Identiv Inc (INVE) 2011 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the fourth-quarter 2011 Identive Group earnings conference call. My name is Carissa and I will be your operator for today.

女士們、先生們，大家好，歡迎參加Identive集團2011年第四季財報電話會議。我是今天的接線生卡麗莎。

At this time all participants are in a listen-only mode. Later we will conduct a question and answer session. (Operator Instructions). As a reminder this conference is being recorded for replay purposes. I would now like to turn the conference over to your host for today's call, Ms. Darby Dye, Director of Investor Relations. Please proceed.

目前所有與會者均處於靜音模式。稍後我們將進行問答環節。 （操作說明）提醒各位，本次會議將進行錄音，以便重播。現在我將會議交給今天的主持人，投資者關係總監達比·戴女士。請開始。

Thank you. Hello, everyone, and thank you for joining us today. The purpose of today's conference call is to supplement the information provided in our press release issued earlier today announcing the Company's financial results for the fourth quarter and year ended December 31, 2011.

謝謝。大家好，感謝各位今天參加本次電話會議。本次會議的目的是補充我們今天早些時候發布的新聞稿中提供的信息，該新聞稿公佈了該公司截至2011年12月31日的第四季度和全年財務業績。

Speaking on today's call are Ayman Ashour, Chairman and CEO and Melvin Denton-Thompson, CFO.

今天參加電話會議的有董事長兼執行長艾曼·阿舒爾和財務長梅爾文·丹頓-湯普森。

Before we begin I would like to remind you that various remarks we make on this call including those about are projected future financial results, economic and market trends and our competitive position, constitute forward-looking statements. These forward-looking statements and all other statements made on this call that are not historical facts are subject to a number of risks and uncertainties that may cause actual results to differ materially.

在會議開始之前，我想提醒各位，我們在本次電話會議中發表的各種言論，包括關於我們未來財務業績預測、經濟和市場趨勢以及我們競爭地位的言論，均構成前瞻性陳述。這些前瞻性陳述以及本次電話會議中所有其他非歷史事實的陳述均受諸多風險和不確定因素的影響，可能導致實際結果與預期有重大差異。

The forward-looking statements we make today speak as of today and we do not undertake any obligation to update any such statements to reflect events or circumstances occurring after today.

我們今天所作的前瞻性陳述僅代表截至今日的情況，我們不承擔任何義務更新此類陳述以反映今日之後發生的事件或情況。

Please refer to today's press release, our annual report on Form 10-K for the year ended December 31, 2010, and subsequent SEC filings for a description of factors that could cause forward-looking statements to differ materially from actual results.

請參閱今天的新聞稿、截至 2010 年 12 月 31 日止年度的 10-K 表格年度報告以及隨後向美國證券交易委員會提交的文件，以了解可能導致前瞻性陳述與實際結果存在重大差異的因素的描述。

During this conference call we will also be making reference to non-GAAP results or projections, including non-GAAP gross margin, overhead costs, and adjusted EBITDA. These non-GAAP measures exclude all or some of the following -- acquisition, transition, and integration costs; equity-based compensation expense; adjustment to earn-out estimates; overhead allocation; and amortization and depreciation. Identive uses these non-GAAP measures internally and believes they provide a meaningful way for investors to evaluate and compare our operating performance from period to period, but cautions investors to consider these measures in addition to, not as a substitute for, nor superior to, Identive's consolidated financial results as presented in accordance with GAAP. A complete reconciliation between GAAP and non-GAAP financial measures is included in today's press release, which is available in the Investor Relations section of Identive's website.

在本次電話會議中，我們也將提及非GAAP財務表現或預測，包括非GAAP毛利率、管理費用和調整後EBITDA。這些非GAAP指標剔除了以下全部或部分項目：收購、過渡和整合成本；股權激勵費用；盈利能力預期調整；管理費用分攤；以及攤銷和折舊。 Identive在內部使用這些非GAAP指標，並認為這些指標能夠幫助投資者評估和比較我們各期間的經營業績，但同時提醒投資者，應將這些指標作為補充信息，而非替代或優於按照GAAP編制的Identive合併財務業績。今日發布的新聞稿中包含GAAP和非GAAP財務指標的完整調節表，該新聞稿可在Identive網站的投資者關係欄位中查閱。

As a reminder, today's call is also available as a webcast with slides, which can be accessed from the presentations, reports and webcast page within the Investor Relations section of our website at www.identive-group.com. If you are viewing the webcast you may enlarge the slides of this presentation by clicking on the magnifying lens in the bottom right-hand corner of your screen.

提醒各位，今天的電話會議也提供網路直播，並附有幻燈片，您可以透過我們網站 www.identive-group.com 投資者關係版塊的「簡報、報告和網路直播」頁面存取。如果您正在觀看網路直播，可以點擊螢幕右下角的放大鏡圖示放大簡報。

I would now like to introduce Ayman Ashour.

現在我來介紹艾曼·阿舒爾。

Good morning. Thank you, Darby, and thanks to all of you for joining us today. Q4 was a quarter of significant traction in our business, strategically and operationally. We made up for the continuous delays on the ongoing government projects, which is our strongest customer, with actually -- with our strongest quarterly sales yet, reaching $27.9 million, a new record for Identive since the formation of Identive from SCM and Bluehill exactly two years ago. Our Q4 was highlighted by strong sales of readers to the Japanese telcos market. We doubled our sales year on year in Japan.

早安.謝謝Darby，也謝謝各位今天蒞臨。第四季度，無論從策略或營運層面，我們的業務都取得了顯著進展。儘管政府專案（我們最重要的客戶）持續延期，但我們憑藉迄今為止最強勁的季度銷售額彌補了這一損失，銷售額達到2790萬美元，創下Identive自兩年前由SCM和Bluehill合併成立以來的新紀錄。第四季最引人注目的是面向日本電信市場的讀卡機銷售強勁。我們在日本的銷售額年增了一倍。

Our transponder sales continued to be strong and we also had our first sales of inlays and tags into the Japanese market. Sales of integrated IT solutions were driven by one card multi-function ID programs for universities and also by the expansion of our payment offerings.

我們的應答器銷售持續強勁，同時我們也首次在日本市場實現了晶片嵌體和標籤的銷售。整合IT解決方案的銷售成長主要得益於面向大學的單卡多功能識別專案以及我們支付產品的拓展。

In the enterprise security division we've seen our first largest deployments for idOnDemand and stronger sales into the non-US government sector. Sales in the US government sector which is as I mentioned our largest customer continued to be impacted by project delays and budget uncertainty. In particular, we made significant progress in the management of our cash and generated $1.2 million in cash from operations. This is the second consecutive quarter of positive cash flow from operations for Identive.

在企業安全部門，idOnDemand 的部署規模首次達到歷史新高，非美國政府部門的銷售額也顯著成長。正如我之前提到的，我們最大的客戶——美國政府部門的銷售額仍然受到專案延期和預算不確定性的影響。值得一提的是，我們在現金管理方面取得了顯著進展，營運現金流達到 120 萬美元。這是 Identive 連續第二季實現營運現金流為正。

Year on year, our cash consumption or cash used for operations has halved, even with our significant growth and significant investment in R&D, which I will discuss later.

儘管我們實現了顯著增長，並在研發方面投入了大量資金（稍後我會討論這一點），但我們的現金消耗或營運現金同比減少了一半。

The important thing you would notice in the graphs in Q4 versus the year as a whole is the mix between the US and the rest of the world and also between our products and system divisions. In total, they were both nearly equal in Q4, which had an affect on the overall margin.

從第四季度與全年的圖表中可以明顯看出，美國市場與世界其他地區市場以及產品部門和系統部門之間的組成差異顯著。總體而言，第四季這兩者幾乎持平，這對整體利潤率產生了一定影響。

Turning on to 2011 as a whole, this was a year of significant accomplishment for Identive. Revenues grew 21% year on year and topped the $100 million mark. While sales to the federal government were nearly $4 million lower in 2011 than in the previous year, we grew our non-US government business 35%; full half of this is organic. We doubled our Asia Pacific business, as we talked earlier about Japan, but it is not just Japan. We also had strong growth in Australia, Singapore, Korea, and China, to name some markets.

回顧2011年全年，對於Identive而言，這是碩果累累的一年。營收年增21%，突破1億美元大關。儘管2011年聯邦政府的銷售額比前一年減少了近400萬美元，但我們的非美國政府業務成長了35%；其中一半成長來自內生成長。正如我們之前提到的日本市場，亞太地區的業務翻了一番，但成長的市場不僅限於日本。我們在澳洲、新加坡、韓國和中國等其他市場也實現了強勁成長。

On the transponder side, sales of transponders, inlays, and tags grew by 64%. We continued to feed this growing appetite of secure RFID products for many applications, ranging from transit, amusement, and event ticketing; high-value asset tracking; and of course, the emerging NFC applications such as advertising, tag in a box, and payment applications.

在應答器方面，應答器、嵌體和標籤的銷量成長了 64%。我們繼續滿足市場對安全 RFID 產品日益增長的需求，這些產品廣泛應用於交通、娛樂和活動票務；高價值資產追蹤；當然還有新興的 NFC 應用，例如廣告、盒裝標籤和支付應用。

Another important source of growth is the cashless payment solutions and I'll be talking more about payment in particular when I address our acquisition earlier this year, in 2012, of payment solution in Germany.

另一個重要的成長來源是無現金支付解決方案，我將在今年稍早（2012 年）談到我們在德國收購的支付解決方案時，更詳細地談談支付方面的問題。

We made progress in improving the transponder manufacturing yields in 2011, but we still suffer from excessive scrap. This is an area that cost us several hundred thousand dollars in margins and we continue to focus on it going forward.

