Kopin Corp (KOPN) 2022 Q4 法說會逐字稿

Good morning, everyone, and welcome to the Kopin Corporation Fourth Quarter and Full Year 2022 Earnings Call. Please note that this event is being recorded. At this time, I'd like to turn the conference call over to Brian Prenoveau, Investor Relations for Kopin. Please go ahead.

大家早上好，歡迎來到 Kopin Corporation 第四季度和 2022 年全年收益電話會議。請注意，此事件正在記錄中。此時，我想將電話會議轉交給 Kopin 投資者關係部的 Brian Prenoveau。請繼續。

Thank you, Paul. Good morning, everyone. Before we get started, I'd like to remind everyone that today's call taking place on Tuesday, March 14, 2023, we will be making forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on the company's current expectations, projections, beliefs and estimates and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those forward-looking statements.

謝謝你，保羅。大家，早安。在我們開始之前，我想提醒大家，今天的電話會議將於 2023 年 3 月 14 日星期二召開，我們將根據 1995 年《私人證券訴訟改革法案》的定義做出前瞻性陳述。這些陳述基於公司目前的預期、預測、信念和估計受到許多風險和不確定性的影響，這些風險和不確定性可能導致實際結果與這些前瞻性陳述存在重大差異。

Potential risks include, but are not limited to, demand for our products, operating results of our subsidiaries, market conditions and other factors discussed in our most recent annual report on Form 10-K and other documents filed with the Securities and Exchange Commission. Although the company believes that the assumptions underlying these statements are reasonable, any of them can be proven inaccurate, and there can be no assurances that the results will be realized.

潛在風險包括但不限於對我們產品的需求、我們子公司的經營業績、市場狀況以及我們最近向美國證券交易委員會提交的 10-K 表格年度報告和其他文件中討論的其他因素。儘管公司認為這些陳述所依據的假設是合理的，但其中任何一個都可能被證明是不准確的，並且無法保證結果一定會實現。

The company undertakes no obligation to update the forward-looking statements made during today's call. In addition, references may be made to certain non-generally accepted accounting principles or non-GAAP measures, for which you should refer to the appropriate disclaimers and reconciliations in the company's SEC filings and press releases.

公司不承擔更新今天電話會議中所作的前瞻性陳述的義務。此外，可能會提及某些非普遍接受的會計原則或非 GAAP 措施，您應參考公司向美國證券交易委員會提交的文件和新聞稿中的適當免責聲明和對賬。

Kopin Corporation's Chief Executive Officer, Michael Murray, will begin today's call with an overview of Kopin's progress within the company's strategy. Following Michael, Kopin's CFO, Richard Sneider, will review the company's fourth quarter and full year returns. I would now like to turn the conference call over to Michael Murray. Michael?

Kopin Corporation 的首席執行官 Michael Murray 將在今天的電話會議開始時概述 Kopin 在公司戰略中的進展。繼 Michael 之後，Kopin 的首席財務官 Richard Sneider 將審查公司的第四季度和全年回報。我現在想將電話會議轉交給 Michael Murray。邁克爾？

Thank you very much, Brian. And to all the folks at MC Group, welcome to the Kopin family. Good morning, everyone. Welcome to our fourth quarter earnings call. I'm in Asia at the moment, so I hope my line is clear. I've been having some technical difficulties from time to time. But since this is only my second earnings call as CEO of Kopin, I wanted to start today's call with a little more background information on what Kopin does and how we plan to do it.

非常感謝你，布萊恩。 MC Group 的所有員工，歡迎來到 Kopin 大家庭。大家，早安。歡迎來到我們的第四季度財報電話會議。我現在在亞洲，所以我希望我的電話暢通無阻。我不時遇到一些技術困難。但由於這只是我作為 Kopin 首席執行官的第二次財報電話會議，我想在今天的電話會議開始時提供更多關於 Kopin 做什麼以及我們計劃如何做的背景信息。

For anyone who was less familiar with Kopin, we are a leading provider of specialized solutions combining advanced microdisplay and optical technologies. We use proprietary technologies to create augmented and virtual reality products for use in defense, commercial and consumer applications. As the field of optics continues to expand, the real-world application of microdisplays continues to broaden, and new industries are discovering ways to use these technologies constantly and consecutively.

對於不太熟悉 Kopin 的人來說，我們是結合先進微顯示器和光學技術的專業解決方案的領先供應商。我們使用專有技術創建用於國防、商業和消費者應用的增強現實和虛擬現實產品。隨著光學領域的不斷擴大，微型顯示器的實際應用不斷拓寬，新的行業也在不斷探索使用這些技術的方法。

Two years ago, the market was estimated to be about $1.6 billion in size. It is expected to grow to over $5 billion by 2027, and a 20% annual growth rate roughly speaking. We believe our company is well positioned to take advantage of this large and quickly growing market. For over 30 years, Kopin scientists and engineers have created innovative technologies that have enhanced the way people see, hear and communicate. Its history and focus on innovation and creativity was one of the biggest selling points for me to join Kopin.

兩年前，該市場的規模估計約為 16 億美元。預計到 2027 年將增長到超過 50 億美元，粗略地說年增長率為 20%。我們相信，我們公司已做好充分準備，可以利用這個龐大且快速增長的市場。 30 多年來，Kopin 科學家和工程師創造了創新技術，改善了人們看、聽和交流的方式。它的歷史以及對創新和創造力的關注是我加入 Kopin 的最大賣點之一。

While the company's restructuring initiatives continues at pace with our renewed focus on quality and operational excellence, preserving that culture of innovation remains paramount to us capturing more of this exciting and growing market. Today, Kopin's revenue largely comes from defense-oriented customers and projects with additional revenue from commercial and consumer product customers.

雖然公司的重組計劃與我們對質量和卓越運營的重新關注保持同步，但保持創新文化對於我們在這個令人興奮和不斷增長的市場中佔據更多份額仍然至關重要。如今，Kopin 的收入主要來自面向國防的客戶和項目，還有來自商業和消費產品客戶的額外收入。

I'll now provide a high-level recap of the quarter and the year before turning the call over to Rich to dive deeper into the financial results. This year, Kopin turned in a solid 2022 despite the supply chain issues and lingering COVID issues we discussed in previous calls. We are cautiously optimistic that we are now positioned to mitigate the supply chain challenges we've been faced throughout the year.

在將電話轉給 Rich 以深入了解財務業績之前，我現在將提供本季度和一年的高級回顧。今年，儘管我們在之前的電話會議中討論過供應鏈問題和揮之不去的 COVID 問題，但 Kopin 在 2022 年取得了穩健的成績。我們謹慎樂觀地認為，我們現在可以減輕我們全年面臨的供應鏈挑戰。

While the supply chain challenges still are prevalent, we're hoping that they'll become part of the past. We continue to see intermittent quality challenges, which we have plans to resolve through product redesign, adjusted inventory levels, new equipment and increased focus on quality and reduced scrap. Revenues for the year were up 3.8% year-over-year, completing the company's fourth consecutive year of growth.

