KORE Group Holdings Inc (KORE) 2024 Q2 法說會逐字稿

Greetings, and welcome to the KORE Group Holdings' Inc. second-quarter 2024 earnings conference call and webcast. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Vik Vijayvergiya, Vice-President, Investor Relations. Please go ahead, Vik.

您好，歡迎參加 KORE Group Holdings' Inc. 2024 年第二季財報電話會議及網路廣播。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興將電話轉給東道主投資者關係副總裁 Vik Vijayvergiya。請繼續，維克。

Thank you, Kevin. On today's call, we will refer to the second-quarter 2024 earnings presentation, which will be helpful to follow along with as well as the press release filed this morning that details of the company's second quarter 2024 results. Both of these can be found on our Investor Relations page at ir.korewireless.com. Finally, a recording of the call will be available in the Investor section of the company's website later today.

謝謝你，凱文。在今天的電話會議上，我們將參考 2024 年第二季的收益報告，這將有助於跟進今天上午發布的有關該公司 2024 年第二季業績詳細資訊的新聞稿。您可以在 ir.korewireless.com 的投資者關係頁面上找到這兩個資訊。最後，今天晚些時候將在公司網站的投資者部分提供電話錄音。

The company encourages you to review the Safe Harbor statements, risk factors, and other disclaimers contained on this slide and today's press release, as well as in the company's filings with the Securities and Exchange Commission, which identify specific risk factors that may cause actual results or events to differ materially from those described in our forward-looking statements. The company does not undertake to publicly update or revise any forward-looking statements after this webcast.

本公司鼓勵您查看本投影片和今天的新聞稿以及本公司向美國證券交易委員會提交的文件中包含的安全港聲明、風險因素和其他免責聲明，其中確定了可能導致實際結果的特定風險因素或與我們前瞻性陳述中所描述的事件有重大差異的事件。該公司不承諾在本次網路廣播後公開更新或修改任何前瞻性陳述。

The company also notes that it will be discussing non-GAAP financial information on this call. The company is providing that information as a supplement to information prepared in accordance with accounting principles generally accepted in the United States or US GAAP. You can find a reconciliation of these metrics to the company's reported GAAP results in the reconciliation tables provided in today's earnings release and presentation. I'll now turn the call over to Ron Tottan, the company's President and Chief Executive Officer.

該公司還指出，它將在這次電話會議上討論非公認會計準則財務資訊。該公司提供該資訊作為根據美國普遍接受的會計原則或美國公認會計準則準備的資訊的補充。您可以在今天的收益發布和演示中提供的調整表中找到這些指標與公司報告的 GAAP 結果的調整表。現在我將把電話轉給公司總裁兼執行長 Ron Tottan。

Thank you, Vik. Good morning, everyone. Thank you for joining us for our second-quarter 2024 earnings call. With me today is Paul Holtz, KORE's Chief Financial Officer. On slide 3, we have laid out our objectives for the call. In addition to reviewing our Q2 results today, which Paul will address further a moment, I want to first spend a bit of time talking about what I observed in the first 90-plus days in my role, the newly announced restructuring plan we are putting in place, and the update to our financial outlook for 2024. We'll then host the Q&A session.

謝謝你，維克。大家早安。感謝您參加我們的 2024 年第二季財報電話會議。今天和我在一起的是 KORE 財務長 Paul Holtz。在投影片 3 中，我們列出了這次電話會議的目標。除了今天回顧我們第二季度的業績（保羅將進一步討論這一點）之外，我想首先花一點時間談談我在擔任職務的前90 多天內所觀察到的情況，即我們正在實施的新宣布的重組計劃以及我們對 2024 年財務展望的更新。然後我們將主持問答環節。

On slide 4, I'll share my initial priorities as CEO, the insights gained, and our strategic response. In my first 90 days, I concentrated on these three areas. My first priority was to spend time with multiple stakeholder groups, including key customers and partners, the senior leadership team, employees, and Board to understand how we can better serve our customers.

在投影片 4 上，我將分享我作為執行長的最初優先事項、獲得的見解以及我們的策略應對措施。在我的前 90 天裡，我專注於這三個領域。我的首要任務是花時間與多個利害關係人群體接觸，包括關鍵客戶和合作夥伴、高階領導團隊、員工和董事會，以了解我們如何更好地為客戶服務。

Second, I focused on identifying immediate ways to improve operational efficiency, elevate customer experience, and optimize our costs. And third, was to unlock the full potential of our people by fostering a culture of accountability and empowerment.

其次，我專注於確定提高營運效率、提升客戶體驗和優化成本的直接方法。第三，透過培育問責和賦權文化來釋放我們員工的全部潛力。

Following this period of evaluation, I continue to believe that KORE is, one, a leading provider of IoT Connectivity and solutions serving a wide range of use cases across multiple industry verticals, capitalizing on the vast addressable market, greater than $12 billion, which lies at the intersection of real-time data, cloud, and AI.

經過這段時間的評估，我仍然相信 KORE 是物聯網連接和解決方案的領先提供商，為多個行業垂直領域的廣泛用例提供服務，利用超過 120 億美元的廣闊潛在市場，處於實時數據、雲和人工智慧的交叉點。

Two, uniquely positioned with a best-in-class portfolio of mission-critical IoT offerings powered by advanced SIM technology, that deliver tangible operational efficiencies, cost reductions, and revenue growth for customers across diverse industries. And three, backed by a deep bench of IoT industry experts committed to driving innovation and delivering exceptional value for our customers.

第二，擁有獨特的定位，擁有由先進 SIM 技術提供支援的一流任務關鍵型物聯網產品組合，可為不同行業的客戶帶來切實的營運效率、成本降低和收入成長。第三，得到了物聯網行業專家的支持，致力於推動創新並為客戶提供卓越的價值。

Following my review, it also became apparent to me that, first, we need to realign our cost structure. Over the last three years, the rate of growth in costs has more than doubled the growth in rate in revenue. While some cost rationalization has occurred in the past 12 months, more is needed. Second, as an organization, we need to prioritize our high-growth connectivity business and further our investments into this area. And third, our strong, experienced teams needed a more simplified org structure, putting the customer first, and a culture that reinforces strong discipline and an unwavering commitment to customer success and satisfaction.

經過我的審查，我還清楚地意識到，首先，我們需要重新調整我們的成本結構。過去三年，成本成長率是收入成長率的兩倍多。儘管在過去 12 個月中已經實現了一些成本合理化，但仍需要進一步合理化。其次，作為一個組織，我們需要優先考慮高成長的連結業務，並進一步加大對該領域的投資。第三，我們強大、經驗豐富的團隊需要更簡化的組織結構，將客戶放在第一位，以及加強嚴格紀律和對客戶成功和滿意度堅定不移的文化。

Based on these guiding principles, we developed the restructuring plan shown on slide 5. Together with the senior leadership team and with the full support of the Board, we have announced a restructuring plan focused on improving operational efficiency, enhancing our customer relationships, and strengthening the foundation from which to drive long-term profitable growth.

