Everspin Technologies Inc (MRAM) 2024 Q2 法說會逐字稿

Good afternoon, and welcome to the conference call to discuss Everspin Technologies Second Quarter 2024 financial results. At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be provided for the question and answer session. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Cassidy Fuller, Investor Relations for Everspin.

下午好，歡迎參加電話會議，討論 Everspin Technologies 2024 年第二季財務業績。此時，所有參與者都處於只聽模式。今天的電話會議結束時，將為問答環節提供說明。提醒一下，本次電話會議正在錄音中。我現在想將會議交給 Everspin 投資者關係部的 Cassidy Fuller。

Thank you, operator, and good afternoon, everyone. Everspin released results for the second quarter 2024 ended June 30th, 2024 for this afternoon, after the market close, our Investor Relations for Everspin. And with me on today's call are Sanjeev Aggarwal, President and Chief Executive Officer and Matt Tenorio, Interim Chief Financial Officer.

謝謝接線員，大家下午好。今天下午收盤後，Everspin 發布了截至 2024 年 6 月 30 日的 2024 年第二季業績，我們的 Everspin 投資者關係。與我一起參加今天電話會議的有總裁兼首席執行官桑吉夫·阿加瓦爾 (Sanjeev Aggarwal) 和臨時首席財務官馬特·特諾裡奧 (Matt Tenorio)。

Before we begin the call, I'd like to remind you that this conference call contains forward-looking statements regarding future events, including, but not limited to the Company's expectations for Everspin's future business financial performance and goals. And we're in industry adoption of MRAM technology successfully bringing to market and manufacturing products in Everspin's design pipeline and executing on it. These forward-looking statements are based on estimates, judgments, current trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statement. We would encourage you to review the company's SEC filings, including the annual report Form 10 K and other SEC filings made from time to time in which the company may discuss risk factors associated with it. All forward-looking statements are made as of the date of this call. Except as required by law, the Company undertakes no obligation to update or alter any forward-looking statements made whether as a result of new information, future events or other.

在我們開始電話會議之前，我想提醒您，本次電話會議包含有關未來事件的前瞻性陳述，包括但不限於本公司對 Everspin 未來業務財務表現和目標的預期。我們正在業界採用 MRAM 技術，成功地將 MRAM 技術推向市場，並在 Everspin 的設計流程中製造產品並執行。這些前瞻性陳述是基於估計、判斷、當前趨勢和市場狀況，涉及可能導致實際結果與前瞻性陳述中包含的結果有重大差異的風險和不確定性。我們鼓勵您查看公司向 SEC 提交的文件，包括年度報告 Form 10 K 和公司不時提交的其他 SEC 文件，在這些文件中公司可能會討論與其相關的風險因素。所有前瞻性陳述均自本次電話會議日起作出。除法律要求外，本公司不承擔因新資訊、未來事件或其他原因而更新或更改任何前瞻性聲明的義務。

The financial results discussed today reflect the Company's preliminary estimates and are based on the information available as the date hereof and are subject to further review by Everspin and its external auditor. The Company's actual results may differ materially from these estimates as a result of the completion of financial closing procedures and will adjustments and other developments arising between now and at the end, the time the financial results for the period. Additionally, the company's press release and statements made during this conference call will include discussion. Discussions of certain measures and financial information in GAAP and non-GAAP included in the company's press release are definitions and reconciliation of GAAP net income to adjusted EBITDA, which provide additional detail. A copy of the press release is posted on the Investor Relations section of Everspin's website at www.everspin.com.

今天討論的財務表現反映了公司的初步估計，並基於截至本文日期的可用信息，並有待 Everspin 及其外部審計師的進一步審查。由於財務結算程序的完成以及從現在到本期財務業績結束時發生的調整和其他發展，公司的實際業績可能與這些估計有重大差異。此外，該公司在本次電話會議期間發布的新聞稿和聲明將包括討論。公司新聞稿中對 GAAP 和非 GAAP 某些指標和財務資訊的討論是 GAAP 淨利潤與調整後 EBITDA 的定義和調節，提供了更多細節。新聞稿的副本發佈在 Everspin 網站 www.everspin.com 的投資者關係部分。

And now I'd like to turn the call over to Everspin's President and CEO, Sanjeev Aggarwal. Sanjeev, please go ahead.

