Impinj Inc (PI) 2022 Q2 法說會逐字稿

Welcome to the Impinj Second Quarter 2022 Earnings Conference Call and Webcast. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.

歡迎參加 Impinj 2022 年第二季度收益電話會議和網絡直播。所有參與者都將處於只聽模式。 （操作員說明）請注意正在記錄此事件。

I would now like to turn the conference over to Mr. Andy Cobb, Vice President, Strategic Finance. Please go ahead.

我現在想將會議轉交給戰略財務副總裁 Andy Cobb 先生。請繼續。

Thank you, Anja. Good afternoon, and thank you all for joining us to discuss Impinj's second quarter 2022 results. On today's call, Chris Diorio, Impinj's Co-Founder and CEO, will provide a brief overview of our market opportunity and performance. Cary Baker, Impinjs's CFO, will follow with a detailed review of our second quarter 2022 financial results and third quarter 2022 outlook. We will then open the call for questions. Jeff Dossett, Impinj's CRO, will join us in the Q&A session.

謝謝你，安雅。下午好，感謝大家加入我們討論 Impinj 2022 年第二季度的業績。在今天的電話會議上，Impinj 的聯合創始人兼首席執行官 Chris Diorio 將簡要概述我們的市場機會和業績。 Impinjs 的首席財務官 Cary Baker 將隨後詳細審查我們 2022 年第二季度的財務業績和 2022 年第三季度的展望。然後，我們將打開問題電話。 Impinj 的 CRO Jeff Dossett 將加入我們的問答環節。

You can find management's prepared remarks plus trended financial data on the Investor Relations section of the company's website. We will make statements in this call about future expectations and financial performance based on our outlook as of today. Any such statements are forward-looking under the Private Securities Litigation Reform Act of 1995. While we believe we have a reasonable basis for making these forward-looking statements, our actual results could differ materially because any statements we make today are subject to risks and uncertainties.

您可以在公司網站的投資者關係部分找到管理層準備好的評論以及趨勢財務數據。我們將在本次電話會議中根據我們今天的展望就未來預期和財務業績發表聲明。根據 1995 年的《私人證券訴訟改革法案》，任何此類陳述都是前瞻性的。雖然我們相信我們有合理的基礎做出這些前瞻性陳述，但我們的實際結果可能會大不相同，因為我們今天做出的任何陳述都存在風險和不確定性。

We describe these risks and uncertainties in the annual and quarterly reports we file with the SEC. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, except as required by applicable law. On today's call, all financial metrics, except for revenue or where we explicitly state otherwise are non-GAAP. Balance sheet and cash flow metrics are on a GAAP basis. Please refer to our earnings release for a reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics.

我們在向 SEC 提交的年度和季度報告中描述了這些風險和不確定性。除非適用法律要求，否則我們不承擔並明確拒絕更新或更改我們的前瞻性陳述的任何義務。在今天的電話會議上，除了收入或我們明確聲明的其他財務指標外，所有財務指標都是非公認會計原則。資產負債表和現金流量指標基於公認會計原則。請參閱我們的收益發布，了解非 GAAP 財務指標與最具可比性的 GAAP 指標的對賬。

Before turning to our results and outlook, note that we will participate in the 11th Annual Needham Industrial Tech, Robotics and Clean Tech one-on-one conference on August 1; Oppenheimer's 26th Annual Technology Internet and Communications Conference on August 9; the 42nd Annual Canaccord Genuity Growth Conference in Boston on August 11; the Jefferies Semi IT hardware and com Infrastructure Summit in Chicago on August 30 and 31; the Piper Sandler Growth Frontiers Conference in Nashville on September 13 and the Goldman Sachs 2022 Communacopia and Technology Conference in San Francisco on September 14. We look forward to connecting with many of you at those events. I will now turn the call over to Chris.

在談到我們的結果和展望之前，請注意我們將於 8 月 1 日參加第 11 屆年度 Needham 工業技術、機器人和清潔技術一對一會議； 8 月 9 日，奧本海默第 26 屆年度技術互聯網與通信大會； 8 月 11 日在波士頓舉行的第 42 屆 Canaccord Genuity 年度會議； 8 月 30 日至 31 日在芝加哥舉行的 Jefferies Semi IT 硬件和通信基礎設施峰會； 9 月 13 日在納什維爾舉行的 Piper Sandler 增長前沿會議和 9 月 14 日在舊金山舉行的高盛 2022 Communacopia 和技術會議。我們期待在這些活動中與你們中的許多人聯繫。我現在將把電話轉給克里斯。

Thank you, Andy, and thank you all for joining the call. Our second quarter results were strong, driven by robust secular demand for all our products -- endpoint ICs, reader ICs, readers, and gateways. Revenues set a new quarterly record and strong profitability highlighted the leverage in our operating model as our revenue scales.

謝謝你，安迪，謝謝大家加入電話會議。由於對我們所有產品（端點 IC、讀卡器 IC、讀卡器和網關）的長期需求強勁，我們的第二季度業績強勁。收入創下新的季度記錄，強勁的盈利能力凸顯了我們運營模式中的槓桿作用，因為我們的收入規模不斷擴大。

Based on my conversations with Impinj's leading end users and go-to-market partners, I expect demand to remain strong at least through second half 2022, driven by both new deployments and expansion at existing deployments. Turning first to supply. The pace of wafer upsides from our foundry partner has recently increased, suggesting that global demand for wafers in our process nodes may finally be cooling, although I am guardedly optimistic that, that trend will continue.

