Kopin Corp (KOPN) 2024 Q3 法說會逐字稿

Good morning, everyone, and welcome to the Kopin Corporation third-quarter 2024 earnings call.

大家早安，歡迎參加 Kopin 公司 2024 年第三季財報電話會議。

Please note that this event is being recorded.

請注意，該事件正在被記錄。

At this time, I would like to turn the conference over to Brian Prenoveau, Investor Relations for Kopin.

這次，我想將會議交給 Kopin 投資者關係部的 Brian Prenoveau。

Please go ahead.

請繼續。

Thank you, operator, and good morning, everyone.

謝謝接線員，大家早安。

Before we get started, I'd like to remind everyone that during today's call taking place on Tuesday, November 12, 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 2024 年 11 月 12 日星期二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 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。

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's 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 third-quarter 2024 results.

在邁克爾之後，Kopin 的財務長理查德·斯奈德 (Richard Sneider) 將審查該公司 2024 年第三季的業績。

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。

Michael?

麥可？

Thank you, Brian.

謝謝你，布萊恩。

Good morning to everyone, and welcome to our third-quarter 2024 earnings call.

大家早安，歡迎參加我們的 2024 年第三季財報電話會議。

We'd like to take a moment to express our gratitude to all the veterans, both within and outside of our organization, as well as those currently serving in the Armed Forces.

我們想花一點時間向我們組織內外的所有退伍軍人以及目前在武裝部隊服役的退伍軍人表示感謝。

Their dedication and service are invaluable to Kopin's ongoing mission to save lives and enhance human performance through advancements in optical solutions.

他們的奉獻和服務對於 Kopin 透過光學解決方案的進步來拯救生命和提高人類績效的持續使命非常寶貴。

We are proud of the substantial progress we've made on our transformation plan, which is gaining momentum and achieving key milestones.

我們為轉型計劃的實質進展感到自豪，該計劃正在蓄勢待發並實現關鍵里程碑。

We now project over $75 million in orders for 2024 and beyond, potentially the highest annual order total in our company's 40-year history.

目前，我們預計 2024 年及以後的訂單金額將超過 7,500 萬美元，這可能是我們公司 40 年歷史上最高的年度訂單總額。

This order book includes repeat orders from existing customers as well as significant new orders from both US and international clients, demonstrating our growth in revenue, customer base, and market reach.

這本訂單簿包括來自現有客戶的重複訂單以及來自美國和國際客戶的重要新訂單，展示了我們在收入、客戶群和市場範圍方面的成長。

In the third quarter, we achieved $13.3 million in revenue, a 26% increase over Q3 2023 with continued sequential revenue growth.

第三季度，我們實現了 1,330 萬美元的收入，比 2023 年第三季成長 26%，營收持續較上季成長。

Defense products delivered $10.4 million in revenue, 109% year-over-year increase.

國防產品營收 1,040 萬美元，年增 109%。

Notably, five new customers placed development orders, which we expect will drive multimillion dollar production orders in the years ahead, given these are multiyear indefinite demand and quantity or IDIQ contracts secured by our customers.

值得注意的是，五家新客戶下了開發訂單，我們預計這些訂單將在未來幾年推動數百萬美元的生產訂單，因為這些訂單是經過多年的無限期需求和數量或由我們的客戶獲得的IDIQ 合約。

In Defense, our order book has shown significant strategic progress.

在國防方面，我們的訂單顯示出重大的戰略進展。

We reached the final production qualification milestone for our high-performance organic light emitted diode on silicon display designed for Collins Aerospace F-35 Lightning II Helmet Mounted Display System or HMDS.

我們為柯林斯航空航天 F-35 Lightning II 頭盔式顯示系統或 HMDS 設計的高性能有機發光二極管矽顯示器達到了最終生產資格里程碑。

As a sole-source supplier of high brightness AMLCD displays for this system, we are fulfilling a multiyear agreement that should continue on for several more years.

作為該系統高亮度 AMLCD 顯示器的獨家供應商，我們正在履行一項多年協議，該協議還將持續數年。

Recently, we received a $2 million follow-on production order for these AMLCD displays, extending our backlog and preparing us for next-generation OLED on silicon micro-display production.

最近，我們收到了這些 AMLCD 顯示器的 200 萬美元後續生產訂單，擴大了我們的積壓訂單，並為下一代矽基 OLED 微顯示器的生產做好了準備。

We anticipate both display types will be in production for an extended period of time.

我們預計這兩種顯示器類型都將長期生產。

We also secured a $1.3 million follow-on order for our Emerald microdisplay module for a major weapon sight product as part of a multiyear production program.

作為多年生產計劃的一部分，我們還獲得了價值 130 萬美元的 Emerald 微顯示模組後續訂單，用於主要武器瞄準器產品。

This positions us for strong revenue growth, especially as our larger thermal weapon sight program and subsequent production is expected to increase into fiscal year 2025.

這使我們的收入成長強勁，特別是我們規模更大的熱武器瞄準器項目和後續產量預計將在 2025 財年增加。

In the industrial market, we secured a $1.5 million follow-on contract for our near-eye thermal imaging system integrated into firefighter's masks.

在工業市場，我們獲得了一份 150 萬美元的後續合同，將我們的近眼熱成像系統整合到消防員面罩中。

This system featuring a miniaturized AMLCD and optics within the face piece enhances safety and effectiveness for firefighters.

