Kopin Corp (KOPN) 2023 Q3 法說會逐字稿

Good afternoon, everyone, and welcome to the Kopin Corporation Third Quarter 2023 earnings call. (Operator Instructions) I'd like to turn the conference over to Quinn Callahan, Investor Relations for Kopin.

大家下午好，歡迎參加 Kopin 公司 2023 年第三季財報電話會議。 （操作員指示）我想將會議轉交給 Kopin 投資者關係部門的 Quinn Callahan。

Please go ahead.

請繼續。

Thank you. Good afternoon, everyone. Before we get started, I'd like to remind everyone that during today's call is taking place on Thursday, November 9, 2023, we will be making forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.

謝謝。大家下午好。在開始之前，我想提醒大家，在 2023 年 11 月 9 日星期四舉行的今天的電話會議中，我們將做出 1995 年《私人證券訴訟改革法案》中定義的前瞻性聲明。

These statements are based on the company's current expectations, projections, beliefs and estimates and are subject to a number of risks and certain uncertainties that could cause actual results to differ materially from those forward-looking statements.

這些陳述是基於公司目前的預期、預測、信念和估計，並受到許多風險和某些不確定性的影響，可能導致實際結果與這些前瞻性陳述有重大差異。

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. The company undertakes no obligation to update the forward-looking statements made during today's call.

潛在風險包括但不限於我們產品的需求、子公司的經營業績、市場狀況以及我們最近的 10-K 表格年度報告和向美國證券交易委員會提交的其他文件中討論的其他因素。儘管公司認為這些陳述背後的假設是合理的，但其中任何一個都可能被證明是不準確的，並且不能保證結果一定會實現。該公司沒有義務更新今天電話會議中所做的前瞻性陳述。

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. Kopin Corporation's Chief Executive Officer, Michael Murray will begin today's call with an overview of Kopin's progress within the company strategy. Following Michael Kopin's CFO, Richard Sneider, will review the company's third quarter returns.

此外，可能會引用某些非普遍接受的會計原則或非 GAAP 衡量標準，對此，您應參閱本公司向 SEC 提交的文件和新聞稿中的適當免責聲明和調節表。 Kopin 公司執行長 Michael Murray 將在今天的電話會議中概述 Kopin 在公司策略方面的進展。繼Michael Kopin之後，財務長Richard Sneider將審查該公司第三季的回報。

I would now like to turn the conference over to Michael Murray.

我現在想把會議交給邁克爾·莫瑞。

Thank you, Quinn. Good afternoon to everyone, and welcome to our third quarter earnings call. I wanted to start with a brief explanation for rescheduling our call, a technical accounting issue was raised on revenue recognition of a development contract that required additional research to ensure proper accounting and was resolved earlier today.

謝謝你，奎因。大家下午好，歡迎參加我們第三季的財報電話會議。我想先簡要地解釋一下重新安排我們的電話會議的時間，在開發合約的收入確認方面提出了一個技術會計問題，需要進行額外的研究以確保正確的會計，並在今天早些時候得到了解決。

Moving on, I would like to welcome David Nieuwsma, who joined our Board of Directors this week. David joins us from Collins Aerospace, where he spent over 32 years in several key senior leadership roles and as a former Air Force Officer, he understands our customers, our technology and our culture deeply. We welcome David to the team and believe he will be a great asset for Kopin, again, our shareholders.

接下來，我要歡迎本週加入我們董事會的 David Nieuwsma。 David 在加入我們之前在柯林斯航空航天公司工作了超過 32 年，擔任過多個重要的高級領導職務，作為前空軍軍官，他深入了解我們的客戶、我們的技術和我們的文化。我們歡迎 David 加入團隊，並相信他將成為 Kopin 以及我們的股東的寶貴財富。

Now I'm proud to announce that we've made significant progress on our transformation plan and turned in $10.6 million in revenue for the quarter, our fourth consecutive positive book-to-bill quarter at improved margins.

現在，我很自豪地宣布，我們的轉型計劃取得了重大進展，本季度收入達到 1,060 萬美元，這是我們連續第四個季度實現訂單出貨比增長，利潤率有所提高。

Turning to our first strategic initiative, building the backlog in the third quarter of 2023 we booked follow-on orders of approximately $12.8 million, $3.4 million and a $1.9 million in our reorder, as well as several smaller orders, which resulted in a book-to-bill ratio of approximately two to one for the quarter. We believe this is a record order level for Kopin over the last 10 years.

談到我們的第一個策略舉措，即在2023 年第三季建立積壓訂單，我們在重新訂購中預訂了約1280 萬美元、340 萬美元和190 萬美元的後續訂單，以及幾個較小的訂單，這導致了預訂-本季的出貨比約為二比一。我們相信這是 Kopin 過去 10 年來創紀錄的訂單水準。

Our continually growing order book translated into good third quarter revenues at $10.6 million as compared to $11.7 million for the third quarter of 2022. Our industrial revenue were down $1.4 million year over year due to continued weakness in the 3D automated test market, specifically in China.

我們不斷成長的訂單轉化為良好的第三季收入，達到1,060 萬美元，而2022 年第三季為1,170 萬美元。由於3D 自動化測試市場（特別是中國）持續疲軟，我們的工業收入年減140萬美元。

I'll now introduce Kopin to those who might be less familiar before diving more deeply into the events of the last quarter. Kopin is the only U.S. manufacturer of human centric AR and VR applications. Specific optical solutions and microdisplays used primarily to provide situational awareness for war fighters for surgeons and gamers alike.

在更深入了解上個季度的事件之前，我現在將向那些可能不太熟悉的人介紹科平。 Kopin 是美國唯一以人為本的 AR 和 VR 應用製造商。特定的光學解決方案和微型顯示器主要用於為外科醫生和遊戲玩家等作戰人員提供態勢感知。

You can find our solutions in weapon sights, armored vehicles, pilot helmet, visors and soon surgical head-mounted displays. The heart of these visual systems and solutions is composed of a microdisplay no larger than the human Tom. Kopin offers for different types of microdisplays. Our proprietary MLCDFL. costs, both LED and micro LEDs, which are the absolute cutting edge of display technology.

