Masimo Corp (MASI) 2023 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to Masimo's Second Quarter 2023 Earnings Conference Call. The company's press release is available at www.masimo.com. (Operator Instructions) I'm pleased to introduce Eli Kammerman, Masimo's Vice President of Business Development and Investor Relations.

女士們、先生們，下午好，歡迎參加 Masimo 2023 年第二季度收益電話會議。該公司的新聞稿可在 www.masimo.com 上獲取。 （操作員說明） 我很高興向您介紹 Masimo 業務開發和投資者關係副總裁 Eli Kammerman。

Thank you. Hello, everyone. Joining me today are Chairman and CEO, Joe Kiani; and Executive Vice President and Chief Financial Officer, Micah Young. This call will contain forward-looking statements which reflect management's current judgment, including certain of our expectations regarding fiscal year 2023 financial performance. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Risk factors that could cause our actual results to differ materially from our projections and forecasts are discussed in detail in our periodic filings with the SEC. You will find these in the Investor Relations section of our website.

謝謝。大家好。今天與我一起出席的有董事長兼首席執行官 Joe Kiani；執行副總裁兼首席財務官 Micah Young。本次電話會議將包含反映管理層當前判斷的前瞻性陳述，包括我們對 2023 財年財務業績的某些預期。然而，它們面臨風險和不確定性，可能導致實際結果出現重大差異。我們向 SEC 定期提交的文件中詳細討論了可能導致我們的實際結果與我們的預測和預測存在重大差異的風險因素。您可以在我們網站的投資者關係部分找到這些信息。

Also, this call will include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP financial measures. In addition to GAAP results, these non-GAAP financial measures are intended to provide additional information to enable investors to assess the company's operating results in the same way management assesses such results. Management uses non-GAAP measures to budget, evaluate and measure the company's performance and sees these results as an indicator of the company's ongoing business performance. The company believes that these non-GAAP financial measures increase transparency and better reflect the underlying financial performance of the business. Therefore, the financial measures we will be covering today will be primarily on a non-GAAP basis unless noted otherwise.

此外，本次電話會議還將討論某些未按照公認會計原則或公認會計準則計算的財務指標。我們通常將這些稱為非公認會計準則財務指標。除了 GAAP 業績外，這些非 GAAP 財務指標還旨在提供額外信息，使投資者能夠以管理層評估公司經營業績的方式評估公司的經營業績。管理層使用非公認會計準則衡量標準來製定預算、評估和衡量公司的業績，並將這些結果視為公司持續經營業績的指標。該公司認為，這些非公認會計準則財務指標提高了透明度，更好地反映了企業的基本財務業績。因此，除非另有說明，我們今天討論的財務指標將主要基於非公認會計原則（Non-GAAP）。

Further, we will also be referencing pro forma financial measures, which include historical results for Sound United prior to the acquisition date of April 11, 2022. In our presentation today, we will once again be referring to this business as our non-healthcare segment. Reconciliation of these measures to the most directly comparable GAAP financial measures are included within the earnings release and supplementary financial information on our website. Investors should consider all of our statements today, together with our reports filed with the SEC, including our most recent Form 10-K and 10-Q in order to make informed investment decisions. In addition to the earnings release issued today, we have posted a quarterly earnings presentation within the Investor Relations section of our website to supplement the content we will be covering this afternoon.

此外，我們還將參考預計財務指標，其中包括 Sound United 在 2022 年 4 月 11 日收購日期之前的歷史業績。在今天的演示中，我們將再次將該業務稱為我們的非醫療保健部門。這些指標與最直接可比的 GAAP 財務指標的調節包含在我們網站上的收益發布和補充財務信息中。投資者應考慮我們今天的所有聲明，以及我們向 SEC 提交的報告，包括我們最新的 10-K 和 10-Q 表格，以便做出明智的投資決策。除了今天發布的收益報告外，我們還在網站的投資者關係部分發布了季度收益報告，以補充我們今天下午將介紹的內容。

I'll now pass the call to Joe Kiani.

我現在將把電話轉給喬·基亞尼。

Thank you, Eli. Good afternoon, and thank you for joining us for Masimo's Second Quarter 2023 Earnings Call. As we discussed 4 weeks ago, we are disappointed with the level of sales we achieved in the second quarter in both segments of our business and have reduced our revenue and earnings outlook for 2023. Micah will provide a detailed review of the quarter and our updated guidance shortly, but I want to share our view of prevailing trends in our key markets. How Masimo is doing in this environment and how we are responding to them.

謝謝你，伊萊。下午好，感謝您參加 Masimo 的 2023 年第二季度收益電話會議。正如我們 4 週前討論的那樣，我們對第二季度兩個業務部門實現的銷售水平感到失望，並降低了 2023 年的收入和盈利前景。Micah 將提供對該季度的詳細回顧以及我們的最新進展很快就會給出指導，但我想分享我們對主要市場當前趨勢的看法。 Masimo 在這種環境中的表現如何以及我們如何應對它們。

In health care, we believe inpatient volumes this year remain close to flat relative to 2019, while our original 2023 guidance contemplated a step-up in inpatient volumes above those pre-COVID levels. The time we provided our guidance, we also had large new product orders in the pipeline that we hope would help us exceed our guidance. And if patient census growth was lower than expected, these large orders would offset the lower-than-expected growth. Unfortunately, we did not see the inpatient census growth and those large orders have not come in yet. The forecast we are giving you today assumes we will not get most of the large orders and inpatient census growth will not return in the second half of 2023.

在醫療保健領域，我們認為今年的住院人數與 2019 年相比仍接近持平，而我們最初的 2023 年指導預計住院人數將高於新冠疫情前的水平。在我們提供指導時，我們還有大量新產品訂單正在醞釀中，我們希望這些訂單能夠幫助我們超越我們的指導。如果患者普查增長低於預期，這些大訂單將抵消低於預期的增長。不幸的是，我們沒有看到住院人口普查的增長，那些大訂單還沒有到來。我們今天給您的預測假設我們不會獲得大部分大訂單，並且住院人口普查增長不會在 2023 年下半年恢復。

If the rebound in inpatient census growth does not return, then we have reset our baseline this year and will expect our normal growth to return in 2024, given our strong hospital wins over the last 2 years. If inpatient census growth does return, then we could exceed our updated guidance this year. In the meantime, we're taking action to mitigate the impact of the shortfall in revenues. Notably, we will reduce our expenses by over $100 million. We're also refocused our field resources to speed up new customer conversions as customer scheduling and OEM equipment availability improves.

如果住院人口普查增長不再出現反彈，那麼我們將重新設定今年的基準，並預計我們的正常增長將在 2024 年恢復，因為我們在過去兩年中醫院取得了巨大的勝利。如果住院人口普查確實出現增長，那麼我們今年可能會超出最新的指導。與此同時，我們正在採取行動減輕收入短缺的影響。值得注意的是，我們將減少超過 1 億美元的開支。隨著客戶調度和 OEM 設備可用性的改善，我們還重新集中了我們的現場資源，以加快新客戶的轉化。

On the consumer side, we are refocusing the team on Hearables, Wearables, Stork and HEOS, while we continue to support iconic, Marantz, Denon, Bowers & Wilkins and Polk brands and products. This focus should help us grow the business despite the challenges in the consumer audio markets.

在消費者方面，我們正在將團隊的重點重新集中在耳戴式設備、可穿戴設備、Stork 和 HEOS 上，同時繼續支持標誌性的馬蘭士、Denon、Bowers & Wilkins 和 Polk 品牌和產品。儘管消費音頻市場面臨挑戰，這一重點應該有助於我們發展業務。

I'll provide you with updates on some of these new products, but now I will ask Micah to review our second quarter results in more detail and provide an update on our 2023 financial guidance.

我將為您提供其中一些新產品的最新信息，但現在我將要求 Micah 更詳細地審查我們第二季度的業績，並提供 2023 年財務指導的最新信息。

Thank you, Joe, and good afternoon, everyone. For the second quarter, we achieved consolidated revenue of $455 million and non-GAAP earnings per share of $0.62. For our Healthcare segment, second quarter revenues were $281 million, reflecting a 21% decline. Please recall that our second quarter 2022 revenues benefited from the shift of approximately $25 million to $30 million of revenues from the first quarter of 2022 into the second quarter due to supply chain delays in the first quarter of 2022, making the year-over-year comparison more -- even more difficult.

