Identiv Inc (INVE) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to Identiv's presentation of its fourth quarter and fiscal year 2023 earnings call.

下午好，歡迎參加 Identiv 的第四季和 2023 財年財報電話會議演示。

My name is John, and I will be your operator this afternoon.

我叫約翰，今天下午我將擔任您的接線生。

Joining us for today's presentation are the company's CEOs, Steven Humphreys; and CFO, Justin Scarpulla.

加入我們今天的演講的是該公司的執行長 Steven Humphreys；和財務長賈斯汀·斯卡普拉。

(Operator Instructions)

（操作員說明）

Before we begin, please note that during this call, management may be making references to non-GAAP financial measures or guidance, included non-GAAP adjusted EBITDA, non-GAAP gross margin, and non-GAAP operating expenses.

在我們開始之前，請注意，在本次電話會議中，管理層可能會參考非 GAAP 財務指標或指導，包括非 GAAP 調整後 EBITDA、非 GAAP 毛利率和非 GAAP 營運費用。

In addition, during the call, management will be making forward-looking statements.

此外，在電話會議期間，管理階層將做出前瞻性聲明。

Any statement that refers to expectations, project actions or other characteristics of future events, including future financial results, future business and market conditions, strategic review, and future plans and prospects is a forward-looking statement.

任何涉及未來事件的預期、專案行動或其他特徵的聲明，包括未來財務業績、未來業務和市場狀況、策略審查以及未來計劃和前景，均為前瞻性聲明。

Actual results may differ materially from those expressed in these forward-looking statements.

實際結果可能與這些前瞻性陳述中所表達的結果有重大差異。

For more information, please refer to the risk factors discussed in the documents filed from time to time with the SEC, including the company's latest annual report on Form 10-K and quarterly report on Form 10-Q.

欲了解更多信息，請參閱不時向 SEC 提交的文件中討論的風險因素，包括公司最新的 10-K 表年度報告和 10-Q 表季度報告。

Identiv assumes no obligation to update these forward-looking statements which speak as of today.

Identiv 不承擔更新這些截至今日的前瞻性聲明的義務。

I will now turn the call over to CEO, Steven Humphreys, for his comments.

我現在將把電話轉給執行長史蒂文·漢弗萊斯 (Steven Humphreys)，徵求他的意見。

Sir, please proceed.

先生，請繼續。

Thanks, operator, and thank you all for joining us.

謝謝運營商，也謝謝大家加入我們。

Before we get into our business and financial comments, I need to acknowledge a mistake we just made in our processes.

在我們進行業務和財務評論之前，我需要承認我們剛剛在流程中犯的錯誤。

We mistakenly put our earnings results up on our website shortly before the market closed.

在市場收盤前不久，我們錯誤地將獲利結果發佈在我們的網站上。

We pulled it down when we became aware of it and immediately contacted Nasdaq.

當我們意識到這一點時，我們將其撤下，並立即聯繫了納斯達克。

This has never happened before, and we've already put in place very tight cross-check processes to make sure it never happens again.

這種情況以前從未發生過，我們已經實施了非常嚴格的交叉檢查流程，以確保這種情況不會再發生。

We pride ourselves on careful and complete disclosures and communications with our investors.

我們為與投資者進行仔細、完整的揭露和溝通而感到自豪。

Investors depend on our communications being available as expected and only then.

投資人依賴我們的溝通是否如預期進行，而且只有這樣。

I personally apologize for this, and we will not let it happen again.

我個人對此表示歉意，我們不會讓這種情況再次發生。

That was doubly unfortunate because it's a negative way to open comments about our business where we're making some very good progress.

這是雙重不幸的，因為這是對我們正在取得一些非常好的進展的業務發表評論的消極方式。

So we'll address any questions about this or anything else in the Q&A section as always, but let me first get into our business update.

因此，我們將一如既往地在問答部分解決有關此問題或其他任何問題，但讓我先介紹一下我們的業務更新。

2023 finished with the fourth quarter that reflected our priorities of disciplined growth and balance sheet strengthening to position us for investment to accelerate our strategic position in both our RFID-enabled IoT and physical security businesses.

2023 年第四季結束時，我們的優先事項是嚴格的成長和強化資產負債表，這使我們能夠進行投資，以加快我們在 RFID 物聯網和實體安全業務中的戰略地位。

Consistent with that strategy, in Q4, we kept our focus on high-margin revenue that supports our balance sheet and margins.

與該策略一致，在第四季度，我們繼續專注於高利潤收入，以支持我們的資產負債表和利潤率。

Q4 net revenue was $29 million, while we drove balance sheet and working capital strength by reducing non-GAAP operating expenses below $10 million.

第四季淨收入為 2,900 萬美元，同時我們透過將非 GAAP 營運費用減少到 1,000 萬美元以下來推動資產負債表和營運資本實力。

Our cash position was improved by $3.6 million in free cash flow in Q4, the highest free cash flow quarter since Q4 2020, reflecting a sequential $4.7 million swing from Q3 2023.

第四季度，我們的現金狀況自由現金流改善了 360 萬美元，這是自 2020 年第四季以來自由現金流最高的季度，反映出與 2023 年第三季度相比連續波動 470 萬美元。

In addition to driving revenue in the fourth quarter, we put in substantial efforts towards the future direction of the business.

除了推動第四季度的營收成長外，我們還為業務的未來方向做出了大量努力。

As discussed on recent earnings calls, our Board initiated a strategic review to assess and execute the best strategy to maximize value creation opportunities of our two growth businesses, IoT and physical security.

正如最近的財報電話會議中所討論的那樣，我們的董事會發起了一項戰略審查，以評估和執行最佳戰略，以最大限度地提高我們兩個增長業務（物聯網和物理安全）的價值創造機會。

Both require dedicated management focus and execution and have different capital needs to drive growth.

兩者都需要專門的管理重點和執行力，並且有不同的資本需求來推動成長。

As you'll note in our financial results, there's substantial expenses below the operating expense line, some of which are associated with activities related to making progress towards a strategic action to generate capital and focus.

正如您在我們的財務表現中註意到的那樣，營運費用線以下有大量費用，其中一些費用與推動策略行動取得進展以產生資本和焦點相關的活動有關。

We certainly wouldn't be expanding this cash unless we're making tangible progress.

除非我們取得實際進展，否則我們當然不會增加這筆現金。

We're, of course, continuing this activity in Q1 and continue to expect completion in early 2024 as we said in the end of last year.

當然，正如我們去年年底所說，我們將在第一季繼續進行這項活動，並繼續預計在 2024 年初完成。

In the near term, we expect to announce specific actions to create substantial investor value in three ways.

短期內，我們預期將宣布具體行動，透過三種方式創造可觀的投資者價值。

First, by investing in our transformational growth opportunities.

首先，投資我們的轉型成長機會。

Second, by strengthening our position in the verticals we've been strategically targeting, particularly healthcare and medical applications, but also across the category of specialty complex RF-enabled IoT solutions, which we call SCRI.

其次，透過加強我們在策略目標垂直領域的地位，特別是醫療保健和醫療應用，而且還跨專業複雜的射頻物聯網解決方案類別，我們稱之為 SCRI。

And third, by bringing in world-class leadership to drive our strategy and execution to lead in this major market opportunity.

第三，透過引入世界一流的領導力來推動我們的策略和執行，以引領這一重大市場機會。

Now before turning the call over to Justin to review our financial results, I'll review our business and operational updates for the fourth quarter, which we believe position us very well to leverage our next strategic steps.

現在，在將電話轉交給賈斯汀審查我們的財務業績之前，我將審查我們第四季度的業務和營運更新，我們相信這使我們能夠很好地利用我們的下一個策略步驟。

Starting with the IoT segment of our identity business.

從我們身分業務的物聯網部分開始。

In Q4, we focused on the strategic IoT verticals of healthcare, smart packaging, and logistics, with margins remaining a key priority.

在第四季度，我們專注於醫療保健、智慧包裝和物流等策略物聯網垂直領域，而利潤仍然是關鍵優先事項。

Volume wise, we shipped nearly 200 million units in 2023.

從銷量來看，2023 年我們的出貨量接近 2 億台。

We continue to build on our early leadership in SCRI.

我們繼續鞏固我們在 SCRI 的早期領導地位。

Though still in early stage, this category is our strategic focus.

儘管仍處於早期階段，但該類別是我們的策略重點。

Because of the leadership we've established, we're consistently getting R&D increase to develop solutions for new potentially high-volume use cases.

由於我們已經建立的領導地位，我們不斷增加研發力度，為新的潛在大批量使用案例開發解決方案。

Our most important vertical for SCRI, healthcare, accounts for more than half of our NFC-based revenues.

我們 SCRI 最重要的垂直領域——醫療保健，占我們基於 NFC 的收入的一半以上。

This reflects our drive over the past two years to focus on healthcare applications.

這反映了我們過去兩年專注於醫療保健應用的努力。

Even at their current early-stage volumes, some of these healthcare applications carry gross margins in the 40% range with more margin opportunity over time.

