O2micro International Ltd (OIIM) 2021 Q2 法說會逐字稿

Ladies and gentlemen, good morning, and thank you for joining today to discuss O2's financial results for the second quarter of fiscal year '21. If you would like a copy of the press we issued earnings please call Daniel Meyberg (408) 987-5920 extension 8882.

女士們、先生們，早安，感謝你們今天參加討論 O2 '21 財年第二季度的財務業績。如果您想要一份我們發布的收益報告，請致電 Daniel Meyberg (408) 987-5920 分機號碼 8882。

We'll e-mail you. It is also posted on the O2 website at www.o2micro.com under the heading Investors. There will be a replay available through August 14, 2021, 9:00 a.m. Pacific Time -- or by the O2Micro website under the heading Investors. Following the presentation by management, the conference will be open for questions and answers as time permits. Gentlemen, you may begin.

我們會寄電子郵件給您。它也發佈在 O2 網站 www.o2micro.com 的「投資者」標題下。重播截止時間為太平洋時間 2021 年 8 月 14 日上午 9:00，或透過 O2Micro 網站的「投資者」標題進行重播。管理階層介紹完畢後，會議將在時間允許的情況下開放提問和回答。先生們，你們可以開始了。

Thank you. Good morning, everyone, and thank you for joining O2Micro's financial results conference call for the second quarter of 2021, ending June 30, 2021. This is Daniel Meyberg, Corporate Communications for O2Micro.

謝謝。大家早安，感謝您參加 O2Micro 於 2021 年 6 月 30 日結束的 2021 年第二季財務業績電話會議。我是 O2Micro 企業傳播部 Daniel Meyberg。

I'd like to remind listeners that the discussion for today's business outlook contains forward-looking statements. Statements made in this release that are not historical fact are forward-looking statements within the meanings of the Federal Securities Laws. Actual results may differ materially due to numerous risk factors. Such risk factors are enumerated in the company's 20-F annual filings, our annual reports and other documents filed with the SEC from time to time.

我想提醒聽眾，今天有關商業前景的討論包含前瞻性陳述。本新聞稿中的非歷史事實陳述屬於聯邦證券法意義內的前瞻性陳述。由於眾多風險因素，實際結果可能存在重大差異。本公司的 20-F 年度文件、我們的年度報告以及不時向 SEC 提交的其他文件中都列舉了此類風險因素。

Listeners are referred to the O2Micro earnings press release and the documents filed with the SEC to understand these forward-looking statements and the associated risk factors. These statements made herein are dated information. The company assumes no responsibility to provide updates to this information.

聽眾可參閱 O2Micro 的獲利新聞稿和向 SEC 提交的文件，以了解這些前瞻性陳述和相關風險因素。本文中的這些陳述是過時的資訊。本公司不承擔提供此資訊更新的責任。

With me today are Perry Kuo, CFO and Director; Jim Keim, Head of Marketing & Sales and Director; and Sterling Du, O2's Founder, CEO and Chairman. After the prepared remarks from these gentlemen, the floor will be opened for your questions.

今天和我在一起的有財務長兼董事 Perry Kuo； Jim Keim，行銷與銷售主管兼總監；以及 O2 創辦人、執行長兼董事長杜斯特林 (Sterling Du)。在這些先生們準備好發言後，將開始提問。

At this point, I would like to introduce Perry Kuo, CFO of O2Micro for a discussion of the financial highlights of the second quarter of fiscal year 2021, ending June 30, 2021. Perry?

在此，我想介紹凹凸科技首席財務官郭佩里 (Perry Kuo)，討論截至 2021 年 6 月 30 日的 2021 財年第二季度的財務亮點。佩里？

Thank you, Dan. We will now review our financial results for Q2, 2021. Please note that financial results will be presented on a GAAP basis unless we designate otherwise. The non-GAAP result excludes stock-based compensation expense, onetime charges, nonrecurring gains and losses. Our full GAAP results are available in our press release that was issued earlier today.

謝謝你，丹。我們現在將審查 2021 年第二季的財務業績。請注意，除非我們另有指定，否則財務業績將按照 GAAP 基礎呈現。非公認會計原則的結果不包括以股票為基礎的補償費用、一次性費用、非經常性損益。我們完整的 GAAP 業績可在今天早些時候發布的新聞稿中找到。

GAAP revenue in the second quarter of 2021 was $26.2 million. GAAP net income in the second quarter of 2021 was $3.2 million. If we exclude stock-based compensation of $442,000, the non-GAAP net income will be $3.6 million.

2021 年第二季 GAAP 營收為 2,620 萬美元。 2021 年第二季 GAAP 淨利為 320 萬美元。如果我們排除 442,000 美元的股票薪酬，非 GAAP 淨利潤將為 360 萬美元。

GAAP net income per fully diluted ADS in the second quarter of 2021 was $0.10. Non-GAAP net income per fully diluted ADS was $0.12. Gross margin was 51.5% in Q2. The gross margin reflects the current revenue level and product mix.

