PCTEL Inc (PCTI) 2023 Q2 法說會逐字稿

Greetings, and welcome to PCTEL's Second Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

各位來賓，歡迎參加PCTEL第二季財報電話會議。 （操作說明）請注意，本次會議正在錄音。

I would now like to turn the conference over to your host, Kevin McGowan. Please go ahead.

現在我將會議交給主持人凱文·麥克高恩。請開始吧。

Thank you for joining us on today's conference call to discuss PCTEL's Second Quarter 2023 Financial Results. With me today is David Neumann, the company's CEO.

感謝各位參加今日的電話會議，共同探討PCTEL 2023年第二季的財務表現。今天與我一同出席會議的是公司執行長大衛·諾伊曼先生。

Please note that a webcast replay of this call will be available on our website. Before we begin, let me remind you that this call may contain forward-looking statements and projections based upon current circumstances. While these forward-looking statements and projections reflect PCTEL's best current judgment, they are subject to risks and uncertainties, particularly related to global supply chain and logistics challenges, global political and economic circumstances, including inflation and a potential recession, ability to generate sales of our innovative new products, success of our expansion efforts in Europe, and ability to leverage our distribution channels that could cause actual results to differ materially from these forward-looking statements and projections.

請注意，本次電話會議的網路直播回放將在我們的網站上提供。在會議開始之前，請允許我提醒各位，本次會議可能包含基於當前情況的前瞻性陳述和預測。儘管這些前瞻性陳述和預測反映了PCTEL目前的最佳判斷，但它們仍受到風險和不確定性的影響，特別是與全球供應鏈和物流挑戰、全球政治和經濟環境（包括通貨膨脹和潛在的經濟衰退）、我們創新產品的銷售能力、我們在歐洲擴張的成功以及我們利用分銷渠道的能力相關的風險和不確定性，這些因素都可能導致實際結果與前瞻性陳述和存在重大預測和實際結果存在的預測結果。

Risk factors that could cause PCTEL's actual results to differ materially from its projections are discussed in the earnings press release, which was issued today and the company's annual report on Form 10-K. The company assumes no obligation to update any forward-looking statements or information which speak as of the respective dates.

可能導致PCTEL實際業績與預測業績有重大差異的風險因素已在今日發布的獲利新聞稿和公司10-K表格年度報告中進行了討論。本公司不承擔更新任何前瞻性陳述或資訊的義務，這些陳述或資訊僅代表截至相應日期的情況。

Additionally, our commentary will include reference to the following non-GAAP measures, non-GAAP gross margin percentage, non-GAAP operating expense, non-GAAP earnings per share and adjusted EBITDA. We believe these non-GAAP measures facilitate comparability of results over different periods. A full reconciliation of these non-GAAP measures to GAAP is included in our quarterly earnings press release that was issued earlier today.

此外，我們的評論將提及以下非公認會計準則（非GAAP）指標：非GAAP毛利率、非GAAP營業費用、非GAAP每股盈餘和調整後EBITDA。我們認為這些非GAAP指標有助於比較不同期間的表現。這些非GAAP指標與GAAP指標的完整調節表已包含在我們今天稍早發布的季度獲利新聞稿中。

I'm now pleased to turn the call over to David Neumann.

現在我很高興將電話交給大衛·諾伊曼。

Thank you, Kevin. Good afternoon all, and thank you for joining us today on our second quarter 2023 conference call.

謝謝你，凱文。各位下午好，感謝各位今天參加我們2023年第二季的電話會議。

Today, we will discuss market conditions, review our second quarter performance and share our outlook for the third quarter 2023. Kevin will then review our financial results in greater detail.

今天，我們將討論市場狀況，回顧第二季業績，並分享我們對2023年第三季的展望。之後，凱文將更詳細地分析我們的財務表現。

Incoming orders improved in the quarter, driven in part by a large OEM customer increasing purchases as the higher-than-normal inventory levels began to decline. We are pleased to report that customer supply chain issues are improving, which also contributed to the increase in orders. At a high level, we delivered second quarter revenues of $20.6 million, a decrease of $4.4 million year-over-year, but we achieved strong non-GAAP gross margins of 49.5%, up 3.5% from the prior year period.