根據我與 Impinj 主要最終用戶和上市合作夥伴的對話，我預計至少到 2022 年下半年，在新部署和現有部署擴展的推動下，需求將保持強勁。優先供應。我們的代工合作夥伴最近加快了晶圓上漲的步伐，這表明全球對我們工藝節點中晶圓的需求可能最終會降溫，儘管我謹慎樂觀地認為，這種趨勢將繼續下去。

Second quarter endpoint IC demand still exceeded supply by more than 50% for the fifth consecutive quarter. And looking ahead, I expect that imbalance to persist in the third quarter despite the wafer upsides. On the systems side, second quarter demand exceeded our ability to supply as it has for the past 3 quarters, and we exited second quarter with significant systems backlog.

第二季度端點 IC 需求仍連續第五個季度超過供應量 50% 以上。展望未來，儘管晶圓價格上漲，我預計這種不平衡將在第三季度持續存在。在系統方面，第二季度的需求超過了我們過去 3 個季度的供應能力，我們在第二季度結束時出現了大量系統積壓。

Reader component shortfalls in particular will constrain our reader supply and revenue growth in both the third and fourth quarters. Consequently, I expect product supply rather than demand to broadly constrain second half 2022 revenue growth, just like it did in the first half. That said, we are poised for strong growth as supply improves.

尤其是閱讀器組件短缺將限制我們第三季度和第四季度的閱讀器供應和收入增長。因此，我預計產品供應而非需求將廣泛限制 2022 年下半年的收入增長，就像上半年一樣。也就是說，隨著供應的改善，我們有望實現強勁增長。

Second quarter endpoint IC revenue exceeded our expectations, setting a new quarterly record. Demand remains strong, driven by retailers adopting RAIN or inventory visibility and omnichannel fulfillment and supply chain and logistics providers for item traceability, including parcel tracking and operating efficiencies. Based on that strong demand, I continue to believe our inlay partners will layer on additional bookings as our growing shipment volumes begin addressing our order backlog.

第二季度端點 IC 收入超出了我們的預期，創下了新的季度記錄。在零售商採用 RAIN 或庫存可見性和全渠道履行以及供應鍊和物流供應商的項目可追溯性（包括包裹跟踪和運營效率）的推動下，需求依然強勁。基於這種強勁的需求，我仍然相信，隨著我們不斷增長的出貨量開始解決我們的訂單積壓問題，我們的嵌體合作夥伴將增加預訂量。

Looking further out, I continue to see retail expansion focused on apparel, home goods and general merchandise and supply chain expansion focused on parcel shipment traceability as multiyear growth tailwinds for our endpoint ICs.

放眼更遠的地方，我繼續看到以服裝、家居用品和日用商品為重點的零售擴張以及以包裹運輸可追溯性為重點的供應鏈擴張作為我們端點 IC 的多年增長順風。

To help meet that demand over the past 18 months, we have invested in growing, diversifying and streamlining our endpoint IC post-processing. June marked a milestone in that investment with our operations team releasing a 300-millimeter post-processing flow that reduces cycle times by 25%. We are primed and ready to quickly turn any future upside wafers into shippable product.

為幫助滿足過去 18 個月的需求，我們投資於增長、多樣化和簡化我們的端點 IC 後處理。 6 月標誌著該投資的一個里程碑，我們的運營團隊發布了 300 毫米的後處理流程，可將周期時間縮短 25%。我們已做好準備，可以迅速將任何未來的上行晶圓轉變為可交付的產品。

Second quarter systems revenue also exceeded our expectations. Reader ICs were a bright spot, recovering from last quarter's post-processing challenges and setting a new quarterly revenue record. Looking forward, I expect strong third quarter e-family reader IC volumes and growing supply of e-family ICs to help drive record annual reader IC revenue.

第二季度系統收入也超出了我們的預期。閱讀器 IC 是一個亮點，它從上一季度的後處理挑戰中恢復過來，並創造了新的季度收入記錄。展望未來，我預計第三季度電子家庭閱讀器 IC 的強勁銷量和電子家庭 IC 供應的增長將有助於推動創紀錄的年度閱讀器 IC 收入。

Reader revenue also exceeded our expectations with our operations team securing more second quarter supply than we had anticipated. Our Gateway revenue performed in line with expectations, led by shipments to the visionary European retailers expanded loss prevention deployment. In June, we launched our new Impinj E910 Reader IC, offering the highest performance of any reader IC on the market. Our e-family, which now includes the E310,E510, E710 and E910, brings RAIN to new classes of smart edge devices with design wins and partner handhelds, fixed readers, modules, wearables and printers.

讀者收入也超出了我們的預期，我們的運營團隊獲得了比我們預期更多的第二季度供應。我們的 Gateway 收入表現符合預期，主要是向有遠見的歐洲零售商發貨，擴大了防損部署。 6 月，我們推出了新的 Impinj E910 讀卡器 IC，提供了市場上所有讀卡器 IC 的最高性能。我們的 e 系列現在包括 E310、E510、E710 和 E910，將 RAIN 帶入新類別的智能邊緣設備，並與合作夥伴手持設備、固定閱讀器、模塊、可穿戴設備和打印機合作。

With its sibling e-family ICs, the E910 uses a common reference design and software stack, allowing our partners to quickly bring new E910 based products to market. I believe this combination of high performance and rapid time to market will further accelerate our vision of a boundless Internet of Things.

E910 與同級 e 系列 IC 一起使用通用參考設計和軟件堆棧，使我們的合作夥伴能夠快速將基於 E910 的新產品推向市場。我相信這種高性能和快速上市時間的結合將進一步加速我們對無限物聯網的願景。

On the project front, I see continued momentum in both retail and supply chain and logistics. Starting with retail, second quarter marked the return of meaningful reader revenue from the Asia-based global retailer as they expanded their self-checkout deployment into new geographies. And in my discussions with the visionary European retailer, they are pleased with the performance of our RAIN-based loss prevention offering and continue deploying as expected. I anticipate this deployment to continue generating meaningful revenue over the next several quarters.