該系統在面罩內配備微型 AMLCD 和光學元件，提高了消防員的安全性和有效性。

Turning to our 3D AOI, Automated Optical Inspection segment, we launched our next-generation SXGA FLCoS microdisplay system called the R15.

談到我們的 3D AOI（自動光學偵測）領域，我們推出了名為 R15 的新一代 SXGA FLCoS 微顯示系統。

Mirtec, a leading provider of 3D AOI technology in South Korea, secured our first purchase order for this device.

Mirtec 是韓國領先的 3D AOI 技術供應商，為我們贏得了該設備的第一份採購訂單。

This affordable compact solution positions us well to meet growing demand in Asia and globally.

這種經濟實惠的緊湊型解決方案使我們能夠很好地滿足亞洲和全球不斷增長的需求。

Additionally, we received a production order for our high-resolution 4-megapixel 2K SLM system, also for 3D AOI integration.

此外，我們還收到了高解析度 400 萬像素 2K SLM 系統的生產訂單，也用於 3D AOI 整合。

With the global 3D AOI market projected to grow from $700 million to $3 billion by 2030, Kopin is positioned to serve various segments, budget sensitive with the R15, midrange with our SXGA model, and high resolution with the 2K-R11 model as well.

隨著全球3D AOI 市場預計到2030 年將從7 億美元增長到30 億美元，Kopin 定位於服務各個細分市場，其中包括預算敏感的R15、中端的SXGA 型號以及高分辨率的2K-R11 型號。

In the medical market, our growth continues with another production order for the CR3 wearable surgical monitor from HMDmd.

在醫療市場，我們的成長繼續與 HMDmd 的 CR3 穿戴式手術監視器的另一個生產訂單有關。

Supported by positive feedback from surgical equipment manufacturers, we expect adoption to increase as more surgeons try the CR3 through HMDmd's Tier 1 partnerships.

在手術設備製造商積極回饋的支持下，隨著越來越多的外科醫生透過 HMDmd 的一級合作夥伴嘗試 CR3，我們預計採用率將會增加。

Overall, our book-to-bill ratio has exceeded expectations, and we are negotiating additional substantial orders anticipated by year-end.

總體而言，我們的訂單出貨比超出了預期，我們正在就預計在年底前獲得的額外大量訂單進行談判。

This progress reaffirms our strategy to focus Kopin on defense and high-performance integrated products.

這項進展重申了我們將 Kopin 專注於國防和高性能整合產品的戰略。

Notably, our new internal processes aimed at enhancing return on investment for internally funded research and development are showing promise and early results.

值得注意的是，我們旨在提高內部資助的研發投資回報的新內部流程正在顯示出希望和早期成果。

Internal R&D investments have led to initial purchase orders and strong demand signals for our new products, which are robust, offer broader functionality and command higher average selling prices due to the value they provide.

內部研發投資為我們的新產品帶來了初始採購訂單和強烈的需求訊號，這些新產品功能強大，提供更廣泛的功能，並且由於其提供的價值而具有更高的平均售價。

Quality improvements also continue.

品質改進也在繼續。

Incoming inspection rates at our top customers reached 94% in Q3 and October as well, up from 86% in the previous quarter, positively impacting product gross margins and customer satisfaction.

我們的主要客戶的進貨檢驗率在第三季和 10 月也達到了 94%，高於上一季的 86%，對產品毛利率和客戶滿意度產生了積極影響。

We're making significant strides in quality and organizational evolution with more progress to come.

我們在品質和組織發展方面正在取得重大進展，未來還會取得更多進展。

As our quality standards continue to improve, becoming more stable and predictable, we also need to innovate our systems design processes and manufacturing workflows to meet the rising demand and higher volume production expectations.

隨著我們的品質標準不斷提高，變得更加穩定和可預測，我們還需要創新我們的系統設計流程和製造工作流程，以滿足不斷增長的需求和更高的批量生產期望。

A new strategic focus for 2025 will be enhancing manufacturing and systems automation.

2025 年的新策略重點將是增強製造和系統自動化。

Now turning to other key initiatives, including our One Kopin initiative.

現在轉向其他關鍵舉措，包括我們的 One Kopin 舉措。

In response to increased defense spending in Southeast Asia, Europe, and NATO countries, we have expanded the scope of our European-based 3D AOI sales team.

為了因應東南亞、歐洲和北約國家國防開支的增加，我們擴大了歐洲 3D AOI 銷售團隊的範圍。

They now promote the full range of Kopin products and capabilities to defense customers in Europe and Southeast Asia as well.

他們現在也向歐洲和東南亞的國防客戶推廣 Kopin 的全系列產品和功能。

Early indicators show this strategy is succeeding as we're seeing new opportunities and foreign customers entering our pipeline.

早期指標表明，隨著我們看到新的機會和外國客戶進入我們的管道，這項策略正在取得成功。

One of our foundational strategic initiatives, the fab-lite strategy remains on track.

精簡晶圓廠策略是我們的基本策略舉措之一，目前仍處於正軌。

Kopin continues to partner with multiple fabrication facilities across Asia, Europe, and the United States, specifically for US DoD applications and our four display types.

Kopin 繼續與亞洲、歐洲和美國的多個製造工廠合作，特別是針對美國國防部應用和我們的四種顯示器類型。

Our decision to strengthen OLED on silicon and our microLED capabilities for US Department of Defense applications has been proven timely given the possibility of further supply chain security requirements and potential tariffs under the new administration.

