KVH Industries Inc (KVHI) 2023 Q4 法說會逐字稿

Good day and thank you for standing by. Welcome to the KVH Industries fourth quarter 2023 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to Roger Kuebel, Chief Financial Officer. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 KVH Industries 2023 年第四季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。我現在想將會議交給財務長 Roger Kuebel。請繼續。

Thank you, operator. Good morning, everyone, and thank you for joining us today for KVH Industries fourth quarter results, which are included in the earnings release we published earlier this morning.

謝謝你，接線生。大家早上好，感謝您今天加入我們，了解 KVH Industries 第四季度業績，該業績包含在我們今天早上早些時候發布的財報中。

Joining me on the call are the company's Chief Executive Officer, Brent Bruun, and our Corporate Controller, Anthony Pike. As you probably saw in our press release, Anthony will be taking over as CFO as of April 1.

與我一起參加電話會議的還有公司執行長布倫特布魯恩 (Brent Bruun) 和我們的公司財務總監安東尼派克 (Anthony Pike)。正如您可能在我們的新聞稿中看到的那樣，安東尼將於 4 月 1 日起接任財務長。

Before we dive in, the usual announcements. First, if you would like a copy of the earnings release or if you would like to listen to a recording of today's call, both will be available on our website. If you are listening via the web, feel free to submit questions to ir@kvh.com.

在我們深入討論之前，先發布一些常見的公告。首先，如果您想要一份收益報告的副本，或者想要收聽今天電話會議的錄音，都可以在我們的網站上找到。如果您透過網路收聽，請隨時向 ir@kvh.com 提交問題。

Further this conference call will contain certain forward-looking statements that are subject to numerous assumptions and uncertainties that may cause our actual results to differ materially from those expressed in these statements. We undertake no obligation to update or revise any of these statements.

此外，本次電話會議將包含某些前瞻性陳述，這些陳述受到眾多假設和不確定性的影響，可能導致我們的實際結果與這些陳述中表達的結果有重大差異。我們不承擔更新或修改任何這些聲明的義務。

We will also discuss adjusted EBITDA, which is a non-GAAP financial measure. You'll find a definition of this measure in our press release as well as a reconciliation to comparable GAAP numbers. We encourage you to review the cautionary statements made in our SEC filings, specifically those under the heading Risk Factors in our third quarter Form 10-Q filed on November 9, 2023, and our 2023 form 10-K, which we plan to file later today.

我們還將討論調整後的 EBITDA，這是一項非 GAAP 財務指標。您可以在我們的新聞稿中找到該衡量標準的定義以及與可比較 GAAP 數據的調整表。我們鼓勵您查看我們在SEC 文件中所做的警示性聲明，特別是我們於2023 年11 月9 日提交的第三季度10-Q 表格中的風險因素標題下的聲明，以及我們計劃稍後提交的2023 年10-K 表格中的警告聲明今天。

The Company's other SEC filings are available directly from the investor information section of our website.

該公司向 SEC 提交的其他文件可直接從我們網站的投資者資訊部分取得。

Now to walk you through the highlights, I'll turn the call over to Brent.

現在，為了向您介紹重點內容，我將把電話轉給布倫特。

Thank you, Roger, and good morning, everyone. In March 2022, we kicked off a transformative period in our company. We did this because we recognized that we needed to change how we operated. We focused on our core business, mobile connectivity, and we have made excellent progress in 2022 and throughout 2023. Last year, we expanded our multi-orbit, multichannel portfolio with the addition of OneWeb to our service offerings and look forward to launching this service in the second quarter of this year.

謝謝你，羅傑，大家早安。 2022 年 3 月，我們開啟了公司的變革期。我們這樣做是因為我們認識到我們需要改變我們的運作方式。我們專注於我們的核心業務——行動連接，我們在2022 年和整個2023 年取得了出色的進展。並期待推出這項服務今年第二季。

We entered into an exclusive maritime distribution agreement with Kognitive Networks resulting in our new CommBox Edge, which I will discuss shortly. Thanks to our Starlink service provider agreement, we are delivering Starlink hardware, airtime, and our OneCare service to support end-users and OEMs. And we successfully renegotiated our Intelsat contract to sustain our global GEO network on more favorable financial terms.