2021 年第二季以美國通用會計準則 (GAAP) 計算的每份完全稀釋美國存託股淨利為 0.10 美元。非 GAAP 完全攤薄後每股美國存託股淨利為 0.12 美元。第二季毛利率為 51.5%。毛利率反映了目前的收入水準和產品組合。

R&D expense was $4.6 million or 17.7% of revenue. This amount excludes stock-based compensation expense of $105,000. SG&A expense was $5.1 million or 19.6% of revenue. This amount excludes stock-based compensation expense of $337,000.

研發費用為 460 萬美元，佔營收的 17.7%。該金額不包括 105,000 美元的股票補償費用。 SG&A 費用為 510 萬美元，佔營收的 19.6%。該金額不包括 337,000 美元的股票補償費用。

The non-operating income was $133,000. Income tax was $253,000 in the second quarter and is mainly based on the estimated effective tax rate of each taxable location. In Q2 2021, there was no stock repurchase.

營業外收入為133,000美元。第二季所得稅為253,000美元，主要基於每個應稅地點的估計有效稅率。 2021年第二季度，沒有進行股票回購。

Q2 2021, revenue by end market breaks down into the following percentages. Industrial was 61% to 63% of revenue. Consumer was 35% to 37% of revenue. Computer was 1.123% of revenue. Communications was almost 0.

2021 年第二季度，終端市場收入細分為以下百分比。工業佔收入的 61% 至 63%。消費者佔收入的 35% 至 37%。計算機佔收入的1.123%。通訊幾乎為零。

At this moment, I would like to provide some additional information. O2Micro finished the second quarter with $47.4 million in unrestricted cash and short term investment. This represents cash and cash equivalent of $1.66 per ADS. In addition, O2Micro has no debt.

此時此刻，我想提供一些補充資料。 O2Micro 在第二季末擁有 4,740 萬美元的非限制性現金和短期投資。這意味著每份 ADS 為 1.66 美元的現金和現金等價物。此外，凹凸科技沒有債務。

Accounts receivable at the end of Q2 was $16.6 million. Our DSO is 58 days. DSO is less than 60 days mainly from account mix. Inventory was $16 million at the end of the second quarter. This represents 109 days of inventory, and the inventory turnover was 3.3x in Q2.

第二季末的應收帳款為 1,660 萬美元。我們的 DSO 是 58 天。 DSO 不到 60 天，主要來自帳戶組合。第二季末庫存為 1600 萬美元。這意味著庫存為 109 天，第二季庫存週轉率為 3.3 倍。

Net cash generated from operating activities in the second quarter was about $3.6 million. Capital expenditure was about $3.5 million in the second quarter for R&D and IT equipment. Depreciation and amortization was $1 million in Q2. At the end of the second quarter of 2021, O2Micro had 341 employees, 59% of which are engineers.

第二季經營活動產生的淨現金約為360萬美元。第二季研發和IT設備資本支出約350萬美元。第二季的折舊和攤提為 100 萬美元。截至2021年第二季末，凹凸科技擁有341名員工，其中工程師佔59%。

Based on current market situation and the base updated managerial rolling forecast, the company has the following guidance for Q3 2021.

根據目前的市場狀況和基本更新的管理滾動預測，公司對 2021 年第三季有以下指引。

Net revenue are expected to be $26.2 to $27.5 million or flat 5% up from Q2 2021. Product gross margin is expected to be in the range of 50% to 52%. And R&D expenses, excluding stock-based compensation, are expected to be in the range of $4.7 million or $5.2 million.

淨收入預計為 26.2 至 2,750 萬美元，較 2021 年第二季持平 5%。產品毛利率預計在 50% 至 52% 之間。研發費用（不含股票薪酬）預計在 470 萬美元至 520 萬美元之間。

SG&A expenses, excluding stock-based compensation, are expected to be in the range of $5 million to $5.5 million. Stock-based compensation should be in the range of $400,000 to $500,000. Non-operating income expected to be in the range of $150,000 to $250,000, excluding foreign exchange gain or loss. Income tax expense is expected to be in the range of $200,000 to $300,000.

SG&A 費用（不含股票薪酬）預計在 500 萬至 550 萬美元之間。以股票為基礎的薪酬應在 400,000 美元至 500,000 美元之間。不計外匯損益，營業外收入預計在 150,000 美元至 250,000 美元之間。所得稅費用預計在 20 萬美元至 30 萬美元之間。

The goal of our management team and the Board of Directors is to maximize shareholders' value. We have accomplished this by taking the necessary steps which, including managing operating expenses and monetizing asset on the balance sheet.

我們管理團隊和董事會的目標是股東價值最大化。我們透過採取必要的措施來實現這一目標，包括管理營運費用和將資產負債表上的資產貨幣化。

In regards to our share repurchase program, we have been active in the program historically. Since 2002, we have repurchased over 20.3 million ADS shares for $101.3 million. As of the end of Q2, we have -- we had $7.6 million remaining in our share buyback authorization.

