(PI) 2023 Q1 法說會逐字稿

Welcome to the Impinj First Quarter 2023 Financial Results Earnings Conference Call and Webcast. (Operator Instructions)

歡迎來到 Impinj 2023 年第一季度財務業績收益電話會議和網絡廣播。 （操作員說明）

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

現在，我想將會議轉交給戰略財務副總裁安迪·科布 (Andy Cobb) 先生。請繼續。

Thank you, operator. Good afternoon and thank you all for joining us to discuss Impinj's first quarter 2023 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, Impinj's CFO, will follow with a detailed review of our first quarter 2023 financial results and second quarter outlook. We will then open the call for questions. Jeff Dossett, Impinj's CRO, will join us for the Q&A. You can find management's prepared remarks, plus trended financial data, on the Investor Relations section of the company's website.

謝謝你，運營商。下午好，感謝大家加入我們討論 Impinj 2023 年第一季度的業績。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。 Impinj 的首席財務官 Cary Baker 隨後將詳細審查我們 2023 年第一季度的財務業績和第二季度的展望。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。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。

We will make statements in this call about the financial performance and future expectations that are 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 such statements are subject to risks and uncertainties. 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 law.

我們將在本次電話會議中就基於我們截至今日的展望的財務業績和未來預期發表聲明。根據 1995 年《私人證券訴訟改革法案》，任何此類陳述都是前瞻性的。雖然我們認為我們有合理的基礎來做出這些前瞻性陳述，但我們的實際結果可能會出現重大差異，因為任何此類陳述都存在風險和不確定性。我們在向美國證券交易委員會提交的年度和季度報告中描述了這些風險和不確定性。除非法律要求，否則我們不承擔並明確否認任何更新或更改我們的前瞻性陳述的義務。

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 GAAP. Please refer to our earnings release for a reconciliation of our non-GAAP financial metrics to the most comparable GAAP metrics.

在今天的電話會議上，除收入之外的所有財務指標，或者我們明確聲明的其他指標，都是非 GAAP。資產負債表和現金流量指標是公認會計原則。請參閱我們的收益發布，了解我們的非 GAAP 財務指標與最具可比性的 GAAP 指標的對賬情況。

Before turning to our results and outlook, note that we will participate in the UBS Global Industrials and Transportation Conference on June 6th in New York; Baird's Global Consumer, Technology and Services Conference on June 7th in New York; and Roth's London Conference on June 21st. Also, we will host an Investor Day on June 13th in Seattle. We look forward to connecting with many of you at those events.

在轉向我們的結果和展望之前，請注意我們將參加 6 月 6 日在紐約舉行的瑞銀全球工業和運輸會議； Baird 的全球消費者、技術和服務會議於 6 月 7 日在紐約舉行；和羅斯在 6 月 21 日舉行的倫敦會議。此外，我們將於 6 月 13 日在西雅圖舉辦投資者日活動。我們期待在這些活動中與你們中的許多人建立聯繫。

I will now turn the call over to Chris.

我現在將電話轉給克里斯。

Thank you, Andy. And thank you all for joining the call. Our first quarter set a strong start to the year. Revenue hit a new quarterly record. Our multi-quarter endpoint IC backlog, underpinned by our solutions engagements with enterprise end users, is very strong. And our wafer supply is finally improving, allowing us to use our balance sheet to begin building inventory to support that backlog as well as anticipated future growth.

謝謝你，安迪。感謝大家加入電話會議。我們的第一季度為今年開了個好頭。收入創下新的季度記錄。在我們與企業最終用戶的解決方案合作的支持下，我們的多個季度端點 IC 積壓非常強勁。我們的晶圓供應終於得到改善，使我們能夠利用我們的資產負債表開始建立庫存以支持積壓訂單以及預期的未來增長。

Starting with endpoint ICs, first quarter revenue exceeded our expectations, setting a record for the 7th consecutive quarter. That performance was driven by underlying demand, increasing IC supply and our inlay partners rebuilding their safety stock.