2011年，我們在提高應答器製造良率方面取得了一些進展，但廢品率仍然過高。這方面使我們損失了數十萬美元的利潤，我們將繼續專注於這個問題。

Moving on to the next slide, strategically, we made significant progress in 2011 towards developing a solid platform of technology, manufacturing, and financial capabilities. We boosted our R&D investment in 2011 with a 49% increase in spending over the previous year to capitalize on our core technology and market opportunity. This has already resulted in important new products and some very valuable IP, we believe. During the year 2011, we had three new patents granted -- 20 new inventions covering NFC tagging solutions; NFC software and applications; cloud-based identity solutions; transponder and card manufacture. These inventions would be transforming our business further and allow us to continue to move into wider and growing markets and basically expand our addressable market.

接下來，從策略層面來看，我們在2011年取得了顯著進展，建構了穩固的技術、製造和財務平台。為了充分利用我們的核心技術和市場機遇，我們在2011年大幅提升了研發投入，較前一年成長了49%。我們相信，這已經催生出重要的新產品和一些極具價值的智慧財產權。 2011年，我們獲得了三項新專利——共20項新發明，涵蓋NFC標籤解決方案、NFC軟體和應用、雲端身分解決方案以及應答器和卡片製造等領域。這些發明將進一步推動我們的業務轉型，使我們能夠繼續開拓更廣闊、更具成長潛力的市場，並擴大我們的目標市場。

Complementing our investment in new products and markets, in November we completed the process of consolidating our various product brands under the name Identive or the brand Identive, allowing us to leverage unified product brand across new markets and geographic regions.

為了配合我們對新產品和市場的投資，我們在 11 月完成了將其各種產品品牌整合到 Identive 品牌下的流程，使我們能夠在新市場和地理區域利用統一的產品品牌。

In the second half of the year, as I mentioned earlier, we've seen improvement in our cash generation from normal operations -- two consecutive quarters of positive cash. And we've also seen improvement in G&A in Q4.

正如我之前提到的，下半年我們的正常營運現金流有所改善——連續兩個季度實現正現金流。此外，第四季的行政管理費用也有所改善。

I'd like to talk a moment about the opportunities where we made significant investment in 2011, specifically idOnDemand and NFC.

我想花點時間談談我們在 2011 年進行重大投資的機會，特別是 idOnDemand 和 NFC。

As we discussed last quarter, idOnDemand is a pioneer in cloud-based ID management solutions. Their SaaS-based identity as a service offering offers a simple, extremely fast-to-deploy, elegant way for our customers to deploy effective IT security platform and to work with multiple different legacy systems quickly and with a cost-effective way.

正如我們在上個季度討論的那樣，idOnDemand 是基於雲端的身份管理解決方案的先驅。他們基於 SaaS 的身份即服務產品為我們的客戶提供了一種簡單、部署極其快速且優雅的方式，以部署有效的 IT 安全平台，並以經濟高效的方式快速與多種不同的遺留系統協同工作。

IdOnDemand originally came out of ActivIdentity, and in January, we acquired the remaining stake that Acti had, so now idOnDemand is 100% owned subsidiary of Identive.

IdOnDemand 最初源自 ActivIdentity，今年 1 月，我們收購了 Acti 持有的剩餘股份，因此現在 idOnDemand 是 Identive 的全資子公司。

We are in advanced pilot phases with four global customers, covering insurance, technology, utilities and government sectors. And with our partnership with Verizon Business in Asia Pacific, Fuji Xerox integrating our products in their secure multi-function office productivity systems, which I believe we announced yesterday, we feel we are gaining more traction.

我們目前正與四家全球客戶進行深入的試點合作，這些客戶涵蓋保險、科技、公用事業和政府部門。此外，隨著我們與亞太地區的Verizon Business建立合作關係，以及富士施樂將我們的產品整合到其安全的多功能辦公室生產力系統中（我記得我們昨天已經宣布了這一消息），我們感覺正在獲得更大的發展動力。

While we're still focused on large users through idOnDemand we will be launching this month in Las Vegas at the ISC our SaaS offerings through our Hirsch Identive brand, targeting the physical security channel, expanding idOnDemand reach beyond the very large users and using the infrastructure we already have in-house.

雖然我們仍然專注於透過 idOnDemand 服務大型用戶，但本月我們將在拉斯維加斯的 ISC 展會上透過我們的 Hirsch Identive 品牌推出我們的 SaaS 產品，目標市場是實體安全管道，將 idOnDemand 的服務範圍擴展到大型用戶之外，並利用我們內部已有的基礎設施。

Also, and we mentioned this earlier, to enable the SaaS offering way had to invent some extremely pioneering products. We are now offering these products as part of our ID Infrastructure Division, and we have commenced the process of integrating these products internally within our products group with a focused team headed by John Menzel, an executive that we brought into the company in November with deep experience in this particular sector.

此外，正如我們之前提到的，為了實現SaaS服務模式，我們不得不研發一些極具開創性的產品。現在，這些產品已納入我們的ID基礎設施部門，並且我們已經啟動了將這些產品整合到我們產品團隊內部的流程。為此，我們組建了一支專門的團隊，由約翰·門澤爾（John Menzel）領導。門澤爾先生是我們去年11月聘請的高階主管，他在該領域擁有豐富的經驗。

As much as possible, we want to be transparent on the idOnDemand business because of its nature and the numbers you see on the slide, you can feel the startup nature of this activity.

鑑於 idOnDemand 業務的性質以及您在幻燈片上看到的數字，我們希望盡可能地保持透明，因為您可以感受到這項業務的創業性質。

We believe the cloud-based service model will be an important trend in identity management, just like it has been in dozens of other business areas. And idOnDemand pioneering technology, an unmatched understanding of smart card security and security implementation, is a significant advantage for Identive. We also believe that the secure cloud-based approach is an important tool to deliver and manage dynamic content for NFC applications. We have been investing in this area as well and are on track for our initial rollout of our patent pending NFC services platform in Q2.

我們相信，雲端服務模式將成為身分識別管理領域的重要趨勢，正如它在其他數十個業務領域所發揮的作用一樣。 idOnDemand 的創新技術，以及其對智慧卡安全和安全實施的深刻理解，是 Identive 的一項重大優勢。我們也認為，安全的雲端方案是交付和管理 NFC 應用程式動態內容的重要工具。我們一直在該領域進行投資，並正按計劃於第二季推出我們正在申請專利的 NFC 服務平台。

I'll move on to the next slide. Another exciting opportunity for Identive is the payment market. And here I want to talk a little bit about our acquisition of payment solutions in Germany. We've known and partnered with payment solution and in some cases even competed against them from the founding of that company. Payment solutions is a unique company with a deep understanding of both payment systems in general and specific understanding of how sports market and sports arena operate.

接下來我將介紹下一張投影片。 Identive 的另一個令人興奮的機會是支付市場。在這裡，我想簡單談談我們對德國支付解決方案公司的收購。從該公司成立之初，我們就與他們建立了合作關係，在某些情況下，我們甚至與他們競爭。支付解決方案公司是一家獨特的公司，他們對支付系統有著深刻的理解，尤其對體育市場和體育場的運作方式有著獨到的見解。

They basically have two approaches. One is an ordinary systems integrator providing software, products, professional services; and the other model, which is unique about them, as an operator. In this approach typically we would have multi-year agreements, usually somewhere in the range of 10 years, with stadium operators and various retailers, caterers, et cetera, to install, operate and manage cashless payment systems. And in return we get the percentage of incremental revenues or a percentage of the total revenues. Currently we have seven such stadiums in operation with over 500,000 active users.

他們主要有兩種模式。一種是作為普通的系統整合商，提供軟體、產品和專業服務；另一種模式是他們獨有的，即作為營運商。在這種模式下，我們通常會與體育場營運商以及各類零售商、餐飲服務商等簽訂多年期協議（一般在10年左右），負責安裝、營運和管理無現金支付系統。作為回報，我們會獲得增量收入或總收入的一定比例。目前，我們有七個體育場正在運作這樣的系統，擁有超過50萬活躍用戶。

Revenues for us in this business model come from two areas. They come from transaction fees based as I mentioned on the incremental sales or total sales, as well as residual money unused on the card. Over the years, experience has shown that when implemented in sports arena in Germany in particular, cashless payment systems generate somewhere in the range of 20% additional retail volumes. Basically the time and space available for retail in a soccer environment is not like baseball; it is much more limited. You only have about 30 minutes before the game and maximum 15 minutes in the middle. So if you can make things faster and easier, you will be able to sell that much more.

在這種商業模式下，我們的收入來自兩個面向。正如我之前提到的，收入來自基於增量銷售額或總銷售額的交易手續費，以及卡內未使用的餘額。多年來的經驗表明，尤其是在德國的體育場館中，無現金支付系統能夠帶來約20%的額外零售額。足球比賽的零售時間和空間與棒球比賽截然不同，足球比賽的場地更為有限。比賽開始前只有大約30分鐘的零售時間，比賽中場最多也只有15分鐘。因此，如果能讓交易更快速方便，就能帶來更多的銷售。

Our expectation is that payment solutions will contribute positively to the group EBITDA this year. The German -- the revenue recognition with US GAAP for payment solutions will be a little bit complex; we're still working through that. But we've included on the slide the German GAAP revenues as you can see. It will take us some time to figure out exactly some of the revenue recognition here. The Company has debt of about EUR4.5 million, which mostly reflects the value of the installed systems.

