, and we will make the appropriate decisions. But at this time, we feel that we have sufficient cash to exercise friendly actions such as these to our existing shareholders.

沒錯。我們會密切注意資產負債表和各項支出，並做出相應的決策。但目前，我們認為我們擁有充足的現金，可以對現有股東採取此類友好措施。

Our next question is from Alan Mitrani of Sylvan Lake.

我們的下一個問題來自錫爾萬湖的艾倫·米特拉尼。

Were you talking about 2018 being the year of growth? I mean it's pretty clear, you've lost almost $18 million of revenue in a couple of years. So $16 million of revenue couple of years. So at some point, of course you need to grow. So my question is, can you size that growth for us? Give us a sense of where it is? Are the legacy products close to hitting rock-bottom? And I saw you lost 30% year-over-year in your professional area, it is the largest business you have. I mean at what point does this end and we can grow from? And what kind of growth rates are you talking about?

您之前說2018年是成長之年嗎？我的意思是，很明顯，你們在短短幾年內就損失了近1800萬美元的收入。也就是說，短短幾年就損失了1,600萬美元的收入。所以，你們當然需要成長。我的問題是，您能給我們估算一下成長規模嗎？讓我們了解一下成長情況？你們的傳統產品是否已經接近谷底？我還看到你們在專業領域（你們最大的業務）的年收入下降了30%。我的意思是，這種情況什麼時候才能結束，我們才能開始成長？您說的成長率是多少？

Narsi, you want to get into the detail.

納爾西，你想深入了解細節。

So yes, we don't have a crystal ball on when exactly it will turnaround. But based on the feedback that we are getting from the field and also all the upgrades and improvements we have done, based on customer feedback on what we have already released, the things like paper business that we have added, it's going to increase the space that we're going to play with our professional. And it's -- we still have the highest market share actually. You must have seen from the press release. Yes, it's still above 50% worth actually. So everybody's suffering, it's not just us actually. So with our transition happening at the same time, it's affecting us much more than even if the financials of other guys actually. But we're not resting in the fact that others are suffering, you have to put up with those, actually. We're doing everything that we can. And especially, focusing on sales and marketing side to be razor sharp on each region, maybe we can get the best out of the team. So we are doing everything on the product side, on the channel side, on the marketing side. And in professional, we think it'll have -- it has hit the bottom, and it should only go up actually. And we also have the other piece, which is the video, which has been growing consistently and in a sizable way. Even this large order we talked about is dominated by video, actually. And we can't have this kind of big orders or opportunities if we did not have the total solution strategy that we talked about actually. We need to have all the products to be able to play in this big products actually. So 2018 should be better. We don't give guidance. I hope it would be at least to go back to 2016, actually.

所以，是的，我們無法準確預測何時才能扭轉局面。但根據我們從第一線收集到的回饋，以及我們所做的所有升級和改進，包括客戶對我們已發布產品的回饋，以及我們新增的紙張業務等，這將擴大我們專業領域的發展空間。而且——實際上，我們仍然擁有最高的市場份額。您應該已經從新聞稿中看到了。是的，我們的市佔率仍然超過50%。所以，大家都在受苦，並非只有我們一家。由於我們的轉型正與此同步進行，因此它對我們的影響遠大於其他公司的財務狀況。但我們不會因為其他公司遭受損失而氣餒，事實上，我們必須承受這些損失。我們正在竭盡所能。尤其是在銷售和行銷方面，力求在每個地區都做到精益求精，或許我們能夠最大限度地發揮團隊的潛力。因此，我們在產品、通路和行銷方面都在全力以赴。在專業領域，我們認為它已經觸底反彈，而且實際上只會繼續成長。此外，視訊業務也一直在穩步成長，而且成長勢頭強勁。事實上，我們之前提到的那筆大訂單也主要來自影片。如果我們沒有之前提到的整體解決方案策略，就不可能獲得如此大的訂單和機會。我們需要所有產品線才能參與這些大項目。所以2018年應該會更好。我們不做業績預測。我希望至少能恢復到2016年的水準。

Okay, I appreciate that. And then on video. Out of the $32.5 million of revenue so far this year. How much of it is video? What percent, roughly?

好的，謝謝。接下來是關於影片方面。今年迄今的3,250萬美元收入中，影音收入佔多少？大概佔多少百分比？

Video is, here it. Video year-to-date percentage is 18%, actually.

影片內容就在這裡。今年迄今為止，影片內容佔比實際上為 18%。

18%.

18%。

18%.[]

18%。

18%, okay. And on the big award, you said it impacted your margins, it was better than corporate gross margins. Can you give us a sense of how big that is, it was in the millions I assume? Is that...

18%，好的。關於那項大額獎金，您說過它影響了您的利潤率，甚至高於公司毛利率。您能大概說說金額有多大嗎？我猜是數百萬美元吧？是嗎…

Yes, we don't want to reveal exactly by project. It's confidential information.

