(EMKR) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the EMCORE Corporation Fiscal 2023 Second Quarter Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Tom Minichiello, Chief Financial Officer. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 EMCORE 公司 2023 財年第二季度收益電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在我想將會議交給今天的發言人、首席財務官 Tom Minichiello。請繼續。

Thank you. Good afternoon, everyone, and welcome to our conference call to discuss EMCORE's fiscal 2023 second 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 a discussion of our business highlights. I will then update you on our financial results, and we'll conclude by taking questions. 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.

謝謝。大家下午好，歡迎參加我們的電話會議，討論 EMCORE 2023 財年第二季度業績。我們今天下午發布的新聞稿發佈在我們的網站 emcore.com 上。在本次電話會議上，EMCORE 總裁兼首席執行官 Jeff Rittichier 將首先討論我們的業務亮點。然後我將向您介紹我們的財務業績的最新情況，最後我們將回答問題。在開始之前，我們想提醒您，本文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當前對影響業務的未來事件和趨勢的預期和預測。

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. 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.

此類前瞻性陳述包括對未來業績的預測、有關計劃、戰略、業務前景以及業務和我們經營所在市場趨勢變化的陳述。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，並受到已知和未知的商業、經濟和其他風險和不確定性的影響，可能會導致實際結果、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所明示或暗示的內容存在重大差異。

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.

我們提醒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 SEC 網站 sec.gov 上提供的公司文件中，包括標題為“風險因素”的部分。公司年度報告表格 10-K。公司不承擔更新任何前瞻性陳述以使此類陳述符合實際結果或我們期望的變化的義務，除非適用法律或法規要求。

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. With that, I'll now turn the call over to Jeff.

此外，本次電話會議還將提及非公認會計準則財務指標，我們認為這些指標為管理層和投資者提供了有意義的補充信息。非公認會計準則指標反映了公司核心的持續經營業績，並有助於跨報告期間進行比較。我們鼓勵投資者審查這些非公認會計準則衡量標準，以及這些衡量標準與我們新聞稿中最具可比性的公認會計準則衡量標準的解釋和調節。這樣，我現在將把電話轉給傑夫。

Thank you, Tom, and good afternoon, everyone. In Q2, EMCORE made significant progress in its transformation into an aerospace and defense business. Inertial Navigation grew 21% over the previous quarter to $24.3 million, driven by strong performances from our Tinley Park, Budd Lake and Alhambra FOG operations. Consolidated revenue totaled $26.8 million, which was up 7% from Q1 '23. Aerospace and Defense generated 94% of revenue. Inertial Navigation was 90%. Broadband overall was 6%. Defense Opto was 4% and CATV represented less than 1.5% of our top line. There were encouraging improvements in the business as it continued to work through the operating challenges of a significant transformation, generating a GAAP operating loss of $12.2 million.

謝謝你，湯姆，大家下午好。第二季度，EMCORE在向航空航天和國防業務轉型方面取得了重大進展。得益於 Tinley Park、Budd Lake 和 Alhambra FOG 業務的強勁表現，慣性導航業務比上一季度增長了 21%，達到 2,430 萬美元。合併收入總計 2680 萬美元，比 23 年第一季度增長 7%。航空航天和國防創造了 94% 的收入。慣性導航為 90%。寬帶整體佔比為 6%。 Defense Opto 占我們收入的 4%，CATV 占我們收入的不到 1.5%。隨著公司繼續應對重大轉型的運營挑戰，業務取得了令人鼓舞的進步，產生了 1,220 萬美元的 GAAP 運營虧損。

Our non-GAAP operating loss and adjusted EBITDA both remained roughly flat at a negative $8 million and negative $6.5 billion, respectively. Essentially, the improvements in gross margin and revenue in aerospace and defense were erased by the continued erosion of Broadband. The restructuring that we announced 2 weeks ago represents the logical conclusion to the end of the Broadband era at EMCORE. As we pointed out in our announcement, we made a determined effort to sell the Broadband and Defense Opto businesses, which started last September.

我們的非 GAAP 運營虧損和調整後 EBITDA 均大致持平，分別為負 800 萬美元和負 65 億美元。從本質上講，航空航天和國防領域毛利率和收入的改善被寬帶的持續侵蝕所抵消。我們兩週前宣布的重組代表了 EMCORE 寬帶時代結束的邏輯結論。正如我們在公告中指出的那樣，我們堅定地努力出售去年九月開始的寬帶和國防光電業務。

Although we had significant interest, which manifested itself in a signed letter of intent and term sheet, we could not reach a definitive agreement or close the transaction. Historically, EMCORE's Board has made numerous attempts to sell the Broadband business beginning all the way in 2014, employing different banks at multiple points in time over the past 9 years. The Inertial Navigation business continued to grow both organically and through M&A during the period, finally reaching the point where EMCORE became 2 distinctly different companies.

儘管我們有很大的興趣，這在簽署的意向書和條款清單中得到了體現，但我們無法達成最終協議或完成交易。從歷史上看，EMCORE 董事會從 2014 年開始就曾多次嘗試出售寬帶業務，在過去 9 年的多個時間點僱用了不同的銀行。在此期間，慣性導航業務繼續通過有機增長和併購增長，最終使 EMCORE 成為兩家截然不同的公司。

In this tale of 2 companies, the Inertial Navigation and Broadband businesses developed with independent personnel and assets. The loan intersection of these 2 businesses was the Indium Phosphide wafer fab, which is being shut down as part of the actions we announced. However, we prepared for this decision by building a significant stockpile of Indium Phosphide chips for our FOG products and consolidating our chip making operations for Quartz MEMS and lithium niobate in Concord. In summary, the actions we've taken effectively carve out the assets and other costs in the Broadband business from EMCORE without affecting Inertial Navigation. EMCORE is now a pure play in Inertial Navigation.