事實證明，鑑於新政府可能提出進一步的供應鏈安全要求和潛在關稅，我們決定加強矽基 OLED 以及我們在美國國防部應用中的 microLED 能力，這項決定是及時的。

Additionally, we're collaborating closely with government and industry partners to build a long-term, higher volume, and more innovative manufacturing approach within the United States.

此外，我們正在與政府和產業合作夥伴密切合作，在美國建立長期、更高產量和更具創新性的製造方法。

Now I'd like to highlight a few additional notable accomplishments from the quarter.

現在我想強調本季取得的一些其他顯著成就。

This quarter, we expanded our medical technology portfolio by introducing proprietary high-resolution fast spatial light modulators or SLMs for use in fluorescence super-resolution microscope systems for biomedical research.

本季度，我們透過引入專有的高解析度快速空間光調製器或 SLM 來擴展我們的醫療技術產品組合，用於生物醫學研究的螢光超解析度顯微鏡系統。

These advanced SLMs enhance image resolution, often down to the molecular level, significantly advancing research capabilities at leading biomedical institutions worldwide.

這些先進的 SLM 增強了影像分辨率，通常可達到分子水平，從而顯著提高了全球領先生物醫學機構的研究能力。

In the defense sector, we partnered with Wilcox Industries on the FUSION CLAW, a cutting-edge head borne information system offering integrated day and night heads-up display solutions.

在國防領域，我們與 Wilcox Industries 合作開發了 FUSION CLAW，這是一種尖端的頭戴式資訊系統，提供整合的日夜平視顯示解決方案。

This partnership is the cornerstone of our IVAS Now strategy, which introduces an integrated visual acuity system for war fighters, supporting day and night capabilities compatible with current night vision goggles and helmet-mounted systems.

這種合作關係是我們 IVAS Now 策略的基石，該策略為戰士推出了整合視敏度系統，支援與當前夜視鏡和頭盔式系統相容的日間和夜間功能。

With millions of night vision goggles in use today, this solution provides immediate market potential by enhancing telemetry and thermal imaging in a heads-up configuration, improving situational awareness.

如今，已有數以百萬計的夜視鏡投入使用，該解決方案透過增強平視配置中的遙測和熱成像功能，提高態勢感知能力，提供了直接的市場潛力。

Additionally, at AUSA, we were featured in the Kinetic suite to showcase our NeuralDisplay technology platform.

此外，在 AUSA 上，我們在 Kinetic 套件中展示了我們的 NeuralDisplay 技術平台。

NeuralDisplay is a sophisticated OLED or microLED hardware and software system that includes embedded sensors for eye tracking, position, and gaze detection with the ability to process this tracking data in real time through Kopin's proprietary AI-powered software within the display's backplane.

NeuralDisplay 是一種複雜的 OLED 或 microLED 硬體和軟體系統，包括用於眼睛追蹤、位置和凝視檢測的嵌入式感測器，能夠透過顯示器背板內的 Kopin 專有的人工智慧軟體即時處理這些追蹤數據。

This real-time data just optimizes user experience in high-stakes environments.

這些即時數據只是優化了高風險環境中的使用者體驗。

The platform has now reached alpha testing, marking a major milestone in the development of our NeuralDisplay architecture.

該平台現已進入 alpha 測試，標誌著我們 NeuralDisplay 架構開發的一個重要里程碑。

We believe this display system will be an ideal fit for the next generation of defense visual augmentation systems.

我們相信此顯示系統將非常適合下一代國防視覺增強系統。

It also has attracted significant interest from consumer spatial computing manufacturers, thanks to its ability to reduce size, weight, and power consumption while maintaining high image quality, eye and pupil tracking, and dynamic controls.

它也吸引了消費者空間運算製造商的極大興趣，因為它能夠在保持高影像品質、眼睛和瞳孔追蹤以及動態控制的同時減少尺寸、重量和功耗。

We are extremely excited about this new technology.

我們對這項新技術感到非常興奮。

Currently, we are collaborating with several defense and consumer companies on innovative design approaches, software integrated -- pardon me, software integration strategies and exploring potential new business models.

目前，我們正在與多家國防和消費公司在創新設計方法、軟體整合（請原諒我）、軟體整合策略以及探索潛在的新商業模式方面進行合作。

As we look to the future and see our business fundamentals strengthening, we're experiencing favorable market dynamics in the AR/VR sector that align with our mission and technology road maps.

當我們展望未來並看到我們的業務基礎不斷加強時，我們在 AR/VR 領域正在經歷有利的市場動態，這與我們的使命和技術路線圖一致。

Additionally, geopolitical factors and the new administration have created strong tailwinds for our business.

此外，地緣政治因素和新政府為我們的業務創造了強勁的推動力。

Given these factors, we're increasingly optimistic about our financial trajectory for 2025 and beyond.

考慮到這些因素，我們對 2025 年及以後的財務軌跡越來越樂觀。

With that, I'll now turn the call over to our CFO, Rich Sneider, to review our results from the third quarter in further detail.

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第三季的業績。

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 third quarter of 2024.

轉向我們 2024 年第三季的財務表現。

Total revenues from Q3 2024 were $13.3 million versus $10.6 million for the prior year, a 26% increase year over year.