是的，我們不想透露具體項目名稱，這是機密資訊。

It's not unusual here to what we call a bluebird, we get them periodically. We would consider this one a bluebird and we wanted to disclose that, that we did get a bluebird. And it's not one a lifetime. It happens throughout the year and it came in at an optimal time with a nice mix of our total solution.

我們這裡常常能看到藍鳥，我們稱之為藍知更鳥。這隻是藍知更鳥，我們想說明一下，我們確實看到了一隻藍知更鳥。而且這並非一生難得一見，它一年四季都會出現，這次它來得正是時候，正好趕上我們整體解決方案的完美結合。

Actually, our pipelines still have big projects like this actually, it's about the timing actually. We can't say exactly that it'll happen this quarter or next quarter. But there are -- we always compete and work on big projects all the time actually. So it's a part of our strategy to be able to get into these projects and win them actually.

實際上，我們的專案線中仍然有很多類似的大型項目，關鍵在於時機。我們無法準確預測會在本季還是下季啟動。但我們一直都在參與大型專案的競爭和推進。因此，爭取進入這些項目並最終拿下它們，是我們策略的一部分。

Okay. Because that's really comes to what I'm saying. Because if this quarter, your revenues were down 18% year-over-year and you managed to get a very big contract. I want to understand as you said you can't time them, but it seems like it helped save the quarter from being an outright disaster to being maybe a little better than you thought it could have been. So I just want to know -- I only -- you never expect hail Marys every quarter. And I don't think you have that much more room to cut your cost. I just -- I really think you have to figure out a way to get your revenues up, whether it's better salespeople hitting the channels or really like you said, I think you're spending the money on marketing, I just don't know it. But as a shareholder, I could tell you I'm very frustrated. So I don't know how to put it any different.

好的。因為這正是我要說的重點。如果這個季度你們的營收年減了18%，但你們成功簽下了一份大合約。我想理解，正如你所說，你無法預測合約的時機，但它似乎確實讓這個季度的情況有所好轉，避免了徹底的失敗。所以我只是想知道——我只是——你不可能每個季度都指望奇蹟發生。而且我認為你們的成本削減空間已經不大。我只是——我真的認為你們必須想辦法提高收入，無論是透過更優秀的銷售人員拓展管道，還是像你所說的，你們把錢花在了行銷上，我只是不太清楚具體情況。但身為股東，我可以告訴你，我非常失望。我不知道該怎麼表達我的想法。

And we are as disappointed in our -- in not getting the results as quickly as we would like. But first in the market, we have to have great products. If we don't have that, as Michael pointed out on the last question than we can't compete. And we are a leader in that respect. And because we're public, we always watch our sales and marketing spend. We feel we have done a good job of putting a solid product suite that others try to duplicate in terms of our audio and video solutions. And at this point, we will prudently spend, strategically spend on sales and marketing, which I think can definitely be boosted to impact results. There's no question about it. I often say, that technology and products are innovative. The market in terms of products and technologies, they are under innovation. And we do a very good job tracking that. But the channel is also innovating the way people sell, the structure of the sales organization, how people buy, that is also changing and we're recognizing that and we're doing all of the pieces that we need to do to make sure that we capitalize on our good work on the products.

我們對未能如期取得預期成果感到失望。但首先，在市場上，我們必須擁有優秀的產品。正如邁克爾在上一個問題中指出的那樣，如果我們沒有優秀的產品，我們就無法參與競爭。而在這方面，我們是領先者。由於我們是上市公司，我們始終密切關注銷售和行銷方面的支出。我們認為，我們在打造一套強大的產品組合方面做得很好，其他公司都在努力複製我們的音訊和視訊解決方案。目前，我們將謹慎地、策略性地投入銷售和行銷，我認為這方面肯定還有提升的空間，從而對業績產生正面影響。這點毋庸置疑。我常說，科技和產品都在不斷創新。就產品和技術而言，市場正處於創新階段。而我們在這方面做得非常好。但管道也在革新人們的銷售方式、銷售組織的結構、人們的購買方式，這些都在發生變化，我們認識到了這一點，我們正在做所有需要做的事情，以確保我們能夠充分利用我們在產品方面所做的出色工作。

Okay. And can you talk a bit about this write offs the -- I mean you made a number of acquisitions back in the '11, '12 and '14 time frame. Which acquisitions exactly did you write off?

好的。您能談談這些減損損失嗎？我的意思是，您在2011年、2012年和2014年期間進行了一系列收購。您具體減損了哪些收購？

Actually, the write off is not acquisitions specific, actually. It's tied to our market value reflected in our stock price actually. So we had write off the entire goodwill, that's $12.7 million, because our stock price is below our book value, actually. That's the reason this is triggered. It's not because of any one specific acquisition. Because we look at all -- at our entire business as one single business unit. So we are small, that's how we track our business. And reason for this is the market price drop actually.