您可以在武器瞄準器、裝甲車、飛行員頭盔、護目鏡以及即將推出的手術頭戴式顯示器中找到我們的解決方案。這些視覺系統和解決方案的核心是一個不比人類湯姆大的微型顯示器。 Kopin 提供不同類型的微型顯示器。我們專有的 MLCDFL。無論是LED還是Micro LED，它們都是顯示器技術的絕對前沿。

Kopin is the vanguard of this technology and has developed a monochrome micro LED and has a color version within reach. If a microdisplay is the heart of our application-specific optical solutions than the software that controls the knobs of the solution, that's the brain software will be critical to the next stage in Kopin's growth as we adapt our technologies to each individual unique user.

Kopin 是這項技術的先鋒，開發了單色 Micro LED，並且已經推出彩色版本。如果說微顯示器是我們特定應用光學解決方案的核心，而不是控制解決方案旋鈕的軟體，那麼當我們根據每個獨特的用戶調整我們的技術時，大腦軟體對於Kopin 下一階段的發展至關重要。

Indeed, our new mission is to adopt technology to the user and not force the user to adapt to the technology. This compares to companies that require users to insert specialized lenses into their displays or systems to adapt that person's vision to the device, software and artificial intelligence are new endeavors for Kopin, and we recognize that we lack certain capabilities to tackle these on our own.

事實上，我們的新使命是讓使用者採用技術，而不是強迫使用者適應技術。相較之下，公司要求使用者在顯示器或系統中插入專門的鏡頭，以使人的視覺適應設備，軟體和人工智慧是 Kopin 的新嘗試，我們認識到我們缺乏某些能力來獨自解決這些問題。

This recognition has led Kopin to partner with MITCCL lab, this lab as the premier institution of technology and AI development. With this partnership, Kopin is looking to augment our internal software capabilities and to turbocharge our firmware powering all of our products and ultimately resolve the AR induced nausea that currently bedeviled users by allowing those knobs of the display to be turned either automatically or by the user.

這種認可促使 Kopin 與 MITCCL 實驗室合作，該實驗室是技術和人工智慧開發的首要機構。透過此次合作，Kopin 希望增強我們的內部軟體功能，並增強為我們所有產品提供支援的韌體，並透過允許自動或由用戶轉動顯示器的旋鈕，最終解決目前困擾用戶的 AR 引起的噁心問題。

Custom optics and ruggedized solutions and housings are the eyes and skeletons of an application-specific solution. Arrays of custom optical lenses need to work harmoniously with the rugged housing to transmit crystal clear image produced by our market microdisplays, and that is where Covance expertise shines pairing of microdisplays, optics, housings and firmware continued to progress our application-specific solutions far from where we began, but as I mentioned, empowering software and algorithms will drive Kopin into the future.

客製化光學元件和堅固耐用的解決方案和外殼是特定應用解決方案的眼睛和骨架。定制光學透鏡陣列需要與堅固的外殼協調工作，以傳輸我們市場上的微型顯示器產生的水晶般清晰的圖像，而這正是科文斯專業知識的亮點，微型顯示器、光學器件、外殼和固件的配對不斷推動我們的特定應用解決方案的發展，遠遠超出了我們的預期。我們從這裡開始，但正如我所提到的，授權軟體和演算法將推動 Kopin 走向未來。

What is missing from this anatomical pairing is the optical nerve transmits to the brain or the software in this case, but the IC and what the user needs from the display to reduce fatigue, nausea and enhance the user experience. Kopin has the solution to bridge this gap and enable AR and VR marketplaces. We recently patented a revolutionary new display architecture that will be embedded within what we refer to as our neural display.

這種解剖學配對中缺少的是視神經傳輸到大腦或軟體（在這種情況下），但 IC 和用戶需要從顯示器中獲得的信息，以減少疲勞、噁心並增強用戶體驗。 Kopin 的解決方案可以彌補這一差距並支援 AR 和 VR 市場。我們最近獲得了一項革命性的新型顯示架構的專利，該架構將嵌入我們所說的神經顯示器中。

This architecture will feature a non-standard RGB pixel setup as an LED or micro LEDs. But we've added several other elements, including sensors that relay to the firmware, what is happening with the user's situational environment, their ergonomics and their eyes as an example, or the user eyes diluting quickly, implying that there is a state of fight or flight. In that case, the displays brightness should go down quickly in contrast, must increase.

架構將採用非標準 RGB 像素設定作為 LED 或 micro LED。但我們添加了其他幾個元素，包括中繼到韌體的傳感器、用戶的情境環境發生了什麼、他們的人體工學和他們的眼睛為例，或者用戶的眼睛快速稀釋，暗示存在戰鬥狀態或飛行。在這種情況下，顯示器的亮度應該很快就會下降，對比度必須增加。

Conversely, if it buys are of the user are reverting, normally, the display should react in the opposite direction. This complete chain of heart brain optical nerve ions, skin and skeleton provides the framework that we will allow the future realization of augmented reality as yet unfilled unfulfilled promise. Other companies have their own approach to monitoring the status of a user's eyes that rely larger largely on an array of cameras pointed back at the user.

相反，如果使用者正在恢復，通常情況下，顯示器應該以相反的方向做出反應。這個完整的心腦光學神經離子、皮膚和骨骼鏈提供了一個框架，我們將在未來實現擴增實境尚未實現的承諾。其他公司有自己的方法來監控使用者眼睛的狀態，這些方法很大程度上依賴指向用戶的一系列攝影機。

Our approach incorporates sensors within the display itself, which has the benefit of reducing size, weight power consumption, design, complexity and ultimately cost. We will provide more information on this platform and our partnerships to deliver it to the market very soon.

我們的方法將感測器整合到顯示器本身中，這具有減小尺寸、重量、功耗、設計、複雜性和最終成本的優點。我們將提供有關該平台以及我們的合作夥伴關係的更多信息，以便盡快將其推向市場。

Now turning to the third quarter, we announced a follow-on order for one of our IP subassemblies to a department of defense prime contractor that integrates our IPs into a very sophisticated augmented reality module. This $12.8 million follow-on order represents a significant increase in year-over-year volume and revenue from this strategic customer, and we expect significant additional orders shortly for the same product.

現在轉向第三季度，我們宣布向國防部主承包商訂購我們的一個 IP 組件的後續訂單，該承包商將我們的 IP 整合到非常複雜的擴增實境模組中。這筆價值 1,280 萬美元的後續訂單意味著該策略客戶的銷售和收入同比顯著增加，我們預計很快就會有針對同一產品的大量額外訂單。

The order is scheduled for delivery in 2024, but we can deliver earlier if we are able to procure the necessary raw materials. If we receive this expected additional demand, Kopin will potentially ship triple the volume of Weapon Sights within the calendar year of 2024. If so, we do not require additional machinery in our plant, but we may need to take additional steps to prepare and potentially reconfigure the production line and subsequently clean it in this quarter to support the significant increase in volume and demand.

