Kopin Corp (KOPN) 2023 Q4 法說會逐字稿

Good afternoon, everyone.

大家下午好。

Welcome to the Kopin Corporation fourth quarter and full year 2023 earnings conference call.

歡迎參加 Kopin Corporation 第四季和 2023 年全年收益電話會議。

(Operator Instructions) Also, today's call is being recorded, and I will be standing by if anyone should need any assistance.

（操作員說明）另外，今天的通話正在錄音，如果有人需要任何幫助，我將隨時待命。

Now at this time, I'll turn things over to Mr. Quinn Callanan, Investor Relations.

現在這個時候，我將把事情交給投資者關係部門的 Quinn Callanan 先生。

Please go ahead, sir.

請繼續，先生。

Thank you.

謝謝。

Good afternoon, everyone.

大家下午好。

Before we get started, I'd like to remind everyone that during today's call, taking place on Thursday, March 14, 2024 we will be making forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.

在開始之前，我想提醒大家，在今天 2024 年 3 月 14 日星期四舉行的電話會議中，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 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.

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。

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.

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準確的，並且不能保證結果將會實現。

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

該公司不承擔更新今天電話會議中所做前瞻性陳述的義務。

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 reconciliation in the Company's SEC filings and press releases.

此外，可能會提及某些非普遍接受的會計原則或非 GAAP 衡量標準，您應參考本公司向 SEC 提交的文件和新聞稿中的適當免責聲明和對帳。

Kopin Corporation's Chief Executive Officer, Michael Murray, will begin today's call with an overview of Kopin's progress within the company strategy.

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。

Following Michael, Kopin's CFO, Richard Sneider will review the company's fourth quarter and full year 2023 returns.

繼 Kopin 財務長 Michael 之後，理查德·斯奈德 (Richard Sneider) 將審查該公司第四季度和 2023 年全年的回報。

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.

謝謝你，奎因。

Good afternoon to everyone, and welcome to our fourth quarter and full year 2023 earnings call.

大家下午好，歡迎參加我們的 2023 年第四季和全年財報電話會議。

I'm very proud of the significant progress.

我對取得的重大進展感到非常自豪。

We have accomplished this past year on our transformation plan and achieving our fifth consecutive positive book-to-bill quarter, enabling over $55 million in backlog for 2024.

去年，我們完成了轉型計劃，並實現了連續第五個季度的訂單出貨比增長，從而使 2024 年的積壓訂單超過 5500 萬美元。

As mentioned on our third quarter results call, we were expecting a new configuration Weapon Sight order in late December, which would significantly increase our demand for the year.

正如我們在第三季業績電話會議上提到的，我們預計 12 月底會有新配置的武器瞄準器訂單，這將顯著增加我們今年的需求。

And if received, we would need to take actions within the quarter to prepare the plant for such an increase in demand.

如果收到，我們需要在本季內採取行動，讓工廠為應對需求的成長做好準備。

Based on our understanding that our recently announced $20.5 million order would be received in early 2024.

據我們了解，我們最近宣布的 2050 萬美元訂單將於 2024 年初收到。

We took the decision to extend our holiday shutdown period, which impacted Q4 revenues so that we could install new automation equipment, retool and clean the plant to accommodate the anticipated significant increase in production and to improve production flow for long-term profitability, which we'll provide more information on the quarter results shortly.

我們決定延長假期停工期，這影響了第四季度的收入，以便我們可以安裝新的自動化設備、重組和清潔工廠，以適應預期的產量大幅增長，並改善生產流程以實現長期盈利能力，我們我們將很快提供有關季度業績的更多資訊。

During my first earnings call as CEO last March, I referenced our strategic initiatives for long-term success, and I'll update each of these initiatives briefly in more detail and in our upcoming shareholder letter.

去年三月，在我作為執行長的第一次財報電話會議上，我提到了我們的長期成功策略舉措，我將在我們即將發出的股東信中更詳細地簡要更新每項舉措。

Turning to our first strategic initiative building the backlog.

轉向我們建立積壓工作的第一個策略舉措。

During the fourth quarter of 2023, we booked follow-on orders of approximately $6 million for our Thermal Weapon IP's assemblies as well as several smaller orders, which resulted in a book-to-bill of approximately 1.2:1 for the fourth quarter.

在 2023 年第四季度，我們為熱武器 IP 組件預訂了約 600 萬美元的後續訂單以及幾個較小的訂單，這導致第四季度的訂單出貨比約為 1.2:1。

As mentioned, our fifth consecutive positive book-to-bill quarter $6 million order was a follow-on and a $20.5 million order is a new configuration that we received this quarter and represent a significant increase in year-over-year volume and future revenue and brings our current backlog level to $55 million.

如前所述，我們連續第五個季度的訂單出貨量正值600 萬美元訂單是後續訂單，而2050 萬美元訂單是我們本季度收到的新配置，代表著同比銷量和未來收入的顯著成長並使我們目前的積壓水準達到 5500 萬美元。

We believe this is a record level of orders for the last 10 years.

我們相信這是過去 10 年來創紀錄的訂單水準。

Furthermore, we do anticipate additional follow-on orders for both of these products and other products as well in 2024.

此外，我們預計 2024 年還會有這些產品和其他產品的額外後續訂單。

Based on this current demand, Kopin will potentially ship triple the volume of Weapon Sights within the calendar year of 2024.

根據目前的需求，Kopin 可能會在 2024 年將武器瞄準具的出貨量增加三倍。

We also have continued to acquire inventory into the first quarter to service these larger contracts that will go into production in 2024.

我們也在第一季繼續採購庫存，為這些將於 2024 年投入生產的大型合約提供服務。

Now turning to our second strategic initiative focused on our fab-lite strategy.

現在轉向我們的第二個策略舉措，重點是我們的輕晶圓廠策略。

We've also made significant progress in the fourth quarter and in 2023.

我們在第四季和 2023 年也取得了重大進展。

As a reminder, Kopin is the only U.S. manufacturer of the human centric AR and VR applications, specific optical solutions and micro displays that are used primarily to provide situational awareness for warfighters surgeons and spatial computing device users.

需要提醒的是，Kopin 是美國唯一一家生產以人為本的AR 和VR 應用程式、特定光學解決方案和微型顯示器的製造商，這些應用程式主要用於為作戰人員、外科醫生和空間運算設備使用者提供態勢感知。

You can find our solutions and weapon sights, armored vehicles, surgeons, head-mounted display and pilot helmet visors to support the demanding needs of our individual markets between consumer medical, industrial and defense customers.

您可以找到我們的解決方案和武器瞄準具、裝甲車、外科醫生、頭戴式顯示器和飛行員頭盔護目鏡，以滿足消費醫療、工業和國防客戶之間各個市場的苛刻需求。

We have taken significant steps throughout 2023 to expand our LED and micro LED technology developments to partners outside of China, which are US DoD approved and in regions.

我們在 2023 年採取了重大步驟，將我們的 LED 和 micro LED 技術開發擴展到中國以外的合作夥伴，這些合作夥伴已獲得美國國防部的批准和地區合作夥伴。

But our data was supportive building fleet this transition this year.

但我們的數據支持今年的轉型建設機隊。

This new strategy allows Kopin to manufacture our backplane technology and deposit either LCD or LED micro LEDs or L. costs, either internally or externally for costs, security of supply and performance been efficient, beneficial to the end customers.

這項新策略使 Kopin 能夠製造我們的背板技術，並在內部或外部降低 LCD 或 LED micro LED 或 L. 成本，確保供應安全和性能高效，對最終客戶有利。

An early success factor of this strategy was announced on Wednesday this week when we announced our European USDODO. lead partner was able to achieve brightness performance far higher than that of our consumer vendor, resulting in an old LED display with a lifetime brightness performance of more than 20,000 candelas per meter squared at lower power consumption, which is market leading and enabling.

這項策略的早期成功因素是在本週三我們宣布歐洲 USDODO 時宣布的。領先合作夥伴能夠實現遠高於我們消費性供應商的亮度性能，從而使舊款 LED 顯示器的使用壽命亮度性能超過每平方米 20,000 坎德拉，功耗更低，處於市場領先地位。

Our third strategic initiative is focused upon visual acuity systems and head-mounted display technology developments as the technology of micro displays expands from AMLCD. to LED, and now it's a micro LED.

