創力 (LTRX) 2024 Q2 法說會逐字稿

Good afternoon and welcome to the Lantronix second-quarter 2024 results conference call. (Operator instructions) Please note this event is being recorded.

下午好，歡迎參加 Lantronix 2024 年第二季業績電話會議。（操作員說明）請注意此事件正在被記錄。

I'd now like to turn the conference over to Rob Adams. Please go ahead.

我現在想把會議交給羅布·亞當斯 (Rob Adams)。請繼續。

Good afternoon, everyone, and thank you for joining the second quarter fiscal 2024 conference call. Joining us on the call today are Saleel Awsare, Chief Executive Officer; and Jeremy Whitaker, Chief Financial Officer. A live and archived webcast of today's call will be available on the company's website. In addition, you can find the call-in details for the phone replay in today's earnings release.

大家下午好，感謝您參加 2024 財年第二季電話會議。今天加入我們電話會議的是執行長 Saleel Awsare；和財務長傑里米·惠特克。今天電話會議的現場和存檔網路廣播將在公司網站上提供。此外，您還可以在今天的財報中找到電話重播的來電詳細資訊。

During this call, management may make forward-looking statements, which involve risks and uncertainties that could cause our results to differ materially from management's current expectations. We encourage you to review the cautionary statements and risk factors contained in the earnings release, which was furnished to the SEC today and is available on our website and in the company's SEC filings, such as its 10-K and its 10-Q.

在這次電話會議中，管理階層可能會做出前瞻性陳述，其中涉及風險和不確定性，可能導致我們的結果與管理階層目前的預期有重大差異。我們鼓勵您查看收益報告中包含的警示性陳述和風險因素，該報告已於今天提交給SEC，並可在我們的網站和公司向SEC 提交的文件（例如10-K 和10-Q）中獲取。

Lantronix undertakes no obligation to revise or update publicly any forward-looking statements to reflect future events or circumstances. Please refer to the news release and the financial information in the Investor Relations section of our website for additional details that will supplement management's commentary.

Lantronix 不承擔公開修改或更新任何前瞻性陳述以反映未來事件或情況的義務。請參閱我們網站投資者關係部分的新聞稿和財務信息，以了解補充管理層評論的更多詳細資訊。

Furthermore, during the call, the company will discuss some non-GAAP financial measures. Today's earnings release, which is posted in the Investor Relations section of our website, describes the differences between our non-GAAP and GAAP reporting and presents reconciliations for the non-GAAP financial measures that we use.

此外，在電話會議期間，該公司將討論一些非公認會計準則財務措施。今天的收益發佈發佈在我們網站的投資者關係部分，描述了我們的非 GAAP 和 GAAP 報告之間的差異，並提供了我們使用的非 GAAP 財務指標的調整表。

With that, I'll now turn the call over to Saleel Awsare, Lantronix's President and CEO.

現在，我將把電話轉給 Lantronix 總裁兼執行長 Saleel Awsare。

Thanks Rob, and thank you, everyone, for joining us on the call today. I'm happy to be speaking to you for the first time since I joined at the end of November. I'm pleased to report record results for the second quarter of FY 2024 with total revenues of $37 million in FY Q2, an increase of 18% compared to the same period of FY 2023, and an increase of 12% over the last quarter. And we expect record revenue for fiscal 2024.

謝謝羅布，也謝謝大家今天加入我們的電話會議。我很高興自 11 月底加入以來第一次與您交談。我很高興地報告 2024 財年第二季創紀錄的業績，第二財年第二季總營收為 3,700 萬美元，比 2023 財年同期成長 18%，比上一季成長 12%。我們預計 2024 財年的營收將創歷史新高。

I'm optimistic about the future of Lantronix, given our wide array of leadership in technology, strong product pipeline, and growing customer engagement. I thought it would be helpful to provide some of my background and why I joined Lantronix, as well as also discuss some of the initiatives that I'm driving in the short term.

鑑於我們在技術方面的廣泛領先地位、強大的產品線以及不斷增長的客戶參與度，我對 Lantronix 的未來感到樂觀。我認為提供一些我的背景以及我加入 Lantronix 的原因以及討論我在短期內推動的一些舉措將會有所幫助。

For more than 25 years, I've navigated the high-tech landscape, driving successes across hardware, software and services. Most recently, I was the Senior Vice President and General Manager of the Enterprise and Mobile Business at Synaptics, the company's largest division.

25 多年來，我一直在高科技領域游刃有餘，推動硬體、軟體和服務領域取得成功。最近，我擔任 Synaptics 的高級副總裁兼企業和行動業務總經理，該公司是該公司最大的部門。

Prior to that, I ran the IoT division. While at Synaptics, I made significant changes streamlining operations, prioritizing customer centricity, and implementing robust go-to-market methodologies that led to significant gross margin and profitability improvements. Across multiple companies, including Conexant, Winbond and Synaptics, I've established a track record of business performance improvement across a range of metrics.