本季訂單量有所改善，部分原因是由於一家大型OEM客戶在庫存水準開始下降後增加了採購量。我們欣喜地報告，客戶供應鏈問題正在改善，這也促進了訂單量的成長。整體而言，我們第二季營收為2,060萬美元，年減440萬美元，但我們實現了強勁的非GAAP毛利率，達到49.5%，較上年同期成長3.5%。

Top line performance was in line with our expectations and the decline both on a sequential and year-over-year basis was due to lower revenues in both product lines. Although revenue decreased in our antenna business, incoming orders increased in the quarter, which will contribute to revenue in the second half of the year and into 2024. Scanning receiver incoming orders also increased and the revenue comparison is to a stronger-than-expected first quarter, as Kevin will highlight soon.

營收整體表現符合預期，較上季和年比均出現下滑，主要原因是兩條產品線的收入均下降。儘管天線業務的收入有所減少，但本季新訂單量有所增加，這將有助於下半年及2024年的收入成長。掃描接收器的新訂單量也有所增加，而且與強於預期的第一季相比，本季度的收入表現也略有提升，凱文稍後將對此進行詳細說明。

As always, I would like to thank our PCTEL team for their continued dedication and contribution to our business and growth. Through their diligence, we have been able to continue to successfully navigate today's challenging operating environment. Our supply chain relationships remain strong. Our on-time delivery metrics remain high and our inventory is in a good position for the remainder of the year.

一如既往，我要感謝PCTEL團隊一直以來對公司業務和發展的奉獻與貢獻。正是由於他們的辛勤付出，我們才能在當今充滿挑戰的經營環境中持續取得成功。我們的供應鏈關係依然穩固，準時交貨率保持在高位，庫存狀況良好，足以應對今年剩餘時間的需求。

Later in today's call, I will discuss our 3 core growth strategies in greater detail. We continue to make important progress with our industry-leading product launches, customer and distribution expansion and work to provide more components for our customer systems, which continue to serve as a foundation of our operational success.

在今天的電話會議稍後，我將更詳細地討論我們的三大核心成長策略。我們在業界領先的產品發布、客戶和分銷管道拓展方面持續取得重要進展，並致力於為客戶系統提供更多組件，這些組件仍然是我們營運成功的基石。

I would now like to turn the call over to Kevin for a review of our second quarter 2023 results. Kevin?

現在我想把電話交給凱文，讓他回顧我們2023年第二季的表現。凱文？

Thank you, David. Total revenues were $20.6 million, essentially the midpoint of our guidance range and 17.6% lower compared to the prior year period. Revenues for antennas and industrial IoT devices were $14.4 million in the period, a decrease of roughly $3.2 million compared to the second quarter of 2022. With lower antenna revenues for enterprise and public safety applications due to customer inventory levels as well as customer supply chain challenges and other system components.

謝謝David。總營收為2,060萬美元，基本上處於我們預期範圍的中點，比上年同期下降17.6%。本季天線和工業物聯網設備營收為1,440萬美元，比2022年第二季減少約320萬美元。企業和公共安全應用領域的天線營收下降，主要原因是客戶庫存水準、供應鏈挑戰以及其他系統組件方面的問題。

It is worth noting that these issues are starting to abate, but still impacted performance during the quarter. Test & Measurement revenues were $6.2 million for the second quarter of 2023 and 1.2 million lower compared to the second quarter of 2022, primarily due to lower OEM sales, which declined following a particularly strong first quarter. In addition, performance in the second quarter last year was very strong, impacting the comparison to that period. We expect the rest of the year to follow the typical cyclical pattern.

值得注意的是，這些問題正在逐漸緩解，但仍對本季業績造成了影響。 2023年第二季測試與測量業務收入為620萬美元，較2022年第二季減少120萬美元，主要原因是OEM銷售額下降，而OEM銷售額在第一季表現強勁之後出現下滑。此外，去年第二季的業績非常出色，也影響了與同期業績的比較。我們預計今年剩餘時間將遵循典型的週期性模式。

Second quarter 2023 gross profit margin percentage on a non-GAAP basis was 49.5%, above our expectations and a 3.5% increase from the year ago period. The increase in gross profit margin percentage was primarily due to a stronger gross profit margin percentage for antennas and industrial IoT devices. Non-GAAP gross profit margin percentage for antennas and industrial IoT devices in the second quarter of 2023 improved by 6.5% compared to the second quarter of 2022. Due to continued improvement in logistical and operating costs relative to last year, coupled with a favorable shift in product and customer mix.