隨著微顯示器技術從 AMLCD 擴展到視敏度系統和頭戴式顯示器技術，我們的第三個策略舉措重點在於視力系統和頭戴式顯示器技術的開發。到 LED，現在是 Micro LED。

Our industry has reached an inflection point due to the size, weight cost, usability and neurological issues with ARVR. systems that remain unsolved and are gaining adoption rates, Kopin can and will solve some of these issues.

由於 ARVR 的尺寸、重量成本、可用性和神經系統問題，我們的產業已經達到了轉折點。對於尚未解決且正在獲得採用率的系統，Kopin 可以而且將會解決其中一些問題。

And last quarter we announced we are working with a software working on a software defined AI enabled backplane called our neural display.

上個季度，我們宣布我們正在開發一款軟體，該軟體可用於軟體定義的人工智慧支援背板，稱為神經顯示器。

The neural display architecture features embedded sensor pixels within the screen focused on the user's eyes, providing immediate feedback to the AI. software powering the display.

神經顯示架構在螢幕內嵌入感測器像素，聚焦於使用者的眼睛，為人工智慧提供即時回饋。為顯示器供電的軟體。

The feedback from these pixel sensors and powers the software to quickly adjust the contracts for the brightness of the display to accommodate changes in the user's vision, neurological state and their environment.

這些像素感測器的回饋使軟體能夠快速調整顯示器的亮度合同，以適應用戶視覺、神經狀態及其環境的變化。

This is what we mean when we say we are providing the knobs to the users through software to allow the technology to adapt to their personal preference.

這就是我們說我們透過軟體向使用者提供旋鈕，讓科技適應他們的個人喜好的意思。

The neural display will empower users to capitalize on the full capabilities of our displays.

神經顯示器將使使用者能夠充分利用我們顯示器的全部功能。

The primary benefit of this design approaches approach.

這種設計方法的主要好處是。

Our user comfort decreased weight by removing cameras in the system, adaptive eye-tracking and dynamic vision control and lower system power consumption.

透過移除系統中的相機、自適應眼動追蹤和動態視覺控制以及降低系統功耗，我們的用戶舒適度減輕了重量。

We believe this new design will resolve many of the flaws inherent in AR or VR headsets on the market today in consumer and military applications like this is primarily due to the ubiquitous human response to fight or flight scenarios.

我們相信，這種新設計將解決當今市場上消費和軍事應用中 AR 或 VR 耳機固有的許多缺陷，例如這主要是由於人類對戰鬥或飛行場景的普遍反應造成的。

Video induced nausea next strain caused by cancer liver effects, the forward-facing weight and battery sizes required due to high power consumption of the current headsets for neural display will allow for smaller, more comfortable headsets where the user can encounter a variety of scenarios while staying engaged specifically in high stress environments found in defense and spatial computing markets.

影片引起的噁心、癌症肝臟效應引起的下一個壓力、由於當前神經顯示耳機的高功耗而需要的前向重量和電池尺寸將允許更小、更舒適的耳機，用戶可以同時遇到各種在場景的情況下使用。專注於國防和空間計算市場中的高壓力環境。

Furthermore, throughout the year and as evidenced in our recent contract awards, we've been focusing on widening our customer base and taking a greater share of our customer spending by adopting the application-specific optical solution strategy.

此外，在這一年中，正如我們最近授予的合約所證明的那樣，我們一直致力於擴大我們的客戶群，並透過採用特定於應用的光學解決方案策略來佔據更大的客戶支出份額。

Indeed, we will still sell individual displays and we are winning sockets from competitors who have been struggling of late, but our core competency and differentiation is in delivering a fully integrated and optimized solution for our customers' unique applications.

事實上，我們仍然會銷售單獨的顯示器，並且我們正在從最近苦苦掙扎的競爭對手那裡贏得插座，但我們的核心競爭力和差異化在於為客戶的獨特應用提供完全整合和優化的解決方案。

This is evidenced in our success delivering our CR3 module to market for our partner HMDMD. for assisted surgery customers.

我們成功地將 CR3 模組推向合作夥伴 HMDMD 的市場就證明了這一點。為輔助手術客戶。

The design was completed entirely by Kopin with user inputs from HMDMD.

設計完全由 Kopin 根據 HMDMD 的使用者輸入完成。

It is elegant, lightweight and brilliant to use we continue to work on similar applications with several new customers in the head-mounted display market, specifically in spatial computing and defense applications.

它優雅、輕巧、使用起來非常出色，我們繼續與頭戴式顯示器市場的幾個新客戶合作開發類似的應用程序，特別是在空間計算和國防應用程式方面。

Recently, we demonstrated our off the visor heads up display with Wilcox, which will we expect it to be a new source of revenue for the Company.

最近，我們與 Wilcox 一起展示了我們的遮陽板平視顯示器，我們預計它將成為該公司新的收入來源。

We expect to announce more of these fully integrated systems and new customers to Kopin shortly.

我們預計很快將向 Kopin 宣布更多此類完全整合的系統和新客戶。

While we continue to drive innovation and research into our advanced display architectures as well, that are also being successfully funded like the recent award from the Navy as an example, as the military adopts more integrated visual acuity systems, Kopin is uniquely positioned as the only U.S. owned micro display manufacturer that produces four different types of micro displays, a fully integrated optical design capability associated drive electronics capability and now a software defined AI enabled architecture.

在我們繼續推動先進顯示架構的創新和研究的同時，這些架構也成功獲得了資助，例如最近獲得的海軍獎項，隨著軍隊採用更加集成的視敏度系統，Kopin 處於獨特的地位，是唯一一家美國擁有的微型顯示器製造商，生產四種不同類型的微型顯示器、與驅動電子功能相關的完全整合的光學設計能力，以及現在的軟體定義的人工智慧支援架構。

Throughout 2022, we've been working with our government and military advanced research labs to create technology roadmaps and funding projects, which will increase our technology readiness level and mature our technology to intersect next-generation technology integration and insertion efforts.

在整個 2022 年，我們一直在與政府和軍事高級研究實驗室合作，制定技術路線圖和資助項目，這將提高我們的技術準備水平並使我們的技術成熟，以貫穿下一代技術整合和插入工作。

We expect to announce more progress on these initiatives throughout 2024.

我們預計將在 2024 年宣布這些措施以取得更多進展。

Now I've said in the past 2023, we were focusing on improving our on-time in-full or OTIF rate and delight our customers throughout the year.

我說過，在過去的 2023 年，我們的重點是提高我們的準時率或 OTIF 率，並讓我們的客戶全年滿意。

We have continually improved in this strategic initiative area and have moved from a 63% on-time and full rate to 84% across the Company in under one year.

我們在這一策略舉措領域不斷改進，不到一年的時間，全公司的準時率和滿載率就從 63% 提高到了 84%。

Indeed, a tremendous improvement, but there's still more to accomplish.

確實，這是一個巨大的進步，但仍有更多工作要做。

And we remain focused on reaching and surpassing our goals in this critical area, complementary to our on-time in-full initiative, returning the operation to a cash breakeven level as a milestone of our transformation.

我們仍然專注於實現並超越這一關鍵領域的目標，與我們按時全面啟動的計劃相輔相成，使營運恢復到現金收支平衡水平，作為我們轉型的里程碑。

We came very close in both in the second and third quarters when expenses related with the lawsuit and non-cash expenses are removed.

當刪除與訴訟相關的費用和非現金費用時，我們在第二季和第三季都非常接近。

We achieved this milestone by improving margins and closely scrutinizing R&D and SG&A spending with continued efforts on what we can control and deliver and deliver solid margins and growth.

我們透過提高利潤率、密切審查研發和銷售、一般行政費用支出、持續努力控制和實現穩健的利潤率和成長，實現了這一里程碑。

Our investors look for the contracts in place to return to revenue growth in 2024 and expect growth of 20% or greater this year.

我們的投資者希望簽訂的合約能夠在 2024 年恢復收入成長，並預計今年的收入成長將達到 20% 或更高。

And our goal remains to become a more profitable company this year.

今年我們的目標仍然是成為一家盈利能力更強的公司。

Lastly, and most importantly, our one Kopin cultural initiative and talent strategy made a significant progress this year due to the hard work of our Board of Directors, the leadership team and all of our Kopin team members, we were able to retain the best talent within Kopin, attract new talent with the skill sets.