雖然供應鏈挑戰仍然普遍存在，但我們希望它們將成為過去的一部分。我們繼續看到間歇性的質量挑戰，我們計劃通過產品重新設計、調整庫存水平、新設備以及更加註重質量和減少廢品來解決這些挑戰。全年收入同比增長 3.8%，實現公司連續第四年增長。

The bulk of the revenue increase came from the defense sector sales. Sales in defense ended the year up 36% year-over-year, driven by higher shipments within the weapon sight programs of our top customers. The defense revenue increase was offset somewhat by a decrease in demand with our industrial channel due to an over-inventory position with their customer base as we saw reduced orders for spatial light modulators which are used in our 3D AOI machines in industrial wearables.

收入增長的大部分來自國防部門的銷售。受我們頂級客戶武器瞄準器項目出貨量增加的推動，國防銷售額年末同比增長 36%。由於我們的工業可穿戴設備 3D AOI 機器中使用的空間光調製器的訂單減少，我們的客戶群庫存過多，導致我們的工業渠道需求減少，這在一定程度上抵消了國防收入的增長。

As I mentioned in our last call, our focus will be driving yield improvements, achieving on-time and full deliveries while seeking opportunities to reduce costs. I wanted to discuss some of the strategic initiatives we here at Kopin are focused on to improve margins, cash flows, customer experience and ultimately return to our shareholders. Our first focus is increasing our order book for application-specific solutions.

正如我在上次電話會議中提到的那樣，我們的重點將是提高產量，實現準時和全面交付，同時尋求降低成本的機會。我想討論我們在 Kopin 的一些戰略舉措，重點是提高利潤率、現金流、客戶體驗並最終回報我們的股東。我們的首要重點是增加針對特定應用解決方案的訂單。

Now when I speak of application-specific solutions, I refer to integrated products that accomplish a particular task. An example is our international family of weapon sight long-range device, whose full rate production was announced in the third quarter. In this [IWSIOR], we produce the entire weapon sight eye piece, not just the screen/optical components, building an order book of similar high-level value-added products that ultimately result in higher order amounts, increased customer partnership, reorder reliability and better margins.

現在，當我談到特定應用的解決方案時，我指的是完成特定任務的集成產品。一個例子是我們的國際系列武器瞄準器遠程設備，它在第三季度宣布了全速生產。在這個 [IWSIOR] 中，我們生產整個武器瞄準鏡，而不僅僅是屏幕/光學組件，建立類似高附加值產品的訂單簿，最終導致更高的訂單量、增加的客戶合作夥伴關係、重新訂購的可靠性和更好的利潤率。

Next, improving and achieving on-time and full deliveries. Customers should expect their orders to be received on time and in full at 100% quality. In a supply chain constrained environment like the one we operate in, achieving on-time and full delivery is difficult. Towards achieving this goal, we're investing in data-driven analysis and advanced manufacturing equipment to automate and improve our performance to ensure demand is met with supply.

接下來，改進並實現準時和全面交付。客戶應該期望他們的訂單能夠以 100% 的質量準時、完整地收到。在像我們運營的供應鏈受限環境中，實現準時和全面交付是很困難的。為實現這一目標，我們正在投資數據驅動的分析和先進的製造設備，以實現自動化和提高我們的績效，以確保滿足需求和供應。

Freight delays were performing a sensitive root-cause analysis to ensure that the nature of those delays is understood and effectively acted upon immediately. We are pleased to say that we have shipped our AMLCD product to Collins at 100% on-time in full for 2022, a great achievement for the team. And our folks in FDD Scotland have recently achieved the same level with their 3D AOI customer base.

貨運延誤正在執行敏感的根本原因分析，以確保了解這些延誤的性質並立即採取有效行動。我們很高興地說，我們已經在 2022 年 100% 準時地將我們的 AMLCD 產品全部交付給柯林斯，這對團隊來說是一項偉大的成就。我們在 FDD Scotland 的員工最近在他們的 3D AOI 客戶群中達到了相同的水平。

Cost and cash discipline will be a particular point of focus. To this end, we have initiated several projects to reduce OpEx. In addition, all businesses -- all business and technology programs are being evaluated against our new financial models and corrective actions are being taken. These tough decisions taken in Q1 of 2023 will be evident and ripple through our Q1 and the rest of 2023 financial results.

成本和現金紀律將成為特別關注的焦點。為此，我們啟動了多個項目來降低運營支出。此外，所有業務——所有業務和技術項目都在根據我們的新財務模型進行評估，並正在採取糾正措施。這些在 2023 年第一季度做出的艱難決定將顯而易見，並會影響我們第一季度和 2023 年剩餘時間的財務業績。

Fourth, we're looking to drive yield improvements. Yield improvements will be accomplished mainly by focusing on quality, improving our rate of material-to-unit conversion and building efficiencies into the fab. Increasing quality and ultimately reducing costs improves margins and on-time delivery. As part of our quality review in Q4, it was determined that we needed to improve our internal processes, automation, clean room -- cleanliness through additional investment, which was the catalyst for our capital raise in Q1 of this year.

第四，我們希望提高產量。產量的提高將主要通過關注質量、提高我們的材料到單位轉換率和提高工廠效率來實現。提高質量並最終降低成本可以提高利潤和準時交貨。作為我們第四季度質量審查的一部分，確定我們需要通過額外投資改善內部流程、自動化、潔淨室——清潔度，這是我們今年第一季度融資的催化劑。

Last and certainly not least, is our efforts to ensure R&D is aligned with our strategic plan. Return on investment on funded R&D will face increased scrutiny to ensure unprofitable projects are avoided and profitable projects are pursued and prioritized. Additionally, our focus on internal research and development should be toward value-added application-specific projects and disruptive leading-edge technologies and capabilities developed with our customers.

最後但同樣重要的是，我們努力確保研發與我們的戰略計劃保持一致。資助研發的投資回報將面臨更嚴格的審查，以確保避免無利可圖的項目，並追求和優先考慮有利可圖的項目。此外，我們對內部研發的關注應該是針對特定應用程序的增值項目以及與客戶共同開發的顛覆性前沿技術和能力。

As an example, our fully integrated surgical head mounted display is progressing well and attracting significant interest in the health care market. We've also made significant progress recently on our micro LED programs, which we will provide technical updates throughout the year. We believe this is transformative technology, which will be able to not only unlock fully integrated day and nighttime AR/VR applications.