2024 年第三季的總營收為 1,330 萬美元，而上年同期為 1,060 萬美元，年增 26%。

Product revenues for the third quarter ended September 28, 2024, were $10.9 million compared to $5.5 million in the third quarter of September 30, 2023.

截至2024年9月28日的第三季產品營收為1,090萬美元，而2023年9月30日第三季的產品營收為550萬美元。

The increase is a result -- the increase in product revenues was the result of higher defense product revenues, which increased $5.4 million year over year.

這一成長是一個結果——產品收入的成長是國防產品收入增加的結果，該收入比去年同期增加了 540 萬美元。

In the third quarter of 2024, funded research and development revenues were $2.3 million, a decrease of $2.7 million as compared to Q3 of 2023 due to the completion of several programs like the monochrome microLED program, which is now entering low-volume initial production.

2024 年第三季度，受資助的研發收入為 230 萬美元，較 2023 年第三季減少 270 萬美元，原因是單色 microLED 專案等多個專案的完成，目前該專案正進入小批量初始生產。

Cost of product revenues for the third quarter of '24 were $8.3 million or 76% of net product revenues compared with $5.4 million or 99% of net product revenues in the third quarter of '23.

24 年第三季的產品收入成本為 830 萬美元，佔產品淨收入的 76%，而 23 年第三季的產品成本為 540 萬美元，佔產品淨收入的 99%。

The decrease in cost of product revenues as a percent of sales was a result of a decrease in expected costs because of lower estimated rework costs, essentially improved quality.

產品收入成本佔銷售額的百分比下降是由於預期返工成本降低、品質顯著提高而導致預期成本下降。

R&D expenses for the third quarter of '24 were $2.6 million compared to $3.1 million in the year-ago quarter.

2024 年第三季的研發費用為 260 萬美元，去年同期為 310 萬美元。

This was primarily due to a decrease in funded R&D expense of approximately $1.2 million on US defense programs that were previously noted were completed.

這主要是由於先前提到的已完成的美國國防項目的資助研發費用減少了約 120 萬美元。

This was partially offset by an increase of $700,000 in internal R&D expense for process improvement.

這被用於流程改善的內部研發費用增加 70 萬美元所部分抵銷。

SG&A expenses were $5.2 million in the third quarter of '24 compared to $4.8 million in the third quarter of '23.

2024 年第三季的銷售、行政管理費用為 520 萬美元，而 2023 年第三季的銷售管理費用為 480 萬美元。

The increase was primarily due to an increase in legal fees of $400,000, partially offset by a decrease in public relations fees of $100,000.

增加的主要原因是法律費用增加了 40 萬美元，但公共關係費用減少了 10 萬美元，部分抵消了增加。

Legal expenses associated with the BlueRadios matter in the third quarter of 2024 and 2023 were $1.5 million and $1.2 million, respectively.

2024 年和 2023 年第三季與 BlueRadios 事件相關的法律費用分別為 150 萬美元和 120 萬美元。

With the trial portion of the lawsuit behind us and potential appeals process in front of us, we expect legal fees to normalize at a much lower level than recently experienced.

隨著訴訟的審判部分結束以及潛在的上訴程序即將到來，我們預計法律費用將正常化到比最近低得多的水平。

We believe the appeals process involves much less expense than funding the trial.

我們認為上訴程序涉及的費用比資助審判少得多。

Other expense net for Q3 of '24 includes a $1.1 million impairment loss on equity investments.

2024 年第三季的其他費用淨額包括 110 萬美元的股權投資減損損失。

Turning to the bottom line, the net loss for the quarter of '24 was $3.5 million or $0.03 per share compared with a net loss of $2.5 million or $0.02 per share for the third quarter of '23.

談到利潤，24 年季度的淨虧損為 350 萬美元，即每股 0.03 美元，而 23 年第三季的淨虧損為 250 萬美元，即每股 0.02 美元。

The amounts discussed above are based on our current estimates and listeners should review our Form 10-Q for the nine months ended September 28 -- excuse me, '24, for any possible changes and, of course, additional information and filings.

上面討論的金額是基於我們目前的估計，聽眾應該查看截至 9 月 28 日的九個月的 10-Q 表格 - 對不起，'24，是否有任何可能的更改，當然還有其他資訊和備案。

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。

Thanks, Rich.

謝謝，里奇。

This quarter's results demonstrate our ongoing success in delivering solutions, which improve the human experience, performance, and save lives.

本季的業績證明了我們在提供解決方案方面持續取得的成功，這些解決方案改善了人類體驗、績效並拯救了生命。

Our operational improvements, stronger customer relationships, and momentum in orders give us greater visibility and a clear plan towards achieving sustainable net income profitability.

我們的營運改善、更牢固的客戶關係和訂單勢頭使我們獲得了更大的知名度和實現可持續淨利潤盈利能力的明確計劃。

We continue to strengthen margins through improved quality rates, cost controls, and strategic investments in our products, automation, and our talented and dedicated workforce.

我們透過提高品質率、成本控制以及對產品、自動化和才華橫溢、敬業的員工隊伍的策略性投資，持續提高利潤率。

Our pipeline of qualified opportunities has grown significantly in recent quarters, largely driven by the US need to replenish stockpiles, modernization of defense technology and weaponry, and respond to recent geopolitical developments.

