Everspin Technologies Inc (MRAM) 2024 Q3 法說會逐字稿

Good afternoon and welcome to Everspin Technologies third-quarter 2024 financial results conference call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the conference over to Cassidy Patterson, Investor Relations for Everspin.

下午好，歡迎參加 Everspin Technologies 2024 年第三季財務業績電話會議。（操作員說明）謹此提醒，本次電話會議正在錄音。我現在想將會議交給 Everspin 投資者關係部的 Cassidy Patterson。

Thank you, operator, and good afternoon, everyone. Everspin released results for the third quarter 2024, ended September 30, 2024, this afternoon after market close. I'm Cassidy Patterson, Investor Relations for Everspin. And with me on today's call are Sanjeev Agarwal, 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 9 月 30 日的 2024 年第三季業績。我是 Everspin 投資者關係部的卡西迪·帕特森 (Cassidy Patterson)。與我一起參加今天電話會議的還有總裁兼執行長桑吉夫·阿加瓦爾 (Sanjeev Agarwal)；臨時財務長馬特‧特諾裡奧 (Matt Tenorio)。

Before we begin the call, I’d like to remind you that today's discussion may 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. Customer and industry adoption of MRAM technology, successfully bringing to market and manufacturing products in Everspin’s design pipeline and executing on its business plan.

在我們開始通話之前，我想提醒您，今天的討論可能包含有關未來事件的前瞻性陳述，包括但不限於公司對 Everspin 未來業務、財務業績的預期和目標。客戶和產業採用 MRAM 技術，成功將 Everspin 設計流程中的產品推向市場並製造產品，並執行其業務計劃。

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 statements. We would encourage you to review the company’s SEC filings, including the annual report on Form 10-K and other SEC filings made from time to time in which the company may discuss risk factors associated with investing in Everspin.

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。我們鼓勵您查看該公司向 SEC 提交的文件，包括 10-K 表格的年度報告以及不時提交的其他 SEC 文件，其中公司可能會討論與投資 Everspin 相關的風險因素。

All forward-looking statements are made as of the date of this call, and except as required by law, the company undertakes no obligation to update or alter any forward-looking statements made on this call, whether as a result of new information, future events, or otherwise. The financial results discussed today reflect the company’s preliminary estimates and are based on the information available at the date hereof and are subject to further review by Everspin and its external auditors.

所有前瞻性陳述均截至本次電話會議之日作出，除非法律要求，否則本公司不承擔更新或更改本次電話會議中所做的任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他情況。今天討論的財務表現反映了公司的初步估計，並基於截至本新聞稿發布之日可獲得的信息，並有待 Everspin 及其外部審計師的進一步審查。

The company’s actual results may differ materially from these estimates as a result of the completion of financial closing procedures, final adjustments, and other developments arising between now and the time that the financial results for this period are finalized. Additionally, the company’s press release and statements made during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms.

由於財務結算程序的完成、最終調整以及從現在到本期財務業績最終確定期間發生的其他事態發展，公司的實際業績可能與這些估計存在重大差異。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以 GAAP 和非 GAAP 術語討論某些措施和財務資訊。

Included in the company’s press release are definitions and reconciliation of GAAP net income to adjusted EBITDA, which provide additional details. A copy of the press release is posted on the Investor Relations section of Everspin’s website at www.everspin.com. And now, I’d like to turn the call over to Everspin’s President and CEO, Sanjeev Aggarwal. Sanjeev, please go ahead.

該公司的新聞稿中包括 GAAP 淨利潤與調整後 EBITDA 的定義和調節，其中提供了更多詳細資訊。新聞稿的副本發佈在 Everspin 網站 www.everspin.com 的投資者關係部分。現在，我想將電話轉給 Everspin 的總裁兼執行長 Sanjeev Aggarwal。桑吉夫，請繼續。

Thank you, Cassidy, and thanks everyone for joining us on the call today. We are pleased to report our third quarter results with revenue of $12.1 million in line with our guidance and EPS of $0.10 ahead of our guidance range. Contributing to our results were a number of key wins during the quarter, including the selection of our 1 gigabit PERSYST STT-MRAM for the IBM FlashCore Module 4 or FCM4, and the selection of a PERSYST Toggle MRAM for the Lucid Gravity SUV.

謝謝你，卡西迪，也謝謝大家今天加入我們的電話會議。我們很高興地報告第三季業績，收入為 1,210 萬美元，符合我們的指導方針，每股收益比我們的指導範圍高出 0.10 美元。本季取得的一系列關鍵成果對我們的業績做出了貢獻，包括為 IBM FlashCore Module 4 或 FCM4​​ 選擇 1 GB PERSYST STT-MRAM，以及為 Lucid Gravity SUV 選擇 PERSYST Toggle MRAM。

We ended the quarter with a strong balance sheet, including cash of $39.6 million. Everspin had a number of key advancements and new contracts during the quarter, most notably with Frontgrade and a Department of Defense, or DoD contractor that demonstrates the strength of our business and breadth of our product portfolio.