在項目方面，我看到零售、供應鍊和物流的持續發展勢頭。從零售開始，第二季度標誌著這家總部位於亞洲的全球零售商將自助結賬部署擴展到新的地區，從而實現了有意義的讀者收入回報。在我與這家有遠見的歐洲零售商的討論中，他們對我們基於 RAIN 的防損產品的性能感到滿意，並繼續按預期進行部署。我預計此部署將在未來幾個季度繼續產生可觀的收入。

On the supply chain front, the second large North American supply chain and logistics customers, continued advancing their reader deployment, generating healthy second quarter reader revenue. I expect this customer to drive a large endpoint IC opportunity in 2023 and beyond.

在供應鏈方面，北美第二大供應鍊和物流客戶繼續推進他們的閱讀器部署，創造了健康的第二季度閱讀器收入。我預計該客戶將在 2023 年及以後推動大型端點 IC 機會。

In closing, I'd like to thank every member of the Impinj team for your tremendous effort this quarter. We delivered record revenue and growing profitability, introduced market-leading new products, advanced our platform, ensured our operations and positioned us for growth, all while navigating persistent supply challenges. With a strong team and a growing opportunity, I remain confident in our market position and energized by our strong demand. I will now turn the call over to Cary for our financial review and third quarter outlook. Cary?

最後，我要感謝 Impinj 團隊的每一位成員在本季度所做的巨大努力。我們實現了創紀錄的收入和不斷增長的盈利能力，推出了市場領先的新產品，改進了我們的平台，確保了我們的運營並為我們的增長做好了準備，同時應對持續的供應挑戰。憑藉強大的團隊和不斷增長的機會，我對我們的市場地位仍然充滿信心，並為我們的強勁需求注入活力。我現在將把電話轉給 Cary 進行我們的財務審查和第三季度展望。卡里？

Thank you, Chris, and good afternoon, everyone. On today's call, I will review our second quarter financial results and third quarter financial outlook. Second quarter revenue was $59.8 million, up 13% sequentially compared with $53.1 million in first quarter 2022 and up 27% year-over-year from $47.3 million in second quarter 2021. Second quarter endpoint IC revenue was $42.9 million, up 10% sequentially compared with $38.8 million in first quarter 2022 and up 39% year-over-year from $30.8 million in second quarter 2021.

謝謝你，克里斯，大家下午好。在今天的電話會議上，我將回顧我們的第二季度財務業績和第三季度財務展望。第二季度收入為 5980 萬美元，與 2022 年第一季度的 5310 萬美元相比，環比增長 13%，與 2021 年第二季度的 4730 萬美元相比，同比增長 27%。第二季度端點 IC 收入為 4290 萬美元，環比增長 10% 2022 年第一季度為 3880 萬美元，比 2021 年第二季度的 3080 萬美元同比增長 39%。

Close engagement with our foundry partner started paying dividends, accelerating the pace of upside wafers, which allowed us to ship more endpoint IT and drive revenue above expectations. Looking forward, we expect a sequential increase in third quarter endpoint IC revenue as we further leverage that upside wafer availability. Second quarter systems revenue was $16.9 million, up 18% sequentially compared with $14.3 million in first quarter 2022 and up 3% year-over-year from $16.5 million in second quarter 2021.

與我們的代工合作夥伴的密切合作開始帶來紅利，加快了向上晶圓的步伐，這使我們能夠交付更多的端點 IT 並推動收入超出預期。展望未來，我們預計第三季度端點 IC 收入將連續增長，因為我們進一步利用了這種向上的晶圓可用性。第二季度系統收入為 1690 萬美元，與 2022 年第一季度的 1430 萬美元相比，環比增長 18%，與 2021 年第二季度的 1650 萬美元相比，同比增長 3%。

Systems revenue exceeded our expectations driven by strong reader and reader IC revenue. On a sequential basis, gateway and reader IC revenue increased while reader revenue declined. On a year-over-year basis, Reader IC and reader revenue increased, while Gateway revenue declined. Despite strong demand, we expect a slight sequential decline in third quarter systems revenue as we continue navigating component shortfalls.

在強勁的閱讀器和閱讀器 IC 收入的推動下，系統收入超出了我們的預期。從環比來看，網關和讀卡器 IC 收入增長，而讀卡器收入下降。與去年同期相比，閱讀器 IC 和閱讀器收入增加，而網關收入下降。儘管需求強勁，但隨著我們繼續解決組件短缺問題，我們預計第三季度系統收入將略有連續下降。

Second quarter gross margin was 54.7% compared with 57% in first quarter 2022 and 54.5% in second quarter 2021. The sequential decrease was driven by higher-cost wafers flowing through COGS, partially offset by product mix. The year-over-year increase was driven by endpoint IC product margins, partially offset by product mix and indirect costs.

第二季度毛利率為 54.7%，而 2022 年第一季度和 2021 年第二季度分別為 57% 和 54.5%。環比下降的原因是流經 COGS 的成本較高的晶圓，部分被產品組合所抵消。同比增長是由端點 IC 產品利潤率推動的，但部分被產品組合和間接成本所抵消。

Total second quarter operating expense was $28.8 million compared with $26.8 million in the first quarter of 2022 and $22.4 million in second quarter 2021. Research and development expense was $13.6 million. Sales and marketing expense was $6.9 million. General and administrative expense was $8.3 million. We expect similar operating expense in third quarter.

第二季度總運營費用為 2880 萬美元，而 2022 年第一季度為 2680 萬美元，2021 年第二季度為 2240 萬美元。研發費用為 1360 萬美元。銷售和營銷費用為 690 萬美元。一般和行政費用為 830 萬美元。我們預計第三季度會有類似的運營費用。

Second quarter adjusted EBITDA was $3.8 million compared with $3.5 million in first quarter of 2022 and $3.3 million in second quarter 2021. Second quarter adjusted EBITDA margin was 6.4%. And even as we grow adjusted EBITDA, we continue investing in our business. Second quarter GAAP net loss was $11.5 million. Second quarter non-GAAP net income was $3 million or $0.11 per share.

