(EMKR) 2023 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the EMCORE Corporation Fiscal 2023 First Quarter Results Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎參加 EMCORE Corporation 2023 財年第一季度業績電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Tom Minichiello, Chief Financial Officer.

我現在想把會議交給今天的演講者，首席財務官 Tom Minichiello。

Thank you, and good afternoon, everyone, and welcome to our conference call to discuss EMCORE's fiscal 2023 1st quarter results. The news release we issued this afternoon is posted on our website emcore.com. On this call, Jeff Rittichier, EMCORE's President and Chief Executive Officer, will begin with the discussion of our business highlights. I'll then update you on our financial results, and we'll conclude by taking questions.

謝謝，大家下午好，歡迎參加我們的電話會議，討論 EMCORE 的 2023 財年第一季度業績。我們今天下午發布的新聞稿發佈在我們的網站 emcore.com 上。在這次電話會議上，EMCORE 總裁兼首席執行官 Jeff Rittichier 將首先討論我們的業務亮點。然後我會向您更新我們的財務結果，我們將通過提問來結束。

Before we begin, we would like to remind you that the information provided herein may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934. These forward-looking statements are largely based on our current expectations and projections about future events and trends affecting the business. Such forward-looking statements include projections about future results, statements about plans, strategies, business prospects and changes in trends in the business and the markets in which we operate.

在我們開始之前，我們想提醒您，此處提供的信息可能包括 1933 年證券法第 27A 條和 1934 年交易法第 21E 條含義內的前瞻性陳述。這些前瞻性陳述主要是基於我們目前對影響業務的未來事件和趨勢的預期和預測。此類前瞻性陳述包括對未來結果的預測、有關計劃、戰略、業務前景以及業務趨勢變化和我們經營所在市場的陳述。

Management cautions that these forward-looking statements relate to future events or future financial performance and are subject to business, economic and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements of the business or in our industry to be materially different from those expressed or implied by any forward-looking statements. We caution you not to rely on these statements and to also consider the risks and uncertainties associated with these statements and the business, which are included in the company's filings available on the SEC's website located at sec.gov, including the sections entitled Risk Factors in the company's annual report on Form 10-K. The company assumes no obligation to update any forward-looking statements to conform such statements to actual results or to changes in our expectations, except as required by applicable law or regulation.

管理層警告說，這些前瞻性陳述與未來事件或未來財務業績有關，並受已知和未知的商業、經濟和其他風險和不確定性的影響，這些風險和不確定性可能導致實際結果、活動水平、業績或業務成就或在我們的行業中與任何前瞻性陳述明示或暗示的內容存在重大差異。我們告誡您不要依賴這些聲明，並考慮與這些聲明和業務相關的風險和不確定性，這些風險和不確定性包含在公司的文件中，可在 SEC 網站 sec.gov 上找到，包括標題為 Risk Factors 的部分公司的年度報告 10-K 表格。公司沒有義務更新任何前瞻性陳述以使此類陳述符合實際結果或我們預期的變化，適用法律或法規要求的除外。

In addition, references will be made during this call to non-GAAP financial measures, which we believe provide meaningful supplemental information to both management and investors. The non-GAAP measures reflect the company's core ongoing operating performance and facilitates comparisons across reporting periods. Investors are encouraged to review these non-GAAP measures as well as the explanation and reconciliation of these measures to the most comparable GAAP measures included in our news release.

此外，在本次電話會議期間將提及非 GAAP 財務措施，我們認為這些措施為管理層和投資者提供了有意義的補充信息。非 GAAP 措施反映了公司的核心持續經營業績，並有助於跨報告期進行比較。鼓勵投資者審查這些非 GAAP 措施，以及這些措施與我們新聞稿中包含的最具可比性的 GAAP 措施的解釋和協調。

And with that, I will now turn the call over to Jeff.

有了這個，我現在將把電話轉給傑夫。

Thank you, Tom, and good afternoon, everyone. Q1 continued EMCORE's strategic transformation into an Aerospace and Defense business. Consolidated revenue for fiscal Q1 was $25 million, with 87% coming aerospace and defense. Only 13% came from broadband and cable television represented less than 6% of the company's revenue. There were encouraging improvements in the business as it continued to work through the operating challenges of such a significant transformation, generating a GAAP operating loss of $11.5 million.

謝謝你，湯姆，大家下午好。第一季度繼續 EMCORE 向航空航天和國防業務的戰略轉型。第一財季的綜合收入為 2500 萬美元，其中 87% 來自航空航天和國防。只有 13% 來自寬帶和有線電視，占公司收入的不到 6%。隨著公司繼續應對如此重大轉型帶來的運營挑戰，業務取得了令人鼓舞的改善，產生了 1150 萬美元的 GAAP 運營虧損。

However, our non-GAAP operating loss was $8 million and adjusted non-GAAP EBITDA improved from negative $9.4 million to negative $6.5 million. Tom will provide color on Q1's gross margin, but I will start out by saying that Aerospace and Defense margins showed significant improvement at 22% with Inertial Navigation higher than that. Not much has changed with respect to the cable television industry and the inventory glut of head-end transmitters.

然而，我們的非 GAAP 營業虧損為 800 萬美元，調整後的非 GAAP EBITDA 從負 940 萬美元改善至負 650 萬美元。湯姆將提供第一季度毛利率的顏色，但我首先要說的是，航空航天和國防利潤率顯著提高，達到 22%，而慣性導航更高。有線電視行業和頭端發射機的庫存過剩並沒有太大變化。

In our last call, we pointed out that ATX publicly announced that they had licensed the entire Prisma II technology platform from Cisco, allowing that technology to move forward. Although ATX' entry continues to be an encouraging opportunity over the long term. We do not see any short-term catalyst for improved demand, although we do see some signs of improvement and the underlying inventory positions within our customer base.

在上次通話中，我們指出 ATX 公開宣布他們已從思科獲得整個 Prisma II 技術平台的許可，從而使該技術得以向前發展。儘管從長遠來看，ATX 的加入仍然是一個令人鼓舞的機會。我們看不到需求改善的任何短期催化劑，儘管我們確實看到了一些改善跡像以及我們客戶群中的潛在庫存狀況。

Semiconductor availability continued to tamp down shipments for wireless and chips within broadband in Q1 as our customers were still not able to get enough silicon to ship transceivers and distributed antenna systems to meet their internal projections. Consistent with what we said in December, our chip business continued to get additional traction with customers in the form of engagements and planned growth in shipments. Going forward in the chip business, we expect to see the ramp get a bit steeper during the summer setting the stage for a much stronger FY '24.