該訂單計劃於 2024 年交付，但如果我們能夠採購到必要的原材料，我們可以提前交付。如果我們收到這項預期的額外需求，Kopin 可能會在2024 年內將武器瞄準具的出貨量增加三倍。如果是這樣，我們的工廠不需要額外的機械，但我們可能需要採取額外的步驟來準備和潛在的重新配置生產線並隨後在本季度進行清理，以支持產量和需求的大幅增長。

These orders are a result of improved customer relationships, program management focus and the dedication, two, improving on-time in-full processes and a great customer who has been very patient and supportive of our transformation plan.

這些訂單是由於客戶關係改善、專案管理重點和奉獻精神的結果，二是按時改進完整流程，以及對我們的轉型計劃非常耐心和支持的偉大客戶。

We also received a $3.4 million follow-on order for our high-brightness liquid crystal display for the F-35 Joint Strike Fighter program. With the F-35 scheduled for production through 2030, we expect additional orders over the program's life.

我們還收到了一份價值 340 萬美元的後續訂單，為 F-35 聯合攻擊戰鬥機專案提供高亮度液晶顯示器。 F-35 計劃於 2030 年生產，我們預計在該專案生命週期內還會有更多訂單。

This follow-on order extends our backlog of scheduled deliveries into the fourth quarter of 2024, providing steady production rates. As we previously stated, the F-35 helmet is scheduled to transition to an LED display. We're also in process of finalizing that required production tooling and contractual agreements to support that transition.

此後續訂單將我們的預定交付積壓時間延長至 2024 年第四季度，從而提供穩定的生產力。正如我們之前所說，F-35 頭盔計劃過渡到 LED 顯示器。我們也正在最終確定支持此過渡所需的生產工具和合約協議。

Now turning to our ongoing armored vehicle program. We've been told by General Dynamics that Kopings weapons site program developed under the set for upgrade will continue as planned since our system reduces size, weight power consumption, while improving accuracy. We are progressing well against our PPAP. milestones and continue to engage with General Dynamics on opportunities for the platform to be integrated into previous upgrade packages. And into light armored vehicle programs as well.

現在轉向我們正在進行的裝甲車計劃。通用動力公司告訴我們，根據升級計劃開發的雪平武器站點計劃將按計劃繼續進行，因為我們的系統減小了尺寸、重量、功耗，同時提高了精度。我們的 PPAP 進展順利。里程碑，並繼續與通用動力公司合作，尋找將該平台整合到先前的升級包中的機會。以及輕型裝甲車項目。

Now I've said in the past, this year's focus is on returning the operation to cash breakeven levels as a milestone of our transformation plan, and we've progressed well against that milestone.

我過去說過，今年的重點是將業務恢復到現金收支平衡水平，作為我們轉型計畫的里程碑，我們在實現這一里程碑方面進展順利。

In Q3, we approach closer to this milestone by improving margins and closely scrutinizing R&D and SG&A spending by continually focused on what we can control and deliver, and we expect to deliver solid margins and the growth our investors look for we now have the contracts in place for solid revenue growth and our goal remains to become a more predictable and profitable firm in the coming year.

在第三季度，我們透過提高利潤率並密切關注研發和銷售、一般行政管理支出，不斷關注我們可以控制和交付的內容，更接近這一里程碑，我們預計將實現穩健的利潤率和投資者所期望的成長，我們現在擁有合約我們的目標仍然是在來年成為一家更具可預測性和盈利能力的公司。

I'll now turn the call over to our CFO, Rich Sneider, to review our results and footprint further detail. over to you Rich.

現在，我將把電話轉給我們的財務長 Rich Sneider，以進一步詳細審查我們的業績和足跡。交給你了，里奇。

Thank you, Michael. Turning to our financial results, total revenues for Q3 2023 for $10.6 million versus $11.7 million in the prior year a 10% decrease in product revenues for the first quarter ended September 30, 2023, $5.5 million compared with $8.3 million in the third quarter ended September 30, 2022.

謝謝你，麥可。轉向我們的財務業績，2023 年第三季的總收入為1,060 萬美元，而上一年為1,170 萬美元；截至2023 年9 月30 日的第一季產品收入下降10%，為550 萬美元，而截至9 月的第三季為830 萬美元2022 年 30 日。

The decrease in product revenues was driven by a $1.7 million or 82% decrease in industrial revenues over the prior year due to continued weakness in the Chinese 3D automated test market. Defense revenues decreased $800,000 or 14% year over year decrease relates to the conclusion of the current purchase order and beginning of the next purchase order.

由於中國 3D 自動化測試市場持續疲軟，工業收入比前一年減少 170 萬美元，即 82%，導致產品收入下降。國防收入減少了 80 萬美元，年比減少 14%，這與目前採購訂單的結束和下一個採購訂單的開始有關。

Research and development revenues were $5.1 million for the third quarter of 2023 compared with $3.5 million for the third quarter of 2022, a 47% increase. Increases and funded R&D was due largely to a $1.9 million order related to a thermal weapon site program.

2023 年第三季的研發收入為 510 萬美元，而 2022 年第三季的研發收入為 350 萬美元，成長 47%。研發經費的增加和資助主要是由於與熱武器站點計劃相關的 190 萬美元訂單。

Cost of goods sold for the third quarter of 2023 was $5.4 million or 99% of product revenues compared with $8 million or 97% for the third quarter of last year, essentially flat. R&D expenses in the third quarter of 2023 was $3.1 million compared with $3.4 million during the third quarter of 2022, a 10% decrease year over year.

2023 年第三季的銷售成本為 540 萬美元，佔產品收入的 99%，而去年第三季的銷售成本為 800 萬美元，佔產品收入的 97%，基本上持平。 2023年第三季的研發費用為310萬美元，而2022年第三季的研發費用為340萬美元，年減10%。

Funded on funded R&D expense for Q3 2023 was $2.3 million as compared to $1.8 million for Q3 2022, which was driven by higher funded R&D revenue. Internal R&D expense for Q3 '23 was $744,000 as compared to $1.6 million for the third quarter of 2022. This reflects the overlap with some rationalization efforts Michael spoke about.