即使在目前的早期階段，其中一些醫療保健應用的毛利率也達到了 40%，並且隨著時間的推移，利潤機會也會增加。

In the healthcare vertical, we have ongoing pilot projects with Arthrex, Schreiner, and over two dozen other healthcare companies.

在醫療保健垂直領域，我們與 Arthrex、Schreiner 和其他兩打醫療保健公司正在進行試點計畫。

More broadly, we continue to focus on pilot programs deploying innovative SCRI products.

更廣泛地說，我們繼續專注於部署創新 SCRI 產品的試點專案。

Based on the current TAM's in each of these specialized verticals of the healthcare market, we believe some of these applications could scale to $20 million annually or higher.

根據當前醫療保健市場各個專業垂直領域的 TAM，我們相信其中一些應用程式每年的規模可能會達到 2000 萬美元或更高。

Consistent with its focus, in a recent article in the RFID Journal, we announced 15 pilot programs in Europe for a Bluetooth-based solution we developed in collaboration with Energous and Wiliot.

與其重點一致，在 RFID 雜誌最近發表的一篇文章中，我們宣佈在歐洲針對我們與 Energous 和 Wiliot 合作開發的基於藍牙的解決方案開展 15 個試點計劃。

This solution is great for cold chain monitoring in warehouses and refrigerated trucks.

此解決方案非常適合倉庫和冷藏車的冷鏈監控。

We announced one of the first adopters, the logistics company RPL group.

我們宣布物流公司 RPL 集團是首批採用者之一。

The initial feedback has been positive, and we expect to see further pilots deployed through 2024 with actual deployments ramping up later this year.

最初的回饋是正面的，我們預計到 2024 年將有更多試點部署，而實際部署將在今年稍後增加。

Relatedly, our relationship with Wiliot remained strong.

與此相關的是，我們與 Wiliot 的關係仍然牢固。

Our battery-assisted tag is a finalist for Best New Product at next month's RFID Journal Awards, and we delivered nearly 14 million units to Wiliot in Q4.

我們的電池輔助標籤入圍了下個月的 RFID 雜誌獎最佳新產品決賽，我們在第四季度向 Wiliot 交付了近 1400 萬個標籤。

As I've mentioned before, demand can fluctuate quarter to quarter in early-stage applications like this.

正如我之前提到的，在像這樣的早期應用程式中，需求可能會按季度波動。

And our understanding is that Wiliot is undergoing a technology transition.

我們的理解是 Wiliot 正在經歷技術轉型。

So we expect a pause in shipments for the next two to four quarters.

因此，我們預計未來兩到四個季度的出貨量將暫停。

Fiscal year '23 revenue from Wiliot was substantial.

Wiliot 的 23 財年收入非常可觀。

So we'll be working to fill the temporary gap with alternative demand.

因此，我們將努力透過替代需求來填補暫時的缺口。

Because of the multiple pilots and our close relationship with Wiliot and other leaders in the category of BLE-enabled RFID, we believe we're in a good position to offset some of this pause and to continue to lead the category.

由於多個試點項目以及我們與 Wiliot 和 BLE RFID 領域其他領導者的密切關係，我們相信我們有能力彌補部分停頓，並繼續引領該領域。

Another BLE company, Nexite, is also a partner, with a focus on connected retail products.

另一家 BLE 公司 Nexite 也是合作夥伴，專注於連網零售產品。

And we expect volumes from Nexite, Energous, and others to grow throughout 2024.

我們預計 Nexite、Energous 和其他公司的銷售量將在 2024 年持續成長。

Our technology, production, and process expertise also encouraged two of the largest enterprise customers deploying BLE-enabled RFID to work directly with us for their next stage of technology deployment.

我們的技術、生產和流程專業知識也鼓勵部署支援 BLE 的 RFID 的兩家最大的企業客戶直接與我們合作進行下一階段的技術部署。

In the consumer engagement part of our strategy, we've seen strong momentum for our bitse.io IoT cloud platform.

在我們策略的消費者參與部分，我們看到了 bitse.io 物聯網雲端平台的強勁勢頭。

Last week, we announced the release of bitse 3.0 with real-time visibility and traceability, making it an ideal solution for healthcare pharma, medical devices, smart packaging, specialty retail, and industrial applications.

上週，我們宣布發布具有即時可見性和可追溯性的bitse 3.0，使其成為醫療保健製藥、醫療器材、智慧包裝、專業零售和工業應用的理想解決方案。

A new bitse-related initiative is with Mazars, a leading international audit, tax, and advisory firm on a new AI-enabled retail operations solution.

與領先的國際審計、稅務和諮詢公司瑪澤 (Mazars) 合作推出了一項與 Bitse 相關的新計劃，推出新的人工智慧零售營運解決方案。

This combines Mazars' ERP systems expertise with our betsie.io platform, NFC tags, and Microsoft Dynamics 365.

這將 Mazars 的 ERP 系統專業知識與我們的 betsie.io 平台、NFC 標籤和 Microsoft Dynamics 365 結合。

We work directly with the Microsoft R&D team to integrate Microsoft AI assistant copilot with the data analytics enabled with bitse.

我們直接與 Microsoft 研發團隊合作，將 Microsoft AI Assistant copilot 與 bitse 啟用的資料分析整合。

At the recent National Retail Federation annual show in January, the Mazars team demoed their new total experienced offering for retailers in the Microsoft booth.

在最近一月份舉行的全國零售聯合會年度展會上，Mazars 團隊在 Microsoft 展位上展示了他們為零售商提供的新的全面體驗產品。

We're also co-hosting a virtual panel with Mazars and NFC Forum on March 28 on the Store the Future.

我們也將與 Mazars 和 NFC Forum 於 3 月 28 日共同舉辦 Store the Future 的虛擬小組討論。

Now opening our Thailand production was another important step in 2023.

現在在泰國開設生產基地是 2023 年邁出的另一個重要步驟。

As expected, our Thailand capacity for primary processes is 200 million units exiting 2023.

如預期，到 2023 年，我們在泰國的初級加工產能將達到 2 億件。

Early-production results from this facility suggest the potential for even higher production margins gains than we originally expected.

該工廠的早期生產結果表明，生產利潤率有可能比我們最初預期的更高。

We've now also leased the adjacent building, securing our ability to expand efficiently.

我們現在也租用了鄰近的建築物，確保了我們高效擴張的能力。

So let me now talk about our premises security segment.

現在讓我談談我們的場所安全部分。

After a very strong Q3, where we set a new record for segment revenues in the quarter, we saw a normal seasonality.

在經歷了非常強勁的第三季度之後，我們創下了該季度部門收入的新紀錄，我們看到了正常的季節性。

Our core PAX business was up 9% for 2023, with underlying faster growth partly offset as we transition our legacy video products into sales of our new velocity vision and vision AI platform.

我們的核心 PAX 業務在 2023 年增長了 9%，但隨著我們將傳統視訊產品轉變為新的速度視覺和視覺 AI 平台的銷售，潛在的更快成長被部分抵消。

Now product releases late in 2023 included the full launch of our cloud-first small-to-medium business product, Premise, along with a totally new edge controller, our EG-2, and our premise mobile app, setting the standard for high security cloud offering in the SMB space.

現在，2023 年底發布的產品包括全面推出我們的雲端優先中小型企業產品 Premise，以及全新的邊緣控制器、我們的 EG-2 和我們的前提行動應用程序，為高安全性設定了標準中小企業領域的雲端產品。

We also launched Vision AI, our video intelligence solution that's now a standard feature in all of our video offerings; and ScrambleFactor, our new multifactor intelligent reader.

我們還推出了 Vision AI，這是我們的視訊智慧解決方案，現已成為我們所有視訊產品的標準功能；和 ScrambleFactor，我們新的多因素智慧閱讀器。

This is more than a product.

這不僅僅是一種產品。

It's the next generation of our iconic ScramblePad with biometrics and a state-of-the-art LCD touch screen keypad, creating a flexible access point with multiple authentication methods.

它是我們標誌性 ScramblePad 的下一代產品，採用生物識別技術和最先進的 LCD 觸控螢幕鍵盤，創建具有多種身份驗證方法的靈活存取點。

We've designed it to easily expand to mobile and frictionless access, video, audio, and other entry point capabilities to support the next generation of infrastructure light cloud-based access control platforms.

我們將其設計為可輕鬆擴展到行動和無摩擦存取、視訊、音訊和其他入口點功能，以支援下一代基礎設施輕型基於雲端的存取控制平台。

Now, as you can tell from these major product launches across access, video, and intelligent reader infrastructure, from a product perspective, we came out of 2023 and a stronger position than we've ever been.

現在，從這些跨接入、視訊和智慧閱讀器基礎設施的主要產品發布中可以看出，從產品角度來看，我們已經走出了 2023 年，並且處於比以往任何時候都更強大的地位。

Another metric of our progress is our high-margin software services and recurring revenues, which increased to over 20% of Premises revenues.