在此之前，我負責物聯網部門。在 Synaptics 期間，我做出了重大改變，簡化了運營，優先考慮以客戶為中心，並實施了穩健的上市方法，從而顯著提高了毛利率和盈利能力。我在多家公司（包括 Conexant、Winbond 和 Synaptics）中建立了一系列指標的業務績效改善記錄。

When the Lantronix opportunity was presented, it was quickly apparent to me that there is much potential to be unlocked. The macro trends of IoT are accelerating and Lantronix, with its unique portfolio of secure, compute and connect solutions is perfectly positioned to capitalize on this momentum from wireless routers, programmable telematics, out-of-band management, edge compute modules and a rapidly growing secure custom solution business. We have the breadth and depth to be the differentiated and trusted vested supplier of IoT solutions, providing unparalleled global reach and coverage.

當 Lantronix 的機會出現時，我很快就意識到有很大的潛力可以釋放。物聯網的宏觀趨勢正在加速發展，而Lantronix 憑藉其獨特的安全、運算和連接解決方案組合，完全能夠利用無線路由器、可編程遠端資訊處理、帶外管理、邊緣運算模組和快速增長的這一勢頭。我們擁有成為差異化且值得信賴的物聯網解決方案既得供應商的廣度和深度，提供無與倫比的全球影響力和覆蓋範圍。

As the new President and CEO, I see myself as a steward of shareholder capital, and I take that responsibility seriously. You'll find me direct, results oriented and focused on building a profitable, growing business.

身為新任總裁兼執行長，我將自己視為股東資本的管理者，並認真看待這項責任。您會發現我是一個直接、以結果為導向、專注於建立盈利、不斷增長的業務的人。

In my first 60 days, I met with many customers, partners and employees, immersing myself in our strengths and opportunities. However, my focus remains on enhancing performance. We've launched multiple initiatives, including the strategic portfolio review, delving deeply into various areas like engineering, operations, and marketing.

在我的前 60 天裡，我會見了許多客戶、合作夥伴和員工，深入了解我們的優勢和機會。然而，我的重點仍然是提高績效。我們啟動了多項舉措，包括策略性投資組合審查，深入研究工程、營運和行銷等各個領域。

In FY Q2, we made our first volume shipment to our smart grid customer, and we have the backlog in place to drive a strong ramp for the remainder of the year. In FY 2025, we expect to transition to a run rate business, receiving purchase orders against our existing design win, and in line with lead times. Having just met with a customer in Europe, I'm happy to say that the relationship has deepened, and I expect this to be a long-term engagement.

在財年第二季度，我們向智慧電網客戶首次批量發貨，並且我們已經積壓了訂單，可以在今年剩餘時間內推動強勁增長。到 2025 財年，我們預計將轉型為運行率業務，根據我們現有的設計訂單接收採購訂單，並與交貨時間保持一致。剛在歐洲與一位客戶會面，我很高興地說我們的關係已經加深，我希望這將是一次長期合作。

Other noteworthy business highlights include the commencement of volume shipments of our FOX3 gateway device to a major telecom carrier. This device enables tracking, data collection, communication and diagnostics in power-critical applications. Initial deployments will be generators supplying cell towers. This adoption is driven by mandates in power backup systems and state energy reporting standards and finally, our out-of-band products continue to perform well with our large enterprise customers resuming purchases.

其他值得注意的業務亮點包括開始向一家主要電信營運商批量發貨我們的 FOX3 網關設備。該裝置可在電力關鍵型應用中實現追蹤、資料收集、通訊和診斷。最初的部署將是為蜂窩塔供電的發電機。這種採用是由電源備份系統和國家能源報告標準的要求所推動的，最後，隨著大型企業客戶恢復購買，我們的帶外產品繼續表現良好。

Before I hand over the call to Jeremy to review the Q2 financials in more detail, I'd like to conclude by saying I'm really excited about the opportunity ahead at Lantronix. Since I've been on board, I've been impressed with our team, the broad portfolio of technology and IP, and our great customers. We have a lot of work ahead of us as we continue down the transformation, but I'm confident we have the building blocks in place to drive Lantronix to become an even stronger company built on differentiated and sustainable franchises that generate profitable growth.

在我將電話轉交給傑里米以更詳細地審查第二季度財務狀況之前，我想最後說我對 Lantronix 未來的機會感到非常興奮。自從我加入以來，我們的團隊、廣泛的技術和智慧財產權組合以及我們優秀的客戶給我留下了深刻的印象。在繼續轉型的過程中，我們還有很多工作要做，但我相信我們已經具備了基礎，可以推動Lantronix 成為一家更強大的公司，建立在差異化和可持續的特許經營基礎上，從而產生盈利增長。

I'll now turn over the call to Jeremy Whitaker, Lantronix's Chief Financial Officer.

我現在將把電話轉給 Lantronix 財務長 Jeremy Whitaker。

Thank you, Saleel. Now I will provide the financial results and some business highlights for our second quarter of fiscal year 2024 before commenting on our financial targets for the remainder of the fiscal year.

謝謝你，薩利爾。現在，我將提供 2024 財年第二季的財務表現和一些業務亮點，然後評論我們本財年剩餘時間的財務目標。

For FQ2 2024, we reported revenue of $37 million, an all-time record for Lantronix, driven by initial production shipments to a smart grid solutions provider. Revenue was up 12% and 18% from the sequential and year-ago periods, respectively. IoT system solutions increased by 21% and 54% from the sequential and year-ago periods, respectively. The increase was primarily driven by initial production shipments for our lead smart grid customer, as previously noted.