例如，我們完全集成的手術頭戴式顯示器進展順利，並引起了醫療保健市場的極大興趣。我們最近在微型 LED 項目上也取得了重大進展，我們將在全年提供技術更新。我們相信這是一項變革性技術，它不僅能夠解鎖完全集成的白天和夜間 AR/VR 應用程序。

Now during our recent restructuring, we separated the business development and program management disciplines and added more resources to both in order to grow our order pipeline and manage several significant programs moving from R&D and qualification to low-rate initial production through this year and next year.

現在，在我們最近的重組過程中，我們將業務開發和項目管理學科分開，並為兩者增加了更多資源，以擴大我們的訂單渠道並管理幾個重要項目，從研發和資格認證到今年和明年的低速初始生產.

Let me now take you -- take a moment to update all of you on a couple of our key development programs. As we announced last week, we expect our F-35 OLED program to enter full rate production qualification shortly. As a reminder, and this is very important, our backplane was designed here in the United States to be able to be deposited upon on a standard silicon wafer OLED deposition.

現在讓我帶你 - 花點時間向大家介紹我們的幾個關鍵開發計劃的最新情況。正如我們上周宣布的那樣，我們預計我們的 F-35 OLED 計劃將很快進入全速生產資格階段。提醒一下，這一點非常重要，我們的背板是在美國這裡設計的，能夠沉積在標準矽晶片 OLED 沉積物上。

Therefore, we can utilize many different OLED deposition vendors in China, United States and in Europe, depending on the cost and performance of the vendor and most importantly, the cost and performance requirements of the customer application. This allows for and supports a continuity and secure supply which satisfies the U.S. government regulations. We've also made significant progress on our (inaudible) upgrade and expect to move that program into final PPAP qualification shortly.

因此，我們可以利用中國、美國和歐洲的許多不同的 OLED 沉積供應商，這取決於供應商的成本和性能，最重要的是，客戶應用程序的成本和性能要求。這允許並支持滿足美國政府法規的連續性和安全供應。我們在（聽不清）升級方面也取得了重大進展，並希望很快將該計劃轉移到最終的 PPAP 資格認證中。

PPAP is an automotive readiness qualification standard. This is the last step before production and a significant step and solidification for Kopin, since we believe this program could be one of the largest revenue contributions for the company in the future years. Furthermore, it provides Kopin with the pedigree and the proof points to enter into further mobile defense and automotive applications. We are excited and hopeful to announce this in the final phase of the program very shortly. I'll now turn the call over to our CFO, Rich Sneider, to review our results in further detail. Rich?

PPAP 是一種汽車準備資格標準。這是生產前的最後一步，也是 Kopin 的重要一步和鞏固，因為我們相信該計劃可能是未來幾年公司最大的收入貢獻之一。此外，它為 Kopin 提供了進一步進入移動防禦和汽車應用的譜系和證明點。我們很高興並希望很快在該計劃的最後階段宣布這一點。我現在將電話轉給我們的首席財務官 Rich Sneider，以進一步詳細審查我們的結果。富有的？

Thank you, Michael. Turning to our financial results. Total revenues for Q4 2022 were $12.2 million versus $13.2 million for the prior year, an overall 8% decrease year-over-year. Product revenues for the fourth quarter ended December 31, 2022, were $8.7 million compared with $8.8 million for the fourth quarter ended December 25, 2021, essentially flat.

謝謝你，邁克爾。轉向我們的財務業績。 2022 年第四季度的總收入為 1220 萬美元，而去年同期為 1320 萬美元，同比總體下降 8%。截至 2022 年 12 月 31 日的第四季度產品收入為 870 萬美元，而截至 2021 年 12 月 25 日的第四季度為 880 萬美元，基本持平。

Defense product revenues increased $1.2 million or 19.6% year-over-year, while industrial product revenues decreased approximately $1.1 million or 46% year-over-year. Funded research and development revenues were $3.3 million for the fourth quarter of 2022 compared with $4.3 million for the fourth quarter of 2021, a 24% decline. The decline in our funded research development programs is to our funded R&D programs maturing and entering to low-rate initial production, or LRIP.

國防產品收入同比增長 120 萬美元或 19.6%，而工業產品收入同比下降約 110 萬美元或 46%。 2022 年第四季度獲得資助的研發收入為 330 萬美元，與 2021 年第四季度的 430 萬美元相比下降了 24%。我們資助的研究開發項目的減少是因為我們資助的研發項目日趨成熟並進入低速率初始生產或 LRIP。

Cost of goods sold for the fourth quarter of 2022 was $8.9 million or 103% of product revenues compared with $7.5 million or 85% for the fourth quarter of last year. The increase in cost of product revenues as a percent of net product revenues for the 3 months ended December 31, 2022, as compared to the prior year was primarily due to lower absorption of costs as we reduced production to make changes in the manufacturing of products and additional material costs.

2022 年第四季度的商品銷售成本為 890 萬美元，佔產品收入的 103%，而去年第四季度為 750 萬美元，佔產品收入的 85%。與上一年相比，截至 2022 年 12 月 31 日的三個月中，產品收入成本佔產品淨收入的百分比有所增加，這主要是由於我們減少了生產以改變產品製造方式，導致成本吸收減少和額外的材料成本。

R&D expenses in the fourth quarter of 2022 were $4.7 million compared with $5.2 million for the fourth quarter of '21. The decrease in 2022 fourth quarter R&D expense as compared to prior year was due to lower funded R&D expense caused by programs moving to LRIP, partially offset by higher internal R&D expenses. SG&A expenses were $4.9 million in the fourth quarter of 2022 compared to $4.1 million in the fourth quarter of '21. The SG&A increase for the 3 months ended December 31, 2022, as compared to the prior year was primarily due to an increase in compensation and professional fees, which were partially offset by lower stock-based compensation costs.

2022 年第四季度的研發費用為 470 萬美元，而 2021 年第四季度為 520 萬美元。與去年同期相比，2022 年第四季度研發費用減少是由於項目轉移到 LRIP 導致資助的研發費用減少，部分被內部研發費用增加所抵消。 2022 年第四季度的 SG&A 費用為 490 萬美元，而 2021 年第四季度為 410 萬美元。與上一年相比，截至 2022 年 12 月 31 日止三個月的 SG&A 增加主要是由於薪酬和專業費用的增加，這部分被較低的股票薪酬成本所抵消。

Turning to the bottom line. The net loss attributed to Kopin for the fourth quarter was approximately $6.2 million or $0.07 per share compared with $3.3 million or $0.04 per share for the fourth quarter of '21. Now turning to the full year results. Total revenues for 2022 were $47.4 million compared with $45.7 million, a 4% increase. The 2022 revenue increase as compared to 2021 was driven by an increase in defense revenues of $6.6 million or 36%, which was partially offset by a decline in industrial enterprise revenues of $3.6 million or 37% and consumer and other revenues, which declined approximately $500,000 or 24%.