2023 年第三季的資助研發費用為 230 萬美元，而 2022 年第三季的資助研發費用為 180 萬美元，這是由資助研發收入增加所推動的。 23 年第三季的內部研發費用為 744,000 美元，而 2022 年第三季為 160 萬美元。這反映了與麥可談到的一些合理化工作的重疊。

SG&A expenses were $4.8 million for the third quarter of 23 compared to $4.3 million in the third quarter of 2022. The SG&A increases for the three months ended September 30, 2023, as compared to the three months ended September 2022, were primarily due to an increase in legal expenses and noncash stock compensation expenses of approximately $1.7 million for the third quarter of '23, as compared to $500,000 for the third quarter of 2022.

23 年第三季的SG&A 費用為480 萬美元，而2022 年第三季為430 萬美元。與截至2022 年9 月30 日的三個月相比，截至2023 年9 月30 日的三個月的SG&A 增加，主要是由於2023 年第三季的法律費用和非現金股票補償費用增加約 170 萬美元，而 2022 年第三季為 50 萬美元。

These increases were offset by a decrease in compensation and benefit costs of $1.3 million for the third quarter as compared to $2 million for the third quarter of 2022. Other income was approximately $316,000 for the third quarter of '23, compared with an expense of $2.1 million for the third quarter of 2020 to the third quarter of "23, we had foreign currency losses of 14,000 as compared to a loss of 112,000 in Q3 2022.

這些成長被第三季薪資和福利成本減少 130 萬美元所抵消，而 2022 年第三季為 200 萬美元。2023 年第三季的其他收入約為 316,000 美元，而支出為 2.1 美元從2020 年第三季到「23」第三季度，我們的外匯損失為14,000 美元，而2022 年第三季的損失為112,000 美元。

Also in the third quarter of 2022, we recorded noncash mark-to-market impairment on an equity investment of $2 million. To the bottom line and net loss attributed to open during the third quarter was approximately 2.5 million, or $0.02 per share compared with 6.1 million or $0.07 per share for the third quarter of 2022.

同樣在 2022 年第三季度，我們記錄了 200 萬美元股權投資的非現金以市值計價減損。第三季的淨利潤和淨虧損約為 250 萬美元，即每股 0.02 美元，而 2022 年第三季為 610 萬美元，即每股 0.07 美元。

As Michael mentioned in his opening remarks, when removing the litigation costs and non-cash items, we were very close to cash breakeven. Net cash used in operating activities for the nine months ended September 30th, 2023, was approximately $11.8 million. Kopin's cash and markable securities were approximately $21.7 million at September 30, 2023, as compared to $12.6 million at December 31, 2022. We have no long-term debt.

正如邁克爾在開場白中提到的，在扣除訴訟費用和非現金項目後，我們非常接近現金收支平衡。截至 2023 年 9 月 30 日的九個月，經營活動使用的淨現金約為 1,180 萬美元。截至 2023 年 9 月 30 日，Kopin 的現金和可標記證券約為 2,170 萬美元，而截至 2022 年 12 月 31 日為 1,260 萬美元。我們沒有長期債務。

The amounts discussed above are based on our current estimates and listeners should review our Form 10-Q for the quarter ended September 30, 23, for any possible changes and, of course, any additional filings.

上述金額是根據我們目前的估計，聽眾應查看截至 23 日 9 月 30 日的季度的 10-Q 表格，以了解任何可能的變化，當然還有任何額外的文件。

And with that, I'll turn the call back over to Michael for closing remarks.

接下來，我將把電話轉回給邁克爾，讓他作結束語。

Thanks, Rich. As evidenced in our third quarter results, our focus continues to be on strengthening our record order book, achieving higher on-time and full rates, cost controls and making the strategic investments in products and people, which in the aggregate will improve cash flow and provide long-term sustainable profitability and growth. We've also been working very hard on our brand, external marketing and website development efforts and we are ecstatic to announce that we will have a new website to debut very shortly.

謝謝，里奇。正如我們第三季業績所證明的那樣，我們的重點仍然是加強我們創紀錄的訂單，實現更高的準時率和滿率、成本控制以及對產品和人員進行策略性投資，這總體上將改善現金流動和提供長期可持續的盈利能力和增長。我們也非常努力地致力於我們的品牌、外部行銷和網站開發工作，我們很高興地宣布，我們很快就會推出一個新網站。

Looking forward, we are very fortunate to have world-leading and market-making customers who are supporting Kopin during this transformational period. We put tremendous focus on working with our customers to move up the value chain and gain more share of their system and spending.

展望未來，我們非常幸運能夠擁有世界領先的做市客戶在這段轉型時期為 Kopin 提供支援。我們非常注重與客戶合作，向價值鏈上游邁進，並在他們的系統和支出中獲得更多份額。

Furthermore, we have carefully selected new strategic partners and customers to work with and are focused on new opportunities and projects which support our strategic plan to defend our opportunity pipeline has grown substantially in the past few quarters.

此外，我們精心挑選了新的策略合作夥伴和客戶進行合作，並專注於支持我們策略計畫的新機會和項目，以捍衛我們的機會管道在過去幾個季度中大幅成長。

We expect several new customers, partners and project awards and announcements soon, which will add modestly to our order book, but more importantly, will fuel larger returns in the future as these new projects move into production.

我們預計很快就會有一些新客戶、合作夥伴和專案獲獎和公告，這將適度增加我們的訂單，但更重要的是，隨著這些新項目投入生產，未來將帶來更大的回報。

Perhaps the most culturally important transformation is that Kopin remains focused on invention and innovation, but with more focus on cost controls and return on investment. These new inventions discussed today will help drive our innovations that solve our customers' most difficult technical problems and serve as the bedrock of our business, which will fuel our long-term sustainable growth for our employees, our customers and stakeholders.

也許文化上最重要的轉變是 Kopin 仍然專注於發明和創新，但更注重成本控制和投資回報。今天討論的這些新發明將有助於推動我們的創新，解決客戶最困難的技術問題，並成為我們業務的基石，這將為我們的員工、客戶和利益相關者推動我們的長期可持續成長。

Thank you, everyone, for your time today and for showing interest in Kopin. I'd like to thank our employees, customers and stakeholders for their continued hard work and support and dedication.