我們與 Kognitive Networks 簽訂了獨家海上分銷協議，從而產生了新的 CommBox Edge，我很快就會對此進行討論。由於我們的 Starlink 服務供應商協議，我們正在提供 Starlink 硬體、通話時間和 OneCare 服務來支援最終用戶和 OEM。我們成功地重新談判了 Intelsat 合同，以更優惠的財務條款維持我們的全球 GEO 網路。

But we also experienced competitive headwinds in 2023. Changes in the market impacted our VSAT and satellite TV terminal sales, which have been an essential element of our offerings, but are no longer contributing toward achievement of our profitability goals. At the same time, demand for LEO service began to accelerate putting pressure on GEO airtime services.

但我們在 2023 年也經歷了競爭逆風。同時，低軌服務的需求開始加速，對GEO通話服務帶來壓力。

We did have a sequential subscriber contraction in the fourth quarter due to competitive factors. With quarterly airtime revenue of $25.9 million, down 4% from Q4 last year, we expect to offset that contraction and resume subscriber growth in 2Q with additional Starlink activations and with the launch of our OneWeb service.

由於競爭因素，我們在第四季度的訂閱用戶確實出現了連續收縮。季度通話收入為 2,590 萬美元，比去年第四季下降 4%，我們預計透過額外的 Starlink 啟動和 OneWeb 服務的推出，可以抵消這一萎縮並在第二季度恢復用戶成長。

Annual airtime overall was up 4% to $107 million. While airtime margins have softened, they remain strong interest and our subscriber levels at the end of 2023 were even with year-end 2022. However, our annual airtime revenue growth was offset by declining hardware sales, which require a high fixed cost dedicated manufacturing facility.

年度總播放量成長了 4%，達到 1.07 億美元。雖然通話時間利潤已經疲軟，但人們仍然有濃厚的興趣，並且我們在2023 年底的訂戶水平與2022 年底持平。專用製造設施。

The airtime revenue is core to our business. And we are confident in its future as we increase our Starlink airtime sales and add exciting new services such as OneWeb to our portfolio. At the same time, we believe that demand for our hardware products no longer justifies a dedicated manufacturing facility. In February, we began a reorganization that allows us to focus on our commitment to deliver world-class integrated services using our multi-orbit, multi-channel network. These changes also accelerated our transition from a capital-intensive hardware focused business to a more nimble, integrated services-oriented organization.

通話時間收入是我們業務的核心。我們對其未來充滿信心，因為我們增加了 Starlink 通話時間銷售額，並將 OneWeb 等令人興奮的新服務添加到我們的產品組合中。同時，我們相信對我們硬體產品的需求不再證明有必要設立專門的製造工廠。今年二月，我們開始進行重組，使我們能夠專注於利用我們的多軌道、多通路網路提供世界一流的綜合服務的承諾。這些變化也加速了我們從以資本密集型硬體為中心的業務轉向更靈活、以整合服務為導向的組織的轉變。

Between now and the end of June, we've planned to build sufficient TracNet and TracVision inventory to meet anticipated demand for the foreseeable future, after which we'll wind down our manufacturing operations. In addition, we have ample inventory of AgilePlans VSAT terminals, which we will continue to refurbish and use to support new AgilePlans VSAT subscriptions for years to come.

從現在到 6 月底，我們計劃建立足夠的 TracNet 和 TracVision 庫存以滿足可預見的未來的預期需求，之後我們將結束我們的製造業務。此外，我們還擁有充足的 AgilePlans VSAT 終端庫存，我們將在未來幾年繼續翻新並使用這些終端來支援新的 AgilePlans VSAT 訂閱。

We also own our satellite terminal intellectual property and would investigate outsourcing future manufacturing should the demand warranty. Because of the reduced need for manufacturing and support services, we are in the process of reducing our headcount across several departments, a process that began last month and will continue until the end of June.

我們也擁有衛星終端智慧財產權，如果需要保修，我們將調查外包未來的製造。由於對製造和支援服務的需求減少，我們正在減少多個部門的員工人數，這個過程從上個月開始，將持續到六月底。

I do not expect these reductions to impair our ability to deliver products worldwide or to provide 24X7, 365 services and support to our customers and partners. Although we will have a smaller team, we will continue our innovative research and development approach for new products and third-party solutions that we can add to our profit portfolio.