我們預計支付解決方案業務今年將對集團 EBITDA 做出積極貢獻。德國支付解決方案業務的收入確認採用美國通用會計準則 (US GAAP) 會比較複雜，我們仍在研究這個問題。但如您所見，我們在幻燈片中列出了採用德國通用會計準則的收入。我們需要一些時間來仔細確定部分收入確認的具體方法。公司負債約 450 萬歐元，主要反映了已安裝系統的價值。

I want to move on and talk a little bit more about payment in general. With the addition of payment solution, we now have a wide range -- as wide base, actually, of payment systems and capabilities, both on card and cloud or wallet-based. And we are expanding our presence in cashless payment globally. We've talked before about Cashless Betalen in Holland with Rabobank and where we're operating through a number of -- originally we rolled it out to Rabo's employees. We've now rolled it out across about 50 retailers. There are about 50,000 users now of Cashless Betalen in Holland and it is being promoted actively by Rabo's 140 branches across Holland. We believe that Rabobank's online wallet is one of the largest, if not the largest, online wallet outside of Japan.

接下來，我想更詳細地談談支付方面的問題。隨著支付解決方案的加入，我們現在擁有了非常廣泛的支付系統和功能，涵蓋了銀行卡、雲端和電子錢包等多種支付方式。我們正在全球拓展無現金支付業務。之前我們曾與荷蘭合作銀行（Rabobank）在荷蘭推廣無現金支付（Cashless Betalen）服務，最初我們為荷蘭合作銀行的員工推出了這項服務。現在，這項服務已經涵蓋了大約50家零售商。目前，荷蘭約有5萬名無現金支付用戶，荷蘭合作銀行在荷蘭的140家分行也積極推廣這項服務。我們相信，荷蘭合作銀行的線上錢包是日本以外最大的線上錢包之一，甚至可能是最大的。

In Australia we rolled out our first payment application to 6,000 customers across Queensland in Australia for fuel and retail purchases at 140 different gas stations.

在澳大利亞，我們向昆士蘭州的 6,000 名客戶推出了首個支付應用程序，用於在 140 個不同的加油站進行燃油和零售購買。

In Switzerland, Germany, and France our payment applications tend to be intertwined with other functions so it is basically part of an overall ID solutions or a single credential or a multifunctional ID card is used by an employee, college student, or citizen in a smart city application. These cards are then -- or these IDs or credentials are used for security, access control, loyalty, transport applications, et cetera.

在瑞士、德國和法國，我們的支付應用往往與其他功能緊密結合，因此它基本上是整體身分識別解決方案的一部分。在智慧城市應用中，員工、大學生或市民使用單一憑證或多功能身分證。這些卡片或身分識別憑證隨後被用於安全、存取控制、會員積分、交通應用等領域。

And it is actually the German smart city applications where the one card is used for transport, loyalty scheme, access to stadia, where we have had a lot of interface with payment solutions, the company we just acquired in January in the past. And we expect to work closely between our existing activity in payment solutions, where we approach the cities from the multiple areas of competence, be it loyalty scheme, security, or transport applications and now stadia applications.

事實上，我們過去在德國智慧城市應用中與支付解決方案領域有過許多合作，包括我們今年一月收購的那家公司。在這些應用程式中，一張卡可用於交通、會員積分計畫和體育場館門票。我們希望將我們現有的支付解決方案業務與體育場館門票等多個領域的業務緊密結合，從會員積分計劃、安防、交通應用以及現在的體育場館門票等多個方面為城市提供服務。

We are making significant inroads in payment area and expect that payment will be an increasingly more important component in our overall business and will be a fast-growing segment.

我們在支付領域取得了重大進展，預計支付將成為我們整體業務中越來越重要的組成部分，並將成為快速成長的領域。

I've talked so far about the software and the solutions we're providing end-to-end, but it is important also to remember that we are supplying a range of payment products both on the tagging, card, and the token and reader side. Overall, we expect that payment will represent somewhere between $15 million and $20 million for us in 2012.

我之前主要介紹了我們的軟體和端到端解決方案，但同樣重要的是，我們也提供一系列支付產品，涵蓋標籤、銀行卡、令牌和讀卡機等各個方面。整體而言，我們預計2012年支付業務的收入將在1500萬美元至2000萬美元之間。

Now I would like to turn the call over to Melvin for a review of Q4 and 2011 financial performance, and I'll come back to you for the 2012 outlook.

現在我想把電話交給梅爾文，讓他回顧一下第四季和 2011 年的財務業績，稍後我會再請你談談 2012 年的展望。

Thank you, Ayman.

謝謝你，艾曼。

Revenues for the fourth quarter were $27.9 million, our highest quarterly revenue since the creation of Identive. Revenues in the quarter were split almost evenly between the two reporting segments with 51% in ID management and 49% in ID products.

第四季營收為2,790萬美元，是Identive成立以來最高的季度營收。該季度營收在兩個報告部門之間幾乎平分秋色，其中身分識別管理業務佔51%，身分識別產品業務佔49%。

Revenues for the full year at $102.7 million were up 21% from the $84.8 million in 2010, reflecting organic growth outside of the US government market of 17% as well as growth from the acquisitions.

全年營收為 1.027 億美元，比 2010 年的 8,480 萬美元成長了 21%，這反映了美國政府市場以外的有機成長 17% 以及收購帶來的成長。

Margins for the quarter were 45.5% compared to 48% in the previous quarter, held back by the effects of the US federal government agency project delays and as a result of the product and project mix in the quarter.

本季利潤率為 45.5%，而上一季為 48%，受到美國聯邦政府機構專案延誤以及本季產品和專案組合的影響。

For the full year the margins were 46%. Margins in 2010 were 48% and 46% in the 2010 pro formas. Again lower sales to the US government decreased the overall margins in 2011, partially masking the margin improvements in other parts of the Company's business, particularly in the ID product segment.

全年利潤率為46%。 2010年的利潤率為48%，而2010年的備考利潤率為46%。 2011年，由於對美國政府的銷售額下降，整體利潤率降低，部分掩蓋了公司其他業務（尤其是身分識別產品領域）利潤率的改善。

On this next slide we compare the 2011 actuals with the 2010 actuals and pro forma numbers. Revenues up 21% compared to the 2010 actuals and up 8% compared to the 2010 pro forma numbers. The adjusted EBITDA for the year was negative $0.7 million, reflecting the continued investment in software as a service, NFC, and cashless payment solutions in particular.

下一張投影片將比較2011年與2010年的實際數據和預測數據。營收較2010年實質數據成長21%，較2010年預測數據成長8%。經調整後的年度EBITDA為負70萬美元，主要反映了公司對軟體即服務、近場通訊（NFC）以及無現金支付解決方案的持續投資。

Pro forma numbers for 2010 were $94.7 million of revenues and a loss at adjusted EBITDA level of just under $2 million. 2011, therefore, showed an improvement over the pro forma numbers while still allowing us to increase investment for growth.

2010年的備考數據顯示，公司營收為9,470萬美元，調整後EBITDA虧損略低於200萬美元。因此，2011年的業績較備考數據有所改善，同時我們仍可增加投資以促進成長。

R&D increased by 57% over the 2010 actuals and 15% over the pro forma numbers, reflecting again the investments in growth opportunities as discussed. We've also continued to invest in sales and marketing again to drive growth opportunities.

研發投入較2010年實際水準成長57%，較預測水準成長15%，再次印證了我們先前對成長機會的投資。此外，我們也持續增加對銷售和行銷的投入，以推動成長。

Overheads continue to grow at a lower rate than sales. However, G&A continued to be high and we are working on a number of projects to improve efficiencies in overheads. Just as a reminder, the overhead numbers that I have been talking about here are non-GAAP OpEx numbers.

營運成本成長持續低於銷售額成長。然而，一般及行政費用仍然居高不下，我們正在推動多個專案以提高營運成本的效率。需要再次強調的是，我之前提到的營運成本數據均為非GAAP營運支出數據。

The next slide, we show the reconciling items below the adjusted EBITDA comparing 2011 with 2010. Depreciation and amortization increased from $4.7 million to $5.6 million, with both depreciation and amortization intangibles increasing. The amortization of intangibles in 2011 was $4.1 million.

下一張投影片展示了調整後 EBITDA 下方的調節項目，比較了 2011 年和 2010 年的數據。折舊和攤銷從 470 萬美元增加到 560 萬美元，其中無形資產的折舊和攤銷均增加。 2011 年的無形資產攤銷額為 410 萬美元。

The time value of money adjustment on earn-out liabilities relating to idOnDemand was $0.7 million in 2011.

2011 年，與 idOnDemand 相關的獲利能力負債的貨幣時間價值調整為 70 萬美元。

Both the post-acquisition reorganization and acquisition costs reduced substantially from 2010 to 2011. Post-acquisition reorganization costs reduced from $2.3 million to $1.5 million and acquisition costs reduced from $1.5 million to $0.7 million. Total non-cash items here in 2011 was approximately $7.7 million.

2010年至2011年，收購後的重整成本和收購成本均大幅下降。收購後的重組成本從230萬美元降至150萬美元，收購成本從150萬美元降至70萬美元。 2011年非現金項目總額約770萬美元。

You'll note that 2011 included a net tax credit of $1.4 million, arising principally from the acquisition of idOnDemand, where deferred tax losses acquired were offset against fully reserved deferred tax assets, allowing for a release of valuation allowance.