最近幾個季度，我們的合格機會大幅增加，這主要是由於美國需要補充庫存、國防技術和武器現代化以及應對最近的地緣政治發展。

Increased sovereign and NATO spending further boost this trend.

主權和北約支出的增加進一步推動了這一趨勢。

We anticipate that these new partnerships and progress will fuel full rate production and they'll lead to contributing larger future returns.

我們預計這些新的合作夥伴關係和進展將推動全速生產，並將帶來更大的未來回報。

To capture these opportunities and accelerate our market momentum, we've recently expanded our North American business development team with two new hires, and we retained a consultant specializing in consumer applications.

為了抓住這些機會並加速我們的市場勢頭，我們最近招募了兩名新員工，擴大了我們的北美業務開發團隊，並聘請了一位專門從事消費者應用程式的顧問。

Thank you all for your time today, for your interest in Kopin.

感謝大家今天抽出寶貴的時間，感謝大家對 Kopin 的興趣。

I'd also like to thank and extend our gratitude to our employees, our customers, and stakeholders for their dedication and continued support.

我還要感謝我們的員工、客戶和利害關係人的奉獻和持續支持。

With that, operator, we'll now offer time to take some questions.

接線員，現在我們將提供一些時間來回答一些問題。

(Operator Instructions) Jaeson Schmidt, Lake Street.

（操作員指示）Jaeson Schmidt，湖街。

Thanks for taking my questions and congrats on the strong results.

感謝您回答我的問題，並祝賀取得了優異的成績。

Michael, I want to dig in a little bit on the international market.

邁克爾，我想深入了解國際市場。

You noted some nice traction there.

你注意到那裡有一些不錯的牽引力。

Just curious where you're seeing that?

只是好奇在哪裡看到的？

And I guess, relatedly, is your sales infrastructure to address the international market fully built out at this point?

我想，與此相關的是，您目前應對國際市場的銷售基礎設施是否已完全建成？

So international, I think, is a growth opportunity for us, Jaeson.

我認為，國際化對我們 Jaeson 來說是一個成長機會。

Thanks for the question.

謝謝你的提問。

Right now, the international business is actually, I'd say, less than 5% of our total revenue this year.

我想說，目前國際業務實際上還不到我們今年總收入的 5%。

We do see that exceeding our expectations next year and the year after, just simply because of geopolitical issues in Israel, Ukraine, and some other hotspots that currently need the technology that we have.

我們確實看到明年和後年超出了我們的預期，只是因為以色列、烏克蘭和其他一些目前需要我們擁有的技術的熱點地區的地緣政治問題。

We also see the perturbation of NATO requesting and demanding 2% of GDP actually be spent.

我們也看到北約的不安，要求實質支出佔 GDP 的 2%。

So I think as we move forward, international business for us in defense specifically is going to grow exponentially.

因此，我認為隨著我們的前進，我們在國防領域的國際業務將呈指數級增長。

Moreover, we also see interesting trends in the medical side of the business with future potential medical customers globally here looking at the CR3 module as well as those displays for high-end microscopes as we talked about.

此外，我們也看到了醫療方面的有趣趨勢，全球未來的潛在醫療客戶正在關注 CR3 模組以及我們談到的高階顯微鏡顯示器。

So overall, I think international is going to grow for us, and that's the pivot that we made with the 3D AOI team, which resides mostly in Europe.

總的來說，我認為我們的國際化將會不斷發展，這是我們與 3D AOI 團隊合作的重點，該團隊主要位於歐洲。

But we're not fully built out for international sales just yet.

但我們還沒有完全做好國際銷售的準備。

We expect to make some small investments and augmentations, if you will, to service that business next year and in the future.

如果您願意的話，我們預計會進行一些小額投資和擴充，以便為明年和未來的業務提供服務。

Okay, that's helpful.

好的，這很有幫助。

And then I know you noted kind of a strong book-to-bill year to date.

然後我知道你注意到今年迄今為止的訂單出貨比強勁。

Just curious what that number was for Q3.

只是好奇第三季的數字是多少。

Q3, it was slightly below 1:1.

Q3，略低於1:1。

Got you.

明白你了。

And then just the last one for me, and I'll jump back into queue.

然後是我的最後一個，我會跳回隊列。

Obviously, it's early, but would just love to hear your thoughts on how your business might be potentially impacted with the change in administration?

顯然，現在還為時過早，但我很想聽聽您對管理變革可能如何影響您的業務的想法？

Sure.

當然。

So I think firstly, I think the new administration, based on what we understand today, which is early, is going to be good for Kopin in the long run, mainly because of the strong emphasis on NATO to spend 2% of GDP, which was the previous administration's big focus, and I think that's going to continue, number one.

所以我認為，首先，我認為新政府，根據我們今天的理解，從長遠來看，這對科平來說是有好處的，主要是因為強調北約將支出佔GDP的2%，這對科平來說是有利的。

Number two, I see the budget process, including plus-up requirements for defense spending in the United States.

第二，我看到了預算流程，包括美國國防開支的附加要求。

So I think that's a second tailwind that we see.

所以我認為這是我們看到的第二個順風車。

And then the third tailwind that we see with the new administration is just the ability for smaller companies, small cap companies like Kopin to grow.

然後，我們在新政府中看到的第三個推動力就是像 Kopin 這樣的小型公司、小型股公司的成長能力。

And I think that's a big focus of the new administration.