最後也是最重要的是，由於我們的董事會、領導團隊和所有 Kopin 團隊成員的辛勤工作，我們的 Kopin 文化舉措和人才戰略今年取得了重大進展，我們能夠留住最優秀的人才在Kopin 內部，吸引具有技能的新人才。

We require for growth and refocus the Company into an organization focused on execution.

我們需要成長，並將公司重新定位為專注於執行的組織。

We celebrated our new direction, our new organization and strategy this quarter with the announcement of our new brands our new logo and website.

本季我們宣布了新品牌、新商標和網站，慶祝了我們的新方向、新組織和策略。

Our team at Kopin continues to improve, win and grow, and it will be the talented people of Kopin that continued to execute on these initiatives this year.

我們 Kopin 的團隊不斷改進、獲勝和成長，今年將繼續執行這些舉措的是 Kopin 的優秀人才。

I'll now turn the call over to Rich, our CFO, to review our results in further detail.

現在我將把電話轉給我們的財務長 Rich，以進一步詳細審查我們的結果。

Over to you Rich.

交給你了，里奇。

Thank you, Michael.

謝謝你，麥可。

Turning to our financial results for the fourth quarter total revenues from Q4 2023 for $8.6 million versus $12.2 million for the prior year, a 30% decrease year over year.

轉向我們第四季的財務業績，2023 年第四季的總收入為 860 萬美元，而上年同期為 1,220 萬美元，年減 30%。

Product revenues for the fourth quarter ended December 30, 2023, were $6.8 million compared to $8.7 million for the fourth quarter ended December 31, 2022.

截至2023年12月30日的第四季產品營收為680萬美元，截至2022年12月31日的第四季產品營收為870萬美元。

The decrease in product revenues was a result of lower defense and industrial power revenues, which decreased by $1 million and $600,000 respectively, year over year.

產品收入下降的原因是國防和工業電力收入下降，分別較去年同期減少 100 萬美元和 60 萬美元。

The lower defense revenues were in part due to planned refurbishing of the clean room during the last weeks of December, we discussed in our third quarter financial performance call.

我們在第三季財務業績電話會議中討論了國防收入下降的部分原因是 12 月最後幾週計劃對無塵室進行翻新。

Lower industrial revenues is a trend we saw throughout 2023 due to weakness in the Chinese market.

由於中國市場疲軟，我們在 2023 年看到工業收入下降的趨勢。

In the fourth quarter of 2023, funded research and development revenues decreased by $1.6 million for 47% due to the completion of several programs.

2023 年第四季度，由於多個項目的完成，受資助的研發收入減少了 160 萬美元，下降了 47%。

Cost of revenues for the fourth quarter of 2023 was $7.2 million or 106% of net product revenues compared to $8.9 million or 103% of net product revenues for the fourth quarter of 2022.

2023 年第四季的收入成本為 720 萬美元，佔產品淨收入的 106%，而 2022 年第四季的收入成本為 890 萬美元，佔產品淨收入的 103%。

Negative gross margin was partly associated with the clean room refurbishment.

負毛利率部分與無塵室翻新有關。

In addition, we wrote off approximately $400,000 of raw materials we believe would have low yield if we use them in production.

此外，我們還沖銷了約 40 萬美元的原料，我們認為如果將它們用於生產，其產量將會很低。

Further, Q4 2023 cost of sales includes $445,000 of non-cash stock compensation as compared to $25,000 for the fourth quarter of 2022.

此外，2023 年第四季的銷售成本包括 445,000 美元的非現金股票補償，而 2022 年第四季為 25,000 美元。

Excluding the impacts of these items, cost of sales as a percentage of product revenues would have been 94% for Q4 2023 versus 103% for Q4 of 2022.

排除這些項目的影響，2023 年第四季的銷售成本佔產品收入的百分比將為 94%，而 2022 年第四季為 103%。

R&D expenses for the fourth quarter of '23 were $2.2 million compared to $4.7 million for the fourth quarter of 2022, a 52% decrease year over year.

2023 年第四季的研發費用為 220 萬美元，而 2022 年第四季的研發費用為 470 萬美元，年減 52%。

The decrease in R&D expense is attributed to a decrease in funded research and development expense as certain programs were completed and lower internal expenses related to all that development.

研發費用的減少是由於某些項目完成後資助的研發費用減少以及與所有開發相關的內部費用減少。

SG&A expenses were $5.9 million in the fourth quarter of '23 compared to $4.9 million in the fourth quarter of 2022.

2023 年第四季的銷售、管理及行政費用為 590 萬美元，而 2022 年第四季為 490 萬美元。

The increase was primarily due to legal fees associated with our pending litigation.

增加的主要原因是與我們未決訴訟相關的法律費用。

Turning to the bottom line, net loss attributed to Kopin for the fourth quarter of '23 was $6.5 million, or $0.06 per share compared with a net loss attributed token of $6.2 million or 7% or $0.07 per share for the fourth quarter of 2022.

談到利潤，Kopin 在 2023 年第四季的淨虧損為 650 萬美元，即每股 0.06 美元，而 2022 年第四季的淨虧損為 620 萬美元，即 7%，即每股 0.07 美元。

Through the year ended December 30, 2023, total revenues for the year ended December 30, 23 were $40.4 million compared to $47.4 million for the year ended December 31, 2022.

截至2023年12月30日止年度，截至2023年12月30日止年度的總收入為4,040萬美元，而截至2022年12月31日止年度的總收入為4,740萬美元。

Product revenues for the year ended December 30, '23, were $25.9 million compared with $32.4 million for the year ended December 31, 2022.

截至2023年12月30日止年度的產品收入為2,590萬美元，而截至2022年12月31日止年度的產品收入為3,240萬美元。

The decrease in product revenues was a result of lower defense, industrial and consumer product revenues, which decreased by $2.2 million, $3.4 million and $900,000, respectively, year over year.

產品收入下降的原因是國防、工業和消費品收入下降，分別較去年同期減少 220 萬美元、340 萬美元和 90 萬美元。

Revenues from the sales of products for defense declined due to lower revenues from thermal weapons site applications, which were partially offset by higher revenues from avionic applications.

由於熱武器現場應用收入減少，國防產品銷售收入下降，但航空電子應用收入增加部分抵消了這一影響。

Revenues for industrial applications declined due to lower revenues for products with 3D automated optical inspection due to continued weakness in the Chinese automaker 3D automated test market and lower revenues from industrial headset applications.

由於中國汽車製造商3D自動化測試市場持續疲軟以及工業耳機應用的收入下降，具有3D自動光學檢測功能的產品收入下降，導致工業應用收入下降。

Consumer revenues declined in '23 compared to 2022 due to lower sales of older displays for consumer apps.

與 2022 年相比，23 年消費者收入有所下降，原因是消費者應用程式的舊顯示器銷量下降。

In the full year 2023 funded research and development revenues decreased $900,000 or 6%, increased funding for new display technology, developed U.S. programs and Olay solid.

2023 年全年資助的研發收入減少了 90 萬美元或 6%，增加了對新顯示技術、開發美國項目和玉蘭油固體的資助。

Development costs, which were partially offset by increased funding for armored vehicle targeting and medical headset developed.

開發成本部分被裝甲車瞄準和醫療耳機開發資金增加所抵消。

Cost of product revenues for 2023 were $25 million or 96% of product revenues compared to $32.6 million or 100% of product revenues in the prior year.

2023 年的產品收入成本為 2,500 萬美元，佔產品收入的 96%，而前一年為 3,260 萬美元，佔產品收入的 100%。

Cost of product revenues decrease as a percentage of revenues in 2023 as compared to 2022, primarily due to an increase of higher-margin products for defense applications in '23 versus 2022 and lower sales of lower margin products for defense applications in '23 versus 2022.

與2022 年相比，2023 年產品收入成本佔收入的百分比有所下降，這主要是由於與2022 年相比，2023 年用於國防應用的高利潤產品的增加，以及與2022 年相比，23年用於國防應用的低利潤產品的銷售下降。

2023 cost of sales includes $1.2 million of non-cash stock compensation as compared to $95,000 for 2022.

2023 年的銷售成本包括 120 萬美元的非現金股票補償，而 2022 年為 95,000 美元。

Excluding the noncash stock compensation cost of sales as a percentage of product revenues would have been 92% for Q4 2023 versus 100% for 2022.