衡量我們進步的另一個指標是我們的高利潤軟體服務和經常性收入，其佔場所收入的比例已增加至 20% 以上。

There's still a portion of revenues that are perpetual license, which we expect to convert to subscriptions.

仍有一部分收入是永久許可，我們希望將其轉換為訂閱。

Now this is a relatively near-term recurring revenue growth opportunity because it's grounded in our own customer base.

現在，這是一個相對近期的經常性收入成長機會，因為它植根於我們自己的客戶群。

Supporting our federal strength, the US General Services Administration approved Identiv's Velocity 3.8.5 software, Hirsch hardware, uTrust Readers for listing on the GSA Approved Products List following a rigorous testing led by the GSA APL FIPS 201 Evaluation Program.

為了支持我們的聯邦實力，經過 GSA APL FIPS 201 評估計畫主導的嚴格測試，美國總務管理局批准將 Identiv 的 Velocity 3.8.5 軟體、Hirsch 硬體和 uTrust Readers 列入 GSA 批准產品清單。

Our fourth quarter also reflect progress in key strategic directions, including our OEM and federal sales, hospital and healthcare systems, and velocity vision pilots.

我們的第四季也反映了關鍵策略方向的進展，包括我們的 OEM 和聯邦銷售、醫院和醫療保健系統以及速度視覺試點。

So in summary, our Premises business strengthened industry-wide, with software services and recurring revenues reaching well over 20% of Premises revenues as we exited 2023 and positioned strongly with the product releases I described earlier across cloud, AI analytics, SMB, and next-generation sensors and biometrics.

總而言之，我們的本地業務在全行業範圍內得到了加強，隨著我們退出2023 年，軟體服務和經常性收入達到了本地業務收入的20% 以上，並透過我之前描述的跨雲、人工智慧分析、中小企業和未來的產品發布佔據了強勢地位。

We focused our RFID business on SCRI applications, particularly in healthcare and consumer engagement, supported by continued progress developing our bitse.io data analytics platform.

我們將 RFID 業務重點放在 SCRI 應用上，特別是在醫療保健和消費者參與方面，並得到了 bitse.io 數據分析平台開發不斷進展的支持。

And from an and investor perspective, in Q4, we strengthened nearly all aspects of the strategic foundation of our businesses.

從投資者的角度來看，在第四季度，我們加強了業務策略基礎的幾乎所有方面。

We continue to believe we're on track to complete our strategic review and actions early in 2024.

我們仍然相信，我們預計在 2024 年初完成策略審查和行動。

So with that, I'll pass the call over to Justin to review our fourth-quarter financial results in more detail.

因此，我將把電話轉給賈斯汀，以更詳細地審查我們第四季度的財務業績。

Justin?

賈斯汀？

Thanks, Steve.

謝謝，史蒂夫。

As Steve mentioned, in 2023, we are able to deliver revenue growth, consistent margins, controlled operating expenses, and generate positive cash flow from operations.

正如史蒂夫所提到的，到 2023 年，我們能夠實現收入成長、穩定的利潤率、控制營運費用，並從營運中產生正現金流。

This enabled us to maintain a strong working capital position.

這使我們能夠保持強勁的營運資金狀況。

We achieved these results while focusing on driving disciplined growth in both our Identity and Premises businesses, including our new cutting-edge Premises products, our focus on SCRI, and the continued build-out of our operational Thailand facility, which positions the company to continue its growth momentum in 2024.

我們在取得這些成果的同時，專注於推動身份和場所業務的有序增長，包括我們新的尖端場所產品、我們對 SCRI 的關注以及我們泰國運營設施的持續建設，這使公司能夠繼續發展2024年的成長勢頭。

Fourth-quarter 2023 revenue was $29 million, in line with our previously announced guidance range and flat versus the comparable prior-year period.

2023 年第四季營收為 2,900 萬美元，符合我們先前公佈的指導範圍，與去年同期持平。

Fiscal year 2023 was $116.4 million, a 3% increase compared to fiscal year 2022.

2023 財年為 1.164 億美元，比 2022 財年成長 3%。

Fourth-quarter 2023 GAAP and non-GAAP adjusted gross margins were 35% and 37%, respectively, as compared to 36% and 38% in 2022.

2023 年第四季 GAAP 和非 GAAP 調整後毛利率分別為 35% 和 37%，而 2022 年為 36% 和 38%。

The year-over-year decline in margins versus the prior-year period is attributable to the product mix between Premises and Identity segment sales.

與去年同期相比，利潤率年減的原因是場所和身分部門銷售之間的產品組合。

Fiscal year 2023 GAAP and non-GAAP adjusted gross margins were 36% and 38%, respectively, which is consistent with 2022.

2023 財年 GAAP 和非 GAAP 調整後毛利率分別為 36% 和 38%，與 2022 年一致。

GAAP and non-GAAP adjusted gross margin reflect our continued focus on maintaining our margin profile in 2023 despite the rising cost of materials, while continuing to increase our investments in technology and manufacturing, processes and equipment.

GAAP 和非 GAAP 調整後毛利率反映出，儘管材料成本不斷上漲，我們仍致力於維持 2023 年的利潤狀況，同時繼續增加對技術和製造、製程和設備的投資。

We remain committed to a long-term non-GAAP adjusted gross margin target of 40% to 45%.

我們仍致力於 40% 至 45% 的長期非 GAAP 調整毛利率目標。

GAAP and non-GAAP adjusted operating expenses for the fourth-quarter 2023, which include research and development, sales and marketing, and general and administrative costs, totaled $11.8 million and $9.8 million, respectively, as compared to $10.2 million and $9.3 million in 2022.

2023 年第四季 GAAP 和非 GAAP 調整後營運費用（包括研發、銷售和行銷以及一般和管理費用）總計分別為 1,180 萬美元和 980 萬美元，而 2022 年為 1,020 萬美元和 930 萬美元。

Fourth-quarter 2023 GAAP operating expenses include $0.4 million in strategic review-related costs.

2023 年第四季 GAAP 營運費用包括 40 萬美元的策略審查相關費用。

GAAP and non-GAAP adjusted operating expenses for fiscal 2023 totaled $47.2 million and $41.3 million, respectively, as compared to $41.3 million and $37.1 million in 2022.

2023 財年按 GAAP 和非 GAAP 調整後的營運支出總額分別為 4,720 萬美元和 4,130 萬美元，而 2022 年為 4,130 萬美元和 3,710 萬美元。

Q4 GAAP net loss attributable to common shareholders was $1.9 million, or $0.08 per share, compared to GAAP net income of $0.03 million in Q4 2022.

第四季歸屬於普通股股東的 GAAP 淨虧損為 190 萬美元，即每股 0.08 美元，而 2022 年第四季的 GAAP 淨利潤為 30 萬美元。

Fiscal year 2023 GAAP net loss was $6.8 million, or $0.29 per share, compared to GAAP net loss of $1.6 million in fiscal year 2022, or $0.07 per share.

2023 財年 GAAP 淨虧損為 680 萬美元，即每股 0.29 美元，而 2022 財年 GAAP 淨虧損為 160 萬美元，即每股 0.07 美元。

Non-GAAP adjusted EBITDA for Q4 2023 was $0.9 million compared to $1.7 million in the prior-year period.

2023 年第四季非 GAAP 調整後 EBITDA 為 90 萬美元，去年同期為 170 萬美元。

For fiscal year 2023, non-GAAP adjusted EBITDA was $2.8 million compared to $5.4 million in fiscal year 2022.

2023 財年，非 GAAP 調整後 EBITDA 為 280 萬美元，而 2022 財年為 540 萬美元。

This change in non-GAAP adjusted EBITDA reflects our continued strategic investments in R&D as evidenced by our new product launches, sales activities, and our expanding Thailand operations.

非 GAAP 調整後 EBITDA 的這項變更反映了我們對研發的持續策略投資，我們的新產品發布、銷售活動和不斷擴大的泰國業務證明了這一點。

In the appendix of today's presentation, we have provided a full reconciliation of GAAP to non-GAAP financial information, which is also included in our earnings release.

在今天簡報的附錄中，我們提供了 GAAP 與非 GAAP 財務資訊的全面調節，這些資訊也包含在我們的收益發布中。

Our next slide further analyzes trends by segment, beginning with Identity.

我們的下一張投影片從身分開始，進一步按細分市場分析趨勢。

In Q4 2023, revenue from our Identity products totaled $17.5 million, or 60% of the company's net revenue, compared to $18.3 million, or 57% of net revenue in Q3 2023 and $16.8 million, or 58% of net revenue in Q4 2022.

2023 年第四季度，我們的身分識別產品收入總計1,750 萬美元，占公司淨收入的60%，而2023 年第三季為1,830 萬美元，佔淨收入的57%，2022 年第四季為1,680 萬美元，佔淨收入的58%。

For fiscal year 2023, identity revenue was $68.1 million versus $57.4 million in fiscal 2022.

2023 財年，身分收入為 6,810 萬美元，而 2022 財年為 5,740 萬美元。

The year-over-year increase was primarily driven by our RF-enabled IoT products, which more than offset the decline in our legacy access cards.