關於我們的股票回購計劃，我們歷來一直積極參與該計劃。自 2002 年以來，我們已以 1.013 億美元的價格回購了超過 2,030 萬股 A​​DS 股票。截至第二季末，我們的股票回購授權還剩 760 萬美元。

There are still many dynamic factors associated in the business development. We will carefully plan and execute to target revenue growth and maintain gross margin in Q3 2021.

業務發展仍存在許多相關的動態因素。我們將仔細規劃和執行，以實現 2021 年第三季的營收成長目標並維持毛利率。

Jim and Sterling later will talk more about our focused efforts and investment for revenue growth with major account, product expansion, second source development and test facilities for more supply to ensure deliveries.

吉姆和斯特林稍後將更多地談論我們透過主要客戶、產品擴展、第二來源開發和測試設施來實現收入成長的重點努力和投資，以確保交付更多的供應。

We also monitor the supply chains tightly and have added timely, both work-in-process level and inventory to support the dynamic demand from accounts in multiple end markets.

我們也嚴格監控供應鏈，並及時增加在製品水準和庫存，以支援多個終端市場客戶的動態需求。

Given the uncertain and increasing demand and macro environment, we are continuously investing R&D, patent filing, expanding our supply chains with more complete second sourcing suppliers, testing capabilities of company's product and capacity. And we always watch the expenses carefully and continue to manage costs as needed. Although, we believe we have aligned current cost based on current and anticipated revenue levels.

鑑於需求和宏觀環境的不確定性和不斷增長，我們不斷投入研發、專利申請、透過更完整的第二採購供應商擴大我們的供應鏈、公司產品和產能的測試能力。我們始終仔細觀察費用並繼續根據需要管理成本。儘管如此，我們相信我們已經根據當前和預期的收入水平調整了當前成本。

Returns to shareholders are very much on our minds and will continue to be a focus in the future. We will provide update to the additional measures to enhance shareholder value throughout this year. I would like to thank everyone for participating and turn the call over to Jim Keim to talk more about our business.

股東回報是我們非常關心的問題，並將繼續成為未來的重點。我們將在今年提供有關提高股東價值的額外措施的最新資訊。我要感謝大家的參與，並將電話轉給吉姆凱姆 (Jim Keim)，詳細討論我們的業務。

Thank you, Perry. Good morning, everyone. Let me highlight our company's revenue growth over the past 2 years. Q2 2021 was 51% growth over Q2 of 2020. And Q2 2021 was 83% growth over Q2 of 2019.

謝謝你，佩里。大家，早安。讓我重點介紹一下我們公司過去兩年的收入成長。 2021 年第二季比 2020 年第二季成長 51%。2021 年第二季比 2019 年第二季成長 83%。

Let me provide a brief explanation of what is driving this growth, as well as an overview of our company's strategic positioning, market focus and ongoing growth opportunities.

讓我簡要解釋一下推動這一成長的因素，並概述我們公司的策略定位、市場重點和持續的成長機會。

As explained in prior quarterly updates, we did benefit in the past year from the COVID-19 crisis due to increased demand for mobility-based products. As more people faced stay-at-home situations, this resulted in rapid growth in demand for monitors, TVs, tablets and notebooks that use our lighting technology.

正如先前季度更新中所解釋的那樣，由於對基於行動的產品的需求增加，我們在過去一年確實從 COVID-19 危機中受益。隨著越來越多的人面臨待在家裡的情況，這導致對使用我們的照明技術的顯示器、電視、平板電腦和筆記型電腦的需求快速增長。

Battery management products used in vacuum cleaners, power tools, garden tools and e-bikes also enjoyed an acceleration in growth during the pandemic.

吸塵器、電動工具、園藝工具和電動自行車中使用的電池管理產品在疫情期間也出現了加速成長。

However, this does not explain why we were well positioned to take advantage of these growth opportunities and why we believe our sales prospects continue to be excellent going forward.

然而，這並不能解釋為什麼我們能夠很好地利用這些成長機會，也不能解釋為什麼我們相信我們的銷售前景繼續保持良好。

For a number of years, O2Micro invested heavily in R&D, far more than the typical company of our size. We did this for several reasons. First, to diversify from our historic notebook market, which one-time was 100% of our business; and second, to broaden our product scope into rapidly evolving lithium-ion battery management business as well as high-end lighting devices for new market areas.

多年來，凹凸科技在研發方面投入大量資金，遠遠超過我們這個規模的典型公司。我們這樣做有幾個原因。首先，從我們歷史悠久的筆記型電腦市場多元化，該市場曾經是我們業務的 100%；其次，將我們的產品範圍擴大到快速發展的鋰離子電池管理業務以及針對新市場領域的高階照明設備。

Our major R&D effort paid off in the growth that is now being evidenced. This has included growing our battery management business by a compounded rate of 30% a year for the past 5 years.

我們的主要研發努力在現在的成長中得到了回報。其中包括過去 5 年我們的電池管理業務以每年 30% 的複合成長率成長。

While 30% is very small revenue base, at first does not show significant results, investors now notice the escalating revenues from the compounding of this growth. Indeed, 30% of a significant revenue base is very noticeable.