你會注意到，2011 年淨稅收抵免額為 140 萬美元，主要來自對 idOnDemand 的收購，收購的遞延所得稅虧損與已全額計提的遞延所得稅資產相抵消，從而釋放了估值準備金。

The next slide shows a summary balance sheet at the end of Q4 compared to Q3. Cash from operations continued to improve. And I will discuss that further in the next slide. Working capital improved from Q3 to Q4, reflecting the continued focus that we're giving to working capital reductions.

下一張投影片展示了第四季末與第三季末的資產負債表摘要對比。經營活動產生的現金流持續改善，我將在下一張投影片中對此進行更詳細的討論。營運資本從第三季到第四季有所改善，這反映了我們持續致力於降低營運資本的努力。

Next, property, plant and equipment increased from $5.9 million to $7.2 million in the quarter as a result of the investment in production equipment for the transponder manufacturing operations in Germany and Singapore, partially offset by quarterly depreciation charge.

其次，由於對德國和新加坡的應答器製造業務的生產設備進行了投資，本季度固定資產、廠房和設備從 590 萬美元增加到 720 萬美元，部分被季度折舊費用抵消。

The next slide we have a summary of cash movements in the quarter. The GAAP net cash provided by operating activities in the quarter was $0.9 million. However, as we discussed before, that includes a payment related to the Hirsch debt. Taking this into account the cash flow from what we might term normal operations is $1.2 million, as Ayman has previously mentioned.

下一張投影片是本季現金流動狀況的摘要。本季GAAP準則下經營活動產生的淨現金流為90萬美元。然而，正如我們之前討論過的，其中包含一筆與Hirsch債務相關的付款。考慮到這一點，正如Ayman之前提到的，我們通常所說的正常經營產生的現金流為120萬美元。

In the full year the GAAP net cash used in operating activities was $4.6 million, showing a considerable improvement over the $9.3 million used in 2010. This improvement came while growing the business. Payments related to the Hirsch debt included in these amounts were approximately $1 million in both years.

全年以美國通用會計準則（GAAP）計算的營業活動淨現金流出為460萬美元，較2010年的930萬美元顯著改善。這項改善得益於業務成長。上述金額中包含的與Hirsch債務相關的付款在兩年內均為約100萬美元。

The next slide we have quarterly information on sales, gross profit, adjusted EBITDA and overheads from Q1 2010. The business has in the past shown some seasonality with Q1 being a relatively weak quarter and the second half generally of the year being stronger than the first half. You'll see that the gross profit margin shows some fluctuations with product and project mix from quarter to quarter. Overhead as a percentage of sales show a downward trend, having increased in Q3 2011, the percentage of sales was reduced again in Q4.

下一張投影片展示了2010年第一季的銷售額、毛利、調整後EBITDA和管理費用等季度資訊。該業務以往表現出一定的季節性，第一季通常較為疲軟，而下半年通常強於上半年。您可以看到，毛利率會隨著產品和項目組合的季度變化而波動。管理費用佔銷售額的百分比呈下降趨勢，在2011年第三季上升後，第四季再次下降。

I'd just like to finish by giving some information on the share count -- outstanding shares and fully diluted share count that I know some of you use in calculations. As of 31 December, the outstanding shares was 57.6 million. As of today, that number is 59.1 million. As of today the fully diluted share count is 71.9 million, just under 72 million. And with that I will hand back to Ayman.

最後，我想補充一些關於股份數量的資訊——流通股數量和完全稀釋後的股份數量，我知道你們有些人會在計算中使用這些數據。截至12月31日，流通股數為5,760萬股。截至今日，流通股數為5910萬股。截至今日，完全稀釋後的股份數量為7,190萬股，略低於7,200萬股。接下來，我將把發言權交還給艾曼。

Thanks, Melvin. I want to move on to an update and outlook for both Q1 and 2012 as a whole.

謝謝，梅爾文。接下來我想談談第一季和2012年全年的最新情況和展望。

As we move on to 2012, we are encouraged by strong momentum and strong project activity across many parts of our business. Our initial effort to cross-sell our readers and transponders in Japan went very well. We now expect to sell several million inlays in Japan in 2012.

展望2012年，我們業務各領域都展現出強勁的發展勢頭和積極的專案活動，這令我們倍感鼓舞。我們在日本交叉銷售讀卡機和應答器的初步嘗試非常成功。我們預計2012年在日本的晶片銷量將達到數百萬片。

Japan is one of the largest RFID markets and particularly when we're talking about NFC, it is many years ahead of the rest of the world with a large number of consumers walking around already with NFC or NFC-type solutions in their phones.

日本是全球最大的 RFID 市場之一，尤其是在 NFC 領域，它領先世界其他地區很多年，大量的消費者已經在手機中使用了 NFC 或類似 NFC 的解決方案。

We had minimal sales in Q4 in our new offerings, SmartCore and the idOnDemand technology as a product, if you will, and we are getting strong interest from customers and existing markets that are now available to us. We are now capitalizing on this.

第四季度，我們的新產品SmartCore和idOnDemand技術（姑且稱之為產品）銷量微乎其微，但我們已收到來自現有客戶和市場的強烈關注，這些客戶和市場現在都對我們開放了。我們正在充分利用這一優勢。

On the enterprise security, our market-leading solution is gaining traction in many different markets from airports to healthcare, telcos, data centers, insurance, et cetera. We are also adding more focus on the Middle East market, building on our success in the United Arab Emirates and Saudi Arabia with our work on the Emirate Critical Infrastructure Authority and Saudi Aramco.

在企業安全領域，我們市場領先的解決方案正迅速在眾多市場中獲得認可，涵蓋機場、醫療保健、電信、資料中心、保險等眾多產業。同時，我們也正加大對中東市場的投入，在阿聯酋和沙烏地阿拉伯取得成功的基礎上，進一步拓展與阿聯酋關鍵基礎設施管理局和沙烏地阿拉伯阿聯酋的合作。

The US government, we believe, we would ultimately grow our business from the 2010 level, which as I mentioned before, we've seen a decline in 2011. But we believe that we will be growing from that original 2010 level. Cybersecurity, physical access control systems in the government sector remain critical and are under several federal mandates for urgent upgrades. In some ongoing project delays like the IRS, we already have been selected and supplied the heart of the new systems, so we believe we continue to be well-positioned. We also believe we will continue to be the preferred choice for most sensitive and high-security applications.

我們相信，美國政府最終將使我們的業務在2010年的基礎上成長。正如我之前提到的，2011年我們的業務有所下滑，但我們相信我們會從2010年的水平開始成長。網路安全和政府部門的實體存取控制系統仍然至關重要，並且受到多項聯邦指令的緊急升級要求。在一些持續延期的項目中，例如美國國稅局的項目，我們已經被選中並提供了新系統的核心部件，因此我們相信我們仍然處於有利地位。我們也相信，我們將繼續是大多數敏感和高安全應用的首選供應商。

We are seeing early stages of momentum for our SaaS identity-as-a-service offering from idOnDemand. We expect that that business will grow to $3 million to $5 million in SaaS revenues this year.

我們看到，idOnDemand的SaaS身分即服務產品已初見成效。我們預計該業務今年的SaaS營收將成長至300萬至500萬美元。

We also plan to offer or launch our cloud-based NFC services platform in Q2. We don't expect much revenue from NFC solutions and services until there is a critical mass of NFC-equipped phone in any particular geography.

我們也計劃在第二季推出基於雲端的NFC服務平台。我們預計，在特定地區NFC手機普及率達到一定規模之前，NFC解決方案和服務不會帶來太多收入。

On the infrastructure side for NFC, we now have blanket order commitments for 10 million to 15 million NFC tags. You recall last year, we had orders for 3.5 million or 3 million, and this number has gone up for 2012 to somewhere between 10 million and 15 million tag and box applications and NFC gift cards.

在NFC基礎設施方面，我們目前已獲得1000萬至1500萬個NFC標籤的訂單承諾。您可能還記得，去年我們的訂單量為300萬或350萬個，而2012年的訂單量已增至1000萬至1500萬個標籤、包裝盒應用以及NFC禮品卡。

We are on many projects and continue to expand our relationships with telcos, phone, wallet, and OS suppliers in order to expand the reach of our NFC infrastructure. We are very active in many of the shows that are going on right now, such as the Mobile Phone Congress in Barcelona; [Cart] next week in the US, et cetera.

我們正在進行多個項目，並持續拓展與電信營運商、手機、錢包和作業系統供應商的合作關係，以擴大我們NFC基礎設施的覆蓋範圍。我們積極參與目前正在舉行的眾多展會，例如巴塞隆納的行動電話大會；下週在美國舉行的[Cart]展會等等。

We are focusing on further strengthening our growth engine with commitment and concrete plans to drive down overheads as a percentage of sales in 2012.

我們致力於進一步加強成長引擎，並制定了切實可行的計劃，力爭在 2012 年降低營運成本佔銷售額的比例。

In terms of Q1 2012, we expect the revenues to be in a similar range to Q1 last year. We are running, however, higher overhead base. We also expect cash to go down in Q1 to reflect some of the acquisition activity. As I mentioned, we acquired the remaining shares from ActivIdentity of idOnDemand. We have also had some acquisition costs for payment solutions and we also have some payment of CapEx. However, we expect stronger balance in Q2 and subsequent quarters.

就2012年第一季而言，我們預計營收將與去年同期基本持平。然而，我們的營運成本基數較高。同時，由於部分收購活動，我們預期第一季現金流將有所下降。正如我之前提到的，我們收購了ActivIdentity持有的idOnDemand剩餘股份。此外，我們也支付了一些支付解決方案的收購成本以及部分資本支出。不過，我們預期第二季及後續季收支平衡情況將有所改善。

I now want to talk a little bit about the full-year outlook and the longer-term business model.