轉向底線。 Kopin 第四季度的淨虧損約為 620 萬美元或每股 0.07 美元，而 2021 年第四季度的淨虧損為 330 萬美元或每股 0.04 美元。現在轉向全年業績。與 4570 萬美元相比，2022 年的總收入為 4740 萬美元，增長了 4%。與 2021 年相比，2022 年的收入增長是由國防收入增長 660 萬美元或 36% 推動的，這部分被工業企業收入下降 360 萬美元或 37% 以及消費者和其他收入下降約 500,000 美元所抵消或 24%。

Cost of product revenues as a percent of net product revenues for 2022 and 2021, were 100% and 84%, respectively. Cost of product revenues increased as a percentage in 2022 as compared to 2021, primarily due to excess material costs and inefficiencies caused by supply chain disruptions. R&D expense in 2022 was $18.7 million, a 15% increase compared to the $16.3 million in 2021.

2022 年和 2021 年，產品收入成本佔產品淨收入的百分比分別為 100% 和 84%。與 2021 年相比，2022 年產品收入成本的百分比有所增加，這主要是由於材料成本過高和供應鏈中斷導致的效率低下。 2022 年的研發費用為 1870 萬美元，比 2021 年的 1630 萬美元增長了 15%。

Funded R&D expenses were $10.3 million for 2022 as compared to $10 million for 2021, a 3% increase. Internal R&D expense was approximately $8.4 million for 2022 as compared to $6.3 million for 2021, a 33% increase. Internal R&D expenses for 2022 increase as compared to the prior year, primarily due to increased OLED development costs. With the spin-off of OLED activities for consumer markets to lightning silicon, we expect internal R&D expenses to decrease in 2023.

2022 年資助的研發費用為 1030 萬美元，而 2021 年為 1000 萬美元，增長 3%。與 2021 年的 630 萬美元相比，2022 年的內部研發費用約為 840 萬美元，增長了 33%。 2022年內部研發費用較上年增加，主要原因是OLED開發成本增加。隨著面向消費市場的 OLED 活動分拆到 Lightning Silicon，我們預計內部研發費用將在 2023 年減少。

SG&A expenses were $18 million in 2022 compared to $18.1 million for 2021, essentially flat. SG&A expenses for 2022 had increases as compared to '21 in professional and compensation costs, which were partially offset by lower stock-based compensation costs. Other income for fiscal 2022 and 2021, were income of $2.6 million and $436 million, respectively. In 2022, we recorded a write of other investment of $4.7 million and an impairment write-down of $2.2 million in another investment.

2022 年的 SG&A 費用為 1800 萬美元，而 2021 年為 1810 萬美元，基本持平。與 21 年相比，2022 年的 SG&A 費用在專業和薪酬成本方面有所增加，這部分被較低的基於股票的薪酬成本所抵消。 2022 財年和 2021 財年的其他收入分別為 260 萬美元和 4.36 億美元。 2022 年，我們記錄了 470 萬美元的其他投資減記和另一項投資的減值減記 220 萬美元。

Other income for fiscal '22 included $323,000 foreign currency losses compared to $139,000 of foreign currency gains recorded in fiscal '21. Turning to our bottom line. Net loss for controlling interest for the fiscal year ended December 31, 2022, was $19.3 million or $0.21 per share versus a net loss of $13.4 million or 15% -- $0.15 per share for '21. 10% customers for 2022 were DRS network in imaging at 40% and Collins Aerospace at 28%.

'22 財年的其他收入包括 323,000 美元的外幣損失，而 '21 財年記錄的外幣收益為 139,000 美元。談到我們的底線。截至 2022 年 12 月 31 日止財政年度的控股權益淨虧損為 1930 萬美元或每股 0.21 美元，而 '21 的淨虧損為 1340 萬美元或 15% - 每股 0.15 美元。 2022 年 10% 的客戶是成像領域的 DRS 網絡，佔 40%，Collins Aerospace 佔 28%。

Kopin's cash and equivalents and marketable securities were approximately $12.6 million at December 31, 2022. Subsequent to the year-end, we raised capital where we sold 17 million shares of Kopin stock and issued prefunded warrants for another 6 million shares. The net proceeds were approximately $21.5 million. We have no long-term debt. The amounts discussed above are based on our current estimates. And listeners should review our Form 10-K for the year ended December 31, 2022, for any possible changes and of course, any additional filings. And with that, I'll turn the call back over to Michael.

截至 2022 年 12 月 31 日，Kopin 的現金、等價物和有價證券約為 1260 萬美元。年底後，我們出售了 1700 萬股 Kopin 股票並發行了另外 600 萬股預注資認股權證。所得款項淨額約為 2150 萬美元。我們沒有長期債務。上面討論的金額是基於我們目前的估計。聽眾應該查看我們截至 2022 年 12 月 31 日止年度的 10-K 表格，了解任何可能的更改，當然還有任何其他文件。有了這個，我會把電話轉回邁克爾。

Thanks, Rich. I'm really pleased with the progress we're making as a company and as an organization, the partial spin out of our OLED development unit aligns with our intention to focus on long-term, sustainable and profitable growth while we remain able to support our customers with a full portfolio of 8-inch OLED devices and access to 12-inch devices in the future.

謝謝，里奇。我對我們作為一家公司和一個組織所取得的進展感到非常高興，部分剝離我們的 OLED 開發部門符合我們專注於長期、可持續和盈利增長的意圖，同時我們仍然能夠支持我們的客戶擁有完整的 8 英寸 OLED 設備組合，並在未來獲得 12 英寸設備。

Our FL cost remains competitive in the 3D AOI market. It's finding its way into new applications like the Abrams Tank program. Our AMLCD product remains in demand for the foreseeable future while our micro LED product line is becoming a reality and offers exceptional revenue potential for this company in all of our markets. These initiatives, along with our secondary equity offering in January, where we raised $21.5 million, will serve to improve our quality, provide financial flexibility over the near term and drive Kopin into the future.

我們的 FL 成本在 3D AOI 市場上仍然具有競爭力。它正在尋找新的應用程序，如艾布拉姆斯坦克計劃。我們的 AMLCD 產品在可預見的未來仍然有需求，而我們的微型 LED 產品線正在成為現實，並為該公司在我們所有市場中提供非凡的收入潛力。這些舉措，連同我們在 1 月份籌集了 2150 萬美元的二次股票發行，將有助於提高我們的質量，在短期內提供財務靈活性，並推動 Kopin 走向未來。

With regard to 2023, our focus is on strengthening our order book, achieving higher on-time and full and cost controls, which in the aggregate will improve cash flow and get us to profitability. The partial spin out of the OLED team and our recent reductions in force, along with a number of new internal processes, are our first step. And we'll keep you updated as we progress through 2023. I'd like to thank everyone for your time today and for showing interest in Kopin.