第二季度調整後 EBITDA 為 380 萬美元，而 2022 年第一季度為 350 萬美元，2021 年第二季度為 330 萬美元。第二季度調整後 EBITDA 利潤率為 6.4%。即使我們增長調整後的 EBITDA，我們也會繼續投資於我們的業務。第二季度 GAAP 淨虧損為 1150 萬美元。第二季度非公認會計原則淨收入為 300 萬美元或每股 0.11 美元。

Turning to the balance sheet. We ended the second quarter with cash, cash equivalents and investments of $183.7 million compared with $193.4 million in first quarter 2022 and $112 million in second quarter 2021. The sequential cash decline was due primarily to us repurchasing the remaining $9.9 million aggregate principal of our 2026 convertible notes or $17.6 million plus accrued interest.

轉向資產負債表。我們在第二季度結束時的現金、現金等價物和投資為 1.837 億美元，而 2022 年第一季度為 1.934 億美元，2021 年第二季度為 1.12 億美元。現金連續下降主要是由於我們回購了 2026 年剩餘的 990 萬美元總本金可轉換票據或 1760 萬美元加上應計利息。

Inventory totaled $32 million, up slightly from the prior quarter. Second quarter net cash provided by operating activities was $7.2 million. Property and equipment purchases totaled $700,000. Free cash flow was $6.5 million.

庫存總額為 3200 萬美元，略高於上一季度。第二季度經營活動提供的淨現金為 720 萬美元。物業和設備採購總額為 700,000 美元。自由現金流為 650 萬美元。

Before I turn to our third quarter guidance, I want to highlight a few items unique to second quarter and also give an update on a few of our strategic initiatives. First, we took advantage of market weakness to repurchase the remaining principal of our 2026 convertible notes at more favorable prices than our November 2021 refinancing. The all-cash repurchase saves us $1.1 million in non-GAAP interest expense and removed 300,000 shares of potential dilution.

在我轉向我們的第三季度指導之前，我想強調一些第二季度獨有的項目，並更新我們的一些戰略舉措。首先，我們利用市場疲軟，以比 2021 年 11 月再融資更優惠的價格回購了 2026 年可轉換票據的剩餘本金。全現金回購節省了 110 萬美元的非公認會計原則利息費用，並消除了 300,000 股的潛在稀釋。

Second, reader component shortfalls remain an ongoing challenge and will limit our third quarter reader production. From our current vantage point, we expect third quarter reader revenue to decline sequentially and reader supply to remain constrained through the year-end.

其次，閱讀器組件短缺仍然是一個持續的挑戰，將限制我們第三季度的閱讀器產量。從我們目前的角度來看，我們預計第三季度閱讀器收入將環比下降，閱讀器供應在年底前仍將受到限制。

Third, equipment purchase timing drove a sequential decline in second quarter capital expenditures. We expect that timing to reverse in the third quarter and continue to expect 2022 CapEx spending to be similar to 2021.

第三，設備採購時機推動第二季度資本支出環比下降。我們預計這一時機將在第三季度逆轉，並繼續預計 2022 年的資本支出支出將與 2021 年相似。

Finally, with the recent increases in wafer supply from our foundry partner, we expect endpoint IC revenue to grow sequentially in both the third and fourth quarters. Regardless, given our strong endpoint IC demand, we expect supply rather than demand to pace revenue growth into 2023.

最後，隨著我們的代工合作夥伴最近增加晶圓供應，我們預計端點 IC 收入將在第三和第四季度連續增長。無論如何，鑑於我們強勁的端點 IC 需求，我們預計到 2023 年，供應而非需求將推動收入增長。

Turning to our outlook. We expect third quarter revenue between $63.5 million and $65.5 million, a 43% year-over-year increase at the midpoint compared with $45.2 million in third quarter 2021. We expect adjusted EBITDA between $5.1 million and $6.6 million. On the bottom line, we expect non-GAAP net income between $4 million and $5.5 million, reflecting non-GAAP earnings per share between $0.15 and $0.20.

轉向我們的前景。我們預計第三季度收入在 6350 萬美元至 6550 萬美元之間，與 2021 年第三季度的 4520 萬美元相比，中點同比增長 43%。我們預計調整後的 EBITDA 將在 510 萬美元至 660 萬美元之間。歸根結底，我們預計非 GAAP 淨收入在 400 萬美元至 550 萬美元之間，反映非 GAAP 每股收益在 0.15 美元至 0.20 美元之間。

In closing, I want to highlight that at its midpoint, our outlook reflects record revenue, adjusted EBITDA and non-GAAP net income per share, demonstrating the operating leverage in our business. I also want to thank our Impinj team, our customers, our suppliers and you, our investors, for your contributions and your ongoing support. I will now turn the call to the operator to open the question-and-answer session. MJ?

最後，我想強調的是，在中點，我們的展望反映了創紀錄的收入、調整後的 EBITDA 和非公認會計準則每股淨收入，展示了我們業務的經營槓桿。我還要感謝我們的 Impinj 團隊、我們的客戶、我們的供應商和您，我們的投資者，感謝您的貢獻和持續的支持。我現在將呼叫轉給接線員以打開問答環節。喬丹？

Thank you. We will now begin the question-and-answer session. (Operator Instructions) The first question comes from Jim Ricchiuti with Needham & Company.

謝謝你。我們現在開始問答環節。 （操作員說明）第一個問題來自 Needham & Company 的 Jim Ricchiuti。

I wanted to focus first on the systems business. You might begin to see some easing in some of the component shortages that you indicated, I guess, are going to persist through the second half. I mean, should that begin to get better? And how does that look potentially entering 2023? Do you feel like there's going to be better availability where you'll be able to meet the demand that you're seeing?