謝謝大家今天抽出寶貴的時間以及對 Kopin 表現出的興趣。我要感謝我們的員工、客戶和利害關係人的持續辛勤工作、支持和奉獻。

And with that, operator, I'd like to offer some time to take some questions.

因此，接線員，我想提供一些時間來回答一些問題。

(Operator Instructions)

（操作員說明）

Okay. Glenn Mattson, Ladenburg

好的。格倫馬特森，拉登堡

Yes, thanks for taking the questions guys. And congrats on the quarter, especially that strong book-to-bill.

是的，謝謝你們提出問題。恭喜本季度，尤其是強勁的訂單出貨比。

Thanks, John.

謝謝，約翰。

I'm so curious, I guess on the just trying to think about how to how you expect it to kind of play out. I did I realize you have the strong $12.8 million Thermal Weapons order. I saw one of your customers have announced a couple days ago.

我很好奇，我想只是想想想你期望它如何發揮作用。我確實知道你們有價值 1280 萬美元的熱武器訂單。我看到你們的一位客戶幾天前宣布了這個消息。

They got a large purchase order as well. And I imagine that's where the follow-on order that you're talking about might come from. And you mentioned that you may need to do some kind of retooling or whatever the fab.

他們還收到了一份大訂單。我想這就是你所說的後續訂單可能來自的地方。您提到您可能需要進行某種設備重組或其他晶圓廠的改造。

So would that mean downtime in the equipment with that? Would there be like a hiccup in the revenue line and as you ramp that up and you've talked about it maybe in this quarter, but it sounds like it's going to come at some I'm or another. Just can you just flesh out how to best think about that better, Michael?

那麼這是否意味著設備會出現停機？收入線會不會出現問題，當你增加收入時，你可能會在本季度談到它，但聽起來它會出現在我或其他人身上。邁克爾，你能具體說明如何更好地思考這個問題嗎？

Sure. So we are expecting additional orders for our thermal weapon site program within the quarter. And if those orders are received, I believe that we'll have to take some time and reconfigure the fab, clean it and make sure that the bays are operating at the highest levels to be able to extend that throughput. So that's what we're expecting but we have not seen that follow-on orders yet.

當然。因此，我們預計本季內我們的熱武器站點計劃會有更多訂單。如果收到這些訂單，我相信我們將需要花一些時間重新配置晶圓廠，對其進行清潔，並確保晶圓廠以最高水平運行，以便能夠擴大吞吐量。這就是我們所期望的，但我們還沒有看到後續訂單。

Okay. And I guess and so that downtime would lead to some us. Obviously, it's a good problem to have, but the maybe a little bit of a lumpiness in terms of the way the revenue comes through?

好的。我想，停工會對我們造成一些影響。顯然，這是一個好問題，但收入的方式可能有點混亂？

We think so it's possible this quarter, we would have to do it this quarter to make sure that we're running at full optimization in January, but we wouldn't require any additional large capital expense for machinery. It would just be strictly downtime to move some things around and put in the additional jigs and test benches that we would need in a clean room. As you know, once you start moving things around, you want to make sure that you do it and then clean it thoroughly. So that would just be downtime at the fab.

我們認為本季這是可能的，我們必須在本季度做到這一點，以確保我們在一月份完全優化運行，但我們不需要任何額外的大量機械資本支出。移動一些東西並放入無塵室中所需的額外夾具和測試台只是嚴格的停機時間。如您所知，一旦您開始移動物品，您需要確保做到這一點，然後徹底清潔它。所以這只是晶圓廠的停機時間。

Right, right. Okay.

是的是的。好的。

And thanks for that color. And then I just wanted to hear a little bit more about the new display architecture that you touched on. I think it's the first time we heard about it. We use sensors to kind of get feedback from the user to kind of balance out any whatever kind of motion signature type or disruptions is having good news and AR, VR device or whatever.

謝謝你的顏色。然後我只是想聽聽更多有關您提到的新顯示架構的資訊。我想這是我們第一次聽到它。我們使用感測器從用戶那裡獲取回饋，以平衡任何類型的運動特徵類型或乾擾，包括好消息和 AR、VR 設備或其他設備。

So it's an interesting approach. Can you just talk about how you came to kind of come at it from this angle. And I guess there's a lot of different people trying to skin this cat different way so what makes you think that this is the best approach go with just a little more history on how got to this point and how long you think it will take that.

所以這是一個有趣的方法。您能談談您是如何從這個角度來看待這個問題的嗎？我想有很多不同的人試圖以不同的方式給這隻貓剝皮，所以是什麼讓你認為這是最好的方法，再加上一點歷史，說明如何達到這一點以及你認為需要多長時間。

Sure. So I visited many consumer companies here in the United States and just as many defense companies that are all struggling with the same phenomenon, which is the nausea that some of these systems create. And what I learned was that putting perfect displays in front of imperfect eyes. And by the way, my eyes are imperfect from my right to my left.

當然。因此，我訪問了美國的許多消費公司以及許多國防公司，他們都在與同樣的現像作鬥爭，這就是其中一些系統造成的噁心。我學到的是，在不完美的眼前展示完美的顯示器。順便說一句，我的眼睛從右到左都不完美。

So putting two perfect displays in front of my eyes actually makes me feel nauseous. So when we think about AR, we have to make sure that the technology adapts to the human and not force the human to adapt to the technology. And that's why it's not working because essentially the way that you view video specifically and the way I view, video is very different.

所以把兩個完美的顯示器放在我眼前實際上讓我感到噁心。因此，當我們考慮 AR 時，我們必須確保技術適應人類，而不是強迫人類適應技術。這就是為什麼它不起作用，因為本質上你觀看影片的方式和我觀看影片的方式非常不同。

And that's what led us to believe that the display has to change and the display architecture itself isn't going to change that much. But when we looked at the overall system architecture, we realized that there were efficiencies to be made by adding sensors. And if you look at my background, I spent a decade at Analog Devices running a high-performance sensing group.

這讓我們相信顯示器必須改變，而顯示器架構本身不會改變那麼多。但當我們查看整個系統架構時，我們意識到透過添加感測器可以提高效率。如果你看看我的背景，我在 Analog Devices 工作了十年，負責管理一個高效能感測團隊。

There was lots of ways that we can improve that and also some of the covenants that these devices have broken in consumer electronics size, weight, power consumption user adapter station. Those are things that are getting an our adoption rates right now.