我預計這些削減不會削弱我們在全球範圍內交付產品或為客戶和合作夥伴提供 24X7、365 服務和支援的能力。儘管我們的團隊規模較小，但我們將繼續對新產品和第三方解決方案進行創新研發，並將其添加到我們的利潤組合中。

Separately, we have expanded our sales team globally, in particular, in Japan and South America. I'm excited about the prospects ahead of us and believe that our growing product and service portfolio will strengthen our position as a world-class integrated solutions provider. Our newest addition is the CommBox Edge, a result of our exclusive distribution agreement with Kognitiv Networks.

另外，我們也在全球擴大了銷售團隊，特別是在日本和南美洲。我對我們面前的前景感到興奮，並相信我們不斷增長的產品和服務組合將鞏固我們作為世界一流整合解決方案提供者的地位。我們的最新產品是 CommBox Edge，這是我們與 Kognitiv Networks 簽訂獨家經銷協議的結果。

CommBox Edge offers intuitive network and bandwidth management tools and onboard edge computing, simplifying the multi-orbit, multichannel connectivity found on commercial vessels and yachts. CommBox Edge is an outstanding resource for maritime IT professionals who want to control the growing array of communication options such as VSAT, LEO, and 5G cellular.

CommBox Edge 提供直覺的網路和頻寬管理工具以及機載邊緣運算，簡化了商船和遊艇上的多軌道、多通道連接。對於想要控制 VSAT、LEO 和 5G 蜂窩等不斷增長的通訊選項的海事 IT 專業人員來說，CommBox Edge 是一個出色的資源。

We are also working closely with OneWeb to introduce their global LEO network with custom KVH airtime plans in the second quarter of this year. We are eager to offer this fast affordable enterprise-grade solution as a new option from mariners considering we have services for their vessels.

我們也與 OneWeb 密切合作，在今年第二季推出他們的全球 LEO 網路以及客製化的 KVH 通話時間計畫。考慮到我們為海員的船舶提供服務，我們渴望提供這種快速、經濟實惠的企業級解決方案，作為海員的新選擇。

As part of this initiative, we expect to announce a new distribution agreement for commercial grade maritime panel terminals to support the OneWeb service. We also believe that the expanding coverage and capabilities delivered by 5G cellular service will bring tremendous value to mariners in coastal waters. 5G connections offer a low per gigabyte cost and data speeds as fast or better than LEO services.

作為該計劃的一部分，我們預計將宣布一項新的商業級海事面板終端分銷協議，以支援 OneWeb 服務。我們也相信，5G 蜂窩服務提供的不斷擴大的覆蓋範圍和功能將為沿海水域的海員帶來巨大的價值。 5G 連線每 GB 成本較低，資料速度與 LEO 服務一樣快或更好。

Additionally, the compact affordable technology is well suited for smaller vessels and integration with decent LEO systems on chips of all sizes. We look forward to sharing more news about our developments later in the second quarter.

此外，這種緊湊且經濟的技術非常適合小型船舶，並與各種尺寸晶片上的優質 LEO 系統整合。我們期待在第二季稍後分享更多有關我們發展的消息。

So to wrap things up, we are firmly focused on the future following the recent changes in our organization. We are making excellent progress in our evolution as a world-class integrated solutions provider. We are expanding our multi-orbit, multi-channel capabilities with LEO connectivity, and we'll be adding a new 5G service. Our goal is to continue to grow our service revenue and resume growth of our subscriber base following the launch of OneWeb. We have a strong business built on global airtime and value-added services. We have an outstanding team, and I'm confident in our company's future growth and success.

總而言之，在我們組織最近發生變化之後，我們堅定地關注未來。作為世界一流的整合解決方案提供商，我們正在取得巨大進展。我們正在透過 LEO 連接擴展我們的多軌道、多通道功能，並且我們將添加新的 5G 服務。我們的目標是在 OneWeb 推出後繼續增加我們的服務收入並恢復我們的用戶群成長。我們擁有建立在全球通話時間和增值服務基礎上的強大業務。我們擁有一支優秀的團隊，我對我們公司未來的成長和成功充滿信心。

Now with that, I'll turn it over to Roger for additional insights into our results.

現在，我將把它交給羅傑，以獲取對我們結果的更多見解。

Thanks, Brent. As a reminder, I would like to note that similar to our call for Q3, I will not restate data that is in the earnings release or clearly described in our 10-K. I will focus my comments on information that either elaborates on or clarifies the published data.