我想首先關注系統業務。您可能會開始看到一些組件短缺情況有所緩解，我猜想，這些短缺將持續到下半年。我的意思是，這應該開始好轉嗎？進入 2023 年，這看起來如何？您是否覺得會有更好的可用性來滿足您所看到的需求？

So Jim, thanks for the question. I'll take the first part of it, and then I'll hand off to Cary. So we had previously indicated in our first quarter call that we expected to see an ability to supply through the latter half of the year. We had some decommits of a few key components that we had line of sight to last quarter, and that led to our revised statement this time around. And Cary, I'll hand it off to you in terms of the go-forward estimates.

所以吉姆，謝謝你的問題。我會拿它的第一部分，然後我會交給卡里。因此，我們之前在第一季度電話會議中表示，我們預計將在下半年看到供應能力。我們已經取消了一些我們在上個季度看到的關鍵組件，這導致我們這次修改了聲明。卡里，我會根據前進的估計把它交給你。

So Jim, thanks for the question. This is Cary. These component shortfalls have been a reality of our life for several quarters at this point. And it's an ebb and flow. We take a step forward, we take a step back, and we're constantly trying to outmaneuver them. The operation as an engineering team have done an outstanding job of navigating what seems to be a new list of component shortfalls every quarter.

所以吉姆，謝謝你的問題。這是卡里。在這一點上，這些組件短缺已經成為我們生活中幾個季度的現實。這是一個潮起潮落。我們向前邁出一步，我們後退一步，我們不斷地試圖以策略戰勝他們。作為一個工程團隊的運作在每個季度都完成了一個似乎是新的組件短缺列表的導航工作。

As I look to the future right now, I think those shortfalls are going to impact us in Q3, which is why despite having strong demand, I signaled that Reader and Gateway revenue would be down slightly sequentially. We'll still be constrained in Q4, but there's a lot of time between now and Q4 and I have confidence in the team to where I think we'll be at least flat to hopefully slightly up in Q4 on the Reader and Gateway business.

當我現在展望未來時，我認為這些短缺將在第三季度影響我們，這就是為什麼儘管需求強勁，但我表示 Reader 和 Gateway 的收入將環比略有下降。我們在第四季度仍然會受到限制，但從現在到第四季度還有很多時間，我對團隊有信心，我認為我們至少會在第四季度持平，希望在閱讀器和網關業務上略有上升。

And my follow-up question just relates to what you're seeing from your foundry partner. I guess, some encouraging signs that potentially things might be easing a bit, and you're seeing a little better allocation. How did that trend as you went through the quarter? And how is that trending thus far in Q3?

我的後續問題與您從代工合作夥伴那裡看到的有關。我想，一些令人鼓舞的跡象表明情況可能會有所緩和，並且您會看到更好的分配。在您度過本季度時，這種趨勢如何？到目前為止，第三季度的趨勢如何？

Jim, this is Chris. How it's trending is we're seeing incremental wafer upsides and the pace seems -- it's gradually increasing. We're also seeing some incremental pull-ins of scheduled deliveries. And as I said in my prepared remarks, we're guardedly optimistic that, that trend will continue.

吉姆，這是克里斯。它的趨勢是，我們看到了晶圓的增量上漲，而且速度似乎 - 它正在逐漸增加。我們還看到一些預定交付的增量拉入。正如我在準備好的講話中所說，我們謹慎樂觀地認為，這種趨勢將繼續下去。

However, our process notes and the processes we're in still remain really tight. And we are still significantly supply constrained and will be well into the third quarter and looking into the second half of the year. So although there is a little bit of daylight, we would like to see a lot more daylight going forward.

但是，我們的流程說明和我們所處的流程仍然非常嚴格。而且我們仍然受到嚴重的供應限制，並將持續到第三季度並展望今年下半年。因此，儘管有一點點日光，但我們希望看到更多的日光。

Yes. And maybe I can add to that as well, Jim. I think over the last several quarters, you've heard us give almost a 2-quarter outlook on supply, and we've been saying we're going to be equal or exceed. So kind of keeping flattish to slightly up supply in the 2 out quarters, coming in the following quarter. This is the first time that we've had enough supply visibility to say confidently that we're going to increase our endpoint IC shipments in Q3 and then increase them again in Q4. That's great news, but it's still, to Chris' point, well short of the demand that's out there.

是的。吉姆，也許我也可以補充一下。我認為在過去的幾個季度中，您已經聽說我們給出了近 2 個季度的供應前景，我們一直在說我們將達到或超過。因此，在接下來的兩個季度中，供應量保持平穩以略微增加。這是我們第一次有足夠的供應可見性，可以自信地說我們將在第三季度增加端點 IC 出貨量，然後在第四季度再次增加。這是個好消息，但在 Chris 看來，這仍然遠遠低於市場需求。

And what Cary noted shipments, those are -- we spoke to revenue in the prepared remarks, the shipment volumes are also increasing.

Cary 指出的出貨量是——我們在準備好的評論中談到了收入，出貨量也在增加。

The next question comes from Harsh Kumar with Piper Sandler.

下一個問題來自 Harsh Kumar 和 Piper Sandler。

First of all, strong congratulations on what you're doing, managing to grow in this tough environment, particularly in challenging economics and congratulations on that. On the topic of supply, again, my understanding is the mobile and the PC guys are experiencing some weakness and they're backing off. You're helping out the foundries by stepping in and taking the place.

首先，非常祝賀你所做的事情，在這個艱難的環境中成功成長，特別是在充滿挑戰的經濟環境中，並祝賀你。關於供應的話題，我的理解是移動端和 PC 端正在經歷一些弱點，他們正在退縮。你通過介入並佔據位置來幫助鑄造廠。

So I'm curious what happens when those guys come back. They're bigger than you, but you're hopping out and you're taking the first part now in a lot of situations with this incremental capacity. When they come back, let's say, March or June quarter of next year, do you get put back in line? Or do you continue to take that first part in the incremental capacity? And then I do have a follow-up.

