Kopin Corp (KOPN) 2021 Q2 法說會逐字稿

Good day and welcome to the Kopin Corporation's Second Quarter 2021 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Richard Sneider. Please go ahead, sir.

美好的一天，歡迎參加 Kopin Corporation 2021 年第二季財報電話會議。今天的會議正在錄製中。這次，我想把會議交給理查‧史奈德。請繼續，先生。

Thank you, operator. Good morning and welcome, everyone, and thank you for joining us this morning. John will begin today's call with a discussion of our strategy, technology and markets. I will then go through the first -- second quarter results at a high level. John will conclude our prepared remarks, and then we'll be happy to take your questions.

謝謝你，接線生。早安，歡迎大家，感謝您今天早上加入我們。約翰將在今天的電話會議開始時討論我們的策略、技術和市場。然後我將簡要介紹第一季和第二季的業績。約翰將結束我們準備好的發言，然後我們很樂意回答您的問題。

I would like to remind everyone during today's call taking place on Tuesday, August 3, 2021 we will be making forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on the company's current expectations, projections, beliefs and estimates, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. 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 & Exchange Commission. The company undertakes no obligation to update the forward-looking statements during today's call.

我想提醒大家，在2021 年8 月3 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。這些聲明基於公司當前的預期、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。潛在風險包括但不限於對我們產品的需求、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。該公司不承擔在今天的電話會議期間更新前瞻性陳述的義務。

And with that, I'll turn it over to John.

有了這個，我會把它交給約翰。

Thank you, Rich. Good morning and thank you for joining us to discuss our second quarter results. I first want to start by express our hope that you and your families continue to stay safe. We continue to see growing demand for our products across our key business segments, including defense, industrial and consumer.

謝謝你，里奇。早安，感謝您加入我們討論我們的第二季業績。首先，我想表達我們希望您和您的家人繼續保持安全。我們繼續看到我們的關鍵業務領域（包括國防、工業和消費者）對我們產品的需求不斷增長。

In our defense business, we remain on track on many development programs. 2 new programs entered low-rate initial production during our second quarter and the third expect to enter low-rate production in the fourth quarter. During this quarter, we announced an additional $1.6 million follow-up order for our high brightness liquid crystal display for the F-35 Joint Strike Fighter program with deliveries scheduled through the second quarter of 2022. Additional orders are expected throughout the lifetime of this program. For the FWS-I thermal weapon sight program, at our customer requests we reduced shipments of our product during the quarter, while our customers making system and production enhancements.

在我們的國防業務中，我們的許多開發計劃仍按計劃進行。兩個新項目在第二季進入低速初始生產，第三個項目預計在第四季度進入低速生產。在本季度，我們宣佈為 F-35 聯合攻擊戰鬥機項目追加 160 萬美元的高亮度液晶顯示器後續訂單，預計交付時間為 2022 年第二季度。預計在該項目的整個生命週期內還會有額外訂單。對於 FWS-I 熱武器瞄準器項目，根據客戶的要求，我們減少了本季產品的出貨量，同時我們的客戶對系統和生產進行了改進。

We are working closely with our customer, but expect the lower shipment rate to continue during the third quarter. We expect to increase the rate and make up some of the shortfall in the fourth quarter. Despite this short-term slowdown, there's no change in the overall profile of the program and demands remains very strong. I would like to stress that there is no change in the overall outlook and the profile of the program, and in fact we expect soon to receive a significant follow-up order for this program. It will continue delivery into 2022.

我們正在與客戶密切合作，但預計第三季出貨率將繼續下降。我們預計第四季會提高利率並彌補部分缺口。儘管存在短期放緩，但該計劃的整體狀況沒有變化，需求仍然非常強勁。我想強調的是，該計劃的整體前景和概況沒有變化，事實上，我們預計很快就會收到該計劃的重要後續訂單。它將繼續交付到 2022 年。

Also we are pleased with strong demand from our enterprise customers in Q2 and expect the momentum to continue. As discussed with our previous call, we have continued to increase our R&D activities as we see great opportunities in the coming augmented and virtual reality space. In fact, our customer fund R&D revenue increased approximately 60% year-over-year as a result of growing interest is in our next-generation displays and display technologies.

此外，我們對第二季度企業客戶的強勁需求感到高興，並預計這一勢頭將持續下去。正如我們之前的電話會議所討論的那樣，我們繼續增加研發活動，因為我們看到了即將到來的擴增和虛擬實境領域的巨大機會。事實上，由於人們對我們的下一代顯示器和顯示技術的興趣日益濃厚，我們的客戶基金研發收入年增了約 60%。

We achieved several very important display technology advancements in the quarter, including the world's first 35,000 nit HDR green OLED microdisplay. This leading-edge display can incorporate our dual stack OLED structure for ultra-high brightness and unique patent-pending pixel structure backplane architecture for super-high dynamic range operation. This is a big milestone, not just for Kopin, but for AR and VR applications across all sectors. Our new HDR green OLED microdisplays is ideal for use in conditions ranging for very dark night to very bright daylight.

我們在本季取得了幾項非常重要的顯示技術進步，包括世界上第一個 35,000 尼特 HDR 綠色 OLED 微顯示器。這款領先的顯示器可以結合我們的雙堆疊 OLED 結構以實現超高亮度，以及獨特的正在申請專利的像素結構背板架構以實現超高動態範圍操作。這不僅對 Kopin 來說是一個重要的里程碑，對於所有產業的 AR 和 VR 應用也是如此。我們的新型 HDR 綠色 OLED 微型顯示器非常適合在極黑的夜晚到極亮的日光等條件下使用。

In addition, we recently announced the successful development of All-Plastic Pancake Optics for VR, AR and MR applications. This is another exciting achievement for Kopin and is believed to be the first All-Plastic Pancake Optics in the world. While the Pancake Optics are much thinner, they are conventional optics. It is important to note that previous Pancake Optics need at least one spherical glass lens to avoid image (inaudible) caused by birefringence of currently available plastic material. Our new patent-pending All-Plastic Pancake Optics with aspherical lens is sufficiently lighter than Pancake glass optics while also providing a better image quality at a much lower cost.

此外，我們最近也宣布成功開發出適用於 VR、AR 和 MR 應用的全塑薄餅光學元件。這是 Kopin 的另一項令人興奮的成就，被認為是世界上第一個全塑膠薄餅光學元件。雖然 Pancake 光學元件要薄得多，但它們是傳統光學元件。值得注意的是，以前的 Pancake Optics 需要至少一個球面玻璃透鏡，以避免由目前可用塑膠材料的雙折射引起的圖像（聽不清楚）。我們正在申請專利的新型全塑膠薄餅光學元件配備非球面透鏡，比薄餅玻璃光學元件輕得多，同時也能以更低的成本提供更好的影像品質。

For years, bulky and heavy headset had hindered consumer adoption AR and VR glasses. Our new plastic Pancake optics enable an entirely new avenue for the industry to design, manufacture and manufacture stylish, super light, compact VR, AR and MR high-performance smart glasses and headsets that we believe consumers will want to have. We have received strong interest from the market.