年比成長主要是由我們的射頻物聯網產品推動的，這遠遠抵消了我們傳統門禁卡的下降。

Identity segment GAAP and non-GAAP adjusted gross margins for Q4 2023 are 22% and 24%, respectively, flat compared to Q4 2022.

2023 年第四季識別業務的 GAAP 和非 GAAP 調整後毛利率分別為 22% 和 24%，與 2022 年第四季持平。

For the full year, Identity segment GAAP and non-GAAP adjusted gross margins were 22% and 24%, respectively, also flat compared to fiscal year 2022.

全年，身分識別部門的 GAAP 和非 GAAP 調整後毛利率分別為 22% 和 24%，與 2022 財年相比也持平。

While quarter-to-quarter margins can fluctuate, we expect long-term margins to trend upwards from current levels as we expand and deepen our existing customer and technology partnerships and increase production at our Thailand facility, which has lower manufacturing costs than our Singapore operations.

雖然季度利潤率可能會波動，但隨著我們擴大和深化現有的客戶和技術合作夥伴關係以及增加泰國工廠的產量（該工廠的製造成本低於我們的新加坡工廠），我們預計長期利潤率將在當前水準上呈上升趨勢。

We believe our focus on high-value specialty IoT solutions and strategic relationships with industry partners and suppliers could further strengthen our margin profile.

我們相信，我們對高價值專業物聯網解決方案的關注以及與產業合作夥伴和供應商的策略關係可以進一步增強我們的利潤狀況。

We remain committed to a long-term gross margin target of 35% to 40% in our Identity business.

我們仍致力於將身份業務的長期毛利率目標定為 35% 至 40%。

Now turning to the Premises segment.

現在轉向場所部分。

In Q4 2023, revenue from our Premises products and services accounted for $11.5 million, or 40% of the company's net revenue, compared to $13.6 million, or 43% of net revenue in Q3 2023, and $12.2 million, or 42% of net revenue in Q4 2022.

2023 年第四季度，我們的場所產品和服務的收入占公司淨收入的1,150 萬美元，占公司淨收入的40%，而2023 年第三季為1,360 萬美元，佔淨收入的43%，佔公司淨收入的1,220 萬美元，佔淨收入的42% 2022 年第四季。

The sequential decrease in Premises revenue was in line with our normal seasonality as Q3 coincides with the government's fiscal year end.

由於第三季恰逢政府財政年度結束，營業場所收入的環比下降符合我們的正常季節性。

For fiscal 2023, Premises revenue was $48.3 million versus $45.5 million in fiscal 2022.

2023 財年，場地收入為 4,830 萬美元，而 2022 財年為 4,550 萬美元。

The year-over-year increase was primarily driven by our physical access control systems, offset in part by decreases in video products.

年比成長主要是由我們的實體存取控制系統推動的，但部分被視訊產品的減少所抵消。

We continue to execute go-to-market strategy by offering a comprehensive end-to-end security platform solution.

我們透過提供全面的端到端安全平台解決方案繼續執行市場策略。

Premises segment GAAP gross margin for Q4 2023 was 55%, a decrease of 1% compared to Q4 2022, primarily due to product mix.

2023 年第四季房地部門的 GAAP 毛利率為 55%，比 2022 年第四季下降 1%，主要是由於產品組合。

Premises segment non-GAAP adjusted gross margin for Q4 2023 was 57%, flat compared to Q4 2022.

2023 年第四季非公認會計原則調整後的房地部門毛利率為 57%，與 2022 年第四季持平。

For full year, Premises GAAP and non-GAAP adjusted gross margins were 57% and 58%, respectively, flat compared to fiscal year 2022.

全年，Premises GAAP 和非 GAAP 調整後毛利率分別為 57% 和 58%，與 2022 財年持平。

We remain committed to a long-term gross margin target of 55% to 60% in our Premises business.

我們仍致力於將物業業務的長期毛利率目標定為 55% 至 60%。

Now, moving to our operating expense management.

現在，轉向我們的營運費用管理。

Our non-GAAP operating expenses in the fourth quarter of 2023, adjusted to exclude restructuring, strategic review, and severance costs and certain non-cash charges consisting of stock-based compensation and depreciation and amortization, was 34% of revenue compared to 32% in Q4 2022 and 32% in Q3 2023.

我們2023 年第四季的非GAAP 營運費用（調整後不包括重組、策略審查和遣散費以及包括股票薪酬和折舊與攤銷在內的某些非現金費用）佔收入的34%，而這一比例為32% 2022 年第四季為 32%，2023 年第三季為 32%。

Non-GAAP operating expenses for fiscal year 2023 was 35% of revenue compared to 33% in fiscal year 2022.

2023 財年的非 GAAP 營運費用佔收入的 35%，而 2022 財年為 33%。

Now turning to the balance sheet.

現在轉向資產負債表。

We exited Q4 2023, $24.4 million in cash, cash equivalents, and restricted cash, an increase of $3.5 million from Q3 2023.

我們在 2023 年第四季退出了 2,440 萬美元的現金、現金等價物和限制性現金，比 2023 年第三季增加了 350 萬美元。

In Q4, the increase in cash was a result of $4.8 million in cash from operating activities, while we used $1.1 million investing activities primarily related to capital expenditures and $0.4 million from financing activities.

第四季度，現金增加是由於營運活動產生了 480 萬美元現金，而我們使用了主要與資本支出相關的 110 萬美元投資活動和來自融資活動的 40 萬美元現金。

Our working capital exiting Q4 was $48.7 million, a decrease of $1.1 million from Q3 2023.

我們第四季退出的營運資金為 4,870 萬美元，比 2023 年第三季減少了 110 萬美元。

The inventory decreased $0.7 million in Q4 as we continue to work through our inventory balances.

隨著我們繼續處理庫存餘額，第四季庫存減少了 70 萬美元。

As a result, we expect to continue rebalancing our working capital and anticipate repaying our revolver balance in 2024.

因此，我們預計將繼續重新平衡我們的營運資金，並預計在 2024 年償還我們的循環餘額。

In our 10-K filing, we will be providing a full reconciliation of the year-to-date cash flows.

在我們的 10-K 備案中，我們將提供年初至今現金流量的完整調節表。

For completeness, we have included the full balance sheet in the appendix of today's earnings release.

為了完整起見，我們在今天的收益報告的附錄中包含了完整的資產負債表。

As Steve mentioned, with the anticipated technology transition from one of our key RFID customers leads us to an expected Q1 revenue range of $22 million to $24 million.

正如 Steve 所提到的，隨著我們的一個主要 RFID 客戶的預期技術轉型，我們預計第一季的營收將達到 2,200 萬美元至 2,400 萬美元。

This concludes the financial discussion.

財務討論到此結束。

I'll now pass the call back to Steve.

我現在將把電話轉回給史蒂夫。

Thanks, Justin.

謝謝，賈斯汀。

Across 2024, we expect use cases in SCRI to continue to grow and expand to new customers.

到 2024 年，我們預計 SCRI 的用例將繼續成長並擴展到新客戶。

In Premises, we're positioned with the strongest refreshed product lineup to support growing 2024 revenues of our end-to-end platform, with continuing margin strength and expanded recurring revenue in software and services.

在 Premises 方面，我們擁有最強大的更新產品陣容，以支援我們端到端平台 2024 年不斷增長的收入，並保持持續的利潤優勢和軟體和服務方面不斷擴大的經常性收入。

As we develop our competitive value in both of our growth businesses, we'll keep both our balance sheet and working capital strong.

隨著我們在這兩項成長型業務中發展競爭價值，我們將維持強勁的資產負債表和營運資本。

Let me start by addressing the Identity business, particularly focusing on the RFID segment.

讓我先談談身分識別業務，特別是 RFID 領域。

In RFID applications for IoT, we build value three ways.

在物聯網的 RFID 應用中，我們透過三種方式創造價值。

First, by supporting pilots for technically complex SCRI applications, particularly in the healthcare and consumer engagement verticals.

首先，支援技術複雜的 SCRI 應用試點，特別是在醫療保健和消費者參與垂直領域。

Healthcare and medical devices are the most strategically important market for RFID IoT solutions.

醫療保健和醫療設備是 RFID 物聯網解決方案最具戰略意義的市場。

Our focus is on delivering solutions that meet the challenging technical requirements of our SCRI customers, which positions us to lead entirely new categories.

我們的重點是提供滿足 SCRI 客戶具有挑戰性的技術要求的解決方案，這使我們能夠引領全新的類別。

Now healthcare projects move slowly.

現在醫療保健項目進展緩慢。

There's progress quarter over quarter, but large-scale ramps are hard to forecast.

每個季度都在取得進展，但大規模的成長很難預測。

The NRE and pilot pipeline is healthy, and we've been devoting more resources to the best near-term production rollout revenue-generating opportunities.

NRE 和試點管道狀況良好，我們一直在投入更多資源來尋找近期最佳的生產推廣創收機會。

Now this is a key category for increased investment.