所以我很好奇當那些傢伙回來時會發生什麼。他們比你大，但你正在跳出來，你現在在很多情況下都在以這種增量容量參與第一部分。當他們回來時，比方說，明年三月或六月季度，你會重新排隊嗎？或者您是否繼續參與增量容量的第一部分？然後我確實有後續行動。

So Harsh, I will do my best on that question here. So as I said in answering Jim's question, supply in our process nodes still remains tight. So I want to be a little cautious in the words helping out our foundry just because the supply is tight. Now, our foundry partner has indicated to us that we are a priority -- a high priority for wafer upsides. And we have had that prioritization for an extended period of time.

太苛刻了，我會在這個問題上盡力而為。因此，正如我在回答 Jim 的問題時所說，我們工藝節點的供應仍然很緊張。所以我想在幫助我們代工廠的時候稍微謹慎一點，因為供應緊張。現在，我們的代工合作夥伴向我們表明，我們是優先事項——晶圓上漲的高度優先事項。我們已經有很長一段時間了。

I believe that the demand in our market, the potential for the future will cause us to maintain a high level of prioritization, both for existing wafers and upside wafers. So yes, other industries are today larger. There will come a time in the future when RAIN RFID is going to be larger. So we're working closely with our foundry partner to maintain our prioritization and to continue to get wafer upsides. I can't speak to what's going to happen in the latter part of next year, but we're going to do everything we can across all fronts to ensure that we get continued supply upsides and maintain that supply going forward.

我相信，我們市場的需求和未來的潛力將使我們對現有晶圓和上行晶圓都保持高優先級。所以，是的，今天其他行業規模更大。將來會有一段時間，RAIN RFID 會變得更大。因此，我們正在與我們的代工合作夥伴密切合作，以保持我們的優先順序並繼續獲得晶圓優勢。我無法談論明年下半年會發生什麼，但我們將在各個方面盡我們所能，以確保我們獲得持續的供應上行空間並保持供應向前發展。

Appreciate the clarity. Chris. My follow-up was on your logistics customers. Last quarter, it was the first time I think you talked about the big logistics customer which brought us customer #2, having potentially revenues in our shipping endpoint ICs in next year 2023. Then you reiterated it again on this earnings call. I was curious about your puts and takes on what can cause that program to happen? And what can cause that program to maybe push -- to be pushed back? Just I'd be curious, some color on pros and cons of the situation there.

欣賞清晰度。克里斯。我跟進的是你們的物流客戶。上個季度，我認為您第一次談到給我們帶來了客戶 #2 的大型物流客戶，在 2023 年我們的運輸端點 IC 有潛在的收入。然後您在本次財報電話會議上再次重申了這一點。我很好奇你的看跌期權和承擔什麼可能導致該計劃發生？什麼會導致該程序可能被推——被推回？只是我很好奇，那裡的情況的利弊有所不同。

So I'm going to start by saying we're very excited about that program and working with the customer and the needs of that customer are associated with parcel traceability and visibility into the items moving through essentially their supply chain, if you want to call it, a supply their shipments.

因此，我首先要說，我們對該計劃和與客戶合作感到非常興奮，如果您想致電，該客戶的需求與包裹可追溯性和對基本上通過其供應鏈的物品的可見性相關聯它，一個供應他們的貨物。

The opportunity for them is to reduce missed shipments, reduce errors and handling, reduce or basically improve labor efficiencies, reduce manual scans and overall approve automation in their system. So the opportunity for us is to demonstrate with the end customer, those gains. And to the extent that we demonstrate those gains quickly, they're going to adopt quickly. And to the extent that there's some challenges along the way, whether it has to do with readability or integration or other things, there can be some delays. So it's like any other program. Program is going to be paced by the successes.

他們的機會是減少錯過的貨物，減少錯誤和處理，減少或基本上提高勞動效率，減少手動掃描並在他們的系統中全面批准自動化。因此，我們的機會是向最終客戶展示這些收益。並且在我們快速展示這些收益的範圍內，他們將迅速採用。並且在此過程中存在一些挑戰，無論是與可讀性、集成還是其他事情有關，都可能存在一些延遲。所以它就像任何其他程序一樣。計劃將根據成功進行。

To date, they are pleased with the level of deployment. We are pleased with the results. We continue working closely with that customer, and we're going to do our very best to make that program successful.

迄今為止，他們對部署水平感到滿意。我們對結果感到滿意。我們將繼續與該客戶密切合作，我們將盡最大努力使該計劃取得成功。

Chris, can I just ask on that, wouldn't all this sort of testing and qualification be done at this point in time already passed all that sort of like the testing and the qualification type work at this point?

克里斯，我可以問一下，在這個時間點完成的所有這些測試和資格認證不是已經通過了所有類似的測試和資格認證類型的工作嗎？

So Harsh, so the answer is yes and no. Yes, early testing deployments piloting things, but at scale. The world changes a little bit. And as you deploy at scale, cover challenges that neither side had anticipated. You have to work through just overall scaling in the operational infrastructure. So it is an ongoing joint effort to make that program successful.

如此苛刻，所以答案是肯定的和否定的。是的，早期的測試部署是試驗性的，但是是大規模的。世界發生了一點點變化。當您大規模部署時，應對雙方都沒有預料到的挑戰。您必須通過運營基礎架構的整體擴展來工作。因此，要使該計劃取得成功是一項持續的共同努力。

So like I said, I do feel great about where we are, great about the results they've achieved to date, and yet we've got to stay on the ball. We really do. And help them to navigate challenges that come along, and we will continue to do so. That program is an incredibly high priority for us. We're going to put in the effort that we can from our side to help make it successful.