由於我們的客戶仍然無法獲得足夠的矽來運送收發器和分佈式天線系統以滿足他們的內部預測，因此半導體可用性繼續抑制第一季度寬帶無線和芯片的出貨量。與我們在 12 月所說的一致，我們的芯片業務繼續以參與和計劃出貨量增長的形式吸引客戶。展望芯片業務，我們預計夏季的增長會更加陡峭，為更強勁的 24 財年奠定基礎。

To conclude my comments about broadband, I'd like to return to a statement from our last call in which I made the point the cable television was complete -- was increasingly incongruent with our strategic direction. Consistent with these objectives, EMCORE is in discussions with several interested parties to divest our nonstrategic product lines. We are also exploring other strategic alternatives.

在結束我對寬帶的評論時，我想回到我們上次電話會議的聲明中，我在聲明中指出有線電視是完整的——與我們的戰略方向越來越不一致。與這些目標一致，EMCORE 正在與幾個感興趣的各方討論剝離我們的非戰略產品線。我們也在探索其他戰略選擇。

Turning now to Aerospace and Defense. I'll begin my comments by stating that demand for our inertial navigation products continues to build nicely. In Q1, our book-to-bill in Aerospace and Defense was approximately 1.2. In particular, we're seeing increased demand for AMPV in real-world situations experiencing GPS denial, such as in the Ukraine. International bookings were strong for turret-based platforms, stemming from our supplier position in both (inaudible) and Escribano's Guardian 2 programs. We also received additional interest in the Middle East for long dormant large-scale armored vehicle navigation programs.

現在轉向航空航天和國防。我將首先說明對我們的慣性導航產品的需求繼續良好增長。在第一季度，我們在航空航天和國防領域的訂單出貨比約為 1.2。特別是，我們看到在 GPS 拒絕的現實情況下，例如在烏克蘭，對 AMPV 的需求增加。基於砲塔的平台的國際預訂量很大，這源於我們在（聽不清）和 Escribano 的 Guardian 2 計劃中的供應商地位。我們還收到了在中東長期休眠的大型裝甲車輛導航計劃的額外興趣。

On the naval side of our business, we are leveraging our expertise in critical lightweight and heavyweight torpedo programs such as the Mark 48 and 54 by supporting next-generation Torpedo platforms.

在我們業務的海軍方面，我們通過支持下一代魚雷平台，利用我們在關鍵輕型和重型魚雷項目（如 Mark 48 和 54）方面的專業知識。

Finally, we were awarded a follow-on order in a precision-guided munition program that continues to gain momentum in international markets. Chicago's book-to-bill was actually better than the overall 1.2 that I mentioned earlier, with stronger visibility for key programs in all 4 branches of service. Beyond program CAPTURE, we're seeing important signs of acceleration of key programs into their LRIP phase, low rate of initial production. This is a leading indicator of long-term growth. In particular, infrared search and track has become a key area of focus across the services and our multiple design wins in applications stand to benefit in terms of production timing.

最後，我們獲得了精確制導彈藥計劃的後續訂單，該計劃在國際市場上繼續獲得發展勢頭。芝加哥的訂單出貨比實際上比我之前提到的整體 1.2 更好，所有 4 個服務分支中的關鍵項目的可見性更強。除了項目 CAPTURE 之外，我們還看到關鍵項目加速進入 LRIP 階段的重要跡象，初始生產率較低。這是長期增長的領先指標。特別是，紅外搜索和跟踪已成為整個服務的重點關注領域，我們在應用程序中的多項設計勝利將在生產時間方面受益。

As I stated in December, the efforts of the extended engineering teams in Budd Lake and Concord allow shipments for 2 critical programs to begin in the December quarter and greater volumes are projected for the March quarter. The Space & Navigation team has started to build multiple TAIMU inertial measurement units in support of the design and validation -- design validation and qualification as it continues to meet shipment targets for BoRG. These 2 systems are critical to the launch schedule for United Launch Alliance.

正如我在 12 月份所說，在 Budd Lake 和 Concord 的擴展工程團隊的努力下，2 個關鍵項目的出貨量在 12 月季度開始，預計 3 月季度的出貨量會更大。空間與導航團隊已開始構建多個 TAIMU 慣性測量單元以支持設計和驗證——設計驗證和鑑定，因為它繼續滿足 BoRG 的出貨目標。這兩個系統對於聯合發射聯盟的發射計劃至關重要。

BoRG is part of the boost stage flight control for Atlas Centaur and Vulcan launch vehicles, while TAIMU will be the primary inertial measurement unit used for navigation. Critical milestones for TAIMU must be met over the next few months as well as the beginning of product builds in Alhambra. Our expectation is to complete qualification late in the calendar year to enable significant volume builds and launches in calendar year '24. When these products hit full production, they're expected to produce $20 million to $25 million in revenue per year and are also expected to significantly contribute to gross margins.

BoRG 是 Atlas Centaur 和 Vulcan 運載火箭助推級飛行控制的一部分，而 TAIMU 將是用於導航的主要慣性測量單元。 TAIMU 的關鍵里程碑必須在接下來的幾個月以及在 Alhambra 開始構建產品時實現。我們的期望是在日曆年晚些時候完成資格認證，以便在 24 年日曆年實現大量構建和發布。當這些產品全面投產時，預計它們每年將產生 2000 萬至 2500 萬美元的收入，並且有望顯著提高毛利率。

QMEMS suffered from some unexpected test set problems in late December and we're expecting QMEMS revenue to bounce back in the March quarter. We saw a steady stream of orders for QMEMS from our major programs of record, along with the precision-guided munitions order that I mentioned earlier. As we've said before, PGMs are the largest market segment in Inertial Navigation and are expected to be a significant area of growth for EMCORE in FY '23. We remain bullish on these applications.

QMEMS 在 12 月底遇到了一些意想不到的測試裝置問題，我們預計 QMEMS 收入將在 3 月季度反彈。我們從我們的主要記錄項目中看到穩定的 QMEMS 訂單，以及我之前提到的精確制導彈藥訂單。正如我們之前所說，PGM 是慣性導航中最大的細分市場，預計將成為 EMCORE 在 23 財年的重要增長領域。我們仍然看好這些應用程序。

Before I move on to guidance, I'd like to provide an update on integration, which is a key area of focus. As of today, Space & Navigation is now running a common ERP system within the rest of EMCORE and has made the cutover from L3Harris' IT systems. This will enable us to exit the cost of the transition services agreement that was part of the transaction.