2023年第二季非GAAP毛利率為49.5%，高於預期，較上年同期成長3.5%。毛利率成長主要得益於天線和工業物聯網設備毛利率的提升。 2023年第二季天線和工業物聯網設備的非GAAP毛利率較2022年第二季成長6.5%，主要得益於物流和營運成本較上年持續改善，以及產品和客戶組合的有利變化。

The non-GAAP gross profit margin percentage for Test & Measurement products was lower by 4.2% in the second quarter of 2023 compared to the second quarter of 2022 due to higher component costs. Operating expenses on a non-GAAP basis were $9 million in the second quarter of 2023, a decrease of $0.7 million compared to the second quarter 2022. The year-over-year decrease was primarily due to lower expenses in sales and marketing related to commissions and marketing programs as well as lower expense accruals for incentive compensation.

由於零件成本上升，2023年第二季測試與量測產品的非GAAP毛利率較2022年第二季下降4.2%。 2023年第二季非GAAP營運費用為900萬美元，較2022年第二季減少70萬美元。年比下降的主要原因是銷售和行銷相關佣金及行銷項目費用減少，以及激勵性薪酬費用提列減少。

Other income was $0.3 million in the second quarter of 2023 compared to $0.1 million in the prior year period. The year-over-year increase was primarily due to higher average interest rates. Adjusted EBITDA decreased by approximately 33% to $1.7 million in the second quarter of 2023 compared to $2.6 million in the year-ago period. Adjusted EBITDA as a percentage of revenue was 8.5% in the second quarter of 2023 compared to 10.4% in the second quarter of 2022. And non-GAAP diluted earnings per share was $0.07 in the second quarter of 2023, exceeding our expectations of between $0.02 to $0.04, but was lower by $0.03 compared to the second quarter 2022. The decrease in earnings per share and adjusted EBITDA can be attributed to the lower sales volumes.

2023年第二季其他營收為30萬美元，而去年同期為10萬美元。年成長主要歸因於平均利率上升。 2023年第二季調整後EBITDA為170萬美元，較上年同期的260萬美元下降約33%。 2023年第二季調整後EBITDA佔營收的8.5%，而2022年第二季為10.4%。 2023年第二季非GAAP攤薄後每股收益為0.07美元，高於我們先前0.02美元至0.04美元的預期，但較2022年第二季下降0.03美元。每股盈餘和調整後EBITDA的下降可歸因於銷售下降。

Cash and investments were $33.6 million at the end of the second quarter of 2023. Compared to the end of the first quarter 2023, our cash and investments increased by approximately $3.4 million, with lower sequential revenues, our receivables contracted by $2.6 million and we reduced inventories by approximately $1.2 million during the second quarter. We will continue to focus on managing the inventory to lower levels in both product lines.

截至2023年第二季末，公司現金及投資總額為3,360萬美元。與2023年第一季末相比，現金及投資總額增加了約340萬美元。儘管環比收入下降，應收帳款減少了260萬美元，且庫存減少了約120萬美元，但第二季現金及投資總額仍有所增加。我們將繼續致力於降低兩條產品線的庫存水準。

Financing activities for the second quarter included payment of our quarterly dividend of $1 million. Our healthy cash and investments on hand and cash flow support our capital allocation strategy of paying quarterly cash dividends and having available funds for M&A activity.

第二季的融資活動包括支付100萬美元的季度股利。我們充足的現金和投資以及現金流支持我們的資本配置策略，即按季度支付現金股息，並為併購活動預留資金。

Turning to our third quarter outlook. We expect revenues to be in the range of $20 million to $21 million. We see positive trends in some areas as we expect continued improvement in the inventory and supply chain headwinds that David mentioned previously. Top line performance is expected to be flat on a sequential basis. With similar performance as in the second quarter for both product lines. We expect the non-GAAP gross profit margin percentage to be in the range of 48% to 49%, and we expect our non-GAAP earnings per share to be in the range of $0.06 to $0.07. While there is ongoing uncertainty around the global operating environment in 2023, we're confident in our ability to grow our product offerings and ensure we use the cash generated by the business in accretive and value-enhancing ways for our shareholders.

接下來展望第三季。我們預計營收將在2,000萬美元至2,100萬美元之間。我們看到一些領域呈現正面趨勢，因為我們預期庫存和供應鏈方面的不利因素（正如David之前提到的）將持續改善。預計營收環比將持平，兩條產品線的業績將與第二季類似。我們預期非GAAP毛利率將在48%至49%之間，非GAAP每股盈餘將介於0.06美元至0.07美元之間。儘管2023年全球經營環境仍存在諸多不確定性，但我們有信心拓展產品線，並確保將業務產生的現金用於對股東增值和提升價值的用途。

With that, I will turn the call back to David.