謝謝，布倫特。提醒一下，我想指出，與我們對第三季的呼籲類似，我不會重述收益發布中或 10-K 中明確描述的數據。我將集中評論闡述或澄清已發布數據的資訊。

First, in the process of completing our audit, we concluded that a correction was required in how we recognize revenue for certain product sales to our commercial customers. Back in 2018, we adopted accounting standard ASC 606. And as a result for certain product sales, we deferred both revenue and costs over the expected life of the customer, treating the product sale and the related airtime service as a single performance obligation.

首先，在完成審計的過程中，我們得出的結論是，我們需要對向商業客戶銷售某些產品的收入確認方式進行更正。早在2018年，我們就採用了會計準則ASC 606。

In discussions with our auditors during our 2023 audit, we concluded that these product sales should not be deferred, but rather taken as revenue at the time of the sale. This has resulted in a non-material correction to our financial statements for 2022 and the first nine months of 2023. The exact impact of this can be seen by quarter in the footnote 16 of our 10-K, but at a high level, we are reporting total revenue for 2023 of $132.4 million. And on the prior basis, that would have been [$133.4 million]. So, a reduction of $1 million for this accounting change. Gross profit would have been $130,000 more under the prior method.

在 2023 年審計期間與審計師的討論中，我們得出的結論是，這些產品銷售不應推遲，而應在銷售時視為收入。這導致我們對2022 年和2023 年前9 個月的財務報表進行了非重大修正。 ，我們報告 2023 年總收入為 1.324 億美元。根據先前的計算，該數字為 [1.334 億美元]。因此，此次會計變更減少了 100 萬美元。按照之前的方法，毛利將增加 13 萬美元。

Related to our decision to wind down manufacturing, we took two charges related to raw materials. First, we took a $5.2 million write-down to our inventory to account for inventory on hand that is in excess of what we anticipate our future need will be.

與我們停止生產的決定有關，我們收取了兩項與原材料相關的費用。首先，我們對庫存進行了 520 萬美元的減記，以說明現有庫存超出了我們預計未來的需求。

Second, we took a reserve of $3.6 million to account for purchase order obligations for raw materials that are not on hand, but for which we've placed noncancelable orders that we do not anticipate needing. This primarily relates to orders placed in the first half of 2023 for components with extremely long lead times due to supply chain shortages.

其次，我們預留了 360 萬美元的儲備金，用於支付手頭上沒有原材料的採購訂單義務，但我們已為此下達了預計不需要的不可取消訂單。這主要與 2023 年上半年因供應鏈短缺而導致交貨時間極長的零件訂單有關。

As demand softened, these delivery schedules were pushed out and it was ultimately concluded that a portion of these orders will not be needed. The charges totaling $8.8 million are both included in cost of product sales and account for all but about $600,000 of the $9.4 million Q4 gross margin loss for products. However, we believe that we are now fully reserved for both of these issues and hopefully we'll cover some of that later this year.

隨著需求疲軟，這些交貨時間表被推遲，最終得出的結論是，這些訂單中的一部分將不再需要。總計 880 萬美元的費用均包含在產品銷售成本中，並且佔第四季度產品毛利率損失 940 萬美元中除約 60 萬美元之外的所有費用。然而，我們相信我們現在已經完全保留了這兩個問題，並希望我們能在今年晚些時候討論其中的一些問題。

Also related to our decision to wind down manufacturing was the reorganization we announced and the elimination of 75 positions. As noted in our press release and related 8-K filing, we expect to incur approximately $3.3 million in severance charges and realize annualized cost savings of approximately $9.3 million from the headcount reductions. Of that $9.3 million, approximately $3.7 million relates to cost of goods sold and $5.6 million relates to OpEx.

與我們縮減生產規模的決定相關的還有我們宣布的重組和裁減 75 個職位。正如我們的新聞稿和相關 8-K 文件中所述，我們預計將產生約 330 萬美元的遣散費，並透過裁員實現每年約 930 萬美元的成本節省。在這 930 萬美元中，約 370 萬美元與銷售成本有關，560 萬美元與營運支出有關。

With respect to our fourth quarter financial results, airtime gross margin, which is not reported in our earnings release, was 34.9%, down from 43.5% last year. The decline being due to lower average revenue per subscriber and higher bandwidth commitments. Total subscribers were roughly flat with Q4 of last year. The Q4 operating expenses of $13.0 million include a $2.1 million write-off of a discontinued software project, but also benefited from an accrual reversal of approximately $1 million.