現在我想將電話轉給 Everspin 總裁兼執行長 Sanjeev Aggarwal。桑吉夫，請繼續。

Thank you, Cassidy, and thanks, everyone, for joining us on the call today.

謝謝你，卡西迪，也謝謝大家今天加入我們的電話會議。

Before I discuss our results, I want to make a moment to welcome Matt and audio back to Alison as our interim CFO, Matt previously served as the Company's Corporate Controller and as interim Chief Financial Officer in 2020 and he rejoined our spin in June 2024 has an independent consultant to support finance operations.

在討論我們的業績之前，我想花點時間歡迎Matt 和音頻回到Alison 擔任我們的臨時首席財務官，Matt 此前曾擔任公司的公司財務總監和2020 年的臨時首席財務官，他於2024 年6月重新加入我們的團隊。

On behalf of the Board and management team, I also want to thank Anuj for his hard work and dedication over the past three years, and we wish him well in his next endeavor.

我還要代表董事會和管理團隊感謝 Anuj 在過去三年中的辛勤工作和奉獻精神，並祝他在接下來的工作中一切順利。

Turning to our second quarter results, we delivered revenue and net loss within our guidance range with revenue of $10.6 million and a net loss of $0.12 per basic share. We ended the quarter with a strong balance sheet, including cash of $36.8 million during the quarter, Everspin had advancements in a number of areas that showcase our key corporate capabilities. I will discuss a few of these here that span our processed product portfolio design and technology development services and foundry services, starting with our Toggle MRAM solution as expected, during the quarter, we continued to experience weakness partly due to inventory consumption at customers and partly due to unfavorable currency exchange rates in the Asia Pacific markets, which have resulted in a slow recovery for our Toggle MRAM products.

談到第二季業績，我們的營收和淨虧損均在我們的指導範圍內，營收為 1,060 萬美元，每股基本股淨虧損為 0.12 美元。我們在本季結束時擁有強勁的資產負債表，其中包括本季 3,680 萬美元的現金，Everspin 在許多領域取得了進步，展示了我們的關鍵企業能力。我將在這裡討論其中的一些內容，涵蓋我們的加工產品組合設計和技術開發服務以及代工服務，從我們預期的Toggle MRAM 解決方案開始，在本季度，我們繼續經歷疲軟，部分原因是客戶的庫存消耗，部分原因是客戶庫存消耗。

Looking ahead, we see positive signs of inventory consumption at our customers, giving us increased visibility into demand for the rest of the year. We expect a modest ramp in our travel solutions worldwide in the second half of 2024.

展望未來，我們看到客戶庫存消耗的積極跡象，使我們能夠更好地了解今年剩餘時間的需求。我們預計 2024 年下半年我們的全球旅行解決方案將出現小幅成長。

During the quarter, we experienced strong traction with our 4 meg to 128 megabit MRAM PERSYST family globally, especially in the European and the Asia Pacific regions where we saw highest design activity and production volume respectively. As a reminder, this Family was brought to production last year. We expect to begin delivering on these design wins later this year or in early 2025. And based on customer discussions, we expect a few design wins to go into production later this year. With revenue ramping in 2025. Earlier in the second quarter, we announced that IBM chose our persist one gigabit STT-MRAM solution for use and its flash core module for for data center applications. This is the fourth generation of IBM's FCM that has featured Everspin's STT-MRAM technology with a DDR4 like interface. Our process solution delivers 2.7 gigabytes per second of both read and write bandwidth, coupled with bond volatility. Since the announcement, we have seen continued growth and orders from IBM and expect to see sustained growth in this product over the coming quarters.

