Nephros Inc (NEPH) 2023 Q2 法說會逐字稿

Good afternoon and welcome to the Nephros second quarter 2023 financial results conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Kirin Smith. Please go ahead.

下午好，歡迎參加 Nephros 2023 年第二季度財務業績電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想把會議交給 Kirin Smith。請繼續。

Thank you. Good afternoon, everyone. This is Kirin Smith with PCG Advisory. Thank you all for participating in Nephros's second quarter 2023 conference call. Before we begin, I would like to caution that comments made during this conference call by management will contain forward-looking statements regarding the operations and future results of Nephros.

謝謝。大家下午好。我是 PCG Advisory 的 Kirin Smith。感謝大家參加 Nephros 2023 年第二季度電話會議。在我們開始之前，我想提醒大家，管理層在本次電話會議上發表的評論將包含有關 Nephros 運營和未來業績的前瞻性陳述。

I encourage you to review Nephros's filings with the Securities and Exchange Commission, including, without limitation, the Company's Forms 10-K and 10-Q, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.

我鼓勵您查看Nephros 向美國證券交易委員會提交的文件，包括但不限於公司的10-K 和10-Q 表格，其中確定了可能導致實際結果或事件與前言中描述的結果或事件存在重大差異的具體因素看起來的陳述。

Factors that may affect the company's future results include, but are not limited to: Nephros's ability to successfully, timely, and cost-effectively market and sell its products and service offerings; the rate of adoption of its products and services by hospitals and other health care providers; the success of its commercialization efforts; and the effects of existing and new regulatory requirements on Nephros's business; and other economic and competitive factors.

可能影響公司未來業績的因素包括但不限於： Nephros 成功、及時且經濟高效地營銷和銷售其產品和服務的能力；醫院和其他醫療保健提供者對其產品和服務的採用率；其商業化努力的成功；以及現有和新的監管要求對 Nephros 業務的影響；以及其他經濟和競爭因素。

The contents of this conference call contains time-sensitive information that is accurate only as of the date of the live call today, August 9, 2023. The company undertakes no obligation to revise or update any statements to reflect events or circumstances after the date of this conference call, except as required by law.

本次電話會議的內容包含時間敏感信息，僅截至今天（2023 年 8 月 9 日）現場電話會議之日準確。公司不承擔修改或更新任何聲明以反映電話會議日期之後的事件或情況的義務。本次電話會議，法律要求的除外。

I would now like to turn the call over to Nephros's Chief Executive Officer, Robert Banks. Robert, please go ahead.

我現在想將電話轉給 Nephros 首席執行官羅伯特·班克斯 (Robert Banks)。羅伯特，請繼續。

Thank you, Kirin, and good afternoon, everyone. I'm very pleased to welcome you to my first earnings call as Nephros's CEO. I accepted this position based on my recognition of Nephros's potential to be a dynamic, profitable, fast growth company, as well as my confidence in my abilities to help get it there. I'm pleased to report that in the three months I've been with Nephros, none of that has changed.

謝謝 Kirin，大家下午好。我非常高興地歡迎您參加我作為 Nephros 首席執行官的第一次財報電話會議。我接受這個職位是因為我認識到 Nephros 有潛力成為一家充滿活力、盈利、快速增長的公司，並且我對自己實現這一目標的能力充滿信心。我很高興地報告，在我與 Nephros 合作的三個月裡，這一切都沒有改變。

I will begin with a couple of key financial highlights, and follow with a few remarks about the present state of Nephros and our future direction. First, I am happy to report that second-quarter revenues were $3.5 million, a 24% increase over the same period in 2022. Looking at the year-to-date performance, the picture is even more compelling, with a 45% increase over 2022.

我將從幾個關鍵的財務亮點開始，然後對 Nephros 的現狀和我們未來的方向進行一些評論。首先，我很高興地報告第二季度收入為 350 萬美元，比 2022 年同期增長 24%。看看今年迄今為止的業績，情況更加引人注目，比 2022 年同期增長了 45%。 2022 年。

I believe this significant growth demonstrates the positive momentum we have built and the value our solutions bring to the market. The growth is a healthy mix of both our core programmatic business, as well as emergency response.