謝謝喬，大家下午好。第二季度，我們實現了 4.55 億美元的綜合收入，非 GAAP 每股收益為 0.62 美元。對於我們的醫療保健部門，第二季度收入為 2.81 億美元，下降 21%。請記住，由於2022 年第一季度供應鏈延遲，我們的2022 年第二季度收入受益於約2500 萬至3000 萬美元的收入從2022 年第一季度轉移到第二季度，這使得我們的2022年第二季度收入同比增長比較更多——甚至更困難。

For the second quarter of 2023, we missed expectations by approximately $66 million. Of this amount, approximately half was related to lower-than-expected sensor orders, roughly 40% of the shortfall is related to large orders that had been expected that have not closed yet. The remainder was attributable to lower to weaker demand for capital equipment from hospitals as well as slower-than-expected installations. We shipped over 64,000 drivers in the quarter, which is below our expectations for shipments of 75,000. We believe that orders for replacement monitors from hospitals to our OEMs have slowed as hospitals facing budget pressures delayed purchases, and our OEM partners managed their order backlog and inventories.

2023 年第二季度，我們的收入比預期低約 6600 萬美元。其中，大約一半與低於預期的傳感器訂單有關，大約 40% 的缺口與預計尚未結束的大訂單有關。其餘的原因是醫院對固定設備的需求下降或疲軟以及安裝速度慢於預期。本季度我們交付了超過 64,000 名驅動程序，低於我們 75,000 名的預期。我們認為，由於面臨預算壓力的醫院推遲了採購，而我們的 OEM 合作夥伴管理了積壓訂單和庫存，醫院向我們的 OEM 廠商更換顯示器的訂單已經放緩。

As of the end of the second quarter, we estimate that our installed base grew by 6% over our installed base at the end of the second quarter of 2022. However, we would like to point you to our record-breaking level of new hospital contracts, as those will bring new sensor cells and are better predictors of our future growth. Coming into this year, we felt good about our Healthcare revenue outlook due to strong contracting with hospitals in the prior year in combination with some large new opportunities within patient monitoring and telehealth. Further, we expect to significantly reduce the equipment installation backlog associated with new hospital customer contracts as supply chain issues abated for Masimo and our OEM partners. We also projected sensor volumes to improve substantially with inpatient volumes rising well above pre-COVID 2019 levels.

截至第二季度末，我們估計我們的安裝基數比 2022 年第二季度末的安裝基數增長了 6%。但是，我們想向您指出我們破紀錄的新醫院數量合同，因為這些合同將帶來新的傳感器單元，並且可以更好地預測我們未來的增長。進入今年，由於前一年與醫院簽訂了強有力的合同，再加上患者監測和遠程醫療領域的一些巨大新機會，我們對醫療保健收入前景感到樂觀。此外，隨著 Masimo 和我們的 OEM 合作夥伴的供應鏈問題減少，我們預計將顯著減少與新醫院客戶合同相關的設備安裝積壓。我們還預計傳感器數量將大幅增加，住院病人數量將遠高於 2019 年新冠疫情之前的水平。

In fact, we saw data showing sequential improvements in inpatient admissions exiting last year, and we expected those trends to continue this year. Based on data we've seen and feedback from customers, we believe that inpatient admissions have remained roughly flat versus 2019 levels, and inpatient surgeries are still down from 2019. To be clear, outpatient surgeries have increased versus 2019 levels. But even though we are in the vast majority of ambulatory surgery centers, where the bulk of outpatient procedures occur they predominantly use reusable sensors today. The procedure shift from hospitals to ASCs therefore, limits our consumable revenue growth, even though those patients are still being serviced with Masimo technology. We do believe there are opportunities to move ASCs to single-patient use sensors over time as we educate them on all the benefits of single patient use sensors.

事實上，我們看到的數據顯示去年住院人數連續改善，我們預計這種趨勢今年將繼續下去。根據我們看到的數據和客戶的反饋，我們認為住院人數與2019 年的水平大致持平，住院手術量仍較2019 年有所下降。需要明確的是，門診手術量較2019 年的水平有所增加。但是，儘管我們在絕大多數門診手術中心進行大部分門診手術，但如今它們主要使用可重複使用的傳感器。因此，手術從醫院轉移到 ASC 限制了我們的耗材收入增長，儘管這些患者仍在接受 Masimo 技術的服務。我們確實相信，隨著時間的推移，我們有機會將 ASC 轉移到單患者使用傳感器，因為我們會向他們介紹單患者使用傳感器的所有好處。

Sensor orders were lower than expected across most of our customers in the second quarter. We have also seen extended lead times for equipment installations, which also affected sensor sales. Therefore, we are re-base lining our Healthcare revenue level for 2023 and still see our long-term growth rate target is achievable, assuming that inpatient volumes grow annually at historical levels in the low single digits going forward.

第二季度大多數客戶的傳感器訂單低於預期。我們還發現設備安裝的交貨時間延長，這也影響了傳感器的銷售。因此，我們正在重新確定 2023 年醫療保健收入水平的基礎，並且假設未來住院人數每年以歷史水平增長，且保持較低的個位數，我們仍然認為我們的長期增長率目標是可以實現的。

For our Non-healthcare segment, second quarter revenues were $174 million, representing a decline of 17% on a pro forma and constant currency basis. This business is grappling with reduced discretionary spending on high-end audio systems and a return of competitors who have previously been hampered by supply chain interruptions now being aggressive with price cuts as they get back into the market. Although we are unable to raise prices to the level we had planned coming into this year, we did not reduce our prices and have put discipline in place to sell based on our features and advantages.

對於我們的非醫療保健部門，第二季度收入為 1.74 億美元，按預計和固定匯率計算下降 17%。該業務正在努力應對高端音頻系統可自由支配支出的減少，以及之前因供應鏈中斷而受阻的競爭對手的回歸，現在在重返市場時積極降價。儘管我們無法將價格提高到今年計劃的水平，但我們沒有降低價格，並根據我們的特點和優勢制定了銷售紀律。

While Non-healthcare was hampered by the change in consumer behavior and competitive pressures, a bright spot in the segment was a Hearables category, including headphones and earbuds, which we scaled up in the second half of 2022 with the introduction of the Bowers & Wilkins PI7, PX7 and PX8 headphone models. The steady growth we were realizing was boosted by the June launch of Denon PerL earbuds with automatic customization of the sound spectrum for personalized listening experience. Hearables revenues represented more than 7% of our non-healthcare revenues this quarter compared to 3% last year.

雖然非醫療保健領域受到消費者行為變化和競爭壓力的阻礙，但該細分市場的一個亮點是耳戴式設備類別，包括耳機和耳塞，我們在2022 年下半年推出了Bowers & Wilkins，擴大了該類別的規模PI7、PX7 和 PX8 耳機型號。我們實現的穩定增長得益於 6 月份推出的 Denon PerL 耳塞，該耳塞可自動定制聲譜以提供個性化聆聽體驗。本季度耳戴式設備收入占我們非醫療保健收入的 7% 以上，而去年這一比例為 3%。

Now moving down the P&L. For the second quarter of 2023, we realized consolidated non-GAAP gross margin of 50%. This includes gross margins of 60% for the Healthcare business and 34% for our non-healthcare business. Gross margins were negatively affected by the deleveraging impact of lower sales against our fixed overhead costs, a difficult pricing environment for consumer audio products as well as an unfavorable segment and product mix. For our consolidated business, our non-GAAP operating profit was $59 million versus $107 million in the prior year due to the revenue shortfall and its deleveraging impact, partially offset by a reduction in crude expenses for performance-based compensation. And our non-GAAP earnings were $0.62 per diluted share which included the increase of $7 million in interest expense over the prior year period related to the debt incurred for the acquisition and share buyback in 2022.

現在將損益表向下移動。 2023 年第二季度，我們實現了 50% 的綜合非 GAAP 毛利率。其中醫療保健業務的毛利率為 60%，非醫療保健業務的毛利率為 34%。毛利率受到以下因素的負面影響：銷售額下降對固定管理成本的去槓桿化影響、消費音頻產品艱難的定價環境以及不利的細分市場和產品組合。對於我們的合併業務，由於收入短缺及其去槓桿化影響，我們的非公認會計原則營業利潤為5900 萬美元，而上一年為1.07 億美元，部分被基於績效的薪酬的原油費用減少所抵消。我們的非公認會計準則每股攤薄收益為 0.62 美元，其中包括與 2022 年收購和股票回購產生的債務相關的利息支出較上年同期增加 700 萬美元。

Again, we are disappointed in our second quarter results, but encouraged by the strength in the underlying fundamentals of our business. We see good potential for a rebound in our Healthcare and consumer businesses, buoyed by Hearables and the soon-to-be-launched consumer health products with our consumer team. We are committed to preserving profitability by implementing a variety of expense control measures that should provide benefits beginning with our third quarter earnings. Our expense control measures include reductions in payroll costs as we slowed down our hiring activities as well as significant reductions in performance compensation and other measures.