本季度，我們的 4 兆至 128 兆位元 MRAM PERSYST 系列在全球範圍內受到了強勁的關注，特別是在歐洲和亞太地區，我們分別看到了最高的設計活動和產量。提醒一下，這個家庭是去年投入生產的。我們預計將在今年稍後或 2025 年初開始交付這些設計成果。根據客戶的討論，我們預計一些設計將在今年稍後投入生產。2025 年營收將大幅成長。在第二季度早些時候，我們宣布 IBM 選擇使用我們的持久 1 千兆位元 STT-MRAM 解決方案及其快閃核心模組用於資料中心應用程式。這是第四代 IBM FCM，採用 Everspin 的 STT-MRAM 技術和類似 DDR4 的介面。我們的製程解決方案可提供每秒 2.7 GB 的讀寫頻寬，並具有債券波動性。自從該公告發布以來，我們看到 IBM 的訂單持續成長，並預計該產品在未來幾季將持續成長。

Turning now to our radiation hard programs on our previous earnings calls, we noted that we were engaged in two rad-hard programs utilizing our STT-MRAM technology. The first program related to an ad hoc 64 megabit STT-MRAM project remains ongoing. The second program is aimed at building a strategic rad-hard FPGA. As recently announced, we executed a contract to continue our collaboration on this program with QuickLogic and Honeywell under the contract, our spin will provide innovative, agile list MRAM technology, logic design and back-end of line manufacturing services to advance the development and demonstration of strategic radiation hardened, high-reliability FPGA technology. This initiative supports both current and future DoD, strategic and space system requirements. Earlier this month, we attended Semicon West where we engaged in meaningful conversations with automotive companies about use cases for STT-MRAM chiplets with increasing vehicle electrification. Central processing units require much higher density and faster memory that current technology cannot provide as a result, we are starting to see increasing interest in our STT-MRAM products to handle the vast amount of data that we generate. We see this as a meaningful opportunity for Everspin over the next few years and expect to have further conversations with potential automotive customers at the automotive chiplet alliance conference in October. We are also pleased to share that we entered into a strategic agreement with a leading provider of sensor devices to provide foundry services for the latest generation TMR sensor device has been has fundamental IP for TMR sensors and a long history of manufacturing these devices. This agreement will allow our customer to enable a consistent, high-quality product supplier for their end markets, including for industrial and commercial applications. To date we have manufactured and shipped over $150 million MRMSCDMRAM. and magnetic TMR sensors from our Chandler, Arizona facility.

現在轉向我們先前的財報電話會議上的抗輻射計劃，我們注意到我們正在利用我們的 STT-MRAM 技術開展兩項抗輻射計劃。第一個與特設 64 兆位元 STT-MRAM 專案相關的計畫仍在進行中。第二個專案旨在建構策略性抗輻射 FPGA。正如最近宣布的，我們簽署了一份合同，根據合同繼續與QuickLogic 和霍尼韋爾在該項目上進行合作，我們的業務將提供創新、敏捷的列表MRAM 技術、邏輯設計和後端生產線製造服務，以推進開發和展示戰略抗輻射、高可靠性 FPGA 技術。該計劃支持當前和未來的國防部、戰略和太空系統需求。本月早些時候，我們參加了 Semicon West，與汽車公司就 STT-MRAM 小晶片在車輛電氣化程度不斷提高的情況下的使用案例進行了有意義的對話。中央處理單元需要更高的密度和更快的內存，這是當前技術無法提供的，因此我們開始看到人們對我們的 STT-MRAM 產品越來越感興趣，以處理我們產生的大量資料。我們認為這對 Everspin 來說是未來幾年的一個有意義的機會，並期望在 10 月的汽車小晶片聯盟會議上與潛在的汽車客戶進行進一步對話。我們也很高興地告訴大家，我們與一家領先的感測器設備供應商達成了戰略協議，為最新一代 TMR 感測器設備提供代工服務，我們擁有 TMR 感測器的基礎 IP 和製造這些設備的悠久歷史。該協議將使我們的客戶能夠為其終端市場（包括工業和商業應用）提供一致的高品質產品供應商。迄今為止，我們已製造並出貨了超過 1.5 億美元的 MRMSCDMRAM。以及來自我們亞利桑那州錢德勒工廠的磁性 TMR 感測器。