雖然 30% 的收入基礎很小，起初並沒有顯示出顯著的結果，但投資者現在註意到這種複合成長帶來的收入不斷上升。事實上，30% 的重要收入基礎非常引人注目。

As Sterling will mention later, we continue to see the markets for lithium-ion batteries expanding very rapidly, and we believe we are well positioned to continue to dynamically grow our battery management business.

正如斯特林稍後將提到的，我們繼續看到鋰離子電池市場快速擴張，我們相信我們有能力繼續動態發展我們的電池管理業務。

Our lighting business has also evolved with new high-end products and has enjoyed significant growth as TVs and monitors have grown, both in size and complexity. While we once offered a small IC to light a miniature CCFL tube for notebook backlighting, we are now a market leader in complex ICs to drive an ever-growing number of LEDs and advanced display systems across a number of markets.

我們的照明業務也隨著新的高階產品的發展而發展，並隨著電視和顯示器尺寸和複雜性的成長而顯著成長。雖然我們曾經提供小型 IC 來點亮筆記型電腦背光的微型 CCFL 燈管，但現在我們已成為複雜 IC 的市場領導者，可驅動多個市場中不斷增長的 LED 數量和先進顯示系統。

In both lighting and battery management, we have dynamically expanded our business base into industrial applications and are also focusing increased efforts on the huge automotive market. This expansion in both revenue and complexity goes directly back to our major R&D efforts that produced not just products, but patented technology that has enabled us to attract major customers.

在照明和電池管理方面，我們已將業務基礎動態擴展到工業應用，並加強開拓龐大的汽車市場。收入和複雜性的成長直接歸功於我們的主要研發工作，這些工作不僅生產產品，還生產使我們能夠吸引主要客戶的專利技術。

This revenue expansion is also due to a successful effort to strategically position ourselves with major market-leading OEMs. Unlike many semiconductor companies that try to sell to thousands of customers, we focused on a select list of market-leading OEMs that can use our advanced technology and enable high-growth potential for our company.

這種收入的成長也是由於我們成功地與主要市場領先的原始設備製造商進行了策略定位。與許多試圖向數千名客戶銷售產品的半導體公司不同，我們專注於精選的市場領先 OEM 廠商，這些廠商可以使用我們的先進技術並為我們公司帶來高成長潛力。

In fact, the major customers we have already penetrated can kick -- carry our company to much higher revenues. Major OEMs that already use our products in battery management include Bissell, Black & Decker, Bosch, Dyson, Electrolux, Hitachi, Lexy, LG, Makita, Murata, Panasonic, Philips, Samsung, Shark, TTI and Toshiba.

事實上，我們已經滲透的主要客戶可以使我們公司獲得更高的收入。已在電池管理中使用我們產品的主要 OEM 包括 Bissell、Black & Decker、Bosch、Dyson、Electrolux、Hitachi、Lexy、LG、Makita、Murata、Panasonic、Philips、Samsung、Shark、TTI 和 Toshiba。

Major OEMs that use our lighting products include BOE, Dell, HP, Hisense, Honda, Hon Hai, Foxconn, Lenovo, Panasonic, Samsung, Sharp, Skyworks, TCL and Toyota. The products we deliver into these OEM systems are based on our unique technology, backed by a large intellectual property patent portfolio, much larger than most companies our size.

使用我們照明產品的主要OEM包括京東方、戴爾、惠普、海信、本田、鴻海、富士康、聯想、松下、三星、夏普、Skyworks、TCL和豐田。我們向這些 OEM 系統提供的產品基於我們獨特的技術，並以龐大的智慧財產權專利組合為後盾，其規模遠大於我們大多數公司的規模。

Our internal motto is no IP, no IC. Our unique and advanced technology enabling higher system performance is the reason our products are used at these companies.

我們的內部座右銘是沒有 IP，就沒有 IC。我們獨特而先進的技術可實現更高的系統性能，這就是這些公司使用我們的產品的原因。

Once in the supply chain of these major customers, it offers us many opportunities to expand with them into more product areas. We feel the potential for growth with our customer base is enormous.

一旦進入這些主要客戶的供應鏈，我們就有很多機會與他們一起擴展到更多的產品領域。我們認為我們的客戶群成長潛力巨大。

As an example, a customer where we began to deliver a single IC for a single product in small volumes, can and usually does lead us into other similar products they manufacture in higher volumes as well as products for other market areas in which they are involved. Getting the first design into a major customer is difficult, expanding the relationship is much easier.

舉個例子，我們開始為單一產品小批量提供單一 IC 的客戶可以而且通常確實會引導我們進入他們大批量生產的其他類似產品以及他們涉及的其他市場領域的產品。讓第一個設計進入大客戶是很困難的，擴大關係則容易得多。

Given our excellent technology in key growth areas and excellent customer positioning, we are confident of our ability to continue to grow long term revenues and enjoy good margins.