在這兩家公司的故事中，慣性導航和寬帶業務是通過獨立的人員和資產開發的。這兩項業務的貸款交叉點是磷化銦晶圓廠，作為我們宣布的行動的一部分，該工廠正在關閉。然而，我們為這一決定做好了準備，為我們的 FOG 產品建立了大量的磷化銦芯片庫存，並在 Concord 整合了我們的石英 MEMS 和鈮酸鋰芯片製造業務。總之，我們採取的行動有效地從 EMCORE 中剝離了寬帶業務中的資產和其他成本，而不影響慣性導航。 EMCORE 現在是純粹的慣性導航領域。

This transformation is really just the beginning of the next set of changes in our manufacturing operations. Many of the improvements that we made in automated assembly for cable television that resulted in a reduction in fixed assets, improved productivity and profitability will now be applied to Inertial Navigation. Over the next few years, you should expect to see a reduction in the manufacturing floor space we require, a reduction in inventory and improvements in profitability. Our final objective for broadband is to serve our customers' last-time buy requirements and ensure an orderly exit from the business for customers and employees alike.

這種轉變實際上只是我們製造業務下一系列變革的開始。我們在有線電視自動化裝配方面所做的許多改進導致了固定資產的減少、生產率和盈利能力的提高，現在將應用於慣性導航。在接下來的幾年裡，您應該會看到我們所需的製造佔地面積減少、庫存減少和盈利能力提高。我們寬帶的最終目標是滿足客戶最後一次購買的要求，並確保客戶和員工有序退出業務。

We are still processing last time buy orders but believe that the total amount should be approximately $10 million, which will ship over the next 2 quarters or so. Turning now to Aerospace and Defense. I'll begin my comments by stating that we had strong performance in our Space and Navigation, Tinley Park and Alhambra operation. Q2's book-to-bill was a little low at 0.85, but several significant orders were pushed out due to contracting priorities inside of the DoD. We expect the book-to-bill will be approximately 1.2 for the June quarter. Demand was solid across the board with civil aviation seen a surprising upswing.

我們仍在處理上次採購訂單，但相信總金額應約為 1000 萬美元，將在未來 2 個季度左右發貨。現在轉向航空航天和國防。我首先要指出的是，我們在空間與導航、廷利公園和阿罕布拉業務方面表現強勁。第二季度的訂單出貨比略低，為 0.85，但由於國防部內部的合同優先事項，一些重要訂單被推遲。我們預計 6 月份季度的訂單出貨比約為 1.2。需求全面強勁，民航業​​出現令人驚訝的增長。

We also received orders for new UAV platforms, which are expected to total $5.6 million over the next few months as full funding is released in parts. We also booked significant follow-on business for the fiber optic gyros that control targeting tourists from 2 important customers. BAE's armored multipurpose vehicle program is continuing to pick up momentum as it heads into full rate production. International bookings were strong for turret-based platforms, stemming from our strong position in AMPV, CROs and Escribano's Guardian 2 programs.

我們還收到了新無人機平台的訂單，預計未來幾個月總金額將達到 560 萬美元，因為全額資金將分部分發放。我們還為控制 2 個重要客戶的遊客的光纖陀螺儀預訂了重要的後續業務。隨著進入全速生產，BAE 的裝甲多用途車輛項目繼續保持強勁勢頭。由於我們在 AMPV、CRO 和 Escribano 的 Guardian 2 項目中的強勢地位，基於砲塔的平台的國際預訂量很強勁。

On the naval side of our business, we received new orders for the next-generation Mark 54 lightweight torpedo IMUs and continue to ship against our strong Mark 48 torpedo backlog. New torpedo programs are emerging and we are being called in to leverage our expertise in the demanding vibration environments of undersea weapons. On the precision guided munitions side of things, we were slowed down a little bit getting export licenses but are working with our customers to qualify products with less restrictive licensing requirements. Beyond program capture, we are seeing important signs of acceleration in key programs into the low rate of initial production phase, which is a key indicator of long-term growth.

在我們的海軍業務方面，我們收到了下一代 Mark 54 輕型魚雷 IMU 的新訂單，並繼續根據我們大量的 Mark 48 魚雷積壓訂單發貨。新的魚雷項目不斷湧現，我們被要求利用我們在水下武器的苛刻振動環境中的專業知識。在精確制導彈藥方面，我們在獲得出口許可證方面放慢了一點，但正在與我們的客戶合作，以限制許可要求較少的產品來鑑定產品。除了節目捕獲之外，我們還看到關鍵節目加速進入初始生產階段低速的重要跡象，這是長期增長的關鍵指標。

In particular, infrared search and track has become a key area of focus and our multiple design wins in this application and the benefit. Our IRST product has now achieved an important production readiness milestone with Boeing, Lockheed and NAVAIR, and we are ramping up production for these important deployments on the F/A-18 Hornet. The space and navigation team has built multiple to inertial measurement units in support of the design, integration and qualification as it continues to meet shipment targets per board. These 2 systems are critical to the launch schedule for United Launch Alliance.

特別是紅外搜索和跟踪已成為重點關注領域，我們的多項設計在該應用中獲勝並獲益。我們的 IRST 產品現已與波音、洛克希德和 NAVAIR 一起實現了重要的生產就緒里程碑，並且我們正在為 F/A-18 大黃蜂上的這些重要部署提高產量。空間和導航團隊已經構建了多個慣性測量單元，以支持設計、集成和鑑定，以繼續滿足每塊板的出貨目標。這兩個系統對於聯合發射聯盟的發射時間表至關重要。

Our expectation is to complete qualification late in the calendar year to enable significant volume builds and launches going forward. When these products hit full production, they are expected to produce $20 million to $25 million of revenue per year and help significantly improve gross margins. QMEMs had a nice uptick in shipments this quarter, but margin didn't scale quite as well as we expected, largely because of the timing of certain charges, which can be lumpy. As the entire company moves to its new ERP system in the coming months, we expect that these fluctuations will be less pronounced.