我們再次對第二季度的業績感到失望，但對我們業務基本面的強勁勢頭感到鼓舞。在我們的消費者團隊的耳戴式設備和即將推出的消費者健康產品的推動下，我們看到我們的醫療保健和消費者業務反彈的良好潛力。我們致力於通過實施各種費用控制措施來保持盈利能力，這些措施應該從我們第三季度的收益開始帶來好處。我們的費用控制措施包括因放慢招聘活動而減少工資成本，以及大幅減少績效薪酬和其他措施。

Further, we have reduced marketing and promotional expenses within our consumer audio business to help offset the shortfall in those revenues.

此外，我們還減少了消費音頻業務的營銷和促銷費用，以幫助抵消這些收入的缺口。

Now I'd like to provide an update on our 2023 financial guidance. For the full year 2023, we are reducing our guidance range for consolidated revenue to $2.1 billion to $2.2 billion, down from our prior guidance range of $2.415 billion to $2.416 billion. This change includes reductions in expected revenues for our Healthcare segment and our Non-healthcare segment. For our Healthcare segment, we are maintaining the low end of our guidance range at $1.3 billion this year, as stated in our press release last month and introducing a new high-end guidance range of $1.315 billion compared to our original 2023 guidance of $1.450 billion to $1.465 billion. The lower end of our guidance range assumes inpatient admission levels and capital sales trends seen in the second quarter continued through the remainder of the year. For the higher end of our guidance, we are assuming that some of the large orders expected in the first half will be realized in the second half.

現在我想提供 2023 年財務指引的最新信息。對於 2023 年全年，我們將合併收入指導範圍從之前的 24.15 億美元至 24.16 億美元降低至 21 億至 22 億美元。這一變化包括我們的醫療保健部門和非醫療保健部門的預期收入減少。對於我們的醫療保健部門，我們將今年指導範圍的低端維持在13 億美元，正如我們上個月的新聞稿中所述，並引入了13.15 億美元的新高端指導範圍，而我們最初的2023年指導為14.5 億美元至 14.65 億美元。我們指導範圍的下限假設第二季度的住院人數和資本銷售趨勢將持續到今年剩餘時間。對於我們指導的較高端，我們假設上半年預計的一些大訂單將在下半年實現。

Further, we are assuming the pace of equipment installations -- the pace of equipment installations from hospital conversion wins will steadily improve, leading to increased sensor volumes from new customer conversions in the second half. For the Non-healthcare segment, we are maintaining our previously stated revenue guidance from our July pre announcement of $800 million to $850 million, down from our previous guidance range of $965 million to $995 million. Our new guidance range reflects continued weakness in the premium and luxury audio categories for the remainder of the year, partially offset by continued growth in the Hearables category, driven by our new product introductions. We are accordingly lowering our guidance for 2023 non-GAAP operating profit to $296 million to $312 million compared to prior guidance of $400 million to $405 million as we experienced deleveraging of our business, partially offset by a variety of cost control measures.

此外，我們假設設備安裝的速度——醫院轉換贏得的設備安裝速度將穩步提高，從而導致下半年新客戶轉換帶來的傳感器數量增加。對於非醫療保健領域，我們維持之前 7 月份宣布的 8 億美元至 8.5 億美元的收入指引，低於之前 9.65 億美元至 9.95 億美元的指引範圍。我們的新指導範圍反映了今年剩餘時間高端和豪華音頻類別的持續疲軟，部分被我們新產品推出推動的耳戴式設備類別的持續增長所抵消。因此，我們將2023 年非GAAP 營業利潤指引下調至2.96 億至3.12 億美元，而之前的指引為4 億至4.05 億美元，因為我們經歷了業務去槓桿化，但被各種成本控制措施部分抵消。

At the midpoint, we are lowering our operating profit guidance by roughly $98 million, this is comprised of a $168 million impact from lower revenues, a $32 million impact from lower gross margins and a $15 million impact from increased litigation costs. We expect to partially offset these headwinds with $117 million in expense reductions, which is comprised of $46 million from expense control measures and $71 million from performance-based compensation. Lastly, we are now estimating 2023 non-GAAP EPS to be $3.35 to $3.55, down from our prior guidance of $4.70 to $4.80.

中期，我們將營業利潤指導下調約 9800 萬美元，其中包括收入下降帶來的 1.68 億美元影響、毛利率下降帶來的 3200 萬美元影響以及訴訟成本增加帶來的 1500 萬美元影響。我們預計將通過 1.17 億美元的費用削減來部分抵消這些不利因素，其中 4600 萬美元來自費用控制措施，7100 萬美元來自基於績效的薪酬。最後，我們現在預計 2023 年非 GAAP 每股收益為 3.35 美元至 3.55 美元，低於我們之前指導的 4.70 美元至 4.80 美元。

Turning briefly to our third quarter outlook. We are projecting consolidated revenue of $475 million to $525 million, with Healthcare revenue of $305 million to $335 million. And Non-healthcare revenue of $170 million to $190 million. Further, we are projecting non-GAAP operating profit of $50 million to $60 million and non-GAAP EPS of $0.50 to $0.64.

簡要談談我們的第三季度展望。我們預計綜合收入為 4.75 億至 5.25 億美元，其中醫療保健收入為 3.05 億至 3.35 億美元。非醫療保健收入為 1.7 億至 1.9 億美元。此外，我們預計非 GAAP 營業利潤為 5000 萬美元至 6000 萬美元，非 GAAP 每股收益為 0.50 美元至 0.64 美元。

Please reference the earnings presentation on our investor website for further details. In closing, although we are rebalancing our Healthcare revenue this year following the large expansion in our business since 2019, the fundamentals of our Healthcare business remains strong. Notably, new hospital customers continue to switch to Masimo technology faster than ever, increasing our share of the hospital market, and we achieved record contracting in the first half of the year which has contributed to a 12% growth in our unrecognized contract revenue versus the end of the second quarter of 2022.

請參閱我們投資者網站上的收益演示以了解更多詳細信息。最後，儘管自 2019 年以來我們的業務大幅擴張後，我們今年正在重新平衡我們的醫療保健收入，但我們的醫療保健業務的基本面仍然強勁。值得注意的是，新的醫院客戶繼續比以往更快地轉向Masimo 技術，增加了我們在醫院市場的份額，並且我們在上半年實現了創紀錄的合同收入，這使得我們的未確認合同收入較去年同期增長了12%。 2022 年第二季度末。

With that, I'll turn the call back to Joe.

這樣，我會將電話轉回給喬。

Thank you, Micah. Masimo is an innovative, mission-driven, adaptive and resilient company. In addition to the short-term actions to adapt to changing market conditions that we've already discussed, innovation to drive profitable growth from products that improve lives across all our businesses remain a key focus on source of vitality. Our data informs us that our business remains very strong.

謝謝你，米迦。 Masimo 是一家創新、使命驅動、適應性強且有彈性的公司。除了我們已經討論過的適應不斷變化的市場條件的短期行動之外，通過創新來推動改善我們所有業務生活的產品的利潤增長仍然是活力源泉的重點關注點。我們的數據告訴我們，我們的業務仍然非常強勁。

Starting with consumer Health and Wellness, we launched the first new Hearables product based on our adaptive acoustic technology during the second quarter, and it has been very well received in the marketplace. These next-generation earbuds are being marketed as the Denon PerL and PerL Pro to leverage Denon's heritage of world-class acoustics. We've seen nearly 200 positive press reports on PerL since the launch in June. Initial demand from existing retailers for Denon PerL has been very strong and sales for the products are likely to be above our initial forecast formulated earlier in 2023. In addition, we received many inbound requests by new retailers to carry PerL.

從消費者的健康和保健入手，我們在第二季度推出了首款基於自適應聲學技術的新耳戴式產品，並在市場上廣受好評。這些下一代耳塞以 Denon PerL 和 PerL Pro 的名稱進行銷售，以充分利用 Denon 的世界級聲學傳統。自 6 月份推出以來，我們已經看到了近 200 篇關於 PerL 的正面新聞報導。現有零售商對 Denon PerL 的最初需求非常強勁，產品銷量可能會高於我們在 2023 年初制定的初步預測。此外，我們收到了許多新零售商提供 PerL 的入境請求。

We are nearing the launch of our Stork baby monitor with some very large, well-recognized mass market retailers. Stork should be on the shelves soon. The retailers that carry Stork will be displaying the product in prominent locations. In addition, Stork will be available from one of the largest online baby registries. Our expectations for Stork are based upon its superior feature set and value to new parents, as well as the high visibility the product will have in marquee stores and online stores. We are not changing our 2023 sales guidance for our Consumer Health and Wellness products at this time, but we have increased confidence in our ability to reach our target of adding 1 percentage point to health care segment revenues with these products.