Turning to our outlook for the remainder of 2024. As we have discussed on our last two earnings calls, we expect the year to be weighted more heavily towards the second half of 2024. Despite the short-term challenges I outlined above, we continue to see a path towards a stronger second half as we begin to recognize revenue from our new STT-MRAM design wins.

轉向我們對 2024 年剩餘時間的展望。正如我們在過去兩次財報電話會議上所討論的那樣，我們預計 2024 年下半年的比重將更大。儘管存在我上面概述的短期挑戰，但隨著我們開始從新的 STT-MRAM 設計勝利中確認收入，我們繼續看到下半年更強勁的道路。

I will now turn it over to our interim CFO, Matt Tenorio, who will take you through our second quarter financials and third quarter 2024 guidance. Matt?

我現在將其交給我們的臨時財務長 Matt Tenorio，他將向您介紹我們第二季的財務狀況和 2024 年第三季的指導。馬特？

Thank you, Sanjeev, and good afternoon, everyone. I'm pleased to return to Everspin at such an exciting time.

謝謝桑吉夫，大家下午好。我很高興在如此激動人心的時刻回到 Everspin。

Now turning to our results for the second quarter. We are pleased to deliver quarterly results within our guidance range with revenue of 1$0.6 million compared to $15.7 million in the second quarter of 2023. Mram product sales in the second quarter, which include both Toggle and STT-MRAM revenue, was $9.9 million compared to $13.4 million in Q2 of 23. The decrease was a result of a decline in product sales due to the timing of customer demand. Licensing royalty patent and other revenue in the second quarter decreased to $0.7 million compared to $2.3 million in Q2 23 due to a decline in revenue from our rad-hard projects.

現在轉向我們第二季的業績。我們很高興能夠在我們的指導範圍內交付季度業績，收入為 160 萬美元，而 2023 年第二季度的收入為 1570 萬美元。第二季 Mram 產品銷售額（包括 Toggle 和 STT-MRAM 收入）為 990 萬美元，而 23 年第二季為 1,340 萬美元。下降的原因是因為顧客需求的時間安排導致產品銷售下降。由於我們的抗輻射項目收入下降，第二季的專利授權費和其他收入從 2023 年第二季的 230 萬美元下降至 70 萬美元。

Turning to gross margin, our GAAP gross margin was 49% for the second quarter, down from 58.4% in Q2 23. The decrease was due to a decline in product sales and licensing revenue related to our RadHard deals GAAP operating expenses for the second quarter of 2024 were $8 million compared to $7.6 million in the second quarter of 2023. The slight increase in OpEx was largely due expenses related to our new XSPI. family of SDTM. round products. Due to these factors, our second quarter results were a loss of $2.5 million or a loss of $0.12 per basic share within our guidance range of a loss of $0.09 to $0.14 based on $21.6 million weighted average basic shares outstanding. This compares to net income of $3.9 million or $0.18 per diluted share in the second quarter of 2023 adjusted EBITDA was a negative $0.2 million compared to $5.4 million in Q2 23.