從端點 IC 開始，第一季度收入超出我們的預期，連續第 7 個季度創下紀錄。這一業績是由潛在需求、IC 供應增加以及我們的嵌體合作夥伴重建安全庫存推動的。

Coming off that strong first quarter, we see several crosscurrents that should drive second quarter endpoint IC revenue to be flat sequentially. First, enterprise program expansions and new use cases, the latter built significantly on our solutions efforts, are the main drivers of our endpoint IC growth. From today's vantage point, even though every meaningful enterprise deployment with which we are involved is progressing, each is also delayed relative to our expectations by several months, all for their own reasons but most traceable back to prior supply disruptions and our inability to predict the precise timing and pace of large deployments.

在經歷了強勁的第一季度後，我們看到一些逆流應該會推動第二季度端點 IC 收入環比持平。首先，企業計劃擴展和新用例，後者顯著建立在我們的解決方案工作之上，是我們端點 IC 增長的主要驅動力。從今天的角度來看，儘管我們參與的每個有意義的企業部署都在取得進展，但每個部署也都比我們的預期延遲了幾個月，這都是出於各自的原因，但最可追溯到之前的供應中斷和我們無法預測大型部署的精確時間和節奏。

Second, product shortfalls stalled many early opportunities and restarting those opportunities will take time. And finally, as our IC supply recovers, we see our inlay partners slowing their safety stock growth. In summary, our demand remains healthy, our backlog remains very strong and we expect robust full-year endpoint IC growth but see a second quarter pause.

其次，產品短缺阻礙了許多早期機會，重新啟動這些機會需要時間。最後，隨著我們的 IC 供應恢復，我們看到我們的嵌體合作夥伴放慢了他們的安全庫存增長。總而言之，我們的需求仍然健康，我們的積壓訂單仍然非常強勁，我們預計全年端點 IC 增長強勁，但第二季度會出現停頓。

Beginning with those enterprise deployments, we received a PO for the third phase of the loss prevention deployment at the visionary European retailer. This phase is roughly 75% the size of the prior phase, starts in second quarter, spans several quarters and will drive incremental endpoint IC volumes. We continue to be excited by the self-checkout and loss prevention use case and see expansion opportunities at this retailer and at others.

從這些企業部署開始，我們收到了這家富有遠見的歐洲零售商第三階段防損部署的採購訂單。這一階段的規模大約是前一階段的 75%，從第二季度開始，跨越幾個季度，並將推動端點 IC 數量的增加。我們繼續對自助結賬和防損用例感到興奮，並看到了這家零售商和其他零售商的擴張機會。

In retail general merchandise, we expect strong second half 2023 endpoint IC demand growth from category expansion at the large North American retailer. And on the supply chain and logistics front, we see very strong partner demand for our reader ICs, used in printer encoders, for our second large North American end user. We expect that end user to drive large endpoint IC volumes in second half 2023 and beyond.

在零售日用商品中，我們預計 2023 年下半年端點 IC 需求將因北美大型零售商的品類擴張而強勁增長。在供應鍊和物流方面，我們看到合作夥伴對我們的第二大北美最終用戶用於打印機編碼器的讀取器 IC 的需求非常強勁。我們預計最終用戶將在 2023 年下半年及以後推動大量端點 IC 的生產。

Turning to the early opportunities, I am pleased by our progress with Impinj Authenticity and expect meaningful second quarter Impinj M775 endpoint IC volumes for tax tracking as well as healthcare and specialty foods. I am also excited about book and magazine tracking in Japan, a use case we pioneered years ago, that we expect will consume several hundred million endpoint ICs in 2023. We are well positioned to capitalize on these early opportunities.

談到早期機會，我對我們在 Impinj Authenticity 方面取得的進展感到高興，並預計第二季度 Impinj M775 端點 IC 量將用於稅收跟踪以及醫療保健和特色食品。我也對日本的書籍和雜誌跟踪感到興奮，這是我們多年前開創的一個用例，我們預計到 2023 年將消耗數億個端點 IC。我們已準備好利用這些早期機會。

On the supply front, wafer availability will finally catch up to demand in the second quarter. Between support from our foundry partner and our post-processing investments, we look to avoid a repeat of our painful 2021 and 2022 shortfalls by building appropriate inventory. For readers, we entered the second quarter with significant backlog, but stubborn tightness in a few components means we will likely carry significant reader backlog into third quarter. For reader ICs, demand for our legacy Indy products was strong, even as our partners began ramping 65 announced E-family-based products to production, with more than 75 new products in development.