我們即將與一些大型、知名大眾市場零售商合作推出 Stork 嬰兒監視器。 Stork應該很快就會上架。銷售 Stork 的零售商將在顯著位置展示該產品。此外，Stork 還可從最大的在線嬰兒登記處之一獲取。我們對 Stork 的期望基於其卓越的功能集和對新父母的價值，以及該產品在大型商店和在線商店中的高知名度。目前，我們不會改變消費者健康和保健產品的 2023 年銷售指導，但我們對實現這些產品的醫療保健部門收入增加 1 個百分點的目標的能力更加有信心。

We want our W1 watch and the Stork baby monitor to have FDA clearance. A 510(k) clearance for Stork will open the door for promotion of the product for Health care. The 510(k) clearance for W1 will allow us to execute on our hospital to home strategy in the U.S., including preoperative and postoperative monitoring at home as well as monitoring patients with chronic diseases such as congestive heart failure and COPD, similar to our current efforts outside the U.S.

我們希望我們的 W1 手錶和 Stork 嬰兒監視器獲得 FDA 批准。 Stork 的 510(k) 許可將為該產品在醫療保健領域的推廣打開大門。第1 週的510(k) 許可將使我們能夠在美國執行從醫院到家庭的策略，包括術前和術後在家監測以及監測患有充血性心力衰竭和慢性阻塞性肺病等慢性疾病的患者，類似於我們目前的情況美國以外的努力

In Q2, we received 2 long awaited and important FDA clearances for Radius VSM, Wearable Bioscience Monitor and Opioid Halo for detecting opioid overdose. We have finally launched these products in the U.S. We are seeing great customer excitement for these new products. Lastly, we recently secured a multimillion dollar contract for our Centroid body position sensor with a large health care system that saves the high potential of Centroid to help reduce the incidence of coccyx pressure ulcers with their patients.

在第二季度，我們收到了兩項期待已久的重要 FDA 批准，分別是 Radius VSM、可穿戴生物科學監測儀和阿片類藥物 Halo，用於檢測阿片類藥物過量。我們終於在美國推出了這些產品。我們看到客戶對這些新產品非常興奮。最後，我們最近獲得了一份價值數百萬美元的Centroid 身體位置傳感器合同，該合同涉及一個大型醫療保健系統，該系統保留了Centroid 的巨大潛力，有助於減少患者尾骨壓力性潰瘍的發生率。

To conclude, while we regret disappointing our investors with a large revenue and earnings message in Q2, we are happy to report strong market share gains in our Healthcare business and customer excitement around PerL, Opioid Halo, Radius VSM and W1. We will soon launch Stork and begin to execute our consumer health business plan.

總而言之，雖然我們對第二季度的大量收入和盈利信息讓投資者感到失望，但我們很高興地報告我們的醫療保健業務市場份額強勁增長，以及PerL、阿片類藥物Halo、Radius VSM 和W1 的客戶興奮。我們將很快推出 Stork 並開始執行我們的消費者健康業務計劃。

Masimo has faced challenges in the past and has always overcome them to evolve into a stronger company. We are confident that we will move past the recent shortfall and achieve great results for patients, clinicians and our shareholders alike as we continue to pursue our mission to improve life.

Masimo 過去曾面臨過挑戰，但始終克服這些挑戰，發展成為一家更強大的公司。我們相信，在我們繼續追求改善生活的使命的過程中，我們將克服最近的短缺，並為患者、臨床醫生和我們的股東取得巨大成果。

With that, we'll open the call to questions. Operator?

至此，我們將開始提問。操作員？

(Operator Instructions) Your first question comes from the line of Matt Taylor with Jefferies.

（操作員說明）您的第一個問題來自 Matt Taylor 和 Jefferies 的線路。

So I wanted to ask kind of a 2-part questions related, but basically wanted to understand from you how transient these issues are? And you referenced in your prepared comments, the ability to get back to kind of your normalized growth rate in Healthcare in' 24. I guess I'm wondering if these comps are easy and some of the sales are getting pushed, do you think 2024 could actually be a stronger than normal year? Or why would it just go back to a normalized growth rate?

所以我想問一些相關的由兩部分組成的問題，但基本上想從您那裡了解這些問題有多短暫？您在準備好的評論中提到，能夠在 24 年恢復到醫療保健領域的正常增長率。我想我想知道這些比較是否容易，並且某些銷售是否會得到推動，您認為 2024 年嗎實際上可能比正常年份更強勁嗎？或者為什麼它會回到正常化的增長率？

Well, 2024 should be a strong year for us, maybe even stronger than normal because of the availability of some of the new products and our push into telehealth, and also the Consumer Health. We see that as a very promising business. On the census side, what we don't know whether the shift to outpatient surgeries at the ambulatory surgery centers are an anomaly due to shortages of nurses and the pressures hospitals have for inpatient care? Or is that what surgeons and patients prefer. If it's an anomaly, that would be another reason next year will be a better growth here than normal for us. But assuming it is not, we believe this is our baseline. And at least, if we get the normal couple of percentage increase in census beginning 2024 compared to 2019 then we should do well.

好吧，2024 年對我們來說應該是強勁的一年，甚至可能比往年更強勁，因為一些新產品的推出以及我們對遠程醫療和消費者健康的推動。我們認為這是一項非常有前途的業務。在人口普查方面，我們不知道由於護士短缺和醫院住院治療的壓力，門診手術轉向門診手術是否是一種異常現象？或者說這就是外科醫生和患者所喜歡的。如果這是一個異常情況，這將是明年我們的增長將比正常情況更好的另一個原因。但假設情況並非如此，我們相信這是我們的基線。至少，如果我們從 2024 年開始人口普查與 2019 年相比出現正常的幾個百分比增長，那麼我們應該做得很好。

And the final point I want to make is we have the bulk of pulse oximetry monitoring into ambulatory surgery centers, but they use reusable sensors and reusable sensors are unfortunate, even despite the best efforts to clean them in between surgeries carrying bacterias that are dangerous to patients. So we plan to make it more concerted efforts in educating the ambulatory surgery centers on the advantages to patients and maybe their businesses by using single-patient-use sensors.

我想說的最後一點是，我們在門診手術中心進行了大量的脈搏血氧飽和度監測，但他們使用可重複使用的傳感器，不幸的是，儘管我們在手術之間盡最大努力清潔它們，但這些傳感器攜帶著對人體有害的細菌。患者。因此，我們計劃更加協調一致地教育門診手術中心，讓他們了解使用單患者使用的傳感器對患者甚至他們的業務的好處。

Okay. Could I ask maybe just one follow-up. Just would want you to stretch ahead a little bit because normally, your business is very stable, and you have this volatility here. Could you help us -- you called out a number of factors that impacted the second quarter and the downward revision on the guidance. Maybe help us understand the bridge, the different components, if you can estimate and how much was caused by Census versus OEM delays and orders? Just to give us a better picture of what's going on underneath the hood?

好的。我可以問一下也許只是一個後續行動嗎？只是希望您能稍微向前推進一點，因為通常情況下，您的業務非常穩定，而這裡存在這種波動性。您能幫助我們嗎？您指出了影響第二季度和指引下調的許多因素。如果您能估計一下人口普查與 OEM 延誤和訂單造成的影響有多大，也許可以幫助我們了解橋樑、不同的組件？只是為了讓我們更好地了解幕後發生的事情？

Sure, sure. We'll try. I'll give you a high level, then maybe Micah can get more granular. We came into 2023 with incredible momentum in all the over the normal new contracts that we had in 2022 and 2021. And we expected as we finish our installations of those, we will push our normal business up by several percentage points. Some of those got delayed, despite our best efforts those installations did not occur. We're not going to even a higher gear calling all of our clinical specialists to support the installation. Given at least at this point, it looks like the hospitals are ready to do them finally and the OEMs can deliver the monitors.