談到毛利率，我們第二季的 GAAP 毛利率為 49%，低於 23 年第二季的 58.4%。下降的原因是與我們的 RadHard 交易相關的產品銷售和授權收入下降。營運支出的小幅成長主要是由於與我們的新 XSPI 相關的費用。 SDTM 家族。圓形產品。由於這些因素，我們第二季的業績虧損250 萬美元，或每股基本股虧損0.12 美元，在我們的指導範圍內，即基於已發行加權平均基本股2,160 萬美元計算，虧損0.09 美元至0.14 美元。相較之下，2023 年第二季淨利為 390 萬美元，即稀釋後每股收益 0.18 美元，調整後 EBITDA 為負 20 萬美元，而 23 年第二季為 540 萬美元。

Looking ahead, we expect to see a modest improvement in our loss per share next quarter. We are pleased that our balance sheet remains strong and debt-free. We ended the quarter with cash and cash equivalents of $36.8 million, up from $34.8 million at the end of the prior quarter. Going forward, we continue to believe our capital is sufficient to meet our anticipated capital requirements for the next year. Cash flow generated from operations was $1.7 million for the second quarter.

展望未來，我們預計下季每股虧損將略有改善。我們很高興我們的資產負債表保持強勁且無債務。本季末，我們的現金和現金等價物為 3,680 萬美元，高於上一季末的 3,480 萬美元。展望未來，我們仍然相信我們的資本足以滿足明年的預期資本需求。第二季營運產生的現金流為 170 萬美元。

Turning to guidance, as we mentioned on our last two earnings calls we had anticipated lower revenue for the first half of 2024, which has proven to be true Looking to the second half of the year. We still believe that we will begin to see a ramp in revenue as well as design wins. And we have already begun to see positive signs of recovery in inventory consumption of our customers.

談到指引，正如我們在最近兩次財報電話會議上提到的，我們預計 2024 年上半年的收入將下降，展望下半年，事實證明這是正確的。我們仍然相信，我們將開始看到收入的成長以及設計的勝利。我們已經開始看到客戶庫存消耗復甦的正面跡象。

Taking these factors into consideration, we expect Q3 total revenue in the range of $11.5 million to $12.5 million and GAAP net loss per basic share to be between $0.05 and $0.1.

考慮到這些因素，我們預計第三季總營收將在 1,150 萬美元至 1,250 萬美元之間，GAAP 每股基本淨虧損將在 0.05 美元至 0.1 美元之間。

In summary, we remain optimistic for the second half of the year and remain focused on scaling our business and converting design wins to revenue. We are focused on growing our persist, Toggle MRAM and STT-MRAM products and anticipate modest growth for our products for the remainder of this year. We also expect to see strong growth in our datacenter products in the second half with our high density STT-MRAM. Overall, we remain confident in our ability to expand and scale our business in the second half of 2024 operator, you may now open the line for questions.

總之，我們對下半年保持樂觀，並繼續專注於擴大業務並將設計成果轉化為收入。我們專注於發展我們的持久性、Toggle MRAM 和 STT-MRAM 產品，並預計我們的產品在今年剩餘時間內將適度成長。我們也預計下半年我們的高密度 STT-MRAM 資料中心產品將強勁成長。總體而言，我們對 2024 年下半年擴大和擴大業務的能力仍然充滿信心。

Thank you.

謝謝。

And as a reminder, if you do have a question, simply press star one one on your telephone and wait for your name to be To withdraw yourself from the queue, press Star one one. Please standby for our first question, and it comes from the line of Quinn Bolton with Needham & Company.Please proceed.

提醒一下，如果您確實有問題，只需在電話上按星號一一，然後等待您的名字出現。請等待我們的第一個問題，它來自 Quinn Bolton 和 Needham & Company 的線路。

Hey, guys. Thanks for letting me ask few questions. Just wanted to start – you mentioned some increasing design win momentum, especially in Europe and APAC. I wonder if you could give us some more details there? Are there particular applications for these designs? Is it NOR Flash replacement? Are there other applications? I assume a lot of these are sort of embedded industrial type designs, but just wondering if you could give us more color perhaps on some of that design win momentum?