我們的期望是在今年晚些時候完成資格認證，以實現未來的大量生產和發布。當這些產品全面投產時，預計每年將產生 2000 萬至 2500 萬美元的收入，並有助於顯著提高毛利率。本季度 QMEM 的出貨量出現了不錯的增長，但利潤率並未達到我們的預期，這主要是因為某些收費的時間安排可能不穩定。隨著整個公司在未來幾個月轉向新的 ERP 系統，我們預計這些波動將不再那麼明顯。

Before I move on to guidance, I'd like to provide some comments on the recent acquisitions and our integration programs, which are a key area of focus this year. Both the L3 Harris Space and Navigation business as well as the former KVH Inertial businesses are performing well and are clearly accretive. On the integration side of these acquisitions, Space & Navigation is running a common ERP system with the rest of EMCORE and has made the cutover from L3 Harris IT systems with resulting reduction in TSA costs.

在繼續提供指導之前，我想對最近的收購和我們的整合計劃提供一些評論，這是今年的重點關注領域。 L3 Harris 空間和導航業務以及前 KVH Inertial 業務均表現良好，並且明顯具有增值性。在這些收購的整合方面，Space & Navigation 正在與 EMCORE 的其他公司運行一個通用的 ERP 系統，並從 L3 Harris IT 系統進行了切換，從而降低了 TSA 成本。

We are expecting the transition for Chicago to complete the June quarter, but we've already moved the Rhode Island engineering team out of KVH's building and have now switched both the Chicago and Middletown offices over to the EMCORE IT domain. We expect to integrate Camstar into Concord in Chicago after we complete the ERP upgrades and exit transition services. Ultimately, this will make EMCORE more efficient and will help us improve our processes, cost and inventory. Turning now to guidance in the current quarter.

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遷出 KVH 大樓，並且現在已將芝加哥和米德爾敦辦事處轉移到 EMCORE IT 域。我們預計在完成 ERP 升級和退出過渡服務後，將 Camstar 整合到芝加哥的 Concord 中。最終，這將使 EMCORE 更加高效，並幫助我們改進流程、成本和庫存。現在轉向本季度的指導。

We expect that semiconductor shortages will slow down production for some products, tamping down growth a bit for Inertial Nav in the June quarter. Additionally, we are moving forward on our last time builds from a standing start and have not yet scheduled production dates. Excluding these last-time buy builds, we expect revenue in the $25 million to $27 million range for the June quarter, of which $24 million to $26 million is the Inertial Navigation business. With that, I will turn the call back over to Tom.

我們預計半導體短缺將減緩某些產品的生產，從而略微抑制慣性導航在六月季度的增長。此外，我們正在從頭開始進行最後一次構建，尚未安排生產日期。排除這些最後購買的產品，我們預計 6 月份季度的收入將在 2500 萬美元至 2700 萬美元之間，其中 2400 萬美元至 2600 萬美元是慣性導航業務。這樣，我會將電話轉回給湯姆。

Thank you, Jeff. Consolidated revenue for fiscal 2Q grew 7% on a sequential quarter basis to $26.8 million despite the soon-to-be shutdown Broadband segment contributing only $1.6 million or about half of the already low level for this business the quarter before. A&D segment revenue grew 16% sequentially to $25.2 million. More importantly, Inertial Navigation, which is the A&D segment without the Defense Optoelectronic products grew by $4.3 million or 21% to $24.3 million and was 90% of total EMCORE revenue.

謝謝你，傑夫。儘管即將關閉的寬帶部門僅貢獻了 160 萬美元，約為上一季度本已較低水平的一半，但第二財季的綜合收入環比增長了 7%，達到 2680 萬美元。 A&D 部門收入環比增長 16%，達到 2,520 萬美元。更重要的是，慣性導航（不包括國防光電產品的 A&D 部門）增長了 430 萬美元（即 21%），達到 2430 萬美元，佔 EMCORE 總收入的 90%。

All product lines within Inertial Nav were up in the March quarter when compared to the December quarter, QMEMS and the hamburg-based FOG business performed well and the 2 most recent acquisitions in Tinley Park and Budd Lake both turned in excellent results. Combined, Tinley Park and Budd Lake accounted for 64% of Inertial Nav revenue. Moreover, both acquisitions continue to be nicely accretive for the bottom line. 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 improved in the March quarter to 24%, up from 22% in the December quarter, driven primarily by the increased revenue. Conversely, the extremely low level of Broadband revenue dragged down the overall consolidated margin to 16%.

與去年 12 月季度相比，Inertial Nav 旗下所有產品線在 3 月份季度均有所增長，QMEMS 和位於漢堡的 FOG 業務表現良好，最近在 Tinley Park 和 Budd Lake 的兩項收購均取得了優異的業績。廷利公園 (Tinley Park) 和巴德湖 (Budd Lake) 合計佔慣性導航收入的 64%。此外，這兩項收購繼續很好地增加了利潤。現在讓我談談其餘的經營業績，其中的重點將是非公認會計準則的基礎上。 A&D 毛利率從 12 月份季度的 22% 上升至 3 月份季度的 24%，這主要是由於收入增加所致。相反，極低的寬帶收入水平拖累了整體綜合利潤率至16%。

Operating expenses were $12.4 million in fiscal 2Q compared to $11.8 million in the prior quarter. The $600,000 increase was largely due to material expenses for development work on FOG programs. On a consolidated basis, the operating loss in the March quarter was $8.1 million compared to $8 million in the quarter before. Adjusted EBITDA was flat at negative $6.5 million. Net loss was $8.3 million or $0.18 per share compared to $8.2 million or $0.22 per share in fiscal 1Q. I Shifting to the GAAP results for a moment.

第二財季運營支出為 1,240 萬美元，上一季度運營支出為 1,180 萬美元。 600,000 美元的增長主要是由於 FOG 項目開發工作的材料費用。綜合來看，三月份季度的運營虧損為 810 萬美元，而上一季度的運營虧損為 800 萬美元。調整後 EBITDA 持平，為負 650 萬美元。淨虧損為 830 萬美元，即每股 0.18 美元，而第一財季淨虧損為 820 萬美元，即每股 0.22 美元。我暫時轉向 GAAP 結果。

Fiscal 2Q net loss was $12.2 million or $0.27 per share. This included $1.3 million of transitional expenses stemming from last year's acquisitions and $900,000 in litigation expenses that included a $500,000 payable as part of the settlement agreement. Turning to the balance sheet. We had cash of $24.8 million at March 31 compared to $24.2 million at December 31. The $600,000 net increase included $15.4 million in net cash proceeds received from the financing completed in February, offset by the following uses of cash during the quarter.