所以就像我說的，我對我們現在的狀態感覺很好，對他們迄今為止取得的成果也很好，但我們必須保持穩定。我們真的這樣做。並幫助他們應對隨之而來的挑戰，我們將繼續這樣做。該計劃對我們來說是一個令人難以置信的高度優先事項。我們將盡我們所能幫助它取得成功。

Our next question is from Troy Jensen of Lake Street Capital.

我們的下一個問題來自 Lake Street Capital 的 Troy Jensen。

So Cary, did I hear you right? You said OpEx was flat on a sequential basis. And I mean if I just go back in my history from you guys, Chris, it feels like you're always -- this market is huge. We're going to invest in the upside to accelerate business now. And it sounds like leverage is more kind of in your sights right now. So just curious to know if you guys could talk about operating margin targets or kind of growth? Or how long would you kind of try to keep the OpEx at a flatter type basis or slower growth?

卡里，我沒聽錯嗎？您說運營支出按順序持平。我的意思是，如果我只是從你們那裡回顧我的歷史，克里斯，感覺就像你們總是——這個市場是巨大的。我們現在將投資於上行以加速業務。聽起來你現在更關注槓桿。所以只是想知道你們是否可以談論營業利潤率目標或增長方式？或者，您會嘗試將 OpEx 保持在更平坦的基礎上或緩慢增長多長時間？

Yes. So Troy, thanks for the question. The flat OpEx is not an indication of lack of investment or slowing investment. It's more an artifact of the big step up we took in Q2, some of which was timing related, that timing, not repeating and incremental investment taking its place to keep us at a flat spot. So the investment continues. We're more excited than ever. We've got a lot of things that we want to work on, and we're making sure that our team has the fuel to do that.

是的。所以特洛伊，謝謝你的問題。 OpEx 持平並不表示投資不足或投資放緩。這更像是我們在第二季度邁出的一大步的產物，其中一些與時間有關，時間，而不是重複和增量投資取而代之，以使我們保持平穩。所以投資還在繼續。我們比以往任何時候都更興奮。我們有很多想做的事情，我們正在確保我們的團隊有足夠的動力去做這件事。

Now, taking a step back and looking more broadly, following the 2020 COVID downturn, we were focused on getting to adjusted EBITDA breakeven. Our expectations have evolved, and our goal now is to generate adjusted EBITDA profitability. We delivered second quarter adjusted EBITDA profitability, and we're guiding our third quarter to expanding adjusted EBITDA profitability even in a supply-constrained environment.

現在，在 2020 年 COVID 低迷之後，退後一步，放眼更廣泛的領域，我們專注於實現調整後的 EBITDA 盈虧平衡。我們的期望已經發生了變化，我們現在的目標是產生調整後的 EBITDA 盈利能力。我們實現了第二季度調整後 EBITDA 盈利能力，我們正在指導第三季度擴大調整後 EBITDA 盈利能力，即使在供應受限的環境中也是如此。

And even as we continue investing in our business, we remain focused on delivering that adjusted EBITDA profitability. Our next step in the cycle will be moving towards generating free cash flow.

即使我們繼續投資於我們的業務，我們仍然專注於提供調整後的 EBITDA 盈利能力。我們在周期中的下一步將朝著產生自由現金流的方向發展。

Any targets you want to give us, Cary, or kind of we got to wait and see.

你想給我們的任何目標，Cary，或者我們必須拭目以待。

Not right now, Troy.

現在不行，特洛伊。

Okay. Then my follow-up here -- so I think I know the answer to this question, but I just want to get it out there. So assuming you guys are going to have great sequential growth for the next 2 quarters and your IC, the tag sales, would you expect to still have a book-to-bill greater than 1 and exit the year with record backlog level above where it is currently?

好的。然後我在這裡跟進——所以我想我知道這個問題的答案，但我只是想把它拿出來。因此，假設你們在接下來的 2 個季度將有很大的連續增長，並且您的 IC，即標籤銷售，您是否期望仍然有一個大於 1 的訂單出貨量並以高於創紀錄的積壓水平退出這一年目前？

So I'm going to start on that one. Our bookings are paced today by supply. And so as I said in my prepared remarks, as we begin addressing that supply backlog, I expect our partners to layer on additional bookings. And so we feel very good about our position in the market in terms of demand. We feel very good about our position in the market in terms of bookings we have and the incremental bookings we expect to get. But I think you should be looking at as a supply limited bookings opportunity. Anything you'd like to add?

所以我要從那個開始。我們今天的預訂是按供應量計算的。正如我在準備好的評論中所說，當我們開始解決供應積壓的問題時，我希望我們的合作夥伴能夠增加額外的預訂。因此，就需求而言，我們對我們在市場中的地位感到非常滿意。就我們擁有的預訂量和我們期望獲得的增量預訂量而言，我們對我們在市場上的地位感到非常滿意。但我認為您應該將其視為供應有限的預訂機會。你有什麼要補充的嗎？

This is Jeff. I was just going to add that we are well booked into 2023. And yet at the same time, given the strength of the demand environment, we do anticipate our inlay partners will layer in additional bookings as supply continues to improve.

這是傑夫。我只是想補充一點，我們在 2023 年的預訂量很大。但與此同時，鑑於需求環境的強勁，我們確實預計隨著供應的不斷改善，我們的嵌體合作夥伴將增加額外的預訂。

And then, Troy, I would just add, remember that historically, this is a business that turns 50% in the quarter. So being well booked into 2023 is pretty substantial.

然後，特洛伊，我只想補充一點，請記住，從歷史上看，這是一項在本季度實現 50% 的業務。因此，2023 年的預訂量非常可觀。

Our next question is from Scott Searle of ROTH Capital.

我們的下一個問題來自 ROTH Capital 的 Scott Searle。

Nice to see supply loosening up a little bit as we move into the back half of this year. Chris, maybe just to jump in on the wafer visibility front. It sounds like things are continuing to improve. You're getting some upside, but you're still under shipping demand by 50%. As you're talking to your foundry partner and looking into 2023, I'm wondering what kind of indications you're getting for incremental wafers and allocation on that front. And do you expect that in 2023, that we start to get back into supply-demand balance or really too soon to call?