關於 2023 年，我們的重點是加強我們的訂單，實現更高的準時率和全面成本控制，這總體上將改善現金流並使我們實現盈利。 OLED 團隊的部分分拆和我們最近的裁員，以及一些新的內部流程，是我們邁出的第一步。隨著我們在 2023 年的進展，我們會及時通知您。我要感謝大家今天的時間以及對 Kopin 的興趣。

I'd like to thank our employees, our stakeholders and all their hard work and dedication. Indeed, embarking on new strategic directions is never easy. But I'm really proud of the team we have here at Kopin. With their continued work, persistence and patience, I think we can achieve great things and grow the business to new heights, and we're truly excited about the future. So with that, operator, I'll turn it over to you and take some questions.

我要感謝我們的員工、我們的利益相關者以及他們的辛勤工作和奉獻精神。事實上，開啟新的戰略方向絕非易事。但我真的為我們在 Kopin 的團隊感到自豪。憑藉他們持續的工作、堅持和耐心，我認為我們可以取得偉大的成就並將業務發展到新的高度，我們對未來感到非常興奮。那麼，接線員，我會把它交給你並回答一些問題。

(Operator Instructions)

（操作員說明）

Our first question is from Glenn Mattson with Ladenburg Thalmann.

我們的第一個問題來自 Glenn Mattson 和 Ladenburg Thalmann。

So I'm curious, Michael, you laid out a lot of moving parts around the cost cuts and the different changes to the model between the workforce reduction and the kind of plans for better kind of on-time deliveries and all that stuff. So if you kind of boil it all together, can you just kind of lay out a sense for what the margin profile should look like kind of the -- how long it's going to take to get to where you need -- where you think you should be? And what the ultimate goal will be for where you tend to get to?

所以我很好奇，邁克爾，你圍繞成本削減和模型的不同變化在勞動力減少和更好的準時交貨計劃和所有這些東西之間佈置了很多活動部分。因此，如果您將所有內容都放在一起，您能否大致了解一下利潤率概況應該是什麼樣子——需要多長時間才能達到您需要的位置——您認為您的位置應該？您傾向於到達的最終目標是什麼？

Sure. Thanks, Glenn. I think the -- Q1, I'll start there, is really the kitchen sink. We put in a lot of effort and a lot of pace into change in Q1. I did that intentionally firstly, because I felt like there's no time to waste, number one; number two, the cost cutting that we needed to put in place was there. I can see it. There was a low risk to it, albeit unfortunate, no one likes to reduce force.

當然。謝謝，格倫。我認為 - Q1，我將從那裡開始，真的是廚房水槽。我們在第一季度為變革付出了很多努力和很多步伐。我首先是故意這樣做的，因為我覺得沒有時間可以浪費了，第一；第二，我們需要實施的成本削減就在那裡。我能看到它。這樣做的風險很低，儘管很不幸，但沒有人喜歡減少武力。

But that was done mindfully with the thought process around reducing our costs, not just for cost of goods sold. So we have a program in terms of looking at our cost base from our supplier set, our quality base from our supplier set as well as our resales, meaning we're working with our customers actively to look at our contracts that are underperforming and negotiate those contracts again for higher resales, if possible.

但這是通過圍繞降低成本的思考過程而有意識地完成的，而不僅僅是為了銷售商品的成本。因此，我們有一個計劃，從我們的供應商集中查看我們的成本基礎，從我們的供應商集中查看我們的質量基礎以及我們的轉售，這意味著我們正在與我們的客戶積極合作，查看我們表現不佳的合同並進行談判如果可能的話，這些人會再次簽訂更高的轉售合同。

So all of those things are going on all at once. So it provides a little bit less certainty into Q1. But we'll see those cost reductions, those improvements in our on-time in full into Q2. So we're very much looking forward to Q2 and Q3 from a cost perspective. So where we want to be over the course of the next, I'd say, 2 quarters is improving our margin base by 5% to 10%.

所以所有這些事情都是同時發生的。因此，它為第一季度提供了一點不確定性。但是我們將看到這些成本的降低，以及我們在第二季度全面準時的改進。因此，從成本的角度來看，我們非常期待第二季度和第三季度。所以我們希望在接下來的過程中，我會說，2 個季度將我們的利潤率基礎提高 5% 到 10%。

That's an aggressive, aggressive goal for us based on the business that we're in. But I think if you look at where we'll be at the end of Q1 after the spin out of the -- partial spin out of the OLED team, the reduction in force, we put a lot of pressure on our supply chain to reduce costs. We're negotiating contracts that are not beneficial for Kopin, either exiting them or increasing price. And we have had some successes in some of our smaller account base with that. So probably too early to tell or too early to claim any victories, but I think we're on the right track.

根據我們所處的業務，這對我們來說是一個積極進取的目標。但我認為，如果你看看我們在分拆 OLED 團隊後的第一季度末的位置，力量的減少，我們給我們的供應鏈施加了很大的壓力來降低成本。我們正在談判對 Kopin 不利的合同，要么退出它們，要么提高價格。我們在一些較小的客戶群中取得了一些成功。因此，下結論或宣布任何勝利可能為時過早，但我認為我們走在正確的軌道上。

Great. That's very helpful. Curious, you laid out a lot on the defense side. Can you talk about maybe the industrial, the AOI stuff, maybe what the pace of that kind of cycle looks like, number one? And then on the consumer -- I'm sorry, on the -- like the head mounted display side, there was talk of a (inaudible) product in 2022. Do you expect that market to bounce back in '23?

偉大的。這很有幫助。很好奇，你在防守端做了很多安排。你能談談工業、AOI 的東西，也許這種週期的速度是什麼樣的，第一？然後在消費者方面——對不起，在——就像頭戴式顯示器方面，有人在談論 2022 年的（聽不清）產品。你預計這個市場會在 23 年反彈嗎？

Sorry, I missed that last part, Glenn. Can you repeat it?

對不起，我錯過了最後一部分，格倫。你能重複一遍嗎？

On the head mounted display, like things like you're partners with RealWear and people like that, there will be talk about the product in '22 as that you expect to bounce back this year?

在頭戴式顯示器上，比如你是 RealWear 的合作夥伴之類的人，會談論 22 年的產品，因為你預計今年會反彈？

So let's start with 3D AOI. We actually expected this year to be somewhat flat to down in 3D AOI just because of the semiconductor cyclicality that goes along with it. However, we've been increasing pace of orders. And the last I checked, which was last week, we have 70% order cover for the 3D AOI business out of Scotland and the FDD folks. So that's a good place to be for this year.