根據這些指導原則，我們制定了投影片 5 所示的重組計畫。在董事會的全力支持下，我們與高階領導團隊一起宣布了一項重組計劃，重點是提高營運效率，加強我們的客戶關係，並加強推動長期獲利成長的基礎。

The plan features multiple elements including, one, cost reduction initiatives where we implement measures to reduce operating expenses and streamline processes to optimize operations and customer support. Two, workforce realignment that will see us reduce full-time headcount by approximately 25%, including both employees and contractors, with most of these actions taken before the end of the third quarter. This will better align our resources with current business needs and prospects.

該計劃具有多個要素，其中包括：一是降低成本舉措，我們採取措施減少營運費用並簡化流程，以優化營運和客戶支援。第二，勞動力重組，這將使我們將全職員工數量減少約 25%，包括員工和承包商，其中大部分行動將在第三季末之前採取。這將使我們的資源更能適應當前的業務需求和前景。

Three, a focus on innovation and investment targeting those areas of the business that are experiencing strong demand. This includes investing in related go-to-market strategies in order to increase our stickiness with both new and existing customers as well as conducting R&D focus on the next generation of market-leading offerings. And four, an enhanced customer focus allowing us to strengthen relationships through an improved service and support commitment capable of delivering even higher levels of satisfaction and loyalty.

第三，注重針對需求強勁的業務領域的創新和投資。這包括投資相關的上市策略，以提高我們對新客戶和現有客戶的黏性，以及將研發重點放在下一代市場領先的產品上。第四，加強對客戶的關注，使我們能夠透過改進的服務和支援承諾來加強關係，從而提供更高水準的滿意度和忠誠度。

This plan, which we expect to execute before the end of the third quarter is expected to save the company $5 million to $6 million in 2024 from its current cash burn rate and $20 million to $22 million thereafter before any investment, which I'll discuss in a moment. While some of these decisions were difficult, especially those around workforce reductions, it was clear that prompt and decisive action was required to set the company on a stronger and more focused footing, one that would allow us to prosper over the longer term. A portion of these savings will be used to selectively invest in key areas of the connectivity business where we see the best opportunities for profitable growth.

我們預計該計劃將在第三季末之前執行，預計將在2024 年為公司當前的現金消耗率節省500 萬至600 萬美元，此後在任何投資之前節省2000 萬至2200 萬美元，我將討論這一點一會兒。雖然其中一些決定很困難，尤其是有關裁員的決定，但很明顯，我們需要採取迅速而果斷的行動，使公司建立一個更強大、更專注的基礎，這將使我們能夠長期繁榮。這些節省的一部分將用於選擇性地投資於我們認為獲利成長的最佳機會的連接業務的關鍵領域。

To support these initiatives, I'm pleased to welcome Bruce Gordon to KORE as Executive Vice President and Chief Operating Officer, who I have had the privilege to work with previously. Over three decades in the technology sector, Bruce has held senior roles with GeoDigital, ABB Ventyx, Infor and Descartes and is a highly experienced business operator.

為了支持這些舉措，我很高興歡迎 Bruce Gordon 加入 KORE，擔任執行副總裁兼營運長，我之前曾有幸與他共事過。Bruce 在技術領域工作了三十年，曾在 GeoDigital、ABB Ventyx、Infor 和 Descartes 擔任高級職務，是一位經驗豐富的業務運營商。

Bruce will play a critical role in transforming customer support, implementing the restructuring plan, helping to enhance operational efficiencies, foster innovation and drive sustainable growth, all working to solidify KORE's reputation as an IoT leader.

Bruce 將在轉變客戶支援、實施重組計劃、幫助提高營運效率、促進創新和推動永續成長方面發揮關鍵作用，所有這些都致力於鞏固 KORE 作為物聯網領導者的聲譽。

In another significant organizational change, the company has appointed Jared Deith, Executive Vice President, Connected Health. Jared was the Co-Founder of BMP and SIMON IoT, which were acquired in February 2022 and recently led the indirect channel for KORE with great success. His appointment further strengthens the executive leadership team with deep IoT and Telco experience and a strong track record for driving sustainable growth in the global connected health sector.

在另一項重大組織變革中，該公司任命 Jared Deith 擔任 Connected Health 執行副總裁。Jared 是 BMP 和 SIMON IoT 的共同創辦人，這兩家公司於 2022 年 2 月被收購，最近領導了 KORE 的間接管道並取得了巨大成功。他的任命進一步加強了執行領導團隊的實力，他們擁有深厚的物聯網和電信經驗，以及在推動全球互聯健康領域可持續成長方面的良好記錄。

On slide 6, looking at our Q2 numbers at a high level, revenue was $67.9 million, adjusted EBITDA was $11.4 million, and cash from operations was $4 million, resulting in essentially breakeven free cash flow. I'll let Paul speak to the Q2 results in more detail.

在投影片 6 中，從高水準來看我們第二季的數據，營收為 6,790 萬美元，調整後的 EBITDA 為 1,140 萬美元，營運現金為 400 萬美元，自由現金流基本上達到了盈虧平衡。我會讓保羅更詳細地談論第二季的結果。

But before turning over the call to him, I wanted to point out that despite our flattish top line results, the connectivity business delivered growth of 16% in the quarter along with continued TCV growth. The connectivity business is our primary focus with its more stable and profitable revenue. This is where we are seeing real strength in the business and where we intend to focus our investment.

但在將電話轉給他之前，我想指出，儘管我們的營收業績持平，但連結業務在本季度實現了 16% 的成長，同時 TCV 也持續成長。連結業務是我們的重點業務，收入更加穩定、有獲利。這是我們看到業務真正實力的地方，也是我們打算專注於投資的地方。

Slide 7 presents a snapshot of our global sales pipeline as of June 30, 2024. As we previously mentioned, we have decided to reduce our focus on low profit hardware revenue. While this decision reduces the total size of the funnel as has the relatively large number of deals that were closed in the first half, it's important to note that the quality of our pipelines continue to improve.

幻燈片 7 展示了截至 2024 年 6 月 30 日我們的全球銷售管道的快照。正如我們之前提到的，我們決定減少對低利潤硬體收入的關注。雖然這項決定減少了漏斗的總規模，並且上半年完成的交易數量相對較多，但值得注意的是，我們的通路品質正在持續改善。

Our sales pipeline includes more than 1,100 opportunities with an estimated potential TCV of approximately $437 million. In the second quarter, we generated an incremental $44 million of TCV-1 up $12 million from $32 million in the same period last year.