我認為這是新政府的重點。

So pound for pound, we see this as a positive for Kopin.

因此，我們認為這對科平來說是正面的。

Perfect.

完美的。

Appreciate the color.

欣賞顏色。

Thanks a lot, guys.

非常感謝，夥計們。

And one other note, Jaeson, real quick.

還有一張紙條，Jaeson，很快。

Although our book-to-bill this quarter was not positive, the book-to-bill for the year remains ahead of schedule and positive.

儘管本季我們的訂單出貨比並不樂觀，但今年的訂單出貨比仍然提前且積極。

So I wanted to make that distinction.

所以我想做出這樣的區分。

Victor Santiago, Stifel.

維克多·聖地亞哥，斯蒂菲爾。

This is Victor on for Matt Sheerin.

我是維克多 (Victor) 替馬特謝林 (Matt Sheerin) 發言。

Just a question on revenue in the quarter.

只是關於本季營收的問題。

It was a bit better than we had expected of that kind of mid-single-digit sequential growth.

這比我們預期的中個位數環比成長好一些。

Was that a function of pull-in orders from Q4?

這是第四季拉入訂單的作用嗎？

Or was that just your ability to ramp new programs in the quarter?

或者這只是您在本季推出新項目的能力？

It was a combination of product mix and our ability to produce.

這是產品組合和我們生產能力的結合。

Remember, we're on 606.

請記住，我們撥打的是 606。

So essentially, our revenues are not based on shipment.

所以本質上，我們的收入不是基於出貨量。

They're really based on percent completion.

它們實際上是基於完成百分比。

So to the extent the supply chain is flowing nicely, it allows us to get ahead and build product.

因此，只要供應鏈流動良好，我們就能取得進展並建立產品。

And so the supply chain worked very well this quarter, and also, we had a favorable product mix.

因此，本季供應鏈運作良好，而且我們擁有有利的產品組合。

Some of the smaller orders that you see actually have much bigger gross margins and are much more profitable.

您看到的一些較小的訂單實際上具有更大的毛利率並且利潤更高。

Got it.

知道了。

And then I think last quarter, you had talked about growing gross margin sequentially through the year.

然後我想上個季度，您談到了全年毛利率的連續成長。

You guys saw a nice bump here in Q3.

你們在第三季看到了一個不錯的提升。

Can we expect that to continue go into Q4?

我們可以預期這種情況會持續到第四季嗎？

That's the plan.

這就是計劃。

(Operator Instructions) Kevin Dede, H.C. Wainwright.

（操作員說明）Kevin Dede, H.C.溫賴特。

Michael, would you mind diving into the NeuralDisplay a little bit more?

Michael，您介意深入了解一下 NeuralDisplay 嗎？

I mean, you spoke to specific interest both on DoD and the consumer side.

我的意思是，您談到了國防部和消費者的具體利益。

You've got a new consumer applications consultant.

您有了一位新的消費者應用顧問。

I know it's early, I get it.

我知道現在還早，我懂了。

But if you could give us a little more color there, we see that as an exciting opportunity for Kopin.

但如果你能給我們更多的色彩，我們認為這對科平來說是一個令人興奮的機會。

Sure.

當然。

From a standpoint of NeuralDisplay, we see the market going -- basically repeating history.

從 NeuralDisplay 的角度來看，我們看到市場正在發展——基本上是在重複歷史。

If you look at original cell phones as an example, they were built with individual components, not much integration.

如果您以原始手機為例，它們是由單獨的組件構建的，沒有太多整合。

And then over time, ICs won the day, integrated circuits won the day.

隨著時間的推移，IC 贏得了勝利，集成電路贏得了勝利。

We see that same sort of trend with spatial computing devices or AR/VR goggles, that sensor fusion systems or integrated circuits need to drive that innovation.

我們在空間運算設備或 AR/VR 護目鏡上看到了相同的趨勢，感測器融合系統或積體電路需要推動這種創新。

And NeuralDisplay is a great example of that.

NeuralDisplay 就是一個很好的例子。

It removes six cameras from some of the spatial computing devices.

它從一些空間計算設備中刪除了六個攝影機。

Six cameras is very costly, very high power and creates a lot of weight on the nose.

六個攝影機非常昂貴，功率非常高，並且會給機頭帶來很大的重量。

So we think NeuralDisplay has a tremendous value proposition in both consumer and medical as well as obviously defense.

因此，我們認為 NeuralDisplay 在消費者和醫療以及國防領域都具有巨大的價值主張。

On the consumer side of things, we think all the consumer companies at this point in AR/VR are back to the drawing board, which is good news for us because we're further down the path with NeuralDisplay.

在消費者方面，我們認為目前 AR/VR 領域的所有消費公司都已回到繪圖板，這對我們來說是個好消息，因為我們在 NeuralDisplay 的道路上走得更遠。

I can't talk about some of the things we're working on because they are under NDA at this point, but we are making pretty substantial progress thus far.

我無法談論我們正在做的一些事情，因為它們目前處於保密協議之下，但到目前為止我們正在取得相當大的進展。

Has the company decided on whether it might or might not offer a demo of it at CES?

該公司是否已決定是否在 CES 上提供其演示？

I know that had or was being considered at some point.

我知道在某個時候已經或正在考慮這一點。

We're still trying.

我們還在努力。

It's up for debate.