本季結束時，我們的資產負債表強勁，其中包括 3,960 萬美元的現金。Everspin 在本季度取得了許多關鍵進展和新合同，最引人注目的是與 Frontgrade 和國防部或 DoD 承包商的合同，這證明了我們業務的實力和產品組合的廣度。

I'll start by discussing products for which we recognized revenue in the quarter before discussing new wins and other projects with future revenue potential. During the Q3, we started to receive orders and began to recognize revenue for the sale of our PERSYST 1 gigabit STT-MRAM into IBM's FlashCore Module 4, or FCM4, for data center applications.

我將首先討論我們在本季確認收入的產品，然後討論新的勝利和其他具有未來收入潛力的項目。在第三季度，我們開始收到訂單，並開始確認將 PERSYST 1 GB STT-MRAM 銷售到 IBM FlashCore Module 4（或 FCM4​​）以用於資料中心應用的收入。

This is the fourth generation of IBM's FCM that has featured Everspin's 1 gigabit STT-MRAM solution. Our PERSYST solution delivers 2.7 gigabytes per second of both read and write bandwidth, coupled with non-volatility, and a DDR4 like interface. We expect to provide parts for this product line for approximately the next two years.

這是第四代 IBM FCM，採用 Everspin 的 1 GB STT-MRAM 解決方案。我們的 PERSYST 解決方案可提供每秒 2.7 GB 的讀寫頻寬，並具有非揮發性和類似 DDR4 的介面。我們預計在大約未來兩年內為該產品線提供零件。

Everspin continued to see modest growth in its product revenue and design wins with its Toggle MRAM PERSYST products. We observed signs of inventory consumption at our customers and a sequential decrease in our distributor inventory. We are also pleased to share our continued strong traction with our 4 megabit to 128 megabit STT-MRAM PERSYST products.

Everspin 的產品收入和 Toggle MRAM PERSYST 產品的設計勝利繼續小幅增長。我們觀察到客戶庫存消耗的跡像以及經銷商庫存的連續減少。我們也很高興與大家分享我們的 4 兆位元至 128 兆位元 STT-MRAM PERSYST 產品持續強勁的吸引力。

Based on our ongoing customer discussions, we remain optimistic about the adoption of our PERSYST STT-MRAM product line and continue to expect additional design wins to go into production later this year with revenue ramping in 2025. As a reminder, this product family was brought to production last year and is the highest performing persistent memory solution in the industry.

根據我們正在進行的客戶討論，我們對 PERSYST STT-MRAM 產品線的採用保持樂觀態度，並繼續預計更多設計成果將在今年稍後投入生產，收入將在 2025 年大幅增長。提醒一下，該產品系列於去年投入生產，是業界表現最高的持久記憶體解決方案。

Turning to our licensing, royalty, patent, and other revenue. As I mentioned earlier, we began to recognize initial revenue from the new $9.25 million contract with Frontgrade Technologies that we announced in August. Under this contract, we are working with Frontgrade to develop a custom radiation hardened STT-MRAM macro for embedded solutions using our PERSYST STT-MRAM technology. This deal will support current and future DoD strategic radiation hardened and ow earth orbital or LEO Space Systems.

談到我們的授權、特許權使用費、專利和其他收入。正如我之前提到的，我們開始確認 8 月宣布的與 Frontgrade Technologies 簽訂的 925 萬美元新合約的初始收入。根據該合同，我們將與 Frontgrade 合作，使用我們的 PERSYST STT-MRAM 技術為嵌入式解決方案開發客製化的抗輻射 STT-MRAM 巨集。這筆交易將支持當前和未來的國防部戰略輻射強化和流地球軌道或低地球軌道空間系統。

Upon successful completion of this first phase of the project, the contract allows for the award of future optional phases. As we noted on previous calls, we are engaged in two other rad-hard programs that use our STT-MRAM technology. The first program relates to an ad-hoc 64 megabit STT-MRAM project, and the second is focused on building a strategic rad-hard FPGA.

專案第一階段成功完成後，合約允許授予未來可選階段。正如我們在先前的電話會議中指出的那樣，我們正在參與另外兩個使用我們的 STT-MRAM 技術的抗輻射項目。第一個項目涉及臨時 64 兆位元 STT-MRAM 項目，第二個項目專注於建構策略性抗輻射 FPGA。

We are pleased to share that both rad-hard programs remain on track to move to their respective next phases as we hit our internal third quarter milestones for both programs and recognize revenue. In addition, we continue to recognize royalty revenue from our customers that have licensed our IP in the field of STT-MRAM and TMR sensors.

我們很高興地告訴大家，隨著我們達到兩個專案的內部第三季里程碑並確認收入，這兩個抗輻射專案仍有望進入各自的下一階段。此外，我們繼續確認已授權我們在 STT-MRAM 和 TMR 感測器領域智慧財產權的客戶的特許權使用費收入。

Turning to below the line item, during the third quarter, we received a $14.6 million award for the next 2.5 years from a DOD contractor to develop a sustainment plan for our MRAM manufacturing facility to provide continuous onshore MRAM capabilities to their aerospace and defense customers. We began to recognize the benefits of this award during the third quarter. This award is being recognized in other income, as Matt will explain later in his remarks.