我們可以透過很多方法來改進這一點，而且這些設備在消費性電子產品尺寸、重量、功耗、用戶適配器站方面也打破了一些約定。這些都是我們現在採用率很高的。

So we took that challenge. We came up with what we call the neural display, which is in a high-powered display in the software defined and backplane, which when we already have, by the way, many of our backplanes are already software defined. So we have this capability and we think that we can solve the problems in the AR/VR marketplace by those sensor fusion activities that we're embarking upon. Now, we're developing some partner networks and partnerships to help us get there.

所以我們接受了這個挑戰。我們提出了所謂的神經顯示器，它位於軟體定義和背板中的高性能顯示器中，順便說一句，當我們已經擁有時，我們的許多背板已經是軟體定義的。因此，我們擁有這種能力，我們認為我們可以透過我們正在進行的感測器融合活動來解決 AR/VR 市場中的問題。現在，我們正在開發一些合作夥伴網路和合作夥伴關係來幫助我們實現這一目標。

Great. Thanks for (multiple speakers) to look forward to hearing more about it as it progresses.

偉大的。感謝（多位發言者）期待在進展過程中聽到更多相關資訊。

But thanks.

但謝謝。

Kevin Dede, H.C. Wainwright.

凱文·德德，H.C.溫賴特。

Hi Michael, Rich. Thanks for having me on this.

嗨，邁克爾，里奇。謝謝你讓我參與這件事。

(multiple speakers)

（多個發言者）

Yeah, I'd just like to piggyback off Glenn's question, right. I get the neuro display. Tom, appreciate the detail you've offered on it. I understand your prepared remarks noted a patent. Maybe you can talk a little bit about that and maybe you could talk, given your analog device and sensor experience and that sensor capability already our software capability already embedded in the backplane. Maybe you can talk a little bit about including sensors the timeline to prototypes and when you think you might be able to get stuff into people's hands?

是的，我只是想順應格倫的問題，對吧。我得到了神經顯示器。湯姆，感謝您提供的詳細資訊。我了解您準備好的評論指出了一項專利。也許你可以談談這一點，也許你可以談談，考慮到你的類比設備和感測器經驗以及感測器功能已經我們的軟體功能已經嵌入到背板中。也許您可以談談將感測器納入原型的時間表，以及您認為什麼時候可以將東西送到人們手中？

Three questions. Thanks, Kevin. So I'll be focused on this in two ways to answer your question number one, the up the architecture itself is has been patented.

三個問題。謝謝，凱文。因此，我將透過兩種方式集中精力來回答您的第一個問題，即架構本身已獲得專利。

We have five patents submitted currently. There's a six patent that we are submitting shortly, and we believe that those patents are going to be the foundation for where the neural display is going to come from. We've been working with one very large micro display company, and we're looking for support from them.

目前我們已提交五項專利。我們很快就會提交六項專利，我們相信這些專利將成為神經顯示的基礎。我們一直在與一家非常大的微型顯示器公司合作，我們正在尋求他們的支持。

We're trying to create an organization with those folks for the consumer market. We're also looking at go-to-market activities with the defense market and with a specific office in the United States Department of Defense to enable this technology as well.

我們正在嘗試與這些人一起創建一個針對消費市場的組織。我們也正在考慮與國防市場以及美國國防部的一個特定辦公室進行市場推廣活動，以實現這項技術。

Next year, we're looking at potential funding lines from not only our consumer companies and customers. We're also looking at potential funding from USD applications as well as potentially some congressional money that we've applied for. So, that's where the money is going to come from to support this technology development and when we see the money flow, how quickly we can get this in the hands of folks specifically in the consumer marketplace where we have tremendous demand currently.

明年，我們不僅會從我們的消費公司和客戶那裡尋找潛在的資金來源。我們也正在考慮來自美元申請的潛在資金以及我們已經申請的一些國會資金。因此，這就是支持這項技術開發的資金來源，當我們看到資金流動時，我們可以多快地將資金送到人們手中，特別是目前我們有龐大需求的消費市​​場。

Okay. Maybe I need to take a different tact on of questioning line, Michael. So please excuse me.

好的。也許我需要在提問時採取不同的策略，麥可。所以請原諒。

Sure.

當然。

How obviously you feel comfortable with technology development, but that how do you think we should look at timelines for you to get a display that incorporates your sensors and some might be able to serve as physical evidence for our customers?

您對技術開發的感覺有多明顯，但是您認為我們應該如何考慮您獲得包含感測器的顯示器的時間表，並且有些感測器可能能夠作為我們客戶的實體證據？

Yes, I think we have a pretty targeted approach in that area. I'm going to defer the question for proof-of-concept samples until a few more NDAs get signed.

是的，我認為我們在該領域有一個非常有針對性的方法。我將推遲概念驗證範例的問題，直到簽署更多保密協議。

Okay, fair enough. Fair enough. Thank you.

好吧，很公平。很公平。謝謝。

I wish I could say I wish I could give you better answer that, Kevin, but (inaudible) the first are now --

我希望我能說我希望能給你更好的答案，凱文，但（聽不清楚）現在第一個是——

Well, it's just incredibly exciting. And I don't know of anyone that's approaching to paraphrase Glenn's skinning the cat this way. So congratulations on that development.

嗯，這真是太令人興奮了。我不知道有誰會這樣解釋格倫剝貓皮。所以要祝賀這項發展。

Thank you.

謝謝。

Pretty strong sequential growth in research and development revenue and up markedly from sort of the past five or six quarter trend. And I was wondering if you could I could talk to that a little bit. Is that multiple projects a big lump in one particular project?

研發收入連續成長相當強勁，與過去五、六個季度的趨勢相比明顯上升。我想知道你是否可以談談這個問題。多個項目在一個特定項目中是否是一個大問題？

Yeah, Kevin, as we mentioned in our prepared remarks, so we delivered on a $1.9 million contract in the quarter. So it was it fairly substantial.

是的，凱文，正如我們在準備好的發言中提到的那樣，我們在本季度交付了一份 190 萬美元的合約。所以這是相當可觀的。

Okay. So I guess you met all your deliverable specifications and you can recognize revenue. Does that mean that projects done?

好的。所以我猜您滿足了所有可交付的規格，並且可以確認收入。這是否意味著專案已經完成？

Yeah.