如果不計入非現金股票補償，2023 年第四季的銷售成本佔產品收入的百分比將為 92%，而 2022 年則為 100%。

R&D expenses for '23 were $10.8 million compared to $18.7 million for 2022, a 42% decrease year over year.

23 年的研發費用為 1,080 萬美元，而 2022 年為 1,870 萬美元，年減 42%。

The decrease in R&D expenses compared to prior year was seen in both funded and internal R&D funded R&D expenses were $7.2 million for '23 as compared to $10.3 million for 2022, a 30% decrease, primarily due to completion of contracts with defense programs awarded prior to '23.

與前一年相比，研發費用減少，包括資助研發和內部研發資助研發費用23 年為720 萬美元，而2022 年為1,030 萬美元，減少了30%，主要是由於完成了之前授予的國防項目合約到'23。

Internal R&D expenses were $3.6 million for '23 compared to $8.4 million for 2022, a 57% decrease, primarily to a decrease in the development costs.

23 年的內部研發費用為 360 萬美元，而 2022 年為 840 萬美元，下降了 57%，主要是由於開發成本的下降。

SG&A expenses were $21.8 million for '23 compared to $18 million for 2022.

2023 年的銷售管理及行政費用為 2,180 萬美元，而 2022 年為 1,800 萬美元。

SG&A for '23 increased compared to '22, primarily due to an increase of approximately $5 million in legal and professional, $1 million in noncash stock-based compensation, partially offset by $1.3 million decrease in compensation and other benefits.

與22 年相比，23 年的SG&A 有所增加，主要是由於法律和專業費用增加了約500 萬美元，非現金股票薪酬增加了100 萬美元，部分被薪酬和其他福利減少130 萬美元所抵消。

Net loss attributed Kopin Corporation for '23 was $19.7 million or $0.18 per share, appeal and net loss attributed Copeland of $19.3 million or $0.21 per share for 2022.

Kopin Corporation 23 年的淨虧損為 1,970 萬美元，即每股 0.18 美元，上訴和 Copeland 2022 年的淨虧損為 1,930 萬美元，即每股 0.21 美元。

Net cash used in operating activities for '23 was approximately $15.3 million.

2023 年經營活動使用的現金淨額約為 1,530 萬美元。

Open cash and equivalents and marketable securities were $17.9 million at December 30.

截至 12 月 30 日，未平倉現金及等價物以及有價證券為 1,790 萬美元。

It is $12.6 million at December 31, 2022.

截至 2022 年 12 月 31 日，數字為 1,260 萬美元。

The amounts discussed above are based on our current estimates, and listeners should review our Form 10-K for the year ended December 30, 2023, for any possible changes and, of course, additional disclosures.

上述金額是根據我們目前的估計，聽眾應查看我們截至 2023 年 12 月 30 日的年度 10-K 表格，以了解任何可能的變化，當然還有額外的揭露。

And with that, I'll turn it over to Michael for closing remarks.

接下來，我將把它交給麥可做總結發言。

And then we'll take your questions.

然後我們將回答您的問題。

Thanks very much, Rich.

非常感謝，里奇。

As evidenced in our fourth quarter and full year results, our focus continues to be on strengthening our record order book, pushing on-time and full rates, higher cost controls and making sure that the strategic investments in products and people, which in the aggregate will improve cash flow and provide long term sustainable, profitable growth.

正如我們第四季度和全年業績所證明的那樣，我們的重點仍然是加強我們創紀錄的訂單簿，推動按時和全額率，更高的成本控制，並確保對產品和人員的戰略投資，這總體上將改善現金流並提供長期可持續的獲利成長。

We've also been working hard on our brand, external marketing and website development efforts.

我們也一直在品牌、外部行銷和網站開發方面努力。

We're ecstatic to announce that we've recently launched a new website and identity.

我們很高興地宣布，我們最近推出了新的網站和標誌。

Looking forward, we are fortunate to have world leading and market making customers who are supporting customer during this transformation.

展望未來，我們很幸運擁有世界領先的做市客戶，他們在這轉型過程中為客戶提供支援。

We have a unique strategy that distances ourselves from commodity competition, tremendous products and capabilities that new and existing customers value as we continue to advance and move up the value chain and gain more share of our customers' systems and spending.

我們擁有獨特的策略，使自己遠離商品競爭，隨著我們不斷推進和提升價值鏈並在客戶的系統和支出中獲得更多份額，新老客戶都看重巨大的產品和能力。

We are carefully selecting new strategic partners to work with and remain focused on new opportunities and development projects, which support our strategic plan, along with opening the aperture to non-organic growth opportunities as well to this end and due to our application-specific optical solutions strategy.

我們正在仔細選擇新的戰略合作夥伴進行合作，並繼續關注新的機會和發展項目，這支持我們的戰略計劃，並為此打開非有機增長機會的大門，並且由於我們的特定應用光學解決方案策略。

Our qualified opportunity pipeline has grown exponentially in the past few quarters due to the recent geopolitical issues and increased sovereign and foreign NATO spending.

由於最近的地緣政治問題以及北約主權和外國支出的增加，我們的合格機會管道在過去幾季呈指數級增長。

We expect several new customers, partners and project awards and announcements soon, which will not only add to our order book, but will fuel larger returns in the future as these new projects move into full rate 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，這不僅會增加我們的訂單，而且隨著這些新項目全面投入生產，未來還將帶來更大的回報。

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 our investments 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 and 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，但更專注於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，並作為我們業務的基石，並為我們的員工、客戶和利害關係人推動我們的長期永續成長。

Thank you, everyone, for your time today and for showing interest in Kopin.

謝謝大家今天抽出寶貴的時間以及對 Kopin 表現出的興趣。

I'd like to thank our employees, customers and stakeholders for their continued hard work, support and dedication.

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, we'll open it up for a few questions.

接下來，操作員，我們將提出幾個問題。

Certainly.

當然。

Thank you, Mr. Murray.

謝謝你，默里先生。

(Operator Instructions)

（操作員說明）

Matt Sheerin, Stifel.

馬特謝林，史蒂菲爾。

Yes, I think you are Good afternoon.

是的，我想你是下午好。

A couple of questions from me.

我有幾個問題。

One, Michael, you talked in your on your outlook in the release about expectations for double digit growth this year.

第一，邁克爾，您在新聞稿中談到了對今年兩位數成長的預期。

And you also talked about that $55 million in backlog.

您還談到了 5500 萬美元的積壓。

How should we think about how that plays out?

我們應該如何思考這將如何發展？

Obviously, you were down for various reasons this quarter and I'm sorry, you should we expect to see that growth year over year begin in Q1 or is that going to be more back-end loaded.

顯然，本季度由於各種原因，您的業績有所下降，很抱歉，我們應該期望看到第一季開始同比增長，或者後端負載會更大。

And of that $55 million of backlog, that doesn't necessarily mean that's going to ship in this year, right?

5500 萬美元的積壓訂單並不一定意味著今年就能發貨，對吧？

And some of that could be pushed out?

其中一些可以被推遲嗎？

It's a great question that So firstly, we see the back half of this year being exciting growth for the Company.

這是一個很好的問題，所以首先，我們認為今年下半年公司將出現令人興奮的成長。

In Q1 right now where we sit as were actively purchasing materials for those orders.

目前在第一季度，我們正在積極為這些訂單採購材料。

So as we get materials as we start building based on our six U.S. six accounting methods will be able to achieve higher growth rates and revenue rates along with that as we progress.

因此，當我們獲得材料時，我們開始根據我們的六種美國六種會計方法進行構建，隨著我們的進步，我們將能夠實現更高的成長率和收入率。

So I think you're going to see an escalated revenue growth quarter over quarter.

因此，我認為您將看到收入逐季增長。

Our customers are pulling demand to the left, meaning they will take earlier deliveries.

我們的客戶正在將需求拉向左側，這意味著他們將提前交貨。

And our goal is to ship everything we've got in backlog in 2024.

我們的目標是在 2024 年交付所有積壓訂單。

And whether or not we're able to do that is a function of getting the parts in here.

我們是否能夠做到這一點取決於將零件放在這裡的功能。

But I'm pleased to say that our hiring is going quite well in terms of production.

但我很高興地說，我們在生產方面的招募進展順利。

And we took the really tough decision in Q4 to take those couple of days to realign the fab so that we can grow.