現在我想談談全年展望和長期商業模式。

We're expecting 2012 -- we're projecting our revenues to be in the range of $125 million to $140 million. We're expecting the margin to improve. We're actually encouraged by the underlying improvement in the margins in our product business both the transponder and the reader side, and we're expecting that overall product margin to continue to improve. We're expecting the mix between product and systems to go back to normal which is about 45% to 55% or thereabout.

我們預計2012年營收將在1.25億美元至1.4億美元之間。我們預計利潤率將有所提高。事實上，我們對產品業務（包括應答器和讀卡機）利潤率的持續改善感到鼓舞，並預期整體產品利潤率將持續提升。我們預期產品和系統之間的比例將恢復正常，約45%至55%。

Overheads -- we're planning to continue our level of investment in R&D and sales and marketing, but we're hoping to be able to curtail any -- or limit any additional growth in G&A as a percentage of sales. So overall on the overheads we are projecting somewhere between $55 million and $60 million. Obviously, that will be dependent on the mix of business and dependent on the revenues. We're projecting adjusted EBITDA between $5 million and $10 million for 2012.

營運成本面向－我們計劃繼續維持對研發、銷售和行銷的投入水平，但希望能夠控製或限制一般及行政費用佔銷售額比例的進一步增長。因此，我們預計2012年營運成本總額將在5,500萬美元至6,000萬美元之間。當然，具體數字將取決於業務組合和收入情況。我們預計2012年調整後EBITDA將在500萬美元至1000萬美元之間。

In terms of the longer-term business model, we are remaining confident that the fundamental quality of the business will allow us to get into an 18% to 23% EBITDA business based on continuing to grow and continuing to see the overheads decline as a percentage of revenue with a little bit of improvement in the gross margins. We expect the improvement in the gross margins to come in from the SaaS business; from all of our software offering; and from all of our expansion in payment areas and the like.

就長期商業模式而言，我們仍然堅信，公司的基本面優勢將使我們能夠實現18%至23%的EBITDA利潤率，前提是持續成長，同時營運成本佔營收的比例持續下降，毛利率略有提升。我們預計毛利率的提升將主要來自SaaS業務、所有軟體產品以及我們在支付等領域的擴張。

And with that I'll thank you and I'll turn the call back to Darby Dye for questions. Thank you.

那麼，我感謝各位，現在把電話轉回給達比·戴，請他提問。謝謝。

(Operator Instructions). Bryan Prohm, Cowen and Company.

（操作說明）。布萊恩·普羅姆，考恩公司。

This is Bryan; I am in today for Matt. My first question, can I get you guys to dig in a little deeper, please, on the weakness in government sales in the quarter? You had mentioned on the last earnings call stronger than seasonal October. But based on the final numbers, it looks like the balance of the quarter was pretty weak. Any comments on the linearity during the quarter?

我是布萊恩，今天我代替馬特發言。我的第一個問題是，能否請你們更深入探討本季政府銷售疲軟的原因？你們在上次財報電話會議上提到，10月的業績強於季節性因素。但根據最終數據來看，本季其他時段的業績似乎相當疲軟。你們對本季業績的線性成長有何看法？

Yes, I think it was really at the beginning, as of the time when we had our sort of Q3 call, which was sometime the end of October or early November, we really expected that whole enterprise security area to be in the range of $10 million or thereabout. And it ended up being closer to just below $7 million, with the shortfall primarily coming from the US government area. So we have expected a lot of that government business that has been deferred as we went during the year to come up and it just didn't.

是的，我想確實在年初，也就是我們召開第三季財報電話會議的時候，大概是十月底或十一月初，我們預計整個企業安全領域的收入會在1000萬美元左右。但最終實際收入接近700萬美元，缺口主要來自美國政府業務。我們原本預期，隨著年內業務的推進，許多被推遲的政府業務最終會落實，但結果卻並非如此。

And primarily we attribute the delay in that to a number of reasons. And number one, obviously, is all of the budget uncertainty and the like. But in our case there's been really two specific things.

我們認為造成延誤的主要原因有很多。首要原因顯然是預算的不確定性等等。但就我們而言，實際上有兩個具體的原因。

The first thing is that the new federal mandates, particularly the Office of Management and Budget [M1111], or [OMBM1111] as known, which mandated fast implementation of the kind of systems we are actually deploying, resulted in the exact opposite effect because what it did, it caused an additional layer of uncertainty at the various government agencies where they had to check if the money they are about to spend on anything does comply or not. So even though our projects were fully compliant, we have had to go through this whole new added layer. So this is one thing, Bryan.

首先，新的聯邦指令，特別是管理和預算辦公室（OMBM）的指令[M1111]，要求快速部署我們正在使用的這類系統，結果卻適得其反。這些指令反而為各政府機構增加了一層不確定性，他們必須核查即將支出的資金是否符合規定。因此，即使我們的專案完全合規，我們也不得不經歷這層額外的審查。這是其中一點，布萊恩。

The second thing was really some of the complexity of the projects we're working on and the nature of them and the scale of them. So some of them -- some of the government departments are working on massive projects that they have not really undertaken coast to coast; nationwide projects of this magnitude, so there's been a lot of project management delays and the like.

第二點是我們正在進行的專案本身的複雜性、性質和規模。一些政府部門正在進行一些規模龐大的項目，這些項目是他們以前從未在全國範圍內開展過的；如此大規模的全國性項目，因此出現了許多項目管理延誤等問題。

The -- fundamentally -- we did -- we estimate because a lot of our government business come directly and indirectly. We estimate that in 2009 we did about $20 million in government. In 2010 we did about $23 million. And we ended up at $19 million in 2011, where we actually expected that to be much higher. Is that business going away? We don't think so. We believe very strongly that that business would be coming back and it is a matter of time. I don't know if I answered your question or not, Bryan.

從根本上來說，我們之所以這樣估算，是因為我們大部分的政府業務都是直接或間接取得的。我們估計，2009年我們的政府業務額約為2000萬美元。 2010年約2,300萬美元。而2011年最終只有1900萬美元，而我們原本預期會更高。這部分業務會消失嗎？我們認為不會。我們堅信這部分業務會回歸，只是時間問題。布萊恩，我不知道我是否回答了你的問題。

No, that's fine. And your guidance as I understood it, your latest guidance for fiscal 2012, you expect that revenue number for 2012 to be up from 2010, so greater than $23 million?

不，沒問題。據我瞭解，您最新的2012財年業績指引是，預計2012年的營收將比2010年有所成長，超過2,300萬美元？

Well, we're -- to be honest with you, it's a little bit of once bitten, twice shy. So we're really looking at getting back into that level. And I suppose part of the reason we're giving you a range is if we are to get on the $140 million side and the top end of the EBITDA, we would expect it to be more than that $23 million.

說實話，我們有點「一朝被蛇咬，十年怕井繩」。所以我們真的非常希望能夠重回那個水準。我想，我們給出一個範圍的部分原因在於，如果我們想要達到1.4億美元的營收目標，以及EBITDA的上限，我們預計EBITDA會超過2,300萬美元。

I think it's also important to know that in the government area what we supply is virtually 100% our own product, own software, very little OEM-type product and a lot of professional services. So that tends to be significantly higher margin for us.

我認為同樣重要的是要了解，在政府領域，我們提供的產品幾乎100%都是我們自己的產品和軟體，只有極少一部分是OEM產品，大部分是專業服務。因此，這部分業務的利潤率往往要高得多。

A couple quick ones on NFC, so I don't take up too much time. In Q3 you mentioned you had a major OEM order for $1 million, potentially as many as 3 million NFC tags by year end. Where did that number ultimately come in? Did it come in closer to 1 million or closer to 3 million?

關於NFC，我先問幾個簡單的問題，免得佔用您太多時間。您在第三季提到過，您接到了一份價值100萬美元的大OEM訂單，到年底NFC標籤的產量可能高達300萬個。最終的產量是多少？是接近100萬還是接近300萬？

I think the actual deliveries was a little bit below 3 million. We were using Broadcom ICs and ended up using a combination of Broadcom and NXP ICs. So there was a little bit of delays in IC deliveries and a little bit of rescheduling here and there. So I think the total ended up being, from that one particular customer, a little bit less than 3 million, but not much less.

我認為實際交付量略低於300萬顆。我們原本打算使用博通的晶片，但最終採用了博通和恩智浦的晶片混合使用。因此，晶片交付出現了一些延遲，也做了一些調整。所以，我認為最終從那一位客戶那裡交付的總量略低於300萬顆，但差距不大。

And we now have for 2012, the projections are up, as I mentioned on a blanket commitment basis, or what the Europeans call frame order, between 10 million and 15 million for 2012.

而對於 2012 年，正如我之前提到的，根據一攬子承諾，或歐洲人所說的框架訂單，預測數量在 1000 萬到 1500 萬之間。

And that is for all NFC customers, correct? Or just the one --?

這是針對所有NFC用戶，對嗎？還是只針對其中一位使用者？

Just from that one customer.

僅僅來自那一位顧客。

Just from that one OEM?

就來自那一家OEM廠商？

Just from that one client.

僅僅來自那一個客戶。

Okay, no, interesting. Last quarter you mentioned there were 40 to 50 NFC customers, roughly, for the Company. Where is that number today?

好的，有意思。上個季度您提到公司大約有40到50家NFC客戶。現在這個數字是多少？

Quite a bit more. It is -- I mean it's quite significant because remember we are now doing the fulfillment for the Google places, tags, and so a lot of it is retail, so it's quite a bit more in terms of actual live NFC customers now.