在供應方面，晶圓供應將在第二季度最終趕上需求。在代工合作夥伴的支持和我們的後處理投資之間，我們希望通過建立適當的庫存來避免 2021 年和 2022 年痛苦的短缺重演。對於讀者來說，我們進入第二季度時有大量積壓，但一些組件的頑固緊張意味著我們可能會將大量讀者積壓到第三季度。對於閱讀器 IC，即使我們的合作夥伴開始將 65 種已發布的基於 E 系列的產品投入生產，並且有超過 75 種新產品正在開發中，但對我們傳統 Indy 產品的需求依然強勁。

Turning to our organization, in April we acquired Voyantic, the industry leader in solutions for inlay design, measurement and test. With leading end users relying on our platform to transform their operations, this acquisition expands our solutions footprint to advance the quality, reliability and readability of the partner inlays used in those enterprise deployments. Perhaps most important to a successful integration, the cultural fit between the two teams is very strong. I have worked closely with and trusted the Voyantic leadership for the better part of 15 years and I'm thrilled to have them, and the very experienced Voyantic team, as part of the Impinj family.

談到我們的組織，我們在 4 月收購了 Voyantic，它是嵌體設計、測量和測試解決方案的行業領導者。由於領先的最終用戶依賴我們的平台來轉變他們的運營，此次收購擴大了我們解決方案的足跡，以提高這些企業部署中使用的合作夥伴嵌體的質量、可靠性和可讀性。也許對成功整合最重要的是，兩個團隊之間的文化契合度非常高。在 15 年的大部分時間裡，我一直與 Voyantic 領導層密切合作並信任他們，我很高興他們和經驗豐富的 Voyantic 團隊成為 Impinj 家族的一員。

I am also thrilled to welcome Miron Washington to Impinj's board. Miron has 25 years' experience in business-to-consumer and business-to-business ecommerce, global supply chain operations, digital transformation and multi-billion-dollar P&L ownership. His knowledge and experience in our target market verticals will pay dividends on our journey to connect every item in our everyday world. Miron, welcome to the Impinj family.

我也很高興地歡迎 Miron Washington 加入 Impinj 的董事會。 Miron 在企業對消費者和企業對企業電子商務、全球供應鏈運營、數字化轉型和數十億美元的損益所有權方面擁有 25 年的經驗。他在我們的目標市場垂直領域的知識和經驗將為我們連接日常生活中每件物品的旅程帶來紅利。 Miron，歡迎來到 Impinj 大家庭。

Before I close, I'd like to thank every member of the Impinj team for your unflagging effort on so many fronts, from new product development to scaling our operational capabilities to delighting our many customers. I feel honored by my incredible good fortune to work with you.

在我結束之前，我要感謝 Impinj 團隊的每一位成員，感謝你們在許多方面的不懈努力，從新產品開發到擴展我們的運營能力，再到取悅我們的眾多客戶。能與您共事，我感到非常榮幸。

In closing, from today's vantage point, I see first half 2023 as a transition from product shortfalls and project delays to timely shipments against growing opportunities. Looking to second half 2023, I see secular market growth, strong Impinj backlog and our platform solutions efforts paying dividends. As we continue driving our bold vision, I remain confident in our market position and energized by the opportunities ahead.

最後，從今天的有利角度來看，我認為 2023 年上半年是從產品短缺和項目延遲到及時發貨的過渡，以應對不斷增長的機會。展望 2023 年下半年，我看到了長期的市場增長、強勁的 Impinj 積壓訂單以及我們的平台解決方案努力帶來的回報。隨著我們繼續推動我們的大膽願景，我仍然對我們的市場地位充滿信心，並對未來的機遇充滿活力。

I will now turn the call over to Cary for our financial review and second quarter outlook. Cary?

我現在將電話轉給 Cary 進行我們的財務審查和第二季度展望。卡里？

Thank you, Chris, and good afternoon, everyone. On today's call, I will review our first quarter financial results and second quarter financial outlook.