我們的銷售管道包括 1,100 多個機會，預計潛在 TCV 約為 4.37 億美元。第二季度，我們的 TCV-1 增量為 4,400 萬美元，比去年同期的 3,200 萬美元增加了 1,200 萬美元。

For the first six months of 2024, we have added a total of $96 million in TCV versus $60 million in the same period a year ago. As a reminder, the majority of sold TCV is recognized as revenue over four years, and it is important to note that the closed TCV figure is aggregated across all our services, which recognize revenue on different schedules. As mentioned, we believe that the continued growth in TCV is compelling and indicative of the longer-term potential of the connectivity business in particular.

2024 年前六個月，我們總共增加了 9,600 萬美元的 TCV，而去年同期為 6,000 萬美元。提醒一下，大部分已售出的 TCV 在四年內被確認為收入，值得注意的是，已關閉的 TCV 數據是在我們所有服務中匯總的，這些服務按不同的時間表確認收入。如前所述，我們認為 TCV 的持續成長引人注目，尤其顯示了連接業務的長期潛力。

As we did on our last earnings call, slide 8 highlights some key customer wins from the second quarter. First, I'd like to start with a win that opens a new market for an AI-driven use case. This customer provides an AI-driven analytics software platform focused on asset management across the construction, energy, marine, and logistics industries. This client leverages KORE's best-in-class Super SIM to help their customers manage costs, improve utilization, and deliver better safety and sustainability by enabling them to track emissions, monitor fuel usage, and benchmark equipment. This deal represents $3.6 million in estimated TCV.

正如我們在上次財報電話會議上所做的那樣，投影片 8 重點介紹了第二季的一些關鍵客戶贏得情況。首先，我想從為人工智慧驅動的用例打開新市場的勝利開始。該客戶提供了一個人工智慧驅動的分析軟體平台，專注於建築、能源、海洋和物流行業的資產管理。該客戶利用 KORE 一流的 Super SIM 來幫助客戶管理成本、提高利用率，並透過追蹤排放、監控燃料使用情況和基準設備來提供更好的安全性和永續性。這筆交易預計 TCV 為 360 萬美元。

Secondly, we are highlighting an enterprise win with one of the world's largest food and beverage companies. KORE will be providing global IoT Connectivity to support their next-generation solutions that provide tailored digital content to their consumers. KORE has already begun the rollout for multiple products as the customer seeks to consolidate their global IoT business. The estimated TCV of this win is approximately $1.1 million.

其次，我們強調與世界上最大的食品和飲料公司之一的企業勝利。KORE 將提供全球物聯網連接，以支援其下一代解決方案，為消費者提供量身定制的數位內容。隨著客戶尋求鞏固其全球物聯網業務，KORE 已經開始推出多種產品。這場勝利的估計 TCV 約為 110 萬美元。

Third, is an exciting win for a cloud-based worker safety platform. This client chose our Super SIM to support rollouts of their personal emergency response system across Latin America and Europe. The platform will be supporting their customers in a wide range of industries, including hotels, golf courses, and other large venues. This is another example of how our solutions are used to improve safety for our clients and their customers and will deliver an estimated TCV of $4 million.

第三，基於雲端的工人安全平台取得了令人興奮的勝利。該客戶選擇我們的超級 SIM 卡來支援他們在拉丁美洲和歐洲推出個人緊急應變系統。該平台將為各行各業的客戶提供支持，包括酒店、高爾夫球場和其他大型場館。這是我們的解決方案如何用於提高我們的客戶及其客戶的安全性的另一個例子，預計將帶來 400 萬美元的 TCV。

And finally, I want to mention a win that highlights our full lifecycle management capabilities with a leading North American manufacturer of outdoor lifestyle product such as RVs. KORE's solution includes connectivity, hardware, managed services, and advanced hardware support that will enable in-vehicle diagnostics and proactive maintenance that will drive revenue growth for this manufacturer. We expect this win to deliver $3.4 million in TCV.

最後，我想提一下我們與北美領先的戶外生活方式產品（例如房車）製造商的全生命週期管理能力的勝利。KORE 的解決方案包括連接、硬體、託管服務和高級硬體支持，可實現車載診斷和主動維護，從而推動該製造商的收入成長。我們預計這場勝利將帶來 340 萬美元的 TCV。

KORE continues to demonstrate its market leadership in IoT Connectivity solutions as evidenced by these recent wins. Our ability to deliver tailored end-to-end IoT solutions across diverse industries is driving growth in our connectivity business and solidifying our position as a trusted partner.

KORE 繼續展示其在物聯網連接解決方案方面的市場領導地位，最近的這些勝利證明了這一點。我們在不同行業提供客製化的端到端物聯網解決方案的能力正在推動我們連接業務的成長，並鞏固我們作為值得信賴的合作夥伴的地位。

I would now like to address our guidance for 2024 on slide 9. The positive momentum from our sales wins bodes well for the medium- and longer-term future of the business. However, largely based on the timing of a key customer implementation slipping into early 2025, increasingly cost-conscious customer behavior and slower purchasing cycles, we are electing to revise our 2024 financial guidance downwards.

我現在想在投影片 9 上闡述我們對 2024 年的指導。我們的銷售勝利帶來的正面動能預示著業務的中長期未來。然而，主要基於關鍵客戶實施時間延後到 2025 年初、客戶行為日益注重成本以及採購週期變慢，我們選擇下調 2024 年財務指引。

Regarding the customer implementation, I'd like to reiterate that this is largely a timing issue and doesn't reflect an anticipated loss of business. On this basis, we are lowering our full-year revenue guidance to $275 million to $285 million from $300 million to $305 million previously. I now expect adjusted EBITDA to come in at between $54 million and $56 million versus $64 million to $66 million for 2024.

關於客戶實施，我想重申，這很大程度上是一個時間問題，並不反映預期的業務損失。在此基礎上，我們將全年營收指引從先前的 3 億美元至 3.05 億美元下調至 2.75 億美元至 2.85 億美元。我現在預計調整後 EBITDA 將在 5,400 萬至 5,600 萬美元之間，而 2024 年為 6,400 萬至 6,600 萬美元。

Going forward, we fully expect that the changes we are making under our restructuring plan, including both the associated savings and the reinvestment in the business, will contribute meaningfully to improve financial performance in 2025 and beyond, and provide the solid foundation from which to drive profitable growth over the longer term. With that, I'm now going to turn over the call to Paul to review our Q2 and year-to-date performance in greater detail, Paul.