那麼讓我們從 3D AOI 開始吧。我們實際上預計今年 3D AOI 會持平甚至下降，因為隨之而來的是半導體週期性。但是，我們一直在加快訂單速度。我最後一次檢查是在上週，我們有 70% 的訂單來自蘇格蘭和 FDD 人員的 3D AOI 業務。所以這是今年的好去處。

I do expect that we'll see increases in order rates for 3D AOI later on this year. So we have a good opportunity to actually grow in that business. It's very cyclical, but I do feel comfortable now that we're sitting at around a 70% order rate for this year to say that, that business will be flat to slightly up. I think we're being a little too pessimistic thinking that, that market won't come back this year. So that's number one.

我確實預計我們會在今年晚些時候看到 3D AOI 的訂單率增加。因此，我們有很好的機會在該業務中實際發展。這是非常週期性的，但我確實感到很舒服，因為我們今年的訂單率約為 70%，可以說，該業務將持平或略有上升。我認為我們有點過於悲觀，認為市場今年不會回歸。所以這是第一。

Number two, on the industrial side of things and speaking with the CEOs of those customers specifically, they're seeing the over-inventory position abate. They're starting to get bigger quotes or request for quotes or at least request for information and for larger quotes. So customers that were buying 1, 2 or 10 devices are now looking for quotes for 20 to 50, which is always a good trend, showing that their adoption rate is increasing. So we do expect to see some new products into 2022 in that marketplace, number one; and number two, we think that, that business will start to come back now that they're properly allocated in terms of inventories.

第二，在工業方面，特別是與這些客戶的首席執行官交談時，他們看到庫存過剩的情況有所緩解。他們開始獲得更大的報價或報價請求或至少請求信息和更大的報價。因此，購買 1、2 或 10 台設備的客戶現在正在尋找 20 到 50 台的報價，這始終是一個好趨勢，表明他們的採用率正在增加。因此，我們確實希望到 2022 年在該市場上看到一些新產品，排名第一；第二，我們認為，業務將開始恢復，因為它們在庫存方面得到了適當的分配。

Our next question is from Kevin Dede with H.C. Wainwright.

我們的下一個問題來自 H.C. 的 Kevin Dede。溫賴特。

Michael, can you start just kind of rolling through where you are in manufacturing? And maybe a little more detail with regard to the OLED spin, where that puts you from -- in a backplane production point? And just sort of review your OLED deposition options so we fully understand the government requirements to meet the F-35 contract.

邁克爾，你能從你在製造業的地方開始嗎？也許關於 OLED 旋轉的更多細節，這讓你從哪裡 - 在背板生產點？只需審查您的 OLED 沉積選項，以便我們完全了解滿足 F-35 合同的政府要求。

Sure. So from...

當然。所以從...

I apologize, it's a lot, but I think it's critically important to understand those details in light of your restructuring.

抱歉，很多，但我認為根據您的重組了解這些細節至關重要。

No, absolutely. I think it's a great question. So I'll only cover what I know from what we're doing at Kopin, and I can answer the question this way. Our AMLCD continues to support the mission of our customer. And the customers funded the research and development to develop the OLED display, which is unique in its level of performance for that customer and for that application.

不，絕對。我認為這是一個很好的問題。所以我只會介紹我在 Kopin 所做的事情所知道的，我可以這樣回答這個問題。我們的 AMLCD 繼續支持我們客戶的使命。客戶出資研發 OLED 顯示器，其性能水平對於該客戶和該應用而言是獨一無二的。

So to say it very plainly, the customer paid us to develop a very unique high-performance OLED device. As you know, we do utilize a partner in China for the deposition currently. Obviously, this is the most important part since our backplane is based on a silicon wafer-based process. We can deposit on that backplane, which was designed in the United States, built in Taiwan, not China, as someone mentioned, it's actually built in Taiwan. We can deposit on that backplane with multiple vendors here in the United States, in Canada, the U.K., Germany and France.

所以說白了就是客戶花錢讓我們開發了一個非常獨特的高性能OLED器件。如您所知，我們目前確實利用中國的合作夥伴進行取證。顯然，這是最重要的部分，因為我們的背板是基於基於矽晶圓的工藝。我們可以在那個背板上沉積，它是在美國設計的，在台灣建造的，而不是中國，正如有人提到的，它實際上是在台灣建造的。我們可以與美國、加拿大、英國、德國和法國的多家供應商一起在該背板上進行沉積。

So from a standpoint of supporting security of supply, we're actually very secure to supply that end application with that specific customer because our design of the backplane is ubiquitous across anyone doing silicon wafer-based processing and deposition of OLED. So that's why we feel very confident and comfortable with our current supply chain, and why I believe the customer feels confident and comfortable with that supply chain as well.

因此，從支持供應安全的角度來看，我們實際上非常安全地為特定客戶提供最終應用，因為我們的背板設計在任何進行基於矽晶圓的加工和 OLED 沉積的人中無處不在。所以這就是為什麼我們對當前的供應鏈感到非常自信和舒適，以及為什麼我相信客戶也對供應鏈感到自信和舒適。

So now I'll put that aside for a second. When we think about OLED specifically, we still have a full suite of OLED-developed displays that we can sell into any application. That transition with LS was really done with a mindset of let's sell what we have as a strategy, meaning that sell all the 8-inch wafer material that we have, and we have a full suite of OLED devices that we can support our customers with.

所以現在我先把它放在一邊。當我們具體考慮 OLED 時，我們仍然擁有一整套 OLED 開發的顯示器，我們可以將其銷售到任何應用程序中。與 LS 的過渡確實是以讓我們出售我們擁有的戰略的心態完成的，這意味著出售我們擁有的所有 8 英寸晶圓材料，並且我們擁有一整套 OLED 設備，我們可以為我們的客戶提供支持.

But the bridge to get to 12-inch wafers, that $30 million to $40 million of investment, was just a bridge too far for Kopin at this point in time. So the next best solution, which we came to was let's spin it out, let's make sure there's bilateral use of that IP. And that way, we can support our customers at Kopin with 12-inch material if and when they get to that point with their customer base and their investors.