多年來，笨重的耳機阻礙了消費者採用 AR 和 VR 眼鏡。我們的新型塑膠 Pancake 光學元件為業界設計、製造和製造時尚、超輕、緊湊的 VR、AR 和 MR 高性能智慧眼鏡和耳機開闢了一條全新途徑，我們相信消費者會想要擁有這些產品。我們收到了市場的強烈興趣。

As in Q2 also, we announced a multiyear development agreement with a leading global electronic company for full color led microdisplays on silicon and expect to demonstrate a 1-inch diagonal full color 2K x 2K LED microdisplay within 24 months. As a reminder, LED microdisplays have a potential for super high brightness, low power consumption, high contrast and wide viewing angle, which are all important features for many applications, including see-through augmented reality and mixed reality applications.

與第二季一樣，我們宣布與一家全球領先的電子公司就全彩 LED 矽片微型顯示器達成多年開發協議，並預計在 24 個月內展示 1 吋對角線全彩 2K x 2K LED 微型顯示器。需要提醒的是，LED 微顯示器具有超高亮度、低功耗、高對比度和寬視角的潛力，這些都是許多應用的重要特性，包括透視擴增實境和混合實境應用。

We're excited to collaborate with our partner, which already has achieved some important milestones in color led microdisplays. It's also important to note that this collaboration will expand our microdisplay portfolio, making us the world's only provider of a complete suite of LCD, LCOS, OLED and LED microdisplay on silicon. Our breadth of technology and product capability put Kopin in the unique position of being able to provide our customers solutions that best fit their product and application needs.

我們很高興與我們的合作夥伴合作，他們已經在彩色 LED 微顯示器領域取得了一些重要的里程碑。值得注意的是，此次合作將擴大我們的微顯示器產品組合，使我們成為全球唯一提供全套 LCD、LCOS、OLED 和 LED 矽微顯示器的供應商。我們廣泛的技術和產品能力使 Kopin 處於獨特的地位，能夠為客戶提供最適合其產品和應用需求的解決方案。

I would also like to stress my recent participation in the 3 part webinar series AR and VR: The Paradigm Shift to Smart Glasses Starts now, which drew over 500 participants during the live event. Many of them are actively involved in the next-generation smart glasses and headsets. During the 3-part series, we discussed the past, covering the initial efforts to create AR, VR solutions. The present addressing the current stick of the active technologies and the future, which address the future of AR, VR smart glasses, offering a road map to successful product developments.

我還想強調一下我最近參加的由 3 部分組成的網路研討會系列 AR 和 VR：向智慧眼鏡的範式轉變現已開始，該研討會在現場活動期間吸引了 500 多名參與者。他們中的許多人積極參與下一代智慧眼鏡和耳機的開發。在這個由 3 部分組成的系列中，我們討論了過去，涵蓋了創建 AR、VR 解決方案的最初努力。目前的活動涉及當前的活躍技術和未來，涉及AR、VR智慧眼鏡的未來，為成功的產品開發提供了路線圖。

All 3 segments have active and engaged participation from the attendees and are available on Kopin's website at www.kopin.com. We are pleased and committed to our strategy. In short, while we maintain our strong momentum in our growing revenue-generating businesses in defense and enterprise sectors, we continue aggressively to innovate and advance our technology for what we see as a growing wave of consumer AR, VR and MR products and applications. Many of you may have followed the increasing discussion of the transformational arrival of the Metaverse. Metaverse definition is still not too well defined. However, in my view, as we discussed in my webinar, it is composed of AR, VR hardware, smart glasses and platform and application softwares, providing a unique exciting user experience to consumers.

所有 3 個部分都得到了與會者的積極參與，並且可以在 Kopin 的網站 www.kopin.com 上查看。我們很高興並致力於我們的策略。簡而言之，我們在國防和企業領域不斷增長的創收業務中保持強勁勢頭的同時，繼續積極創新和推進我們的技術，以應對不斷增長的消費者 AR、VR 和 MR 產品及應用浪潮。你們中的許多人可能已經關注了關於元宇宙變革到來的越來越多的討論。元宇宙的定義仍然不太明確。然而，在我看來，正如我們在網路研討會中討論的那樣，它由 AR、VR 硬體、智慧眼鏡以及平台和應用軟體組成，為消費者提供獨特的令人興奮的用戶體驗。

This radical transformation will happen and is already happening in defense enterprise segments and will soon arrive in the consumer sector. As we have stressed, the AR, VR hardware would come first. The technology advances and market conditions are very favorable, and Kopin is very well positioned to capitalize.

這種徹底的轉變將會發生，並且已經在國防企業領域發生，並將很快進入消費領域。正如我們所強調的，AR、VR 硬體將是第一位的。技術進步和市場條件非常有利，Kopin 處於充分利用資本的位置。

Now I would turn the call over to Rich to discuss the financial detail of the quarter.

現在我會把電話轉給里奇，討論本季的財務細節。

Thank you, John. Turning to our financial results, total revenues for the second quarter ended June 26, 2021 were $9.9 million compared with $8.8 million for the second quarter of June 27, 2020, a 12% increase year-over-year. Product revenue for the second quarter ended June 26, 2021 were $6.9 million compared with $6.7 million for the second quarter of June ended 27, 2020.

謝謝你，約翰。轉向我們的財務業績，截至 2021 年 6 月 26 日的第二季總收入為 990 萬美元，而截至 2020 年 6 月 27 日第二季的總收入為 880 萬美元，年增 12%。截至2021年6月26日的第二季產品營收為690萬美元，而截至2020年6月27日的第二季產品營收為670萬美元。

Our defense product revenues for the second quarter ended June 26, 2021 were $3.8 million compared with $4.5 million for the second quarter ended June 27, 2020. As John previously discussed, during the 3 months ended June 26, 2020, we reduced shipments of our thermal weapon site systems to a customer who is making system and production enhancement. We expect the lower shipment rate to continue during the third fiscal quarter and then increase in the fourth quarter of 2021. Whether we can make up the revenues during the remainder of 2021 is dependent on how quickly the customer completes their process.

截至2021 年6 月26 日的第二季度，我們的國防產品收入為380 萬美元，而截至2020 年6 月27 日的第二季度，我們的國防產品收入為450 萬美元。正如約翰之前討論的，在截至2020 年6 月26 日的三個月中，我們減少了國防產品的出貨量。向正在製造系統和生產增強的客戶提供熱武器現場系統。我們預計第三財季出貨率將持續下降，然後在 2021 年第四季有所增加。我們能否在 2021 年剩餘時間內彌補收入取決於客戶完成流程的速度。

Our industrial product revenues for the second quarter ended June 26, 2020 were $2.6 million compared with $1.4 million for the second quarter ended June 27, 2020, an approximate 86% increase on the strength of the sale of products used for 3D metrology and headsets used for applications in manufacturing distribution, partly offset by a decline in public safety wearable headsets.