嘿，夥計們。謝謝你讓我問幾個問題。只是想開始 - 您提到了一些不斷增長的設計獲勝勢頭，尤其是在歐洲和亞太地區。我想知道你能否提供我們更多細節？這些設計有特殊的應用嗎？它是 NOR Flash 的替代品嗎？還有其他應用嗎？我認為其中很多都是嵌入式工業類型設計，但只是想知道您是否可以為我們提供更多關於這些設計贏得動力的色彩？

Sure, Quinn. I think as we have discussed in the past, these design wins are targeted towards the programmable logic controllers in the industrial automation area, and we’re seeing them both in Japan as well as Europe. And also, we are seeing some traction with the FPGA companies and the aerospace and defense centers. So basically, we have three different areas where we’re starting to see some traction. With the FPGA, like you mentioned, it’s basically targeting NOR flash replacement with the programmable logic controllers, so backing up a little bit, our low-density STT-MRAM product basically has both interfaces compatible with NOR flash as well as SRAM. So, when you are looking at FPGA, that’s where they are taking advantage of the NOR flash type interface. And we are looking at programmable logic controllers, they are taking advantage of our SRAM type interface. So, those are the primary design win areas that we are looking at and verticals that we are looking at.

當然，奎因。我認為正如我們過去所討論的，這些設計勝利是針對工業自動化領域的可程式邏輯控制器，我們在日本和歐洲都看到了它們。此外，我們還看到了 FPGA 公司以及航空航天和國防中心的一些關注。基本上，我們在三個不同的領域開始看到一些吸引力。對於 FPGA，就像您提到的那樣，它基本上是針對用可編程邏輯控制器替代 NOR 閃存，因​​此稍微備份一下，我們的低密度 STT-MRAM 產品基本上具有與 NOR 閃存和 SRAM 兼容的接口。因此，當您查看 FPGA 時，您會發現這就是他們利用 NOR 快閃記憶體類型介面的地方。我們正在研究可程式邏輯控制器，它們正在利用我們的 SRAM 類型介面。因此，這些是我們正在關注的主要設計獲勝領域和我們正在關注的垂直領域。

Great. And just maybe a follow-up question. Just you mentioned starting to see signs of momentum in the customer base in terms of the inventory digestion. Where do you think we are in that inventory digestion process? And perhaps, more importantly, do you think you get back to sort of shipping in line with consumption, say, by the end of the year? Do you think this inventory burn for various customers potentially last into early 2025?

偉大的。也許只是一個後續問題。剛才您提到，在庫存消化方面，客戶群開始看到動力的跡象。您認為我們在庫存消化過程中處於什麼階段？也許，更重要的是，您認為到年底，您是否會恢復與消費相符的運輸？您認為各種客戶的庫存消耗可能會持續到 2025 年初嗎？

So, we are seeing signals of inventory consumption. We are also seeing our customers placing orders with very short lead times. So, even though our lead times will be 20 to 26, we will get an order where they want us to fill the order within a weak kind of timeframe. So, all of this is basically suggesting that our customers have inventory that is being consumed in their hand to mouth and just because they are trying to conserve their cash, we are getting the orders last minute. So, I think the behavior is going to change over time, where they are really starting to see orders come in and they will want to build inventory on their side as well. So, I think by the end of the year, we should see a returning to normal lead times and inventories over here.

因此，我們看到了庫存消耗的訊號。我們也看到我們的客戶在很短的交貨時間內下訂單。因此，即使我們的交貨時間為 20 到 26，我們也會收到他們希望我們在較弱的時間範圍內完成訂單的訂單。因此，所有這些基本上都表明我們的客戶的庫存正在被消耗，只是因為他們想節省現金，我們才在最後一刻收到訂單。因此，我認為這種行為會隨著時間的推移而改變，他們真正開始看到訂單進來，他們也希望建立自己的庫存。因此，我認為到今年年底，我們應該會看到這裡的交貨時間和庫存恢復到正常水平。

Great. And then on I guess, a couple for Matt. The gross margin, Dan, at 49%, I certainly understand the mix shift away from some of the royalty op income is going to have a big impact on the gross margin. But it looks even if I account for that mix, that the product gross margin was probably in the mid to upper 40s on to get the blended gross margin of 49%. Can you just give us a sense of what's going on in the product side? Is that just purely absorption on lower revenue or were there other issues that might have affected product gross margin in the quarter?