談到線下項目，在第三季度，我們從國防部承包商處獲得了未來2.5 年的1,460 萬美元獎勵，用於為我們的MRAM 製造工廠製定維持計劃，為他們的航空航天和國防客戶提供持續的陸上MRAM 能力。我們在第三季開始認識到該獎項的好處。正如馬特稍後將在他的演講中解釋的那樣，該獎項正在其他收入中得到認可。

Now, I would like to discuss some of our recent awards that will contribute to revenue in future quarters. Last month we announced that Lucid Motors has selected our PERSYST MRAM for use in its recently released Gravity SUV. Lucid selected our product because it meets the AEC-Q100 Grade 1 specification of minus 40 degrees celsius to plus 125 degrees celsius temperature operation. This design win is a clear demonstration of the reliability and performance that our MRAM products deliver in demanding environments.

現在，我想討論我們最近獲得的一些獎項，這些獎項將有助於未來幾季的收入。上個月，我們宣布 Lucid Motors 已選擇我們的 PERSYST MRAM 用於其最近發布的 Gravity SUV。Lucid 選擇我們的產品是因為它符合 AEC-Q100 1 級規範，即 - 40 攝氏度到 + 125 攝氏度的溫度操作。這項設計勝利清楚地證明了我們的 MRAM 產品在要求苛刻的環境中提供的可靠性和性能。

We began to ship our Toggle MRAM to support prototypes for this project during the third quarter and expect to continue to recognize revenue for approximately the next two years, depending on consumer reception of the SUV in the marketplace.

我們在第三季開始出貨 Toggle MRAM 以支援該專案的原型，並預計在未來兩年左右繼續確認收入，具體取決於消費者對市場上 SUV 的接受程度。

We are also pleased to share that in collaboration with Purdue University, we won a project to advance artificial intelligence hardware through the Microelectronic Commons program in collaboration with the Silicon Crossroads Microelectronics Common or SCMC hub. This project CMOS plus MRAM hardware for energy efficient artificial intelligence or Cheetah will leverage the unique capabilities of MRAM for designing efficient computing hardware fabrics.

我們也很高興與大家分享，透過與普渡大學合作，我們贏得了一個項目，透過與 Silicon Crossroads Micro electronics Common 或 SCMC 中心合作的微電子共享計劃來推進人工智慧硬體。此專案用於節能人工智慧或 Cheetah 的 CMOS 加 MRAM 硬體將利用 MRAM 的獨特功能來設計高效的運算硬體結構。

Everspin will provide its state-of-the-art SST-MRAM technology optimized for fast switching and high read margins to support energy efficient AI solutions. In addition, Everspin will deploy its manufacturing expertise to fabricate reliable SST-MRAM.

Everspin 將提供其最先進的 SST-MRAM 技術，該技術針對快速切換和高讀取裕量進行了最佳化，以支援節能的 AI 解決方案。此外，Everspin 將利用其製造專業知識來製造可靠的 SST-MRAM。

We were one of the four projects to receive funding from the Applied Research Institute, and the project will receive a total of $21 million over four years to be distributed across all contributors. Everspin is one of several contributors to this project, and we expect to start recognizing revenue in Q4 ‘24.

我們是獲得應用研究所資助的四個計畫之一，該計畫將在四年內獲得總計 2,100 萬美元的資金，並分配給所有貢獻者。Everspin 是該專案的幾個貢獻者之一，我們預計將在 2024 年第四季開始確認收入。

Earlier this month, we attended the automotive chiplet forum. The event brought together key players from the global automotive ecosystem to discuss how to jointly tackle the inevitable evolution towards chiplet architecture in cars. This complimented our attendance at SEMICON West in July, where we had a number of meaningful conversations with automotive companies about the capabilities of our planned SST-MRAM chiplets to manage the vast amounts of data that EVs generate.

本月初，我們參加了汽車小晶片論壇。這項活動匯集了全球汽車生態系統的主要參與者，共同討論如何共同應對汽車小晶片架構不可避免的演進。這對我們參加 7 月的 SEMICON West 展會表示讚賞，在會上我們與汽車公司就我們計劃的 SST-MRAM 晶片管理電動車生成的大量數據的能力進行了多次有意義的對話。

Through these events and ongoing discussions, we continue to support the development of the ecosystem for our SST-MRAM chiplets in the automotive sector. We believe this will expand our market opportunity and enhance our growth over the coming years.

透過這些活動和持續的討論，我們繼續支持汽車領域 SST-MRAM 小晶片生態系統的發展。我們相信這將擴大我們的市場機會並促進我們未來幾年的成長。

As mentioned in the past, a first step would be alignment on the interface for the chiplets, and then the protocol that manages the data across this interface. We expect to see chiplets addressing these applications over the next three years. As a reminder, the chiplet is part of our Unisys Unified Code and Data Memory Solutions, which are currently in the design phase.