我們在第四季做出了非常艱難的決定，用這幾天的時間來重新調整晶圓廠，讓我們能夠成長。

So that's why we took that decision in Q4 versus this year.

這就是我們在第四季度與今年做出這項決定的原因。

So you do expect Q1 to be up year over year then.

因此，您確實預計第一季將同比增長。

But up over Q4.

但比第四季有所上升。

Sequentially up.

依序向上。

Okay.

好的。

But year over year or still be down in other words, right, because you're at $10.7 million.

但年復一年，或者換句話說，仍然在下降，對吧，因為你的價格是 1070 萬美元。

Okay.

好的。

Okay.

好的。

So to get to that dose, how you're looking at you were talking high teens plus growth in the second half basically to get those numbers.

因此，為了達到這個劑量，你如何看待你所說的高青少年加上下半年的成長基本上是為了得到這些數字。

Right.

正確的。

Okay.

好的。

And then on gross margin, I know there were a lot of moving parts.

然後在毛利率方面，我知道有很多變化的部分。

I'd love you to clarify on that that what was that raw material write off all about.

希望您能澄清一下，註銷的原料到底是什麼。

And given that your it sounds like you're in the build mode in Q1.

考慮到您的情況，聽起來您正處於第一季的建造模式。

So should we expect gross margins to be depressed, in other words below where they were in in your Q2, Q3, which is in the mid-40s?

那麼，我們是否應該預期毛利率會下降，換句話說，低於第二季、第三季（即 40 多歲）的水平？

Yes.

是的。

So as it relates to the $400,000 material write off on.

這涉及到 40 萬美元的材料沖銷。

We are working hard as you saw when you pull out the non-cash charges.

正如您在扣除非現金費用時看到的那樣，我們正在努力工作。

We did a pretty good job both in Q4 and year over year in improving gross margins, and we want to maintain that track.

我們在第四季和去年同期在提高毛利率方面都做得非常好，我們希望能保持這一勢頭。

And as Michael said, it's all about materials for and so that we're asking our vendors to step up.

正如邁克爾所說，這一切都與材料有關，因此我們要求我們的供應商加緊努力。

There is certain components, which are very sophisticated in our product.

我們的產品中有一些非常複雜的組件。

And now and again, when they tried to increase and ramp up, we get a lot of it that a lot of material and not a lot a lot, not a lot of material that it just doesn't pass inspection.

有時，當他們試圖增加和增加時，我們得到很多材料，但不是很多，不是很多材料，只是沒有通過檢查。

And so sometimes you look at and you say maybe it'll work, maybe it won't but we're just making we're As Michael mentioned, we put a lot of quality programs in stop that stuff from getting in the line before we spent a lot of money manufacturing product that ultimately may or may not pass.

所以有時你會說也許它會起作用，也許不會，但我們只是讓我們像邁克爾提到的那樣，我們設置了很多高質量的程序來阻止這些東西之前進入隊列我們花了很多錢來製造最終可能會或可能不會通過的產品。

And so that's what we did.

這就是我們所做的。

We had $400,000 material.

我們有 40 萬美元的材料。

We looked at it and we said, okay, we're not really sure that we put this stuff through the line, it's going to get there.

我們看著它，然後說，好吧，我們不太確定我們是否將這些東西通過生產線，它會到達那裡。

And so we made the decision just to write it off.

所以我們決定註銷它。

We work with the vendors.

我們與供應商合作。

Sometimes they give us credit.

有時他們給予我們信任。

Sometimes they don't it's an ongoing issue.

有時他們不這樣做，這是一個持續存在的問題。

And so that's just going to continue probably through the first half of the year.

因此，這種情況可能會持續到今年上半年。

And that's why honestly, we're being somewhat cautious about guidance for the first half of the year on growth because we really need to see our vendors step up and provide the materials.

老實說，這就是為什麼我們對今年上半年的成長指引有些謹慎，因為我們確實需要看到我們的供應商加緊提供材料。

If we're successful, then we'll do better but we're taking a conservative approach right now.

如果我們成功了，那麼我們會做得更好，但我們現在採取保守的方法。

Okay, understood.

好的，明白了。

So is there in other words, you expect growth, so what should we be modeling gross margins in the first half like below 40%.

換句話說，您期望成長，那麼我們應該對上半年的毛利率進行建模，例如低於 40%。

Yes.

是的。

Yes.

是的。

Okay.

好的。

And that just goes back to the I mean, I guess question on profitability, Michael, I know last year you talked about entering fiscal '24 cash flow breakeven, EBITDA breakeven and obviously you're going to be below that for the next couple of quarters.

這又回到了我的意思，我想關於盈利能力的問題，邁克爾，我知道去年你談到進入財政'24現金流盈虧平衡，EBITDA盈虧平衡，顯然你將在接下來的幾年裡低於這個水平宿舍。

So I guess the question is what confidence that you have that you can get to get to that those profitability goals by the second half, it was a function of scrap and revenue, so the absorption rate on the fab.

所以我想問題是你對下半年實現這些獲利目標有什麼信心，這是廢品和收入的函數，因此是晶圓廠的吸收率。

So as we build more through the fab, we're able to keep that absorption rate high, and that's what will drop through the bottom line.

因此，當我們透過晶圓廠建造更多產品時，我們能夠保持較高的吸收率，而這正是最終的利潤。

So one of the early success factors that I see and why I am confident that we'll achieve that goal this year is we are catching more on inbound inspection, which is great news.

因此，我看到的早期成功因素之一以及我對今年實現這一目標充滿信心的原因之一是我們在入境檢查方面取得了更多進展，這是個好消息。

The problem that that creates, though, if we order 100 lenses as an example, and 10 of them are returned to the vendor for quality issues.

但是，如果我們訂購 100 個鏡頭，其中 10 個因品質問題而退回給供應商，那麼這就產生了問題。

That leaves us 90 to build.

剩下 90 人需要建造。

So we went through those tribulations last year quarter three and quarter four.

所以我們去年第三季和第四季經歷了這些磨難。

And now we're adjusting our models and ordering appropriately based on the new quality levels that we're seeing.

現在，我們正在根據我們看到的新品質水準調整我們的模型並適當訂購。

So that's number one.

所以這是第一。

Number two, the volumes that we're now seeing on the thermal weapon sites will allow us to increase our absorption rate on the fab and get to that breakeven point where we then start to drop more down the bottom line.

第二，我們現在在熱武器站點上看到的數量將使我們能夠提高晶圓廠的吸收率，並達到損益平衡點，然後我們開始進一步降低利潤。

So we see that time being Q3, Q4, but we really got to hustle and get the product in here and get moving kind of.

所以我們認為現在是第三、第四季度，但我們真的必須趕緊把產品放在這裡並開始行動。

Okay.

好的。

Thanks very much.

非常感謝。

Yes, yes.

是的是的。

The other thing, Matt, I would add is the litigation goes to trial in fact and days roughly.

馬特，我要補充的另一件事是，訴訟事實上已經進入審判階段，大約需要幾天。

And so we would expect it to be over by middle of April, and that has been a substantial cash drain.

因此，我們預計它將在四月中旬結束，這將導致大量的現金流失。

Thank you.

謝謝。

Glenn Mattson, Ladenburg.

格倫馬特森，拉登堡。

Yes, hi.

是的，嗨。

Congrats on the business momentum and the backlog build and everything I Rich speaking on the trial that you just mentioned the and can you quantify what you expect the expense to be and I guess it will be partial will all be Q1.

恭喜業務勢頭和積壓建設以及我在您剛才提到的試驗中所說的一切，您能否量化您預期的費用，我想這將是部分的，全部將是第一季。

I don't know how long the trial is expected to last that kind of thing.

我不知道這種事情的審判預計會持續多久。

Just your general sense for how we model out that portion of the expense line.

這只是您對我們如何對費用線的這一部分進行建模的一般感覺。

Our trial starts March 20.

我們的審判從 3 月 20 日開始。

We're told it's a four week trial.

我們被告知這是一個為期四週的審判。

So third week in April, it's over and it will be

所以四月的第三週，一切都結束了，一切都會結束

[several million dollars].

[幾百萬美元]。

But all as I commented back to Matt's question, one of the perturbations to the business has been that that ongoing litigation and we did take a significant amount of cost in Q4 expecting that this would have gone to trial or at least was prepping to trial.