一定一定。我們會嘗試。我會給你一個高水平，然後也許 Micah 可以變得更細化。進入2023 年，我們在2022 年和2021 年簽訂的所有正常新合同中都呈現出令人難以置信的勢頭。我們預計，當我們完成這些安裝時，我們將把我們的正常業務推高幾個百分點。儘管我們盡了最大努力，但其中一些安裝還是被推遲了。我們不會更高級地呼叫我們所有的臨床專家來支持安裝。至少在這一點上，醫院似乎已經準備好進行這些工作，原始設備製造商可以提供顯示器。

So some of the revenue shortfall was because of that. But probably the biggest factor was lower purchase of sensor by our customers that we anticipated. We not only anticipated a return-to-normal growth off of 2019 due to the pent-up surgeries, but we also thought they're not going to order less. They ended up not only returning to the increased demand because of the pent-up procedures because they push those pent-up procedures to outpatient setting but they ordered less from us. Census and inpatient went down. So we could have anticipated that. And I think one of the things that I had hoped because when you're doing these projections, you're always wondering, especially in a dynamic situation would come out of COVID.

因此，部分收入短缺就是因為這個原因。但最大的因素可能是我們的客戶對傳感器的購買量低於我們的預期。我們不僅預計由於被壓抑的手術將在 2019 年恢復正常增長，而且我們還認為他們不會減少訂單。他們最終不僅因為被壓抑的手術而回到了增加的需求，因為他們將這些被壓抑的手術推到了門診，而且他們從我們這裡訂購的數量也減少了。人口普查和住院人數下降。所以我們本來可以預見到這一點。我認為我所希望的事情之一是，因為當你進行這些預測時，你總是想知道，特別是在動態情況下，新冠病毒會出現什麼情況。

You wonder what do you have as a backup plan in case some of your assumptions don't pan out and for our backup plan, we had several large business that we anticipate at least one of them would close. And unfortunately, all of them got delayed, most of the things out of our control. I think one of them is due to fear of shakeup at Masimo because of the proxy war. But nonetheless, all of these factors that we had hoped would either help us flow our numbers out of the water like we'd like to but a minimum save us from maybe bad assumptions that we're making at the beginning did not materialize. And as I said in our prepared remarks, at this point, we're kind of tightening down, expecting the worst that not only Census won't return, but those large orders won't happen this year. So I hope that helps. Micah, do you want to add anything to that?

您想知道您有什麼備用計劃，以防萬一您的某些假設沒有實現，而對於我們的備用計劃，我們有幾家大型企業，我們預計其中至少有一家會關閉。不幸的是，所有這些都被推遲了，大部分事情都超出了我們的控制範圍。我認為其中之一是擔心馬西莫因代理人戰爭而進行改組。但儘管如此，我們所希望的所有這些因素要么能幫助我們像我們希望的那樣將我們的數字從水中流出，但至少可以使我們免受我們一開始所做的可能錯誤的假設的影響，但這些假設並沒有實現。正如我在準備好的發言中所說，在這一點上，我們有點收緊，預計最壞的情況不僅不會出現人口普查，而且今年也不會出現這些大訂單。所以我希望這會有所幫助。 Micah，你想補充什麼嗎？

Yes. I think, Matt, in the prepared remarks, I mentioned the large orders are about 40% of the miss, 50% was due to the lower-than-expected sensor orders and then the remainder is due to capital and installation impact. If you look at the -- your question was, can you break down the lower-than-expected sensor orders, it's very difficult from that standpoint. Just one, we -- number one, we came in the year expecting much higher-than-expected inpatient volumes stepping up well above pre-COVID levels. So we had some assumptions that were incorrect. But also, it's difficult to separate the census from how customers are ordering. We don't have good visibility into the inventory levels, how they're managing those inventory levels and it's hard to break out the impact separately in those buckets.

是的。馬特，我想，在準備好的發言中，我提到大訂單約佔錯過的 40%，50% 是由於傳感器訂單低於預期，其餘的是由於資本和安裝影響。如果你看一下——你的問題是，你能否分解低於預期的傳感器訂單，從這個角度來看，這是非常困難的。第一，我們今年預計住院人數將遠高於預期，遠遠高於新冠疫情前的水平。所以我們有一些不正確的假設。而且，很難將人口普查與顧客的訂購方式分開。我們對庫存水平以及他們如何管理這些庫存水平沒有很好的了解，並且很難單獨分解這些方面的影響。

But Matt, one thing I just want to emphasize because I've been around software companies. Sometimes software companies have great contracting, but their revenues that they can account for that quarter doesn't hit quite right. Obviously, that's not our situation. But what was kind of similar for me is here, we had, again, another record quarter in contracting with new hospitals and lack of any loss to our competitor. So here, we're growing, again, unfortunately, our revenues decline, unfortunately, it was a perfect storm, and I know it's probably an overuse terminology, but it really was 3, 4 factors came together and unfortunately blew out our revenue target, but the business is strong because we are gaining over the competition by much larger slope than usual.

但是馬特，我想強調一件事，因為我一直在軟件公司工作。有時，軟件公司的合同量很大，但他們該季度的收入卻不太理想。顯然，這不是我們的情況。但對我來說有點相似的是，我們在與新醫院簽訂合同方面再次創紀錄的季度，並且沒有給競爭對手造成任何損失。所以在這裡，我們再次增長，不幸的是，我們的收入下降了，不幸的是，這是一場完美的風暴，我知道這可能是一個過度使用的術語，但它確實是3、4 個因素結合在一起，不幸的是超出了我們的收入目標，但業務很強勁，因為我們以比平常大得多的坡度戰勝了競爭對手。

Can I just add one thing, Joe. Matt, we are looking at monitoring closely the order competitor to customers. Over the first 4 weeks, we are seeing that improve. And that gives us more confidence in the new guidance range we have. We'd like to see them improve even further, but give us confidence in that guidance range we just put out today.

我可以補充一件事嗎，喬。馬特，我們正在考慮密切監控客戶的訂單競爭對手。在前 4 週內，我們看到情況有所改善。這讓我們對新的指導範圍更有信心。我們希望看到它們進一步改善，但請讓我們對我們今天剛剛發布的指導範圍充滿信心。

Your next question comes from Marie Thibault with BTIG.

您的下一個問題來自 BTIG 的 Marie Thibault。

I'm going to continue along the guidance path here and see if I could try to understand a little bit more about your margin expectations and also the cadence throughout the year for revenue. It does look like we're expecting a bit of a step up in Q4 for both sales as well as operating margins, and I'm assuming most of the OpEx cuts will be coming in Q4. But if you can help us kind of figure out that cadence a little bit more, that would be helpful.

我將繼續沿著這裡的指導路徑，看看我是否可以嘗試更多地了解您的利潤預期以及全年的收入節奏。看起來我們確實預計第四季度的銷售額和運營利潤率都會有所提高，而且我假設大部分運營支出削減將在第四季度進行。但如果你能幫助我們進一步了解節奏，那將會很有幫助。

Micah, do you want to take that?

米卡，你想接受這個嗎？

Yes. Yes, Marie. So I mentioned -- I walked through kind of how we're thinking about the guidance range and that lowering the guidance, we're assuming the inpatient admissions and capital sales trends kind of seen in the second quarter continue through the year with a modest improvement there.

是的。是的，瑪麗。所以我提到 - 我介紹了我們如何考慮指導範圍以及降低指導，我們假設第二季度看到的住院人數和資本銷售趨勢在全年中會持續適度增長那裡有改善。

And then on the high end of the range, we're assuming that some of the large orders that we expected are going to be realized in the second half. And we've got a large portion of these orders more in Q4, on the mix there. So if you look at the kind of the forecast of Q3 and Q4, the large orders are contributing probably about 1% in that upper end of the range and those are assumed out further in Q4.

然後，在該範圍的高端，我們假設我們預期的一些大訂單將在下半年實現。我們在第四季度獲得了大部分訂單，在那裡進行混合。因此，如果你看一下第三季度和第四季度的預測，就會發現大訂單在該範圍的上限中貢獻的比例可能約為 1%，並且這些訂單將在第四季度進一步假設。

Okay. And I think I was also asking about the expectations for those OpEx cuts, the $100 million in expense reductions and how we should think about over Q3 and Q4?

好的。我想我還問了對運營支出削減的預期、1 億美元的費用削減以及我們應該如何考慮第三季度和第四季度？

Yes. So you'll see some of those come through in the third quarter. We're already taking action on those. And then you'll see a bigger impact as we move into Q4 with all the reductions we're making, also some of the marketing and promotional investments that are tied to the consumer audio business. Some of those are heavier in Q4 as well. So those have been pulled out to offset the lower revenues. So we've given you guidance on the third quarter, and then you have the full year, so you should be able to model right into the fourth -- what we're expecting for the fourth quarter.