正如過去所提到的，第一步是在小晶片的介面上進行對齊，然後是管理該介面上的資料的協定。我們預計在未來三年內將看到小晶片解決這些應用程式。提醒一下，該小晶片是我們的 Unisys 統一程式碼和資料記憶體解決方案的一部分，該解決方案目前正處於設計階段。

Last quarter, we discussed having entered into a strategic agreement with a leading provider of sensor devices to provide foundry services for the latest generation TMR sensor device on our MRAM line in our Chandler facility. The project is progressing well based on result from the first silicon, and we expect to meet our customers’ Q4 schedule and milestones.

上季度，我們討論了與一家領先的傳感器設備供應商達成的戰略協議，為我們錢德勒工廠的 MRAM 生產線上的最新一代 TMR 傳感器設備提供代工服務。根據第一批晶片的結果，該專案進展順利，我們期望滿足客戶的第四季度時間表和里程碑。

We expect to recognize nonrecurring engineering or NRE revenue for helping with the qualification. We also expect to recognize foundry revenue starting in Q4 from their initial production order. This revenue stream will be recognized in our licensing and royalty revenue.

我們希望確認非經常性工程或 NRE 收入，以幫助獲得資格。我們也預計從第四季開始從最初的生產訂單中確認代工收入。此收入流將在我們的許可和特許權使用費收入中得到確認。

During the Q3, we continued to have meaningful conversations with customers, which we believe will turn into additional design wins for our STT-MRAM PERSYST product over the coming quarters. We are particularly excited to start working on the microelectronics commons project to deploy STT-MRAM for the development of energy efficient AI solutions. I will now turn it over to our Interim CFO, Matt Tenorio, who will take you through our Q3 financials and Q4 2024 guidance. Matt?

在第三季度，我們繼續與客戶進行有意義的對話，我們相信這將在未來幾季為我們的 STT-MRAM PERSYST 產品帶來更多設計勝利。我們特別高興能夠開始進行微電子公共項目，部署 STT-MRAM 來開發節能的人工智慧解決方案。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三季的財務狀況和 2024 年第四季的指導。馬特？

Thank you Sanjeev and good afternoon, everyone. For the third quarter, we are pleased to deliver quarterly results with revenue of $12.1 million, in line with our guidance range of $11.5 million to $12.5 million compared to $16.5 million in the third quarter of 2023.

謝謝 Sanjeev，大家午安。對於第三季度，我們很高興公佈季度業績，營收為 1,210 萬美元，符合我們 1,150 萬至 1,250 萬美元的指導範圍，而 2023 年第三季為 1,650 萬美元。

MRAM product sales in the Q3, which include both Toggle and STT-MRAM revenue was $10.4 million compared to $13.5 million in Q3 '23. This year-over-year decrease was a result of a decline in product sales due to the timing of customer demand.

第三季的 MRAM 產品銷售額（包括 Toggle 和 STT-MRAM 收入）為 1,040 萬美元，而 23 年第三季為 1,350 萬美元。這一同比下降是由於客戶需求時機導致產品銷售下降的結果。

Licensing, royalty, patent, and other revenue in the third quarter decreased to $1.7 million compared to $2.9 million in Q3 '23 due to lower royalties and a decline in revenue from our rad-hard projects.

由於特許權使用費下降以及我們的抗輻射項目收入下降，第三季的授權、特許權使用費、專利和其他收入從 23 年第三季的 290 萬美元下降至 170 萬美元。

Turning to gross margin. Our GAAP gross margin was 49.2% for the third quarter, down from 60.2% in Q3 2023. The decrease was due to a decline in product sales and licensing revenue related to our rad-hard deals.

轉向毛利率。我們第三季的 GAAP 毛利率為 49.2%，低於 2023 年第三季的 60.2%。下降的原因是與我們的抗輻射交易相關的產品銷售和授權收入下降。

GAAP operating expenses for the third quarter of 2024 were $8.1 million compared to $7.9 million in the third quarter 2023. The slight increase in OpEx was largely due to expenses related to our new xSPI family of STT-MRAM products.

2024 年第三季的 GAAP 營運費用為 810 萬美元，而 2023 年第三季為 790 萬美元。營運支出的小幅成長主要是由於與我們新的 xSPI 系列 STT-MRAM 產品相關的費用。

In August, as Sanjeev mentioned, we announced a strategic award to develop a long-term plan to provide manufacturing services for aerospace and defense segments. Pursuant to the award, Everspin may receive cash payments totaling up to approximately $14.6 million upon the achievement of certain technical tasks and deliverables over a span of 2.5 years. Due to the nature of the agreement and our performance obligations, we will recognize these payments over time as other income below the line.