我相信這一顯著增長體現了我們已經建立的積極勢頭以及我們的解決方案為市場帶來的價值。這種增長是我們核心程序化業務和應急響應的健康結合。

I'm also quite pleased to report that we achieved positive cash flows in Q2 for the second consecutive quarter. We have diligently managed our resources and made strategic investments to support our growth initiatives while simultaneously ensuring financial stability.

我還很高興地報告，我們在第二季度連續第二個季度實現了正現金流。我們努力管理我們的資源並進行戰略投資，以支持我們的增長計劃，同時確保財務穩定。

Another important metric that we monitor is the number of active customer sites, ACS, which increased to 1,427, a 6% year-over-year increase. It is important to note that although the number of sites has increased, our revenue grew four times faster over the same period last year. This indicates that we are expanding within our existing sales base.

我們監控的另一個重要指標是活躍客戶站點 ACS 的數量，該數量增加至 1,427 個，同比增長 6%。值得注意的是，儘管網站數量有所增加，但我們的收入增長速度是去年同期的四倍。這表明我們正在擴大現有的銷售基礎。

This land and expand strategy is a deliberate one. It is a very efficient way to grow by gaining a deeper penetration with the existing customer base, capturing more market share, and building stronger and longer-term relationships.

這一土地擴張戰略是經過深思熟慮的。這是一種非常有效的增長方式，可以更深入地滲透現有客戶群、佔領更多市場份額以及建立更牢固和更長期的關係。

Andy Astor will discuss other financial results in a few minutes. First though, I would briefly describe my findings about the current state of Nephros and highlight some of my early plans to drive the company forward.

安迪·阿斯特將在幾分鐘內討論其他財務業績。首先，我將簡要描述我對 Nephros 當前狀況的發現，並強調我推動公司前進的一些早期計劃。

Over the past year, Nephros transformed itself from stagnant revenue levels and negative cash flows of over $1 million per quarter to strong revenue growth and positive cash flow. In the process, the company reduced its staff by 30%, doubled the size of its sales team, jettisoned two money-losing businesses, and retired all of its debt.

在過去的一年裡，Nephros 從停滯的收入水平和每季度超過 100 萬美元的負現金流轉變為強勁的收入增長和正現金流。在此過程中，該公司裁減了 30% 的員工，將銷售團隊的規模擴大了一倍，放棄了兩項虧損的業務，並償還了所有債務。

We believe these steps have readied the company for fast and consistent profitability in the future. This progress was a result of the hard work and dedication of our talented employees and the mature, experienced leadership team. The company's unwavering commitment to excellence and its ability to adapt in the face of adversity have been instrumental in our journey towards recovery and growth. But we have much more work to do in our drive to build a high-growth, profitable enterprise.

我們相信這些步驟已為公司未來快速、持續的盈利做好了準備。這一進步是我們才華橫溢的員工和成熟、經驗豐富的領導團隊辛勤工作和奉獻的結果。該公司對卓越的堅定承諾及其面對逆境的適應能力對我們的複蘇和增長至關重要。但在打造高增長、盈利企業的過程中，我們還有很多工作要做。

Looking forward, we plan to continue to invest in sales and marketing, both within the company and through our network of strategic partners, who bring extensive relationships in our target markets. A great illustration of this concept is our partnership with Donastar that we announced in Q1, which is making excellent progress in building a sales funnel with national brands in the commercial markets.

展望未來，我們計劃繼續在公司內部以及通過我們的戰略合作夥伴網絡對銷售和營銷進行投資，這些戰略合作夥伴在我們的目標市場中建立了廣泛的關係。這一概念的一個很好的例證是我們在第一季度宣布的與 Donastar 的合作夥伴關係，該合作夥伴關係在商業市場上與民族品牌建立銷售渠道方面取得了巨大進展。

Another strategic focus for growth is converting customers experiencing emergency events, such as Legionella outbreaks, into long-term customers with a contractual relationship to provide ongoing revenue streams. These conversion programs have a great deal of focus within our sales efforts.