謝謝克里斯，大家下午好。在今天的電話會議上，我將回顧我們的第一季度財務業績和第二季度財務展望。

First quarter revenue was $85.9 million, up 12% sequentially compared with $76.6 million in fourth quarter 2022 and up 62% year-over-year from $53.1 million in first quarter 2022 First quarter endpoint IC revenue was $67 million, up 14% sequentially compared with $58.7 million in fourth quarter 2022 and up 73% year-over-year from $38.8 million in first quarter 2022. Improving supply drove first quarter revenue above our expectations. Looking to second quarter, we expect the project timing and first quarter strength Chris mentioned to now result in similar endpoint IC revenue to first quarter.

第一季度收入為 8590 萬美元，與 2022 年第四季度的 7660 萬美元相比環比增長 12%，與 2022 年第一季度的 5310 萬美元相比環比增長 62% 第一季度端點 IC 收入為 6700 萬美元，與 2022 年第四季度相比環比增長 14% 2022 年第四季度為 5870 萬美元，比 2022 年第一季度的 3880 萬美元同比增長 73%。供應的改善推動第一季度收入超出我們的預期。展望第二季度，我們預計 Chris 提到的項目時間安排和第一季度實力現在將導致與第一季度相似的端點 IC 收入。

First quarter systems revenue was $18.8 million, up 6% sequentially compared with $17.9 million in fourth quarter 2022 and up 31% year-over-year from $14.3 million in first quarter 2022. First quarter systems revenue exceeded our expectations, driven by strong reader IC, reader and gateway shipments. On a sequential basis, reader and reader IC revenue increased while gateway revenue decreased. On a year-over-year basis, gateway and reader IC revenue increased while reader revenue decreased. Looking ahead, we expect a slight sequential decrease in second quarter systems revenue, as stubborn component shortfalls more than offset Voyantic revenue.

第一季度系統收入為 1880 萬美元，較 2022 年第四季度的 1790 萬美元環比增長 6%，較 2022 年第一季度的 1430 萬美元同比增長 31%。第一季度系統收入超出我們的預期，這得益於強大的閱讀器 IC 、閱讀器和網關出貨量。按順序，閱讀器和閱讀器 IC 收入增加，而網關收入減少。與去年同期相比，網關和閱讀器 IC 收入增加，而閱讀器收入減少。展望未來，我們預計第二季度系統收入將略有下降，因為頑固的組件短缺抵消了 Voyantic 的收入。

First quarter gross margin was 52.4%, compared with 53.8% in fourth quarter 2022 and 57% in first quarter 2022. The sequential decrease was driven by both endpoint IC product margins, specifically indirect costs related to ramping 300 millimeter post-processing, and systems product margins, specifically the lower mix of E-family reader ICs. The year-over-year decrease was driven by lower endpoint IC product margins, specifically a smaller specialty and industrial IC mix. Looking to second quarter, we expect our gross margin to return to the 53% to 54% range.

第一季度毛利率為 52.4%，而 2022 年第四季度為 53.8%，2022 年第一季度為 57%。連續下降的原因是端點 IC 產品利潤率，特別是與 300 毫米後處理和系統相關的間接成本產品利潤率，特別是 E 系列讀卡器 IC 的較低組合。同比下降的原因是端點 IC 產品利潤率較低，特別是較小的專業和工業 IC 組合。展望第二季度，我們預計我們的毛利率將回到 53% 至 54% 的範圍。

Total first quarter operating expense was $36.4 million, compared with $29.5 million in fourth quarter 2022 and $26.8 million in first quarter 2022. Research and development expense was $17.3 million. Sales and marketing expense was $7.7 million. General and administrative expense was $11.4 million. We expect a slight sequential decrease in second quarter operating expense.

第一季度總運營費用為 3640 萬美元，而 2022 年第四季度為 2950 萬美元，2022 年第一季度為 2680 萬美元。研發費用為 1730 萬美元。銷售和營銷費用為 770 萬美元。一般和行政費用為 1140 萬美元。我們預計第二季度營業費用將略有下降。

First quarter adjusted EBITDA was $8.6 million, compared with $11.8 million in fourth quarter 2022 and $3.5 million in first quarter 2022. First quarter adjusted EBITDA margin was 10.0% First-quarter GAAP net loss was $4.4 million. First quarter non-GAAP net income was $8.7 million or $0.30 per share on a fully diluted basis.