是的。所以你會看到其中一些在第三季度實現。我們已經對這些採取行動。然後，隨著我們進入第四季度，我們所做的所有削減以及與消費音頻業務相關的一些營銷和促銷投資都會產生更大的影響。其中一些在第四季度也更重。因此，這些已被撤出，以抵消收入的下降。因此，我們已經為您提供了第三季度的指導，然後您將獲得全年的指導，因此您應該能夠直接對第四季度進行建模——我們對第四季度的預期。

Yes. Yes. Okay. Understood. And those cuts, the expense reductions will stay in place even if revenues rebound better than you're assuming at this point?

是的。是的。好的。明白了。即使收入反彈比您目前假設的更好，這些削減和費用削減也會保持不變？

Not all of them. A big portion of the cuts is we're taking away the bonuses for the executives and many of our people and RSU grants, all that kind of stuff. So if for some reason, we deliver what we had projected at the beginning of the year, those will come back. But assuming we don't, they will be gone.

不是所有的人。削減的很大一部分是我們取消了高管和許多員工的獎金以及 RSU 補助金，所有這些東西。因此，如果出於某種原因，我們實現了年初的預期，那麼這些就會回來。但假設我們不這樣做，他們就會消失。

But -- and to answer that question too, Marie, is we've taken some cuts to really size our expense profile with our revenue profile this year as well. So we are still trying to make the investments we need to grow this business and balance that, but we're making the right -- take right actions to offset the lower revenues.

但是，瑪麗，為了回答這個問題，我們已經採取了一些削減措施，以根據今年的收入狀況真正調整我們的支出狀況。因此，我們仍在努力進行必要的投資來發展這項業務並平衡這一點，但我們正在做出正確的決定——採取正確的行動來抵消收入的下降。

Okay. That's well understood. One last question, if I could. Just sort of high level now that we have the shareholder vote behind us. What can we expect on sort of next steps for corporate strategy, what might be next in terms of expanding the Board to 7 members? Any clarity you can give us on what's next here.

好的。這很好理解。最後一個問題，如果可以的話。現在我們已經得到了股東投票的支持，這只是一種高水平。我們對公司戰略的後續步驟有何期待？在將董事會成員擴大到 7 名方面，下一步可能會發生什麼？您可以就接下來的內容向我們提供任何說明。

Yes. The Chairman of our Nominating Committee is working on that. Unfortunately, due to the loss of our prior Chairman of Nominee Committee, we are kind of starting a little bit from scratch. But yes, we're eager to expand the Board and hopefully get more thoughtful people around the table.

是的。我們的提名委員會主席正在為此努力。不幸的是，由於我們前任提名委員會主席的去世，我們有點從頭開始。但是，是的，我們渴望擴大董事會，並希望能有更多有思想的人參與其中。

All right. Our next question comes from Rick Wise with Stifel.

好的。我們的下一個問題來自 Stifel 的 Rick Wise。

If I could start off, Joe, maybe you could just expand on your Stork comments a little bit, obviously, very positive sounding, exciting product, as we all know. Maybe just talk about the kind of incremental revenue potential, especially as we move into the fourth quarter, what you're assuming? And maybe just remind us if you're thinking about the opportunity even looking ahead to '24 and beyond what Stork could do if it all unfolds as you hope?

如果我可以開始，喬，也許你可以稍微擴展一下你的 Stork 評論，顯然，正如我們所知，聽起來非常積極、令人興奮的產品。也許只是談談增量收入潛力，特別是當我們進入第四季度時，您的假設是什麼？也許只是提醒我們，如果你正在考慮這個機會，甚至展望 24 年後，如果一切如你所希望的那樣展開，Stork 可以做什麼？

Sure. Well, I think there are probably over 10 million births in developed countries annually and many people feel uncomfortable taking their baby home given the risk of SIDS and other issues. Stork not only can measure oxygen saturation and detect a breathing problem, but it's got a thermometer, real-time thermometer that continuously measures the baby's temperature for fever spikes and has an amazing camera technology with lots of cool features that are going to keep being added to it.

當然。嗯，我認為發達國家每年可能有超過 1000 萬的新生兒，考慮到嬰兒猝死綜合症和其他問題的風險，許多人都不願意把孩子帶回家。 Stork 不僅可以測量血氧飽和度並檢測呼吸問題，而且還具有溫度計、實時溫度計，可以連續測量嬰兒發燒峰值的體溫，並具有令人驚嘆的攝像頭技術，以及許多很酷的功能，這些功能將不斷添加到它。

So having shown that at one of the major baby conventions, many retailers and online retailers wanted it. And in fact, some of them have moved mountains to get under shells immediately. Normally, what would take a year, 1.5 years is happening in a matter of 2 to 3 months. One of our major retailers are very proud that we're going to bring on to Target. Target will be carrying Stork. So we are feeling that Stork could become a business that should be a couple of hundred million dollars a year. I know the potential might be $1 billion. But let's see.

因此，在一項主要的嬰兒大會上，許多零售商和在線零售商都想要它。事實上，他們中的一些人已經搬了大山，立即躲到砲彈下。正常情況下，需要一年、1.5年的事情現在只需兩到三個月就能完成。我們的一家主要零售商對我們將其引入 Target 感到非常自豪。目標將攜帶鸛鳥。因此，我們認為 Stork 可能會成為一項年收入數億美元的業務。我知道潛力可能是 10 億美元。但讓我們看看。

Let's see if -- once we get the $200 million, we could now plan for the rest. So the demand has been strong, we're hoping once it gets in the hands of consumers the way PerL has gotten in the hands of consumers and has generated a lot of positive feedback from consumers as well as people who report on it. If those things happen historic, I think it will happen. But a huge element, too, for how we want to market it in the U.S. because some of the things I just said to you, I can't say in the U.S. is getting to FDA clearance. Right now, in the U.S., we can't help parents, this can help the tech sits because of oxygen monitoring. We have to be careful how we raise things. We can't be open about all its capability. But once we get the FDA clearance, we can really go to time and really take the covers off.

讓我們看看，一旦我們拿到了 2 億美元，我們現在就可以計劃剩下的事情了。因此，需求一直很強勁，我們希望一旦它到達消費者手中，就像 PerL 到達消費者手中一樣，並從消費者和報告者那裡產生大量積極的反饋。如果這些事情歷史性地發生，我認為它將會發生。但對於我們如何在美國營銷它也是一個重要因素，因為我剛才對你們說的一些事情，我不能在美國說得到 FDA 的批准。目前，在美國，我們無法幫助父母，這可以幫助氧監測技術發揮作用。我們必須小心如何養育事物。我們無法公開其所有功能。但一旦我們獲得 FDA 的批准，我們就可以真正揭開面紗。

Great. Micah, you talked about implementing expense control starting in the third quarter and you talked about some of the factors. But could you give us a little more in-depth perspective there, quantify a little bit what some of the biggest actions are? And how quickly we're going to see it in the second half, how significantly. And maybe the implications of some of these actions as a set up for '24 and beyond for gross margin and operating margins.

偉大的。 Micah，您談到了從第三季度開始實施費用控制，並談到了一些因素。但您能否給我們提供更深入的視角，量化一些最重大的行動是什麼？我們將在下半年看到它的速度有多快、有多顯著。也許其中一些行動對 24 世紀及以後的毛利率和營業利潤率有何影響。

Yes, Rick. So some things I had mentioned were -- keep in mind, our performance comp was about $71 million out of $117 million for the reductions for this year. Some of that -- that's all tied into this year's performance comp. So as we perform, that was -- some of that would come back if we perform better and improve. And the other expense reduction, the $46 million is true cash expense reduction. So those should carry into next year. And the majority of that is reduction in payroll costs. That's about $28 million, and then there's about $18 million associated with the marketing and promotional spend for the consumer audio business.

是的，瑞克。所以我提到的一些事情是 - 請記住，我們的績效補償約為 7100 萬美元，而今年的削減額為 1.17 億美元。其中一些——這都與今年的表現比較有關。因此，當我們表現出色時，如果我們表現得更好並有所進步，那麼其中一些就會回來。另一項費用減少，4600 萬美元是真正的現金費用減少。所以這些應該延續到明年。其中大部分是工資成本的減少。這大約是 2800 萬美元，還有大約 1800 萬美元與消費音頻業務的營銷和促銷支出相關。

Okay. And just sneaking in one last one, if I could. Just maybe any update on the litigation with Apple. And just any new perspectives or time lines you want to share at this point?