實際上，這筆減損並非針對特定收購，而是與我們的市值（即股價）掛鉤。我們之所以要減記全部商譽（1,270萬美元），是因為我們的股價低於帳面價值。這就是觸發減損的原因，並非因為某一次特定的收購。因為我們把整個業務視為一個整體。我們規模較小，所以我們是這樣衡量業務的。而減損的原因正是股價下跌。

I appreciate that, detail so it's not specifically to any deal. But I was going back over your proxies while this call was going on and I see, you guys get quarterly payments if you beat out certain numbers and give quarterly incentives. And for years, it seems now, already you have not been paid the bonuses for gross margin and operating income and revenues. But just for non -- you know more quantitative issues. Is there something you could fix as it relates not just to your easier products suites, but maybe to your planning? So you don't end up stuck with having inventory tied -- piled to the gills. And elsewhere in this business while you're dealing with this and you could somehow maybe beat your numbers? Can you set the bar low enough and understand really what's going on? Do you need to make some changes in the management and the executive management suite to be able to do this because 2, 3 years of missing the numbers, you don't get any bonuses? Probably is not good for you guys, and it's certainly not good for us.

我很感激，細節並非針對任何特定交易。通話期間，我重新查看了你們的委託書，發現你們是按季度發放獎金，前提是業績達到一定指標，並且有季度激勵。但似乎多年來，你們一直沒有拿到毛利率、營業收入和營收的獎金，卻只拿到一些非量化指標的獎金。你們能否改進一下，這不僅關係到你們那些比較容易實現的商品組合，也關係到你們的計畫？這樣你們就不會陷入庫存積壓的困境。在處理這些庫存的同時，你們是否也能在其他業務領域找到辦法，或許可以超額完成績效目標？你們能否降低標準，真正了解問題的癥結所在？你們是否需要對管理階層和高階主管團隊進行一些調整？因為連續兩三年業績不達標，就拿不到任何獎金？這對你們肯定不利，對我們來說也同樣不利。

I will try to address that. We...

我會盡量解決這個問題。我們…

I can point out one thing.

我可以指出一點。

I would like to hear both of your ideas.

我想聽聽你們倆的想法。

Okay, you go ahead, Narsi.

好的，納爾西，你先開始。

Let me point out one thing. The [CDNA] I think you're looking at the compensation discussion analysis. It is compensation committee's work and they manage our pay structure and how we are paid. We have some input, but they decide. They are the final arbiters. And then as I mentioned, you would've noticed that the compensation committee likes to set up -- we have stretch goals and measures are based on it. So it's part of the approach to the entire thing actually. We do understand our obligations to the investors. How we have to deliver growth to be paid. Yes, it's not fun thing to watch us not being paid bonus. But compensation committee clearly understands that we don't sand bag, we don't set goals just to make sure that we can hit bonuses. We have said many times, we are not driven by immediate quarterly goals for our bonuses. We are more driven by long-term challenges to get the products out and to get the market share and also to get the profits up. Compensation committee is aware of this and yes we'll take your inputs and we'll work on it.

我想指出一點。 [CDNA] 我想你們正在看的是薪酬討論分析。這是薪酬委員會的工作，他們負責管理我們的薪酬結構和支付方式。我們有一些意見，但最終決定權在他們手中。他們是最終的仲裁者。正如我之前提到的，你們可能已經注意到，薪酬委員會喜歡設定一些挑戰性目標，而衡量標準也正是基於這些目標。所以，這其實是我們整體策略的一部分。我們明白我們對投資者的義務，也明白我們必須實現成長才能獲得報酬。是的，眼睜睜看著自己拿不到獎金確實讓人不高興。但薪酬委員會很清楚，我們不會故意拖延，也不會為了確保能拿到獎金而設定目標。我們已經多次說過，我們並非為了短期的季度獎金目標而努力。我們更關注的是長期挑戰，例如如何推出產品、如何擴大市場佔有率以及如何提高利潤。薪酬委員會了解這一點，我們會認真聽取你們的意見並加以改進。

I think Narsi has basically raised just about every point I was going to raise. And I think I can't really add much more to that.

我覺得納爾西基本上已經把我想說的都說完了。我覺得我沒什麼好補充的了。

Thank you, this concludes today's Q&A period. I like to turn the call over to Zee for any closing remarks.

謝謝，今天的問答環節到此結束。接下來我想把電話交給Zee，請她做最後的總結演講。

Okay. Thank you, for your time. And we look forward to the next conference call. And hope you have a wonderful day.

好的。謝謝您抽出時間。我們期待下次電話會議。祝您有美好的一天。

Ladies and gentleman, thank you for your participation in today's conference. This concludes the program. You may now disconnect. Have a wonderful day.

女士們、先生們，感謝各位參加今天的會議。會議到此結束，您可以斷開連線了。祝您有美好的一天。