偉大的。然後我猜，還有一對是給馬特的。丹，毛利率為 49%，我當然明白，部分特許權使用費收入的組合轉變將對毛利率產生重大影響。但即使我考慮到這種組合，產品毛利率也可能在 40 多歲左右，綜合毛利率為 49%。能為我們介紹一下產品方面的狀況嗎？這純粹是為了吸收較低的收入，還是有其他可能影響本季產品毛利率的問題？

It's a good question, and I think you've got it. But really also what we're seeing is a mix to some of the lower margin products. And then also because we are running lower volume, we are having to absorb our fixed costs over that volume. But we do expect that to to improve as the year progresses.

這是個好問題，我想你已經明白了。但實際上我們看到的是一些利潤率較低的產品的混合。而且，由於我們的產量較低，我們必須吸收超過該產量的固定成本。但我們確實預計隨著時間的推移，這種情況會有所改善。

Got it.Thank you very much.

明白了。

Thank you. Our next question comes from the line of Richard Shannon with Craig-Hallum. Please proceed.

謝謝。我們的下一個問題來自理查德·香農和克雷格·哈勒姆的對話。請繼續。

Well, guys, thanks for letting me ask a couple of questions. First one, I guess, is just on the third quarter guidance, trying to get a trying to fit this into the theme here of the second half improving over the first half. I guess I wanted to get a sense of whether products is expected to grow at all sequentially or is this all coming from the license and royalty bucket?

好吧，夥計們，謝謝你讓我問幾個問題。我想，第一個只是關於第三季的指導，試圖將其融入下半年比上半年有所改善的主題中。我想我想了解產品是否預計會連續增長，或者這一切都來自許可和版稅桶？

Yes, we are expecting our of our product revenue to go up sequentially.

是的，我們預計我們的產品收入將持續成長。

Okay. And can you characterize whether there's I assume there's very little if any persist revenues on there, but how about toggle versus hedges and the SDT., was there any pickup, a pickup in the high-density stuff or is it all talks?

好的。你能否描述一下，我認為那裡的持續收入很少，如果有的話，但是切換與對沖和 SDT 相比怎麼樣？

I think as we mentioned, we do expect the high-density STT. product to ramp up as well in the in the next half.

我認為正如我們所提到的，我們確實期待高密度的 STT。下半年產品也會增加。

Okay. Fair enough. Sanjay, maybe a kind of a multipart question here, kind of looking at your some of your major projects that are recognized in the licensee royalty bucket here, especially the rad-hard projects and contract you announced, I think last week maybe how do we think about the revenue stream here going forward, comparing it to what we've seen over the past year and your year and half or so? And then how long do these contracts? You think you've talked about three of them. How long do they go?

好的。很公平。桑傑，也許是一個多部分的問題，看看你的一些主要項目，這些項目在被許可人特許權使用費桶中得到認可，特別是你宣布的抗輻射項目和合同，我想上週我們該如何做考慮這裡未來的收入流，將其與我們過去一年和您一年半左右看到的情況進行比較？那麼這些合約的有效期限是多久？您認為您已經談論了其中三個。他們要走多久？

Yes. how are you doing that, Richard thank you. And you know, with our ad revenue. As you have talked in the past, there's always a little bit lumpy, but we have talked about a two rad-hard projects right now. One is the ongoing one where we're building out is at our 64 megabit STT-MRAM for Honeywell. And that project is basically reaching a point where we would have had, I think, Honeywell and be ready to qualify qualify those devices once they complete processing in the individual fabs. As far as the QuickLogic project is concerned, we are building out this strategic rad-hard. Fpga is a project in several phases, right?