現在這是增加投資的關鍵類別。

We're balancing relatively near-term use cases like auto injectors with the long-term transformational market for medication compliance.

我們正在平衡自動注射器等相對近期的用例與藥物合規性的長期轉型市場。

Now this compliance category is possibly the healthcare industry's biggest opportunity to generate economic benefits.

現在，這個合規類別可能是醫療保健產業產生經濟效益的最大機會。

As an indication of the scale of the opportunity, nearly a quarter of all first-time prescriptions aren't filled, and of these, almost half aren't taken according to their administration protocol.

作為機會規模的指標，所有首次處方中近四分之一都沒有配藥，其中近一半沒有按照其給藥方案服用。

We believe RFID provides a unique platform to address this multi-hundred-billion-dollar issue for the healthcare industry.

我們相信 RFID 提供了一個獨特的平台來解決醫療保健產業這一價值數千億美元的問題。

We'll focus more on this when we complete our strategic activities since this will take time, focus, and capital to realize the full potential of the opportunity.

當我們完成我們的策略活動時，我們將更加關注這一點，因為這需要時間、重點和資本來實現這個機會的全部潛力。

But the scale of the opportunity and our unique positioning to address it makes it well worth the time and effort.

但機會的規模和我們解決這個問題的獨特定位使得我們花時間和精力是值得的。

We also continue to support five different auto-injector projects across four different companies, with various ASPs ranging to over $1 depending on the complexity of the solution.

我們還繼續支援四家不同公司的五個不同的自動注射器項目，根據解決方案的複雜性，各種 ASP 不等，超過 1 美元。

In one case, the second phase of application testing for a project that received FDA approval is underway.

在一個案例中，獲得 FDA 批准的專案的第二階段應用測試正在進行中。

In another, our largest auto-injector customer has deployed about 10,000 auto-injectors in a controlled pilot with select physicians and patients evaluating usability and effectiveness.

在另一項研究中，我們最大的自動注射器客戶在受控試點中部署了約 10,000 個自動注射器，並由精選的醫生和患者評估可用性和有效性。

This remains an exceptional category of opportunity that's continuing to progress.

這仍然是一個特殊的機會類別，並且正在不斷取得進展。

We'll keep sharing milestones since medical device timelines can be long.

由於醫療設備的時間表可能很長，我們將繼續分享里程碑。

Anyone who's following the exploding use cases for auto-injectors is aware of the extremely large volumes that pharmaceutical companies are projecting in what's becoming one of the largest and fastest growing categories in medication administration.

任何關注自動注射器爆炸式使用案例的人都知道，製藥公司在這一日益成為藥物管理中最大、增長最快的類別之一中預計的數量非常大。

In consumer engagement, we're seeing expanding use cases, including the unique smart home electronics application, which doubled sales quarter over quarter.

在消費者參與方面，我們看到用例不斷擴大，包括獨特的智慧家庭電子應用程序，該應用程式的銷售額環比增長了一倍。

We're continuing to see high-end garment use cases, including our Life of Garment applications, the Mazars application for retail users, and many others.

我們不斷看到高端服裝用例，包括我們的 Life of Garment 應用程式、面向零售用戶的 Mazars 應用程式等等。

The second way we build value in IoT is by solidifying our reputation as a specialty applications provider and reinforcing our industry leadership as evidenced by our joint marketing and product initiatives.

我們在物聯網領域創造價值的第二種方式是鞏固我們作為專業應用提供者的聲譽，並加強我們的行業領導地位，這一點可以從我們的聯合行銷和產品計劃中得到證明。

These include partners like NXP, collectID, Wiliot, Mazars and Energous, and deep engagement with institutions, including the Axia Institute at Michigan State and the NFC Forum, which are active in setting the standards for advanced RFID applications.

其中包括 NXP、collectID、Wiliot、Mazars 和 Energous 等合作夥伴，以及與密西根州立大學 Axia 研究所和 NFC 論壇等機構的深入合作，這些機構積極致力於制定先進 RFID 應用的標準。

This is a particularly active growth driver with pervasive use cases emerging, such as the digital product passport, which was introduced by the European Commission within the circular economy action plan.

這是一個特別活躍的成長動力，出現了普遍的用例，例如歐盟委員會在循環經濟行動計畫中引入的數位產品護照。

And third, by expanding our lower cost, high quality, and technically advanced production in Thailand.

第三，擴大我們在泰國的低成本、高品質和技術先進的生產。

Our initial CapEx in Thailand is essentially complete.

我們在泰國的初始資本支出已基本完成。

We expect the advantages of producing IoT devices in Thailand, lower production costs for rent and labor, shorter supply chains, and access to highly skilled technical and production people.

我們期望在泰國生產物聯網設備具有以下優勢：較低的租金和勞動力生產成本、較短的供應鏈以及獲得高技能技術和生產人員的機會。

So these are our value creation drivers in IoT for 2024.

這些都是我們 2024 年物聯網價值創造的驅動力。

Our business issue -- one business issue from prior years that we don't expect to be a factor in 2024 is supply chain.

我們的業務問題－供應鏈是前幾年的一個業務問題，我們預計不會成為 2024 年的因素。

Now let me address the address our Premises business.

現在讓我談談我們的辦公室業務地址。

In physical security, we accomplished our industry leadership goals in four ways.

在實體安全方面，我們透過四種方式實現了行業領先目標。

First, by offering a tightly integrated end-to-end physical security solution, including our recently announced ScrambleFactor, as well as our Vision AI, and Velocity plus Velocity Vision, single pane of glass security management platform.

首先，透過提供緊密整合的端對端實體安全解決方案，包括我們最近發布的 ScrambleFactor、Vision AI 以及 Velocity 和 Velocity Vision（單一管理平台安全管理平台）。

Here, the value proposition of our tightly integrated end-to-end system is clearly resonated with commercial customers.

在這裡，我們緊密整合的端到端系統的價值主張顯然引起了商業客戶的共鳴。

End users appreciate our complete solution, and integrators are an even more effective leverage point.

最終用戶欣賞我們完整的解決方案，而整合商是一個更有效的槓桿點。

It's more profitable for integrators to implement systems from fewer partners. reduces their training costs, consolidates purchase order complexity, allows for faster, more efficient installations, and makes ongoing system maintenance easier and more profitable.

對於整合商來說，實施來自較少合作夥伴的系統會更有利可圖。降低培訓成本，整合採購訂單複雜性，實現更快、更有效率的安裝，並使持續的系統維護更容易、更有利可圖。

And this is one strategic category where Identity and Premises segments overlap.

這是一個認同和場所部分重疊的策略類別。

The physical security industry is embracing the convergence of identity management for logical as well as physical security.

實體安全產業正在擁抱邏輯和實體安全身分管理的融合。

A Gartner study in 2022 found that 41% of enterprises plan to converge parts of their cyber and physical security operations by 2025, up from 10% in 2020.

Gartner 2022 年的一項研究發現，41% 的企業計劃在 2025 年融合部分網路和實體安全運營，高於 2020 年的 10%。

Our identity readers provide logical access as well as being used as enrollment and issuance systems to provision access control identities.

我們的身分讀取器提供邏輯訪問，並用作註冊和頒發系統來提供存取控制身分。

And we have deep technical routes and secure authentication as well as a wide market presence.

我們擁有深厚的技術路線和安全認證以及廣泛的市場佔有率。

Our leadership in this market was demonstrated again earlier this year, with a $2 million order in January for identity readers to deploy company-wide across one of the world's largest online retailers.

今年早些時候，我們再次證明了我們在這個市場的領導地位，一月份我們獲得了價值 200 萬美元的訂單，用於在全球最大的在線零售商之一的全公司範圍內部署身份識別器。

Now our second security leadership driver is by growing our leading federal position in physical security solutions, including on-premises and cloud-based services.

現在，我們的第二個安全領先驅動力是提高我們在實體安全解決方案（包括本地和基於雲端的服務）方面的領先聯邦地位。

Across our federal customers, we've focused on expanding the agencies we sell into as well as maximizing share of wallet.

在我們的聯邦客戶中，我們專注於擴大我們銷售的機構以及最大化錢包份額。

Both of these initiatives are reflected by our continued growth in federal, up 9% in 2023.

這兩項措施都體現在我們聯邦預算的持續成長中，預計到 2023 年將成長 9%。

We expect federal to continue to be a growth driver in 2024.

我們預計聯邦將在 2024 年繼續成為成長動力。

Our third industry leadership driver is bringing high security to the SMB market, leveraging enterprise-scale high security through our new Primis Cloud EG-2 controller and encryption bridge platform.

我們的第三個產業領先驅動力是為中小企業市場帶來高安全性，透過我們新的 Primis Cloud EG-2 控制器和加密橋平台利用企業級高安全性。

This solution can also we used for customers with many locations as a cost-effective option for uniform access control across distributed organizations.

我們還可以將該解決方案用於擁有多個地點的客戶，作為跨分散式組織進行統一存取控制的經濟高效的選項。

Already in 2024, we're seeing demand for EG-2s ahead of our initial projections.