這樣，我就把電話轉回給大衛了。

Thank you, Kevin. I would now like to discuss our progress towards our 3 core growth strategies during the quarter and comment more generally on developments in the business. As I mentioned earlier, these include launching innovative wireless products expanding and leveraging distribution channels and increasing market share by expanding our reach and providing more components of the overall customer systems.

謝謝凱文。接下來我想談談本季我們在三大核心成長策略方面的進展，並對公司整體發展做一些總體介紹。正如我之前提到的，這些策略包括推出創新無線產品、拓展和利用分銷管道，以及透過擴大覆蓋範圍和提供更多客戶系統組件來提升市場份額。

Beginning with our innovative product launches, we're pleased to have announced multiple industry-leading products in the quarter, including the addition of 4G and 5G network monitoring capabilities to our SeeHawk Monitor product. With this release, SeeHawk Monitor can collect and evaluate downlink signals for 4G and 5G network base stations for mission-critical public safety and broadband wireless networks. This system detects and decodes 4G and 5G base station signals in real-time and notifies users of changes and conditions, which may indicate interference that impacts network capacity and quality.

從我們創新的產品發布開始，我們很高興在本季宣布推出多款業界領先的產品，其中包括為我們的 SeeHawk Monitor 產品新增的 4G 和 5G 網路監控功能。此次更新後，SeeHawk Monitor 可以收集和評估 4G 和 5G 網路基地台的下行鏈路訊號，適用於關鍵任務型公共安全和寬頻無線網路。該系統能夠即時檢測和解碼 4G 和 5G 基地台訊號，並通知用戶可能影響網路容量和品質的干擾變化和狀況。

Ultimately, this monitoring will support the growth of private broadband networks for hospitals, utilities, stadiums and venues and other mission-critical applications such as government emergency services. In July, we announced a ruggedized, integrated IoT sensor and an antenna platform, the Edge Sensor. This is a solution designed to operate in harsh environments and provide reliable and improved edge connectivity with industrial IoT sensing.

最終，這種監測將支援醫院、公用事業、體育場館和其他關鍵任務應用（例如政府緊急服務）的專用寬頻網路的發展。今年7月，我們發布了一款堅固耐用的整合式物聯網感測器和天線平台—邊緣感測器。該解決方案旨在在惡劣環境下運行，並利用工業物聯網感測技術提供可靠且更強大的邊緣連接。

The Edge Sensor is a highly customizable solution that combines 2 of our top platforms in a single ruggedized housing. Customers have the ability to select from a variety of industrial IoT onboard and external sensors based on their needs for applications in smart utilities, agriculture, mining and industrial process automation. We view the Edge Sensor as an exciting next step in PCTEL's evolution and the integration of our antennas with active components, including radios and sensors. These advanced product launches build upon our commitment to innovation and are expected to contribute to driving further growth for years to come.

邊緣感測器是一款高度可自訂的解決方案，它將我們兩大頂級平台整合於一個堅固耐用的外殼中。客戶可根據自身需求，選擇適用於智慧公用事業、農業、採礦和工業流程自動化等領域的各種工業物聯網板載和外部感測器。我們認為邊緣感測器是PCTEL發展歷程中令人振奮的下一步，也是我們將天線與包括無線電和感測器在內的主動組件整合的另一個重要里程碑。這些先進產品的推出體現了我們對創新的承諾，並有望在未來幾年推動公司持續成長。

We also saw a number of positive developments for our Test & Measurement business. 5G rollouts continue globally with more than 25 countries planning to deploy 5G networks in 2023. Additional Test & Measurement tools will be required for initial deployment and then to address the need for additional capacity as usage and applications increase. In the second quarter, we secured significant public safety orders for in-building network testing systems that will be delivered over the next year. We also see growth in usage of our SeeHawk Central cloud-based data management and reporting for public safety and building testing.