第二財季淨虧損為 1,220 萬美元，即每股虧損 0.27 美元。其中包括去年收購產生的 130 萬美元過渡費用和 90 萬美元訴訟費用，其中包括作為和解協議一部分應付的 50 萬美元。轉向資產負債表。截至 3 月 31 日，我們的現金為 2,480 萬美元，而截至 12 月 31 日為 2,420 萬美元。淨增長 60 萬美元包括從 2 月份完成的融資中收到的 1,540 萬美元現金收益淨額，被本季度以下現金使用所抵消。

$6.5 million adjusted EBITDA, $4.8 million for working capital related to normal business operations, $1.4 million for acquisition transaction costs, $400,000 for litigation-related expenses, $1 million used for financing activities and $700,000 for CapEx. Before we get to your questions, I'd like to review several items related to our recently announced restructuring program. This plan includes: one, the shutdown of all of EMCORE's linear optics operations, which consists of cable TV, chips, wireless and sensing and Defense Optoelectronic product lines as well as the closure of the indium Phosphide wafer fab. -- second, a related reduction in force of approximately 22% of our total workforce or about 100 employees, primarily in Alhambra and China.

650 萬美元調整後 EBITDA、480 萬美元用於與正常業務運營相關的營運資金、140 萬美元用於收購交易成本、40 萬美元用於訴訟相關費用、100 萬美元用於融資活動以及 70 萬美元用於資本支出。在回答您的問題之前，我想回顧一下與我們最近宣布的重組計劃相關的幾個項目。該計劃包括：一、關閉EMCORE的所有線性光學業務，包括有線電視、芯片、無線、傳感和國防光電產品線，以及關閉磷化銦晶圓廠。 ——其次，我們將裁員約 22%，即約 100 名員工，主要是在阿罕布拉和中國。

This action has already begun with expected completion by around the end of July. Third, reducing our facility footprint by approximately 25% by vacating a portion of the space currently in use in Alhambra and Concord as well as exiting our remaining small facility in China. These actions are anticipated to be completed by the end of September. For severance costs, which we anticipate will be a combination of accelerated stock vesting and cash over time, we expect to record a GAAP charge in the June quarter of around $2.1 million.

該行動已經開始，預計將於 7​​ 月底左右完成。第三，通過騰出阿罕布拉和康科德目前使用的部分空間以及退出我們在中國剩餘的小型設施，將我們的設施佔地面積減少約 25%。這些行動預計將於九月底完成。對於遣散費，我們預計將是加速股票歸屬和隨著時間的推移現金的組合，我們預計 6 月份季度的 GAAP 費用將達到約 210 萬美元。

We also anticipate yet to be finalized GAAP charges for facility consolidation, timing of which will coincide with the dates we actually vacate the various spaces. -- the bulk of which is likely to happen during the September quarter. From a P&L perspective, once the program is fully completed, the restructuring should reduce cost and expenses by a total of at least $12 million annually and is predominantly attributable to the elimination of Broadband.

我們還預計設施整合的公認會計原則費用尚未最終確定，其時間將與我們實際騰出各個空間的日期一致。 ——其中大部分可能發生在九月季度。從損益角度來看，一旦該計劃完全完成，重組每年將減少總計至少 1200 萬美元的成本和開支，這主要歸因於寬帶的取消。

It's expected that the activities related to the shutdown of the Broadband segment and the Defense Optoelectronics product line will eventually be reported as discontinued operations. Timing of this will depend largely on the extent to which we have completed production for last -- for customer last time buys. Our results of operations going forward from that point will consist solely of our Inertial Navigation business, including lithium niobate and quartz chips used in our FOG and Quartz MEMS products. And with that, we are now opening up the call for your questions.

預計與關閉寬帶部門和國防光電子產品線相關的活動最終將被報告為已停止運營。時間安排在很大程度上取決於我們為客戶上次購買完成的最後生產的程度。從那時起，我們的經營業績將僅包括我們的慣性導航業務，包括我們的 FOG 和石英 MEMS 產品中使用的鈮酸鋰和石英芯片。至此，我們現在開始徵求您的提問。

At this time, we will conduct the question-and-answer session. (Operator Instructions) Our first question comes from Richard Shannon from Craig-Hallum.

這時，我們將進行問答環節。 （操作員說明）我們的第一個問題來自 Craig-Hallum 的 Richard Shannon。

I'm not sure if I have a good sequence of these, maybe I'll just kind of go rush out over these. Jeff, first question for you. As I catch correctly that you have not baked any last-time buys into the revenue guidance for this quarter?

我不確定我是否有一個好的順序，也許我會匆匆忙忙地完成這些。傑夫，第一個問題。正如我正確地理解的那樣，您沒有將任何最後一次購買納入本季度的收入指導中？

That is correct. We're essentially in a standing start here. Some of this is going to require semiconductors where we don't have the lead time completely squared away. And we are looking at a substantial number of chips that are going to go through the fab and you've got time for wafer qual and other things that you just can't speed up. So that's why we haven't really baked it in.

那是對的。我們基本上處於起步階段。其中一些需要半導體，而我們沒有完全確定的交貨時間。我們正在研究大量將要通過晶圓廠的芯片，你有時間進行晶圓質量和其他你無法加快速度的事情。所以這就是為什麼我們還沒有真正把它放進去。

Okay. Fair enough then. I think you referred to some shortages of components coming in that hurt your Q MEMS products. Was it QMEMS. So is that the right one, Jeff?

好的。那麼就足夠了。我想您提到了一些組件的短缺，這損害了您的 Q MEMS 產品。是QMEMS嗎？那麼這是正確的選擇嗎，傑夫？

No. Actually, it isn't. It's not going to hit us a bit late this quarter. And it's the sort of thing where you've got circuit boards that were supposed to arrive end of April, beginning of May. And now we're getting June, July dates and we finish for the finished assemblies and if that happens, we expect it will going to push some revenue out into the September quarter.