截至2020年6月26日的第二季度，我們的工業產品收入為260萬美元，而截至2020年6月27日的第二季度的工業產品收入為140萬美元，由於用於3D計量和耳機的銷售強勁，成長了約86%對於製造分銷中的應用，公共安全可穿戴耳機的下降部分抵消了這一影響。

Project research, development and other revenues were $3 million for the second quarter ended June 26, 2020 compared with $12.1 million for the second quarter ended June 27, 2020 primarily due to an increase in funding for U.S. defense programs. Cost of products sold for the second quarter ended June 26, 2020 were $6 million compared to $4.8 million for the second quarter ended June 27, 2020. The increase in product revenues as a percentage of net product revenues for the 3 months ended June 26, 2020 as compared to 3 months ended June 27, 2020 was primarily to lower manufacturing efficiencies driven by the lower FWS-I volumes.

截至2020年6月26日的第二季度，專案研究、開發和其他收入為300萬美元，而截至2020年6月27日的第二季度為1,210萬美元，這主要是由於美國國防項目的資金增加。截至2020年6月26日的第二季的產品銷售成本為600萬美元，而截至2020年6月27日的第二季的產品成本為480萬美元。截至6月26日的三個月，產品收入佔淨產品收入的百分比增加，與截至 2020 年 6 月 27 日止的 3 個月相比，2020 年的業績下降主要是由於 FWS-I 產量下降導致製造效率下降。

Regarding global shortage of semiconductor components and production capacities affecting many industries, while we have in some cases had to find alternative sources, we have not experienced any shortage issues during the first 6 months of 2021. In some cases, we have seen some price increases. The shortage of semiconductor components is a very dynamic situation and we continue to work the issue it presents.

關於影響許多產業的全球半導體元件和產能短缺問題，雖然我們在某些​​情況下不得不尋找替代來源，但在2021年前6個月我們沒有遇到任何短缺問題。在某些情況下，我們看到了一些價格上漲。半導體元件的短缺是一個非常動態的情況，我們將繼續解決它所帶來的問題。

Research and development expenses for the second quarter of 2021 were $3.9 million compared to $2.2 million for the second quarter of 2020, a 75% increase year-over-year. R&D expenses for the 3 months ended 26, 2021 increased as compared to 3 months ended June 27, 2020 primarily due to an increased spending on U.S.-funded development programs and internal R&D expenses for OLED development.

2021年第二季的研發費用為390萬美元，而2020年第二季的研發費用為220萬美元，較去年同期成長75%。截至2021年6月26日止3個月的研發費用較截至2020年6月27日止3個月有所增加，主要是由於美國資助的開發項目支出以及OLED開發的內部研發費用增加。

Selling, general and administrative expenses were $4 million for the second quarter of '21 compared with $2.9 million for the second quarter of 2020. Excluding the noncash stock-based compensation costs, SG&A expenses were $3.7 million for the second quarter of '21 compared with $2.8 million for the second quarter of 2020, a 30% increase. The increase in SG&A, excluding noncash stock compensation cost, was due to an increase in other compensation costs and bad debt expense.

21 年第二季的銷售、一般及管理費用為400 萬美元，而2020 年第二季為290 萬美元。不包括非現金股票補償成本，21 年第二季的銷售、一般及管理費用為370萬美元，而 2020 年第二季的銷售、一般和管理費用為370 萬美元。2020 年第二季為 280 萬美元，成長 30%。 SG&A 的增加（不包括非現金股票補償成本）是由於其他補償成本和壞帳費用的增加。

Other income expense was income of approximately $249,000 for the second quarter of 2021 compared with $6,000 of expense in the second quarter of 2020. During the 3 months ended June 26, 2021, we recorded $100,000 of foreign currency gains as compared to $10,000 of foreign currency gains for the 3 months ended June 27, 2020.

2021 年第二季的其他收入支出約為249,000 美元，而2020 年第二季的支出為6,000 美元。在截至2021 年6 月26 日的三個月內，我們記錄了100,000 美元的外幣收益，而外幣收益為10,000 美元截至2020年6月27日止三個月的收益。

Turning to the bottom line. Our net loss attributable to the controlling interest for the second quarter of 2021 was $3.8 million or $0.04 per share compared with a net loss to controlling interest of $1.1 million or $0.01 per share for the second quarter of 2020. Non-GAAP net loss attributable to controlling interest for the second quarter of 2021 was $3.6 million or again $0.04 per share compared with non-GAAP net loss attributable to controlling interest of $1 million or $0.01 per share for the second quarter of 2020.

轉向底線。 2021 年第二季控股權益淨虧損為 380 萬美元，即每股 0.04 美元，而 2020 年第二季控股權益淨虧損為 110 萬美元，即每股 0.01 美元。非 GAAP 淨虧損歸因於2021 年第二季的控股權益為360 萬美元，即每股0.04 美元，而2020 年第二季的非GAAP 控股權益淨虧損為100 萬美元，即每股0.01 美元。

Kopin's cash and marketable securities were approximately $30.7 million at June 26, 2021 as compared to $20.7 million at December 26, 2020. Net cash used in operating activities for the second quarter ended June 26, 2021 was approximately $5.4 million. During the 3 months ended June 26, 2020, we sold 92,335 shares of our stock under our ATM program for gross proceeds of approximately $832,000 before deducting expenses of us -- paid by us of $24,000.

截至2021年6月26日，Kopin的現金和有價證券約為3070萬美元，而截至2020年12月26日為2070萬美元。截至2021年6月26日的第二季度經營活動使用的淨現金約540萬美元。截至 2020 年 6 月 26 日的三個月內，我們根據 ATM 計劃出售了 92,335 股股票，在扣除我們支付的 24,000 美元費用之前，總收益約為 832,000 美元。

For the 6 months ended June 26, 2020, we sold 2,496,690 shares for gross proceeds of approximately $16.8 million before deducting broker expenses paid by us of approximately $500,000 pursuant to our existing ATM and previous ATM agreement. On June 28, 2021, the first day of our fiscal third quarter, we sold 600,000 shares of common stock for gross proceeds of $4.8 million before deducting broker expenses paid by us of approximately $145,000 pursuant to our existing ATM program.

截至 2020 年 6 月 26 日的 6 個月，我們出售了 2,496,690 股股票，總收益約為 1,680 萬美元，扣除我們根據現有 ATM 和先前的 ATM 協議支付的經紀人費用約 500,000 美元。 2021 年 6 月 28 日，也就是第三財季的第一天，我們出售了 60 萬股普通股，總收益為 480 萬美元，扣除我們根據現有 ATM 計畫支付的約 14.5 萬美元的經紀人費用。

Second quarter amounts for depreciation and stock compensation expense are attached in the table into the Q2 press release. The amounts discussed above are current estimates and listener should review our Form 10-Q for the second quarter 2021 for any possible changes and of course additional disclosures.

第二季的折舊和股票補償費用金額附在第二季新聞稿的表格中。上述金額是目前的估計，聽眾應查看我們 2021 年第二季的 10-Q 表格，以了解任何可能的變化，當然還有額外的揭露。

And with that, Operator, we'll take questions.

接下來，接線員，我們將回答問題。

(Operator Instructions) We'll now take our first question. It comes from Glenn Mattson of Ladenburg Thalmann.