我們的測試與測量業務也取得了一系列積極進展。 5G 在全球持續部署，已有超過 25 個國家計劃在 2023 年部署 5G 網路。初期部署需要更多測試與測量工具，隨著使用量和應用量的增長，後續對額外容量的需求也將持續增加。第二季度，我們獲得了大量公共安全領域的室內網路測試系統訂單，這些系統將在未來一年內交付。此外，我們也看到 SeeHawk Central 雲端資料管理和報告系統在公共安全和建築測試領域的應用日益增長。

Finally, trials of SeeHawk Monitor have begun to convert to sales with several other potential customers working on budget and purchase orders. We believe this product has the potential to open up new markets in cellular and government beyond the current public safety use cases.

最終，SeeHawk Monitor 的試用已開始轉化為銷售，其他幾個潛在客戶正在製定預算和採購訂單。我們相信，除了目前的公共安全應用場景外，該產品還有潛力在行動通訊和政府領域開拓新市場。

As I mentioned, antenna incoming orders improved as supply chain headwinds began to ease. We are encouraged that we continue to make strides in expanding our customer reach further penetrating and receiving large orders within electric vehicle, agriculture, construction and public safety markets to make it easier for customers to select the appropriate antenna for wireless routers we launched an online selector tool and expect to have the most comprehensive antenna selector tool in the market by the end of the year, which should increase antenna orders.

正如我之前提到的，隨著供應鏈阻力逐漸緩解，天線訂單量有所改善。我們很高興地看到，我們在拓展客戶群方面持續取得進展，進一步滲透並獲得了電動車、農業、建築和公共安全等市場的大宗訂單。為了方便客戶選擇合適的無線路由器天線，我們推出了線上選擇工具，並預計到年底將擁有市場上最全面的天線選擇工具，這將有助於提升天線訂單量。

Additionally, we secured significant design wins that are expected to drive revenue in 2024 and beyond and launch 2 new omnidirectional antenna platforms that support the latest WiFi 7 and 5G technologies targeting IoT, enterprise and industrial applications.

此外，我們還獲得了重要的設計訂單，預計將在 2024 年及以後推動營收成長，並推出了 2 個新的全向天線平台，支援最新的 WiFi 7 和 5G 技術，目標應用領域為物聯網、企業和工業應用。

I would now like to touch on our momentum in our global sales channels across each of our businesses. Within Test & Measurement, I mentioned that we see ample opportunity within public safety markets and for 5G rollouts. There are still many markets in Europe, Africa and Asia that have sizable opportunities ahead as they allocate spectrum and plan 5G deployments.

現在我想談談我們各業務部門在全球銷售管道的發展勢頭。在測試與測量領域，我之前提到過，我們在公共安全市場和5G部署方面看到了巨大的機會。歐洲、非洲和亞洲的許多市場在分配頻譜和規劃5G部署方面，仍蘊藏著巨大的發展潛力。

With respect to antennas, we continue to see growth in the number of new customers buying through our larger distributors. For our OEM antenna customers supply chain constraints are beginning to ease and inventory issues for one of our major public safety OEMs are beginning to improve. We also started to receive orders from a major material handling customer that have been delayed for more than a year.

就天線業務而言，我們看到透過大型經銷商採購的新客戶數量持續成長。對於我們的OEM天線客戶，供應鏈限制開始緩解，我們一家主要公共安全OEM客戶的庫存問題也開始改善。此外，我們也開始收到一家大型物料搬運客戶的訂單，該訂單先前已延遲一年多。

Lastly, we're pleased to share that we received a large order from a European electric vehicle manufacturer, building backlog for the remainder of this year and into 2024.

最後，我們很高興地宣布，我們收到了一家歐洲電動車製造商的大訂單，這將為今年剩餘時間和 2024 年帶來充足的訂單儲備。

Our contract manufacturers in Asia continue to perform well as it relates to on-time delivery, quality and customer satisfaction. We continue to evaluate contract manufacturers outside China, Southeast Asia and North America and are consistently working to optimize our factory efficiency in the U.S.

我們在亞洲的代工廠在準時交貨、品質和客戶滿意度方面繼續保持良好表現。我們持續評估中國、東南亞和北美以外的代工廠，並不斷努力優化我們在美國的工廠效率。

Moving to our third core growth strategy of increasing market share with existing customers by providing integrated solutions, we have enjoyed great success with providing our customers with the complementary products that leverage our expertise and antennas. Our Edge Sensor, an integrated sensor antenna platform is in trial with utilities and smart meter customers, and we expect a significant order by the end of the year for a ruggedized access point for heavy vehicle applications.