數量相當可觀。我的意思是，這意義重大，因為別忘了我們現在負責 Google Places、標籤等的訂單履行，其中很多都與零售有關，所以實際的 NFC 用戶數量現在要多得多。

In terms of active substantial projects, the number continues to grow. And it is -- sort of it is growing in many different varieties, some with telcos; some with handset manufacturers; some with OS people; some with wallet people. And of course that is really -- your question so far has been on the infrastructure side. The area where we are investing a lot in is also on the solution side, where we are targeting a lot of what we believe will be end users directly, not infrastructure customers.

就正在進行的實質項目而言，數量持續增長。而且，這些項目種類繁多，有些是與電信業者合作，有些是與手機製造商合作，有些是與作業系統開發商合作，有些則是與錢包公司合作。當然，您目前的問題主要集中在基礎設施方面。我們投入大量資金的領域還包括解決方案方面，我們的目標客戶主要是我們認為的最終用戶，而不是基礎設施客戶。

Thanks. Hey, last question, for Melvin -- you said 71.9 million fully diluted share count; is that as of today or as of the end of calendar Q4?

謝謝。對了，最後一個問題，問梅爾文——你說完全稀釋後的股份數量是7190萬股；這是截至今天的數據，還是截至第四季末的數據？

Just under 72 million is as of today.

截至今日，略低於7,200萬。

Do you have a number for Q4?

你們有第四季的具體數據嗎？

For the end of December was 70.5 million.

截至12月底，數字為7050萬。

Very good. Thanks, gentlemen, and we'll speak to you next time.

很好。謝謝各位，下次再聊。

Michael Kim, Imperial Capital.

Michael Kim，帝國資本。

I saw that HP had a fairly nice-sized contract in HSPD-12; and just curious if you're starting to see that gain some momentum. You talked a little about that earlier but just wanted to get some expanded comments.

我注意到惠普在HSPD-12專案上簽了一份數額不小的合約；我只是好奇你是否也看到了這個專案正在取得進展。你之前稍微提到過，但我想聽聽你更詳細的評論。

Well, as you know, we are -- our chipsets are heavily used in the HP laptops and keyboards, so that would be -- this is an area where in 2011 we've seen a little bit of drop even in the uptake in that area. And we're expecting more growth in this area in 2012, for sure.

如您所知，我們的晶片組被大量用於惠普筆記型電腦和鍵盤，因此，在2011年，我們看到這方面的市場份額略有下降。但我們預計，2012年這方面的市佔率肯定會成長。

And then on transponder capacity do you continue to expect to increase at the same pace that you did in 2011 just based on your visibility?

那麼，根據您目前的了解，您是否預期轉發器容量將繼續以 2011 年的速度成長？

No, let me give you very specific guidance on this one, Michael. We've increased our primary capacity which is the making of inlays, by 80% in 2011. We expect to increase the secondary process during the first half of this year, which is the conversion into ticketing and the like. We have also been creating really new equipment because it doesn't exist for the SmartCore manufacturing. And we're going to be expecting during the year to be adding a little bit to that.

不，邁克爾，讓我給你一些具體的指導。 2011年，我們主要產能（即嵌體生產）提高了80%。我們預計今年上半年將提高輔助工序的產能，例如票務系統等。此外，我們也正在研發全新的設備，因為目前市面上還沒有用於SmartCore生產的設備。我們預計今年還會進一步增加這方面的產能。

Towards the end of the year we expect to be adding more capacity, both for primary and secondary processes and most likely that will be in the USA. So that's just sort of the broad answer.

預計到今年年底，我們將增加更多產能，包括初級和二級加工工藝，而且很可能在美國。以上就是大致情況。

In terms of CapEx in that the cash out associated with that during the year will probably be in the $3 million to $4 million and similar level in next year as well.

就資本支出而言，今年相關的現金支出可能在 300 萬至 400 萬美元之間，明年也將維持在類似水準。

And then you briefly talked about elevated scrap still. How are you progressing on reducing your scrap levels?

然後您簡要地提到了廢料仍然偏高的問題。您在降低廢料水準方面進展如何？

Not well enough -- is the short answer. We've improved over Q2 quite a bit. I think Q2, we had a $200,000 or $300,000 hit. Q3, we had a smaller hit, so we are improving. We are getting better.

簡而言之，還不夠好。不過，相較於第二季度，我們已經有了很大的進步。第二季度，我們損失了20萬到30萬美元。第三季度，損失有所減少，所以我們正在進步，情況正在好轉。

And the sort of things that we're doing are the following -- part of the problem, Michael, is we're running very, very high speed. So if you have a problem at the blink of an eye, you've got lots of scrap generated. In half an hour of problems you've got thousands and thousands of defective inlays. So one of the -- and we're very highly automated. So one of the things we've been doing is really increased operator training, significant increase in the operator training. The other thing is looking at some of the designs.

我們正在做的事情包括以下幾點——邁克爾，問題的一部分在於我們的生產速度非常非常快。所以，如果一眨眼的功夫出現問題，就會產生大量的廢料。半小時內出現問題，就會產生成千上萬個有缺陷的鑲嵌件。因此，我們採取的措施之一是——而且我們的自動化程度非常高。我們一直在做的其中一件事就是大幅加強操作員訓練。另一件事是重新審視一些設計。

So we're continuing to get a lot of improvement, but it' continues to be a disappointment and it continues to be -- quite often it is a few weeks after you've done it that you will discover it, and then you're looking how big a problem. So we're getting much better at it.

所以我們一直在取得很大進步，但仍然令人失望，而且通常情況下，幾週後你才會發現問題，然後你才會意識到問題有多嚴重。所以我們在這方面已經做得越來越好了。

I brought in one of my ex-colleagues from retirement who has done a lot of this for me in prior lives, and he's all over the place right now. And so we're optimistic that we will be able to -- we're getting better and better every quarter, and we're optimistic it will continue to get better and better. But I think it's important for us to be also forthcoming and tell you guys what is going on.

我請來了一位退休的老同事，他以前幫過我很多忙，現在忙得不可開交。所以我們很樂觀，相信我們能夠——我們每個季度都在進步，我們相信情況會繼續好轉。但我認為，坦誠地告訴大家發生了什麼事也很重要。

No, absolutely. That's certainly appreciated.

不，當然。我們非常感激。

And then switching gears to Cashless Betalen now that it has been rolled out more broadly, what is kind of the initial consumer usage? What kind of activity are you seeing on the broader rollout?

現在無現金支付已經更廣泛地推廣，那麼消費者最初的使用情況如何？在更廣泛的推廣過程中，您觀察到了哪些使用情況？

I think so far the consumers seem to be happy. It is simple. It is -- you know in Holland, the Dutch have been real pioneers in banking for many, many years. And if you look -- one of the reasons they have the largest online wallet is they really have two approaches where they are interfacing with the online wallet.

我認為目前為止消費者似乎都很滿意。這很簡單。你知道，在荷蘭，荷蘭人在銀行業一直是真正的先驅者，已經很多年了。如果你仔細觀察，你會發現他們擁有最大的線上錢包，原因之一就是他們實際上採用了兩種不同的方式與線上錢包對接。

One approach where they call remote and one approach where they call proximity. The remote approach is where you're paying for -- let's say you are in a bar, you're paying for your drink while you're sitting and it goes to the bar counter, the barman or the barmaid, and they get an indication that you've already paid, so no card technology. But obviously, in a very crowded setting and the like, that doesn't work too well and it gets confusing.

有兩種支付方式，一種叫做遠端支付，另一種叫做近距離支付。遠端付款是指——例如你在酒吧里，你坐在座位上付款，付款資訊會發送到吧台、調酒師或女招待那裡，他們會收到你已經付款的提示，這種方式不需要刷卡。但顯然，在人多擁擠的環境下，這種方式不太好用，而且容易造成混亂。

So the other application is proximity which is the Cashless Betalen, and we're and now sort of the exclusive players with Rabo on this. And that seemed to work very well in these settings.

所以另一個應用是近場支付，也就是無現金支付，我們現在是荷蘭合作銀行（Rabo）在該領域的獨家合作夥伴。而且在這些情況下，這項功能似乎運作得非常好。

But it also works very well in other settings such as parking; such as some fast food and especially company cafeteria, catering-type applications. And it's as open loop as you can get because it is really coming -- it is straight cash coming out of this online wallet that you feed in. So the reaction has been positive, customers like it. They find it easy to use and practical, and the retailers like it.

但它在其他場景中也表現出色，例如停車場；一些快餐店，尤其是公司食堂和餐飲服務場所。而且它完全是開放式的，因為款項會直接從你充值的線上錢包中扣除。因此，反應積極，顧客喜歡它，覺得它易於使用且實用，零售商也喜歡它。

And are you pretty far along or maybe can you comment on how you feel about similar type rollouts in other European or certainly in the US?

你們的進展如何？或是能否談談您對其他歐洲國家，尤其是美國類似推廣活動的看法？

I think what we're doing is in other European, yes -- in other European -- we're doing very similar work, obviously, in Germany, Switzerland, and France. We're really trying to build on our existing strength. So if you look at our existing strengths, which is now education and sports card holders and the like, we have a lot of people holding our cards. And the more we get these cards accepted in other areas, the more we can grow.

我認為我們在其他歐洲國家，像是德國、瑞士和法國，也在做著非常類似的工作。我們正努力鞏固和發展我們現有的優勢。例如，我們目前在教育和體育卡持有者等領域擁有大量持卡人。隨著這些卡片在其他領域的普及，我們的發展空間也會越來越大。

So it is -- but also it's an area, particularly when you have cash on cards rather than a cloud-based where you have to be making sure that you're not then getting into banking.