鑑於我們在關鍵成長領域的卓越技術和卓越的客戶定位，我們對繼續增加長期收入並享受良好利潤的能力充滿信心。

I will now pass the call over to Sterling Du, our CEO, for closing remarks. Thank you.

現在我將把電話轉給我們的執行長斯特林杜 (Sterling Du)，讓其致閉幕詞。謝謝。

Thanks, Jim. O2Micro reported the second quarter of 2021 revenue of $26.2 million. Revenue was up 12.8% from previous quarter and up 51.6% from the same quarter prior year.

謝謝，吉姆。凹凸科技公佈 2021 年第二季營收為 2,620 萬美元。營收季增 12.8%，季增 51.6%。

The gross margin in the second quarter of 2021 was 51.5%. Gross margin was slightly down from 51.6% of the previous quarter, which is in our company average range. Our revenue exceeds guidance publicly released on April 30, 2021.

2021年第二季毛利率為51.5%。毛利率較上一季的 51.6% 略有下降，處於我們公司的平均範圍內。我們的收入超越了 2021 年 4 月 30 日公開發布的指引。

Our battery business grew strongly at all the sectors, especially the cordless flow care product, which comes from the strong household demand as work-from-home or flexible work-from-home continues. We also see the garden tools, professional tools market expand rapidly. We believe it is a healthy product mix and strong growth coming from both consumer and construction industry.

我們的電池業務在所有領域均強勁增長，尤其是無線流量護理產品，該產品來自隨著在家工作或靈活在家工作的持續而產生的強勁家庭需求。我們也看到園林工具、專業工具市場迅速擴大。我們相信這是一個健康的產品組合，並且來自消費者和建築行業的強勁成長。

On the other hand, we see the new battery-powered devices product from the light, transportation, innovative household energy storage, to industry grade intra-power system.

另一方面，我們看到了從照明、交通、創新家用儲能到工業級內部電源系統的新型電池供電設備產品。

With the high growth demand of battery energy, innovative technology continue to improve, energy density and production capacity continue to expand. For example, CATL produced 30.5 gigawatt hour in 2019 and 230 gigawatt hour in 2020, project to produce 1,200 gigawatt hour in 2025, which will be 5x growth in 5 years. We see such drastic capacity expansion will drive many new innovation battery powered applications. With higher energy density inside -- in the battery, better cost structure.

隨著電池能源需求的高成長，創新技術不斷完善，能量密度和產能不斷擴大。例如，寧德時代2019年發電量為30.5吉瓦時，2020年發電量為230吉瓦時，預計2025年發電量將達1200吉瓦時，5年內將成長5倍。我們看到如此大幅的產能擴張將推動許多新的電池供電應用的創新。電池內部具有更高的能量密度，更好的成本結構。

Meanwhile, higher energy density means, the higher resolution needed and faster AD converter needed. Our AFE Analog Front End and the BMU, which were designed with 14 bit high accuracy AD converter could meet customer needs. Our high accuracy AD converter reached 15 millivolt resolution performance, which is way beyond customer expectation.

同時，更高的能量密度意味著需要更高的解析度和更快的AD轉換器。我們的AFE類比前端和BMU採用14位元高精度AD轉換器設計，可滿足客戶的需求。我們的高精度AD轉換器達到了15毫伏特的解析度效能，遠遠超出了客戶的期望。

As power tool market growth comes from the existing marketplace and also newly creative applications, it expands to more areas, including at home DIY tools, garden tools, to the seasoned contractors. Power tool helps simplify the labor involved in the production and speed of the production time. Furthermore, our arm-based all-in-one PMA solutions enable power tool to be connected as IoT devices.

由於電動工具市場的成長來自現有市場和新的創意應用，因此它擴展到更多領域，包括家庭 DIY 工具、園藝工具以及經驗豐富的承包商。電動工具有助於簡化生產中涉及的勞動力並提高生產時間。此外，我們基於 ARM 的一體化 PMA 解決方案使電動工具能夠作為物聯網設備進行連接。

5G deployment would further enrich the power tool connectivity. Our Intelligent lighting group business continue to be strong without a sign of slowdown. An increasing trend might drive the high-end TV and monitor sector.

5G的部署將進一步豐富電動工具的連接性。我們的智慧照明集團業務持續強勁，沒有放緩的跡象。這一成長趨勢可能會推動高階電視和顯示器產業的發展。

We see one of the main reasons of so-called Great Resignation, which is that people change job upon back into office for flexible working hours. Therefore, spending more time at home or flexible working from home remain part of the daily life after pandemic. It is consistent to our observation as we see high-end TV as well as high-end monitor demand continue to expand.

我們看到所謂「大辭職」的主要原因之一，就是人們為了靈活的工作時間而回到辦公室後跳槽。因此，花更多時間在家或在家彈性工作仍然是疫情後日常生活的一部分。這與我們的觀察一致，因為我們看到高階電視和高階顯示器的需求持續擴大。

Our TV high-end 4K and 8K local dimming backlight product demand continue to be very strong. The latest IC we rolled out processed the ability to control the dimming through either analog function or PWM, pulse-width function.