展望未來，我們完全預計，我們根據重組計劃所做的改變，包括相關的節省和對業務的再投資，將為改善2025 年及以後的財務業績做出有意義的貢獻，並為推動業務發展奠定堅實的基礎。現在，我將把電話轉給保羅，更詳細地回顧我們第二季和今年迄今為止的表現，保羅。

Thanks, Ron, and good morning, everyone. Now, let's look at our second quarter financial results on slide 10. KORE's second-quarter revenue of $67.9 million decreased 2% year over year. Breaking that down by business lines, IoT connectivity revenue of $55.8 million, primary driven by the Twilio IoT acquisition increased 16% year over year and represented 82% of second quarter revenue, up from 69% in the prior year.

謝謝羅恩，大家早安。現在，讓我們來看看幻燈片 10 上的第二季財務業績。KORE 第二季營收為 6,790 萬美元，年減 2%。按業務線細分，物聯網連接收入為 5,580 萬美元，主要由 Twilio IoT 收購推動，年增 16%，佔第二季營收的 82%，高於前一年的 69%。

Organically, IoT Connectivity grew approximately 2% year over year, largely as a result of net new activations from existing customers. IoT Solutions declined 43% year over year to $12.1 million or 18% of second-quarter revenue. The decline year over year was due to various connected health customers and the timing of their new clinical trials as well as we previously disclosed the decision to turn away low profit hardware deals to help improve working capital.

從有機角度來看，物聯網連接同比增長約 2%，這主要歸功於現有客戶的淨新激活。物聯網解決方案年減 43%，至 1,210 萬美元，佔第二季營收的 18%。年比下降的原因是各種互聯健康客戶及其新臨床試驗的時間安排，以及我們先前披露的放棄低利潤硬體交易以幫助改善營運資金的決定。

Total revenue minus total cost of revenue as percentage, excluding depreciation and amortization in Q2 2024 was 56.9%, an increase of 250 basis points compared to the second quarter of 2023. By business line, total IoT Connectivity revenue minus total cost of IoT Connectivity as a percentage excluding depreciation and amortization, was down 430 basis points year over year to 60.9%, reflecting a full-quarter inclusion of the lower profitable Twilio IoT Connectivity revenue.

2024 年第二季總收入減去總收入成本（不包括折舊和攤提）的百分比為 56.9%，比 2023 年第二季增加了 250 個基點。按業務線劃分，物聯網連接總收入減去物聯網連接總成本（不包括折舊和攤銷）的百分比同比下降430 個基點至60.9%，反映出全季度包含了利潤較低的Twi​​lio 物聯網連接收入。

However, total connectivity revenue minus total cost of IoT Connectivity as a percentage, excluding depreciation and amortization, is flat sequentially from 60.9% in the first quarter of 2024 and is forecast to remain stable in the 60% to 61% range for the rest of fiscal year 2024.

然而，總連接收入減去物聯網連接總成本（不包括折舊和攤銷）的百分比與 2024 年第一季的 60.9% 持平，預計其餘時間將穩定在 60% 至 61% 的範圍內2024 財年。

Total IoT Solutions revenue minus total cost of IoT Solutions as a percentage, excluding depreciation and amortization, was up 860 basis points year over year to 38.5%. The increase in this percentage is mainly due to less hardware revenue at a low profit.

物聯網解決方案總收入減去物聯網解決方案總成本（不包括折舊和攤提）的百分比年增 860 個基點，達到 38.5%。這一百分比的成長主要是由於硬體收入減少、利潤較低。

Total IoT Solutions revenue minus total cost of IoT Solutions as a percentage is more difficult to predict on a quarterly basis due to the uneven nature and fluctuations in the revenue, the mix of hardware, but are continued to be forecasted in the mid- to-high 30% range for the rest of 2024.

由於收入的不均勻性和波動以及硬體組合，物聯網解決方案總收入減去物聯網解決方案總成本的百分比更難以按季度預測，但在中到中期仍將繼續進行預測2024 年剩餘時間將上漲30%。

Total connections at the end of the second quarter were 18.6 million, an increase of 100,000 year over year. The limited growth in total connections year over year was due to the previously communicated deactivations of low ARPU connections from a single CS customer in Europe. The decline in total connections from this one customer alone was approximately 1 million connections compared to the prior year.

第二季末總連線數為1860萬，較去年同期增加10萬。總連線數逐年成長有限是由於先前通報的歐洲單一 CS 客戶的低 ARPU 連線停用所致。與前一年相比，光是該客戶的總連線數就下降了約 100 萬個。

Average revenue per user or ARPU for the second quarter was $1 per month compared to $0.98 in Q2 2023. The increase in ARPU year over year was driven by higher data consumption from bandwidth use cases and the expected loss of the CS customer in Europe just described.

第二季每用戶平均收入 (ARPU) 為每月 1 美元，而 2023 年第二季為每月 0.98 美元。ARPU 逐年成長的原因是頻寬用例帶來的資料消耗增加以及剛剛描述的歐洲 CS 客戶的預期流失。

Dollar base net expansion rate or DBNER for the 12 months ended June 30, 2024, was 92% compared with 99% in the prior year. As a reminder, DBNER is similar to same-store sales as it measures the growth of existing customers in the trailing 12 months compared to the same customer cohort in the year ago period. This means that IoT Connectivity customers gained from the Twilio IoT acquisition in June 2023 are excluded from the calculation. Next quarter, this cohort of customers will be included.

截至 2024 年 6 月 30 日的 12 個月，美元基數淨擴張率為 92%，而前一年為 99%。提醒一下，DBNER 與同店銷售額類似，因為它衡量的是過去 12 個月內現有客戶與去年同期同一客戶群相比的成長情況。這意味著 2023 年 6 月收購 Twilio IoT 獲得的 IoT Connectivity 客戶被排除在計算之外。下個季度，這群客戶將被納入其中。

Our current DBNER calculation continues to be impacted by declines in revenue from some of our IoT Solutions customers. For example, DBNER for the IoT Connectivity revenue customers only was approximately 107% this quarter compared to approximately 106% in the same period last year.

我們目前的 DBNER 運算繼續受到一些物聯網解決方案客戶收入下降的影響。例如，本季物聯網連接收入客戶的 DBNER 約為 107%，而去年同期約為 106%。

Turning to slide 11, operating expenses including depreciation and amortization and $45.4 million noncash goodwill impairment charge were $95.8 million in the second quarter, an increase of $48.4 million or 102% compared to Q2 2023. In addition to the noncash goodwill impairment charge, the increase is mainly attributable to higher headcount related cost from the Twilio IoT acquisition in June 2023.