是的。

Okay. Can you give us a ballpark on, I guess maybe other sort of the span of different DoD development projects you have that might go from our So full production next year?

好的。您能否給我們一個大致的了解，我想也許您擁有的其他不同國防部開發項目可能會在明年全面生產？

Well, I'm not sure I understand the question, but I mean, FWSI F-35. All those were several years in development and [LRIB] on the working on the color LED program that's already been two or three years in the making and so on and so forth. So this they're fairly long development cycles.

好吧，我不確定我是否理解這個問題，但我的意思是，FWSI F-35。所有這些都經過了數年的開發，[LRIB] 致力於彩色 LED 項目的開發，該項目已經醞釀了兩三年，等等。所以他們的開發週期相當長。

Okay. --

好的。 --

And also, Kevin, just to add some color to that. I do expect our armored take or armored vehicle program to move through people next year, and we expect orders next year on that we want to start shipping in terms of production. So once it gets out of people, it basically goes into low-rate initial production pretty much right away. So we're expecting orders for that in 2024. I don't know if we'll be able to deliver in calendar '24. But that's the goal.

還有，凱文，只是為了增加一些色彩。我確實希望我們的裝甲車或裝甲車計劃明年能夠通過人員，我們預計明年的訂單將開始生產。因此，一旦它離開人們，它基本上會立即進入低速初始生產。所以我們預計 2024 年會有訂單。我不知道我們是否能夠在 24 日曆年交貨。但這就是目標。

Would that be a press? I mean that's exactly where my next line of questioning was going. Michael, what would that be, I guess moving from people to LRIP, is that in the event you might press release indeed. Okay, because you've got I if I remember the June call you mentioned that you should have better insight into the development of that project later this year, which sort of thinking is now, was there are some delay there? Or is it just bureaucracy ?

那會是新聞嗎？我的意思是，這正是我接下來要提問的地方。邁克爾，我想從人們轉向 LRIP，如果你真的可以發布新聞稿的話。好的，因為你已經知道了，如果我記得你提到的六月份的電話，你應該對今年晚些時候該專案的開發有更好的了解，現在是哪種想法，是否有一些延遲？或者這只是官僚主義？

So set for upgrade has been effectively cancelled my understanding and General Dynamics has been gracious enough to speak with us and provide details on what their plans are, which I can't get into on this call. However, what I can say is we are continuing the path process. They're very excited about the technology.

因此，升級的設置實際上已經取消了我的理解，通用動力公司非常慷慨地與我們交談，並提供了他們計劃的詳細信息，但我在這次電話會議上無法透露。然而，我可以說的是我們正在繼續這條道路。他們對這項技術感到非常興奮。

You're talking about new platforms and old upgrades that we could potentially utilize this technology for. So we're all ahead full steam. So that's a that was great news. And that's that was what I was worried about in the last call is I wasn't sure what the set for upgrade schedule is going to look like, although I couldn't say anything, but I can now. So that was the reason for let's say, the lack of information on the last call.

您正在談論我們可能會利用這項技術的新平台和舊升級。所以我們全速前進。所以這是個好消息。這就是我在上次通話中所擔心的，我不確定升級時間表會是什麼樣子，雖然我不能說什麼，但我現在可以了。這就是上次通話中缺乏資訊的原因。

Okay. Okay.

好的。好的。

So that helps.

所以這有幫助。

Yeah, yeah, yeah.

耶耶耶。

A couple of more, if I may be on this transformation that you've been working so hard on I would have thought would begin to show in product margin, but it's not so evident and maybe you could help the free. I've reset my expectations on timing for sure.

還有一些，如果我可能正在進行您一直在努力進行的這種轉變，我以為會開始在產品利潤中體現出來，但它並不那麼明顯，也許您可以幫助免費。我肯定已經重新調整了對時間的期望。

So far, so Kevin, I think it's important to understand that we have multiple sources of revenue and but we have limited resources. And so it's always a guns and butter bad pun analogy. If you look if you take our sources of revenue from product revenue and funded R&D and you subtract cost of sales and funded R&D expense our gross margins this year, year to date is about $7.8 million, which is 150% increase over the prior year.

到目前為止，凱文，我認為重要的是要了解我們有多種收入來源，但我們的資源有限。所以這總是一個槍支和黃油的糟糕雙關比喻。如果你看看我們的收入來源來自產品收入和資助研發，然後減去銷售成本和資助研發費用，我們今年的毛利率約為 780 萬美元，比前一年增長了 150%。

So that's how we don't just look at the gross margin of the product because in many respects, the fab is dual function. And so that's one of the things it's got to be done with that. I manage both aspects of it. They're all running through the same facility. We have an engineering group. So that's how we're looking at it. The overall absolute dollars has increased by 150% over the prior year nine months.

因此，我們不能只看產品的毛利率，因為在很多方面，晶圓廠都是雙重功能性的。這就是必須要做的事情之一。我管理它的兩個面向。他們都經過同一個設施。我們有一個工程團隊。這就是我們的看法。整體絕對美元比去年 9 個月增加了 150%。

And I'll add to that, Kevin, it's an important question. And one of the things that we've been messaging is our old existing contracts and where we're sole source and we're on firm fixed prices on those are either running out or ending, and we're replacing them with new contracts with new pricing that is more advantageous for Kopin.

我要補充一點，凱文，這是一個重要的問題。我們一直在傳達的訊息之一是我們現有的舊合同，我們是唯一的來源，我們對那些即將用完或結束的合同實行固定的固定價格，我們將用新合同取代它們新的定價對Kopin來說更加有利。

And I think you'll see a gross margin lift there because we did have some conversations with our customers around price increases due to inflation due to scope creep due to lots of different things that have happened over the course of the last few years. And as we reported in December in our remarks today is that we did increase prices on several programs

我認為你會看到那裡的毛利率有所提升，因為我們確實與客戶進行了一些對話，討論了由於過去幾年發生的許多不同事情導致的範圍蔓延導致的通貨膨脹導致的價格上漲。正如我們在 12 月今天的演講中所報導的那樣，我們確實提高了多個項目的價格

Past reports. So thank you, gentlemen. The um, the other thing I'm wondering, I guess just from sort of a cash use perspective, was that your inventories are up and I'm just looking sequentially, Rich, inventories are up, contract assets are up, and I'm wondering if you're building in advance of the FWSI and the F-35 production?