就我們第四季的財務表現而言，我們的財報中未報告的通話時間毛利率為 34.9%，低於去年的 43.5%。下降的原因是每個用戶的平均收入較低和頻寬承諾較高。用戶總數與去年第四季大致持平。第四季營運費用為 1,300 萬美元，其中包括已終止軟體專案的 210 萬美元沖銷，但也受益於約 100 萬美元的應計沖銷。

So the run rate exiting the year on a normalized basis was around $12 million per quarter. Our adjusted EBITDA for the quarter was a positive $2.3 million and our earnings release has the usual reconciliation of that. Capital expenditures for the quarter were $3.5 million. And so adjusted EBITDA less CapEx was negative by about $1.2 million for Q4.

因此，以正常化計算，今年的運行費用約為每季 1200 萬美元。我們本季調整後的 EBITDA 為正 230 萬美元，我們的收益發布也按慣例對此進行了調整。該季度的資本支出為 350 萬美元。因此，第四季度調整後的 EBITDA 減去資本支出約為 120 萬美元。

For the full year, adjusted EBITDA was $14.3 million and CapEx was $10.6 million. So the net result was a positive $3.7 million. Our ending cash balance of $70 million was up approximately $0.5 million from the beginning of the quarter. Our earnings release provides our guidance for 2024, which is revenue of $125 million to $135 million and adjusted EBITDA of $11 million to $17 million.

全年調整後 EBITDA 為 1,430 萬美元，資本支出為 1,060 萬美元。因此，最終結果為 370 萬美元。我們的期末現金餘額為 7,000 萬美元，比本季初增加了約 50 萬美元。我們的財報提供了 2024 年的指導，即營收為 1.25 億美元至 1.35 億美元，調整後 EBITDA 為 1,100 萬美元至 1,700 萬美元。

This concludes our prepared remarks, and I will now turn the call over to the operator to open the line for the Q&A portion of this morning's call.

我們準備好的演講到此結束，我現在將把電話轉給接線員，以開通今天早上電話問答部分的線路。

(Operator Instructions) Chris Quilty, Quilty Space.

（操作員說明）Chris Quilty，Quilty Space。

So first, I just wanted to follow up on the guidance and what should we assume for product sales -- is sort of the Q4 exit rate -- and obviously, there's a lot of seasonality to product, I'm just trying to figure out how much we should expect that to wind down by the end of the year.

所以首先，我只是想跟進指導以及我們應該對產品銷售假設什麼 - 有點像第四季度的退出率 - 顯然，產品有很多季節性，我只是想弄清楚我們預計到今年年底這種情況會減少多少。

To answer your specific question, we're not going to wind down product sales, we're winding down our build. And we're going to have ample inventory for 2025 and going into '26. It all depends on how much of the demand is, but we won't have any changes as far as the wind down, as far as the availability of hardware.

為了回答你的具體問題，我們不會減少產品銷售，而是減少我們的生產。我們將在 2025 年和 26 年擁有充足的庫存。這一切都取決於需求量，但就硬體的可用性而言，我們不會有任何變化。

(multiple speakers) Applicable to the TracVision and TracNet product lines or track vision go -- do you intend to keep those refurbished and running as long as they demand or is the TracVision being shut off again?

（多個講者）適用於 TracVision 和 TracNet 產品線或 Track Vision Go——您是否打算讓這些產品保持翻新狀態並按需要運行，還是 TracVision 再次關閉？

No, TracVision will have the area, and it's more what we're looking at -- we'll have ample inventory to support the business and demand through '25 and into '26.

不，TracVision 將擁有該區域，而且這更是我們所關注的——我們將擁有充足的庫存來支援 25 年至 26 年的業務和需求。

Great. And should we assume that most of or all of the charges related to the manufacturing wind-down employee reductions are complete as of Q4? Or might we expect additional charges or follow-on charges associated with those actions going into next year?

偉大的。我們是否應該假設與製造業裁員相關的大部分或全部費用已在第四季度完成？或者我們可能會期望明年與這些行動相關的額外費用或後續費用？

Yes, we think we're fully reserved as far as charges. I mean, we will continue to have, you know, sort of product related operations. They won't be manufacturing, but we'll still have a warehouse. We're going to be having, you know, the legal systems coming in and out of that. We're also going to be continued during repair and refurbishment. So there will be activity around the operation -- product operations side, but there won't be manufacturing. But all of the charges, we believe we're fully reserved for everything that would be a charge.