轉向投影片11，第二季的營運費用（包括折舊和攤提以及4,540 萬美元的非現金商譽減損費用）為9,580 萬美元，與2023 年第二季相比增加了4,840 萬美元，即102%。除了非現金商譽減損費用外，這一成長主要歸因於 2023 年 6 月收購 Twilio IoT 帶來的人員相關成本增加。

Second quarter interest expenses, including amortization of deferred financing fees increased year over year to $13 million versus $10.3 million in the second quarter of 2023. This increase is due to the higher borrowing costs on our refinance debt and preferred stock placement completed in Q4 2023.

第二季利息支出（包括遞延融資費用攤提）年增至 1,300 萬美元，而 2023 年第二季為 1,030 萬美元。這一增長是由於我們的再融資債務和 2023 年第四季完成的優先股配售的借貸成本較高。

Net loss in the second quarter was $64.3 million compared to $19.5 million in the prior year. The increase in our net loss of $44.8 million year over year is attributable to the noncash goodwill impairment charge of $45.4 million.

第二季淨虧損為 6,430 萬美元，而上年同期淨虧損為 1,950 萬美元。我們的淨虧損年增 4,480 萬美元，歸因於 4,540 萬美元的非現金商譽減損費用。

Adjusted EBITDA in the second quarter was $11.4 million, a decrease of $2.8 million or approximately 20% compared to the prior year. Our adjusted EBITDA margin in the current quarter was 16.8%, down 370 basis points compared to the same period in the prior year.

第二季調整後 EBITDA 為 1,140 萬美元，比前一年減少 280 萬美元，約 20%。本季調整後 EBITDA 利潤率為 16.8%，較上年同期下降 370 個基點。

The adjusted EBITDA margin decline is from the increase in headcount-related expenses year over year, including annual merit increases at the beginning of Q2. This combined with the decline in overall revenue year over year led to the decline in adjusted EBITDA margin and the need for the restructuring plan announced earlier this morning and in our quarterly filing. This very difficult decision was a necessary one and will help bring our cost structure where it needs to be and get adjusted EBITDA margins back to above 20% for the rest of fiscal year 2024.

調整後的 EBITDA 利潤率下降是由於員工人數相關費用年增，包括第二季初的年度績效成長。再加上整體營收年減，導致調整後 EBITDA 利潤率下降，並需要今天早上早些時候和我們在季度報告中宣布的重組計劃。這個非常困難的決定是必要的，它將有助於我們的成本結構達到所需的水平，並將調整後的 EBITDA 利潤率在 2024 財年剩餘時間內恢復到 20% 以上。

Finally moving to cash flow, cash provided by operations for the three months ended June 30, 2024, was approximately $4 million, up from $0.6 million used by operations in the prior year period. Free cash flow measured as cash provided by operations less cash used in investing activities also improved year over year from negative $6 million in Q2 2023 to essentially break even in Q2 2024. This significant improvement was driven by less interest expense paid due to the pick feature on the preferred shares and continued focus on cash management.

最後轉向現金流，截至 2024 年 6 月 30 日的三個月營運提供的現金約為 400 萬美元，高於去年同期營運使用的 60 萬美元。以營運提供的現金減去投資活動中使用的現金衡量的自由現金流也逐年改善，從 2023 年第二季度的負 600 萬美元增至 2024 年第二季度基本實現收支平衡。這一顯著改善是由於優先股的精選功能以及對現金管理的持續關注而支付的利息費用減少所致。

Management will continue to be laser focused on cash in the next couple of quarters, especially with the expected one-time cash payments for severance related costs. These costs will put pressure on cash in the current quarter but are expected to be recovered through the estimated cash savings throughout the remainder of 2024.

未來幾季，管理階層將繼續高度關注現金，特別是預計一次性現金支付遣散費相關費用。這些成本將給本季度的現金帶來壓力，但預計將透過 2024 年剩餘時間的預計現金節省來彌補。

As of June 30, 2024, cash and cash equivalents were $22.3 million compared to $23.5 million as of June 30, 2023, and $27.1 million as of December 31, 2023. And with that, I'll pass it back to you, Ron.

截至2024年6月30日，現金及現金等價物為2,230萬美元，而截至2023年6月30日為2,350萬美元，截至2023年12月31日為2,710萬美元。這樣，我會把它傳回給你，羅恩。

Thank you, Paul. Before opening the call to questions, I just want to summarize our key talking points for today. Although Q2 didn't fully meet our expectations, we continue to see strength in our operations, including solid TCV and revenue growth in the connectivity business, and an IoT market that remains very large with plenty of room for growth over both the near and longer term.

謝謝你，保羅。在開始提問之前，我只想總結我們今天的主要談話要點。儘管第二季度沒有完全達到我們的預期，但我們繼續看到我們的營運實力，包括連接業務的穩定TCV 和收入成長，以及物聯網市場仍然非常大，在短期和長期內都有很大的成長空間學期。

After a thorough period of review, we are acting quickly and decisively to streamline our cost base, and we are focusing on existing resources and reinvestment on targeted areas of the business that have the greatest potential for long-term profitable growth.

經過一段時間的徹底審查，我們正在迅速而果斷地採取行動，以精簡我們的成本基礎，我們將重點放在現有資源上，並對最有長期盈利增長潛力的目標業務領域進行再投資。

While we expect to see a meaningful impact from the restructuring in 2024, we expect a more fulsome contribution in 2025. We're happy to revisit any of these key points during our Q&A. But before turning over the call to the operator, I'd like to say I'm deeply grateful to the board for entrusting me with the role of president, and CEO, and Board member.

雖然我們預計重組將在 2024 年產生有意義的影響，但我們預計 2025 年將產生更豐富的貢獻。我們很高興在問答中重新審視這些關鍵點。但在將電話轉給營運商之前，我想說，我非常感謝董事會委託我擔任總裁、執行長和董事會成員。

I'm passionate about KORE's potential and believe we are well positioned to capitalize on opportunities ahead. Our team's hard work and commitment are the foundation of our success. The steps we've outlined today will accelerate our journey. Thank you, and I look forward to your questions.

我對 KORE 的潛力充滿熱情，並相信我們處於有利地位，能夠充分利用未來的機會。我們團隊的辛勤工作和承諾是我們成功的基礎。我們今天概述的步驟將加速我們的進程。謝謝您，我期待您的提問。

(Operator Instructions) Lance Vitanza, Cowen.

（操作員指示）Lance Vitanza，Cowen。

Thanks, guys, for taking the questions. Ron, you're laying off 25% of the workforce. And I'm sorry that it's come to this, these types of restructurings are never easy nor fun. And I guess the temptation is sometimes to simply layer in the $20 million to $22 million of incremental savings onto the prior revenue forecast and just sort of increase projected EBITDA accordingly. But of course, it's never that simple.