隨著我們進入今年下半年，很高興看到供應有所放鬆。克里斯，也許只是為了進入晶圓可見性前沿。聽起來事情正在繼續改善。你得到了一些好處，但你的運輸需求仍然低於 50%。當您與您的代工合作夥伴交談並展望 2023 年時，我想知道您在這方面獲得了哪些關於增量晶圓和分配的跡象。您是否預計到 2023 年，我們開始恢復供需平衡，或者真的為時過早？

Yes. So Scott, I'm going to answer the latter part of the question first. I think it's too soon to call. To the question I had earlier from Harsh about demand picking up back in the latter half of 2023 for other products. It's just -- given the kind of macro crosscurrents we're seeing, given the foundries building capacity at some nodes and with all these pieces swirling around, it's really -- it's too early to call what's going to happen in '23.

是的。所以斯科特，我將首先回答問題的後半部分。我認為現在打電話還為時過早。對於我早些時候從 Harsh 那裡得到的關於 2023 年下半年其他產品的需求回升的問題。只是 - 考慮到我們所看到的宏觀逆流，考慮到代工廠在某些節點上建設產能，並且所有這些部件都在旋轉，真的 - 現在說 23 年會發生什麼還為時過早。

In terms of where we're focused right now, we're focused on the latter half of '22. So we're working with our partner -- our foundry partner, on getting upside and pull-ins for the remainder of this year to drive as much of the opportunity as we can to this year, and then we'll be transitioning our focus over to 2023. So I prefer not to speak much about 2023 right now because it's still a ways away. We'll be working with our foundry partner to both build our base and potential for upsides that's in terms of wafer volumes looking into 2023.

就我們現在的關注點而言，我們關注的是 22 年下半年。因此，我們正在與我們的合作夥伴——我們的代工合作夥伴合作，在今年餘下的時間裡獲得上漲和拉動，以盡可能多地將機會帶到今年，然後我們將轉移我們的重點到 2023 年。所以我現在不想過多談論 2023 年，因為它還有很長的路要走。我們將與我們的代工合作夥伴合作，建立我們的基礎和潛在的上升空間，即到 2023 年的晶圓產量。

Fair enough. And if I could, following up on the gross margin front, you guys are doing a good job on that front. You've got mix, right, in terms of systems and endpoint ICs this quarter. But looking a little bit further out, some of the foundries are talking about increasing their prices as we're going into 2023.

很公平。如果可以的話，跟進毛利率方面，你們在這方面做得很好。就本季度的系統和端點 IC 而言，你已經得到了混合。但再往前看，一些代工廠商正在談論在我們進入 2023 年時提高價格。

I wonder if you could talk a little bit, again, I know it's on the horizon, but how you're thinking about pricing as you go into the second half of this year in 2023. Is there an ability to raise some prices, keep steady? Do you come back to giving annual price negotiations as we go into the first quarter of next year or given the supply constraints that we get a pass on that front this year? And how do you manage any sort of the incremental foundry costs that are going up?

我想知道您是否可以再談一下，我知道它即將到來，但是當您進入 2023 年下半年時，您是如何考慮定價的。是否有能力提高一些價格，保持穩定的？當我們進入明年第一季度時，您是否會重新進行年度價格談判，或者考慮到我們今年在這方面獲得通過的供應限制？您如何管理任何不斷上升的增量代工成本？

Scott, great question. This is Jeff. We continue to monitor and evaluate all cost inputs into our model, and we work closely with our partners to pass through those costs to their end customers. Our primary objective is to protect the integrity of the gross margin model. So we feel good about our pricing position today and the expectations that we're setting for our partners and in turn, for their end customers as we proceed into 2023.

斯科特，好問題。這是傑夫。我們將繼續監控和評估我們模型中的所有成本投入，並與我們的合作夥伴密切合作，將這些成本轉嫁給他們的最終客戶。我們的主要目標是保護毛利率模型的完整性。因此，我們對我們今天的定價地位以及我們為合作夥伴設定的期望以及在我們進入 2023 年的最終客戶設定的期望感到滿意。

Yes. And Scott, I would add that last quarter, we guided gross margin in the 53% to 54% range. I think that is the right spot for us right now. Based on our current view in the supply and the resulting sales mix, we're trending towards the higher end of that range as we look into Q3.

是的。斯科特，我要補充一點，上個季度，我們指導毛利率在 53% 到 54% 的範圍內。我認為這對我們來說是正確的位置。根據我們目前對供應的看法和由此產生的銷售組合，在我們展望第三季度時，我們正朝著該範圍的高端發展。

And if you deconstruct our outlook and assume a flattish OpEx, you'll see that we're signaling about a 54% gross margin for Q3. Looking further out, we anticipate future 300-millimeter endpoint IC innovation to drive additional opportunities for gross margin accretion.

如果你解構我們的前景並假設運營支出持平，你會看到我們發出的第三季度毛利率約為 54% 的信號。展望未來，我們預計未來 300 毫米端點 IC 創新將推動毛利率增加的更多機會。

(Operator Instructions) Seeing no further questions, this concludes our question-and-answer session. I would like to turn the conference back over to Chris Diorio, Co-Founder and CEO, for any closing remarks.

（操作員說明）沒有其他問題，我們的問答環節到此結束。我想將會議轉回給聯合創始人兼首席執行官克里斯·迪奧里奧（Chris Diorio），以發表任何結束語。

Thank you, MJ. I'd like to thank you all for joining the call today, and I hope you and you loved ones are and remain safe and well. Thank you very much. Bye-bye.

謝謝你，MJ。我要感謝大家今天加入電話會議，我希望你和你所愛的人都平安無事。非常感謝。再見。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。