不，事實上並非如此。本季度末不會對我們造成影響。電路板應該在四月底、五月初到達。現在我們正在確定 6 月、7 月的日期，並且我們完成了成品組裝，如果發生這種情況，我們預計它將把一些收入推到 9 月份的季度。

Okay. I suspect for most of your products, we probably wouldn't consider these boards to be commodities. Are these specialized in some way? And can you describe the constraints and there is this something that's kind of a onetime thing? Or do you have continued risk from this?

好的。我懷疑對於你們的大多數產品，我們可能不會將這些板視為商品。這些在某種程度上是專門的嗎？你能描述一下這些限制嗎？有什麼東西是一次性的嗎？或者您是否因此而持續面臨風險？

There's certainly nothing you can read into it. If I had to guess, it would be FPGAs because they've been exceedingly difficult, and there's probably some high [rel] components in there, but that's just, call it, an educated guess.

當然，你讀不到任何內容。如果我不得不猜測，那將是 FPGA，因為它們非常困難，而且其中可能有一些高 [rel] 組件，但這只是一個有根據的猜測。

Maybe kind of a 2-part question. I know you said this on the last earnings call that you just repeated here today about expecting a book-to-bill of about 1.2. And I can't remember if this was referring to A&D in total or just in the INS business. But can you kind of give us a sense of where these bookings are coming from? And what kind of lead times do those come before they hit the revenue line?

也許是一個由兩部分組成的問題。我知道您在上次財報電話會議上說過這一點，今天您又在這裡重申了預計訂單出貨比約為 1.2。我不記得這是指整個 A&D 還是僅指 INS 業務。但您能否讓我們了解一下這些預訂的來源？在達到收入線之前，這些產品的交貨時間是多少？

When you say lead times -- oh, I probably, okay. So time to build. Some of it you'll actually see virtually immediately as soon as the orders are less because there's for products that are normally rolling through the assembly lines. And it's a wide variety of things. So I'll give you an example. One of the drones that we got a big win on and there were a couple -- we got only about 1/3 of the order that we were expecting.

當你說交貨時間時——哦，我可能，好吧。所以是時候建造了。其中一些實際上是在訂單減少後立即看到的，因為這些產品通常是通過裝配線滾動的。事情種類繁多。所以我給你舉個例子。我們大獲全勝的其中一架無人機有幾架——我們只得到了我們預期訂單的 1/3 左右。

And as we talk to supply chain in our customer, they said, "Hey, we just haven't had all the funding released from the particular branch of the service that buys these things. And that's just sort of common. And what you're seeing to a degree is just jocking around of dollars partially because of the way that expenditures are set up for the Ukraine, right? So it has caused a bit more reshuffling of dollars than normal, but we're not expecting this to be a long-term thing.

當我們與客戶的供應鏈交談時，他們說，“嘿，我們只是沒有從購買這些東西的特定服務部門釋放所有資金。這很常見。而你'我們看到在某種程度上只是在玩弄美元，部分原因是烏克蘭的支出安排方式，對嗎？因此，這導致了美元的洗牌比正常情況要多一些，但我們並不認為這會成為一場長期的事情。

Fair enough. Maybe a couple of more questions for me, I'll jump out of line here for a bit. So you talked a fair amount about the Team program, and they repeat your comments from last quarter about hopefully qualifying by the end of this year and getting to a nice run rate, hopefully, at some point, after that at a very healthy level. But maybe in the interim here, how do we think about kind of the progress here over the next few quarters?

很公平。也許還有幾個問題要問我，我會在這裡稍微跳一下。所以你談了很多關於團隊計劃的事情，他們重複了你上個季度的評論，希望在今年年底之前獲得資格，並希望在某個時候達到一個非常健康的水平，並達到一個不錯的運行率。但也許在此期間，我們如何看待未來幾個季度的進展？

I think you've mentioned in the past, hoping to get to a breakeven point, which I believe you're looking at somewhere in the $30 million range or a little bit more. How do we think about the kind of linearity and the kind of the source of drivers here from your guidance to getting to that breakeven point? And do you think it can be by the December quarter? Or -- and if not, when do you kind of see that happen?

我想你過去曾提到過，希望達到盈虧平衡點，我相信你正在考慮 3000 萬美元左右或更多一點。我們如何考慮從您的指導到達到盈虧平衡點的線性類型和驅動因素來源類型？您認為可以在 12 月季度之前實現嗎？或者——如果沒有，你什麼時候會看到這種情況發生？

Yes. Well, I'll answer this in part, I'll get the second part about breakeven to Tom. But essentially, you're already starting to see it. So, the Team program is currently being run on time and materials. And then on top of that, there is an additional contract for us to buy long lead materials for, call it, roughly the first year's worth of production. And that's a pretty significant amount of money. It's, I don't know, $8 million, $9 million, something like that.

是的。好吧，我將部分回答這個問題，我會將有關盈虧平衡的第二部分交給湯姆。但本質上，你已經開始看到它了。因此，團隊計劃目前正在按時、按材料進行。除此之外，我們還有一份額外的合同，用於購買長鉛材料，大致相當於第一年的產量。這是一筆相當可觀的錢。我不知道，800 萬美元，900 萬美元，類似的東西。

And so what you're seeing is some of that material coming in, it will become units next year even though we don't have the purchase orders for the assemblies now because the final price won't be set until we're done with qualification. And then you'll see it return to a normal sort of "Hey, we're going to order x number of these, and there's a fixed price associated with them."

所以你看到的是一些材料進來了，明年它將成為單位，儘管我們現在沒有組件的採購訂單，因為在我們完成之前不會確定最終價格資格。然後你會看到它恢復到正常的狀態，“嘿，我們要訂購x數量的這些，並且有一個與它們相關的固定價格。”

So what you're going to see over the next couple of quarters, and I had mentioned this before, but I didn't provide a lot of explanation is a nice gradual ramp. And that ramp is going to come from, first, let's call it, material purchases, increased amounts of activity, time and materials, engineering and manufacturing engineering, ultimately, the assembler and technicians over the next 2 quarters.