好的。如果可以的話，就偷偷溜進最後一粒。也許只是與蘋果訴訟的任何最新進展。此時您想分享任何新的觀點或時間線嗎？

Yes, of course. We have 3 cases. One is the ITC, which we should hopefully have the soonest results. As you remember, we were supposed to get the commission to give us a decision on July 17. They pushed it out to October 10. We think hopefully that will stick. And assuming they go with the ALJ's 300-plus paged decision, we should get an injunction borrowing President Biden's ability to stop it, which he has 60 days to do so. They did not stop the Lifecore's injunction, so we don't expect those arms.

是的當然。我們有3個案例。其中之一是 ITC，我們希望盡快得到結果。正如您所記得的，我們本應讓委員會在 7 月 17 日做出決定。他們將其推遲到 10 月 10 日。我們希望這一情況能夠持續下去。假設他們同意行政法官 300 多頁的決定，我們應該獲得一項禁令，借用拜登總統的能力來阻止它，他有 60 天的時間來這樣做。他們並沒有阻止生命核心的禁令，所以我們不指望會有那些武器。

On the trade secret and patent case in California, as you remember, the trade secret case, we unfortunately had a hung jury, and we just met with a judge. It looks like we will not go to trial until next year on that again, hopefully February, March time frame. And then on the Delaware case that Apple brought against us, they brought a patent against us, I think, 10 patents. And then we responded with patent case against them, I think, 10 patents, but we also had an antitrust complaint and an unfair competition, false advertising claim. And that is going a lot faster than we expected. The judge has been incredible and has been really holding all of our speed to the fire. And that might go to trial next year, which will be unheard of. So that's where we're at.

在加利福尼亞州的商業秘密和專利案件中，正如您所記得的那樣，在商業秘密案件中，不幸的是，我們的陪審團懸而未決，我們剛剛會見了一位法官。看起來我們要到明年才會再次進行審判，希望是二月、三月的時間框架。然後，在蘋果公司對我們提起的特拉華州案件中，他們對我們提起了一項專利，我認為是 10 項專利。然後我們對他們提起專利訴訟，我認為是 10 項專利，但我們也有反壟斷投訴和不公平競爭、虛假廣告索賠。這比我們預期的要快得多。裁判真是太不可思議了，他真的讓我們全力以赴。這可能會在明年進行審判，這將是聞所未聞的。這就是我們現在的情況。

Okay. Our next question comes from Jayson Bedford with Raymond James.

好的。我們的下一個問題來自傑森·貝德福德和雷蒙德·詹姆斯。

Maybe just a couple. Just getting back to the lower sensor sales, the $30-plus million in the quarter. Micah, you kind of alluded to it in answering your question, but I didn't hear much in the prepared remarks around inventory dynamics. Can you just talk through what you've learned maybe in the last month around inventory levels at the customer level and you implemented any better processes here to gauge inventory levels going forward?

也許只是一對。回到傳感器銷售額較低的情況，該季度銷售額為 30 多萬美元。 Micah，您在回答問題時提到了這一點，但我在準備好的有關庫存動態的評論中沒有聽到太多內容。您能否談談您在上個月學到的有關客戶級別庫存水平的知識以及您在此實施的任何更好的流程來衡量未來的庫存水平？

Yes. So Jayson, what I mentioned -- a little bit earlier, I touched on it, but it's difficult to identify inventory levels with our customers just because we don't have that visibility. But what we are watching very closely is customer order patterns. The first 4 weeks, so call it, July, those order patterns have improved substantially from Q2. So they're heading in the right direction. They're not where we want to be completely yet, but they do support that new guidance range that we just put out today. So that's how we're monitoring it closely. We're continuing to put some -- try to get more and more information as we can. But that's -- the focus right now is just to continue to monitor those new order patterns.

是的。傑森，我剛才提到的，我剛才提到過，但很難與我們的客戶確定庫存水平，因為我們沒有這種可見性。但我們正在密切關注的是客戶訂單模式。前 4 週，也就是 7 月份，這些訂單模式比第二季度有了大幅改善。所以他們正朝著正確的方向前進。它們還不是我們想要的完全目標，但它們確實支持我們今天剛剛推出的新指導範圍。這就是我們密切監控的方式。我們將繼續提供一些信息，盡力獲取越來越多的信息。但現在的重點是繼續監控這些新的訂單模式。

Okay. Maybe just on a semi-related topic price. I think last month, you mentioned discounting. Can you just talk about why the discounting started and then kind of where we are from a pricing standpoint?

好的。也許只是半相關主題的價格。我想上個月你提到了折扣。您能否談談為什麼開始打折，然後從定價的角度來看我們處於什麼位置？

Well, discounting wide startup that we're still trying to understand that. But what I can tell you is deep we're not discounting at the time of contract, we were discounting post contract. And we -- once I became aware of it, I stopped it and the reason I stopped it is because the censor revenue is part of razorblade. It's part of the razor-razorblade strategy. And while we -- I have given a lot of freedom to the sales force to discount our capital, even give away our capital, I never intended them to reduce our sensor pricing, so we need to be disciplined on that. So I've asked it to be stopped. I've asked from hereon, if anyone ever want to discount our sensors, they have to get my approval. So that this hopefully won't ever happen again.

好吧，不考慮我們仍在努力了解這一點的廣泛啟動。但我可以告訴你的是，我們不是在簽訂合同時打折，而是在合同後打折。我們——一旦我意識到這一點，我就停止了它，我停止它的原因是因為審查收入是剃刀刀片的一部分。這是剃刀-剃刀刀片策略的一部分。雖然我們——我給了銷售人員很大的自由來折扣我們的資本，甚至放棄我們的資本，但我從來沒有打算讓他們降低我們的傳感器價格，所以我們需要在這方面遵守紀律。所以我要求停止它。我從這裡開始要求，如果有人想打折我們的傳感器，他們必須得到我的批准。所以希望這樣的事情不會再發生。

But bottom line, it wasn't being done for a long time. We've done for a short time. They thought they were free to do it because they had been allowed to discount capital and sometimes cables and so anyway, that's what happened. And what's I think positive is that going forward, it should help our gross margins too because we're not offering these discounts anymore.

但歸根結底，這件事已經很長時間沒有完成了。我們已經做了很短一段時間了。他們認為他們可以自由地這樣做，因為他們被允許折扣資本，有時甚至折扣電纜，所以無論如何，事情就是這樣發生的。我認為積極的是，展望未來，它也應該有助於我們的毛利率，因為我們不再提供這些折扣。

Okay. Okay. That's helpful. Maybe just last one here. Has your view of the market opportunity changed in any way here, meaning upon reflection after 2Q, is there a sense to, hey, maybe the market is more penetrated than we thought? Or does the opportunity still exist that you outlined back in December?

好的。好的。這很有幫助。也許只是這裡的最後一個。您對市場機會的看法是否發生了任何變化，也就是說，經過第二季度的反思，是否有一種感覺，嘿，也許市場比我們想像的更深入？或者您在 12 月份概述的機會是否仍然存在？

No, no. Like I said, it's really in the press. I think I put under is a tale of 2 realities. One reality is that our market penetration is increasing, our market share is increasing. I think there's a slide in your -- the power point presentation that was put out in time for their earnings call that shows that but unfortunately, the revenues decreased.

不，不。就像我說的，這確實在媒體上。我想我講述的是兩個現實的故事。一個現實是我們的市場滲透率正在增加，我們的市場份額正在增加。我認為您在財報電話會議上及時發布的幻燈片演示文稿顯示，但不幸的是，收入下降了。

I'll tell you, if there's one thing it may we believe is we have the right strategy and getting into telehealth, telemonitoring and Consumer Health because as unbelievably reliable as our set sensor business has been over the past couple of decades, this quarter, it wasn't. And patterns change, they went from inpatient to outpatient. And I know when we first put out our 3 announcement, people kind of disputed of that. I know a competitor disputed that. But it's showing that we were right, outpatient census did increase, and we said that, but inpatient reduced, went down, decreased and that hurts.

我會告訴你，如果我們相信一件事，那就是我們擁有正確的戰略並進入遠程醫療、遠程監控和消費者健康領域，因為我們的傳感器業務在過去幾十年中令人難以置信地可靠，本季度，事實並非如此。而且模式發生了變化，他們從住院病人變成了門診病人。我知道當我們第一次發布第三個公告時，人們對此有所爭議。我知道一位競爭對手對此提出了異議。但這表明我們是對的，門診人口普查確實增加了，我們說過，但住院病人減少了，下降了，減少了，這很痛苦。

So no, I think what we thought about the overall market and the overall future of Masimo is intact. I apologize. I regret that we missed our numbers in Q2, but it is not indicative of the health of our business.