是的，我們認為我們在收費方面是完全保留的。我的意思是，我們將繼續開展與產品相關的業務。他們不會進行製造，但我們仍然會有一個倉庫。你知道，我們將擁有與之相關的法律系統。我們也將繼續進行維修和翻新。因此，將會有圍繞運營的活動——產品運營方面，但不會有製造。但對於所有的收費，我們相信我們完全保留了所有可能收費的費用。

From an inventory perspective, it's absolutely correct. since we're going through a staged wind-down we'll have additional severance charges in both the first and second quarters, right, because --

從庫存角度來看，這是絕對正確的。由於我們正在經歷階段性的停業，我們將在第一季和第二季收取額外的遣散費，對吧，因為——

Yes, the severance charges I mentioned the $3.3 million of severance charges that's going to occur over Qs 1 and 2. But the majority of that will -- probably two thirds of that -- more than two thirds would be in Q2.

是的，遣散費我提到了第一季和第二季將產生的 330 萬美元的遣散費。

Okay, good. Thanks for the clarification there. A question on the gross margins, I think you had said last quarter we should expect about 500 basis point drop or sort of mid 30s gross margin range. Is that still a good range to use and associated with that, when we're looking at the Starlink services that all fall into the product sales category or are there associated services with that?

好的。感謝您的澄清。關於毛利率的問題，我想你上個季度曾說過，我們預計毛利率會下降約 500 個基點，或者在 30 多歲左右的範圍內。當我們查看全部屬於產品銷售類別的 Starlink 服務或是否有與之相關的服務時，這仍然是一個很好的使用範圍並與之相關嗎？

What we had said previously was we expected, you know, airtime margins in the high 30s. I think right now we reported roughly 35%. I think that's probably in that high end or the mid low end of the highs sort of range is probably about right.

我們之前說過，我們預計播出時間利潤率將達到 30 多美元。我想現在我們報告的比例約為 35%。我認為這可能在高點範圍的高端或中低端可能是正確的。

With respect to Starlink, I mean, there are other services that we're going to be providing and associated with that. And in fact, you know, as we go forward, you can't really think about it -- it's not just one or the other. It's going to be VSAT combined with LEO is what we really see sort of the future being. So it's going to be a combination. That's what really focused on as well as the 5G that Brent talked about. We think particularly for everything close to shore, 5G is going to become a big part of that.

關於星鏈，我的意思是，我們將提供並與之相關的其他服務。事實上，你知道，當我們前進時，你無法真正思考它——這不僅僅是其中之一。我們真正看到的未來​​將是 VSAT 與 LEO 的結合。所以這將是一個組合。這才是真正的焦點，也是布倫特談到的 5G。我們認為，特別是對於靠近海岸的所有事物，5G 將成為其中的重要組成部分。

Great. And are there competing products out there with 5G that other resellers are offering?

偉大的。其他經銷商是否提供與 5G 競爭的產品？

5G services are just starting to take hold and there will be competitive services and there's a number of companies that are offering it now.

5G 服務才剛開始普及，將會出現有競爭力的服務，而且現在有許多公司正在提供這種服務。

So one thing I think is key is not to forget it's not just a matter of having 5G. It's a matter of how you integrate 5G with everything else that you've got. So if it's just the leisure customer and that's all they've got as 5G, that's one thing. But for commercial customers, it is going to be 5G integrated with VSAT and also integrated with LEO. And it's how you're going to manage all those together. It is going to be very critical for commercial customers. And that's when I think that we think the CommBox Edge is going to do we think better than anything else.

因此，我認為關鍵的一件事是不要忘記這不僅僅是擁有 5G 的問題。問題在於如何將 5G 與您擁有的其他一切整合。因此，如果只是休閒客戶，而這就是他們所擁有的 5G，那是一回事。但對於商業客戶來說，5G將會與VSAT集成，也會與LEO整合。這就是您如何一起管理所有這些。這對商業客戶來說非常重要。就在那時，我認為 CommBox Edge 會比其他任何東西都更能發揮我們的作用。

And I actually wanted to ask you, is there a version of that CommBox Edge that would be appropriate for a leisure market or is that purely a commercial?