（操作員說明）我們現在回答第一個問題。它來自 Ladenburg Thalmann 的 Glenn Mattson。

Yes. So just as far as the delays go for this quarter and I guess next, can you give us some sense, just a little more color on kind of what kind of changes your end customer had to make, I guess trying to get at how confident you are or what gives you the confidence that there's going to be a bounce back in the fourth quarter on that? And just some color on the degree of bounce back, whether or not you think you can make up a majority of the revenue loss or if you need to -- or if there'll be some further push out in '22?

是的。因此，就本季度以及我想下一個季度的延誤而言，您能否給我們一些啟發，就您的最終客戶必須做出什麼樣的改變提供更多的信息，我想試圖了解有多大的信心或者是什麼讓您有信心第四季會出現反彈？只是關於反彈程度的一些顏色，你是否認為你可以彌補大部分收入損失，或者你是否需要 - 或者是否會在 22 年進一步推出？

Sure. So first of all, this is a very long-running program. This is going to go for multiple years and this is not unusual that now they've made some number of full units, and they're looking to improve yield. Keep in mind, a lot of the government contracts today are firm fixed price and so to the extent that you can make yield improvements, drive costs down, that all falls to the bottom line and we share in that. And so they've come through with some ideas for yield improvement on the overall system. They slowed shipments down as they implemented those improvements. It requires us to do some engineering to work with them to make sure there's no downstream effects and that's what we're doing. And so how fast we can make it up, we've talked to the customer, they are very eager to make it up themselves. It affects their revenues too. So our interest and their interests are aligned. So it's just a matter of going through and making sure all the testing gets done properly and that there are, as we mentioned, no downstream effects and then once that happens, we hopefully can turn this thing on and then it will just be a matter of how many weeks are left and how much volume we can get out of the facility over the rest of the quarter. We're optimistic we can put a pretty good dent in the fourth quarter if we can get this thing turned on soon.

當然。首先，這是一個運行時間非常長的程式。這將持續多年，這並不罕見，現在他們已經生產了一些完整的設備，並且他們正在尋求提高產量。請記住，當今的許多政府合約都是固定價格，因此只要您可以提高產量，降低成本，所有這些都會落入底線，我們將分享這一點。因此，他們提出了一些提高整個系統產量的想法。在實施這些改進時，他們放慢了發貨速度。這需要我們做一些工程來與他們合作，以確保沒有下游影響，而這就是我們正在做的。那我們能多快彌補呢，我們和客戶談過，他們非常渴望自己彌補。這也影響了他們的收入。所以我們的利益和他們的利益是一致的。因此，這只是一個完成並確保所有測試都正確完成的問題，並且正如我們提到的，沒有下游影響，然後一旦發生這種情況，我們希望可以打開這個東西，然後這將是一個問題還剩多少週以及我們在本季度剩餘時間內可以從該設施中取出多少數量。我們樂觀地認為，如果我們能盡快啟動這項工作，我們可以在第四季度取得很好的成績。

Okay. Great. And as far as the new programs that went into low-rate initial production, can you talk about any specifics about what exactly programs as are and just get a sense of how it will ramp in the back half and into next year?

好的。偉大的。至於進入低速初始製作的新節目，您能否談談節目的具體情況，並了解下半年和明年它將如何提升？

Yes. So it's a weapon sight, it's an avionic product. As soon as we get clearance from the customer, maybe hopefully we can give a little more color exactly who they are and what the programs are. So we did recognize product revenues, initial product revenues in the quarter and hopefully it will just continue on. Again this is initial low-rate production. So there is still engineering going on as these units are being shipped. So having gone to full-rate production, which will happen next year.

是的。所以它是一個武器瞄準器，它是一個航空電子產品。一旦我們得到客戶的許可，也許我們可以更詳細地說明他們是誰以及程序是什麼。因此，我們確實確認了產品收入，本季的初始產品收入，希望它能繼續下去。這又是最初的低產量。因此，在這些設備的運輸過程中，工程仍在進行中。因此，明年將實現全速生產。

And so the -- there was a -- gross margin was a little softer and I guess that's a combination of those 2 factors. In the early stages, obviously the initial production doesn't have the same margin as something in full production. So -- and obviously, the downtick in the weapons sites. So being that that will continue in Q3, should we expect kind of similar margins in Q3 and then perhaps started to improve in Q4 and beyond? Is that a good way to think about the model?

因此，毛利率有點​​疲軟，我想這是這兩個因素的結合。在早期階段，顯然初始生產的利潤與全面生產的利潤不同。因此，很明顯，武器站點的數量正在減少。那麼，既然這種情況將在第三季繼續下去，我們是否應該預期第三季的利潤率會類似，然後可能在第四季及以後開始改善？這是思考模型的好方法嗎？

Yes.

是的。

Great. And then I just had a question about the new LED microdisplay. You talked about kind of a global leader there as the partner. Maybe, I don't know, if Rich or John are the best person to talk about it, but just love to get more insight into how big that could be down the road and just any other color on the upside that that opportunity presents would be great.

偉大的。然後我有一個關於新型 LED 微型顯示器的問題。您談到了作為合作夥伴的全球領導者。也許，我不知道里奇或約翰是否是談論這個問題的最佳人選，但只是想更深入地了解未來可能有多大，以及該機會帶來的任何其他好處。棒極了。

Yes, Glenn, this is John here. This is a very interesting program, very exciting progress. You well know we obviously have been working on LCDs and LCOS and recently really focused on micro-OLED. But micro-LED has a peculiar features. It can be very bright. In some way, people think it's an ultimate display. If you can do the micro-LED, then the brightness is so high it can be so efficient, they'll be very, very good for see-through AR optics -- optical systems. As you well know, the augmented reality optical see-through systems in many ways is the ultimate dream for everybody. So this is it, this is the ultimate dream, but technology is very difficult.

是的，格倫，這是約翰。這是一個非常有趣的計劃，非常令人興奮的進展。您很清楚，我們顯然一直在研究 LCD 和 LCOS，並且最近真正專注於微型 OLED。但micro-LED有一個奇特的特色。它可以非常明亮。在某種程度上，人們認為這是一種終極展示。如果你能製造出 micro-LED，那麼亮度會非常高，效率也會非常高，它們對於透視 AR 光學元件（光學系統）來說將非常非常有用。眾所周知，擴增實境光學透視系統在許多方面都是每個人的終極夢想。所以就是這樣，這就是終極夢想，但是技術難度很高。

We actually pioneered and invented this process on silicon in 1991 with [PAPA]. PAPA actually wanted from day 1. Just going back 1991, they funded us to do that. We stopped it because we don't think we can do a color very well and now we're reactivating the whole process as they will fund from customer and we have a very big company and we already disclosed it from Japan. As a global consumer and consumer -- as enterprise consumer, both kind of company and we are excited having 2 years we will have that that one inch 2K x 2K full color. If we achieve that, that will be the world's leading display. There's no such ambitious program yet and will be the first one. We will provide the backplane design. It's a very unique design that we are patenting right now, yes.