我們正朝著第三項核心成長策略邁進，即透過提供整合解決方案來提升現有客戶的市場份額。我們已成功為客戶提供充分利用自身專業知識和天線技術的配套產品。我們的整合感測器天線平台－邊緣感測器（Edge Sensor）目前正在公用事業公司和智慧電錶客戶中進行試用，我們預計年底前將收到一份用於重型車輛應用的加固型接入點的訂單。

I'd like to provide some overarching comments on the business. As previously noted, customers continue to work through temporary inventory issues, and there is still work to be done. But as I shared, we are starting to see incremental improvement. Incoming orders are increasing, and the underlying demand environment remains healthy. Our talent is unmatched, and our solutions for antennas and industrial IoT devices and Test & Measurement solutions are recognized as best-in-class in the market. With the strategic priority of growth in mind, we will continue to invest in our products, people and global reach as we work through the remainder of the year and into 2024.

我想就公司業務做一些整體的說明。如同先前所提到的，客戶仍在應對暫時的庫存問題，我們還有一些工作要做。但正如我所說，我們已經開始看到一些逐步改善的跡象。訂單量正在增加，潛在的市場需求仍然健康。我們的人才儲備無可匹敵，我們在天線、工業物聯網設備以及測試測量解決方案方面的實力也被公認為業界最佳。秉持成長的策略重點，我們將持續加大對產品、人才和全球業務的投入，努力在今年餘下的時間裡以及2024年實現這一目標。

As Kevin mentioned, our balance sheet remains strong and provides us with the flexibility to invest in the business. And also explore inorganic growth opportunities as appropriate.

正如凱文所說，我們的資產負債表依然穩健，這讓我們有彈性地對業務進行投資，並在適當的時候探索非內生成長機會。

Finally, we're looking forward to some upcoming investor conferences in the back half of the year. We will be attending the Lake Street Conference in September as well as the Wolf Conference in December, both in New York, and we look forward to meeting with some of you at these events.

最後，我們期待下半年即將舉行的一些投資者會議。我們將參加九月在紐約舉行的萊克街會議和十二月份在紐約舉行的沃爾夫會議，並期待在這些會議上與各位見面。

I would also like to share that after 26 years of service, Giacomo Marini retired from PCTEL's Board of Directors in June. Giacomo's experience and tenure added a great deal value to PCTEL. I'm also pleased to welcome Tony Rossabi to our Board of Directors. Tony's deep expertise within telecommunications and IT industries will be invaluable to PCTEL's future growth, and we are excited to be working alongside him.

我還想宣布，在為PCTEL服務26年後，Giacomo Marini於今年6月從董事會退休。 Giacomo的經驗和資歷為PCTEL增添了巨大的價值。同時，我也很高興地歡迎Tony Rossabi加入我們的董事會。 Tony在電信和IT行業的深厚專業知識對PCTEL的未來發展至關重要，我們期待與他共事。

With that, I would like to turn the call over to the operator for questions. Operator?

那麼，我想把電話轉給接線員回答問題。接線生？

(Operator Instructions) The first question we have is from Jaeson Schmidt of Lake Street.

（操作員說明）我們收到的第一個問題來自湖街的傑森·施密特。

Congrats on the really strong results. I just want to start with the gross margin performance in Q2. It seems to have come in...

恭喜你們取得如此亮眼的業績。我想先談談第二季的毛利率表現。目前看來…

Apologies, Jaeson. Just a moment, Apologies for that. We lost connection with the main speaker line, just a moment.

抱歉，傑森。稍等片刻，非常抱歉。我們和主講線路的連線中斷了，稍等片刻。

We have been rejoined by the main speakers.

主講嘉賓已重新加入討論。

Congrats on the strong results. I want to start with gross margin. Q2 seemed to outperform initial guidance. I know you mentioned mix as well as some logistic costs coming down. But anything else that really kind of drove that outperformance?

恭喜取得如此亮眼的業績。我想先談談毛利率。第二季的業績似乎超出了最初的預期。我知道您提到了產品組合的變化以及物流成本的下降。但除此之外，還有其他因素真正推動了業績的超預期嗎？

Jaeson. No, that's really -- our freight costs were higher in the first half of last year. So that was a big element was continued reduction there. The mix with the products ended up being lower tariff costs and good mix on the product side. We also have gotten some efficiencies out of our Bloomingdale facility. We've been able to optimize the head count and lower that contact to get some lower operating costs from here.