因此，在接下來的幾個季度中，您將看到一個很好的漸進式增長，我之前曾提到過這一點，但我沒有提供太多解釋。這種增長首先將來自材料採購、活動量、時間和材料、工程和製造工程的增加，最終來自未來兩個季度的裝配工和技術人員。

And so you're not going to see a step function in this. And so those are the things that you're looking for. Again, when you think about it, though, and you say, okay, well, EMCORE's already out buying, and this is under contract with space and sensors and ultimately, the ULA, is already out buying long-lead materials that go all the way through '24, I think that's a pretty strong indicator of where the program is.

所以你不會在其中看到階躍函數。這些就是您正在尋找的東西。再說一次，當你想到這一點時，你會說，好吧，好吧，EMCORE 已經採購了，而且這是與空間和傳感器簽訂的合同，最終，ULA 已經採購了所有的長周期材料。到 24 年為止，我認為這是一個非常有力的指標，表明該計劃的進展情況。

Fair enough. That's good. Good explanation there. A couple of quick questions for Tom, and I'll jump out of the line here. First of all, what kind of shares outstanding are you expecting for this June quarter? And as you get increased sales within either A&D or INS business, which everyone referred to, what kind of margin fall-through should we see there?

很公平。那挺好的。那裡有很好的解釋。有幾個問題要問湯姆，我就先插隊了。首先，您預計本季度的已發行股票是什麼樣的？當每個人都提到的 A&D 或 INS 業務的銷售額增加時，我們應該看到什麼樣的利潤下降？

Richard was the first one shares outstanding by June. Yes. So that -- so this quarter, you can see it's an average because of the shares that we issued in February. But when it's all done, you should be around 53.5 million shares.

理查德是六月份第一批已發行的股票。是的。所以，這個季度，你可以看到這是我們二月份發行的股票的平均值。但全部完成後，您的股票數量應該約為 5350 萬股。

Okay. Great. on the incremental (inaudible) fall through?

好的。偉大的。增量（聽不清）失敗？

Yes. So we moved from '22 to '24 on over $4 million in increase in revenue in A&D. And that jump in margin probably would have been a little bit better than that had it not been for some other items that Jeff alluded to in his prepared script. So with growth in this quarter, not as much as last quarter, but still growing. You're looking at high 20% and 27%, 28% in that range, all the things being equal. But the key -- by the way, that's for Inertial Nav/A&D. That's not for the consolidated company.

是的。因此，我們從 22 年轉向 24 年，A&D 收入增加了超過 400 萬美元。如果不是傑夫在他準備的劇本中提到的其他一些項目，那麼利潤率的躍升可能會比這要好一些。因此，本季度的增長雖然不如上季度，但仍在增長。在所有條件相同的情況下，您會看到該範圍內的高 20%、27%、28%。但關鍵是——順便說一句，這是慣性導航/A&D 的關鍵。這不適用於合併後的公司。

Yes. The other piece, then, Richard, I think you were asking about was the breakeven point change relating to the restructuring and how that all plays out. I get that right, Richard?

是的。那麼，理查德，我想你問的另一件事是與重組相關的盈虧平衡點變化以及這一切如何進行。我沒聽錯，理查德？

Certainly, it was a question of interest for me, yes.

當然，這是我感興趣的問題，是的。

Okay. So it's lower. So after all the restructuring program is completed, and we are strictly an Inertial Navigation business, the OpEx profile changes. And so what used to be, call it, roughly about $11 million in gross profit needed to overcome OpEx, net of depreciation. That's now lower to, call it, 9.5%, somewhere in that range. So I think if you did just over $30 million, call it, $31 million in revenue and just over 30% in gross margin, that math would get you to a breakeven point for adjusted EBITDA.

好的。所以比較低。因此，在所有重組計劃完成後，我們嚴格來說是一家慣性導航企業，運營支出狀況發生了變化。因此，過去，扣除折舊後，需要大約 1100 萬美元的毛利潤來克服運營支出。現在已經低至 9.5%，就在這個範圍內。因此，我認為，如果你的收入略高於 3000 萬美元，即 3100 萬美元，毛利率略高於 30%，那麼調整後的 EBITDA 就會達到盈虧平衡點。

(Operator Instructions) Our next question comes to us from Brian Kinstlinger of AGP.

（操作員說明）我們的下一個問題來自 AGP 的 Brian Kinstlinger。

On the semiconductor shortage at Budd Lake, what is your confidence level that this won't impact the September or December quarters in a negative way?

關於巴德湖的半導體短缺問題，您對這不會對 9 月或 12 月季度產生負面影響的信心有多大？

Well, first of all, it's not the same thing. This is -- well, same thing. We think it's an isolated incident. It's not like the manufacturers come back and said, "Well, what we told you was 40 weeks is now 80 weeks." It's not that at all. It's 2 cards with a couple of common parts that have been pushed by 2 months. So -- and this is -- when I say it's an issue, now we're talking about something in the order of $0.5 million to $1 million worth of revenue.

嗯，首先，這不是同一件事。這是——嗯，同樣的事情。我們認為這是一起孤立事件。製造商不會回來說：“好吧，我們告訴你的是 40 週，現在是 80 週。”根本不是那樣的。這是兩張卡片，有幾個共同的部分，已經推出了兩個月。所以，當我說這是一個問題時，我們現在談論的是價值 50 萬到 100 萬美元的收入。

But if that would have occurred in the June quarter, we'd be looking at roughly 10% quarter-over-quarter growth or something like that. It's just not going to be quite that much because you've got visibility into knowing exactly what needs to ship, exactly when it needs to ship, and we're looking at material that's in circuit boards, and it just is what it is, right? I mean, I'm not the only guy talking about this.