增長的另一個戰略重點是將經歷緊急事件（例如軍團菌爆發）的客戶轉變為具有合同關係的長期客戶，以提供持續的收入流。這些轉化計劃是我們銷售工作的重點。

In our core healthcare market, we have diligently evaluated our market position, and identified specific segments where we believe Nephros can truly differentiate itself. By targeting these segments, we could leverage our unique strengths and deliver tailored solutions that meet the specific needs of our customers. This focused approach enables us to maximize our impact and drive sustainable growth.

在我們的核心醫療保健市場中，我們認真評估了我們的市場地位，並確定了我們相信 Nephros 能夠真正脫穎而出的特定細分市場。通過瞄準這些細分市場，我們可以利用我們獨特的優勢，提供量身定制的解決方案，以滿足客戶的特定需求。這種專注的方法使我們能夠最大限度地發揮影響力並推動可持續增長。

We acknowledge that our competitors have larger direct sales forces and greater market penetration, but we firmly believe that our superior products and our focused sales techniques will be catalysts for success. Our commitment to delivering high-quality solutions with market-leading products is unwavering. We are confident that our differentiated offering will resonate with customers and allow us to continue to gain market share.

我們承認我們的競爭對手擁有更強大的直銷隊伍和更高的市場滲透率，但我們堅信我們卓越的產品和專注的銷售技巧將成為成功的催化劑。我們堅定不移地致力於通過市場領先的產品提供高質量的解決方案。我們相信，我們的差異化產品將引起客戶的共鳴，並使我們能夠繼續獲得市場份額。

I will now turn the call over to Andy Astor, our CFO. Andy, please go ahead.

我現在將把電話轉給我們的首席財務官安迪·阿斯特 (Andy Astor)。安迪，請繼續。

Thanks, Robert. I will now provide a closer look at Nephros's financial performance in the second quarter. We reported second-quarter net revenue of $3.5 million, a 24% increase over the corresponding period in 2022. Also, as Robert mentioned, revenues for the first six months of the year are up by 45%.

謝謝，羅伯特。現在我將詳細介紹 Nephros 第二季度的財務業績。我們報告第二季度淨收入為 350 萬美元，比 2022 年同期增長 24%。此外，正如羅伯特提到的，今年前六個月的收入增長了 45%。

Net loss from continuing operations for the quarter was $0.4 million, compared to $0.7 million in the same period last year. Adjusted EBITDA in the quarter was negative $0.2 million, compared with negative $0.4 million during the same period last year. Gross margins in the quarter were 59%, compared with 49% in 2022, a 20% increase year over year.

本季度持續經營業務淨虧損為 40 萬美元，而去年同期為 70 萬美元。本季度調整後 EBITDA 為負 20 萬美元，而去年同期為負 40 萬美元。該季度毛利率為 59%，相比 2022 年的 49%，同比增長 20%。

Research and development expenses in the quarter were $0.2 million, compared with $0.3 million for the same quarter last year. And sales, general and administrative expenses in the quarter were $2.2 million, compared with 1.9 million for the corresponding period in 2022.

本季度的研發費用為 20 萬美元，而去年同期為 30 萬美元。該季度的銷售、一般和管理費用為 220 萬美元，而 2022 年同期為 190 萬美元。

Net cash provided by operating activities -- that is positive cash flow, was $0.5 million for the six months ended June 30, 2023, compared to net cash used -- that is negative, in operating activities of approximately $2.9 million for the six months ended June 30, 2022, an improvement of $3.4 million. Our cash balance on June 30, 2023 increased to $4.1 million from $3.8 million as of March 31, 2023.

截至2023 年6 月30 日止六個月，經營活動提供的淨現金（即正現金流）為50 萬美元，而截至2023 年6 月30 日止六個月的經營活動所使用的淨現金為負，即約為290 萬美元2022 年 6 月 30 日，增加 340 萬美元。截至 2023 年 6 月 30 日，我們的現金餘額從 2023 年 3 月 31 日的 380 萬美元增加到 410 萬美元。

Please refer to today's press release for more details about the calculation of adjusted EBITDA, and its reconciliation to GAAP net income or loss. Additional information about our results will be found in our filing on Form 10-Q, which has just been filed in the last few minutes. And I will now turn the call back to Robert for some closing remarks. Robert, please go ahead.