但通往 12 英寸晶圓的橋樑，即 3000 萬至 4000 萬美元的投資，在這個時間點對 Kopin 來說只是一座太過遙遠的橋樑。因此，我們得出的下一個最佳解決方案是讓我們將其拆分出來，讓我們確保對該 IP 進行雙邊使用。這樣一來，如果他們與客戶群和投資者達成一致，我們就可以用 12 英寸的材料為 Kopin 的客戶提供支持。

So it derisks our investment, it derisks our level of research and development that we need to do and still solidifies our future with 12-inch wafer OLED. So with all of that, there's obviously a strategy that we're putting together for multiple fab-light strategies. And I mentioned this in our previous call, this is part of it where we can go to different fabs and deposit OLED or other technologies like micro LED and have those technologies be built in different centers for security supply.

因此，它降低了我們的投資風險，降低了我們需要進行的研發水平的風險，並且仍然通過 12 英寸晶圓 OLED 鞏固了我們的未來。因此，儘管如此，顯然我們正在為多個 fab-light 策略制定一個策略。我在我們之前的電話中提到過這一點，這是其中的一部分，我們可以去不同的晶圓廠並沉積 OLED 或其他技術，如微型 LED，並將這些技術建立在不同的安全供應中心。

Okay. Can we take a step back and look at the AMLCD manufacturer? How did -- how are you set up there? And vis-a-vis the press release in early January and -- is an indication of -- and Glenn's question, too, like where are you in the process of refining your manufacturing and streamlining it and restructuring?

好的。我們能否退一步看看AMLCD廠商呢？你是如何在那裡設置的？相對於 1 月初的新聞稿，這表明 - 以及格倫的問題，就像你在改進製造、精簡和重組過程中的哪個階段一樣？

So I started in Q4. We've done a number of reviews of our internal AMLCD manufacturing processes. And specific to the clean room itself, we found some areas that we wanted to improve, which I hadn't foreseen actually in the first little while that I've been at Kopin. So that was the major impetus for our raise that we accomplished in Q1 of this year.

所以我從第四季度開始。我們對內部 AMLCD 製造流程進行了多次審查。具體到潔淨室本身，我們發現了一些我們想要改進的地方，我在 Kopin 的最初一段時間實際上沒有預見到這些地方。所以這是我們在今年第一季度完成加薪的主要動力。

And the raise was driven by some CapEx that we're going to be requiring for the fab. And more specifically, that CapEx is going into the areas where we're able to build application-specific optical display assemblies. So that's really the marriage between the display and the optics itself. And that's where we need to be very critical on how we manufacture these assemblies because we can have things like particles that get in between the display and the lenses.

加薪是由我們將要求的工廠所需的一些資本支出推動的。更具體地說，資本支出將進入我們能夠構建特定應用光學顯示組件的領域。所以這真的是顯示器和光學器件本身之間的結合。這就是我們需要對如何製造這些組件非常關鍵的地方，因為我們可能會有顆粒之類的東西進入顯示器和鏡頭之間。

So those particles basically create a display that is usable. So that's the area that we'll be investing in this year, and we've got a plan to make those capital equipment investments that will improve our overall quality from the display itself but also, and more importantly, in my mind, the overall application solutions. So that's the entire assembly, not just the display.

所以這些粒子基本上創建了一個可用的顯示。所以這就是我們今年要投資的領域，我們已經制定了進行這些資本設備投資的計劃，這些投資將從顯示器本身提高我們的整體質量，但更重要的是，在我看來，整體應用解決方案。這就是整個組件，而不僅僅是顯示器。

Okay. And apologies for rehashing this with Michael. But where do you think you are in that process? Is this the fab that's in Massachusetts? And when do you think you'll be fully ship-shape there?

好的。並為與 Michael 重複這一點而道歉。但是你認為你在那個過程中處於什麼位置？這是馬薩諸塞州的晶圓廠嗎？你認為你什麼時候會在那裡完全恢復正常？

So the issue that we're having is the lead time of the equipment itself. So we're looking at Q3 this year is when I think we will be fully optimized on where I want to be in terms of the level of quality that I expect out of the fab. And certainly, the new equipment will be installed at that point. We should start seeing benefit from that. Now that doesn't mean that we go from -- that there's no improvement that we can make between now and then.

所以我們遇到的問題是設備本身的交貨時間。所以我們正在考慮今年第三季度，我認為我們將在我期望的工廠質量水平方面得到全面優化。當然，屆時將安裝新設備。我們應該開始從中看到好處。現在，這並不意味著我們從 - 從現在到那時我們無法做出任何改進。

There's a lot of processes that we put in place, Kevin, like just the overall human process of [downing], et cetera, and protocols. So that process is ongoing, along with a lot of education. So we've embarked upon that in Q1. And it seems to be improving. By the way, our on-time and full in some of these programs has increased. I think when I started here, it was running around 63% on time in full with one of the major programs, and we hit 89% sustainably over the course of this quarter.

凱文，我們實施了很多流程，例如 [downing] 等整個人類流程和協議。所以這個過程是持續的，伴隨著大量的教育。所以我們在第一季度就開始了。而且它似乎正在改善。順便說一下，我們在其中一些項目中的準時率和滿員率都有所提高。我認為，當我在這裡開始工作時，其中一個主要項目的準時率約為 63%，而在本季度，我們可持續地達到了 89%。

So that's a digital step up in our quality improvement processes. And like I said earlier, the other facilities are doing quite well. And the AMLCD for Collins hit 100% on time in full all of last year. So it's not all bad. It's just that going into this application-specific solution space, we absolutely have to improve our processes, our protocols and some of our equipment. So I'd say Q3 of this year, we should be tip-top.

所以這是我們質量改進過程中的數字化進步。就像我之前說的，其他設施都做得很好。去年全年，Collins 的 AMLCD 準時率達到 100%。所以這並不全是壞事。只是進入這個特定於應用程序的解決方案空間，我們絕對必須改進我們的流程、我們的協議和我們的一些設備。所以我想說今年第三季度，我們應該是頂尖的。

Okay. You offered Glenn, the target of 5% margin. I'm wondering if that gross...

好的。您向格倫提供了 5% 保證金的目標。我想知道這是否噁心...

Improvement.

改進。

Yes -- oh. 5% improvement, right? Sorry. Apologies. Yes. That's slipped by the comment. I apologize. Question. So is that a gross margin improvement, Michael? Or an operating margin improvement?

是的——哦。 5% 的改善，對嗎？對不起。道歉。是的。評論漏掉了這一點。我道歉。問題。邁克爾，這是毛利率的提高嗎？還是營業利潤率提高？

That would be a gross margin improvement. So we're targeting 5% to 10%. And that really comes from operating the 2 levers. The 2 levers are our costs, cost of goods sold. So the cost coming into the building, but also the quality of those materials coming into the building, but also working with our customers in terms of making sure that we either have the right price or raise prices to make sure that we're covering our costs from the standpoint of inflation.