到 2024 年，我們看到 EG-2 的需求超出了我們最初的預測。

Fourth, expanding our enterprise software services and recurring revenues by driving sales of Cirrus cloud across our existing enterprise installed base as well as new customers.

第四，透過推動 Cirrus 雲端在我們現有企業安裝基礎以及新客戶中的銷售，擴大我們的企業軟體服務和經常性收入。

Software and recurring revenues exited 2023 well over 20% of our Premises revenues, and we expect this trend to continue in 2024.

2023 年，軟體和經常性收入占我們場所收入的 20% 以上，我們預計這一趨勢將在 2024 年持續下去。

Driving recurring revenues is one of our most important initiatives for 2024.

推動經常性收入是我們 2024 年最重要的措施之一。

In addition to our Cirrus enterprise cloud platform, with Primis Cloud, we're piloting pricing model.

除了我們的 Cirrus 企業雲端平台之外，我們也透過 Primis Cloud 試行定價模式。

So we believe we'll accelerate ease of adoption for the channel enhancing recurring revenue growth.

因此，我們相信我們將加快該管道的採用，從而提高經常性收入的成長。

To continue to drive this growth, we're committed to keeping a strong balance sheet with healthy working capital to fund our strategic growth initiatives.

為了繼續推動這一成長，我們致力於維持強勁的資產負債表和健康的營運資本，為我們的策略成長計畫提供資金。

We continue to tightly manage our expenses reflected in the sequential reduction in expenses, but still prioritizing investments in key growth initiatives.

我們繼續嚴格管理開支，這體現在開支的連續減少上，但仍優先考慮對關鍵成長計畫的投資。

So as you can hear from our comments, we're very positive about the value creation and industry leadership progress we think we're making in both of our businesses.

因此，正如您從我們的評論中聽到的那樣，我們對我們在兩項業務中所取得的價值創造和行業領導地位進步非常積極。

From a business planning perspective, we expanded our next-generation products, technologies, and production capacity.

從業務規劃的角度來看，我們擴大了下一代產品、技術和產能。

Both of our businesses and markets are well positioned for strong 2024, following our investments in 2023.

繼 2023 年的投資之後，我們的業務和市場都已做好準備，迎接 2024 年的強勁發展。

Our product launches, Thailand production, and other investments consumed capital and pressured our operating results, but they've positioned us well for 2024 and going forward.

我們的產品發布、泰國生產和其他投資消耗了資金，並對我們的經營業績造成壓力，但它們為我們在 2024 年及未來做好了準備。

For Q1, we're anticipating revenues in $22 million to $24 million range, with continued strong contribution from our Premises security and Identity reader businesses.

在我們的場所安全和身分讀取器業務的持續強勁貢獻下，我們預計第一季的營收將在 2,200 萬美元至 2,400 萬美元之間。

We expect our strategic efforts may have some effect on near-term business as we focus on taking the right strategic steps to support long-term value creation.

我們預期我們的策略努力可能會對短期業務產生一些影響，因為我們專注於採取正確的策略步驟來支持長期價值創造。

The next major step for our business course is the culmination of our strategic process.

我們商業課程的下一個重要步驟是我們策略流程的巔峰。

Our commitment is to maximize shareholder value by substantially investing in our growth opportunities and our strategic verticals and strengthening our leadership teams to execute our strategic plans.

我們的承諾是透過大力投資我們的成長機會和策略垂直領域並加強我們的領導團隊來執行我們的策略計劃，從而最大限度地提高股東價值。

As I mentioned earlier, in the near term, we expect to take strategic step in these areas consistent with the plan we communicated at the end of last year.

正如我之前提到的，短期內，我們預計將在這些領域採取與去年年底傳達的計劃一致的戰略步驟。

So with that, I'll now ask the operator to open the lines for questions.

因此，我現在將要求接線員打開提問線路。

Operator?

操作員？

(Operator Instructions) Craig Ellis, B. Riley.

（操作員說明）Craig Ellis、B. Riley。

Thanks for taking the questions and all the information, guys.

謝謝你們提出問題並提供所有資訊。

Steve, I wanted to follow-up on a couple of things and just clarify the revenue items.

史蒂夫，我想跟進一些事情並澄清收入項目。

So one, it sounds like given what's happening with Wiliot strong production in the fourth quarter, but a period of digestion upcoming, so that would impact the Identity business sequentially in 1Q.

因此，聽起來考慮到 Wiliot 第四季的強勁生產情況，但即將到來的消化期，因此這將依次影響第一季的身份業務。

And then you mentioned as you closed out your prepared comments that there might be some near-term impacts on the business from strategic efforts.

然後，您在結束準備好的評論時提到，策略努力可能會對業務產生一些短期影響。

And I'm wondering if there was any additional allowance factored into headline revenue guidance or anything you'd expect in either segment that we should look to in the first quarter, potentially second quarter on that matter?

我想知道是否有任何額外的津貼被納入總體收入指導中，或者您期望我們在第一季（可能是第二季）的任何一個細分市場中考慮的任何內容？

Yes.

是的。

Thanks for the question, Craig.

謝謝你的提問，克雷格。

I think those cover it in terms of the headwinds and there are a number of tailwinds in all these areas.

我認為這些因素涵蓋了不利因素，並且在所有這些領域都有許多有利因素。

But we want to be very careful that we're setting ourselves up to meet what we put out there.

但我們要非常小心，確保我們能夠滿足我們所發布的內容。

And so I think that's exactly the way to characterize that.

所以我認為這正是描述這一點的方式。

There's a couple of things that we're offsetting, but we also are seeing good momentum.

我們正在抵消一些事情，但我們也看到了良好的動力。

And we talked about the consumer electronic company that's going, some of the other healthcare areas are growing nicely, and physical security with all the product launches are going well.

我們談到了正在發展的消費電子公司，其他一些醫療保健領域發展良好，所有產品發布的實體安全也進展順利。

And I also mentioned the Identity reader order that we had in the first quarter, which was pretty substantial.

我還提到了我們在第一季收到的 Identity reader 訂單，數量相當可觀。

So it's got pros and cons pushing it, but we wanted to be sure to get the cons out there as well, and you identified the ones that we wanted to highlight.

因此，它有優點和缺點，但我們希望確保也能找出缺點，並且您確定了我們想要強調的缺點。

Got it.

知道了。

And just on the revenue point, Steve.

就收入點而言，史蒂夫。

We have a very challenging macro that lingers at least from the mosaic we put together.

我們有一個非常具有挑戰性的宏，至少在我們拼湊起來的馬賽克中仍然存在。

How are you feeling about the business's forecast stability on the top line now?

您現在對公司營收的預測穩定性有何看法？

Is it starting to lock in?

是不是開始鎖定了？

Is it still a little bit difficult just given the cross currents from the macro?

光是考慮到宏觀的橫流，是不是還是有點困難？

Can you give us a sense for how you're feeling about the visibility that you have and the ability to forecast each segment of business overall in the top line?

您能否告訴我們您對您所擁有的可見度以及預測每個業務部門整體營收的能力有何感受？

Yes, thanks for that also.

是的，也謝謝你。

We're feeling good about the visibility, that's why we wanted to be granular about what the forces are to the positive and that are creating things that we have to overcome.

我們對可見性感覺良好，這就是為什麼我們想要詳細了解積極的力量以及正在創造我們必須克服的事情的原因。

We don't think there are many -- in the old phrase of unknown unknowns.

我們認為數量不多——用一句古老的說法來說就是「未知的未知」。

We think we've got line of sight to the factors that are driving our opportunities.

我們認為我們已經了解了推動我們機會的因素。

So we think we've got pretty good predictability, actually quite good predictability.

所以我們認為我們有很好的可預測性，實際上是很好的可預測性。

Got it.

知道了。

On that note, I'll flip it over to Justin.

關於這一點，我會將其轉給賈斯汀。

Justin, on gross margins, can you give us some help with the gives and takes just beyond volume for the first quarter from the level that we hit in the fourth quarter, I think, at least versus my model, gross margins for lighter mostly due to a significant mix shift towards Identity from Premises.

賈斯汀，關於毛利率，您能給我們一些幫助嗎？身份的重大混合轉變。

But what are the gives and takes with first quarter's gross margin, please?

但第一季毛利率的優缺點是什麼呢？

Yeah, we do see a bounce back.

是的，我們確實看到了反彈。

It's primarily going to be mix in Q1 when we do anticipate a bounce back to Premises on that side.

當我們確實預計這一方面會反彈時，第一季的情況將主要是混合的。

So we'll see a slight bump in margins for Q1 off of closing out what we did in Q4.

因此，我們將看到第一季的利潤率在第四季度的基礎上略有上升。

We're trying not to go too granular, but yeah, we should see a rebalancing in that in Q1.

我們試著不要太過細化，但是，是的，我們應該在第一季看到重新平衡。

Okay.

好的。

And then lastly, you had talked last year about improving cash generation with better working capital management.

最後，您去年曾談到透過更好的營運資本管理來改善現金產生。

It does seem like that came through strongly in the fourth quarter.