請參閱今天的新聞稿，了解有關調整後 EBITDA 計算及其與 GAAP 淨收入或虧損的調節的更多詳細信息。有關我們結果的更多信息可在我們在過去幾分鐘內剛剛提交的 10-Q 表格中找到。現在我將把電話轉回給羅伯特，讓他發表一些結束語。羅伯特，請繼續。

Thank you, Andy. In conclusion, the second quarter has been a period of significant growth and progress for Nephros.

謝謝你，安迪。總之，第二季度是 Nephros 顯著增長和進步的時期。

With a 24% increase in net revenue over the previous year, a 45% year-to-date revenue increase, and positive cash flow results, we believe we are well-positioned for success. With a larger sales team who will bolster our relationships, with our focus on our core strengths, we are winning in our targeted market segments. And with our renewed focus on distribution, we are able to increase the penetration of our superior products across larger market segments. These strategic moves and my drive towards accelerating growth give me a great confidence in our ability to sustain this momentum and drive the growth you expect from us.

淨收入比上年增長 24%，年初至今收入增長 45%，現金流為正，我們相信我們已經做好了成功的準備。憑藉更大的銷售團隊來加強我們的關係，並專注於我們的核心優勢，我們正在目標細分市場中獲勝。通過重新關注分銷，我們能夠提高優質產品在更大細分市場的滲透率。這些戰略舉措和我對加速增長的推動使我對我們維持這一勢頭並推動您期望的增長的能力充滿信心。

Thank you for your continued support and confidence in Nephros. We look forward to updating you on our future achievements and continuing to create long-term value for our investors and stakeholders. Operator, please open the call for questions now. Thank you.

感謝您一直以來對 Nephros 的支持和信任。我們期待向您介紹我們未來取得的成就，並繼續為我們的投資者和利益相關者創造長期價值。接線員，請立即撥打電話提問。謝謝。

We will now begin the question-and-answer session. (Operator Instructions) And our first question comes from Thomas McGovern of Maxim Group. Please go ahead.

我們現在開始問答環節。 （操作員說明）我們的第一個問題來自馬克西姆集團的托馬斯·麥戈文。請繼續。

Hey guys, thanks for taking my question. Congrats on the quarter. So just to get into it, you guys mentioned that the revenue came from a combination of some of your core sales, as well as emergency sales. Just wondering if you would be willing to give us a breakdown of what percent came from emergency and what percent came from those recurring core business.

嘿伙計們，謝謝你提出我的問題。恭喜本季度。首先，你們提到收入來自一些核心銷售和緊急銷售的組合。只是想知道您是否願意向我們詳細說明有多少百分比來自緊急情況，有多少百分比來自經常性核心業務。

And then building off of that, you guys mentioned that one of your focuses has been converting those emergency sales into recurring clients. So I was just wondering, maybe high level, approximately how many of those have been converted, and how you guys go about doing that? Thank you.

然後在此基礎上，你們提到你們的重點之一是將這些緊急銷售轉化為經常性客戶。所以我只是想知道，也許是高層，大約有多少人已經被轉換，你們是如何做到這一點的？謝謝。

Sure, this is Andy. I'll answer your first part of your question, if that's okay, Robert, and then pass it over to you for the second half.

當然，這是安迪。如果可以的話，羅伯特，我將回答你問題的第一部分，然後將後半部分交給你。

Excellent.

出色的。

We don't describe the precise percentages or proportions of emergency versus programmatic revenue, we never have. We do -- I will tell you that over the long term, it averages about 15%. And when it's exceptionally large, we often will say we did have a big boost, like we did that in Q1. But the fact that we're silent on it means that it's within some reasonable distance of normal. And so that's all we'll say on that. I'll turn it over to Robert for the second part of the question.