第一季度調整後 EBITDA 為 860 萬美元，而 2022 年第四季度為 1180 萬美元，2022 年第一季度為 350 萬美元。第一季度調整後 EBITDA 利潤率為 10.0% 第一季度 GAAP 淨虧損為 440 萬美元。第一季度非 GAAP 淨收入為 870 萬美元或完全攤薄後每股 0.30 美元。

Turning to the balance sheet, we ended first quarter with cash, cash equivalents and investments of $164.7 million, compared with $192.9 million in fourth quarter 2022 and $193.4 million in first quarter 2022. Inventory totaled $85.8 million, up $39.4 million from the prior quarter, with endpoint IC raw materials and WIP driving the increase.

談到資產負債表，我們在第一季度末的現金、現金等價物和投資為 1.647 億美元，而 2022 年第四季度為 1.929 億美元，2022 年第一季度為 1.934 億美元。存貨總額為 8580 萬美元，比上一季度增加 3940 萬美元，端點 IC 原材料和 WIP 推動增長。

First quarter net cash used by operating activities was $26.6 million. Property and equipment purchases totaled $7.6 million. Free cash flow was negative $34.2 million, including $39.4 million for inventory growth.

第一季度經營活動使用的現金淨額為 2660 萬美元。財產和設備採購總額為 760 萬美元。自由現金流為負 3,420 萬美元，其中包括用於存貨增長的 3,940 萬美元。

Before turning to our second quarter guidance, I want to highlight a few items unique to our results and outlook First, as Chris mentioned, we acquired Voyantic, our first acquisition in many years. This tuck-in deal advances our solutions efforts and will both grow revenue and expand gross margin.

在轉向我們的第二季度指導之前，我想強調一些與我們的結果和前景不同的項目。首先，正如克里斯提到的，我們收購了 Voyantic，這是我們多年來的首次收購。這筆收購交易推進了我們的解決方案工作，並將增加收入和擴大毛利率。

Second, although we began rebuilding wafer inventory in first quarter, we do not anticipate having a sustainable amount of 300 millimeter endpoint IC finished goods inventory until at least third quarter 2023. Today, our unit backlog significantly exceeds our inventory.

其次，儘管我們在第一季度開始重建晶圓庫存，但我們預計至少要到 2023 年第三季度才能擁有可持續數量的 300 毫米端點 IC 成品庫存。今天，我們的單位積壓大大超過了我們的庫存。

Finally, from a profitability standpoint, first quarter operating expense exceeded our expectations, due to litigation spend ahead of our scheduled trial dates. That $4.2 million spend was $1.3 million more than we expected, pushing our first quarter adjusted EBITDA below the low end of our guidance. Looking ahead, we expect second quarter adjusted EBITDA margin expansion and anticipate third and fourth quarter operating expense to be below the first half run rate.

最後，從盈利能力的角度來看，第一季度的運營費用超出了我們的預期，這是因為訴訟支出早於我們預定的審判日期。這 420 萬美元的支出比我們預期的多 130 萬美元，使我們第一季度調整後的 EBITDA 低於我們指導的低端。展望未來，我們預計第二季度調整後的 EBITDA 利潤率將擴大，並預計第三和第四季度的運營費用將低於上半年的運行率。

Turning to our outlook, we expect second quarter revenue between 84 and $87 million, compared with $59.8 million in second quarter 2022, a 43% year-over-year increase at the midpoint. We expect adjusted EBITDA between 8.8 and $10.3 million. On the bottom line, we expect non- GAAP net income between 8.2 and $9.7 million, reflecting non-GAAP fully diluted earnings per share between $0.28 and $0.33.

談到我們的前景，我們預計第二季度收入在 84 至 8700 萬美元之間，而 2022 年第二季度為 5980 萬美元，中點同比增長 43%。我們預計調整後的 EBITDA 在 8.8 到 1030 萬美元之間。最重要的是，我們預計非 GAAP 淨收入在 8.2 至 970 萬美元之間，反映出 0.28 美元至 0.33 美元之間的非 GAAP 完全攤薄每股收益。

In closing, I want to thank the Impinj team, our customers, our suppliers and you, our investors, for your ongoing support. I will now turn the call to the operator to open the question-and-answer session. Operator?