正如 Sanjeev 所提到的，我們在 8 月宣布了一項戰略獎項，旨在製定一項為航空航太和國防領域提供製造服務的長期計畫。根據該合同，Everspin 在 2.5 年內完成某些技術任務和交付成果後，可能會獲得總計約 1,460 萬美元的現金付款。由於協議的性質和我們的履約義務，我們將隨著時間的推移將這些付款確認為線下的其他收入。

In the third quarter of 2024 the company recorded $4.0 million of other income relating to this award. Driven primarily by this award, we recorded third quarter GAAP net income of $2.3 million or $0.10 per diluted share, substantially ahead of our guidance range of a loss of $0.05 to $0.10 based on $22 million weighted average diluted shares outstanding. This compares to net income of $2.4 million or $0.11 per diluted share in the third quarter of 2023. Adjusted. EBITDA was $4.2 million compared to $4 million in Q3 '23.

2024 年第三季度，該公司記錄了與該獎項相關的 400 萬美元其他收入。主要受該獎項的推動，我們第三季GAAP 淨利潤為230 萬美元，即稀釋後每股收益0.10 美元，大大高於我們的指導範圍，即基於2200 萬美元加權平均稀釋後流通股計算的虧損0.05 美元至0.10 美元。相比之下，2023 年第三季的淨利潤為 240 萬美元，即稀釋後每股收益 0.11 美元。已調整。EBITDA 為 420 萬美元，而 23 年第三季為 400 萬美元。

Looking ahead, we remain on track to maintain positive GAAP net income in Q4. We are pleased that our balance sheet remains strong and debt free. We ended the quarter with cash and cash equivalents of $39.6 million, up from $36.8 million at the end of the prior quarter.

展望未來，我們仍有望在第四季度保持正的 GAAP 淨利。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 3,960 萬美元，高於上一季末的 3,680 萬美元。

Looking ahead, we continue to believe our capital is sufficient to meet our anticipated capital requirements for the next year. Cash flow generated from operations was $2.8 million for the third quarter.

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。第三季營運產生的現金流為 280 萬美元。

Turning out on guidance. Looking to the remainder of 2024, we believe that product revenue will be essentially flat with the third quarter. We continue to see positive signs of recovery and inventory consumption of our customers, particularly in Europe, and expect this to drive additional demand in the coming quarters.

轉向指導。展望2024年剩餘時間，我們認為產品收入將與第三季基本持平。我們繼續看到客戶（尤其是歐洲客戶）復甦和庫存消耗的積極跡象，並預計這將在未來幾季推動額外需求。

Taking these factors into consideration, we expect Q4 total revenue in the range of $12 million to $13 million and GAAP net income per diluted share to be between breakeven and $0.05.

考慮到這些因素，我們預計第四季總營收將在 1,200 萬美元至 1,300 萬美元之間，GAAP 攤薄後每股淨利潤將在盈虧平衡至 0.05 美元之間。

In summary, we are pleased with the continued progress we have made with our customers in the form of design wins and new contracts. Going forward, we remain committed to scaling our business and converting additional design wins to revenue. Operator, you may now open the line for questions.

總之，我們對與客戶在贏得設計和新合約方面取得的持續進展感到高興。展望未來，我們仍然致力於擴大我們的業務並將額外的設計勝利轉化為收入。接線員，現在可以撥打電話提問。

(Operator Instructions) Quinn Bolton, Needham & Company.

（操作員說明）Quinn Bolton，Needham & Company。

Hey, this is Shadi Mitwalli dialing in for Quinn Bolton. Thanks for taking my question guys. I'd like to start off on the onshore and MRAM strategic award. But are you guys able to give more details on why this is getting recognized in other income versus actual revenue?

嘿，我是 Shadi Mitwalli，正在撥打 Quinn Bolton 的電話。謝謝你們回答我的問題。我想從陸上和 MRAM 戰略獎項開始。但是你們能提供更多細節來說明為什麼這一點在其他收入與實際收入中得到承認嗎？

Yes, thank you for the question. We analyzed the contract and the agreement and our performance obligations against the revenue recognition standard, ASC-606, and found that it did not squarely fit within that. Because of that, we have decided to recognize it as other income below the line.

是的，謝謝你的提問。我們根據收入確認標準 ASC-606 分析了合約、協議以及我們的履約義務，發現它並不完全符合該標準。因此，我們決定將其確認為線下其他收入。

Great. Thanks for that. And then my follow-up question is on gross margin. Gross margin was relatively flat sequentially, even though licensing revenue kicked up nicely. So I was wondering if you guys can give some more details on what kept margins flat.

偉大的。謝謝你。然後我的後續問題是毛利率。儘管授權收入大幅成長，但毛利率仍相對持平。所以我想知道你們是否可以提供更多有關保持利潤率持平的細節。

I think, we continued to see the effect of the lower demand of our Toggle products, which run through the Chandler Fab facility. So we are having to absorb the fixed cost associated with that facility against a smaller amount of units that are flowing through that fab. But as we move forward, we would expect that to improve.