2024 年第二季度，我們報告收入為 3,700 萬美元，這是 Lantronix 的歷史記錄，這主要得益於向智慧電網解決方案提供商的初始生產發貨。營收較上一季和去年同期分別成長 12% 和 18%。物聯網系統解決方案較去年同期分別成長 21% 和 54%。如前所述，這一成長主要是由我們的主要智慧電網客戶的初始生產出貨量所推動的。

In addition, the year-over-year increase was impacted by strong sales from out-of-band deployments. For the remainder of the fiscal year, we expect continuing growth from our IoT system solutions, driven by the production ramp of our smart grid customer, continued strength in out-of-band, and telematics' asset tracking solutions to a Tier 1 telecom carrier.

此外，年成長也受到帶外部署強勁銷售的影響。在本財年剩餘時間內，我們預計物聯網系統解決方案將持續成長，這主要得益於我們的智慧電網客戶的產量成長、帶外業務的持續實力以及向一級電信業者提供的遠端訊息處理資產追蹤解決方案。

Sequentially, embedded IoT solutions were up 3%, with meaningful contribution from our lead EV customer design in. As expected, we experienced a year-on-year decline in embedded IoT solutions, as the year-ago period included a large enterprise video customer design win that ended in FQ4 2023. In FQ2 2024, software and service revenues were down sequentially, primarily a function of the completion of two large design services projects that have transitioned into production.

隨後，嵌入式物聯網解決方案成長了 3%，這得益於我們領先的電動車客戶設計的有意義的貢獻。正如預期的那樣，我們經歷了嵌入式物聯網解決方案的同比下降，因為去年同期包括一項於 2023 年第四季度結束的大型企業視訊客戶設計勝利。2024 年第二季度，軟體和服務收入環比下降，主要是由於兩個大型設計服務項目已完成並已投入生產。

GAAP gross margin was 40.6% for FQ2 2024, compared to 42.7% in the prior quarter and 43.8% in the year-ago quarter. Non-GAAP gross margin was 41.6% for FQ2 2024, compared to 44% in the prior quarter and 44.6% in the year-ago quarter. The decline in gross margin was primarily a function of a change in product mix from the prior quarter and increased logistics costs. For FQ3 2024, we expect gross margins in a similar range.

2024 年第二季的 GAAP 毛利率為 40.6%，上一季為 42.7%，去年同期為 43.8%。2024 年第二季的非 GAAP 毛利率為 41.6%，上一季為 44%，去年同期為 44.6%。毛利率下降主要是由於上一季產品結構的變化以及物流成本的增加。對於 2024 年第三季度，我們預計毛利率將處於類似範圍。

GAAP SG&A expenses for FQ2 2024 were $10.2 million, compared with $9.8 million in the year-ago quarter and $9.2 million in the prior quarter. The sequential increase in GAAP SG&A was primarily due to costs related to variable and share-based compensation, partially offset by cost-cutting activities. GAAP R&D expenses for FQ2 2024 were $4.7 million, compared with $5.1 million in the year-ago quarter and the prior quarter. The decline was primarily related to cost-cutting efforts.

2024 年第二季的 GAAP SG&A 費用為 1,020 萬美元，去年同期為 980 萬美元，上一季為 920 萬美元。GAAP SG&A 的環比成長主要是由於與可變薪酬和股份薪酬相關的成本，部分被成本削減活動所抵消。2024 年第二季的 GAAP 研發費用為 470 萬美元，而去年同期和上一季的研發費用為 510 萬美元。下降主要與削減成本的努力有關。

Company wide, we reduced headcount by approximately 7% during FQ2 2024. Over the last several quarters, we have reduced headcount by approximately 10%, as part of our ongoing efforts to capture cost synergies from our previous acquisitions, run the business more efficiently, and improve operating margins.

在全公司範圍內，我們在 2024 年第二季減少了約 7% 的員工人數。在過去的幾個季度中，我們已將員工人數減少了約 10%，這是我們不斷努力從先前的收購中獲取成本協同效應、更有效率地經營業務並提高營業利潤率的一部分。

GAAP net loss was $2.6 million, or $0.07 per share, during FQ2 2024, compared to GAAP net loss of $2.6 million, or $0.07 per share, in the year-ago quarter. Non-GAAP net income was $2.9 million, or $0.08 per share, during FQ2 2024, compared to non-GAAP net income of $1.4 million, or $0.04 per share, in the year-ago quarter.

2024 年第二季的 GAAP 淨虧損為 260 萬美元，即每股 0.07 美元，而去年同期的 GAAP 淨虧損為 260 萬美元，即每股 0.07 美元。2024 年第二季度，非 GAAP 淨利潤為 290 萬美元，即每股 0.08 美元，而去年同期非 GAAP 淨利潤為 140 萬美元，即每股 0.04 美元。

Now turning to the balance sheet, we ended FQ2 2024 with cash and cash equivalents of $22.1 million, an increase of $2.7 million from the prior quarter. Working capital was $51.9 million, an increase of $1.8 million from the prior quarter. Net inventories were $42.8 million as of FQ2 2024, a decrease of $3.0 million from the prior quarter.