我們沒有描述緊急收入與計劃收入的精確百分比或比例，我們從來沒有描述過。我們確實如此——我會告訴你，從長遠來看，平均約為 15%。當它特別大時，我們經常會說我們確實有很大的推動，就像我們在第一季度所做的那樣。但事實上我們對此保持沉默意味著它與正常情況有一定的合理距離。這就是我們要說的全部內容。我將把問題的第二部分交給羅伯特。

Yes, thank you, Andy, and thank you for the question. And you said it exactly correctly. By sharing best practices in ways that we have been successful in converting that emergency response to programmatic business, we're getting the entire team up to speed on how to do that.

是的，謝謝你，安迪，也謝謝你提出這個問題。你說得完全正確。通過分享我們成功地將緊急響應轉變為程序化業務的最佳實踐，我們正在讓整個團隊加快如何做到這一點。

And typically, when you have an emergency response, you order a fair amount of supplies, resources, and items to mitigate the situation. And those last for some time. So when looking back just one quarter, we still are working off of that emergency response supply base.

通常，當您做出緊急響應時，您會訂購相當數量的物資、資源和物品來緩解情況。這些會持續一段時間。因此，回顧一個季度，我們仍在利用應急供應基地進行工作。

And then we are looking forward to converting those into long-term contractual businesses. It's a great way for us to grow. We have the established relationship, and it has been, in my eyes, fairly successful so far in the concentrated efforts in those regards.

然後我們期待將這些業務轉變為長期合同業務。這是我們成長的好方法。我們已經建立了關係，在我看來，迄今為止在這些方面的集中努力相當成功。

So look forward to some more growth resulting from that part of our business. Thank you very much.

因此，期待我們這部分業務帶來更多增長。非常感謝。

Great. I appreciate you guys taking my question. I'll hop back in the queue.

偉大的。我很感謝你們回答我的問題。我會跳回到隊列中。

Okay. Thank you.

好的。謝謝。

(Operator Instructions) And our next question will come from Robert Smith of Center for Performing Investing (sic - "Center of Performance Investing"). Please go ahead.

（操作員說明）我們的下一個問題將來自績效投資中心（原文如此，“績效投資中心”）的羅伯特·史密斯。請繼續。

Hi, good afternoon and thanks for taking my question. Robert, what is high growth in your terminology? And do you have some targets that you can share with us? Any kind of three- or five-year plan?

您好，下午好，感謝您提出我的問題。羅伯特，你的術語中高增長是什麼？您有一些目標可以與我們分享嗎？有什麼三年或五年計劃嗎？

Yeah, thank you for the question. And it's -- when I look at high growth, I can't project what that's going to mean or what that's going to equal in [Nephros speak]. I can look backwards to what I've done in the past in prior roles. And I do expect growth to continue along those lines. And where we are today, what you're seeing reported in the results released publicly just now, I would constitute that as high growth.

是的，謝謝你的提問。當我看到高增長時，我無法預測這意味著什麼，或者在[腎病說話]中這意味著什麼。我可以回顧過去在之前的角色中所做的事情。我確實預計增長將繼續沿著這些方向發展。我們今天所處的位置，您在剛剛公開發布的結果中看到的情況，我將其視為高增長。

Alright. That's reasonable. And so you're spending R&D at about a $800,000 annual rate. Where are those dollars going now? I mean that's the lifeblood of the future, isn't that -- I mean.

好吧。這是合理的。因此，您每年的研發支出約為 800,000 美元。這些美元現在去哪兒了？我的意思是，這是未來的命脈，不是嗎——我的意思是。

Yes, when we have a company such as ours in this space with the clearances that we have required, there's a number of regulations that come up that we have to maintain a certain amount of effort to keep up with those and keep our products compliant. So a good portion of the spend goes along that as well. And Andy, if you can speak historically on where some of those spends have gone, that may give some more color to the answer to that question.

是的，當我們這樣的公司在這個領域擁有我們所要求的許可時，就會出現許多法規，我們必須保持一定的努力來跟上這些法規並保持我們的產品合規。因此，很大一部分支出也隨之而來。安迪，如果你能從歷史角度談談其中一些支出的去向，這可能會給這個問題的答案帶來更多色彩。

Sure, I'll be happy to. Robert, nice to hear your voice, thanks for the question. We're a relatively small company, we're about 30 people right now. And where we -- and as you know, we've jettisoned a couple of areas of the company that were -- where the revenue growth just wasn't coming as quick as we wanted it to.