但正如我對馬特問題的評論一樣，對業務的干擾之一是正在進行的訴訟，我們確實在第四季度花費了大量成本，預計這會進入審判或至少正在準備審判。

And then there was a COVID issue in the courts.

然後法庭上出現了新冠肺炎問題。

So that was an unforeseen issue that quite frankly, just cost us more cash.

所以這是一個不可預見的問題，坦白說，只是花了我們更多的現金。

Great.

偉大的。

On the general the other backdrop that you talked about on the business side, Michael, you mentioned the backlog and on the order flow that you've gotten recently, but also that there could be some further at a follow on to some of these orders that you're doing now and some potential kind of bigger things as well.

邁克爾，關於您在業務方面談到的一般其他背景，您提到了積壓訂單和最近收到的訂單流，但也可能會對其中一些訂單進行進一步的跟進你現在正在做的事情以及一些潛在的更大的事情。

Can you just kind of help quantify what are the some of the two like one or two or three biggest opportunities?

您能否幫助量化這兩個中的一些機會，例如一兩個或三個最大的機會是什麼？

Just remind us what's out there?

只是提醒我們外面有什麼？

Maybe it's like the armored vehicle program or for something else?

也許這就像裝甲車計劃或其他什麼？

And just kind of frame how to think about what that could mean for this year and for '24 and '25 potentially as they as the stuff comes through.

這只是一個框架，讓我們思考這對今年以及 24 和 25 年可能意味著什麼，因為它們會隨著這些東西的出現而出現。

Sure, so to quantify it as best I can.

當然，所以我會盡力化它。

The thermal weapons site program is really actually hitting full rate production.

熱武器現場計劃實際上正在達到全速生產。

Now it's it was ongoing for a few years, and I think it's hitting its stride now.

現在它已經持續了幾年，我認為它現在正在大步前進。

And those retrofits and upgrades are happening at the Army level.

這些改造和升級正在陸軍層面進行。

Furthermore, there were some recent new weapons selections that if you Google hard enough, you can find them for squad weapon.

此外，最近有一些新的武器選擇，如果你夠努力地谷歌，你可以找到它們作為小隊武器。

What have you that are also increasing adoption rates just simply because there's new guns to outfit.

你有什麼僅僅因為有新的槍支可供裝備而提高了採用率。

So we're seeing the benefit from that more over I mentioned NATO and NATO spending.

因此，與我提到的北約和北約支出相比，我們看到了更多的好處。

If you do the math around new countries joining NATO, Sovereign and foreign spending that is going on, we will be beneficiaries of that, I believe hard to quantify when and where and how.

如果你計算加入北約的新國家、正在發生的主權和外國支出，我們將成為受益者，我相信很難量化何時、何地以及如何。

But we are seeing a lot of uptick in new opportunities from other countries and other ministries of defense.

但我們看到來自其他國家和其他國防部的新機會大量增加。

So we see some opportunity in that area, specifically in the international weapons business.

因此，我們在該領域看到了一些機會，特別是在國際武器業務中。

So I think that's going to continue.

所以我認為這將繼續下去。

And I believe our customers taking share of the IDIQ. from their competitor because of our quality rates and some of the performance that we've been able to put together in 2023.

我相信我們的客戶會分享 IDIQ。由於我們的品質水平以及我們在 2023 年能夠實現的一些表現，他們從競爭對手中脫穎而出。

So all good things and on the thermal weapon sight on the armored vehicle program, some we've actually been having a lot of conversation with that customer.

所以，關於裝甲車專案上的熱武器瞄準器，所有的好事，我們實際上已經與該客戶進行了許多對話。

And the great news there is they are still asking us to pull that program in and get done with our PPAP. program as quickly as possible.

好消息是他們仍然要求我們撤回該計劃並完成 PPAP。盡快編程。

They are now talking to us about additional platforms for that weapon site, which is exciting news, and we hope to have some announcements there latter half of this year and getting those production orders on the books in Q3, Q4.

他們現在正在與我們討論該武器網站的其他平台，這是令人興奮的消息，我們希望在今年下半年發布一些公告，並在第三季、第四季獲得這些生產訂單。

So that's on track.

所以一切都步入正軌了。

We're on track with that program order, which is great news.

我們正在按計劃執行該計劃，這是個好消息。

We also have our avionics customer that is transitioning over to a lead, and we're expecting that to happen this year as well, which would be additional orders on Kopin.

我們的航空電子設備客戶也正在轉變為領先者，我們預計今年也會發生這種情況，這將是 Kopin 的額外訂單。

So I'll just sit here in March with $55 million of backlog personally a year ago.

因此，我將在 3 月坐在這裡，一年前，我個人還有 5500 萬美元的積壓訂單。

I wouldn't say we would get this far but tremendous effort and tremendous results by the team.

我不會說我們會走到這一步，但團隊付出了巨大的努力並取得了巨大的成果。

Yes.

是的。

The other thing I would add is that there are also a couple of other significant programs that are in process of our government ever becomes functional and can pass a budget and get through this.

我要補充的另一件事是，我們政府正在進行的其他一些重要計劃一旦開始運作，就可以通過預算並完成這項任務。

In the frame that we're looking anywhere between $8.4 million to $15 million, potentially even $20 million if once the government gets back working and has some resolutions that are past one.

在這個框架中，我們正在尋找 840 萬至 1500 萬美元之間的資金，如果政府恢復工作並製定了一些過時的決議，甚至可能達到 2000 萬美元。

So the government works.

所以政府在工作。

So we're expecting those to happen.

所以我們期待這些發生。

And my view is that we'll have several new customer contracts that we'll be able to announce here shortly.

我的觀點是，我們很快就會在這裡宣布幾份新的客​​戶合約。

So I hope that answers your question, right?

所以我希望這能回答你的問題，對嗎？

Yes.

是的。

No, definitely and very helpful to frame.

不，絕對對框架很有幫助。

And then just last one for me.

然後是我的最後一個。

So during the current quarter, Q1 is when the VISION Pro launched or whatever.

因此，在當前季度，第一季是 VISION Pro 推出之類的時間。

Can you just give us a sense of like if that's spurring a lot more conversations on the you know, you talked a little bit about kind of some technology that you're developing for on port for VR display type stuff, but some of that might be further out.

你能否給我們一種感覺，如果這激發了更多的對話，你知道，你談到了一些你正在為 VR 顯示類型的端口開發的技術，但其中一些可能更遠一點。

But just breast is there's been a significant uptick, but that's worth talking about in the in that space since the success of the VisionPro?

但只是胸部有了顯著的上升，但自從 VisionPro 成功以來，這在這個領域值得討論嗎？

Thanks.

謝謝。

Sure.

當然。

So vision Pro, I think, is going to create the adoption rate that we all need an ARVR. systems.

因此，我認為 Vision Pro 將提高我們都需要 ARVR 的採用率。系統。

It's really a software platform, in my view, which is what they released today are getting decent companies that are now building apps for the opportunity to grow.

在我看來，這實際上是一個軟體平台，他們今天發布的平台吸引了一些不錯的公司，這些公司現在正在建立應用程式以獲得成長機會。

And that's just going to enable the market, right?

這只會激活市場，對嗎？

And as that market adoption starts to heat up, so will the rest of the markets being medical, military, et cetera?

隨著市場採用率開始升溫，醫療、軍事等其他市場也會如此嗎？

So I think the adoption rate is going to increase, Glen, and we definitely are seeing an uptick in consumer requests for Kopin to work with consumer companies.

所以我認為採用率將會增加，格倫，我們肯定會看到消費者對 Kopin 與消費公司合作的要求增加。

But I'm very tentative with that right now based on the level of costs and risks that I see in the consumer marketplace.

但根據我在消費市場上看到的成本和風險水平，我現在對此非常猶豫。

Still right now, we see tremendous demand from the military customers with real money real demand that I can put my finger on.

現在，我們仍看到來自軍事客戶的巨大需求，我可以指出這些真實的貨幣需求。

So we're tending to focus on that more.

所以我們傾向於更加關注這一點。

Having said that, we do have a consumer strategy that is more of an IP related business, and we're developing that relationship now.

話雖如此，我們確實有一個消費者策略，更多的是與智慧財產權相關的業務，而我們現在正在發展這種關係。

And we expect to have some announcements latter half of this year and to be back at CES in 2025.

我們預計將在今年下半年發布一些公告，並於 2025 年重返 CES。

And that's it for me.

對我來說就是這樣。

Thanks very much.