這有待辯論。

We're struggling with it, quite frankly, to get a better image quality out of it, and we still have a pretty strong plan to make it to the CES with the NeuralDisplay as an actual display running our software and the AI.

坦白說，我們正在努力解決這個問題，以獲得更好的圖像質量，而且我們仍然有一個非常強大的計劃，將 NeuralDisplay 作為運行我們的軟體和人工智慧的實際顯示器進入 CES。

As you can imagine, in the last 18 months, that's been a Herculean lift for our engineering teams.

正如您可以想像的那樣，在過去 18 個月中，這對我們的工程團隊來說是一個巨大的提升。

So still TBD.

所以仍然待定。

We're -- that's the plan, but we are struggling with it.

我們——這就是計劃，但我們正在努力實現它。

Regarding -- I think it was Victor's question on the change in the administration.

關於－我認為這是維克多關於政府變動的問題。

I'm wondering if you've looked sort of the next layer of the onion and your supply chain and the potential for tariffs to impact that.

我想知道您是否關注洋蔥的下一層和您的供應鏈以及關稅對其產生影響的可能性。

How might you be hedging yourself?

您如何對沖自己？

Great question.

很好的問題。

Thankfully, one of the first strategic initiatives that we had, Kevin, was our fab-lite model and the concern around our Chinese OLED deposition supply chain.

值得慶幸的是，Kevin，我們的首要策略舉措之一是我們的精簡晶圓廠模式以及對中國 OLED 沉積供應鏈的擔憂。

I'm very pleased to report that we've moved our sensitive US DoD applications to a new provider that is US DoD approved.

我很高興地報告，我們已將敏感的美國國防部應用程式轉移到美國國防部批准的新提供者。

The vast majority of our components will have a dual source US DoD as well as our Chinese deposition partner specific to OLED moving forward, and we'll be completing that transition this quarter.

我們的絕大多數組件將擁有美國國防部和我們專門針對 OLED 的中國沉積合作夥伴的雙源，我們將在本季度完成這項過渡。

So very pleased and proud of the team for their progress.

對於團隊的進步感到非常高興和自豪。

And more importantly, we're actually seeing better quality results and better performance out of our new partner on our OLED displays.

更重要的是，我們實際上看到新合作夥伴在 OLED 顯示器上提供了更好的品質結果和更好的效能。

So tremendous progress in that area, and it was very timely that we took that decision when I came in a couple of years ago.

該領域取得瞭如此巨大的進展，幾年前我進來時，我們做出了這個決定，這是非常及時的。

So that strategy is now proving positive for us.

因此，這一策略現在對我們來說是積極的。

So have you -- I guess I'm wondering maybe if there's any way to quantify that.

你也是——我想我想知道是否有任何方法可以量化這一點。

Do you have to worry about a rotating manufacturing with a change in import policy?

您是否需要擔心進口政策變更導致製造業輪調？

No, not necessarily.

不，不一定。

No, it's more about we build our backplanes through either Taiwanese or Korean fabs.

不，更多的是我們透過台灣或韓國晶圓廠製造背板。

And then the deposition process can happen anywhere in the world where we see a technology benefit or performance benefit or cost benefit as an example.

然後，沉積過程可以發生在世界任何地方，例如我們看到技術優勢、性能優勢或成本優勢的地方。

And that's part of the fab-lite strategy is we will go to the partners that have the best cost, best quality and best performance.

這是輕晶圓廠策略的一部分，我們將選擇具有最佳成本、最佳品質和最佳性能的合作夥伴。

So that allows us to do that, which is take our backplane designs and then deposit OLED or microLED material where it makes best sense for our customer base, the geopolitical issues.

因此，我們能夠做到這一點，即採用我們的背板設計，然後在對我們的客戶群和地緣政治問題最有意義的地方沉積 OLED 或 microLED 材料。

So it just makes us much more flexible.

所以它只會讓我們更有彈性。

But as I mentioned in my prepared remarks, we also have an advocacy for a larger footprint here in the United States for Kopin.

但正如我在準備好的發言中提到的，我們也主張科平在美國有更大的足跡。

And that larger footprint is something that we're actively working on with the government, the government customers.

我們正在與政府、政府客戶積極合作，以擴大足跡。

And I'm very pleased to report that the government customer is supporting us in that endeavor, whether that be through DPA or CHIPS Act funding, but we do have a larger advocacy around building out a footprint here in the United States for all of our technology needs for the US DoD.

我很高興地向大家報告，政府客戶正在支持我們的這項努力，無論是透過 DPA 還是 CHIPS 法案提供資金，但我們確實有更廣泛的倡導，為我們所有的人在美國建立足跡。的技術需求。

Well, I'd imagine that's a pretty long lead time, though, right, to -- yeah, okay.

嗯，我想這是一個相當長的準備時間，不過，對，是的，好吧。

On backlog, Michael, help me with some of the numbers.

關於積壓工作，邁克爾，請幫我處理一些數字。

You mentioned, I think, in your prepared remarks, a $75 million order number, which I think is up from $55 million when you last talked about the June quarter.

我想，您在準備好的發言中提到了 7500 萬美元的訂單數，我認為這個數字高於您上次談到 6 月季度時的 5500 萬美元。

I'm wondering if I'm in the right ballpark on those and what drove the big increase?

我想知道我在這些方面的判斷是否正確，是什麼推動了大幅成長？

You're exactly right.