確實如此——但這也是一個需要注意的領域，特別是當你使用銀行卡而不是雲端儲存時，你必須確保自己不會因此而陷入銀行業務。

So Europe and Australia, we're fairly positive about. In terms of the US, it is really building on the strength in education sector. And of course, we're targeting the payment market with products, be it on the transponder side or on the reader and token side.

所以，我們對歐洲和澳洲市場相當樂觀。至於美國市場，我們正大力發展教育領域。當然，我們也積極拓展支付市場，推出包括應答器、讀卡機和代幣等在內的各種產品。

Great. And then on idOnDemand, obviously early stage, but some pretty compelling advantages on a service basis. Where do you see sort of the initial demand or the earliest penetration opportunities for idOnDemand?

太好了。 idOnDemand目前顯然還處於早期階段，但它在服務方面展現出一些相當有吸引力的優勢。您認為idOnDemand的初期需求或最早的市場滲透機會在哪裡？

Two answers, Michael. The first answer is any company that is made up of lots of acquisitions. So any large company where you've got -- that's been built over lots of acquisitions so they have many different legacy systems and they walk around and they have 10 or 15 different cards to get everywhere; and they are trying to foster an environment where there's a lot of cooperation between people but not losing control over their security. So these companies would be the biggest target.

邁克爾，有兩個答案。第一個答案是任何透過大量收購而建立的公司。任何大型公司，都是透過多次收購發展起來的，所以它們擁有許多不同的遺留系統，員工可能需要攜帶十幾種不同的卡才能訪問各個地方；而且它們還試圖營造一種員工之間高度協作的環境，同時又不失對安全的控制。因此，這些公司將是最大的目標。

The most ripe of these companies are the companies where they have one unified security structure, so you have the IT security and the physical security are coming together under one chief security officer. So wherever you find the chief security officer who's responsible for both IT and physical security, that is the most ripe environment, so that is sort of the first category.

這些公司中最成熟的是那些擁有統一安全架構的公司，即IT安全和實體安全由同一位首席安全官負責。因此，凡是首席安全官同時負責IT安全和實體安全的地方，都是最成熟的安全環境，這算是第一類。

The second category is anybody who is in the world of PKI and is looking for a fast implementation. Because to roll out a full-blown PKI infrastructure for most people takes 12 to 18 months. We can actually do it in a week or two weeks maximum. So that is just a remarkable speed if you have to do it. So it's either a complex one or someone who is in need of very quickly heightened level of security.

第二類使用者是那些身處 PKI 領域並尋求快速部署方案的人。因為對大多數人來說，部署一套完整的 PKI 基礎架構通常需要 12 到 18 個月的時間。而我們最多只需一到兩週就能完成。如果您急需部署 PKI，這絕對是一個驚人的速度。因此，這類用戶要不是專案本身比較複雜，就是急需快速提升安全性。

Got it, great. Well, thank you very much.

明白了，太好了。非常感謝。

Joe Munda, of Sidoti.

來自西多蒂的喬·蒙達。

Real quick, just going over the share count, share count has more than doubled in the last two years, and it seems like every acquisition you guys pursue you guys tend to use equity. I'm just wondering why the preference of using equity as opposed to debt. Is there limited access to debt for you guys to do these acquisitions?

簡單看一下股份數量，過去兩年股份數量翻了一番還多，而且你們似乎每次收購都傾向於使用股權融資。我只是好奇為什麼你們更傾向於使用股權融資而不是債務融資。是因為你們的債務融資管道有限，所以難以進行這些收購？

I think it's -- I'm not sure that that is actually true. I think what -- the 70 million is a fully diluted number which includes a lot of under water and a lot of historic stuff.

我覺得——我不確定這是否屬實。我認為——7000萬這個數字完全是稀釋後的，其中包含了大量水下資產和許多歷史遺留資產。

So -- and if you look at the acquisitions we have made, when we acquired polyright, for example, which was owned by Securitas and SkiData, that was a cash deal.

所以——如果你看看我們進行的收購，例如，當我們收購 Polyright 時，該公司當時由 Securitas 和 SkiData 擁有，那是一筆現金交易。

When we look at idOnDemand and that was a shared deal primarily because the management team, if you just wanted to give them cash, you could not give them enough cash, because they really believe in the future of their business, so that's why it ended up being share with their now being share-based. And quite often when you're looking in a valuation setting, you'll have these companies, especially a company like payment solution again. To give them cash we would have had to pay a much higher amount than we do with shares. Because payment solution is in the same exact business as us. And the people who invested in it invested in it because they believe in that business. So basically, by sitting together with them we can -- they are much more -- we can get into a much more realistic valuation when we're talking share-for-share.

讓我們來看idOnDemand的例子，那筆交易主要是以股權為基礎的，因為管理團隊如果只給他們現金，根本不夠，他們對公司的未來充滿信心。所以最終選擇了股權融資，也就是現在的股權融資方式。在估值過程中，我們經常會遇到這類公司，尤其是像支付解決方案這樣的公司。如果用現金支付，我們需要支付的金額會比現在用股權融資高很多。因為支付解決方案公司和我們從事的是完全相同的業務。投資人之所以投資，是因為他們看好這項業務。所以，透過與他們合作，我們可以——他們更有優勢——在進行股權融資時，我們可以得出更合理的估值。

I know if you are a much larger player, quite often people are looking for cash, but in our case that has not been the case. It has been really the case that shares are more highly priced. And when we are very dependent on the people -- and you will note that we have a unique situation where we've acquired a lot of entrepreneurs and we have retained nearly 100% of them if not actually 100%, that that comes in from them believing in what we're doing, wanting to be part of it, for the long term. I hope that answers --

我知道，如果你是一家規模更大的公司，人們通常會尋求現金，但我們的情況並非如此。事實上，我們的股票價格更高。而且，我們非常依賴員工——你會注意到，我們的情況很特殊，我們收購了很多創業者，並且幾乎全部留住了他們，甚至可以說是百分之百留住了。這是因為他們相信我們正在做的事情，想要長期參與其中。我希望這能解答你的疑問。

Ayman, yes, I understand that. It's just that okay, you had 21% growth in 2011 but almost no change on earnings year over year. I'm just trying to figure out what you guys are trying to do to reel in these expenses and the integration of all these acquisitions; it just seems like okay, you're adding revenue but the earnings or still losses are staying the same.

艾曼，是的，我明白。只是，好吧，你們2011年成長了21%，但獲利卻幾乎沒有變化。我只是想弄清楚你們是如何控制這些開支並整合所有收購的；看起來，你們雖然增加了收入，但盈利甚至虧損卻保持不變。

Yes, no; I think a couple of things, Joe. I think number one, if you look at last year we entered last year with a much lower cash balance, so we have a higher cash balance now. We're also -- even though it's a little bit we're paying down our debt.

是的，不，我想有幾點，喬。首先，如果你看看去年，我們年初的現金餘額要低得多，所以現在我們的現金餘額要高得多。而且，雖然還不多，但我們也在償還債務。

This is not an environment with a lot of uncertainty, where you want to have a lot of debt. And frankly, we want to be in a situation where we don't have -- we're not forced to go raise cash at -- we don't want to be doing that.

現在的環境充滿不確定性，我們不希望背負大量債務。坦白說，我們希望避免被迫籌集資金——我們不想那樣做。

I mean we filed in a shelf and the shelf is sitting there, but we really have no immediate and no current plans to pursue that. And we don't want to be increasing our debt.

我的意思是，我們確實把這個提案擱置了，它就一直放在那裡，但我們目前沒有任何立即推進的計劃。而且我們也不想增加債務。

I understand that. It just seems like you're diluting the shareholders that are currently holding the stock because it's --

我明白。只是感覺這樣做會稀釋現有股東的權益，因為—

Well, actually, Joe, I really beg to differ strongly because if we are keeping the same platform, then we are diluting the shareholders, but if we are actually expanding the platform and improving the story with a shared deal, then that is not what we're doing.

實際上，喬，我強烈反對你的觀點，因為如果我們保持相同的平台，那麼我們就稀釋了股東的權益；但如果我們透過共享協議擴展平台並改善故事，那麼我們就不是在做這件事了。

And keep in mind that the number of acquisitions we've done in the last -- since we started Identive is actually minimal. We've added a little bit of volume since -- we've added like 10%, 12% revenue, not a huge amount of revenue coming from acquisitions.

請記住，自Identive成立以來，我們進行的收購數量實際上非常少。我們確實增加了一些業務量——增加了約10%到12%的收入，但來自收購的收入佔比並不大。

Okay.

好的。

My other question is for Melvin. Melvin, what was the -- can you break down gross margin by ID management and ID products for the fourth quarter?

我的另一個問題是問梅爾文的。梅爾文，你能把第四季的身份管理產品和身分識別產品的毛利率細分一下嗎？

It's actually in the earnings release, but we can pull that out for you immediately.

實際上，相關資訊在財報中，但我們可以立即為您提取出來。

I think you guys have it for the year; I just need it for the quarter.

我覺得你們今年的預算應該夠用了；我只需要這個季度的預算。

For the quarter -- the quarterly numbers -- I've got the annual, the year numbers. ID management -- this is on a GAAP basis, 45% and the ID products 37%.

季度數據——也就是季度業績——我這裡有年度數據。身分管理－這是以美國的通用會計準則計算－佔45%，身分識別產品佔37%。

The quarter was 46% and 35%.

該季度分別為 46% 和 35%。

Okay.

好的。

That is the GAAP numbers, which will be in the 10-K and so on.