現在轉向資產負債表，2024 年第二季結束時，我們的現金和現金等價物為 2,210 萬美元，比上一季增加了 270 萬美元。營運資金為 5,190 萬美元，比上一季增加 180 萬美元。截至 2024 年第二季度，淨庫存為 4,280 萬美元，比上一季減少 300 萬美元。

Now turning to our outlook. For the third quarter of fiscal 2024, we expect revenue in a range of $38 million to $42 million, and non-GAAP EPS in a range of $0.09 to $0.13 per share. For fiscal 2024, we are updating our annual guidance to revenue in a range of $155 million to $165 million, and non-GAAP EPS in a range of $0.35 to $0.45 per share.

現在轉向我們的展望。對於 2024 財年第三季度，我們預計營收將在 3,800 萬美元至 4,200 萬美元之間，非 GAAP 每股收益將在 0.09 美元至 0.13 美元之間。對於 2024 財年，我們將年度營收指引更新為 1.55 億至 1.65 億美元，非 GAAP 每股盈餘指引為 0.35 至 0.45 美元。

The change in our annual guidance is primarily due to lower expected sales for our embedded IoT solutions as a result of two factors: a general slowdown in our broad-based channel business as customers work through their inventories, and an embedded compute design win in video applications that was slated for revenue in the second half of fiscal 2024 that pushed into fiscal 2025.

我們年度指引的變化主要是由於以下兩個因素導致我們的嵌入式物聯網解決方案的預期銷售額下降：隨著客戶處理庫存，我們廣泛的通路業務普遍放緩，以及嵌入式運算設計在視訊領域獲勝預計在 2024 財年下半年實現收入的應用程式將持續到 2025 財年。

We remain optimistic on the business and are on track to deliver a record year on both the top and bottom lines with 18% to 26% organic revenue growth and over 50% growth in non-GAAP earnings.

我們對該業務保持樂觀態度，並預計在今年的營收和利潤上創造創紀錄的業績，有機收入增長 18% 至 26%，非 GAAP 收益將增長超過 50%。

With that, we complete our prepared remarks for today. So I will now turn it over for the operator to conduct our Q&A session.

至此，我們完成了今天準備好的發言。所以我現在將其交給接線員進行我們的問答環節。

(Operator Instructions)

（操作員說明）

Scott Searle, ROTH MKM.

斯科特·塞爾，羅斯 MKM。

Hey, good afternoon. Thanks for taking the questions. Saleel, congratulations and welcome aboard. Maybe just to dive in quickly on the outlook, a little below expectations, it sounds like you've got a design win on the embedded push front. I wonder if you could provide a little more color and clarity in terms of how the Enel ramp is going, how you're thinking about a Phase 2 opportunity with them, and what the channel level of inventory looks like at the current time. And is there any other risk to slippage of a larger customer like you're talking about on the embedded front that's slipped?

嘿，下午好。感謝您提出問題。Saleel，恭喜並歡迎加入。也許只是為了快速了解前景，略低於預期，聽起來您在嵌入式推播方面取得了設計勝利。我想知道您是否可以提供更多資訊和清晰度，包括 Enel 坡道的進展、您如何考慮與他們合作的第二階段機會以及當前庫存的渠道水平。像您所說的嵌入式前端流失的大客戶是否有其他流失風險？

Hey, Scott, thanks for the question. Let me start with the Enel ramp, and then I'll pass it to Jeremy for some of the other questions that you asked. So as I said, I was in Europe meeting our customer, who is a customer of Enel's, if you put it precisely, and that ramp is going well.

嘿，斯科特，謝謝你的提問。讓我從 Enel 坡道開始，然後我將把它轉給 Jeremy，回答您提出的其他一些問題。正如我所說，我正在歐洲會見我們的客戶，如果準確地說，他是 Enel 的客戶，而且坡道進展順利。

Systems are now getting deployed in the field, and we have no showstoppers. And as I said in my prepared remarks, we've got good backlog until the end of June for the fiscal year. And as we transition this business into more of a run rate kind of business, we will be getting in purchase orders for the second half of the year. I expect to get purchase orders for the second half of the year, and we'll ramp with them as we move forward.

系統現在正在現場部署，我們還沒有什麼阻礙。正如我在準備好的發言中所說，到本財年 6 月底為止，我們的積壓情況良好。隨著我們將這項業務轉變為更多的運行率業務，我們將在今年下半年收到採購訂單。我預計下半年會收到採購訂單，隨著我們的前進，我們將增加採購訂單。

Now there is a big build up as they start the deployment, especially in our calendar Q3 -- I mean, our fiscal Q3 and Q4. It'll slow down just a little bit as we go into the second half of the calendar year. Jeremy?

現在，隨著他們開始部署，特別是在我們的日曆第三季度——我的意思是我們的第三財季和第四財季，已經有了很大的積累。當我們進入下半年時，它會稍微放緩。傑里米？

Yes, Scott, you had a question regarding distributor inventories?

是的，斯科特，您對經銷商庫存有疑問嗎？

Yeah, Jeremy, just on the embedded front, it sounds like you're working down some elevated inventory levels. I'm wondering if you could give us an idea about channel inventory weeks or otherwise to kind of help us calibrate. And then on the design win that slipped out, the visibility and the comfort to that, that that is going to, in fact, ramp in September and December.