謝謝你們提出問題。Ron，你要解僱 25% 的員工。我很抱歉事情發展到這個地步，這些類型的重組從來都不是一件容易的事，也不是一件有趣的事。我想有時人們會傾向於簡單地將 2000 萬至 2200 萬美元的增量節省疊加到先前的收入預測中，並相應地增加預期的 EBITDA。但當然，事情從來沒有這麼簡單。

Can you hit those prior revenue projections with such a smaller staff or do you necessarily need to now create a new lower revenue forecast as a result of the layoffs?

您能否以如此少的員工達到先前的收入預測，或者您現在是否需要因裁員而製定新的較低收入預測？

Yes, thanks for the question. Again, the actions we're taking aren't easy, and I appreciate you acknowledging that. From our perspective, we see great opportunities ahead, particularly in the connectivity business. The solutions business, as Paul highlighted, has been cyclical, but we see great opportunities in terms of the connectivity business, the TCV growth, and we believe this restructuring will actually help us focus.

是的，謝謝你的提問。再說一遍，我們正在採取的行動並不容易，我感謝您承認這一點。從我們的角度來看，我們看到了巨大的機遇，特別是在連接業務方面。正如 Paul 所強調的那樣，解決方案業務具有周期性，但我們在連接業務、TCV 成長方面看到了巨大的機會，我們相信這次重組實際上將幫助我們集中精力。

And I'm quite confident in terms of our revenue growth and obviously the focus around profitable revenue growth. In terms of forward-making statements around prior revenue estimates, I think I'll leave that up to Paul. But I would close in saying that we actually believe this restructuring will actually facilitate us to drive more improved growth going ahead.

我對我們的收入成長以及顯然對獲利收入成長的關注非常有信心。就先前收入預測的前瞻性陳述而言，我想我會把它留給保羅。但我最後要說的是，我們實際上相信這次重組實際上將有助於我們推動未來進一步改善成長。

Yeah, Lance, I'll just add, we're not obviously giving any guidance on 2025 or anything yet. But to your first point on taking the whole cash savings of 2022 to the bottom line, that obviously that's not the case.

是的，蘭斯，我只是補充一下，我們顯然還沒有就 2025 年或其他任何事情提供任何指導。但對於您關於將 2022 年全部現金節省計入底線的第一點，顯然情況並非如此。

From an adjusted EBITDA percentage amount, it would be a little bit less, as we have less capitalization and so forth. But as we mentioned, we're also going to use some of that savings to reinvest in the more profitable types of business that will help with leading to that revenue growth.

從調整後的 EBITDA 百分比來看，它會少一點，因為我們的資本較少等等。但正如我們所提到的，我們還將利用其中的一些節省來再投資於利潤更高的業務類型，這將有助於實現收入成長。

And then if I could for just on the follow-up, and I recognize that it's too early for guidance. But when we think about 2025, should we be thinking about this more as a year of stabilization? And with perhaps the first half of 2025 down on a year over year or maybe even sequential basis versus improvement in the second half of 2025, how would you characterize your thinking around 2025 at this stage?

然後，如果我可以進行後續行動，我意識到現在提供指導還為時過早。但當我們思考 2025 年時，我們是否應該更多地將其視為穩定的一年？與 2025 年下半年的改善相比，2025 年上半年可能會同比下降，甚至環比下降，您如何描述現階段您對 2025 年左右的想法？

Yeah, so I would say from the Connectivity business first. That's pretty stable and growing at the single-digit marks, and we don't see that changing. The lumpiness that will happen is in IoT Solutions. And we mentioned the delay of this one project, that's going to likely start in Q1-Q2 of 2025.

是的，所以我首先要說的是連結業務。這是相當穩定的，並且以個位數的速度成長，我們認為這種情況不會改變。物聯網解決方案將會出現混亂。我們提到了這個專案的延遲，該專案可能會在 2025 年第一季至第二季開始。

So, I don't want to say that that's going to be lower than the second half because of the timing of this one project that's been delayed. So, that will determine, again, the lumpiness of our revenue in 2025.

因此，我不想說這將低於下半年，因為這個專案的時間被推遲了。因此，這將再次決定我們 2025 年收入的波動性。

Okay, thanks. I'll get back into the queue. I've got some more questions, but I'll pass the baton. Thanks.

好的，謝謝。我會回到隊列中。我還有一些問題，但我會傳遞接力棒。謝謝。

Scott Searle, Roth Capital Partners.

史考特‧塞爾，羅斯資本合夥人。

Good morning. Thanks for taking the questions, and Ron, congratulations on the formal appointment. Maybe just a couple of quick clarifications. Paul, you gave the services growth figure. I think year over year was about 16%, but that included Twilio. I'm wondering if you could calibrate us in terms of what the organic growth looked like in the second quarter.

早安.感謝您提出問題，羅恩，祝賀您的正式任命。也許只是一些快速的澄清。保羅，您給了服務業成長數據。我認為同比約為 16%，但這包括 Twilio。我想知道您是否可以根據第二季的有機成長來調整我們。

And then, in the immediate outlook into the third and fourth quarter, it seems like the Connectivity side continues to build. I'm wondering if we're expecting some modest sequential increases.

然後，從第三季和第四季的近期前景來看，連結性方面似乎仍在繼續發展。我想知道我們是否預計會有一些適度的連續成長。

And rolling that into '25 then, Ron, I know this, I guess, a little bit of a follow up on Lance's question, but if you're adding TCV at a good clip, which you are year-to-date, it would seem to indicate that, on the Connectivity side, we continue to see decent growth into 2025. I'm wondering if you could give some early thoughts on how that's going translate into Connectivity sales in '25?

然後將其滾動到 25 年，羅恩，我知道這一點，我想，這是對蘭斯問題的一點後續行動，但如果你在一個很好的剪輯中添加 TCV，你今年迄今為止，它這似乎表明，在連接方面，我們將繼續看到2025 年的良好成長。我想知道您是否可以就如何將其轉化為 25 年的連接銷售提供一些早期想法？

Yeah, sure, I'll try to take that first, and then pass it over to Paul. Yeah, I think your question is a good one. I mean I wouldn't describe 2025 as a stabilization year. I see it as a growth year. I look at the TCV, the types of wins, a few changes we can make in terms of converting the revenue faster, where it's obviously in our control or structuring the agreement slightly differently.