在繼續進行指導之前，我想提供有關集成的最新信息，這是一個關鍵的重點領域。時至今日，Space & Navigation 正在 EMCORE 的其餘部分運行一個通用的 ERP 系統，並已從 L3Harris 的 IT 系統切換過來。這將使我們能夠退出作為交易一部分的過渡服務協議的成本。

We are expecting the transition for Chicago to complete in the June quarter, but we've already moved the Rhode Island engineering team out of the KVH building. We began rolling out Camstar MES for shop floor control in Alhambra and expect to integrate it into the other facilities after we complete the ERP upgrades and exit transition services. Ultimately, this will make EMCORE more efficient and will help us improve our processes, costs and lower inventory.

我們預計芝加哥的過渡將在 6 月季度完成，但我們已經將羅德島工程團隊搬出 KVH 大樓。我們開始在 Alhambra 推出用於車間控制的 Camstar MES，並期望在我們完成 ERP 升級和退出過渡服務後將其集成到其他設施中。最終，這將使 EMCORE 更加高效，並幫助我們改進流程、降低成本並降低庫存。

Turning now to guidance for the current quarter. We're expecting that Inertial Navigation will see some growth, largely driven by increased production in Chicago and Concord. This will be partially offset by continued weakness in cable television and wireless. Consequently, we're expecting revenue to be within the $27 million to $29 million range for the March quarter.

現在轉向本季度的指導。我們預計慣性導航將出現一些增長，這主要是受芝加哥和康科德產量增加的推動。這將部分被有線電視和無線業務的持續疲軟所抵消。因此，我們預計 3 月季度的收入將在 2700 萬美元至 2900 萬美元之間。

With that, I will turn the call back over to Tom.

有了這個，我會把電話轉回給湯姆。

Thank you, Jeff. Consolidated revenue for fiscal 1Q was $25 million, with 87% coming from Aerospace and Defense and 13% from broadband. Aerospace and Defense segment revenue was $21.7 million, a $700,000 increase when compared to the prior quarter. A&D achieved sequential quarter growth despite shipping delays for our QMEMS product line, as the rest of the A&D portfolio performed well. This included the first full quarter of results for the Inertial Navigation operation in Tinley Park that was acquired during the prior quarter. And the Space & Nav operation in Budd Lake that posted another solid quarter. Additionally, the FOG product line in Alhambra, along with Defense Optoelectronics, both increased over the prior quarter.

謝謝你，傑夫。第一財季的綜合收入為 2500 萬美元，其中 87% 來自航空航天和國防，13% 來自寬帶。航空航天和國防部門收入為 2170 萬美元，比上一季度增加 700,000 美元。儘管我們的 QMEMS 產品線出現發貨延遲，但 A&D 實現了季度連續增長，因為 A&D 產品組合的其餘部分錶現良好。這包括上一季度收購的廷利公園慣性導航業務的第一個完整季度業績。 Budd Lake 的 Space & Nav 業務又發布了一個穩定的季度。此外，Alhambra 的 FOG 產品線以及 Defense Optoelectronics 都比上一季度有所增長。

Broadband revenue was $3.3 million, a $1.3 million sequential quarter decrease due to a further drop in sales of optical transmitters and lasers sold into the cable TV infrastructure market. To add some perspective on the severity of the current down cycle, cable TV product revenue this quarter was $1.6 million compared to $28.5 million in the year ago quarter, and $21 million when looking back to just the March 2022 quarter.

寬帶收入為 330 萬美元，環比減少 130 萬美元，原因是銷往有線電視基礎設施市場的光發射器和激光器的銷售額進一步下降。為了進一步說明當前下行週期的嚴重性，本季度有線電視產品收入為 160 萬美元，而去年同期為 2850 萬美元，回顧 2022 年 3 月的季度則為 2100 萬美元。

As mentioned on our last call, we are in a much deeper cable TV down cycle this time around than the company has experienced in at least the last 10 years. Broadband revenue was also affected by lower nonrecurring engineering or NRE revenue associated with next-generation chip development.

正如我們在上次電話會議中提到的那樣，這次我們處於比公司至少過去 10 年所經歷的更深的有線電視下行週期。寬帶收入也受到與下一代芯片開發相關的非經常性工程或 NRE 收入減少的影響。

Let me now turn to the rest of the operating results, the focus of which will be on a non-GAAP basis. A&D gross margin rebounded to 22% driven by: a, the return to historical gross margins for the recently acquired operations in Tinley Park and Budd Lake; b, onetime QMEMS inventory valuation charges in the prior quarter; and c, better QMEMS manufacturing yields at our Concord site. Conversely, the very low level of revenue for the Broadband segment, combined with higher fixed cost under absorption resulted in an overall consolidated gross margin of 15%.

現在讓我談談其餘的經營業績，其重點將放在非 GAAP 基礎上。 A&D 毛利率反彈至 22%，原因是：a，最近收購的 Tinley Park 和 Budd Lake 業務的毛利率恢復到歷史水平； b，上一季度的一次性 QMEMS 庫存估價費用； c，我們 Concord 工廠的 QMEMS 製造產量更高。相反，寬帶業務的收入水平非常低，加上吸收的固定成本較高，導致整體綜合毛利率為 15%。

Operating expenses overall came in lower than anticipated at $11.8 million in the December quarter compared to $11.2 million in the prior quarter. While we added a full quarter of results for the Inertial Nav business, project-related R&D costs, which tend to be uneven quarter-to-quarter were lower than average in 1Q.

12 月季度的總體運營支出為 1180 萬美元，低於預期，而上一季度為 1120 萬美元。雖然我們為慣性導航業務增加了一個完整的季度業績，但與項目相關的研發成本在第一季度低於平均水平，這些成本往往在季度之間不平衡。

As mentioned during our last call, EMCORE has undergone a momentous and rapid change to the revenue profile. During the first half of fiscal '22, Broadband accounted for 75% of the business. in just a couple of quarters later in fourth quarter of fiscal '22 and first quarter of fiscal '23, this has completely flipped to over 80% of revenue coming from Aerospace and Defense. The company is now better positioned for higher growth with a broader-based portfolio over inertial navigation products, expanded customer reach and in a substantially larger and more stable marketplace than the highly cyclical cable TV market.