看起來第四季確實表現強勁。

The question is how much of that is still ahead of you?

問題是你還剩下多少？

And what can we expect with cash from operations over the next couple of quarters?

我們對未來幾季的營運現金有何期望？

And for debt pay down, what linearity should we expect through the years?

對於債務償還，多年來我們應該期望什麼線性？

Is it going be first-half weighted, ratable, more back-half weighted?

是前半部加權、可評等還是後半部加權？

Thank you.

謝謝。

Yeah, I think it will be more back-half weighted.

是的，我認為它會更偏重於後半部。

I think as you saw in our Q4 press release, we had some pretty significant costs related to that strategic transaction.

我認為正如您在第四季度新聞稿中看到的那樣，我們有一些與該策略交易相關的相當大的成本。

And those will be cash that's going out the door, and that's going to continue into 2024 as well.

這些現金將會流出，而且這種情況也將持續到 2024 年。

So we did from my prior guides that we do have some pressure on cash with the strategic review and other items that we're working on.

因此，根據我先前的指南，我們確實在策略審查和我們正在處理的其他項目方面面臨一些現金壓力。

So it will be a little bit more back-half weighted than we had originally anticipated.

因此，後半部的權重會比我們最初預期的要多。

All right, guys.

好吧，夥計們。

Thank you.

謝謝。

I'll hop back in the queue.

我會跳回到隊列中。

Thank you.

謝謝。

Thanks, Craig.

謝謝，克雷格。

Anthony Stoss, Craig Hallum.

安東尼·斯托斯，克雷格·哈勒姆。

Thanks, guys.

多謝你們。

Steven, you're blow by the Wiliot explanation pretty fast in your prepared remarks.

史蒂文，你在準備好的發言中很快就被威利奧特的解釋震驚了。

Is it purely an inventory digestion?

純粹是為了消化庫存嗎？

Or did I hear you say they're moving to next-generation technology?

或者我聽說你說他們正在轉向下一代技術？

And also the guide lower in revs, how much of that was related to Wiliot?

而且指南的轉速也較低，其中有多少與 Wiliot 有關？

So it is a technology transition even more so than inventory topics.

因此，這比庫存主題更重要的是技術轉型。

Again, I'll let -- they need to address that, but we wanted to address that as well.

我再說一次——他們需要解決這個問題，但我們也想解決這個問題。

And that's the major factor there.

這是主要因素。

What was the second part of your question, Tony?

東尼，你問題的第二部分是什麼？

How much of the reduction or the down in sequential revenues can you attribute to Wiliot?

連續收入的減少或下降有多少可以歸因於 Wiliot？

Is it half the reduction for Q1 or ballpark?

是第一季減少的一半還是大約？

It's of that order.

就是這個順序。

They were a couple-million-dollar-a-quarter customer.

他們是一個每季消費數百萬美元的客戶。

So that's material, and we're -- and we expect to offset chunk of it, but we want to be careful about how much, how fast.

所以這是重要的，我們希望抵銷其中的大部分，但我們要小心多少、多快。

Got it.

知道了。

And then just bigger picture, you guys, you're surprised yourselves in a lot of healthcare-related design wins, a lot of healthcare revenue, which typically isn't cyclical.

然後，從更大的角度來看，你們對許多與醫療保健相關的設計勝利、大量醫療保健收入感到驚訝，這通常不是週期性的。

Are you now seeing more cyclical nature even from your healthcare customers?

您現在是否從您的醫療保健客戶那裡看到了更多的週期性？

Good question.

好問題。

The answer is no.

答案是不行。

There is some seasonality to different healthcare use cases that we find when there's different -- for example, we do some -- a lot of surgical instruments and ICU devices.

當有不同的（例如，我們做一些）大量手術器械和 ICU 設備時，我們發現不同的醫療保健用例存在一些季節性。

And there is some seasonality to how busy those categories are.

這些類別的繁忙程度存在一定的季節性。

But it's not like federal government where you know you have big bump in the third quarter and the cyclicality you see there.

但這不像聯邦政府，你知道第三季有很大的成長以及你在那裡看到的周期性。

So it's more product specific than it is macro seasonality in healthcare that we're seeing.

因此，它更多的是產品特定性，而不是我們所看到的醫療保健領域的宏觀季節性。

Because as you say, aggregate for healthcare is not a cyclical business.

因為正如你所說，醫療保健總量不是週期性業務。

Got it.

知道了。

And then lastly for me, Justin, just when you look at kind of the starting point for Q1 and the nature of just Wiliot going to pause for two to four quarters, help us understand, to me it looks like 2024 revs are probably going to be low-2023 revs.

最後對我來說，賈斯汀，當你看看第一季的起點以及 Wiliot 將暫停兩到四個季度的性質時，請幫助我們理解，對我來說，2024 年的轉速可能會低至2023 轉。

We typically tried not to give full-year guidance.

我們通常嘗試不提供全年指導。

We're getting away from that.

我們正在遠離這個。

We're going quarterly at this point, but we don't think it'll be less than 2023.

目前我們將按季度進行一次，但我們認為不會低於 2023 年。

No.

不。

Okay.

好的。

Appreciate it.

欣賞它。

Yeah, thanks.

是的，謝謝。

Jaeson Schmidt, Lake Street.

傑森‧施密特，湖街。

Hey, guys.

大家好。

Thanks for taking my questions.

感謝您回答我的問題。

Understanding the dynamics with Wiliot, I think last call, you mentioned seeing some order push outs across the board.

了解 Wiliot 的動態，我想上次通話時，您提到看到一些訂單全面推出。

Just curious if you're still seeing that occur?

只是好奇您是否仍然看到這種情況發生？

In terms of related to Wiliot per se or other category?

與 Wiliot 本身或其他類別有關嗎？

Just want to be sure I'm answering the right thing.

只是想確保我回答的是正確的事。

Yeah, just within the RFID business.

是的，就在 RFID 業務範圍內。

No, we're not seeing push outs in RFID in terms of delays or people having oversupply or something.

不，我們沒有看到 RFID 因延遲或供應過剩等原因而被淘汰。

It's much more project specific like I was mentioning, whether it's the healthcare products and their project cycles or with the BLE applications or any others.

正如我所提到的，它更加針對特定項目，無論是醫療保健產品及其項目週期，還是 BLE 應用程式或任何其他應用程式。

It's very much project specific.

這是非常特定於項目的。

Got it.

知道了。

And then just as a follow-up, Justin, how should we think about OpEx trending throughout this year?

Justin，作為後續行動，我們該如何看待今年的營運支出趨勢？

I think what we're looking at -- are you talking about non-GAAP or GAAP or both?

我想我們正在關注的是——你是在談論非公認會計準則還是公認會計準則，還是兩者兼而有之？

Non-GAAP.

非公認會計準則。

Yeah.

是的。

Directionally, it'll go up a few percent.

從方向上看，它會上漲幾個百分點。

Basically, we have a merit increase here in April, that will be throughout the organization, that will be upping it a little bit, but not a significant uptick, but slightly up from 2023.

基本上，我們在 4 月會在整個組織範圍內進行績效加薪，這會稍微提高一點，但不會顯著增加，但比 2023 年略有增加。

Okay, that's helpful.

好的，這很有幫助。

Thanks a lot, guys.

非常感謝，夥計們。

Michael Picariello, Imperial Capital.

麥可·皮卡里洛，帝國首都。

Hi, guys.

嗨，大家好。

Thanks for taking my question and I appreciate you taking the time to chat.

感謝您提出我的問題，也感謝您抽空聊天。

One statistic stood out to me in the presentation.

演示中的一項統計數據對我來說很突出。

I wanted to get a better sense of how it's changed as the percentage of recurring revenue in Premises.

我想更了解它佔場所經常性收入百分比的變化。

I think you guys said it was above 20% in 2023.

我想你們說過 2023 年會超過 20%。

I'm not sure if you guys have disclosed it before, but just curious what that percentage may have been in the one or two year prior?

我不確定你們之前是否有披露過這一點，但只是好奇這一比例在一兩年前可能是多少？

And how high of a percentage of revenue do you think that could go on a longer-term basis like out years?

您認為從長遠來看，例如未來幾年，這將佔收入的比例是多少？

So I'll take that from a couple of angles, and then Justin, just jump on in if you want.

所以我會從幾個角度來考慮這個問題，然後賈斯汀，如果你願意的話，就加入吧。

That number had been 15% a year ago, and in fact, now we want it to be roughly round, but it’s around 24%.

一年前這個數字是 15%，事實上，現在我們希望它大致是圓形的，但實際上是 24% 左右。

So it's well over 20%.

所以遠超過20%。

And where we expect that to go, we want to drive it in the physical security business to be clear.

我們希望在實體安全業務中推動這一趨勢的發展。

We want to drive that to be the majority of the revenue base there.

我們希望推動其成為那裡大部分的收入基礎。

It's going to take five- to seven-year transition.

這將需要五到七年的過渡。

But when we talk about that Primis cloud and our Cirrus products, those are all driving towards a recurring revenue model, which we want to become the core business model for the business.