那將是毛利率的提高。所以我們的目標是 5% 到 10%。這真的來自操作 2 個槓桿。這兩個槓桿是我們的成本，即銷售商品的成本。因此，進入建築物的成本，以及進入建築物的材料的質量，還與我們的客戶合作，確保我們有合適的價格或提高價格，以確保我們覆蓋我們的從通貨膨脹的角度來看成本。

A bunch of questions, but I think probably the best one to ask is maybe drilling in a little deeper on your view of the supply chain and the improvement you're seeing and where you think it can go and sort of what time frame?

一堆問題，但我認為最好的一個問題可能是更深入地了解您對供應鏈的看法以及您所看到的改進以及您認為它可以去哪里以及什麼時間框架？

Yes. Great question. So we brought on some new talent in the procurement business -- side of the business, I should say. And also a new individual with the name of Ray, who joined us from Raytheon as our Quality Director, and they're actively working with suppliers right now to make sure that we're getting our material on time in full, and we've got a better incoming inspection, quality inspection levels.

是的。很好的問題。因此，我們在採購業務方面引進了一些新人才——我應該說是業務方面的人才。還有一個叫 Ray 的新人，他從 Raytheon 加入我們，擔任我們的質量總監，他們現在正積極與供應商合作，以確保我們能按時完整地獲得我們的材料，而且我們已經獲得了較好的來料檢驗、質檢水平。

So we've already embarked upon this, and they've got a clear mandate to reduce costs into the building and work with a supply chain set that is more approved than, I'd say, sporadic. So that work is ongoing. We've had some successes already with that team. So we're starting to track it now, but we don't have any data to share just yet.

所以我們已經開始著手了，他們有明確的授權來降低建築成本，並與一個比我想說的零星的供應鏈更受認可的供應鏈合作。所以這項工作正在進行中。我們已經和那個團隊取得了一些成功。所以我們現在開始追踪它，但我們還沒有任何數據可以分享。

Okay. When you step back and you look at the industry overall, though, Michael, what -- I mean, given pandemic disruptions now still sort of rippling through things, how do you think the overall industry has changed?

好的。但是，當你退後一步，看看整個行業時，邁克爾，我的意思是，鑑於大流行的破壞現在仍在某種程度上波及整個行業，你認為整個行業發生了怎樣的變化？

Well, I think folks have started to realize that you need to be more aligned with your vendor base. And that's on both sides. When working with our customer base, I've been very impressed and humbled quite frankly on how much our top customers want to work with Kopin and make sure that we're healthy, happy and a great supplier for them.

好吧，我認為人們已經開始意識到您需要與您的供應商群更加一致。這是雙方的。在與我們的客戶群合作時，坦率地說，我們的頂級客戶多麼希望與 Kopin 合作，並確保我們對他們來說是健康、快樂和出色的供應商，這給我留下了深刻的印象和謙卑。

And when I say healthy, that means financially as well as making sure that we get what we need from them. These are excellent customers. I think they're the best in the world. So they've learned, and just like we're learning, that we need to keep our vendor base very close to us, treat them well, make sure they understand what our desires are for the year in terms of research and development. So bringing them closer to us is helpful, not kind of the old school way of keeping your vendors away from you and telling them what you need and not necessarily collaborating with them.

當我說健康時，這意味著經濟上以及確保我們從他們那裡得到我們需要的東西。這些都是優秀的客戶。我認為他們是世界上最好的。所以他們已經了解到，就像我們正在學習的那樣，我們需要讓我們的供應商基礎與我們保持密切聯繫，善待他們，確保他們了解我們今年在研發方面的願望。因此，讓他們更接近我們是有幫助的，而不是那種讓供應商遠離你並告訴他們你需要什麼而不一定與他們合作的老派方式。

So we've taken a different approach, and it seems to be, so far, working well for us, and it's the same approach that we do and use with our customers, which is to work with them to make sure that we're developing the right technologies for their road map and vice versa. We need to do the right -- the same thing with our customer base.

所以我們採取了不同的方法，到目前為止，它似乎對我們運作良好，這與我們對客戶所做和使用的方法相同，即與他們合作以確保我們為他們的路線圖開發正確的技術，反之亦然。我們需要做正確的事——與我們的客戶群做同樣的事情。

And I think that's what's changed for Kopin, through COVID and everything else, we've now realized how important our supply chain is and how important quality in the door is the quality out the door. And I think that's the biggest change that I've seen at least at Kopin. From an industry perspective, I think firms are still finding a war on talent. And what I mean by that, Kevin, is it's really hard to hire. Even though firms like ours are reducing for us and you see it every day, finding great talent is still really hard.

我認為這就是 Kopin 發生的變化，通過 COVID 和其他一切，我們現在已經意識到我們的供應鏈有多麼重要，以及門內質量對門外質量的重要性。我認為這是我至少在 Kopin 看到的最大變化。從行業的角度來看，我認為公司仍在尋找人才戰爭。凱文，我的意思是真的很難招到人。儘管像我們這樣的公司正在為我們減少，而且你每天都看到它，但找到優秀人才仍然非常困難。

So I think that's what the biggest change in the industry that I've seen is folks just don't want to go back to work. And if they do, they don't want to come into an office. We've been very fortunate so far. I think we're in a great place because of where we are and who we are. But the other company is really struggling.

所以我認為這就是我所看到的行業中最大的變化，人們就是不想回去工作。如果他們這樣做，他們也不想進入辦公室。到目前為止，我們非常幸運。我認為我們處在一個偉大的地方，因為我們所處的位置和我們是誰。但另一家公司真的很掙扎。

Okay. Last question...

好的。最後一個問題...

I hope I satisfied your question.

我希望我能滿足你的問題。

Yes. No, that's great insight. Appreciate the time. Rich, it looks like with 12.5% roughly at the end of the year and 21.5% raised, you're at roughly 34%. Is that fair?

是的。不，這是偉大的洞察力。珍惜時光。 Rich，看起來在年底時大約有 12.5% 和 21.5% 的提高，你大約是 34%。這公平嗎？

30-ish, yes.

30歲左右，是的。

There are no further questions at this time. I'd like to hand the floor back over to Michael Murray for any closing comments.

目前沒有其他問題。我想將發言權交還給 Michael Murray，讓他發表任何結束評論。

Well, thank you all very much for joining today's call. We look forward to updating everyone on our next call. Q1 will be the first quarter where I've had both hands on the wheel. And I'm looking forward to seeing some of the big changes that we've made start to come through the financial results of the company. So thank you all, and I appreciate your time today. Take care.

非常感謝大家參加今天的電話會議。我們期待在下次電話會議上為大家提供最新信息。 Q1 將是我雙手掌握方向盤的第一個季度。我期待看到我們已經開始通過公司的財務業績做出一些重大改變。所以謝謝大家，我感謝你今天的時間。小心。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。