是的，當然，我會嘗試先接受，然後將其傳遞給保羅。是的，我認為你的問題問得很好。我的意思是，我不會將 2025 年描述為穩定的一年。我認為這是成長的一年。我查看了 TCV、勝利的類型、我們可以在更快地轉換收入方面做出的一些改變，這顯然在我們的控制範圍內，或者協議的結構略有不同。

I see growth potential in the Connectivity business in 2025. I wouldn't characterize it as a stabilization year. So, when you look at the TCV growth, first-half of the year at $96 million versus the $60 million prior year, we have a healthy business in Connectivity. And with this restructuring, we're going to focus even more on it.

我看到 2025 年連結業務的成長潛力。我不認為今年是穩定的一年。因此，當你觀察 TCV 的成長時，今年上半年為 9,600 萬美元，而去年為 6,000 萬美元，我們在連結領域擁有健康的業務。透過這次重組，我們將更加關注它。

And so, I'm quite optimistic. Of course, given that I'm only, again, still three months in the roll when we have this restructuring, I believe this is going to really free us up to focus on this Connectivity business. And I would see acceleration, if anything else, but Paul?

所以，我非常樂觀。當然，考慮到我們進行重組的時間只有三個月，我相信這將真正讓我們有時間專注於連結業務。如果有其他的話，我會看到加速，但是保羅？

Scott, we did mention in the script and in the press release, it was 2% organic for Q2 year over year. From a sequential, we didn't mention, but the Connectivity revenue was down a little bit become of some one-time stuff in Q1 on overages and so forth. But going forward, for Q3, Q4, we do expect growth on the Connectivity side, and then Solutions to be pretty flattish, but again, could be lumpy based on timing of shipments.

史考特，我們確實在劇本和新聞稿中提到，第二季的自然成長率年比為 2%。從順序來看，我們沒有提及，但由於第一季的超額等原因，連接收入略有下降。但展望未來，對於第三季度、第四季度，我們確實預計連接方面的成長，然後解決方案將相當平坦，但同樣，根據發貨時間，可能會出現波動。

Great, very helpful. And if I could from, I guess, another higher-level question, Ron, I'm sure you've been racking up the miles in terms of customer world tour. Synthesizing some of that feedback, where is the company's real strength? Why are you winning in terms of features and otherwise versus the competitive landscape? Who are you losing to? I'm curious in terms of the early run here.

太棒了，非常有幫助。我想，如果我可以提出另一個更高層次的問題，羅恩，我相信您在客戶世界巡迴演唱會方面已經取得了長足的進步。綜合一些回饋，該公司的真正實力在哪裡？為什麼您在功能方面獲勝，而在其他方面與競爭格局相比？你輸給誰了？我對這裡的早期運行很好奇。

And then, you've referenced analytics and AI, those are expensive areas of investment. It sounds like you're going to continue to invest in those areas. But how does that play in and how do you manage the cost into those types of investments? Thanks.

然後，您提到了分析和人工智慧，這些都是昂貴的投資領域。聽起來您將繼續在這些領域進行投資。但這如何發揮作用以及如何管理這些類型投資的成本？謝謝。

Sure. A lot in there, I'll try to answer that and give you a follow-up if you need me. In terms of -- the feedback I would have is I've spent the time out on the road with customers has been -- our customers are on balance are very happy. They continue to talk about the quality of service. They like the expertise that we have with our teams that help them make decisions around hardware or as they move into new countries and even in some cases navigating that growth in a new country.

當然。裡面有很多內容，我會盡力回答這個問題，如果您需要我的話，我會為您提供後續資訊。就這一點而言——我想要得到的反饋是我在路上與客戶一起度過了——總的來說，我們的客戶非常高興。他們繼續談論服務品質。他們喜歡我們團隊所擁有的專業知識，這些專業知識可以幫助他們在硬體方面或在進入新國家/地區時做出決策，甚至在某些情況下幫助他們在新國家/地區實現成長。

So, the feedback on balance is very strong from our existing customers. Of course, I think what you see in our announcements and some of my comments, I believe we have room for improvement in customer support. And so, I think from my perspective, I think we can do better for the customers than we're doing today. But on balance, they're very, I would say very happy. It was a real bright spot over the first 90 days of the time that I've spent out.

因此，我們現有客戶對平衡性的回饋非常強烈。當然，我認為您在我們的公告和我的一些評論中看到的，我相信我們在客戶支援方面還有改進的空間。因此，從我的角度來看，我認為我們可以為客戶做得比現在更好。但總的來說，我想說，他們非常高興。這是我外出度過的頭 90 天真正的亮點。

In terms of where we're winning, to me, the use cases seem to be multi-country. Certainly this multi, multi, multi proposition definitely resonates in the field, right? So in terms of customers that are multi-country, certainly there's a lot of customers that have been looking at backup, liking our ability to provide multiple carrier solutions as a differentiation point.

就我們獲勝的領域而言，對我來說，用例似乎是多國的。當然，這個多、多、多的命題肯定會在該領域引起共鳴，對吧？因此，就跨國客戶而言，肯定有很多客戶一直在關注備份，喜歡我們提供多個運營商解決方案的能力作為差異化點。

I think the full-managed services, I would say, at least in a few of the deals that I commented on earlier, the Connected RV company particularly, where we're winning that deal due to our full-service capability. So, we're not just providing them the SIM technology, but we're actually providing them device management. We're providing them obviously the logistics support, but also some analytics as well.

我認為，至少在我之前評論過的幾筆交易中，我認為是全面託管服務，特別是互聯房車公司，我們憑藉全方位服務能力贏得了這筆交易。因此，我們不僅為他們提供 SIM 技術，而且實際上為他們提供設備管理。我們顯然為他們提供了物流支持，但也提供了一些分析。

So, I would say that those would probably be my initial comments as it relates to the first two parts of your question. In terms of investing, I guess what I would say is that use case was really the company being an AI company. And in terms of the investments, to me, I think the investments that we want to make really are around the connectivity business, strengthening our footprint, increasing our capabilities and features if you will around the console and the like as being the areas of our focus in our investment.

所以，我想說，這些可能是我最初的評論，因為它與你問題的前兩部分有關。在投資方面，我想我想說的是，用例實際上是一家人工智慧公司。就投資而言，對我來說，我認為我們真正想要進行的投資是圍繞連接業務，加強我們的足跡，增加我們的能力和特性，如果你將控制台等作為我們的領域的話。我們的投資。

Okay, very helpful. Ron, if I could maybe just add on in terms of your customer conversations, I think product or hardware always seems like it's historically been a necessary evil. Certainly, this quarter was nice to see the improvement in the gross margins. But before having this conversation two to three years from now, are you guys necessarily in the hardware and product business? Thanks.