過去的報道。謝謝你們，先生們。嗯，我想知道的另一件事，我想從現金使用的角度來看，是你的庫存增加了，我只是按順序查看，里奇，庫存增加了，合同資產增加了，我想知道你們是否在FWSI 和F-35 生產之前進行建造？

Yeah. So the contract assets, so, we completed as you saw, funded R&D revenue was up in the quarter. We completed. So that's associated with the receivables and that we need to collect on those assets. But yes, I mean, inventory is up because of the projected growth for next year.

是的。因此，如您所見，合約資產，我們完成的資助研發收入在本季度有所增長。我們完成了。這與應收帳款相關，我們需要收集這些資產。但是，是的，我的意思是，由於明年的預計增長，庫存增加了。

Okay.

好的。

The reality is lead times are still out there for many of the parts that we need FPGAs and things like that. And so now we're getting in what we can when we can get it, make sure we have full production.

現實情況是，我們需要 FPGA 之類的許多零件的交貨時間仍然存在。因此，現在我們正在盡我們所能，確保我們能夠全面生產。

Okay. Gave us an update on Abrams, an update on FWSI and an update on the F-35, but how about the common helmets mounted display odd?

好的。給我們提供了艾布拉姆斯的更新、FWSI 的更新和 F-35 的更新，但是常見的頭盔安裝顯示器怎麼樣？

Yeah, I mean the [LPD] program just keeps rolling along on the --

是的，我的意思是 [LPD] 計劃一直在推進——

Okay, as are those things, what is contributing to your backlog and how would you compare your backlog at the end of September versus the end of June?

好的，正如這些事情一樣，是什麼導致了您的積壓？您如何比較 9 月底和 6 月底的積壓？

And so it's a really interesting question. We have historically been very conservative and said that backlog as far as our understanding of definition is that it is on a noncancelable. And so to the extent that we have purchase orders, which historically we've allowed companies to move to the right or frankly, never we don't never take delivery. We don't include those in backlog.

這是一個非常有趣的問題。我們歷來非常保守，並表示，就我們對定義的理解而言，積壓是不可取消的。因此，就我們有採購訂單而言，歷史上我們允許公司向右移動，或者坦白說，我們從來不提貨。我們不將這些納入待辦事項中。

But if you look at our footnotes, which should be filed in our 10-K tomorrow, you'll see performance obligations are up, which is a proxy for backlog, but it's that number technically, we have more orders than we're actually showing there. And but as I said, we don't put things there that, frankly, some of them we might allow someone to cancel. So it's not exactly the right number

但是，如果你看一下我們的腳註（明天應該在我們的10-K 中提交），你會發現履約義務增加了，這是積壓的代表，但從技術上講，這是這個數字，我們的訂單比實際多。顯示在那裡。但正如我所說，坦白說，我們不會將其中一些內容放在那裡，我們可能會允許某人取消。所以這個數字並不完全正確

Because that you say they're up that's up versus June versus not September 22?

因為你說他們漲了，是 6 月上漲還是 9 月 22 日上漲？

Yeah.

是的。

Okay. Well, thank you, gentlemen, for indulging me. I'm sorry if I pushed it too far, but I really appreciate working with me on it. Thank you from Kevin.

好的。好吧，先生們，謝謝你們對我的包容。如果我做得太過分，我很抱歉，但我真的很感激與我一起努力。謝謝凱文。

No problem. Thank you.

沒問題。謝謝。

Victor Santiago, Stifel.

維克多·聖地亞哥，斯蒂菲爾。

Hi, guys, and thank you for taking my questions and congrats on the quarter. I'm just on the on the nice gross margin improvement. Was there anything in particular that drove the sequential improvement? Or is that just a function of your ongoing improved execution? And also, is that level sustainable on a go-forward basis or could we see that fluctuate a bit in the near term?

大家好，感謝您回答我的問題，並祝賀本季。我只是在關注毛利率的良好改善。有什麼特別的因素推動了連續的改進嗎？或者這只是您不斷改進的執行力的結果？而且，這個水平在未來的基礎上是否可持續，或者我們是否會看到它在短期內略有波動？

It is a function of price increase and we have been able to drive raw materials costs down a bit. They will fluctuate based on mix because, as Michael indicated, some products we're still rolling out and we don't have the new prices associated with them yet. So we probably won't really achieve good stability until first quarter of next year. And then after that, we would expect to see progression consistent progression quarter to quarter.

這是價格上漲的函數，我們已經能夠稍微降低原料成本。它們會根據組合而波動，因為正如邁克爾指出的那樣，我們仍在推出一些產品，而且我們還沒有與之相關的新價格。因此，我們可能要到明年第一季才能真正實現良好的穩定性。之後，我們預計每個季度都會看到一致的進展。

Got it. Thank you.

知道了。謝謝。

And then I'm just I guess lastly on the a couple of your updated thoughts on the our updated thoughts on timeline of the ongoing lawsuit. Are you guys still expecting similar elevated legal expenses in Q4 and into Q1? And then also is the trial still set for Q1?

最後，我想談談您對我們對正在進行的訴訟的時間表的最新想法的一些最新想法。你們是否仍預期第四季和第一季的法律費用會出現類似的上漲？ Q1 的審判是否仍將進行？

Yes. The trial is currently set for late January, there's a couple of events that will occur in the early part of December. And so we may see a slight elevation in expense in December, not to the level that we had in Q2 though and then you know, frankly in eight, 10 weeks, hopefully we have a very positive answer.

是的。目前審判定於 1 月下旬進行，有幾項活動將在 12 月初進行。因此，我們可能會看到12 月的費用略有上升，但不會達到第二季度的水平，然後你知道，坦白說，在八週、十週內，希望我們能得到一個非常積極的答案。

Got it. Thank you. That's all I had. Thanks, guys.

知道了。謝謝。這就是我所擁有的一切。多謝你們。

Thanks, Richard.

謝謝，理查。

There are no further questions at this time. I'll now turn the call back over to Michael Murray for any closing remarks.

目前沒有其他問題。現在我將把電話轉回給邁克爾·默里，請他發表結束語。

Thank you, operator, to everyone that joined, thank you very much for your interest in Kopin to our friends, family, investors, customers, happy holidays, and we look forward to our next call. Take care.

謝謝接線員，感謝所有加入的人，非常感謝您對Kopin的關注，祝我們的朋友、家人、投資者、客戶，節日快樂，我們期待我們的下一次通話。小心。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。