你說得完全正確。

From Q2, we were sitting with $55 million of purchase orders in the calendar year at that point.

從第二季開始，我們當年的採購訂單就達到了 5,500 萬美元。

Our expectations due to several negotiations that are ongoing that we'll receive in the realm of $20 million of new orders for this quarter.

根據正在進行的多項談​​判，我們預計本季我們將收到價值 2000 萬美元的新訂單。

We might see a little bit of creep over the Christmas holiday into Q1.

我們可能會在聖誕節假期期間看到第一季的一些增長。

But my sense is right now, the negotiations should land us with those orders in Q4.

但我現在的感覺是，談判應該會讓我們在第四季獲得這些訂單。

And again, if we do end up with $75 million of purchase orders for this year, that would be a record for our 40-year-old company.

再說一次，如果我們今年的採購訂單確實達到 7500 萬美元，這將是我們這家擁有 40 年歷史的公司的記錄。

Any -- I appreciate that.

任何——我很感激。

Congratulations.

恭喜。

Is there any more insight?

還有更多的見解嗎？

Or should we look to pretty much what you focused on, mostly DoD, foreign and domestic and medical?

或者我們應該關注您關注的大部分內容，主要是國防部、國外、國內和醫療？

I think that's accurate.

我認為這是準確的。

What we're expecting this quarter is some influx of thermal weapon sight orders for production next year as well as our helmet-based programs for rotary wing and fixed wing applications.

我們預計本季將有一些熱武器瞄準器訂單湧入，以供明年生產，以及我們用於旋轉翼和固定翼應用的基於頭盔的項目。

So we're expecting orders.

所以我們正在等待訂單。

That customer for the fixed wing, we already mentioned earlier in the call, we're expecting orders for carry-on production.

我們之前在電話中已經提到過，該固定翼客戶正在等待隨身生產的訂單。

The rotary wing customer is Elbit, and they are otherwise engaged, as you can imagine, Kevin, in Israel at the moment.

旋翼機客戶是埃爾比特，正如你可以想像的那樣，他們目前在以色列，凱文。

So we've been expecting those orders for quite some time, and we are seeing light at the end of the tunnel to receive those orders for our rotary wing applications this quarter.

因此，我們期待這些訂單已經有一段時間了，我們看到隧道盡頭的曙光，本季度我們的旋翼應用將收到這些訂單。

Okay.

好的。

Last question for me before I hop back in.

在我回來之前問我的最後一個問題。

Understand that the -- that Judge Kane is going to consider the ruling in Massachusetts.

了解凱恩法官將考慮馬薩諸塞州的裁決。

And I was wondering, number one, whether or not you have any insight on how that might be going.

我想知道，第一，你是否對事情的進展有任何見解。

And number two, Rich talked to, I think, $1.2 million and $1.5 million in litigation-related expense, I think, in the September quarter this year and last, but I got confused on which one was which.

第二，我想，在今年和去年的九月季度，里奇談到了 120 萬美元和 150 萬美元的訴訟相關費用，但我對哪一個是哪一個感到困惑。

And what would you expect that litigation expense to fall to in December -- in the December quarter?

您預計 12 月（即 12 月所在季度）的訴訟費用會下降到多少？

So $1.5 million is '24. $1.2 million is '23, okay?

所以 150 萬美元就是「24」。 120 萬美元是 23 歲，好嗎？

And historically, we're somewhere -- now at some point, there may be an appeal and there will be a chunk of expense that we estimate will be $500,000 to $600,000.

從歷史上看，我們在某個時刻——現在在某個時刻，可能會出現上訴，並且會有一大筆費用，我們估計將達到 50 萬美元到 60 萬美元。

When that's going to happen, we don't know.

當這種情況發生時，我們不知道。

It's all dependent on when the judge ultimately puts out an opinion.

這完全取決於法官最終何時提出意見。

Otherwise, we run about $150,000 to $200,000 a quarter in legal expenses between patents and just normal public company stuff.

除此之外，我們每季在專利和普通上市公司費用之間的法律費用約為 15 萬至 20 萬美元。

And we do not have any visibility into when Judge Kane in Colorado will render his opinion.

我們不知道科羅拉多州的凱恩法官何時會發表意見。

Thank you for offering that, gentlemen.

謝謝你們提供這一點，先生們。

I appreciate you entertaining my questions.

感謝您解答我的問題。

Congrats on the nice job in the quarter.

恭喜本季的出色工作。

And we have no further questions in the queue at this time.

目前我們隊列中沒有其他問題。

I'll turn the program back over to Michael Murray.

我會把這個計劃轉回給邁克爾·莫瑞。

Thank you, operator.

謝謝你，接線生。

I just wanted to say thank you to the tremendous team here at Kopin for their focus, dedication, and exemplary results this quarter.

我只想對 Kopin 的優秀團隊表示感謝，感謝他們在本季的專注、奉獻和出色的業績。

It's a great milestone in our path to further revenue and gross margin expansion.

這是我們進一步擴大收入和毛利率的道路上的一個重要里程碑。

And we thank everyone for joining us today.

我們感謝大家今天加入我們。

Thank you very much.

非常感謝。

This does conclude today's program.

今天的節目到此結束。

Thank you for your participation.

感謝您的參與。

You may disconnect at any time, and have a wonderful day.

您可以隨時斷開連接，祝您有美好的一天。