但如果這種情況發生在 6 月份季度，我們預計季度環比增長率約為 10% 或類似水平。它只是不會那麼多，因為你可以清楚地知道需要運送什麼，何時需要運送，我們正在研究電路板中的材料，它就是這樣，正確的？我的意思是，我不是唯一一個談論這個問題的人。

Sure. So moving on to Precision Guided munition. You touched on that on the international piece. I know you had a large order that you shipped in December and you had talked about at that point, opening doors to larger orders, both internationally and domestically there and that you were qualifying in SDI170 with other defense contracts? Or maybe if you can provide some progress you're making there would be great.

當然。現在轉向精確制導彈藥。你在國際作品中談到了這一點。我知道你們有一筆大訂單，在 12 月份發貨，當時你們曾談到，為國際和國內更大的訂單敞開大門，並且你們與其他國防合同一起獲得了 SDI170 的資格？或者如果你能提供一些你正在取得的進展那就太好了。

Progress is fine. Again, what we said and we talked about domestic was domestic in terms of Turkey, where ASELSAN, ROKETSAN, TUBITAK, they have a different set of requirements for their internal programs, i.e., feeding the Turkish military and what they are allowed to sell in the outside world. And so we're qualified for export right now, and there's actually been some large opportunities for us. And even though we do not carry the most restricted form of license, which is ITAR. The Commerce Department has gotten some pushback from state.

進步就好了。再說一次，我們所說的和我們談到的國內是土耳其國內的，ASELSAN、ROKETSAN、TUBITAK，他們對內部計劃有一套不同的要求，即為土耳其軍隊提供食物以及他們被允許出售的東西外面的世界。所以我們現在就有資格出口，而且實際上我們有一些很大的機會。即使我們沒有最受限制的許可證形式，即 ITAR。商務部受到了來自各州的一些阻力。

And so some of the EAR licenses that we were expecting to get the business is ours, they just haven't come through. We don't have a hard nail on a couple of them, but keep pushing out the dates and working the problem. The potential solution is to go to a product that does not require a license. We have one that is right underneath the spec at which licensing is not required. And so that's the one that we're working on to replace the units that we've been working with. So I -- it's just -- it's a licensing thing. It happens in certain parts of the world, countries that were our friends before administrations change and their idea of who friends are changes, and we just have to live with it.

因此，我們原本希望獲得該業務的一些 EAR 許可證是我們的，但它們只是還沒有獲得。我們對其中幾個問題沒有硬性規定，但會繼續推遲日期並解決問題。潛在的解決方案是使用不需要許可證的產品。我們有一個符合規範的產品，不需要許可。這就是我們正在努力取代我們一直在使用的單元的一個。所以我——這只是——這是一個許可問題。這種情況發生在世界某些地區，在政府更迭之前是我們朋友的國家，以及他們對誰是朋友的看法發生了變化，我們只能忍受它。

Great. One follow-up and last one for me on [Camu]. You gave us some great details and it's great to see that you have are ordering for product or through 2024. You talked about milestones that you were going to expect to achieve in March. Can you share an update on those milestones that were hit and any details on them or be able to?

偉大的。我在 [Camu] 上發表了一篇後續文章，也是我的最後一篇文章。您向我們提供了一些重要的細節，很高興看到您正在訂購 2024 年之前的產品。您談到了您預計在 3 月份實現的里程碑。您能否分享有關已達到的里程碑的最新信息以及有關這些里程碑的任何詳細信息？

The only thing that I would say is that we're expecting to reach or hit our critical design review roughly in August. And so we're expecting to have integration complete by then. And that's been excellent to look for.

我唯一要說的是，我們預計大約在八月份達到或達到我們的關鍵設計審查。因此，我們預計屆時將完成整合。這非常值得尋找。

Our next question comes from the line of Richard Shannon with Craig Hallum.

我們的下一個問題來自理查德·香農和克雷格·哈勒姆的對話。

A couple of big picture questions for you, Jeff. First one, I'd love to get your sense of kind of the evolving geopolitical situation, especially as it impacts the United States DoD budget? And also internationally, if you think that's relevant and kind of the impact, positive or negative that you see with your portfolio today?

傑夫，有幾個大問題要問你。首先，我很想了解您對不斷變化的地緣政治局勢的看法，特別是它影響美國國防部預算的情況？在國際上，您是否認為這與您今天在您的投資組合中看到的相關影響（無論是正面還是負面）？

Well, great question. So the way that I see the current budgeting situation inside of the DoD is, there's just a lot of scrambling to reorient plans because when you talk about support given to foreign countries, usually tends to come right out of the stockpiles of the U.S. military. And then later on, they have to figure out how they're going to replenish it. So it's not like a case where, let's say, the U.S. government offers $10 million in aid to Ukraine and somebody is out there writing a check book.

嗯，很好的問題。因此，我對國防部內部當前預算狀況的看法是，有很多人爭先恐後地調整計劃，因為當你談論向外國提供的支持時，通常往往直接來自美國軍隊的庫存。然後，他們必須弄清楚如何補充它。因此，這不像美國政府向烏克蘭提供 1000 萬美元援助，而有人在那裡寫支票簿的情況。

No, they're counting the value of things that are essentially sent to Ukraine and then later on figuring out how to pay for replacements. So it's -- there's a lot of noise. There's a lot of shuffling around, but I'm not sure that I would read anything more into it than that. It just creates some short-term problems to push orders from one quarter into the next but it -- and it just is what it is.

不，他們正在計算基本上發送到烏克蘭的物品的價值，然後再計算如何支付替換品的費用。所以，有很多噪音。有很多混亂，但我不確定我是否會讀到比這更多的內容。它只會造成一些短期問題，將訂單從一個季度推到下一個季度，但事實就是如此。

But beyond that, as you take a look at the heightened sense of preparedness that I see when I go out and talk to international customers. When I look at who is interested in what I think that overall, the spending, let's call it, backdrop is going to be more aggressive. The sorts of things that our -- not just NATO countries but major non-NATO allies like, for example, Taiwan, the things that they're interested in, the number of them are only going up. And so the challenge is that for several of us that are sitting in the critical path of some of these things is to find a way to get the supply chain, the whole supply chain because we are part of larger weapons systems, organized to be able to supply that.