事實上，我們在 1991 年透過 [PAPA] 率先並發明了這種矽製程。 PAPA 其實從第一天起就想要這樣做。早在 1991 年，他們就資助我們這樣做。我們停止了它，因為我們認為我們不能很好地完成顏色，現在我們正在重新啟動整個過程，因為他們將從客戶那裡資助，我們有一家非常大的公司，我們已經從日本披露了它。作為全球消費者和消費者 - 作為企業消費者，無論是公司還是我們，我們都很高興 2 年內我們將擁有 1 英寸 2K x 2K 全彩。如果我們實現這一目標，那將是世界領先的顯示器。目前還沒有如此雄心勃勃的計劃，這將是第一個。我們將提供背板設計。是的，這是一個非常獨特的設計，我們現在正在申請專利。

Our next question comes from Kevin Dede of H.C. Wainwright.

我們的下一個問題來自 H.C. 的 Kevin Dede。溫賴特。

John, just to go back on to the -- looking at the -- Glenn brought up the LED display. You mentioned a consumer company helping you develop that 2-year program. What exactly are the design requirements, the full display? Do you have to include optics in that? Can you give us a little more insight on what your deliverables are?

約翰，我想回到——看看——格倫提到了 LED 顯示器。您提到一家消費品公司幫助您開發該為期兩年的計畫。設計要求到底是什麼，全面展現？你必須在其中包括光學嗎？您能否讓我們更深入地了解您的可交付成果？

It's a very good question, Kevin. For this particular project is a focus on just display the full color 1-inch 2K x 2K display, not the end user system. As you well know, it's a very good question because just a display alone will not solve the problem of the AR, VR consumer application. It is not true. Optics is just as important. You need basic optics going to partly fluid a display, maybe a 30,000x by the optics and give you a very clear image and that's why the Pancake Optic helps. Pancake Optics is a [HR trademark] that we -- we actually use Pancake Optics in the defense industry for quite a while because it does make it everything high-performance optics. But in those cases, they usually have glass in there, glass lens, which is heavy. It's okay for the soldiers, but it's not okay for consumers. So thus this all-plastic optics that go with our way of high-performance display. Together, we will provide the whole unit to (inaudible) for the product display only. We have individual separate programs on optics.

這是一個非常好的問題，凱文。對於這個特定項目，重點是僅顯示全彩 1 英寸 2K x 2K 顯示屏，而不是最終用戶系統。眾所周知，這是一個非常好的問題，因為僅靠顯示器並不能解決 AR、VR 消費應用的問題。這不是真的。光學同樣重要。您需要基本的光學元件來部分流動顯示器，也許光學元件放大 30,000 倍，並為您提供非常清晰的影像，這就是 Pancake 光學元件可以提供幫助的原因。 Pancake Optics 是我們的一個 [HR 商標]，我們實際上在國防工業中使用 Pancake Optics 已經有一段時間了，因為它確實使其成為高性能光學元件。但在這些情況下，它們通常有玻璃，玻璃鏡片，很重。對軍人來說還可以，但是對消費者來說就不行了。因此，這種全塑膠光學元件符合我們的高性能顯示方式。我們將共同提供整個裝置（聽不清楚），僅用於產品展示。我們有單獨的光學項目。

Okay. So that was going to be my next question, John. Thanks for leading in. So the -- this optics development is the plastic cast, #1, is the development there sponsored by a consumer company or was this something that Kopin endeavored to solve on its own and could you give us a little insight on how you're pairing it with both this LED development and the OLED development in AR and VR?

好的。這就是我的下一個問題，約翰。感謝您的帶領。所以，這個光學器件的開發是塑膠鑄件，#1，是由一家消費公司贊助的開發，還是 Kopin 努力自己解決的問題，您能給我們一些見解嗎？您如何將其與AR和VR 中的LED 開發以及OLED 開發結合起來？

Yes. Thank you for asking the question. I think for any AR, VR systems, you need a display and you need optics, and you need a very, very well-designed package assembly. And we learned this and we have been doing this for defense and enterprise world. In fact, for defense world therefore, for instance, avionics or gunsight, we have delivered hundreds of thousands of units to the defense industry. This is not just display, but you need the optics and you need the packaging. How do you package so they have dust free and they are medically sealed? And with those know-hows, Kopin has accumulated a lot. And therefore when we start looking at the consumer world, we recognized not only that they are very, very high-performance display. You need a very thin, very well imaged optics. And Pancake Optics -- remember in the defense industry, we use very different type of optics. We actually provide optics to our customers.

是的。感謝您提出問題。我認為對於任何 AR、VR 系統，你都需要顯示器和光學元件，還需要一個設計得非常非常好的封裝組件。我們學到了這一點，並且一直在為國防和企業界這樣做。事實上，對於國防領域，例如航空電子設備或瞄準具，我們已經向國防工業交付了數十萬台。這不僅是顯示，還需要光學元件和包裝。如何包裝才能確保它們無塵且醫用密封？憑藉這些專業知識，科平累積了很多。因此，當我們開始關註消費者世界時，我們不僅認識到它們是非常非常高效能的顯示器。您需要非常薄、成像良好的光學元件。還有薄餅光學元件——請記住，在國防工業中，我們使用非常不同類型的光學元件。我們實際上為客戶提供光學器件。

So we'll take Pancake as the one for consumer and then we'll also try to work with a vendor, a mature company, and we develop that special material, that edges has no birefringence effect. And therefore the whole plastic optics is unique and we're patenting it. I think we already filed 3 patents on it and we're filing more. and I think with this, a very lightweight, very stylish VI headset is very likely now, very likely. It's safe. The amount that we are saving is as we mentioned, it's significant. I think it's at least more than 10 grams per eye. So you have very significant savings as well that to make good and better -- actually better image quality to your eyes. This is something that people dream about it, nobody can crack the nut, except that we did.

所以我們會以Pancake作為消費者的材料，然後我們也會嘗試與供應商、一家成熟的公司合作，我們開發一種特殊的材料，邊緣沒有雙折射效應。因此，整個塑膠光學元件是獨一無二的，我們正在為其申請專利。我想我們已經申請了 3 項專利，並且正在申請更多專利。我認為有了這個，一款非常輕巧、非常時尚的 VI 耳機現在很有可能，非常有可能。它是安全的。正如我們所提到的，我們節省的金額非常可觀。我想每隻眼睛至少有10克以上。因此，您還可以節省大量成本，從而使影像品質變得更好，實際上為您帶來更好的影像品質。這是人們夢想的事情，沒有人能破解這個難題，除了我們做到了。

So, John, was it really a drive in trying to shave weight or is it also a safety factor?

那麼，約翰，這真的是減肥的動力還是安全因素？

Okay. We never mentioned safety factor. In fact it is also a safety factor. That's absolutely true. The glass, however, is pretty strong. Usually, unless you have some strange event, but it is really -- it's actually everything, cost, size, weight, image quality and now, of course, thank you Kevin you mentioned it, it's certainly safer.

好的。我們從來沒有提到過安全因素。其實這也是一個安全因素。這絕對是真的。不過，玻璃相當堅固。通常，除非你遇到一些奇怪的事件，但它確實是——實際上是一切，成本、尺寸、重量、圖像質量，現在，當然，謝謝凱文，你提到了它，它肯定更安全。

Okay. So just getting back to sort of my thinking on this, John, was this something that you wanted to take your team to develop in addressing all of those things? Or did you get a -- do you have a company that's helping you develop it and help sponsoring some of this development work?