正如我們在上次電話會議中提到的那樣，EMCORE 的收入狀況發生了重大而迅速的變化。在 22 財年上半年，寬帶佔業務的 75%。在短短幾個季度後的 22 財年第四季度和 23 財年第一季度，這已經完全轉變為來自航空航天和國防的收入的 80% 以上。該公司現在處於更有利的位置，可以通過基於更廣泛的慣性導航產品組合、擴大客戶範圍以及比高度週期性的有線電視市場更大、更穩定的市場來實現更高的增長。

While the December quarter was better compared to the prior quarter, fiscal 1Q results still reflected the significant and swift changes to the size and mix of the top line. 1Q operating loss was $8 million compared to $10.8 million (sic) [$10.9 million] in the quarter before. Adjusted EBITDA improved to negative $6.5 million. Net loss was $8.2 million or $0.22 per share compared to $10.9 million or $0.29 per share in the prior quarter.

雖然 12 月季度比上一季度好，但第一財季的結果仍然反映出收入規模和組合發生了重大而迅速的變化。第一季度營業虧損為 800 萬美元，而上一季度為 1080 萬美元（原文如此）[1090 萬美元]。調整後的 EBITDA 改善至負 650 萬美元。淨虧損為 820 萬美元或每股 0.22 美元，而上一季度為 1090 萬美元或每股 0.29 美元。

Shifting over to GAAP results for a minute. Fiscal 1Q net loss was $11.7 million or $0.31 per share. This included acquisition-related costs of $2.1 million, severance charges of $475,000 and a $1.2 million book gain associated with the sale and leaseback transaction of the Tinley Park property obtained as part of the Inertial Navigation asset acquisition from KVH.

轉到 GAAP 結果一分鐘。第一財季淨虧損為 1170 萬美元或每股 0.31 美元。這包括 210 萬美元的收購相關成本、475,000 美元的遣散費和 120 萬美元的賬面收益，這些收益與作為從 KVH 慣性導航資產收購的一部分獲得的廷利公園財產的售後回租交易相關。

Turning to the balance sheet. We had cash of $24.2 million at December 31 compared to $26.1 million at September 30. The $1.9 million net decrease consisted of $6.5 million used to fund regular business operations, $3.5 million used for financing activities, consisting of a $3.2 million loan balance reduction and $300,000 in debt service costs. $1.4 million for acquisition-related costs and $800,000 for CapEx. Offsetting these uses of cash was $10.3 million in net cash proceeds received from the sale leaseback of the Tinley Park property.

轉向資產負債表。截至 12 月 31 日，我們的現金為 2,420 萬美元，而 9 月 30 日為 2,610 萬美元。190 萬美元的淨減少包括用於為正常業務運營提供資金的 650 萬美元，用於融資活動的 350 萬美元，包括 320 萬美元的貸款餘額減少和 300,000 美元在償債成本中。 140 萬美元用於收購相關成本，800,000 美元用於資本支出。抵消這些現金使用的是從廷利公園物業的售後回租中收到的 1030 萬美元現金淨收益。

Before we get to the Q&A, I'd like to share with everyone that both Jeff and I planned to be at the Cowen Aerospace/Defense & Industrials Conference on Thursday, February 16, in Arlington, Virginia, including a presentation and in-person investor meetings. We plan on providing further details prior to the event.

在開始問答環節之前，我想與大家分享我和 Jeff 計劃參加 2 月 16 日星期四在弗吉尼亞州阿靈頓舉行的考恩航空航天/國防與工業會議，包括演講和麵對面投資者會議。我們計劃在活動開始前提供更多詳細信息。

And with that, we are now opening up the call for your questions.

因此，我們現在開始徵求您的問題。

(Operator Instructions) Our first question comes from Richard Shannon with Craig-Hallum.

（操作員說明）我們的第一個問題來自 Richard Shannon 和 Craig-Hallum。

I think my first couple will probably be more for Tom here. Just looking at the December quarter results here on gross margins. Broadband gross margin is actually negative, and it seems hot or interesting that revenues went down $1.3 million and gross profit down almost the same amount. It seems like pretty high leverage. I know you -- I know it's high, going up and down, but it seems like dramatically below what I would have expected. So can you help us understand that dynamic? Is that temporary? Or what was going on there?

我想我的第一對可能更適合湯姆。只看這裡 12 月季度的毛利率結果。寬帶毛利率實際上是負的，收入下降了 130 萬美元，毛利潤下降了幾乎相同的數額，這似乎很熱門或很有趣。這似乎是相當高的槓桿。我了解你——我知道它很高，上下波動，但它似乎大大低於我的預期。那麼你能幫助我們理解這種動態嗎？那是暫時的嗎？或者那裡發生了什麼？

Well, the reason why there was the sort of a little bit of a disjointment that you're referring to is the absorption of the costs are based on production activity during the quarter, not revenue. So in the quarter before, we had with -- the underabsorption in the fab, Richard, was not as low as it was this quarter, even though the revenue was lower this quarter. So that accounts for -- I think that accounts for the gap that you're asking about. And then -- but revenue does have -- we went -- we did go from $4.5 million to $3.3 million. So that is obviously a factor as well.

好吧，你所指的有點脫節的原因是成本的吸收是基於本季度的生產活動，而不是收入。所以在前一個季度，我們有 - 理查德工廠的吸收不足並不像本季度那麼低，儘管本季度的收入較低。所以這說明了——我認為這說明了你所問的差距。然後——但收入確實有——我們去了——我們確實從 450 萬美元增加到 330 萬美元。所以這顯然也是一個因素。

Okay. The activity levels you're referring to, are these at a bottom in the December quarter or not? I guess that'll fall into a couple of questions I have later on gross margin going forward. But activity levels start improving from here? You referred to activity levels being even lower in December. That was the driver for gross margin. So are those activity levels bottomed out here in December or not necessarily as we get into March and later?

好的。您所指的活動水平是否處於 12 月季度的底部？我想這將成為我稍後提出的關於未來毛利率的幾個問題。但活動水平從這裡開始改善？您提到 12 月份的活動水平甚至更低。這是毛利率的驅動因素。那麼，這些活動水平是在 12 月觸底，還是不一定在我們進入 3 月及之後觸底？

Likely has bottomed out.

很可能已經觸底。

Okay. Excellent. That's helpful. A couple of questions on how to look at the March quarter here. I just want to make sure I got the dynamics here right. Obviously, some nice growth coming in A&D. I'm just wondering if I'm reading right that broadband could be flat, even down in the quarter. Is that the right way to interpret your comments?

好的。出色的。這很有幫助。關於如何看待 3 月季度的幾個問題。我只是想確保我掌握了正確的動態。顯然，A&D 領域出現了一些不錯的增長。我只是想知道我是否讀對了寬帶可能持平，甚至在本季度有所下降。這是解釋您的評論的正確方法嗎？

It's going to stay right around where we just where it is in the December quarter, Richard, I mean maybe some small changes.