當然，我很樂意。羅伯特，很高興聽到你的聲音，謝謝你的提問。我們是一家相對較小的公司，現在大約有30人。正如你所知，我們已經放棄了公司的幾個領域，這些領域的收入增長速度沒有我們希望的那麼快。

So what's left is a company that's -- just -- all I can use is last year's revenue: we're running at about a 10% R&D -- somewhere between 8% and 12% of R&D expense. And I think that's appropriate.

所以剩下的就是一家公司——我能用的就是去年的收入：我們的研發費用約為 10%——研發費用的 8% 到 12% 之間。我認為這是合適的。

To say it's the lifeblood of the company is certainly true, but that doesn't mean that we should spend too quickly. And I think that we're in a phase right now where cash flow positivity is the most important thing, and a march towards profitability, supported by revenue growth and careful cost management.

說這是公司的命脈確實沒錯，但這並不意味著我們應該花得太快。我認為我們現在正處於這樣一個階段：現金流量積極性是最重要的，在收入增長和謹慎的成本管理的支持下，我們正在向盈利邁進。

And so you know, what we're spending the R&D budget on is filters, filtration systems, which is what we do for a living. And I think that the number's quite about where I'd like to see it.

所以你知道，我們將研發預算花在過濾器、過濾系統上，這是我們的謀生之道。我認為這個數字正是我希望看到的。

Alright, thanks. How is the Chipotle relationship going?

好的，謝謝。和Chipotle的關係怎麼樣了？

Terrific.

了不起。

Okay, well, that's a nice -- that's a great word. I love to hear it. (laughter) Great. Thanks very much. Good luck.

好吧，這很好——這是一個很棒的詞。我喜歡聽。 （笑聲）太棒了。非常感謝。祝你好運。

Take care.

小心。

Thank you.

謝謝。

The next question is from Ralph Weil of R. Weil Investment Management. Please go ahead.

下一個問題來自 R. Weil Investment Management 的 Ralph Weil。請繼續。

Good to talk to you, and good quarter. You have a long-term relationship with Medica, where there's some end of it, I think, in a few years. Could you comment about the relationship, and what your restrictions are or what your goals are, and what you're doing to perhaps extend that, so that we can just have an easier time going forward?

很高興與你交談，祝你季度愉快。你們與 Medica 有著長期的合作關係，我認為幾年後這種關係就會結束。您能否評論一下這種關係，以及您的限制是什麼或您的目標是什麼，以及您正在做什麼來擴展這種關係，以便我們可以更輕鬆地前進？

Yeah, great question, Ralph. If you'd like, I'm going to answer the first part of that, the qualitative part. And to whatever extent, where possible, I'm going to ask Andy to fill in the quantitative part.

是的，好問題，拉爾夫。如果您願意，我將回答第一部分，即定性部分。無論如何，在可能的情況下，我都會請安迪填寫定量部分。

When I first started, and I examined our supplier base and where we get our materials for critical and key components, this was one which got most of my attention. And I'm pleased to say after visiting with them and building a relationship with their current CEO, and also their president, I feel more comfortable than ever that we have a very solid partnership. And I have no doubt that we will continue that. And we both have mutual interests going forward.

當我第一次開始時，我檢查了我們的供應商基礎以及我們從哪裡獲取關鍵和關鍵部件的材料，這是最引起我注意的一個。我很高興地說，在拜訪了他們並與他們現任首席執行官和總裁建立了關係之後，我比以往任何時候都更加放心，我們擁有非常牢固的合作夥伴關係。我毫不懷疑我們會繼續這樣做。我們雙方都有共同的利益。

So all of my initial concerns are no longer there. And this is a very healthy and happy situation to be in. And Andy, if you may, comment on any of the dates or the other parts of Ralph's question that we might be working on as well.