但當我們談論 Primis 雲端和我們的 Cirrus 產品時，這些都在推動經常性收入模式的發展，我們希望這種模式成為業務的核心業務模式。

And just have one follow-up on that.

對此進行一次後續行動。

I think you mentioned that it was a shift in contracts that they were changing the terms, I think you had said.

我想你提到過，他們正在改變條款，這是合約的轉變，我想你已經說過了。

Forgive me if I misunderstood.

如果我誤解了，請原諒我。

That most of our market opportunity near term is selling to current customers and transitioning them from an on-prem solution to a cloud solution.

我們近期的大部分市場機會都是向當前客戶銷售並將他們從本地解決方案過渡到雲端解決方案。

That's certainly the case for commercial velocity customers.

對於商業速度客戶來說確實如此。

In federal, we've got our FedRAMP cloud solution.

在聯邦，我們擁有 FedRAMP 雲端解決方案。

And then with Primis, with SMB, there's a predisposition towards cloud, and that's very much a cloud natural product.

然後，Primis 和 SMB 都傾向於雲，這在很大程度上是雲端自然產品。

So it really is across the board.

所以這確實是全面的。

But what I was referring to was Velocity Commercial and Velocity Federal, where the vast majority of current customers are -- perpetual license customers, and they're the lowest hanging fruit for conversion to recurring revenues.

但我指的是 Velocity Commercial 和 Velocity Federal，其中絕大多數現有客戶都是永久授權客戶，他們是轉化為經常性收入的最容易實現的目標。

Got it.

知道了。

That was very helpful.

這非常有幫助。

Thank you.

謝謝。

Sure.

當然。

Thanks, Michael.

謝謝，麥可。

Craig Ellis, B. Riley.

克雷格·艾利斯，B.萊利。

Yeah, thanks for taking the question.

是的，感謝您提出問題。

Steve, it seems like the Thai facility is having a really nice ramp.

史蒂夫，看來泰國工廠有一個非常好的坡道。

And my understanding from past conversations with the team is that that is a location where we were working on Wiliot production.

從過去與團隊的對話中我了解到，那是我們進行 Wiliot 製作的地點。

So one, can you confirm that that's where that production was based?

那麼，你能確認那是製作的基地嗎？

And two, as we think about the Wiliot pads, what does it mean for utilization in that facility as we look out at that facility?

第二，當我們考慮 Wiliot 墊時，當我們觀察該設施時，它對該設施的利用率意味著什麼？

And then just overall for Identity segment gross margins in 2024.

然後是 2024 年身分細分市場的總體毛利率。

So actually, the Wiliot production was in Singapore.

事實上，Wiliot 的製作是在新加坡進行的。

We balanced the technology so we can do it in both locations now, but that's actually a new event there.

我們平衡了技術，因此我們現在可以在兩個地點進行這項工作，但這實際上是那裡的一項新活動。

And you're right to point out the Thai facility.

您指出泰國設施是正確的。

It's been very much a highlight that when we did our -- we've now done our first COGS qualification run because we reset our standard costing on a regular basis.

這是一個非常重要的亮點，當我們進行我們的工作時，我們現在已經完成了第一次 COGS 資格運行，因為我們定期重置我們的標準成本計算。

The cost of operation at Thailand was actually lower than we had originally done when we did our ROI calculation on it.

泰國的營運成本實際上比我們最初計算投資報酬率時的成本要低。

We've also found really a production being an example that we can move higher technology process capabilities faster in the Thailand than we expected.

我們也發現真正的生產就是一個例子，我們可以比我們預期更快地在泰國提升更高的技術製程能力。

So we think we can move there faster and get some gross margin advantage out of it.

因此，我們認為我們可以更快地進入那裡，並從中獲得一些毛利率優勢。

And then your last question, I think, is around overhead absorption on gross margins.

我認為你的最後一個問題是關於毛利率的間接費用吸收。

And that's something we're constantly balancing.

這是我們不斷平衡的事情。

That's one of the things that does keep us taking some of the lower-margin business because it absorbs capacity and therefore liquidates your overheads.

這是讓我們繼續從事一些利潤率較低的業務的原因之一，因為它吸收了產能，從而清算了管理費用。

So we're balancing to keep that, but it's certainly possible that there will be some pressure on margins for ops overhead absorption, offset by moving more of the production to Thailand versus Singapore where we have better gross margins.

因此，我們正在平衡以保持這一點，但營運管理費用吸收的利潤率肯定可能會受到一些壓力，透過將更多生產轉移到泰國而不是毛利率更高的新加坡來抵消。

That's very helpful.

這非常有幫助。

And is it possible to quantify the mix of production you'd like the team to achieve out of Thailand as we look out over the next 12 months and maybe 24 months?

當我們展望未來 12 個月甚至 24 個月時，是否可以量化您希望團隊在泰國以外實現的生產組合？

Are there some milestones that you have, whether it's getting to 30%, 50%, whatever percent of total production given that significant cost advantage that you have there?

鑑於您擁有顯著的成本優勢，您是否有一些里程碑，無論是達到總產量的 30%、50%，還是任何百分比？

Yes.

是的。

So there's two factors in that.

所以這有兩個因素。

You say there's just the scale of production, and then there's the processes.

你說只有生產規模，然後才是流程。

And actually, with the progress we've made, we accelerated moving some of our higher-end processes into Thailand.

事實上，隨著我們取得的進展，我們加速將一些高端流程轉移到泰國。

We took advantage of Chinese New Year when there was some shutdown to move a little bit faster over to Thailand.

我們利用農曆新年期間停工的時間，加快了前往泰國的速度。

I'd love to see more than 50% of our production out of Thailand going out of the year.

我希望看到今年超過 50% 的產量來自泰國。

We, of course, have to balance that quality and production times and run times and what the sales folks bring in and what we can balance.

當然，我們必須平衡品質、生產時間和運行時間以及銷售人員帶來的內容和我們可以平衡的內容。

But I think that would be a good goal to have 50% there.

但我認為達到 50% 是一個很好的目標。

What we have learned is there's really no technology limitation.

我們了解到，實際上沒有技術限制。

The workforce in Thailand is well able to manage the technical capabilities, both at the engineering and the production level, and the costs, of course, are lower.

泰國的勞動力在工程和生產層面都能夠很好地管理技術能力，而且成本當然也較低。

So as you can tell -- and the fact that we leased the additional building right next to our current building means we can expand in a really efficient footprint.

如您所知，我們在當前大樓旁邊租用了額外的大樓，這意味著我們可以以真正高效的方式進行擴張。

If we'd let that building go, the second expansion spot would have been a distance away and you'd have been in a trucking logistic situation instead of clean flow production.

如果我們放棄該建築，第二個擴建點就會距離很遠，並且您將處於卡車運輸物流狀況，而不是清潔流程生產。

So we're -- I think Thailand is going to be a competitive advantage for this foreseeable future.

因此，我認為在可預見的未來，泰國將成為競爭優勢。

Very helpful.

很有幫助。

Thank you, Steve.

謝謝你，史蒂夫。

Thanks, Craig.

謝謝，克雷格。

Okay.

好的。

We have no further questions in queue.

我們沒有其他問題了。

I'd like to turn the floor back to management for any closing remarks.

我想請管理階層發表結束語。

Okay.

好的。

Thanks, operator, and thank you all for joining us today.

謝謝操作員，也謝謝大家今天加入我們。

We really appreciate the continued support of both our team and our shareholders and all of you here listening to us.

我們非常感謝我們的團隊和股東以及在場聆聽我們演講的所有人的持續支持。

Anyone wanting to keep up with our business's progress, please join at Mazars webinar on March 28 that we mentioned.

任何想要跟上我們業務進展的人，請參加我們提到的 3 月 28 日舉行的瑪澤網路研討會。

Also, visit us in early April in Las Vegas.

另外，請於四月初在拉斯維加斯拜訪我們。

Both RFID Journal and ISC West are in the second week in April, both in Las Vegas.

RFID Journal 和 ISC West 都在四月的第二週，都在拉斯維加斯舉行。

So you can visit there in person for both parts of the business.

因此，您可以親自前往那裡了解這兩個部分的業務。

And then we'll also, from an investor perspective, be holding an NDR with Lake Street Capital Markets in April likely.

然後，從投資者的角度來看，我們也可能會在 4 月與 Lake Street Capital Markets 持有 NDR。

And of course, we'll be at the B. Riley Conference in May.

當然，我們將參加五月的 B. Riley 會議。

So again, thank you all for joining us.

再次感謝大家加入我們。

And of course, we look forward to communicating thoroughly as soon as we have a strategic action that can be shared.

當然，一旦我們有了可以分享的策略行動，我們就期待著進行徹底的溝通。

So thanks again and have a good evening.

再次感謝並祝您晚上愉快。

Thank you.

謝謝。

This concludes today's conference, and you may disconnect your lines at this time.

今天的會議到此結束，此時您可以掛斷電話了。

Thank you for your participation.

感謝您的參與。