理查德，它將保持在我們 12 月季度的位置附近，我的意思是可能會有一些小的變化。

There's no catalyst to move it in either direction.

沒有任何催化劑可以將其推向任何一個方向。

Yes. Yes. So it's going to look very similar.

是的。是的。所以它看起來會非常相似。

Okay. That's what I figured. I just want to make sure. So let's dig in here on the gross margins as you look through the March quarter, in Q1, if you want to draw some conclusions we should think about going forward, that would be great here. But you just talked about activity levels bottoming out in the broadband business coming forward into March here. You're growing in A&D, which has a nice fall through margins here. So how do we think about gross margins for this quarter? When we talked about 5 weeks ago in your last earnings call, you talked about a goal of getting to 20%. And so I'm wondering if that's the number that we should be thinking about? Or how do you help us kind of peg down what you're thinking for gross margins this quarter?

好的。這就是我的想法。我只是想確定一下。因此，讓我們在第一季度的 3 月份季度深入了解毛利率，如果您想得出一些結論，我們應該考慮繼續前進，那會很棒。但是你剛才談到了寬帶業務的活動水平將在 3 月份觸底反彈。你在 A&D 中成長，這裡的利潤率下降得很厲害。那麼我們如何看待本季度的毛利率呢？當我們在 5 週前的上次財報電話會議上談到時，您談到了達到 20% 的目標。所以我想知道這是否是我們應該考慮的數字？或者你如何幫助我們確定你對本季度毛利率的看法？

Yes. I think overall, consolidated, that 20% number that you're referring to is a good way to look at it, Richard. The -- like we just said, the Broadband segment is going to look similar. That's our expectation in the March quarter. But A&D will expect it to see the growth in top line and in margin. things are getting better in Concord. The extra volume alone will also help absorb some other overhead costs in some of the other facilities.

是的。理查德，我認為總體而言，綜合來看，你所指的 20% 的數字是一個很好的看待它的方式。就像我們剛才說的，寬帶部分看起來很相似。這是我們對 3 月季度的預期。但 A&D 預計它會看到收入和利潤率的增長。康科德的情況正在好轉。僅額外的體積也將有助於吸收其他一些設施的一些其他管理費用。

The A&D business could very well do a gross margin call it somewhere between 25% and 30%, somewhere in the middle of that range. And do the math, you can see that, that would probably come out to about a 20% consolidated margin if we execute towards that and we get the mix that we think we're going to get for the quarter.

A&D 業務的毛利率很可能在 25% 到 30% 之間，介於該範圍的中間。算一算，你可以看到，如果我們朝著這個方向執行，那麼綜合利潤率可能會達到 20% 左右，並且我們得到了我們認為本季度將獲得的組合。

Okay. That is very helpful. Just a couple of questions, I'll jump back in the queue here. Just to talk quickly on the topic of divestiture of potential businesses here. I guess a 2-part question for you, Jeff. How should we think about timing here? I know you're not going to talk about what kind of eventual outcome, including proceeds we might see from this. But any comments on kind of the end customer here? I think you may have mentioned something about a strategic partner for this one. And let's just start with there and get your thoughts, Jeff, please?

好的。這很有幫助。只是幾個問題，我會在這裡跳回到隊列中。只是想快速談談剝離潛在業務的話題。傑夫，我猜想問你一個由兩部分組成的問題。我們應該如何考慮這裡的時間安排？我知道你不會談論什麼樣的最終結果，包括我們可能從中看到的收益。但是對這裡的最終客戶有什麼評論嗎？我想你可能已經提到了一些關於戰略合作夥伴的事情。讓我們從那裡開始，聽聽你的想法，傑夫，好嗎？

Yes. I think the likely scenario is somewhere within a quarter of where we are right now, could be more toward the end, could be sooner. It just depends on due diligence with the parties and how long that takes. But I think that's a reasonable way of looking at it. .

是的。我認為可能的情況是我們現在所處位置的四分之一以內，可能會更接近尾聲，可能會更快。這僅取決於對各方的盡職調查以及需要多長時間。但我認為這是一種合理的看待方式。 .

The other thing is just to clarify one other thing. And I just got done looking at it before, I sat down, the cable TV business did have some E&O, excess and obsolete that was a little bit unusually large. We wouldn't expect that to happen again. That was part of the thing that dragged down their gross margins. So -- but back to your original question, the -- yes, I would say, within 3 months is probably a quite reasonable way of looking at it.

另一件事只是為了澄清另一件事。我剛剛看完之前，我坐下來，有線電視業務確實有一些 E&O，過剩和過時，有點異常大。我們不希望這種情況再次發生。這是拖累其毛利率的部分原因。所以 - 但回到你最初的問題， - 是的，我會說，在 3 個月內可能是一種非常合理的看待它的方式。

Okay. And just to be clear on that, Jeff, is this contemplating just the cable TV business or other elements of the Broadband segment?

好的。傑夫，要明確這一點，這是僅考慮有線電視業務還是寬帶領域的其他元素？

There are other pieces as well.

還有其他作品。

Perfect. One last question for me. I will jump out of line. Let's talk about the chip business here. I guess 2 pieces. Maybe you can talk about some of the new engagements that you have going on here, types of customers, applications, et cetera, when those might hit? As well as, I think you mentioned a ramp you're kind of getting this summer. How many customers? And what's kind of your expectation or thought process that we can think about it as we get into fiscal '24 about revenues per quarter on that?

完美的。最後一個問題問我。我會跳出線。這裡先說一下芯片業務。我猜2件。也許你可以談談你在這裡正在進行的一些新活動、客戶類型、應用程序等等，這些活動何時會出現？此外，我認為你提到了今年夏天你會得到的一個斜坡。有多少客戶？當我們進入關於每季度收入的 24 財年時，我們可以考慮什麼樣的期望或思維過程？

Yes. So if you took a look at the total number of customers for custom chips and the engagements, some are shipping, some are not, I think, 5 or 6 seems about right. There are -- there's 1 customer that has multiple programs with us, and I can't say more than that. Again, what I would say is that all of these programs are targeted into the data center and possibly even telecom space. And so they really don't -- other than common design expertise and manufacturing assets, they really don't have an impact over what -- the things we're doing over in A&D. As we exit '23 and going into '24, I think you can look at revenue from those products sort of getting into the $3 million or $4 million a quarter range, right? And that will have a pretty significant impact on the absorption.