我認為，我們繼續看到了透過錢德勒工廠生產的 Toggle 產品需求下降的影響。因此，我們必須吸收與該設施相關的固定成本，以減少流經該工廠的單位數量。但隨著我們的前進，我們預計情況會有所改善。

Right. Yeah, that makes sense and that's all from me.

正確的。是的，這是有道理的，這都是我的。

Richard Shannon, Craig-Hallum.

理查德·香農，克雷格·哈勒姆。

Hi guys. Thanks for taking my questions as well. I'm going to follow-up on the topic of the DoD contract you're recording in non-operating income here. I guess two questions from me.

嗨，大家好。也感謝您回答我的問題。我將跟進您在此處記錄在非營業收入中的國防部合約的主題。我想我有兩個問題。

First of all, is this something that's recognized ratably every quarter, milestone based or otherwise? And then can you maybe qualitatively or quantitatively describe how much is built into your guidance for the Q4?

首先，這是每季都會廣受認可的東西嗎？然後您能否定性或定量地描述您對第四季度的指導中有多少內容？

Thank you, Richard. Yes, so as I said, it did not fit into the criteria of the accounting standard for revenue recognition. However, we analyzed, and we are using some principles of the revenue recognition by analogy, meaning we will recognize it over the 2.5 years ratably based on the efforts and some of the milestones that are laid out in the agreement.

謝謝你，理查。是的，正如我所說，它不符合收入確認會計準則的標準。然而，我們分析了，我們正在使用類比確認收入的一些原則，這意味著我們將根據協議中規定的努力和一些里程碑在2.5年內按比例確認收入。

Okay. So I guess I'm trying to fit the numbers here into the guidance, trying to see how these work together here. And it seems to be implying either higher OpEx or lower gross margins, all the things being equal to kind of get to the midpoint of the EPS guide here. Is there dynamics that are hitting either of those categories that help explain this or is this just some conservatism built in here?

好的。所以我想我正在嘗試將此處的數字納入指南中，嘗試了解它們如何在這裡協同工作。這似乎意味著要么更高的營運支出，要么更低的毛利率，所有這些都相當於達到每股收益指南的中點。是否存在有助於解釋這一點的動態，或者這只是這裡內建的一些保守主義？

I think it might be a combination of both. We have factored in what we believe might be contributing from the DoD agreement that we've discussed. And we are also contributing some of the contribution that Sanjeev had mentioned with those other rad-hard projects that we have and combined with our continued STT-MRAM data center strength.

我認為這可能是兩者的結合。我們已經考慮了我們認為可能從我們討論過的國防部協議中做出的貢獻。我們也為 Sanjeev 提到的其他抗輻射項目做出了一些貢獻，並與我們持續的 STT-MRAM 資料中心實力結合。

Okay. Fair enough. That's my two questions. I will jump on the line. Thank you.

好的。很公平。這是我的兩個問題。我會跳線。謝謝。

(Operator Instructions) Richard Shannon, Craig Hallum Capital Group.

（操作員說明）理查德‧香農 (Richard Shannon)，克雷格‧哈勒姆資本集團 (Craig Hallum Capital Group)。

All right. Well, lucky me, I get you right back in here. Let's see here, Sanjeev, maybe a question or two for you here. So Matt's guidance that he mentioned in his prepared remarks is for product revenues being flat here. Last quarter and again this quarter you talked about some signs of inventory to get the word used stabilization or improvement or whatever.

好的。好吧，幸運的是，我馬上就讓你回到這裡。讓我們看看，桑吉夫，也許有一個或兩個問題要問你。因此，馬特在準備好的演講中提到的指導意見是產品收入持平。上個季度和本季您再次談到了庫存的一些跡象，以便使用“穩定”或“改善”等詞。

But seeing flat products cadence here to the fourth quarter doesn't necessarily show that. Maybe you can just help us understand those dynamics here and then when should we expect to see sequential growth kind of layering in overtime and then maybe help us kind of build in how much the new PERSYST products are going to help you do that?

但看到第四季扁平材產品的節奏並不一定表示這一點。也許您可以幫助我們了解這些動態，然後我們什麼時候應該看到加班的連續成長分層，然後也許可以幫助我們了解新的 PERSYST 產品將在多大程度上幫助您做到這一點？

Yes, good question, Richard. So let me start with the PERSYST STT-MRAM product that we brought to the market last year. We continue to see design wins on that project with those products. But as you know, the qualification time is anywhere from 12 to 18 months. So I don't think we're going to see significant product revenue from that part or that product line in Q4. But we do expect it to see some ramp in 2025.

是的，好問題，理查。讓我從去年推向市場的 PERSYST STT-MRAM 產品開始。我們繼續看到這些產品在該項目的設計中獲勝。但如您所知，資格審查時間為 12 至 18 個月。因此，我認為我們不會在第四季度從該部件或該產品線中看到可觀的產品收入。但我們確實預計 2025 年會出現一些成長。

And as far as the product revenue with respect to our existing products, the Toggle MRAM and the 1 gigabit, we have a very modest growth built in going in from Q3 to Q4. It's just that the signals that we're seeing are very difficult to decipher. Some are positive and some are not so positive. So, there is some conservatism built into the plan over here.