我們的電視高階4K和8K局部調光背光產品需求仍然非常強勁。我們推出的最新 IC 能夠透過類比功能或 PWM、脈衝寬度功能來控制調光。

2 in one mode control further simplify the TV system design architecture, if our customer desire to support different type panel dimming solution with only one IC. The global 4K TV market size is expect to reach USD 380 billion by 2025, at a compound annual growth rate of 21.2% according to the report by Grand View Research. We foresee today's 8K will become the mainstream product in the following years.

如果我們的客戶希望僅用一個 IC 支援不同類型的面板調光解決方案，2 合一模式控制可進一步簡化電視系統設計架構。 Grand View Research的報告顯示，預計到2025年，全球4K電視市場規模將達到3,800億美元，年複合成長率為21.2%。我們預計今天的8K將成為未來幾年的主流產品。

The mini-LED technology offers much smaller size, only 1% of conventional packaged LED size. It gives a TV system designer, the great freedom to design a dimming layout by offering the multi-scaling technology without compromise our performance.

mini-LED 技術的尺寸要小得多，僅為傳統封裝 LED 尺寸的 1%。它透過提供多縮放技術，為電視系統設計人員提供了設計調光佈局的極大自由，而不會影響我們的性能。

Why multi-scaling is important? The motion blur of LCD display come from several factors, including pixel transitions and persistence. Our multi-scaling technology reduces motion blur effect by refresh the many predefined smaller local area LED from a different direction simultaneously.

為什麼多尺度很重要？ LCD 顯示器的運動模糊來自多個因素，包括像素過渡和餘輝。我們的多重縮放技術透過從不同方向同時刷新許多預先定義的較小局部區域 LED 來減少運動模糊效果。

The mini-LED could easily do compose many predefined small local area due to its smaller size. This technology presents a crystal clear picture even with fast-moving object in a display.

由於尺寸較小，mini-LED 可以輕鬆組成許多預先定義的小局部區域。即使顯示器中的物體快速移動，該技術也能呈現出清晰的影像。

Lastly but not least. Both LED backlighting and our battery safety protection technology continue to receive patent grants lately as of our new multiple press release speaking themselves. We continue to grow the business despite the dynamic market suggestion, we are optimistic for the fundamental of business and the focus on high-end and high-performance of the business.

最後但並非最不重要的一點是。截至我們新發布的多份新聞稿，LED 背光和我們的電池安全保護技術最近都繼續獲得專利授權。儘管市場情勢充滿活力，我們仍繼續成長業務，我們對業務基本面持樂觀態度，並專注於業務的高端和高效能。

We initiated several expansion projects, which incur additional expense over new quarters, including implementing the automotive grade ISO 26262 SGS qualification program.

我們啟動了多個擴展項目，這些項目在新季度會產生額外費用，包括實施汽車級 ISO 26262 SGS 資格計劃。

Second, source foundry fabrication tape out, expanded the packaging and test facility supply chain to ensure delivery on time and et cetera. We always watch expands carefully for our build base to drive the future momentum. We always keep the shareholder best interest in mind, especially at current dynamic situation. At this moment, I'd like to thank you for listening our conference call and return back to Dan. Dan, please.

其次，源代工廠製造流片，擴大封裝和測試設施供應鏈，以確保按時交貨等。我們始終密切關注我們的基礎的擴張，以推動未來的動力。我們始終牢記股東的最大利益，尤其是在當前的動態情況下。此時此刻，我要感謝您收聽我們的電話會議並回到丹。丹，請。

Thank you, Sterling. At this point, operator, we'd like to open the call to questions.

謝謝你，斯特林。接線員，現在我們想開始提問。

Thank you. (Operator Instructions) We will take our first question from the line of Theodore O'Neill from Litchfield Hills Research.

謝謝。 （操作員說明）我們將從 Litchfield Hills Research 的 Theodore O'Neill 那裡提出第一個問題。

My question is about the battery management market for industrial tools. We all see the proliferation of battery-powered consumer tools, but in recent discussions I've had with commercial construction managers, they're seeing a change to almost all battery-powered commercial tools. And I was wondering if you could comment on if you're seeing this sort of thing -- seeing this trend as well.

我的問題是關於工業工具的電池管理市場。我們都看到電池供電的消費工具的激增，但在最近我與商業建築經理的討論中，他們看到幾乎所有電池供電的商業工具都發生了變化。我想知道你是否可以評論一下你是否看到了這種事情——也看到了這種趨勢。

Well, yes, we are seeing a trend and one of the key areas for this whole area of power tools is the ability of, for instance, a construction company to keep track of their tools. So what happens on a major job, for instance, they actually will have global positioning built-in, they'll be able to track actually the individual tool where it is at. And should that tool somehow go astray, they can actually make it dysfunctional. So basically, this is a major, major activity within the power tool industry, and we do see this as being a very dynamic, growing market.