最後，我要感謝 Impinj 團隊、我們的客戶、我們的供應商以及您，我們的投資者，感謝您一直以來的支持。我現在將電話轉給接線員以打開問答環節。操作員？

(Operator Instructions) Today's first question comes from Harsh Kumar with Piper Sandler.

（操作員說明）今天的第一個問題來自 Harsh Kumar 和 Piper Sandler。

I had 2 questions. Chris, when I listened to your commentary, it seems like the end demand is fine. You're going to what I would call as growing pains kind of fixing a few things. How would you characterize the end demand? And then historically, we've always thought of Impinj as a 25% to 30% grower at least in this phase of its life cycle. Do you think with a flattish first and second quarter, that number is jeopardy or would you still be in a position to be able to talk about that kind of growth rate for the year?

我有兩個問題。克里斯，當我聽你的評論時，最終需求似乎很好。你將要解決一些問題，我稱之為成長的煩惱。您如何描述最終需求？然後從歷史上看，我們一直認為 Impinj 至少在其生命週期的這個階段至少有 25% 到 30% 的增長。你認為第一季度和第二季度持平，這個數字是危險的，還是你仍然能夠談論今年的那種增長率？

So to take the first part of your question, the end-user demand remains strong. We have not seen any pullbacks of any significance in any of the programs we've been working with. What we have seen is just due to the difficulty in predicting the pace and timing of those deployments and just -- and for many of them, given their sheer size, we see a bit of a push to the right. That said, our backlog remains strong, our backlog, which is going into those programs remains strong. And we see that backlog driving multi-quarter growth at those large programs. So that's why in my prepared remarks, I used the word pause. It's a bit of a pause in the second quarter as we see a growing demand into the third quarter.

因此，就您問題的第一部分而言，最終用戶的需求依然強勁。在我們一直在使用的任何程序中，我們都沒有看到任何重大的回調。我們所看到的只是由於難以預測這些部署的速度和時間，而且只是 - 對於其中許多，鑑於它們的龐大規模，我們看到了一些向右的推動。也就是說，我們的積壓量仍然很大，進入這些計劃的積壓量仍然很大。我們看到積壓推動了這些大型項目的多季度增長。所以這就是為什麼在我準備好的發言中，我使用了暫停這個詞。隨著我們看到第三季度的需求增長，第二季度有點停頓。

For the latter part of your question in terms of overall inventory -- I'm sorry, (inaudible) inventory overall unit -- revenue growth for the year, we do see a strong year, we only guide 1 quarter at a time. We do see robust full-year endpoint IC growth and the industry unit volume CAGR going back over the past decade has been between 25% and 30%. And we don't see any reason why that unit volume CAGR is going to change given the demand we still see out in the market.

對於你關於整體庫存的問題的後半部分——對不起，（聽不清）庫存整體單位——今年的收入增長，我們確實看到了強勁的一年，我們一次只指導一個季度。我們確實看到了強勁的全年端點 IC 增長，過去十年的行業單位體積複合年增長率在 25% 到 30% 之間。鑑於我們仍然在市場上看到的需求，我們看不出單位體積複合年增長率會發生變化的任何原因。

And then for my second and I guess last question, I'll get back in queue. I wanted to ask about the second logistics customer. Presumably, they'll be taking billions of ICs. So while, I guess, would we not see the benefits sooner than that? I guess I'm asking about the lag between depletion of inventory for that customer and the inlay partners and the resumption of orders that you might see from the inlay partners?

然後是我的第二個問題，我想是最後一個問題，我會回到隊列中。我想問一下第二個物流客戶。據推測，他們將採用數十億個 IC。所以，我想，我們不會比這更早看到好處嗎？我想我問的是該客戶和鑲嵌合作夥伴的庫存耗盡與您可能從鑲嵌合作夥伴那裡看到的訂單恢復之間的滯後？

And then another question we get is, how much share do you keep at these kind of applications with like, let's say, the second logistics customer?