好的。那麼，回到我對此的思考，約翰，您是否希望帶領您的團隊開發解決所有這些問題的東西？或者你有一家公司正在幫助你開發它並幫助贊助一些開發工作？

The plastic optics is totally internally funded. We consider that plastic optics either with licenses or we would be Kopin product. So because our technology optic is so advanced, we decided to do it ourselves. Now of course we are partners, we are partners that develop the material and we were certainly not a chemical company. So we designed it. We have our own software designed lens and we get people to build it, to mold it and we deliver to our customer the final product.

塑膠光學器件完全由內部資助。我們認為塑膠光學元件要么獲得許可，要么成為 Kopin 產品。因為我們的光學技術非常先進，所以我們決定自己做。現在我們當然是合作夥伴，我們是開發材料的合作夥伴，我們當然不是一家化學公司。所以我們設計了它。我們擁有自己的軟體設計鏡頭，我們讓人們來建造它、塑造它，然後我們向客戶交付最終產品。

Okay. Do you see it -- do you see this development, John, transferring to some of the other programs that you have, like with the Scott fire helmet and those types of environments where maybe plastic hasn't worked so well before?

好的。你看到了嗎？約翰，你看到這種發展了嗎？它正在轉移到你擁有的其他一些項目中，例如斯科特消防頭盔以及塑料以前可能效果不佳的那些類型的環境？

It is a very good question which we are so -- if I have to say, we have a lot of strong interest after we announced it and the range from enterprise all the way to consumers. I must say the consumers are more extreme. Almost everybody working on consumer-type headsets would like to try this type of optics because it seems on paper. It is the ultimate display. Or it could be opposite, I am sorry.

這是一個非常好的問題，如果我必須說，在我們宣布這項計畫之後，我們就產生了很多強烈的興趣，從企業一直到消費者。我必須說消費者更加極端。幾乎每個從事消費性耳機工作的人都想嘗試這種類型的光學器件，因為它看起來像是在紙面上。這是終極的展示。或者可能相反，我很抱歉。

Okay. Yes. Good. So that sort of gets me to the -- to another line of questioning, John. Help me understand how Kopin is looking at LED versus OLED? I just want to understand where you see -- I mean, obviously, you've mentioned that led becomes the ultimate in solving see-through AR. But I'm wondering how you see OLED embracing VR maybe nearer term? Or maybe you could just help me make sure that I understand the way that you're thinking about it.

好的。是的。好的。所以這讓我想到了另一個問題，約翰。請幫我了解 Kopin 如何看待 LED 與 OLED？我只是想了解你看到的地方 - 我的意思是，顯然，你提到 LED 成為解決透視 AR 的終極方案。但我想知道您如何看待近期 OLED 擁抱 VR？或者也許你可以幫助我確保我理解你的想法。

Yes. I think in my webinar, I tried to outline, of course, nobody knows exactly how the future will hold. My feeling -- our feeling is for VR application, consumer VR applications, micro-OLED is good enough. Micro-OLED could give you the low-cost, high brightness, enough brightness and the resolution you need. And we'll, of course, continue to try and improve the brightness of the micro-OLED. So as you well know, our 35,000 nits micro-OLED is a world record. We're using dual stack. So that is one area. But we won't go anything over to about 100,000 nits. We feel that micro-OLED will not achieve, certainly not in the next 5 to 10 years. So that's where micro-LED comes in.

是的。我想在我的網路研討會上，我試圖概述，當然，沒有人確切知道未來會如何。我的感覺－我們的感覺是對於VR應用、消費性VR應用來說，micro-OLED已經夠好了。 Micro-OLED可以給你低成本、高亮度、足夠的亮度和你需要的解析度。當然，我們會繼續嘗試提高 micro-OLED 的亮度。如您所知，我們的 35,000 尼特微型 OLED 創下了世界紀錄。我們正在使用雙堆疊。這就是一個區域。但我們不會將亮度提高到 100,000 尼特左右。我們認為micro-OLED不會實現，絕對不會在未來5到10年內實現。這就是 micro-LED 的用武之地。

Now if you need AR application where you need maybe anywhere between 50,000 to 100,000 nits or higher, I think micro-LED will come in. The technology is still quite immature right now. I think we are talking about 3 to 5 years away for micro-LED to begin to come into the market. So right now, the next 5 years, the micro-OLED for VR and some AR applications, and we're making great progress there too. So at the end, we -- our optics is more, let's say, important. We provide the optical solutions to modules, to optic, to display, to packaging, for AR, VR, MR. We do not make the end user systems with licenses. So people who make end user systems, they often have the equities in there. I mean as you well know, we have made a few arrangements already and we're going to continue to make arrangements licensing to people who make end user systems, but we do not sell and market end user systems in Kopin.

現在，如果您需要 AR 應用，您可能需要 50,000 到 100,000 尼特或更高的亮度，我認為 micro-LED 將會出現。該技術目前還相當不成熟。我認為我們談論的是 3 到 5 年後 micro-LED 才會開始進入市場。所以現在，未來 5 年，用於 VR 和一些 AR 應用的 micro-OLED，我們也在這方面取得了巨大進展。所以最後，我們的光學器件更重要。我們為 AR、VR、MR 提供模組、光學、顯示、封裝的光學解決方案。我們不製作帶有許可證的最終用戶系統。因此，製造最終用戶系統的人通常擁有其中的股權。我的意思是，正如您所知，我們已經做出了一些安排，我們將繼續向製造最終用戶系統的人員進行許可安排，但我們不在 Kopin 銷售和行銷最終用戶系統。

Okay. Another question on LED, if you'll allow me, John, please. Can you categorize the IP that you're going to lend to the Japanese company and what you'll be able to control versus the IP that I still believe you're working with a company in China in the development of micro-LED? So could you just sort of frame those 2 deals for us, please?

好的。另一個關於 LED 的問題，如果你允許的話，約翰，請回答。您能否將您將借給日本公司以及您將能夠控制的知識產權與我仍然相信您正在與中國公司合作開發 micro-LED 的知識產權進行分類？那麼您能為我們安排一下這兩筆交易嗎？

Yes. As you well know, we announced several times, the initial work of LED or silicon actually was patented by myself and people in Kopin many years ago. Unfortunately, the 3 patents that we filed and issued to us expired 2 years ago, okay? The one, the fundamental patent, expired 3 years ago. So, however, we do have improved patents and then what we have is we actually design the backplane, the silicon as you well know. Displays are becoming display on chips. It's really an IC chip with LCD or OLED or maybe in the case the LED on top of the silicon chip. So to drive the LED micro-displays could be a different kind of architecture than micro-OLED.

是的。如你所知，我們多次宣布，LED或矽的最初工作實際上是我和Kopin的人多年前就獲得了專利。不幸的是，我們申請並頒發給我們的 3 項專利已於 2 年前到期，好嗎？其中一項基礎專利已於 3 年前到期。然而，我們確實擁有改進的專利，然後我們實際上設計了背板，即眾所周知的矽。顯示器正在變成晶片顯示器。它實際上是一個帶有 LCD 或 OLED 的 IC 晶片，或者在矽晶片頂部有 LED。因此，驅動 LED 微型顯示器可能採用與微型 OLED 不同的架構。

So we designed that, we patented that and such architecture are used either for monochrome, which is the cheaper in China is putting their LED array on our backplane. So backplane is ours, okay, and then the display itself, when it comes back to us, is Kopin. Now using similar color backplane, we had to work with the Japanese global company to put LED array on that and then (inaudible) you have display -- micro-LED display that ship with Xbox. So we control the backplane and we designed it, especially with unique design, and we actually has a end user product and a display product.