但除此之外，當你看看我出去與國際客戶交談時所看到的高度準備感。當我看看誰對我認為總體上感興趣的東西時，我們稱之為支出，背景將會更加激進。我們——不僅是北約國家，還有主要的非北約盟國，比如台灣，他們感興趣的東西，數量只會增加。因此，挑戰在於，對於我們中的一些人來說，處於其中一些事情的關鍵路徑上的是找到一種方法來獲得供應鏈，整個供應鏈，因為我們是更大的武器系統的一部分，組織起來能夠來提供那個。

So I think that the budget environment in general is very strong for products like ours. It's interesting when you take a look at -- give you one example, if you take a look at the amount of GPS jamming that is going on in the Ukraine the smart guys over in the Pentagon have taken a hard look at this and have extrapolated that to, well, what might happen if China decides to be more aggressive towards Taiwan. And I think that's resulted in a lot more emphasis on finding solutions in the Inertial Navigation space, where GPS denial is not a problem. So overall, there's -- the rising tide that lifts all boats in this area is certainly at play but in Inertial Nav, I think, even more so.

因此，我認為對於我們這樣的產品來說，總體預算環境非常強勁。舉個例子，如果你看看烏克蘭發生的 GPS 干擾程度，五角大樓的聰明人已經仔細研究了這一點並推斷出了這一點，這很有趣如果中國決定對台灣採取更強硬的態度，可能會發生什麼。我認為這導致人們更加重視在慣性導航領域尋找解決方案，其中 GPS 拒絕不是問題。因此，總的來說，上漲的潮水肯定會提升該地區所有船隻的水平，但我認為，在慣性導航中更是如此。

Okay. Great thoughts, sir, Jeff. And as we see this political football happening with our budget deficits, do you have any experience and what are your thoughts here on whether we get some -- if we get some sort of shutdown or even get close to it? Are there impacts to funding? Like I think you mentioned in some other program all the funding wasn't released. Do you see any potential issues from that happening here in the near term?

好的。偉大的想法，先生，傑夫。當我們看到這場政治足球隨著我們的預算赤字而發生時，你有什麼經驗嗎？你對我們是否會得到一些——如果我們發生某種形式的關閉甚至接近關閉——有什麼想法嗎？對資金有影響嗎？就像我認為您在其他一些計劃中提到的那樣，所有資金都沒有釋放。您認為短期內發生的任何潛在問題嗎？

Well, the game of chicken that constantly goes on with budgeting between 3 branches of government and usually 2 of them, it's certainly a concern. I doubt that either side of the aisle wants to see something like that happen. But it would certainly be concerning if it did. I can't imagine it would go on for very long. A solution would be reached, especially in light of what's going on in the banking world right now, putting U.S. creditworthiness on the line at a time like this.

好吧，在三個政府部門（通常是其中兩個部門）之間不斷進行預算制定的“膽小鬼遊戲”，這當然是一個令人擔憂的問題。我懷疑兩黨都希望看到這樣的事情發生。但如果確實如此，那肯定會令人擔憂。我無法想像這種情況會持續很長時間。將會達成一個解決方案，特別是考慮到銀行業目前正在發生的事情，在這樣的時刻，美國的信譽將受到威脅。

I can't imagine someone with a rational mind wanting to do that, but this is politics. So I don't have any well-formed thoughts, Richard, about how it would affect us. I think the overall concern about certain countries becoming more belligerent is going to outweigh most other factors in that analysis, though.

我無法想像有理性頭腦的人會這麼做，但這就是政治。所以，理查德，我對這將如何影響我們沒有任何明確的想法。不過，我認為對某些國家變得更加好戰的總體擔憂將超過該分析中的大多數其他因素。

All right. As always, I appreciate those thoughts, Jeff. I think that's all for me. I'll jump on the line again. Thanks.

好的。一如既往，我很欣賞這些想法，傑夫。我想這就是我的全部了。我會再次上線。謝謝。

Thank you. With that, I would like to now turn it back to Jeff Rittichier, Chief Executive Officer for closing remarks.

謝謝。現在，我想請首席執行官傑夫·里蒂奇爾 (Jeff Rittichier) 致閉幕詞。

Thank you. I'd like to thank all of you for your interest in EMCORE. And I do want to close my comments with a little bit longer set of points than I normally would. And that relates to our Broadband team. The Broadband team really led the way in Hybrid Fiber Coax technologies that allow the world's cable networks to grow from simple radio-based systems into the backbone of Internet services around the world. EMCORE's linear EML became the de facto standard for advanced CATV networks.

謝謝。我要感謝大家對 EMCORE 的關注。我確實想用比平時更長一點的觀點來結束我的評論。這與我們的寬帶團隊有關。寬帶團隊在混合光纖同軸電纜技術方面確實處於領先地位，該技術使世界各地的有線網絡能夠從簡單的基於無線電的系統發展成為全球互聯網服務的骨幹網。 EMCORE 的線性 EML 成為先進 CATV 網絡的事實上的標準。

And when COVID started to shut down everybody, network providers turned to EMCORE to upgrade the transmission networks that really made work from home a reality during the pandemic. Linear EML technology allowed the company to capture business from our competitors, generate significant profits and cash flow that allowed the company to make this transition to Aerospace and Defense, giving EMCORE a bright future. So to our Broadband team, I would simply say thank you all for your hard work and creativity through the years. And Tom and I want to wish you all the best of luck in your future endeavors.

當新冠疫情開始導致所有人停工時，網絡提供商求助於 EMCORE 來升級傳輸網絡，這在疫情期間真正使在家工作成為現實。線性 EML 技術使該公司能夠從競爭對手那里奪取業務，產生可觀的利潤和現金流，從而使該公司能夠向航空航天和國防領域轉型，從而為 EMCORE 帶來光明的未來。因此，對於我們的寬帶團隊，我只想對大家多年來的辛勤工作和創造力表示感謝。湯姆和我祝愿您在未來的事業中一切順利。

Thank you for your participation in today's conference.

感謝您參加今天的會議。