是的，傑里米，就嵌入式而言，聽起來您正在降低一些較高的庫存水平。我想知道您是否可以向我們提供有關渠道庫存週數的想法或以其他方式幫助我們進行校準。然後，在設計上的勝利，可見度和舒適度，事實上，將在 9 月和 12 月上升。

Yeah, so starting with channel inventories and what we're hearing back from our sales team as it relates to end customers, a lot of that business is going to a broad-based, customer base, a lot of it in industrial IoT connectivity and embedded solutions in that area. And what we heard back from our sales team is that there are customers that are working down inventories, and that was -- and also a general slowdown in the macro that is impacting customers. And for that reason, we brought down our forecast for our embedded solutions for the second half of the fiscal year.

是的，所以從通路庫存以及我們從銷售團隊得到的與最終客戶相關的回饋開始，許多業務都將面向廣泛的客戶群，其中許多是工業物聯網連接和該領域的嵌入式解決方案。我們從銷售團隊得到的回饋是，有些客戶正在減少庫存，而且宏觀經濟普遍放緩也對客戶產生了影響。因此，我們降低了本財年下半年嵌入式解決方案的預測。

As it relates to the push out of our one embedded compute customer in video applications, as far as we understand from talking with the sales team and their interaction with the customer, is that they are on track to go into production in fiscal '25, or I would say have more of a ramp. They're already -- are buying some product from us at this point, but the actual ramp of their production has slipped into '25.

由於這與我們在視訊應用中推出一個嵌入式計算客戶有關，據我們從與銷售團隊的交談以及他們與客戶的互動中了解到，他們預計在 25 財年投入生產，或者我會說有更多的坡道。他們目前已經從我們這裡購買了一些產品，但他們的實際產量已經滑落至 25 年。

Just let me add a little bit more color, Scott. This is a video conferencing system, and they need to go through some certification. You might be familiar with it, like things like things like Teams and stuff. Usually, this takes a bit longer than you anticipate, and that's, I think, what they're going through right now.

讓我再添加一點顏色吧，史考特。這是一個視訊會議系統，他們需要經過一些認證。您可能很熟悉它，例如 Teams 之類的東西。通常，這需要的時間比你預期的要長一些，我認為這就是他們現在正在經歷的事情。

Got you. Very helpful. And if I could, one follow-up, so I know it's still early, so this is perhaps a bit unfair, but I'm wondering if you could give us some insight into how you think about the growth of the business as we get into fiscal '25, not necessarily to give guidance, but are you comfortable that this is a double-digit or a mid-teens kind of growth business, given the product portfolio and the customer interactions that you've had? And as part of that, the gross margin profile that you're thinking about now as you've seen the blended business and product offerings, if you give us some insight on that front.

明白你了。很有幫助。如果可以的話，我知道現在還為時過早，所以這可能有點不公平，但我想知道您是否可以向我們介紹一下您對業務增長的看法進入25 財年，不一定要提供指導，但考慮到您的產品組合和客戶互動，您對這是兩位數或十幾歲左右的成長業務感到滿意嗎？作為其中的一部分，您現在正在考慮的毛利率狀況，因為您已經看到了混合業務和產品供應，如果您給我們一些關於這方面的見解的話。

And if I could throw in as well, edge compute is becoming a bigger and bigger discussion point within the industry. You guys have a lot of components on that front that have led to business over the past several years. I'm wondering how you see that evolving and your position in the marketplace there. Thanks.

如果我也可以加入的話，邊緣運算正在成為業界越來越大的討論點。你們在這方面擁有很多組件，這些組件在過去幾年中帶來了業務。我想知道您如何看待這種發展以及您在市場中的地位。謝謝。

Yeah, so I think it's a little too early for me to get into the specifics of fiscal '25 from percentages and numbers, but we have all the right things in this company, as I said, as I move forward to compute and connect. And our compute business is growing quite a bit, almost it grew 60% from fiscal '23 to fiscal '24, just to be clear, as that we are projecting it to grow. So I expect that to be a growth driver as I look into the future.

是的，所以我認為現在從百分比和數字來了解 25 財年的具體細節還為時過早，但正如我所說，隨著我繼續進行計算和連接，我們公司擁有所有正確的東西。我們的運算業務正在大幅成長，從 23 財年到 24 財年幾乎成長了 60%，需要明確的是，我們預期它會成長。因此，當我展望未來時，我預計這將成為成長動力。

Now going specifically to the edge compute, you're right. We do have some great technology and products. Its early days, but I do see some momentum into it into fiscal '25 for those specific areas. And we are doing, Scott, really a deep dive into the product portfolio starting in March called the Strategic Program Review.

現在專門討論邊緣運算，你是對的。我們確實擁有一些出色的技術和產品。雖然現在還處於早期階段，但我確實看到了 25 財年這些特定領域的一些動力。斯科特，從三月開始，我們正在深入研究產品組合，稱為策略計劃審查。

This is something that I've done in the past, and I'm going to spend probably a better part of a week with our business teams and also the engineering teams trying to go through every product line, understand our strength, our weakness, and look at the ROI and the growth in that area. So I'll be able to give a better view about this in the May call or so.

這是我過去做過的事情，我可能會花一周的大部分時間與我們的業務團隊和工程團隊一起嘗試每個產品線，了解我們的優勢，我們的弱點，並查看該領域的投資回報率和增長。因此，我將能夠在五月左右的電話會議中對此提供更好的看法。

Great. Thanks so much.

偉大的。非常感謝。

Thank you.

謝謝。

Mike Walkley, Canaccord Genuity.