是的。因此，如果您查看定制芯片的客戶總數和參與度，我認為，有些正在發貨，有些沒有，我認為 5 或 6 似乎是正確的。有 - 有 1 個客戶與我們有多個程序，我不能說更多。同樣，我要說的是，所有這些程序都是針對數據中心甚至可能是電信領域的。所以他們真的沒有——除了共同的設計專業知識和製造資產，他們真的沒有影響——我們在 A&D 中所做的事情。當我們退出 23 年並進入 24 年時，我認為您可以看到這些產品的收入每季度達到 300 萬或 400 萬美元，對嗎？這將對吸收產生相當大的影響。

Our next question comes from Tim Savageaux with Northland.

我們的下一個問題來自 Northland 的 Tim Savageaux。

The question on the operating expense side, came in nicely lower than at least I expected here. I don't know if that's some measure of synergy or acquisition integration. But as you look forward, is there anything kind of anomalous about that OpEx? And what kind of outlook do you have heading forward here for OpEx to hang around this level or maybe ramp up a little bit with revenue?

關於運營費用方面的問題，至少比我在這裡預期的要低得多。我不知道這是協同作用還是收購整合的某種衡量標準。但正如您所期待的那樣，該 OpEx 是否有任何異常？你對 OpEx 保持在這個水平附近或者可能隨著收入增加一點點有什麼樣的前景？

Probably we'll go a little bit higher than where we finished. The -- most of the OpEx, Tim, is pretty steady except you get into certain line items like project costs, this is materially used in R&D that tends to be uneven. Sometimes there's NRE to cover it. Sometimes there isn't. So that's really the thing that makes it move around from quarter-to-quarter. The rest of the salaries and the people and all those kind of costs are very steady.

可能我們比我們完成的地方要高一點。 Tim，大部分的運營支出都非常穩定，除了你進入某些項目成本，比如項目成本，這在研發中大量使用，往往是不平衡的。有時有 NRE 來覆蓋它。有時沒有。所以這真的是讓它從一個季度到另一個季度移動的原因。其餘的薪水和人員以及所有這些成本都非常穩定。

So what you're likely to see is a little bit of a bounce back up to, I would say, maybe the [12%] range because materials are likely to go a little higher. I mean they were well below average this quarter. And even if they just go back up to average, it will be over 12% . But we also -- if you recall, last quarter, we announced a reduction in force. We got a little bit of the benefit of that only in the last few weeks of the quarter because we took the action in early December. We will get a full quarter of that, both in cost of goods sold and in OpEx, and that should keep the OpEx right around the 12% number per quarter.

所以你可能會看到一點點反彈，我想說，也許是 [12%] 範圍，因為材料可能會上漲一點。我的意思是他們本季度遠低於平均水平。即使他們只是回到平均水平，也會超過 12%。但我們也——如果你還記得的話，上個季度，我們宣布裁員。由於我們在 12 月初採取了行動，因此我們僅在本季度的最後幾週才從中受益。我們將獲得其中的四分之一，包括銷售成本和運營支出，這應該使運營支出保持在每季度 12% 左右的水平。

Yes. Tim, as Tom pointed out, the only wildcard in this is where the nonrecurring engineering contracts land. Sometimes, depending on the deliverables, we have to record those as an offset against R&D, in which case you'll see a movement down in OpEx. In other cases, those dollars just get built out through cost of goods. So -- and there's enough NRE in there, it could start to move the numbers around. So don't be surprised if for some reason, it looks a little better. I think Tom captured the spirit of where we're headed with this.

是的。蒂姆，正如湯姆指出的那樣，唯一的通配符是一次性工程合同落戶的地方。有時，根據可交付成果，我們必須將這些記錄為對研發的抵消，在這種情況下，您會看到 OpEx 下降。在其他情況下，這些美元只是通過商品成本積累起來的。所以 - 那裡有足夠的 NRE，它可以開始移動數字。因此，如果出於某種原因，它看起來好一點，請不要感到驚訝。我認為 Tom 抓住了我們前進方向的精神。

Operationally, we're bringing out -- we've run out a fair bit of synergies and headcount. There a few more we might get here and there, especially as we finish some of the systems work. But most of the -- most of those synergies are now going to come from improvements in the way the manufacturing operation works. So you'll see that in COGS probably starting in the summer, but and it will continue an improvement from there.

在運營上，我們正在推出——我們已經耗盡了相當多的協同效應和員工人數。還有一些我們可能會在這里和那裡，特別是當我們完成一些系統工作時。但大部分 - 大多數協同效應現在將來自製造運營方式的改進。所以你會在 COGS 中看到它可能從夏天開始，但它會從那裡繼續改進。

Got it. And Jeff, you mentioned some signs over -- back on the broadband side, some signs of improvement in inventory situation. We've seen pretty strong finish to the year in terms of what the big operators are doing, and obviously, Charter moving into a major upgrade cycle here. kind of real time. I wonder if you could be specific on what you're referencing with regard to those signs of improvement? And should we assume that's a result of some of this increased network investment activity? Or how do you see that playing out?

知道了。傑夫，你提到了一些跡象——回到寬帶方面，一些庫存情況有所改善的跡象。就大型運營商的所作所為而言，我們已經看到今年的收官情況非常好，顯然，Charter 進入了一個主要的升級週期。有點實時。我想知道你是否可以具體說明你所指的那些改善跡象？我們是否應該假設這是網絡投資活動增加的部分結果？或者你怎麼看結果？

I think you touched on part of it, Tim, which is just the fact that actually the primary glut of transmitters out there are what are called linear EMLs, those were primarily consumed by Charter, and we see evidence that, that is changing and that other MSOs are using those instead of DFBs. So that's part of it.

蒂姆，我想你已經觸及了其中的一部分，這只是一個事實，即實際上主要的發射器過剩是所謂的線性 EML，這些主要由 Charter 使用，我們看到證據表明，這種情況正在發生變化，而且其他 MSO 正在使用這些而不是 DFB。這就是其中的一部分。

The other thing is that one of the things you find when you've had a lot of inventory is that the OEMs misforecast the channel plan a bit. And so you can start to see based on the odd wavelengths that are ordered, what's really going and you have a pretty good idea where it's going. So that's those are the signs that I mentioned in the call.