嗯，是的，我們看到了一種趨勢，整個電動工具領域的關鍵領域之一是建築公司追蹤其工具的能力。例如，在一項主要工作中，他們實際上將內建全球定位，他們將能夠實際追蹤單一工具的位置。如果該工具以某種方式誤入歧途，實際上可能會使其功能失調。所以基本上，這是電動工具產業內的一項重大活動，我們確實認為這是一個非常有活力、不斷成長的市場。

Last quarter you talked about CapEx for the year coming to between $10 million and $15 million. Is that still your thought for this year?

上個季度您談到今年的資本支出將在 1000 萬美元至 1500 萬美元之間。今年你的想法還是這樣嗎？

The CapEx altogether, testing and also other area, we are still in the $10 million to $15 million, but it will be up to the delivery schedule. So based on the current update, it could be in the area of a little 10 around -- $10 million round.

總的資本支出、測試和其他領域，我們仍然在 1000 萬至 1500 萬美元之間，但這將取決於交付時間表。因此，根據目前的更新，該輪融資金額可能約為 1,000 至 1,000 萬美元。

We'll take our next question from the line of Lisa Thompson from Zacks Investment Research.

我們將從 Zacks Investment Research 的麗莎湯普森 (Lisa Thompson) 那裡提出下一個問題。

I have a few questions. First off, SG&A seemed like over little high for the quarter. Did you do anything special, and spend on something or was that just hiring?

我有幾個問題。首先，本季的 SG&A 似乎有點過高。你做了什麼特別的事，花錢買了什麼東西，還是只是招募？

The SG&A is partially -- is partially related to the revenue growth -- higher revenue, of course. And the second one is because we are setting a more service team to the different market sectors and also the extra costs up in the logistics to the short turn lead-time -- short lead-time notice from the customers. Also, we are adding some traveling. China resumes from traveling to visit the customer and also the account. So this will be at least up a little bit. Up a little bit in the amount and also -- but, however, we also will control the ratio of the -- rate of the SG&A to the revenue, yes.

SG&A 部分與收入成長部分相關——當然是更高的收入。第二個是因為我們正在為不同的市場部門設置更多的服務團隊，而物流中的額外成本也會增加到短週交貨時間——客戶的短交貨時間通知。此外，我們還增加了一些旅行。中國恢復訪問客戶和帳戶。所以這至少會再上升一點。金額會增加一點，但是，我們也會控制 SG&A 與收入的比率，是的。

In the industry, we keep hearing now that there's like record double ordering for products. Are you seeing that also and I know this isn't your first rodeo? Are we to fear that maybe next year, there will be some inventory corrections?

在產業中，我們現在不斷聽到產品重複訂購的情況創紀錄的情況。你也看到了這一點嗎？我知道這不是你的第一次牛仔競技表演？我們是否擔心明年可能會出現一些庫存調整？

Lisa, we monitor that issue very closely, and it's always a concern. One of the things we mentioned in the call is that, we focus on major customers. So we deal directly with major customers. We do not have distribution channels that typically build up a lot of inventory. And one of the things we do with the major customers is we monitor their forecast and usage very closely, so that we avoid to the maximum extent any buildup of significant inventories, and we will continue to do that. So at this point, we do not see a major downside risk to ourselves due to any customer holding significant amounts of inventory.

麗莎，我們非常密切地關注這個問題，這始終是一個令人擔憂的問題。我們在電話中提到的一件事是，我們專注於主要客戶。所以我們直接與主要客戶打交道。我們沒有通常會累積大量庫存的分銷管道。我們與主要客戶一起做的事情之一是我們非常密切地監控他們的預測和使用情況，以便我們最大限度地避免大量庫存的積累，我們將繼續這樣做。因此，目前我們認為，由於任何客戶持有大量庫存，我們並沒有看到重大的下行風險。

One thing I noticed for this quarter, it looks like your battery management business is accelerating its growth, I think it was more than a double-ish. Do you see that continuing based on what you see happening with customers and the market?

本季我注意到的一件事是，您的電池管理業務似乎正在加速成長，我認為成長了一倍以上。根據您對客戶和市場的觀察，您認為這種情況會持續嗎？

Well, the battery management business indeed had a very strong quarter, although I will say that, lighting also enjoyed a very strong quarter due to both the monitor and TV business. So our growth wasn't just out of the battery management area. We do see ongoing opportunities to expand growth.

嗯，電池管理業務確實有一個非常強勁的季度，儘管我會說，由於顯示器和電視業務，照明也有一個非常強勁的季度。因此，我們的成長不僅限於電池管理領域。我們確實看到了持續擴大成長的機會。

I will mention that both Perry and Sterling indicated, we are looking at expanding our operating capability, including additional fab capability, test capability as well as assembly capability. And actually, at this point, we have restricted somewhat our customer base due to the rapid expansion. There's only so fast we can expand with the current supply base. But we are now doing that expansion and so we do expect ongoing growth, but it can't just be unlimited growth due to the time and money it takes to expand.