所以我最初的所有顧慮都不再存在了。這是一個非常健康和快樂的情況。安迪，如果可以的話，請對我們可能正在處理的拉爾夫問題的任何日期或其他部分發表評論。

Sure, happy to. Ralph, hello?

當然，很高興。拉爾夫，你好？

Yes!

是的！

We are -- (laughter) you are correct. The Medica relationship, as it's currently written, the agreement expires on 12/31/2025. As Robert noted, he and I made a trip to Medica just a couple of weeks ago, and had an excellent set of meetings with, frankly, the whole leadership team there. And we are quite confident that that will be extended. And while I can't say more than that, I'm not losing any sleep over it. And we'll have more to say on it, probably next quarter or the quarter after that.

我們是——（笑聲）你是對的。 Medica 關係，按照目前的書面規定，該協議將於 2025 年 12 月 31 日到期。正如羅伯特指出的那樣，他和我幾週前去了一次梅迪卡，坦率地說，與那裡的整個領導團隊進行了一系列精彩的會議。我們非常有信心這一期限將會延長。雖然我不能說更多，但我並沒有因此而失眠。我們可能會在下個季度或之後的季度對此進行更多討論。

Okay, thanks for that. And can I just elaborate a little on my old friend Bob Smith's question regarding Chipotle.

好的，謝謝。我能否詳細說明一下我的老朋友鮑勃·史密斯關於 Chipotle 的問題。

(laughter)

（笑聲）

You say that it's been terrific. And yes, you've been into Chipotle now for quite a number of months, and I'm thrilled to hear it's terrific. And I hear what you're saying that your relationship with Donastar is great. And I also realize that in the past, you said some things about expecting commercial business, and it didn't come, so you're gun-shy. But can you just elaborate a little bit on what we might expect from the commercial end?

你說那已經很棒了。是的，你已經喜歡 Chipotle 好幾個月了，我很高興聽到它很棒。我聽到您說您與 Donastar 的關係非常好。我也意識到，過去你說過一些關於期待商業業務的事情，但它沒有實現，所以你很害羞。但您能否詳細說明一下我們對商業端的期望？

Sure, I'd be happy to. So in my background, working with partners and developing that channel to market is somewhat of a specialty of mine. So I fully engaged with the leadership within that company and developed a pipeline which is very, very healthy.

當然，我很樂意。因此，在我的背景下，與合作夥伴合作並開發市場渠道在某種程度上是我的專長。因此，我與該公司的領導層充分合作，開發了一條非常非常健康的渠道。

The pipeline is key because you expect a certain amount of wins from that pipeline, based on your effectiveness of closing deals. And what started out as somewhat anemic of a pipeline is now extremely healthy and will support the growth targets that we have going forward. And we are starting to see some very good traction in that regard.

渠道很關鍵，因為您期望根據完成交易的有效性從該渠道中獲得一定數量的勝利。最初的渠道有些貧乏，現在非常健康，並將支持我們未來的增長目標。我們開始在這方面看到一些非常好的牽引力。

When we are looking at the commercial space, it's somewhat of a growth issue, where we started to expand very fast and had to ramp up our supply chain to keep up with the growth that we were seeing. So when Andy says terrific and good, he's kind of hinting at those words. We are seeing the growth that we desired, and it's on a track that is quite pleasing in my regards.

當我們著眼於商業領域時，這在某種程度上是一個增長問題，我們開始快速擴張，並且必須加強我們的供應鏈以跟上我們所看到的增長。因此，當安迪說“棒極了”和“好”時，他就在暗示這些詞。我們正在看到我們所期望的增長，而且它的發展軌道在我看來是相當令人滿意的。

But to that, we will see what happens and report more on that in the future. But my expectations, know that we are going to continue on a path that is good. So aside from giving you more specifics than that, I hope that gives a little bit of color and flavor to the relationship, where it stands today.

但對此，我們將看看會發生什麼，並在未來對此進行更多報導。但我的期望是，我們將繼續走在一條好的道路上。因此，除了向您提供更多具體信息之外，我希望這能為目前的關係增添一點色彩和風味。

Okay. Thank you.

好的。謝謝。

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

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