就我們現有產品（Toggle MRAM 和 1 GB）的產品收入而言，從第三季到第四季度，我們的成長非常溫和。只是我們看到的訊號很難破解。有些是積極的，有些則不那麼積極。因此，這裡的計劃有些保守。

Okay. Maybe touching on that last comment. So any way you can describe where in markets, geography, where you're seeing this in the past, you've talked about some weakness in Europe, and I think Japan. I think Japan maybe even hit by some currency dynamics there. Maybe you can help us kind of peel the layer back that one a little bit.

好的。也許觸及最後一則評論。因此，無論你如何描述市場、地理位置、過去在哪裡看到的情況，你都談到了歐洲的一些弱點，我認為是日本。我認為日本甚至可能受到一些貨幣動態的打擊。也許你可以幫助我們把那層剝掉一點。

Right. So I think like we've discussed in the past, I think Japan continues to be a challenge. And then in Europe, you've seen that Germany seems to be going through some turmoil as well. So I think those two combined are impacting our revenue profile for Q4 as well. So --

正確的。所以我認為就像我們過去討論過的那樣，我認為日本仍然是一個挑戰。然後在歐洲，你看到德國似乎也經歷一些動盪。因此，我認為這兩者的結合也會影響我們第四季的營收狀況。所以--

Okay, fair enough. I will jump on the line guys. Thank you.

好吧，很公平。我會插隊的。謝謝。

Thank you.

謝謝。

Quinn Bolton, Needham and Company.

奎因·博爾頓，李約瑟公司。

Hey guys, thanks for taking my follow up. This is more of a technical question on MRAM's PERSYST family of products, but maybe can you guys clarify the differences between PERSYST, Unisys and AgILYST. And then maybe talk about the different use cases and markets, those product lines specifically address

嘿夥計們，感謝您接受我的跟進。這更多的是關於 MRAM PERSYST 系列產品的技術問題，但也許你們能澄清一下 PERSYST、Unisys 和 AgILYST 之間的差異。然後也許可以談談不同的用例和市場，這些產品線專門針對

Sure, I can give it a shot. So the PERSYST family, the way to think about it is, you're looking for very fast read and writes, and you're looking for a large number of read and writes. So for example, 10 to the 12, 10 to the 14th or larger read and writes. And you're looking for basically persistence in the operating temperature range, which is anywhere from minus 40 to 125 degrees C if it's automotive or minus 40 to 85 is if it's industrial grade.

當然，我可以嘗試一下。所以對於 PERSYST 系列，思考的方式是，你正在尋找非常快速的讀寫，並且你正在尋找大量的讀寫。例如，10 到 12、10 到 14 或更大的讀取和寫入。您需要的是工作溫度範圍內的基本持久性，如果是汽車級，則為 -40 到 125 攝氏度；如果是工業級，則為 -40 到 85 攝氏度。

And that's the PERSYST family. That includes our one gigabit STT-MRAM that we are shipping to the IBM FlashCore modules. It includes the new product family that we brought to the market last year, the xSPI family that goes from 4 megabit to 128 megabit. And then our Toggle MRAM family, which is basically -- we've been selling since our inception in 2008.

這就是 PERSYST 系列。其中包括我們正在運送到 IBM FlashCore 模組的 1 千兆位元 STT-MRAM。它包括我們去年推向市場的新產品系列，即從 4 兆位元到 128 兆位元的 xSPI 系列。然後是我們的 Toggle MRAM 系列，基本上，我們自 2008 年成立以來一直在銷售。

So all of those products come into the PERSYST family, and they have this characteristics that I was talking about where you have fast data read and writes or data logging, and then unlimited number of read and writes in the operating temperature range, which could be automotive or industrial.

因此，所有這些產品都屬於 PERSYST 系列，它們具有我所說的快速資料讀寫或資料記錄的特性，然後在工作溫度範圍內進行無限數量的讀寫，這可能是汽車或工業。

The Unisys product family is basically, you're looking for not so many reads and writes. You're looking for, let's say 1 million to 10 million or 100 million read and writes only. And you're looking for, again, fast read writes, that is the built-in advantage of SST-MRAM compared to other technologies out there that include, NOR Flash or NAND flash or even resistive RAM.

Unisys 產品系列基本上是，您需要的不是太多的讀取和寫入。假設您正在尋找 100 萬到 1000 萬或 1 億個唯讀和寫入。您再次需要的是快速讀寫，這是 SST-MRAM 與其他技術（包括 NOR 快閃記憶體或 NAND 快閃記憶體甚至電阻式 RAM）相比的內在優勢。

So that's the Unisys family. That includes the triplets that I was talking about during my script. And it also includes any SOC type solutions using this type of product.