好的，非常有幫助。羅恩，如果我可以補充您與客戶的對話，我認為產品或硬體在歷史上似乎總是一種不可避免的罪惡。當然，本季毛利率的改善是令人高興的。但在兩三年後進行這次對話之前，你們一定是從事硬體和產品業務的嗎？謝謝。

Yeah, it's a good question. Looking two years out sitting where I sit today, I feel a bit hesitant to answer the question. What I would say is we want to deliver what the customers need. And there are several customers that highlight to me the full-service nature of our offering is really important to them.

是的，這是一個好問題。回顧兩年後的今天，我對回答這個問題感到有點猶豫。我想說的是，我們希望提供客戶所需的東西。有幾位客戶向我強調，我們提供的全方位服務對他們來說非常重要。

That being said, we are looking at ways to address some of the challenges that this part of the business provides for us. So, for example, in Europe, we're very close to signing a deal where we'll have a partner, an actual logistics partner in that particular case. And we're also looking at others in the connected health in terms of relationships where we can leverage others' expertise in this area.

話雖這麼說，我們正在尋找方法來解決這部分業務給我們帶來的一些挑戰。例如，在歐洲，我們非常接近簽署一項協議，我們將擁有一個合作夥伴，在特定情況下是實際的物流合作夥伴。我們也關注互聯健康領域的其他人的關係，以便我們可以利用其他人在該領域的專業知識。

But to me, one of the real growth areas is also device management and the strength that we have with our people on helping them navigate changes and just navigating upgrades and the like with the devices in the field. So, the partnerships I would say are more towards the physical logistics more so than device management or those types of capabilities.

但對我來說，真正的成長領域之一也是設備管理以及我​​們與我們的員工在幫助他們應對變化以及使用現場設備進行升級等方面的優勢。因此，我想說的合作夥伴關係更多是針對實體物流，而不是設備管理或此類功能。

Very helpful. Thanks so much. I'll get back in the queue.

非常有幫助。非常感謝。我會回到隊列中。

Thank you.

謝謝。

Meta Marshall, Morgan Stanley.

梅塔‧馬歇爾，摩根士丹利。

Hi, this is Mary on for Meta Marshall. I had a question on like the cost-conscious behavior that you're seeing from customers. Are you seeing healthy RFP activity and just more cautiousness around ramping of deals or is the cautiousness extending to RFP activity as well? Thanks.

大家好，我是梅塔·馬歇爾的瑪麗。我有一個關於客戶的成本意識行為的問題。您是否看到了健康的 RFP 活動以​​及對交易增加的更加謹慎，還是這種謹慎態度也延伸到了 RFP 活動？謝謝。

I would say it's twofold. When we say in our business, cost-conscious customers, they're looking at their base and making sure devices that aren't passing traffic are being shut off or put into suspension mode and so forth. So, they're looking a lot closer at their base and optimizing their costs.

我想說這是雙重的。當我們說在我們的業務中，注重成本的客戶時，他們正在查看自己的基礎並確保不通過流量的設備關閉或進入暫停模式等。因此，他們正在更加密切地關注自己的基礎並優化成本。

So, when they optimize, then obviously that takes a hit on our top line. And then, when it comes to deployments and so forth, we are seeing still some customers have some supply chain issues and so forth, but there is a slower ramp up in certain customers. So, it's both.

因此，當他們進行最佳化時，顯然這會對我們的營收產生影響。然後，在部署等方面，我們仍然看到一些客戶存在一些供應鏈問題等，但某些客戶的成長速度較慢。所以，兩者都是。

Matt Niknam, Deutsche Bank.

馬特·尼克南，德意志銀行。

Hi. This is Michael Allen on for Matt. Thanks for taking the question. I just kind of wanted to dig in a little more on ARPU. So, you talked about it, it grew year over year. But it was still a pretty meaningful decline sequentially. I was just wondering if you could just give a little more on to what drove that?

你好。我是邁克爾艾倫 (Michael Allen) 替馬特 (Matt) 發言。感謝您提出問題。我只是想更深入地了解 ARPU。所以，你談到了它，它逐年增長。但這仍然是一個相當有意義的連續下降。我只是想知道您是否可以多介紹一下是什麼推動了這一點？

Yeah. So, in Q1, as I said, there was a couple one-time big overage that we had for a particular customer. So, when you do a calculation within a particular quarter, you'll get that bump. So, we were at the 105, 106 number. That normalized back into Q2.

是的。因此，正如我所說，在第一季度，我們對某個特定客戶出現了幾次一次性的大幅超額。因此，當您在特定季度內進行計算時，您會得到該提升。所以，我們在 105、106 號。這在第二季度恢復正常。

And we don't forecast for these big blips or anything like that going forward. But we do expect it to remain stable here at the dollar or even higher range as a lot of our new business continues to be higher bandwidth programs.

我們預計未來不會出現這些重大事件或類似情況。但我們確實預計它會在美元甚至更高的範圍內保持穩定，因為我們的許多新業務仍然是更高頻寬的項目。

Got it.

知道了。

Thank you.

謝謝。

Mike Latimore, Northland Capital.

麥克‧拉蒂摩爾 (Mike Latimore)，北國資本 (Northland Capital)。

Hi, this is Aditya on behalf of Mike Latimore. Could you please tell me what is your main debt covenants for this year?

大家好，我是 Aditya，代表 Mike Latimore。您能告訴我今年您的主要債務契約是什麼嗎？

We have -- the two main debt covenants are first-lien covenant and a total debt covenant. Those are the two main ones we have, and no issues on those for this year.

我們有兩個主要的債務契約是第一留置權契約和總債務契約。這是我們擁有的兩個主要問題，今年沒有任何問題。

All right. And also, could you give some color on the free cash flow? Do you still target being free cash flow positive exiting this year?

好的。另外，您能否對自由現金流進行一些說明？今年的退出目標仍是自由現金流為正嗎？

Yes. So, now with the restructuring plan, depending on the timing of severance costs and so forth, exiting 2024, we do expect to be positive.

是的。因此，現在根據重組計劃，根據遣散費等的時間安排，2024 年結束，我們確實預計會是積極的。

Thank you.

謝謝。

Thank you. We've reached the end of our question-and-answer session. I'd like to turn the floor back over to management for any further or closing comments.

謝謝。我們的問答環節已經結束。我想將發言權交還給管理階層，以徵求進一步的意見或結束意見。

Thank you, everyone, for joining today's earnings call. We look forward to updating you on our progress against our restructuring plan with our third quarter results in November. Have a good day.

感謝大家參加今天的財報電話會議。我們期待在 11 月透過第三季業績向您通報重整計畫的最新進展。祝你有美好的一天。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您今天的參與。