麥克沃克利 (Mike Walkley)，Canaccord Genuity。

Thanks for taking my questions, and I'll try to keep them a little briefer than multipart here. Saleel, just welcome aboard. I look forward to working with you. You mentioned you're in the midst of a strategic portfolio review, but given your short tenure at Lantronix and with your unique industry background, do you see any low-hanging fruit right away in terms of, like, go-to-market or distribution channels that you think can help expand Lantronix's reach?

感謝您提出我的問題，我會盡量讓它們比這裡的多部分簡短。薩利爾，歡迎加入。我期待與您合作。您提到您正在進行策略性投資組合審查，但鑑於您在 Lantronix 的任期較短以及您獨特的行業背景，您是否立即看到了任何容易實現的成果，例如上市或您認為哪些分銷渠道可以幫助擴大Lantronix的覆蓋範圍？

You know what, I've done my first QBR with the team just a few weeks back. I wouldn't go into low-hanging fruit. I mean, there are areas that I can look at that we can go with customers that I might have worked with in the past and as I look at the future. But as I said earlier, I think the Compute and Connect portfolio that we have is really very good as I think about it in the future.

你知道嗎，幾週前我才剛與球隊完成了第一次四分衛。我不會去嘗試容易達成的目標。我的意思是，在我展望未來時，我可以專注於一些領域，我們可以與我過去可能合作過的客戶合作。但正如我之前所說，我認為我們擁有的計算和連接產品組合在我未來的考慮中確實非常好。

And I'll get you more details as I go through the quarter and go through the review, because that's when I'm going to get really my teeth into it to understand what, if any, low-hanging fruits there are and I've done this in the past. It's a great question. What can we do more? Where can we go do more? And I'll just digress and give you one little piece, which I've really gravitated and I understand it's kind of differentiated here, which is the out of band.

當我經歷這個季度並進行審查時，我會向您提供更多詳細信息，因為那時我將真正投入其中，以了解有哪些容易實現的成果（如果有的話），而且我過去曾這樣做過。這是一個很好的問題。我們還能做些什麼？我們可以去哪裡做得更多？我就離題了，給你一小塊，我真的很喜歡它，我知道它在這裡有點不同，這是帶外的。

That out-of-band area, Lantronix is a leader. Not a lot of people in this space. As folks like NVIDIA and stuff roll out these new pods for data centers for AI, they all have this out-of-band port in there. Not being exercised yet, but as I think about that, can that be a low-hanging fruit? Maybe. But again, give me a little bit more time, but I think there are things here that we can really go after.

在帶外領域，Lantronix 是領導者。這個空間裡的人並不多。當 NVIDIA 之類的公司為人工智慧資料中心推出這些新的 Pod 時，他們都擁有這個帶外連接埠。還沒有鍛煉，但我想，這會是一個唾手可得的成果嗎？或許。但再次請給我多一點時間，但我認為這裡有一些我們真正可以追求的東西。

Great. That's helpful. And just to follow up maybe for you and/or Jeremy, as you start to meet with customers and you look at the longer-term opportunity, in the past Lantronix has shared kind of number of large deals in the pipeline. I think maybe the last time it was around 40 deals and $150 million. Any update on that pipeline opportunity?

偉大的。這很有幫助。只是為了跟進您和/或 Jeremy，當您開始與客戶會面並著眼於長期機會時，Lantronix 過去分享了一些正在進行中的大型交易。我想上一次可能是大約 40 筆交易和 1.5 億美元。有關該管道機會的任何更新嗎？

Yeah. So let me talk about the funnel, and this is something I've spent a lot of time when I was at Synaptics. The funnel is a great thing that you really want to understand. So as I said, I went through the QBR with our sales team and marketing team just a few weeks back, and I'm very pleasantly surprised at the size of the funnel.

是的。那麼讓我談談漏斗，這是我在 Synaptics 時花了很多時間的事情。漏斗是一個你真正想要理解的偉大事物。正如我所說，幾週前我與我們的銷售團隊和行銷團隊一起完成了 QBR，我對漏斗的規模感到非常驚訝。

But before I report back on the specific numbers, and I am very familiar there's a number out there, I'm going to go just do a much more of a deeper dive, understand it, and see, you know, where we are with each of the programs in the funnel with respect to the schedules and stuff like that. So just give me a little bit of time, but so far, I'm happy with what I saw with the funnel.

但在我報告具體數字之前，我非常熟悉那裡有一個數字，我將進行更深入的研究，了解它，然後看看我們所處的位置漏斗中的每個程序都涉及時間表和類似的內容。所以請給我一點時間，但到目前為止，我對漏斗中看到的內容感到滿意。

Last question for me, and I'll pass the line. Jeremy, just in terms of the reduced fiscal '24 guidance, can you just help maybe rank order, the different issues between inventory at some of your customers and this project getting pushed, and were there any other impacts to the guidance, or were those really just the two main issues?

最後一個問題給我，我會過線。傑里米（Jeremy），就減少的24 財年指導而言，您能否幫助排序，某些客戶的庫存與該項目之間的不同問題正在推動，以及對指導是否有任何其他影響，或者是那些真的只是兩個主要問題嗎？

I would say those are the two main things that came out of our QBR several weeks ago after we reviewed the forecast with the sales team, both primarily coming out of the embedded business, relatively, I would say, evenly split between kind of a broad-based expected decline from our connectivity business, embedded connectivity business, which is mostly wired products, a little bit of wireless, but not as impacted by that, and then, the compute customer and the video application that I mentioned previously. So those were the primary drivers for the reason to bring down our numbers for the second half of the fiscal year.