所以不，我認為我們對整個市場和 Masimo 整體未來的看法是完好無損的。我道歉。我很遺憾我們錯過了第二季度的數據，但這並不表明我們業務的健康狀況。

Okay. Your next question comes from Mike Matson with Needham & Company.

好的。您的下一個問題來自 Needham & Company 的 Mike Matson。

So I just wanted to go back to the kind of quarterly sequencing implied by the guidance. I think if you take kind of the midpoint of the third quarter EPS range and the midpoint of the annual EPS range, it's implying something like $1.39 of EPS in the fourth quarter, which is a pretty big sequential step-up as well as it's up year-over-year versus last year. So the third quarter number seems believable, but that seems like a pretty tough number of reach, I guess. So I don't know maybe you can explain like how you're going to kind of make that ramp?

所以我只想回到指南所暗示的季度排序。我認為，如果你採用第三季度每股收益範圍的中點和年度每股收益範圍的中點，這意味著第四季度的每股收益約為1.39 美元，這是一個相當大的連續上升，而且還在上升與去年相比。因此，第三季度的數字似乎是可信的，但我想，這似乎是一個相當艱難的數字。所以我不知道你能否解釋一下你將如何製作那個坡道？

Yes. So Mike, if you look at the cost actions we're taking, it's going to be more of a step up in the fourth quarter. Plus we're expecting stronger revenues in Q4 based on how we planned out the year and re-baseline our forecast. So the combination of the strength in revenues that we expect in Q4, some large -- some of these large orders coming in, in that guidance range as well as the expense reductions taking hold and having a full quarter of expense reductions is how we expect to get to that guidance.

是的。邁克，如果你看看我們正在採取的成本行動，你會發現第四季度的成本將會有更大的提高。此外，根據我們對今年的計劃和重新設定的預測基準，我們預計第四季度的收入將更加強勁。因此，我們預計第四季度的收入強勁，其中一些大訂單將在該指導範圍內到來，再加上費用削減的落實以及整個季度的費用削減，這就是我們的預期以獲得該指導。

Okay. All right. And then just wondering if there's any kind of second thoughts on the Sound United deal here just given what's happened. Look, I understand the consumer health strategy but the way you're talking about Stork, for example, it sounds like there's a tremendous amount of retail interest there. I'm not really convinced that you need billion-dollar speaker company to get that product in the some of the shelves at these retailers. For example, your competitor, (inaudible) sold their products. They don't own a billion-dollar speaker company. So just wondering if you'd consider maybe exiting that business and focusing back on the Healthcare business?

好的。好的。然後我想知道考慮到所發生的事情，是否有人對 Sound United 的交易有任何重新考慮。聽著，我了解消費者健康策略，但從你談論 Stork 的方式來看，聽起來那裡有巨大的零售興趣。我不太相信你需要價值數十億美元的揚聲器公司才能將這種產品擺到這些零售商的貨架上。例如，您的競爭對手（聽不清）銷售了他們的產品。他們沒有擁有價值十億美元的揚聲器公司。所以想知道您是否會考慮退出該業務並重新專注於醫療保健業務？

Well, reasonable minds disagree, and Masimo has a lot of parents and I understand people have different views on things. When we bought Sound United, we said, "Hey, give us 3 years. If we haven't proven this thing is going to really do what we say it is, we'll get out of it." Not only that thought hasn't changed, everything today tells us it was the right move. And secondly, we have a thriving healthcare business that I did not want to take our eyes off of, I wanted to make sure the current management team runs that optimally.

好吧，理智的人會不同意，馬西莫有很多父母，我理解人們對事物有不同的看法。當我們收購 Sound United 時，我們說，“嘿，給我們 3 年時間。如果我們還沒有證明這件事真的能做到我們所說的那樣，我們就會退出。”不僅這個想法沒有改變，今天的一切都告訴我們這是正確的舉動。其次，我們有一個蓬勃發展的醫療保健業務，我不想把目光從這個業務上移開，我想確保當前的管理團隊以最佳方式運作。

So we needed a new team to optimally run the consumer health. And the Sound United team has done a great job, all these contracts we have now for Stork, for PerL, that's all done by them. Again, well, maybe my team could have done that, but it may have distracted them from the Healthcare business. And lastly, the fact that we got in and we focused Sound United on the Hearables, which is about a $50 million to $85 million business, depending how far you go into it, whether you're just doing streaming music and voice call or you want to improve hearing for people that have lost hearing at a low level to moderate level. That's a huge opportunity. And already, it's working.

因此，我們需要一個新團隊來優化消費者健康管理。 Sound United 團隊做得很好，我們現在為 Stork、為 PerL 簽訂的所有合同都是他們完成的。再說一遍，也許我的團隊可以做到這一點，但這可能會分散他們對醫療保健業務的注意力。最後，事實上，我們進入後，我們將Sound United 的重點放在了可聽設備上，這是一項價值約5000 萬至8500 萬美元的業務，具體取決於您進入的程度，無論您只是做流媒體音樂和語音通話還是您希望改善低度至中度聽力損失的人的聽力。這是一個巨大的機會。現在，它正在發揮作用。

So no, I'm sorry, you still feel like I should get rid of it, but we don't, we still think it was the right decision, and we're going to do our best to prove it. But we're not going to be foolish about, if we're wrong, we'll back out, but we're not done yet.

所以不，我很抱歉，你仍然覺得我應該擺脫它，但我們不這樣做，我們仍然認為這是正確的決定，我們將盡最大努力來證明這一點。但我們不會愚蠢地認為，如果我們錯了，我們就會退出，但我們還沒有完成。

Thank you. We have time for one more question.

謝謝。我們還有時間再問一個問題。

All right. Our final question for today comes from Vik Chopra with Wells Fargo.

好的。我們今天的最後一個問題來自富國銀行的 Vik Chopra。

Just 2 questions for me. So I guess on W1 and Stork, can you talk about the regulatory pathway for approval? And then I had a follow-up, please.

只需問我 2 個問題。所以我想關於W1和Stork，您能談談審批的監管途徑嗎？然後我有一個後續行動，請。

Yes, of course. The W1 is pulse-ox ECG and it's going through the normal channels that these products go through. Stork is a pulse-ox based product that's going through the normal channels with the FDA that look at oxygen desaturation, Opioid Halo or pulse oximetry and the healthcare side. We believe they are all under the 510(k) procedure, and we believe we're having great communication with FDA about it and hopefully, in the next 60 to 90 days, both of them will get clear. But we've been -- we've worked with the FDA successfully over now 3 decades and sometimes some products get cleared in 30 days and some products get cleared in a decade. So let's hope that those 2 are not going in that direction.

是的當然。 W1 是脈衝氧心電圖，它正在通過這些產品所經過的正常渠道。 Stork 是一種基於脈搏氧的產品，正在通過 FDA 的正常渠道審查氧飽和度、阿片類藥物 Halo 或脈搏血氧測定法和醫療保健方面。我們相信它們都符合 510(k) 程序，並且我們相信我們正在與 FDA 就此進行良好的溝通，希望在接下來的 60 到 90 天內，兩者都會得到澄清。但我們已經與 FDA 成功合作了 30 年，有時有些產品在 30 天內獲得批准，有些產品在 10 年內獲得批准。所以我們希望這兩個人不會朝那個方向發展。

And then on my follow-up question, I heard your comments earlier about expanding the board from 5 to 7. But can you put a finer point around that sort of when do you expect to get the 2 -- the 2 additional board members in? Is it by end of the year or potentially earlier or later?

然後，關於我的後續問題，我早些時候聽到了您關於將董事會成員從5 人擴大到7 人的評論。但是，您能否更詳細地說明一下您預計何時獲得2 名額外的2 名董事會成員？ ？是年底還是可能更早或更晚？

Sure. Sure. We're going to try to get them in as soon as possible.

當然。當然。我們將盡力盡快讓他們加入。

Thank you so much, everyone. Again, I hope from here on, we have the best quarter to report and that fundamentals of the business match the revenues from the business. We appreciate your time, and we'll talk to you hopefully in the quarter. Thank you.

謝謝大家！謝謝。再次，我希望從現在開始，我們有最好的季度報告，並且業務基本面與業務收入相匹配。感謝您抽出時間，我們希望在本季度與您交談。謝謝。

Thank you. Ladies and gentlemen, that concludes today's call. Appreciate you all joining. You may now disconnect.

謝謝。女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連接。