傑森：不，確實如此──去年上半年我們的貨運成本較高。所以持續降低貨運成本是我們工作的重點。產品組合方面，最終實現了關稅成本降低和產品組合優化。此外，我們也提高了布魯明代爾工廠的營運效率。我們優化了人員配置，減少了合約工，從而降低了營運成本。

Okay. That's helpful. And I know you updated us on the EV market in Europe. But curious if you could provide any additional color on what you're seeing on the EV market in the U.S. and sort of any traction there?

好的，這很有幫助。我知道您已經向我們介紹了歐洲電動車市場的情況。但我很好奇您能否再詳細介紹一下美國電動車市場的情況，以及它在那裡的發展勢頭如何？

Yes. So I think most investors know that we initially got into the EV market through the Smarteq acquisition about 2 years ago. So Smarteq had a very strong position with the charging EV charging stations in the Nordic countries. And they've also had a pretty strong relationship with a vehicle manufacturer. So we've been able to get some wins on electric vehicles as well. We're in the process now of I would say, integrating and cross-selling the products. We've developed some antenna integration kits that we can send to the different EV charging station manufacturers to get the broad range of both PCTEL and the Smarteq antennas. So that's in process. We're leveraging some of the same manufacturers that are in Europe or in the U.S. So we think there's some opportunities there. But I would say we're still pursuing accounts. We're not at the same scale as we are in Europe, but it does provide some excellent reference accounts.

是的。我想大多數投資者都知道，我們大約兩年前透過收購Smarteq進入電動車市場。 Smarteq在北歐國家的電動車充電站領域擁有非常強大的地位，並且與一家汽車製造商建立了相當穩固的合作關係。因此，我們也在電動車領域取得了一些成功。目前，我們正在進行產品整合和交叉銷售。我們開發了一些天線整合套件，可以發送給不同的電動車充電站製造商，以便他們能夠使用PCTEL和Smarteq的各種天線。這項工作正在進行中。我們正在利用一些在歐洲或美國擁有相同資源的製造商。因此，我們認為這方面存在一些機會。但我必須說，我們仍在積極拓展客戶。我們目前的規模不如在歐洲那麼大，但這確實為我們提供了非常優秀的參考案例。

Okay. That's really helpful. Just the last one for me, and I'll jump back into queue. You noted the inventory issues at your major public safety OEM are improving. Do you anticipate those inventory issues to be resolved after Q3? Or is this a situation that kind of bleeds into Q4 and doesn't really get corrected until early 2024?

好的，這很有幫助。我只需要最後一個問題，問完我就重新排隊。您提到貴公司主要公共安全設備製造商的庫存問題正在改善。您預計這些庫存問題會在第三季之後解決嗎？還是說這種情況會延續到第四季度，直到2024年初才能真正解決？

Yes. So we don't have a lot of visibility of the level of inventory that the OEM is working through. But we're making that assumption just based on the number of orders that they're placing with PCTEL. So we see it, we see orders increasing. We're assuming inventories decreasing but we don't have a lot of visibility on how much inventory they have. So I think to be safe, we're estimating that this will probably run through the rest of the year as orders increase and then we'll probably back at same level going into '24.

是的。所以我們目前不太清楚這家OEM廠商的庫存水準。但我們做出這個假設只是基於他們向PCTEL下的訂單數量。我們看到訂單量正在增加，因此我們假設庫存會減少，但我們並不清楚他們實際上有多少庫存。所以為了穩妥起見，我們估計這種情況可能會持續到今年年底，隨著訂單量的增長，庫存水準可能會在2024年恢復到之前的水準。

(Operator Instructions) Ladies and gentlemen, we have reached the end of the question-and-answer session. And I would like to turn the call back to David Neumann for closing remarks.

（操作說明）女士們、先生們，問答環節到此結束。現在我把電話轉回給大衛‧諾伊曼，請他作總結發言。

Thank you, Irene. Thank you for joining us this afternoon. I'd like to once again, thank our PCTEL team for their continued commitment to our business, to customers and to growth of the company. Thank you all for your support of PCTEL and your time here today.

謝謝艾琳。感謝您今天下午蒞臨。我再次感謝PCTEL團隊一直以來對公司業務、客戶以及公司發展的持續投入。感謝大家對PCTEL的支持，也感謝大家今天抽出寶貴時間參加會議。

Ladies and gentleman that concludes this conference. Thank you for joining us. You may now disconnect your lines.

女士們、先生們，本次會議到此結束。感謝各位的參與。現在您可以掛斷電話了。