我要提到的是，佩里和斯特林都表示，我們正在考慮擴大我們的營運能力，包括額外的晶圓廠能力、測試能力以及組裝能力。實際上，由於快速擴張，我們目前已經在一定程度上限制了我們的客戶群。我們只能以目前的供應基礎快速擴張。但我們現在正在進行擴張，因此我們確實期望持續成長，但由於擴張需要時間和金錢，它不能只是無限成長。

That sounds like a good problem to have. So talking about -- back to the lighting business. I keep reading now a lot of talk about mini-LEDs and laptops and notebooks. Do you think that business is going to come back?

這聽起來是一個很好的問題。回到照明業務。我現在一直在閱讀很多有關 mini-LED 和筆記型電腦的討論。您認為生意會恢復嗎？

Well, the mini-LED business is certainly going to grow. I think in the prior call, we did mention that we are doing some significant work in the mini-LED, including R&D and we did recently release a press release on a patent that is directly related to mini-LED. So we see the mini-LED market ready to really grow, first of all, in the tablet business and then it will grow on up into the TV business over time. But the mini-LED business will be a major, major growing business over the next 5 years.

嗯，mini-LED 業務肯定會成長。我想在之前的電話會議中，我們確實提到我們正在 mini-LED 方面做一些重要的工作，包括研發，而且我們最近也發布了一份與 mini-LED 直接相關的專利的新聞稿。因此，我們認為 mini-LED 市場已經準備好真正成長，首先是平板電腦業務，然後隨著時間的推移，它將擴展到電視業務。但mini-LED業務將是未來5年主要的、主要成長的業務。

So speaking of the patents, I guess you released 2 of them. 2 press releases on them this quarter. Could you just dumb them down a little to -- for the rest of us to access those 2 specific patents?

說到專利，我猜您發布了其中兩項。本季有 2 篇關於他們的新聞稿。您能否將它們簡化一點，以便我們其他人能夠存取這兩項特定專利？

Sterling, do you want to comment on that?

斯特林，你想對此發表評論嗎？

Yes. These are for the mini-LED I think I have only fag impression. But I did -- I did write-off some of the battery. What we did for the battery patent, we just put a press release, including -- we detect when a battery sale. When you have a multiple battery cell and certain of the cell has been either a malfunction or shortage or even they have a bad connection between each individual cells at that moment, you're going to see some -- you maybe detect the voltage had a significant dropdown, however, but you don't know it is going to be the battery intrinsic that have chemical issues or just the safety issue.

是的。這些是針對 mini-LED 的，我想我只有同性戀的印象。但我做到了——我確實註銷了一些電池。我們為電池專利所做的，我們只是發布了一份新聞稿，包括—我們檢測電池何時銷售。當你有多個電池，並且某些電池出現故障或短缺，甚至每個電池之間的連接不良時，你會看到一些 - 你可能會檢測到電壓有一個然而，顯著下降，但你不知道這將是電池內部存在化學問題或只是安全問題。

So we come out with a methodology to give a small step up, mini current to testing that voltage and to see that the current and voltage we call the IV curve to match certain of the reasonable explanation and to determine this is coming from the failure or it's just simply the aging problem or the health status of the battery. So this is a patent we just -- one of the patent we issued. And other patents, sorry for that, I doesn't recall that clearly at this moment.

因此，我們提出了一種方法，可以提供一個小步驟、小電流來測試該電壓，並查看我們稱為 IV 曲線的電流和電壓，以匹配某些合理的解釋，並確定這是來自故障或這只是電池的老化問題或健康狀況。這是我們剛剛頒發的專利之一。還有其他專利，抱歉，我現在記不太清楚了。

Is there anybody in particular that's going to take that up first that's most important to?

有沒有人會先處理最重要的事情？

In the mini-LED area, we are working with several very significant entities. We're not able to do the nondisclosures. I'm not able to give out names and specific activity. But when we are doing these developments, we are working with customers.

在 mini-LED 領域，我們正在與幾個非常重要的實體合作。我們無法做到保密。我無法透露姓名和具體活動。但當我們進行這些開發時，我們是在與客戶合作。

We have no further question. I will hand over the call back to Dan for any additional closing remarks. Please go ahead.

我們沒有其他問題了。我會將電話轉給 Dan，以供其發表任何補充的結束語。請繼續。

Thank you. I'd like to thank everyone again this morning for your time and attention. Please feel free to contact me at (408) 987-5920 extension 8888 or at ir@o2micro.com with any follow-up questions. I'd like to thank everyone. Have a great day and for your time and attention. Goodbye.

謝謝。我想再次感謝大家今天早上的時間和關注。如有任何後續問題，請隨時致電 (408) 987-5920 分機 8888 或發送電子郵件至 ir@o2micro.com 與我聯繫。我要感謝大家。祝您度過愉快的一天，並享受您的時間和注意力。再見。

Ladies and gentlemen, that concludes today's conference. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與。您現在可以斷開連線。