我想說的是，幾週前我們與銷售團隊審查了預測後，我們的QBR 得出了兩件主要的事情，兩者主要來自嵌入式業務，相對而言，我想說，在廣泛的業務之間平均分配基於我們的連接業務、嵌入式連接業務（主要是有線產品，有一點無線產品）的預期下降，但不受此影響，然後是我之前提到的計算客戶和視訊應用程式。因此，這些都是導致我們本財年下半年業績下降的主要驅動因素。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Ryan Koontz, Needham & Co.

孔茲 (Ryan Koontz)，李約瑟公司

Thanks for the question. Just thinking about this from a different angle here on the second half outlook change, sounds like the core business, what I think of as the core business, dating back the last couple years, that that's where the big headwind here is on your embedded, and so that's looking like it's going to -- is that stepping down in its run rate materially into your fiscal second half? Jeremy, is that how you think about it?

謝謝你的提問。只是從另一個角度思考下半年前景變化，聽起來像是核心業務，我認為核心業務可以追溯到過去幾年，這就是嵌入式的巨大阻力，因此，看起來您的下半財年運行率會大幅下降嗎？傑里米，你也是這麼想的嗎？

Yeah, I would say it's lower than what we would have originally anticipated. I'm not sure if it's taking a major step down, but many of these are legacy products have been in the market for a period of time, and we do have a general expectation that they're not high growth products even in the forecast.

是的，我想說它比我們最初預期的要低。我不確定它是否會大幅下降，但其中許多都是遺留產品，已經在市場上存在了一段時間，而且我們確實普遍預期，即使在預測中，它們也不是高成長產品。

So they did have a bit of a -- many of these products did have a bit of a resurgence during COVID. And I think this is just on the other side of that COVID resurgence. I think that a lot of companies, including us, saw in some of these kind of legacy products.

所以他們確實有一些——許多這些產品在新冠疫情期間確實有一些復甦。我認為這只是新冠疫情捲土重來的另一面。我認為包括我們在內的許多公司都看到了其中一些遺留產品。

Ryan, let me just add a little bit of more color, right? Saleel here. So as I think about this, as Jeremy clearly pointed out, it's really broad market and, there might be still, more industrial kind of IoT areas, broad market. So a few macro slowdowns as opposed to what was originally when they planned it maybe six, nine months ago. So that's how I would think about it. So it's nothing hugely material, it's just from that dimension.

Ryan，讓我加一點顏色，對嗎？薩利爾在這裡。因此，當我想到這一點時，正如傑里米明確指出的那樣，這確實是一個廣闊的市場，而且可能仍然存在更多工業類型的物聯網領域，廣闊的市場。因此，與六、九個月前他們最初計劃的情況相比，宏觀經濟出現了一些放緩。這就是我的想法。所以它並不是什麼大的物質，它只是來自那個維度。

Okay, helpful. And then any color you can share on the risk in terms of what areas of the business, are these duplicative functions, are these redeployment of resources? Kind of walk us through what sort of adjustments you made on the OpEx side, that'd be helpful.

好的，有幫助。然後，您可以分享哪些業務領域的風險，這些是重複的功能，還是資源的重新部署？請告訴我們您在營運支出方面做了哪些調整，這會很有幫助。

Yeah, some of it was duplicative. We did an acquisition of Uplogix nearly a year ago and then prior to that, a transition networks. And so, some of these were positions that as we've been able to get systems integrated and offices together, we've been able to identify some additional cost synergies to take out of the business. So I think it's just a bit more of where we're at in the wrapping up the integration phase and identifying areas that we had duplicity.

是的，其中一些是重複的。大約一年前，我們收購了 Uplogix，在此之前，我們收購了一家轉型網路公司。因此，其中一些職位是我們能夠將系統整合和辦公室整合在一起的，因此我們能夠確定一些額外的成本協同效應，以從業務中剔除。所以我認為這只是我們在結束整合階段和識別我們存在口是心非的領域中所處的位置。

And is that in terms of the different cost components of R&D, SG&A, and Ops folks that flow into COGS, is it pretty broad based or more focused?

就流入 COGS 的研發、SG&A 和營運人員的不同成本組成部分而言，它的基礎相當廣泛還是更有針對性？

I would say it was pretty broad based. We had done something in sales a couple quarters ago. And so this was probably more Ops, R&D, a little bit of marketing, and G&A.

我想說它的基礎相當廣泛。幾個季度前我們在銷售方面做了一些工作。所以這可能更多的是營運、研發、一點行銷和一般行政費用。

Helpful. That's all I have. Thank you.

有幫助。這就是我的全部。謝謝。

Christian Schwab, Craig-Hallum Capital Group.

克里斯蒂安·施瓦布，克雷格·哈勒姆資本集團。

Hey, guys. I just want to -- Jeremy, confirm something. So the roughly $20 million miss at the midpoint from street expectations around $180 million to $160 million. So half of that came from the distribution channel, excess inventory levels, and the other $10 million came from the large customer push-out. Is that correct?