非常感謝。

Thanks Glen.

謝謝格倫。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Kevin Dede, HC.

凱文·德德，HC。

Wainwright.

溫賴特。

Afternoon, gentlemen.

下午好，先生們。

Michael, Rich, thanks for having me on flexibility regarding.

麥可、里奇，感謝您讓我了解彈性。

Yes, no hum for I guess.

是的，我想沒有嗡嗡聲。

First thing, Michael, your initial remarks spoke to the outline of strategic objectives you offered in the March call last year.

首先，邁克爾，您的最初言論談到了您在去年三月電話會議中提出的策略目標大綱。

I was wondering if you wouldn't mind sharing sincerely how you think you've done and like whether or not you've accomplished as much as you thought you would as rapidly as you have or whether or not you think that some of the hiccups that you've run into, i.e., the problems with source components problems with fab have delayed the improvement that you thought you could accomplish it a year ago?

我想知道你是否不介意真誠地分享你認為自己做了什麼，以及是否喜歡你是否像你想像的那樣快地完成了那麼多的事情，或者你是否認為有些問題您遇到過什麼問題，即源組件的問題以及晶圓廠的問題延遲了您一年前認為可以完成的改進嗎？

I would answer it this way.

我會這樣回答。

I think the surprises for me have been I think the cash spent on the lawsuit has been more than what I expected it to be lumpier than we expected it to be.

我認為令我驚訝的是，我認為訴訟上花費的現金比我預期的要多，而且比我們預期的要多。

So I think that was a pretty I-vation that I had not expected and caused havoc with our SG&A and our balance sheet, quite frankly.

因此，坦白說，我認為這是一個我沒有預料到的相當大的變化，並對我們的銷售、管理和管理費用和資產負債表造成了嚴重破壞。

So I didn't quite understand how that was going to impact the year.

所以我不太明白這將如何影響這一年。

So that would be number one.

所以這將是第一。

Number two I think the amount of effort that we put into our quality systems, it was more difficult than I had a I'd say appreciated and how much detail was going to be required to be improved, how much documentation was going to need to be improved.

第二，我認為我們在品質系統中投入的精力比我想像的要困難，我想說的是，需要改進多少細節，需要多少文件來改善。

And quite frankly, we needed some, I'd say, better talent in that area.

坦白說，我想說，我們需要該領域的一些更好的人才。

And we went out and got it.

我們出去得到了它。

And now we're improving.

現在我們正在進步。

The customers are rewarding us.

客戶正在獎勵我們。

I think the best surprise in last year was the customers' willingness to work with Kopin and the fact that they want to give us more.

我認為去年最大的驚喜是客戶願意與 Kopin 合作，並且他們希望為我們提供更多。

They want to give us more business.

他們想給我們更多的生意。

And at this point in time they are.

此時此刻，他們確實如此。

And if we keep doing what we're doing, I think we're going to be wildly successful.

如果我們繼續做我們正在做的事情，我認為我們將會取得巨大的成功。

I'm afraid to tell people what our opportunity pipeline is because the number is so large.

我不敢告訴人們我們的機會管道是什麼，因為數量太大了。

So I think we've got tremendous opportunity to grow the Company and I think it's just blocking and tackling, keeping our customers happy and turning out quality products.

因此，我認為我們有巨大的機會來發展公司，我認為這只是阻止和解決，讓我們的客戶滿意並生產優質的產品。

So I think that's where my head is at after year.

所以我想這就是我一年後的想法。

Okay.

好的。

Help me make sure I have the detail straight here.

幫我確保我這裡有詳細資訊。

Even I could swear that I heard your prepared remarks.

就連我也可以發誓我聽到了你準備好的言論。

You were comfortable with 20% growth, which gets you like $48.5 million this year, your backlog's $55 million , and you expect to convert all of it this year.

您對 20% 的成長感到滿意，這將使您今年獲得 4850 萬美元，您的積壓訂單為 5500 萬美元，並且您希望今年將其全部轉換。

So sort of help me reconcile those two or correct problem with my understanding please.

請幫我協調這兩個問題或根據我的理解來糾正問題。

Sure, just conservatism.

當然，只是保守主義。

We want to make sure that where our supply chain can support that level of volume.

我們希望確保我們的供應鏈能夠支援這一數量水準。

We are buying to that level of volume today and expect to ship that level of volume.

我們今天的購買量達到了這個水平，並預計出貨量達到這個水平。

But again, we want to make sure that we're very crisp and concise and hit our marks.

但同樣，我們希望確保我們的內容非常清晰、簡潔並達到我們的目標。

So that's the reason for the delta.

這就是三角洲的原因。

Okay.

好的。

Fair enough.

很公平。

Thank you.

謝謝。

I was wondering if you could peel the onion back a little bit on the on the thermal sites.

我想知道你是否可以在地熱區把洋蔥剝皮一點。

Understand you're very excited about that.

了解您對此感到非常興奮。

But could you I know that you're obviously very involved with the FWSI., but I guess what I don't understand is how much for in interest you're seeing.

但我能否知道，您顯然非常參與 FWSI。但我想我不明白的是您所看到的利益有多大。

I thought I understood maybe a $20 million order coming in from a NATO affiliate.

我以為我了解來自北約附屬機構的 2000 萬美元訂單。

Can you just help clarify that?

你能幫忙澄清一下嗎？

The $20.5 million that we received this quarter is for the US DoD.

本季我們收到的 2,050 萬美元是捐給美國國防部的。

It's a new weapon collection.

這是一個新的武器收藏。

So with the new weapons selection, Kevin along comes a new weapon sight and we had to do some work on the optics to make that weapon site work for this new weapon system.

因此，隨著新的武器選擇，凱文帶來了新的武器瞄準器，我們必須在光學上做一些工作，以使該武器站點適用於這個新的武器系統。

So that is for US DoD.

這就是美國國防部的情況。

We did have in 2023 several orders for international weapons sites, specifically long-range and our customer is buying for new business in that area internationally and they're being successful.

2023 年，我們確實收到了多個國際武器站點訂單，特別是遠程武器站點，我們的客戶正在國際上購買該領域的新業務，並且他們正在取得成功。

So we'll see what happens this year with some of the conflicts that are going on.

因此，我們將看看今年會發生什麼以及正在發生的一些衝突。

But in the international market, it is much more price conscious than, I'd say, the US DOD market from my understanding, but some I also see opportunity in nonconventional weapons systems like off the visor systems as an example, which is one of the things that we worked on with Wilcox and display with Wilcox at the SHOT Show.

但在國際市場上，根據我的理解，它比美國國防部市場更注重價格，但我也看到了非常規武器系統中的機會，例如遮陽板系統，這是我們與Wilcox 合作並在其中之一SHOT Show 上與Wilcox 一起展示的東西。

So I think those are new opportunities for us to grow our business in our portfolio.

因此，我認為這些是我們在投資組合中發展業務的新機會。

And I think you'll hear some exciting news around those technologies as well this year.

我認為今年您也會聽到一些有關這些技術的令人興奮的消息。

Yes, Kevin, I would add that if you'll see, for instance, on a lot of discussion about the U.S. providing arms to the Ukraine.

是的，凱文，如果你會看到很多關於美國向烏克蘭提供武器的討論，我想補充一點。

As an example, our customers in situations like that is the United States government.

舉個例子，在這種情況下我們的客戶是美國政府。

So it's not like Ukraine or some European nations orders that they actually are supplied by the U.S. government.

因此，這並不像烏克蘭或一些歐洲國家的訂單那樣，它們實際上是由美國政府提供的。

So And technically, our customers always the US government and sometimes we know where it's going and sometimes we don't.

因此，從技術上講，我們的客戶始終是美國政府，有時我們知道它的去向，有時我們不知道。

Okay, thank you.

好的謝謝。

On the Michael, if you allow me, you spoke to the black backplane development and I guess making sure that your sources are outside of China and use, you mentioned both internally and externally, and I kind of lost your train of thought on that.

關於邁克爾，如果你允許的話，你談到了黑色背板的開發，我想確保你的來源在中國之外並使用，你提到了內部和外部，我有點失去了你的思路。

So if you could help me if you could help me kind of understand that and maybe how the process is different than the way you were looking at it a year ago?

那麼，如果你能幫助我，如果你能幫助我理解這一點，也許這個過程與你一年前看待它的方式有何不同？

And what position or the change puts you in going forward?