那是GAAP數據，會在10-K等文件中列出。

Okay.

好的。

Ayman, also, can you give us some more color on time horizon for what you think in your mind for adoption by handset providers and retailers for NFC solutions going forward? Are you seeing -- I know you had mentioned Google Places, but are you seeing increased preference towards NFC by some of these retailers and more handset makers coming to you guys with ideas and solutions that they want to provide?

艾曼，您能否再詳細談談您對未來手機廠商和零售商採用NFC解決方案的時間預期？我知道您之前提到過Google Places，但您是否看到一些零售商越來越傾向於使用NFC，以及更多手機廠商主動聯繫你們，提出他們想要提供的想法和解決方案？

Well, I think there are two different things happening here. There is the world of the infrastructure providers, be it the handset people or the wallet people and all the rest of -- the people who are creating NFC as a technology and making it available for the consumer. So you are getting just a huge amount of different projects and ideas and applications. And as you know, the projections that -- by the end of this year will be about 100 million smartphones with NFC in them. I think NXP recently disclosed that they have like 130 different models coming out -- BlackBerry or RIMs that they have NFC in most of their phones, if not all. Nokia, which is one of the original players, is very aggressively pushing it. So in terms of how much NFC out there, it is happening and happening pretty fast.

我認為這裡存在著兩種不同的情況。一種是基礎設施供應商，包括手機廠商、錢包廠商以及其他所有致力於開發NFC技術並將其推向市場的廠商。因此，你會看到大量的項目、創意和應用。如你所知，預計到今年年底，將有大約1億支智慧型手機配備NFC功能。恩智浦半導體（NXP）最近透露，他們即將推出約130款不同的機型——黑莓和RIM等品牌的手機，如果不是全部的話，也幾乎全部都配備了NFC功能。諾基亞作為NFC技術的早期參與者之一，正在大力推廣這項技術。所以，就NFC的普及程度而言，它正在迅速發展。

For our infrastructure business the most important thing is the inevitability of NFC. And I think right now we see NFC as inevitable. It is coming. It is being rolled out. And how quickly it happens it doesn't actually matter so much in terms of our infrastructure products because people will be building that up.

對於我們的基礎設施業務而言，最重要的是NFC技術的必然性。我認為目前NFC技術已經勢在必行，它正在到來，正在推廣。至於它普及的速度，對我們的基礎設施產品而言其實並不那麼重要，因為人們會不斷地建置和部署NFC系統。

In terms of our software and solutions platform, which we will be launching and talking to you guys in more detail in San Francisco in three months, this is really where how many people actually have NFC and are using it becomes much more important. And in terms of that, I think this will vary regionally quite a bit. So in a country like Japan I would say it is going to happen and it is happening more or less now and in the next two to three years. In the US I think it will take a lot longer.

就我們的軟體和解決方案平台而言（我們將在三個月後於舊金山正式發布，並向各位詳細介紹），真正重要的是有多少人擁有並正在使用NFC技術。我認為這方面會存在很大的地域差異。在日本這樣的國家，我認為NFC技術將會普及，而且現在或多或少已經開始普及，未來兩到三年內就會持續發展。而在美國，我認為則需要更長的時間。

And also, unlike most people, we actually do not necessarily believe and are not necessarily hyper-focused on NFC payment applications which we believe are very important; but we believe that the promise of NFC is much more going to be in the fun-type applications and in the applications where the consumer is getting -- is doing something cool, something that they feel good about, whether they are exchanging a picture; whether they are friending somebody by touching phones; or following somebody on Twitter; or checking into a foursquare, or -- so all of these type of consumer applications; and also the advertising applications and the like.

而且，與大多數人不同，我們實際上並不一定相信，也不一定過度關注 NFC 支付應用，儘管我們認為這些應用非常重要；但我們認為 NFC 的真正價值在於趣味性應用，在於消費者能夠做一些很酷、讓他們感覺良好的事情的應用，無論是交換照片；通過觸摸手機添加好友；在 Twitter 上關注某人；在 Foursquare 上簽到，等等——所有這些應用廣告類型的消費者；

And then on my last question on the payment solutions in the stadiums, the contactless payment -- how does it work? And where do you refill the money on the card and how long does the money on the card last? Where you had mentioned that you guys also were entitled to any money left over on the card. How long -- what's the expiration time on that card? And where does the user go to refill their card? I'm a little confused by that.

最後一個問題是關於體育場館的支付解決方案，也就是非接觸式支付——它是如何運作的？在哪裡可以儲值？卡里的餘額可以用多久？您之前提到過，你們也有權利獲得卡里剩餘的餘額。這張卡的有效期限是多久？用戶該去哪裡儲值？我對此有點困惑。

Right; these are very good questions. I think generally if the money is unused after three years, technically, we are entitled to claim it back, so that is the answer to your first question.

沒錯，這些都是很好的問題。我認為一般來說，如果這筆錢三年後還沒用上，理論上我們有權利要求退還，所以這就是你第一個問題的答案。

In terms of how the users fill in the money, they fill it in, in one of two different ways, either through people who are selling the card and filling the cards at the actual events, or online. And one of the particular reasons we really love payment solution is our view of how that will be in the world of NFC. Because basically, see, right now it is a buy/build/operate sort of model. So we have these long-term contracts with several football stadia. And as we get more cost effective in doing it through NFC or through other applications and through other ideas, then we are improving the EBITDA. It is your sort of -- you can look it financially as buying future EBITDA but you can also look at it as I've got now 500,000 consumers, a total of 850,000. So these consumers are a real value force.

使用者儲值的方式有兩種：一種是透過售卡人員在活動現場充值，另一種是線上儲值。我們之所以如此看好支付解決方案，其中一個原因在於我們對它在NFC領域的發展前景充滿信心。目前，我們採用的是一種「購買/建造/營運」模式。我們與多家足球場館簽訂了長期合約。隨著我們透過NFC或其他應用和創新理念降低成本，我們的EBITDA（息稅折舊攤提前利潤）也會隨之提升。從財務角度來看，這相當於購買未來的EBITDA；但從另一個角度來看，我們現在擁有50萬用戶，總共85萬用戶。這些用戶是真正的價值來源。

And I'm sorry, and do you get a transaction fee from --?

不好意思，請問您會從…收取交易費嗎？

Yes, yes. We basically get -- we get paid one of two ways -- either we get X% of revenues above Y, or we get Z% of total revenue.

是的，是的。我們基本上有兩種收入方式——要么獲得超過 Y 部分的收入的 X%，要么獲得總收入的 Z%。

Okay. And do you think that there's any plan in the future where instead of a card that it would be with the person's phone or a chip --?

好的。你認為未來是否有可能用手機或晶片取代實體卡？

Absolutely. Absolutely. And we would definitely -- you see, for us right now payment solution has been really happy with the revenue left on card. We are not 100% sure that this is really what we want. We want more consumers and we want them to use the cash on card. So we want to try to make it easier for them to spend the money and easier for them to claim it back because ultimately we want to increase the number of users.

當然。當然。而且我們肯定會——你看，就我們目前的支付解決方案而言，我們對卡內剩餘收益非常滿意。但我們並不完全確定這是否是我們真正想要的。我們想要更多消費者，也希望他們使用銀行卡支付。所以我們希望讓他們更容易消費，也更容易追回欠款，因為我們的最終目標是增加用戶數。

Yes, because I'm just thinking because typically those fans are usually like season-ticket holders. And every year they're going, so I'm just trying to figure how much money do you really expect to be left on a card, you know?

是的，因為我就在想，這些球迷通常都是季票持有者。他們每年都會去，所以我只是想弄清楚，你預計每張卡上會剩下多少錢，你知道嗎？

Well, no, keep in mind where we have these systems deployed you can't buy anything unless you have a card.

不，請記住，在我們部署這些系統的地方，如果沒有卡，你就什麼都買不了。

Oh, you can't buy anything unless you have the card. Oh, okay.

哦，沒有這張卡什麼都買不了。哦，好的。

Yes, yes, this was one of the conditions for them deploying these systems. So if you're holding a concert in a stadium, you can pay with cash, but if you're going in for a soccer game, you have to use the card. So next time you're in Europe, we'll take you to a game in Dortmund or something and we'll show you how it works.

是的，沒錯，這是他們部署這些系統的條件之一。所以，如果你在體育場舉辦演唱會，你可以用現金支付，但如果你是去看足球比賽，你必須刷卡。下次你來歐洲的時候，我們可以帶你去多特蒙德之類的地方看場比賽，給你示範怎麼用。

I was there last week at San Siro in Milan; they didn't have it.

我上週在米蘭的聖西羅球場，他們那裡沒有。

Yes. So far it is really -- it is Germany, a couple of places in Switzerland, one place in England and now a few places in Ukraine.

是的。目前確實是──德國、瑞士的幾個地方、英國的一個地方，現在又增加了烏克蘭的幾個地方。

Okay. All right, great. Thank you.

好的。太好了。謝謝。

At this time I'd like to turn the call over to Ms. Dye for closing remarks.

現在我想把電話交給戴伊女士，請她作總結發言。

Thank you. Thanks very much, everyone, for joining us today. We look forward to updating you of our progress as the year progresses. And we'll look forward to talking with you next quarter. Thank you.

謝謝大家。非常感謝各位今天蒞臨。我們將在今年餘下的時間向大家報告我們的進展。我們也期待下個季度與大家再次交流。謝謝。

Thank you for your participation in today's conference. You may now disconnect. Have a great day.

感謝您參加今天的會議。您現在可以斷開連線了。祝您今天過得愉快。