另一件事是，當您擁有大量庫存時，您會發現其中一件事是原始設備製造商對渠道計劃的預測有點錯誤。因此，您可以開始根據訂購的奇數波長來查看真正發生的事情，並且您非常清楚它的去向。這就是我在電話中提到的跡象。

And one more for me. I think you mentioned a 1.2 book-to-bill in the December quarter for A&D and higher in certain areas. I wonder if you can comment on what you're seeing from an order perspective thus far this quarter? And whether you expect that relatively robust order flow to continue and enable you to grow A&D revenues sequentially throughout the year?

還有一個給我。我想你提到了 12 月季度 A&D 的 1.2 訂單出貨比，在某些領域更高。我想知道您是否可以從本季度到目前為止的訂單角度評論您所看到的情況？您是否預計相對強勁的訂單流會持續下去，並使您全年的 A&D 收入連續增長？

Yes. So it was really a good performance across the board. Again, Inertial Nav leading the way. And in the current quarter, it may come down a little bit. We still expect it to be north of 1. And in the June quarter based on program timings, we're expecting to see something significantly better. And that's just based on what the program offices are telling us.

是的。因此，這確實是全面的良好表現。慣性導航再次領先。而在本季度，它可能會有所回落。我們仍然預計它會在 1 以北。根據計劃時間安排，在 6 月季度，我們預計會看到明顯更好的情況。這只是基於計劃辦公室告訴我們的內容。

But the point that I've made is oftentimes in cable, we're running with 6 weeks worth of backlog, and it's maddening at times. I look at our backlog report now, and it's greater than 6 months. And we see that starting to build in some of these larger programs. So the visibility is dramatically different. We didn't have 6 months visibility at any time in EMCORE for cable TV except during COVID period. And that we expect that this kind of visibility is the norm rather than the exception in A&D.

但我提出的觀點通常是在有線電視中，我們有 6 週的積壓工作，有時令人抓狂。我現在查看我們的積壓報告，已經超過 6 個月了。我們看到開始構建其中一些更大的程序。所以能見度是截然不同的。除了 COVID 期間，我們在 EMCORE 中的任何時候都沒有 6 個月的有線電視可見度。我們希望這種可見性是 A&D 中的常態而不是例外。

Our next question comes from Paul Silverstein with Cowen.

我們的下一個問題來自 Paul Silverstein 和 Cowen。

(inaudible) in an answer. Richard did a fine job.

（聽不清）在回答中。理查德做得很好。

(Operator Instructions) Our next question comes from Richard Shannon with Craig-Hallum.

（操作員說明）我們的下一個問題來自 Richard Shannon 和 Craig-Hallum。

Two more follow-ups from me. Want to follow up on Tim's last question and your response here about -- thinking about growth throughout the rest of the year. Maybe thinking about it another way, and Jeff taken some of your comments from your prepared remarks about some of these products, I think you're kind of taken mostly on a product-by-product basis rather than programs. Talk about TAIMU and BoRG and some QMEMS products. Broadly speaking, can you kind of fit those products into the quarter or quarters where you might see some outsized growth and ultimately kind of fit us into the scenario where you get to break even, how do we get there? Can you help us put those things together a little bit more carefully, I guess?

我的另外兩個跟進。想跟進蒂姆的最後一個問題和你在這裡的回答——考慮今年剩餘時間的增長。也許換一種方式考慮，Jeff 從您準備好的關於其中一些產品的評論中摘取了您的一些評論，我認為您主要是根據逐個產品而不是程序來接受的。談談TAIMU和BoRG以及一些QMEMS產品。從廣義上講，你能否將這些產品放入一個或多個季度，在那裡你可能會看到一些超額增長，並最終讓我們適應你實現收支平衡的場景，我們如何實現收支平衡？我想你能幫我們更仔細地把這些東西放在一起嗎？

Sure. Well, again, one of the points that we've made is I called it, I think, the 30-30 point, which is we want to have gross margin in the low 30s and revenue in the low 30s in order to get to EBITDA. So let's just take the midpoint of the range, call it, 28 that we forecasted and you say, "Okay, Jeff, you need another 5, where are you going to go get it, okay? In my prepared comments, I mentioned that just all by itself, TAIMU could provide $20 million to $25 million worth of revenue a year. And that's -- so there's my 5 per quarter, and that is just 1 program.

當然。嗯，再一次，我們提出的一個觀點是我稱之為 30-30 點，我們希望毛利率在 30 多歲以下，收入在 30 多歲以下，以便EBITDA。所以讓我們取範圍的中點，稱它為我們預測的 28，然後你說，“好吧，傑夫，你還需要 5，你要去哪裡得到它，好嗎？在我準備好的評論中，我提到了就其本身而言，TAIMU 每年可以提供價值 2000 萬到 2500 萬美元的收入。那是——所以我每季度 5 個，這只是 1 個程序。

So there are other programs which are ramping up programs for Lockheed in infrared search and track. We're seeing pushes by other branches of service with Raytheon for their own products like that. We're starting to see the work regarding the M1A2C Abrams tank stake, which we're a part of with commander, gunner sites start to move forward. And so the interesting thing, Richard, is it's really different for us at this point compared to, say, where we were 2 years ago is we've won the programs that we need to ramp. So this isn't a case where it's really speculative go-gets on program wins. It's executing on low rate of initial production, getting things qualified and then into production. So that's the answer to the first part of your question about revenue.

因此，還有其他項目正在為洛克希德公司增加紅外搜索和跟踪方面的項目。我們看到雷神公司的其他服務部門也在推動他們自己的產品。我們開始看到有關 M1A2C 艾布拉姆斯坦克樁的工作，我們是指揮官的一部分，砲手站點開始向前推進。因此，理查德，有趣的是，與 2 年前我們所處的位置相比，在這一點上對我們來說真的很不一樣，我們已經贏得了我們需要提升的項目。所以這不是真正投機性地贏得項目的情況。它以較低的初始生產率執行，使事情合格，然後投入生產。這就是關於收入問題的第一部分的答案。

Getting into the question about gross margin. Again, there's -- the thing that we've always talked about is that we're volume sensitive. And so we get hit with these under absorption charges and those are in the fab primarily, but they also occur within the assembly areas in the business. So as we ramp up production and start generating this absorption, right, of the overhead, even without a change in the bill of material, even without a change in the product sales price margins go up period, end of story.

進入有關毛利率的問題。同樣，我們一直在談論的是我們對音量敏感。因此，我們受到這些吸收費用的打擊，這些費用主要發生在晶圓廠，但它們也發生在業務的組裝區域內。因此，當我們提高產量並開始吸收這種間接費用時，即使物料清單沒有變化，即使產品銷售價格利潤率沒有變化，故事也將結束。

So there's -- again, if you look at the P&L in the current quarter, yes, there was some cable TV stuff we decided to write off. There was really not much of it in A&D. And scrap in most of the business was fine. I think all we've got to do is execute on the fundamentals and get the volume up and the gross margin problem largely takes care of itself.