我其實想問你，CommBox Edge 有沒有適合休閒市場的版本，還是純粹是商業版？

It definitely is leisure and it depends on how far down the chain you want your leisure. But absolutely, for both leisure and commercial, we offer two different tiers of services, which all can be found on our website. I'm happy to send those to you as well.

這絕對是休閒，這取決於您想要休閒的程度。但絕對，對於休閒和商業，我們提供兩種不同級別的服務，所有這些都可以在我們的網站上找到。我也很高興將這些發送給您。

And the CommBox Edge is the product you co-developed with Kognitiv (multiple speakers) --

CommBox Edge 是您與 Kognitiv（多揚聲器）共同開發的產品—

They developed it. We have an exclusive maritime distribution agreement. They're going to be doing additional development with some of our suggestions and guidance, but they're doing the development.

他們開發了它。我們有獨家海運分銷協議。他們將根據我們的一些建議和指導進行額外的開發，但他們正在開發。

Great. So when is that product? Is it commercially released now?

偉大的。那麼這個產品什麼時候上市呢？現在已經商用了嗎？

Yes.

是的。

And I haven't seen any marketing materials on it, and I know there are similar products out in the market. How do you position that relative to other integrated systems, you know, in terms of its performance or speed or cost or how does it, you know --?

我還沒有看到任何關於它的行銷資料，我知道市場上有類似的產品。相對於其他整合系統，您如何定位它的性能、速度或成本，或者它如何？

We think it is highly competitive on the services and the elements that come along with -- the offering are highly competitive, not better than others that are introduced in the market. Additionally, the user interface is incredibly user-friendly, and that's one of the things that we're very focused on. I just set it up on my own desk in our office and I'm not overly technical. So it's really about the services that we're able to offer with that, but also the ease-of-use and the integration.

我們認為它在服務和隨之而來的元素方面具有很強的競爭力——產品具有很強的競爭力，但並不比市場上推出的其他產品更好。此外，使用者介面非常人性化，這是我們非常關注的事情之一。我只是把它放在我們辦公室自己的辦公桌上，而且我不太懂科技。因此，這實際上與我們能夠提供的服務有關，而且也與易用性和整合有關。

Got you. And you had mentioned on OneWeb terminal distribution. Can you inform me who has maritime OneWeb terminals available at this point?

明白你了。您也提到 OneWeb 終端分發。您能告訴我目前誰有可用的海事 OneWeb 終端嗎？

They're being developed and released and it's Intellian as well as [Kognitive Networks].

它們正在開發和發布，它是 Intellian 以及 [Kognitive Networks]。

I didn't know they had a maritime product, so. Okay, that's good. You had talked about sales and distribution. You mentioned Japan where you had a pretty long-standing market presence, but why the emphasis on South America?

我不知道他們有海事產品，所以。嗯，很好。您談到了銷售和分銷。您提到日本，您在那裡擁有相當長的市場存在，但為什麼要專注於南美？

With South America, there's a tremendous amount of business. We have a presence in Brazil. As you know, Brazil is Portuguese-speaking. We felt the need to have a local person. He is actually out of Columbia who speak Spanish and can really cater to the rest of the market. And we've been managing South America outside of Brazil -- from Brazil, but also from the US and we felt that it was best suited, and we felt there's more opportunity if we actually had a dedicated resource in region.

南美洲有大量的業務。我們在巴西設有辦事處。如您所知，巴西是葡萄牙語國家。我們覺得需要一個當地人。他實際上來自哥倫比亞，會說西班牙語，並且能夠真正迎合其他市場。我們一直在巴西以外的地區管理南美地區——從巴西，但也從美國，我們認為這是最合適的，我們認為如果我們確實在該地區擁有專門的資源，就會有更多的機會。

Great. And I guess a final question. You had mentioned a focus on R&D and developing more products and services for delivering connectivity. Should we expect a step-up in R&D on a go forward basis? And if so, how much?

偉大的。我想還有最後一個問題。您曾提到要專注於研發和開發更多產品和服務來提供連結。我們是否應該期待在未來的基礎上加強研發？如果是的話，多少錢？

No, it's just step down to scale back team. But the point of the comment was that we're still focused on it or not ignoring it altogether.

不，這只是為了縮減團隊規模而下台。但評論的重點是我們仍然關注它，或者沒有完全忽視它。

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

謝謝。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。