所以我們設計了這個，我們申請了專利，這樣的架構可以用於單色，在中國將他們的 LED 陣列放在我們的背板上更便宜。所以背板是我們的，好吧，然後顯示器本身，當它回到我們身邊時，是Kopin。現在使用類似的顏色背板，我們必須與日本跨國公司合作，在其上放置 LED 陣列，然後（聽不清楚）你就有了顯示器——Xbox 附帶的 micro LED 顯示器。所以我們控制背板，我們設計它，特別是獨特的設計，我們實際上有一個最終用戶產品和一個顯示產品。

Okay. Okay. So it's fair to assume or…

好的。好的。所以可以公平地假設或…

[Jeep] is on monochrome, not…

[吉普車] 是單色的，不是…

Okay, monochrome. Right. The Japanese ones color.

好吧，單色。正確的。日本的顏色。

Full color, yes.

全彩，是的。

Okay. Okay. And then you'll -- in working with both those companies, you'll preserve the IP in the design of the backplane, and that won't be shared.

好的。好的。然後，在與這兩家公司合作時，您將保留背板設計中的智慧財產權，並且不會共享。

Yes. In many ways, display right now silicon, the brain is in the silicon. Silicon is the brain and now you put different materials to make it emit different colors -- a different case, the LCD, OLED or for the matter LED, but the brain is in the silicon and we believe silicon is a driving force for all of those displays.

是的。從很多方面來說，現在的顯示器都是矽，大腦就在矽中。矽是大腦，現在你使用不同的材料使其發出不同的顏色 - 不同的情況，LCD、OLED 或 LED，但大腦位於矽中，我們相信矽是所有這些的驅動力那些顯示器。

Okay. You gentlemen mentioned avionics as sort of the umbrella for the 3 programs going -- well, I guess 2 are in LRIP now. I just want to clarify, are all 3 in avionics or help me make sure that I have that in my little brain correctly.

好的。你們先生們提到航空電子設備是正在進行的 3 個項目的保護傘——好吧，我想現在有 2 個項目在 LRIP 中。我只是想澄清一下，這三個都是航空電子設備，或者幫助我確保我的小大腦正確地掌握了這些。

You have it incorrectly. So I said one of them is a scope and one is an avionics of the 2 that are in LRIP now.

你的理解不正確。所以我說其中一個是瞄準鏡，一個是 LRIP 中現在的 2 個航空電子設備。

Okay. And the third that's going to LRIP expected in the December quarter, can you speak to that one, Rich, or no?

好的。第三個項目預計將在 12 月季度進行 LRIP，Rich，您能和那個人談談嗎？

No. We'll discuss that in the fourth quarter.

不，我們將在第四季度討論這個問題。

In due course, very well. Okay.

在適當的時候，很好。好的。

In due course.

在適當的時候。

Can you clarify how many customers are contributing to research and development revenue with specific focus on AR and VR?

您能否說明一下有多少客戶為研發收入做出了貢獻，特別關注 AR 和 VR？

Well, almost all our applications are AR and VR.

嗯，我們幾乎所有的應用都是AR和VR。

Yes, I'm sorry. Let me clarify. I ask with specific intention to address the consumer market.

是的，對不起。讓我澄清一下。我的具體目的是針對消費市場。

Well, that's a hard question to answer, Kevin. Because if you think about it, I mean everything that we do, particularly in the military, we have an eye towards the consumer. That's the whole idea that you develop with the military, moves to industrial and then ultimately ends up in the consumer.

嗯，這是一個很難回答的問題，凱文。因為如果你仔細想想，我的意思是我們所做的一切，特別是在軍隊中，我們都會專注於消費者。這就是您與軍隊一起發展，轉向工業，然後最終進入消費者的整個想法。

No, I understand, Rich, I understand. But you -- as I -- I mean as I try to interpret what you've been saying, you do have particular customers from the consumer side funding development and I was just wondering how many of those customers you had?

不，我明白，里奇，我明白。但是你——正如我——我的意思是，當我試圖解釋你所說的話時，你確實有來自消費者方面的特定客戶資助開發，我只是想知道你有多少這樣的客戶？

It's a very good question. Maybe we could step back. It's very difficult to answer too. But I could answer it by answering this way. As you well know, there are companies who will make Google Glass and we are a supplier of Google Glass. It could be a consumer. In fact, it was a consumer. If they can turn it into enterprise, it may be going back to consumer again. In the case of Microsoft HoloLens, it was a consumer and then it goes to defense and maybe go back to enterprise again. So it's very high. I think these 3 -- Rich is right, all our customers kind of moving from A to B to C, C to back to B and to A again. So we are having quite a few customers supporting us for applications which eventually could be consumer and maybe its consumer again, but at the beginning maybe they will go through enterprise. So we have a lot of -- we have a very active consumer support right now and we're very glad that they support us.

這是一個非常好的問題。也許我們可以退後一步。也很難回答。但我可以這樣回答。眾所周知，有些公司將生產谷歌眼鏡，而我們是谷歌眼鏡的供應商。它可能是一個消費者。事實上，它是一個消費者。如果他們能夠將其轉變為企業，它可能會再次回到消費者手中。就微軟 HoloLens 而言，它是一個消費者，然後它進入防禦階段，也許又回到企業領域。所以它非常高。我認為這 3 個——Rich 是對的，我們所有的客戶都從 A 轉移到 B 到 C，從 C 回到 B，然後再次轉移到 A。因此，我們有相當多的客戶支援我們的應用程序，這些應用程式最終可能是消費者，也許又是消費者，但一開始他們可能會通過企業。所以我們現在有很多非常積極的消費者支持，我們很高興他們支持我們。

Okay. One more question. I'll turn the floor over. I apologize, gentlemen, but thank you so much for indulging me. What's the view on the ATM? Understand if I understood -- if I understand correctly, you did sell 600,000 shares already this quarter. I'm just wondering what's the cash balance you're targeting and how you think we should think about that.

好的。還有一個問題。我會把地板翻過來。先生們，我很抱歉，但非常感謝你們對我的包容。 ATM 上的景色如何？如果我理解的話請理解——如果我理解正確的話，這個季度你已經賣出了 600,000 股。我只是想知道您的目標現金餘額是多少以及您認為我們應該如何考慮這個問題。

We're not really going to disclose our capital raising plans on the phone.

我們實際上不會在電話中透露我們的融資計劃。

(Operator Instructions) We will now take our next question. It comes from Jeff Bernstein of Cowen.

（操作員說明）我們現在將回答下一個問題。它來自考恩的傑夫·伯恩斯坦。

Just a couple of quick questions. I know you guys have a JV with Lenovo. Not sure exactly what's come out of that, but they've started to sort of pre-advertise something called the ThinkReality A3. And I'm wondering if that's under that program or if that's something else with a different vendor?