大家好。我只是想——傑里米，確認一件事。因此，與市場預期 1.8 億至 1.6 億美元的中間值相差約 2,000 萬美元。因此，其中一半來自分銷管道、過剩庫存水平，另外 1000 萬美元來自大量客戶的擠出。那是對的嗎？

Yeah. I would say it's probably a little more heavily weighted to the distribution channel, long-tail, kind of broad-based business.

是的。我想說的是，它可能更注重分銷管道、長尾、基礎廣泛的業務。

Okay. So it's not 50-50. It's maybe two-thirds, one-third?

好的。所以不是50-50。也許是三分之二，三分之一？

That's probably in the ballpark.

那可能是在球場上。

Okay. And then, shipping to Gridspertise, how much revenue do you expect to ship to Gridspertise in fiscal '24, roughly?

好的。然後，運送到 Gridspertise，您預計在 24 財年運送到 Gridspertise 的收入大約是多少？

Those are near -- yeah. So yeah, it's nearly $40 million, right around, maybe slightly a tad below that and we're on track to deliver that this fiscal year and it was a significant contributor to the current quarter, as we'd expected.

那些就在附近——是的。所以，是的，它接近 4000 萬美元，大約是，可能略低於這個數字，我們有望在本財年實現這一目標，正如我們預期的那樣，它為本季度做出了重大貢獻。

Yeah, okay. So Gridspertise is going as planned, and then we're kind of seeing some of the disruptions in the business that, well, many of your peers are seeing.

好的。因此，Gridspertise 正在按計劃進行，然後我們會看到一些業務中斷，很多同行也都看到了。

Correct.

正確的。

So -- right. So as we look beyond the fiscal year, range of assumptions of big pipeline, large deals, inventory correction being over, have we figured out, what we think the sustainable top-line growth rate of the portfolio is? I mean, are we running a 10% company? Are we running a 15% company, a 20% company? What should we be thinking about over a ballpark year timeframe?

所以——對。因此，當我們展望本財年之後，大管道、大交易、庫存修正的一系列假設已經結束時，我們是否已經弄清楚，我們認為投資組合的可持續頂線增長率是多少？我的意思是，我們經營的是一家 10% 的公司嗎？我們經營的是一家 15% 的公司，還是一家 20% 的公司？在大約一年的時間範圍內我們應該考慮什麼？

Yeah. This is Saleel here, Christian. I'm still going through all the numbers as I look at it. I think this is a growing company for sure. It's not a 25% grower. Let me be clear about that, because that's substantially different. I think this is high single-digits, low double-digit kind of grower. And be clear, some of these compute platforms that we're working on could do better than we anticipate.

是的。這是薩利爾，克里斯蒂安。當我查看這些數字時，我仍然在瀏覽所有的數字。我認為這肯定是一家成長中的公司。它不是 25% 的種植者。讓我澄清一下，因為這是本質上不同的。我認為這是高個位數、低兩位數的種植者。需要明確的是，我們正在開發的一些計算平台的表現可能比我們預期的更好。

Just like Jeremy said, one of them got pushed out, but these are, I would think about as a high-protein kind of businesses. So if one hits, it's a big number, so -- but right now, I'm not ready to get into fiscal '25 and moving forward, we're going to kind of give you guys, more near-term kind of guidance as I think about it, but I see this as a growing company for sure, because we've got some of the right stuff with these compute and connect platforms that we have internally.

就像傑里米說的那樣，其中一個被擠出了，但我認為這些是一種高蛋白的企業。因此，如果有一個命中，這是一個很大的數字，所以 - 但現在，我還沒有準備好進入 25 財年，展望未來，我們將為你們提供更近期的指導正如我所想，但我肯定認為這是一家正在成長的公司，因為我們在內部擁有的這些計算和連接平台上擁有一些合適的東西。

Yeah. So on a go-forward basis, we should be -- expect you guys to act like the disproportionate large share of public companies. We're going to go one quarter at a time, and then we'll speak esoterically about the future, but we're not going to start the year and give you guidance like this again. That's probably something we shouldn't be anticipating as we exit this fiscal year. Did I hear you correctly?

是的。因此，從長遠來看，我們應該期望你們像大多數上市公司一樣行事。我們將一次討論一個季度，然後我們會深奧地談論未來，但我們不會在新的一年開始時再次給你們這樣的指導。當我們結束本財年時，這可能是我們不該預料到的事情。我沒聽錯嗎？

Yeah, that's where my head's at right now. I came from -- I'll be very transparent with you. I came from a place where we did that. That's where my head's at. But I'm open to adapting, which I've done in the past. So we'll think about it. But that's where my head's at right now.

是的，這就是我現在的想法。我來自——我會對你非常坦誠。我來自一個我們這樣做的地方。這就是我的頭所在。但我願意適應，我過去也這麼做。所以我們會考慮一下。但這就是我現在的想法。

Okay. Perfect. No other questions. Thanks, guys.

好的。完美的。沒有其他問題。多謝你們。

Okay. Thank you. Thank you for your questions.

好的。謝謝。謝謝您的提問。

This concludes our question-and-answer session. The conference has now also concluded. Thank you for attending today's presentation, and you may now disconnect.

我們的問答環節到此結束。會議現在也結束了。感謝您參加今天的演示，您現在可以斷開連接了。