是的。你怎麼樣，理查德，謝謝你。你知道，我們的廣告收入。正如您過去所說的那樣，總是有點不穩定，但我們現在討論了兩個抗輻射項目。其中之一是我們正在為霍尼韋爾建造的 64 兆位元 STT-MRAM。我認為，該項目基本上已經達到了這樣的程度：我們將擁有霍尼韋爾，並準備好在這些設備在各個工廠完成加工後對其進行資格認證。就 QuickLogic 專案而言，我們正在建立這項策略性的抗輻射專案。Fpga 是一個分成幾個階段的項目，對吧？

So this is the next phase that has been renewed basically as QuickLogic announced its $5.2 million. So I was one share is a $1.8 million that we announced on the site in the press release.

因此，這是基本上已更新的下一階段，因為 QuickLogic 宣布其 520 萬美元。因此，我們在網站上的新聞稿中宣布，我的每股價值為 180 萬美元。

And we expect to, you know, continue the project going forward. What Discover so far is just the design part, we still need to go out and build the device and then characterize it and bring it to production planning. Those stages really get funded as we keep moving forward. But for now are these funding I'll just say that's completely completed.

你知道，我們希望繼續推進該專案。到目前為止發現的只是設計部分，我們仍然需要出去建造設備，然後對其進行表徵並將其納入生產計劃。隨著我們不斷前進，這些階段確實得到了資助。但目前這些資金我只能說已經完全完成了。

Okay. And is that something that lasts through the end of the year specifically to the strategic radar contractors that extend beyond?

好的。對於戰略雷達承包商來說，這種情況會持續到今年底嗎？

it extends into Q1 as well, Richard.

理查德，它也延伸到了第一季。

Okay. Okay. Fair enough. And maybe touching on the PERSIST product line, some nice commentary here. I guess wanted to get a sense of how do we think of the scale of the revenue potential over the next several quarters relative to the product revenues you had today?

好的。好的。很公平。也許還涉及 PERSIST 產品線，這裡有一些很好的評論。我想了解我們如何看待未來幾季相對於您今天的產品收入的收入潛力規模？

Obviously, hopefully the building nicely on what you built in a space you have to toggle so far, how do we think about the potential to the design wins you have in those that you're expecting to close out soon. I mean, can we get to a revenue level and say a couple of years that's half of what Todd was doing today? Or any way to characterize how we can to quantify and build our models for this new product.

顯然，希望到目前為止，您在必須切換的空間中建造的建築物很好，我們如何考慮您在那些您期望很快關閉的設計中獲勝的潛力。我的意思是，我們能否達到一個收入水平，並說幾年後托德今天所做的事情的一半？或任何方式來描述我們如何量化和建立這個新產品的模型。

So without giving any guidance, Richard using, I'll just phrase it. Yes, that is our desire right of you would like to reach Diboll 50% of our type revenues that we get in the next couple of years. So we will start converting some of the design wins towards the second half of the year, more probably towards the end of 2024 or early 2025. So I think meaningful revenue would be only 25, but there will be some recognition in 2024 as well.

因此，在不提供任何指導的情況下，理查德使用，我只是用措辭表達它。是的，這是我們的願望，您希望在未來幾年內將我們類型收入的 50% 交給 Diboll。因此，我們將在下半年開始轉化一些設計成果，更有可能是在 2024 年底或 2025 年初。所以我認為有意義的收入只有 25，但 2024 年也會有一些認可。

Okay. Fair enough. I think that's all the questions and I will jump along.

好的。很公平。我想這就是所有的問題，我會跳下去。

Thank you. And as a reminder, ladies and gentlemen, if you do have a question, simply press, you are one one to get in the queue. And as I see no further questions in the queue, I will conclude the Q&A and conference for today. Thank you to all who participated and you may now disconnect. Thank you.

謝謝。提醒一下，女士們先生們，如果您確實有問題，只需按一下，您就是排隊的人之一。由於我在隊列中沒有看到更多問題，我將結束今天的問答和會議。感謝所有參與的人，現在您可以斷開連接了。謝謝。