所以，如果你再看看本季度的損益表，是的，我們決定註銷一些有線電視業務。 A&D 中確實沒有太多內容。大多數業務中的報廢都很好。我認為我們所要做的就是執行基本面並提高銷量，毛利率問題在很大程度上會自行解決。

That's helpful, Jeff. Maybe one quick follow-up on the topics specially a stood out here in terms of the size, saying that kind of gap all the way to breakeven here. Is that something -- in the last call, you talked about a breakeven point, maybe kind of early in the next fiscal year? I guess it was my understanding that TAIMU was going to be more of a calendar '24 story. So I would assume we've got other drivers, maybe smaller each individually that helps us kind of gap up there, whereas team is more of a calendar '24 story, am I misunderstanding this?

這很有幫助，傑夫。也許一個關於主題的快速跟進特別是在規模方面在這裡脫穎而出，說這種差距一直到收支平衡。那是什麼——在上次電話會議中，你談到了盈虧平衡點，也許是在下一個財政年度的早期？我想我的理解是 TAIMU 將更像是一個 24 年的日曆故事。所以我假設我們有其他車手，也許每個人都更小，這有助於我們在那裡有某種差距，而團隊更像是一個日曆'24 故事，我是否誤解了這一點？

Yes. So it's not quite that black and white, Richard, because what has to happen, for example, is there's a big ramp-up in activity purchasing materials, some of which we actually get to recognize some revenue for, albeit with just a material overhead rate on top of it, well prior to that production happening. So you'll start to see signs of the ramp before the actual delivery of multiple units per quarter. And you'll see a little bit of that in March. .

是的。所以這並不是那麼黑白分明，理查德，因為必鬚髮生的事情，例如，材料採購活動大幅增加，其中一些我們實際上可以確認一些收入，儘管只是材料管理費用在它之上的速率，遠在生產發生之前。因此，在每季度實際交付多個單位之前，您將開始看到增長跡象。你會在 3 月份看到一些這樣的情況。 .

But the other programs that are out there in terms of new orders for Mark 54, ramps on infrared search and track ramps on this (inaudible) munitions program. Those are the things that are going to continue to move the needle between now and the time where I'm telling you, hey, we were able to ship 24 TAIMUs in a given quarter, okay? So there is no hockey stick. There is no step function. It's -- you're going to see steady improvement. I use the TAIMU production as an example, because it's so definitive. We know what the hyper launch rates are. We know when ULA is expecting us to get done. And when I say expecting, I mean, needing us to get this thing out the door to them with a very high degree of quality and there's no room for error.

但是，就 Mark 54 的新訂單而言，其他項目已經推出，紅外搜索坡道和這個（聽不清）彈藥項目的軌道坡道。從現在到我告訴你的時間，這些是將繼續推動針頭的事情，嘿，我們能夠在給定的季度內運送 24 個 TAIMU，好嗎？所以沒有曲棍球棒。沒有步進功能。這是——你會看到穩步改善。我以 TAIMU 製作為例，因為它非常明確。我們知道超級發射率是多少。我們知道 ULA 期望我們什麼時候完成。當我說期待時，我的意思是，需要我們以非常高的質量把這個東西帶到他們面前，沒有錯誤的餘地。

But the reality is, we talked about this book-to-bill 1.2, and we are going to be giving you some color on that going forward. The other programs are there to continue to close the gap. And we ultimately believe that TAIMU will be a bit of icing on the cake. But between now and then, you're going to see continued signs of growth. And in the quarter, we just forecasted, that's what we've said.

但現實是，我們討論了這個 book-to-bill 1.2，我們將為您提供一些未來的顏色。其他計劃將繼續縮小差距。而我們最終相信TAIMU會是錦上添花的一點。但從現在到那時，你會看到持續增長的跡象。在本季度，我們剛剛預測，這就是我們所說的。

Okay. Fair enough. That's a great explanation. My last quick question for both of you. The stock at the valuation that it's been trading at in the recent past year, fairly low, and I think people are worried about a dilutive capital raise. You talked about the path and potential timing of breakeven. We've got a potential divestiture that should yield some amount of money. I don't know how to speculate on that. You're not going to tell us what that is. But with the things that you know, what do you think the odds are of having to raise external equity capital versus being self-funded so you get to breakeven?

好的。很公平。這是一個很好的解釋。我要問你們兩個的最後一個快速問題。該股票的估值與最近一年的交易價格相當低，我認為人們擔心會稀釋融資。你談到了盈虧平衡的路徑和潛在時機。我們有一個潛在的資產剝離，應該會產生一些錢。我不知道如何推測。你不會告訴我們那是什麼。但是，就您所知，您認為必須籌集外部股權資本與自籌資金以實現收支平衡的可能性有多大？

Yes. That's really not something I can comment on today. Obviously, with the capital levels, the way that we are or where we're at, you look at what Wall Street thinks. And on 1 hand, I think there's a view that. Well, I may get to see this thing on the bottom if we're on the way down if there's a raise. But on the other hand, there are, say, deep value longs that say, well, we need to make sure this thing is funded so that we don't have a problem that we can see our investment thesis play out. And so it's probably not something I feel comfortable commenting on today.

是的。這真的不是我今天可以評論的事情。顯然，對於資本水平、我們現在的方式或我們所處的位置，你看看華爾街是怎麼想的。一方面，我認為有一種觀點認為。好吧，如果我們在加薪的情況下下降，我可能會在底部看到這個東西。但另一方面，比如說，深度價值多頭說，好吧，我們需要確保這件事得到資助，這樣我們就不會遇到我們可以看到我們的投資論點發揮作用的問題。因此，我今天可能不想對此發表評論。

This concludes the Q&A session. I'd now like to turn the call back over to Jeff Rittichier for any closing remarks.

問答環節到此結束。我現在想將電話轉回給 Jeff Rittichier 以聽取任何結束語。

Well, I just was by thanking all of you for your interest in EMCORE. And as I usually do, I want to recognize the team for the absolute dogged efforts and perseverance as we reinvent the company as an aerospace and defense business. And thank you all for joining us today.

好吧，我只是感謝大家對 EMCORE 的興趣。和往常一樣，我想表彰團隊在我們將公司重塑為航空航天和國防企業時所付出的絕對頑強努力和毅力。感謝大家今天加入我們。

Thank you. That concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。