什麼樣的立場或改變會讓你繼續前進？

Yes.

是的。

No, problem, let me clarify.

不，有問題，讓我澄清一下。

So we build our backplanes with a silicon partner and we control that internally.

因此，我們與晶片合作夥伴一起建造背板，並在內部進行控制。

So we'll send out a wafer request to our partner, who's in Asia, not in China, but we'll receive those backplanes.

因此，我們將向位於亞洲而不是中國的合作夥伴發送晶圓請求，但我們將收到這些背板。

And so we build the backplanes.

所以我們建造了背板。

We design the backplanes, we can deposit certain material, whether it be oh LED micro LEDs or L. costs and Delgatti Bay as an example.

我們設計背板，我們可以沉積某些材料，無論是 LED micro LED 還是 L. 成本，以 Delgatti Bay 為例。

But it's that deposition partner that I'm referring to more specifically as being fab-light.

但我更具體地稱之為輕晶圓廠的沉積合作夥伴。

The reason why that's important is we've moved our lead deposition out of China.

這之所以重要，是因為我們已將鉛沉積移出中國。

And we have now signed up a European deposition partner that is adapting our lead designs and using their deposition material and process.

我們現在已經與歐洲沉積合作夥伴簽約，該合作夥伴正在調整我們的引線設計並使用他們的沉積材料和製程。

And quite frankly, it's working better than expected.

坦白說，它的效果比預期的要好。

We're getting better quality results, better brightness and power consumption and probably not power consumption contrast numbers from that partner.

我們得到了更好的品質結果、更好的亮度和功耗，但可能不是來自該合作夥伴的功耗對比數字。

So that's going very, very well, very impressed with that but we're also looking at other partners in Korea as an example that have high volume, full LED deposition and capability as well as micro-LED technology and our US DoD approved.

因此，進展非常非常好，給人留下了非常深刻的印象，但我們也在以韓國的其他合作夥伴為榜樣，他們擁有大批量、完整的LED 沉積和能力以及micro-LED 技術，並獲得了美國國防部的批准。

So expanding into that market allows us to still own the backplane, which we need to design.

因此，擴展到該市場使我們仍然可以擁有我們需要設計的背板。

That's where the that's where the brains go.

那就是大腦所在的地方。

The processor itself, the AI., the software that controls the display, the deposition, Kevin of LED or LEDs or what have you is what's happening at our partners' sites?

處理器本身、人工智慧、控制顯示、沉積、LED 或 LED 的 Kevin 的軟體，或者我們合作夥伴的站點正在發生什麼？

Does that help?

這樣有幫助嗎？

Yes, it helps a lot.

是的，這很有幫助。

I know I remember was one of your first initiatives was to move to fab-light.

我知道我記得你們的第一個舉措就是轉向輕晶圓廠。

And at that point was your deposition partner the one in China.

那時你的證詞夥伴就是在中國的那個。

Or have you already begun to work with the European partner.

或者您已經開始與歐洲合作夥伴合作。

So the fab-light strategy was put in place because our partner was in China as selling Vari-L is a very specific initiative.

因此，我們制定了輕晶圓廠策略，因為我們的合作夥伴在中國，因為銷售 Vari-L 是一項非常具體的舉措。

Yes, because we saw a tremendous opportunity in US DoD. and the answer was we'd love to give it to you, but you can't deposit a lead in China.

是的，因為我們在美國國防部看到了巨大的機會。答案是我們很樂意將其提供給您，但您無法在中國存入線索。

I said fine.

我說好吧。

We won't and now we do not deposit a lead in China for US DoD customers, and we're being very successful in taking share of individual displays and our optical solutions away from some of our domestic competitors.

我們不會，現在我們也不會為美國國防部客戶在中國佔據領先地位，而且我們非常成功地從一些國內競爭對手手中奪取了個人顯示器和光學解決方案的份額。

So that strategy is working quite well.

所以這個策略運作得很好。

Actually, I'm trying to shorten up my question list for you, Michael, but I can't I can't not let this one go.

事實上，我想為你縮短我的問題清單，邁克爾，但我做不到，我不能不讓這個問題過去。

I'd really love to hear an update on the neural display.

我真的很想聽到有關神經顯示的更新。

I think you referenced it obviously, but not much detail on time to market and any sort of customer acceptance you may have had to this point.

我認為您顯然提到了它，但沒有太多關於上市時間以及您迄今為止可能必須接受的任何類型的客戶接受度的詳細資訊。

So I'll update more of the next call with more definitive details.

因此，我將在下一次通話中更新更多內容，提供更明確的細節。

However, we have been out marketing the neural display.

然而，我們一直在推銷神經顯示器。

I'd say a handful of customers and consumer and a handful of very strategic customers in defense.

我想說的是少數客戶和消費者以及少數非常有戰略意義的客戶在防禦。

We've also written several research papers requesting funding for the neural Splay, and I think we'll be successful in getting that funding from the U.S. DoD for soldier vision systems.

我們還撰寫了幾篇研究論文，請求為神經 Splay 提供資金，我認為我們將成功從美國國防部獲得士兵視覺系統的資金。

So that's going well.

所以一切進展順利。

I have a high degree of confidence in that technology and our ability to fund it.

我對這項技術以及我們為其提供資金的能力充滿信心。

That's number one.

這是第一名。

Number two, I have the team working on a very stressful time line right now where we want to be demonstrable in Q1 in 2025.

第二，我的團隊目前正在製定一個非常緊張的時間表，我們希望在 2025 年第一季實現這一目標。

It won't be a full 2K display or 4K display.

它不會是完整的 2K 顯示器或 4K 顯示器。

But I believe we'll have a demonstrable display in Q1 of 2025 that we can demonstrate for customers utilizing this new technology, and that's our goal, Kevin.

但我相信我們將在 2025 年第一季推出一款可展示的顯示器，我們可以利用這項新技術向客戶展示，這就是我們的目標，Kevin。

(multiple speakers) So that that Q1 is CES 2025, Michael, which I know you referenced so can we be so lucky as to see something there?

（多個演講者）邁克爾，所以第一季就是 CES 2025，我知道你提到過，所以我們能很幸運地在那裡看到一些東西嗎？

Or am I shooting too high?

還是我射太高了？

Well, let's put it this way.

好吧，讓我們這樣說。

That's what I'm forcing the engineers towards.

這就是我強迫工程師去做的事情。

But again, I want to stress that is a very lofty goal, but that is the goal.

但我想再次強調，這是一個非常崇高的目標，但那就是目標。

And we're working like mad to make that happen.

我們正在瘋狂地努力實現這一目標。

And we also have a US DoD demonstration that we want to do in Q4 that has now taken priority over that because of the volume of business that we could associate with it.

我們還希望在第四季度進行美國國防部的演示，但由於我們可以與之相關的業務量，該演示現在已優先於該演示。

But that's the goal.

但這就是目標。

Kevin is 2025 CES.

凱文出席 2025 年 CES。

So we'll do our best, but it is a lofty goal.

所以我們會盡力而為，但這是一個崇高的目標。

Yes.

是的。

Well, I thanks for indulging me, gentlemen.

嗯，謝謝你們對我的寬容，先生們。

I appreciate it.

我很感激。

I'll turn the phone call over finally.

最後我會把電話轉過去。

Thanks, Kevin.

謝謝，凱文。

Thank you.

謝謝。

And it appears we have no further questions this afternoon.

今天下午我們似乎沒有其他問題了。

Mr. Murray, I'd like to hand things back to you for any closing comments.

穆雷先生，我想將所有的事情交還給您，以供您發表總結意見。

Thank you, operator, and thank you all for joining.

謝謝運營商，也謝謝大家的加入。

We hope you stay safe and have a great spring, and we will talk to you at our next call.

我們希望您保持安全並度過一個愉快的春天，我們將在下次電話會議中與您交談。

Thank you very much for joining.

非常感謝您的加入。

Thank you again, ladies and gentlemen, that will conclude the Kopin Corporation fourth quarter and full year 2023 earnings call.

女士們、先生們，再次感謝你們，Kopin Corporation 第四季和 2023 年全年財報電話會議到此結束。

We'd like to again, thank you all so much for joining us and wish you all a great remainder of your day.

我們再次非常感謝大家加入我們，並祝福大家有個愉快的一天。

Goodbye.

再見。