只是幾個簡單的問題。我知道你們與聯想有一家合資企業。不確定具體會產生什麼結果，但他們已經開始預先宣傳名為 ThinkReality A3 的產品。我想知道這是否屬於該計劃，或者是否是其他供應商的其他內容？

That's a different program. We are working with Lenovo N.V., which is a joint venture of Lenovo with several other companies in China. The one you mentioned is actually came from a Lenovo parent.

那是一個不同的程序。我們正在與 Lenovo N.V. 合作，該公司是聯想與中國其他幾家公司的合資企業。你提到的這個其實是來自聯想母公司的。

Got you. Okay. And then there was strength in the industrial segment. Can you just differentiate for us, was that from the 3D machine vision side, the fourth dimension LCOS piece or was that RealWear?

明白你了。好的。然後工業領域也表現強勁。您能否為我們區分一下，這是從 3D 機器視覺方面來看，第四維 LCOS 零件還是 RealWear？

Both. Yes, probably -- it was -- majority was the FDD.

兩個都。是的，可能——確實如此——多數是FDD。

Yes. The 3D metrology, which is, you're right, the FDD, that business as you're well aware, we have been working with for the past last 4, 5 years is really taking off right now. The industry now recognized maybe because of the pandemic or not that many of the circuit boards, which are always 2D, now moving into 3D, much higher packaging densities and thinner, and 3D metrology is pressing for in the manufacturing sector for 3D analysis of circuit boards. So that business is really taking off. And we're very excited about it. I think it's going to continue as all the factories start converting. We have about 40% market share. Our other [credit], other competitors is TI, TI using DLP. They also own about 40% market share.

是的。 3D 計量，你是對的，FDD，正如你所知，我們在過去 4、5 年裡一直與之合作的業務現在正在真正起飛。業界現在認識到，也許是因為大流行，或者不是因為大流行，許多電路板一直是 2D，現在轉向 3D，封裝密度更高、更薄，製造業迫切需要 3D 計量來對電路進行 3D 分析板。所以這項業務確實正在起飛。我們對此感到非常興奮。我認為隨著所有工廠開始轉型，這種情況將會持續下去。我們擁有約 40% 的市佔率。我們的另一個[功勞]，其他競爭對手是TI，TI 使用DLP。他們還擁有約 40% 的市場份額。

Our next question comes from Craig Rose of Axiom Asset Management.

我們的下一個問題來自 Axiom 資產管理公司的 Craig Rose。

John, can you help us understand -- could you help us understand -- well, we know RealWear and Solos aren't under your umbrella anymore. But could you explain how we benefit from their success? And maybe you could tell us your perception of RealWear's market share maybe in the marketplace?

John，你能幫助我們理解嗎？你能幫助我們理解嗎？好吧，我們知道 RealWear 和 Solos 不再屬於你的保護傘了。但您能解釋一下我們如何從他們的成功中受益嗎？也許您可以告訴我們您對 RealWear 市場佔有率的看法？

Okay. I will answer some of the content here. This is a very good question. I think we could outline our strategy. As you well know, in the early years, we are -- in order to promote our component, our component is display optics and assembly, the modules, the whole optical modules. You all promote optical module, we actually create systems, reference systems in some ways very close to product systems. And in during the process, we actually come out with a lot of technology and whole assets, and we decided to license those ideas and actually help those companies to make those handsets. So RealWear is one of the case. They licensed our headset, which is actually Golden Eye, we call it the Golden Eye, and we get equity on it. And they also buy components and they pay for royalties. So there are 3 components there royalties, equities and buy components, and RealWear is doing very well. As you well know, I will say there's really for enterprise -- well for headsets, I would say they're world leading now, and we are growing with them. So they are happy with that. We're going to have 3 ways to make our return of technology. We license the technology to them.

好的。我在這裡回答一些內容。這個問題問得好。我認為我們可以概述我們的策略。如你所知，早年，我們——為了推廣我們的組件，我們的組件是顯示光學和組件、模組、整個光學模組。你們都在推廣光模組，我們實際上創建系統，參考系統在某些方面非常接近產品系統。在這個過程中，我們實際上拿出了許多技術和整體資產，我們決定授權這些想法並實際幫助這些公司製造這些手機。 RealWear 就是其中之一。他們授權了我們的耳機，這實際上是 Golden Eye，我們稱之為 Golden Eye，我們獲得了它的股權。他們還購買組件並支付特許權使用費。因此，有 3 個組成部分：特許權使用費、股權和購買組成部分，而 RealWear 做得非常好。正如你所知，我想說的是，對於企業來說，對於耳機來說，我想說它們現在處於世界領先地位，我們正在與它們一起成長。所以他們對此感到高興。我們將有 3 種方法來實現技術迴歸。我們將技術授權給他們。

The second case was Solos, the same way. Solo again was licensed and transfer of the technology to them. The product is coming out. They came out once, version 1 last year during the pandemic, and they sold out the first round. So the second round of the product coming out. In fact, in August this year, this month. So again we have equity there, we have royalty there. And so it's very good. And then we have a third one, which we just announced about 6 months ago, where we're designing and helping them do a headset for surgery, right? It's a company in San Diego, and that company is actually starting to do pretty well. They're co-funded by a very big medical device company. And so -- and I think this particular strategy will continue.

第二個案例是索洛斯，同樣的情況。 Solo 再次獲得許可並將技術轉移給他們。產品即將問世。去年疫情期間，他們推出過一次，第一版，第一輪就賣完了。於是第二輪產品就出來了。其實今年八月這個月。因此，我們在那裡擁有股權，我們在那裡擁有特許權使用費。所以這非常好。然後我們有第三個，大約 6 個月前我們剛剛宣布，我們正在設計並幫助他們製作用於手術的耳機，對嗎？這是一家位於聖地牙哥的公司，而且該公司實際上已經開始做得很好了。他們由一家非常大的醫療器材公司共同資助。所以——我認為這個特殊的策略將會持續下去。

Now I think we will have more of those very interesting event because what the people want is not just wanting our optical modules, they actually learned that we have so much know-how building headsets for them for special use and that's what we do. We get equities, get products, get royalties and I think this is another segment of our business strategy, which is not well understood. I think this is going to be a very lucrative and successful strategy.

現在我認為我們將會舉辦更多非常有趣的活動，因為人們想要的不僅僅是我們的光學模組，他們實際上了解到我們擁有豐富的專業知識為他們製造特殊用途的耳機，這就是我們所做的。我們獲得股權，獲得產品，獲得特許權使用費，我認為這是我們業務策略的另一個部分，但目前還沒有被很好地理解。我認為這將是一個非常有利可圖且成功的策略。

It appears we have no further questions at this time. I'd like to turn the call back to John Horne for any additional comments or closing remarks.

目前看來我們沒有其他問題了。我想將電話轉回給約翰·霍恩，以徵求任何其他意見或結束語。

Well, thank you for joining us this quarter and we look forward to see you in the next quarter. Thank you.

好吧，感謝您本季加入我們，我們期待在下個季度見到您。謝謝。

This concludes today's call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。