這就是 Unisys 家族。這包括我在劇本中談論的三胞胎。它還包括使用此類產品的任何 SOC 類型解決方案。

And AgILYST is actually our forward looking, where we are still in a research environment. We are trying to build a fast data logging, zero standby current, and trying to match the speeds of an SRAM. And that's a project that we talked about with Purdue and the e-Commons that we are just getting started. And we are really excited to show what SST-MRAM can do over there.

AgILYST 實際上是我們的前瞻性，我們仍在研究環境中。我們正在嘗試建立快速數據記錄、零待機電流，並嘗試匹配 SRAM 的速度。這是我們與普渡大學和電子共享中心討論的一個項目，我們才剛開始。我們非常高興能夠展示 SST-MRAM 在那裡的功能。

Now, backing up, PERSYST applications we should think of. Industrial automation like PLC computers. You can think of gaming, casino gaming and you can think of medical and aerospace and defense industry.

現在，備份，我們應該想到 PERSYST 應用程式。工業自動化，如 PLC 計算機。你可以想到遊戲、賭場遊戲，也可以想到醫療、航空航太和國防工業。

For the Unisys products, you should think about automotive, FPGA, configuration memory, and also industrial applications as well over there. And with the AgILYST, it's going to be mostly artificial intelligence, AI solutions on the edge. I think I can speak a lot more to it, but I think this is enough for now. So if you have any further questions, we can take it offline maybe, Shadi.

對於 Unisys 產品，您應該考慮汽車、FPGA、配置記憶體以及工業應用。對於 AgILYST，它將主要是人工智慧、邊緣人工智慧解決方案。我想我還可以說很多，但我想現在就夠了。因此，如果您還有任何其他問題，我們可以將其下線，Shadi。

Awesome. Yeah. No, thanks for, thanks for all the color on that.

驚人的。是的。不，謝謝，謝謝所有的顏色。

Sure.

當然。

Richard Shannon, Craig-Hallum.

理查德·香農，克雷格·哈勒姆。

Sanjeev, just one question for me, kind of touching on one of your prepared remarks and something you just mentioned here, but the Purdue program. Maybe you can talk to us a little bit about any more detail that what you expect out of this over what time, any sort of financial contributions to your model over time, etcetera?

桑吉夫，我只想問一個問題，有點觸及您準備好的演講之一以及您剛才在這裡提到的內容，但普渡大學計畫。也許您可以與我們討論更多細節，例如您期望在什麼時間得到什麼，隨著時間的推移對您的模型的任何形式的財務貢獻，等等？

So, as far as the financial contributions over time, Richard, we haven't actually signed the contract with Purdue. So I don't have visibility into that, that I can talk about today. But as far as the output of the product is concerned, I think we're going to learn how to tune our STT-MRAM technology for AI solution.

因此，就隨著時間推移的財務貢獻而言，理查德，我們實際上還沒有與普渡大學簽署合約。所以我對此不了解，今天我可以談談這一點。但就產品的輸出而言，我認為我們將學習如何針對 AI 解決方案調整我們的 STT-MRAM 技術。

And one thing we already know is when you're looking for very fast read and write, and you're looking for much higher signal margin for reads because it's going to be a read intensive application. And then you got to basically build the fabric around it to be able to transfer the data from the edge to the center -- to the data center. I think that is what we're going to learn out of this.

我們已經知道的一件事是，當您尋求非常快速的讀寫時，並且您正在尋找更高的讀取訊號餘裕，因為這將是一個讀取密集型應用程式。然後你必須圍繞它建立基礎架構，以便能夠將資料從邊緣傳輸到中心——資料中心。我認為這就是我們要從中學到的東西。

As far as the product is concerned, I think we'll take the learning and have to go and build a product outside of this project. This project is not going to lead to any product solutions that we can talk about today.

就產品而言，我認為我們將接受學習，並且必須在這個專案之外建立一個產品。這個項目不會產生我們今天可以討論的任何產品解決方案。

Okay, fair enough. That's a great detail. That's all for me. Thank you.

好吧，很公平。這是一個很棒的細節。這就是我的全部。謝謝。

Thank you. I'm showing no further questions at this time. I would now like to turn it back to Sanjeev Aggarwal for closing remarks.

謝謝。我目前沒有提出任何進一步的問題。現在我想請桑吉夫·阿加瓦爾（Sanjeev Aggarwal）發表閉幕詞。

Thank you, operator. And I want to thank everyone again for joining the call today. I also want to take the advantage of those of you that are actually celebrating the Indian festival Diwali. I want to wish you guys all a Happy Diwali. And also for those of you guys that are celebrating Halloween, Happy Halloween, and talk to you at the next earnings call. Thank you.

謝謝你，接線生。我要再次感謝大家今天加入電話會議。我還想利用你們這些正在慶祝印度排燈節的人的優勢。我祝大家排燈節快樂。對於那些正在慶祝萬聖節的人，萬聖節快樂，並在下一次財報電話會議上與您交談。謝謝。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。