然後我們得到的另一個問題是，你在這類應用程序中與第二個物流客戶保持多少份額？

Sure. So to answer the first part of your question, the timing of the deployment is currently a ramp. So it's early days for that deployment. But there are significant systems efforts going on now on -- as I mentioned in my prepared remarks, the printer and coder side, to put printers in the facilities to be able to encode the label, there's other efforts around other parts of the reading infrastructure. So you should really be thinking of that deployment as ramping and we are a bit delayed relative to our expectations in terms of where the ramp is.

當然。所以要回答你問題的第一部分，部署的時間目前是一個斜坡。因此，該部署還處於早期階段。但是現在正在進行重大的系統工作——正如我在準備好的評論中提到的，打印機和編碼器方面，將打印機放在設施中以便能夠對標籤進行編碼，還有其他圍繞閱讀基礎設施其他部分的努力.因此，您真的應該將該部署視為斜坡部署，相對於我們對斜坡位置的預期，我們有點延遲。

In terms of our share of those deployments, as you know, we have been working very hard to advance our entire platform to enable solutions for these enterprises and that solution includes many elements of our platform, including our endpoint ICs to basically use our know-how, our entire platform, the better together combined performance of our overall systems to advance our platform and our ability really to meet the end customers' needs. And to the extent that we can deliver against those end customer needs and outperform the competition, I expect us to maintain very good share at those accounts.

正如您所知，就我們在這些部署中所佔份額而言，我們一直在非常努力地推進我們的整個平台，為這些企業提供解決方案，該解決方案包括我們平台的許多元素，包括我們的端點 IC，基本上使用我們的知識-我們的整個平台如何更好地結合我們整個系統的性能來提升我們的平台和我們真正滿足最終客戶需求的能力。就我們能夠滿足這些最終客戶的需求並超越競爭對手而言，我希望我們在這些客戶中保持很好的份額。

The next question comes from Jim Ricchiuti with Needham & Company.

下一個問題來自 Needham & Company 的 Jim Ricchiuti。

I just wanted to go a little bit more deeply if we can into the delays that you're noting with respect to some of these enterprise deployments. Can you give a sense how many customers we're talking about? And how confident are you that these delays are partly a function of supply chain challenges that you've experienced? Or I think there's obviously some macro headwinds out there. So how confident are you that it's not the latter?

如果我們可以深入了解您注意到的與其中一些企業部署有關的延遲，我只是想更深入一點。你能知道我們談論的客戶有多少嗎？您對這些延誤的部分原因是您所經歷的供應鏈挑戰有多大信心？或者我認為那裡顯然存在一些宏觀逆風。那麼你有多大信心不是後者？

To answer your question, we are confident in those deployments. We see no indication that they're pulling back. And in fact, we see strength in systems and in systems demand to be able to service the infrastructure needs for those deployments. And as I mentioned in our prepared remarks, we just won the third phase of deployment at the visionary European retailer. We're seeing significant reader IC demand into the second large North American supply chain and logistics customer to build out some of the infrastructure. So we are confident those programs are going forward and we're confident in our position at those accounts.

為了回答您的問題，我們對這些部署充滿信心。我們沒有看到他們撤退的跡象。事實上，我們看到了系統和系統需求的優勢，能夠滿足這些部署的基礎設施需求。正如我在準備好的發言中提到的那樣，我們剛剛贏得了這家有遠見的歐洲零售商的第三階段部署。我們看到對第二大北美供應鍊和物流客戶的大量閱讀器 IC 需求，以構建一些基礎設施。因此，我們有信心這些計劃正在向前推進，我們對我們在這些賬戶中的地位充滿信心。

But the delays are built on many factors, one of them being just the headwinds we faced earlier in terms of product availability. And it's not just the endpoint IC product availability, it's systems product availability as well. So delays in that product availability certainly impacted the timing of those project ramps, as just answer [for harsh] the sheer size and scale of what these enterprises are attempting.

但延遲是基於許多因素，其中之一就是我們早些時候在產品可用性方面面臨的阻力。這不僅僅是端點 IC 產品的可用性，它也是系統產品的可用性。因此，產品可用性的延遲肯定會影響這些項目的啟動時間，因為這只是對這些企業正在嘗試的規模和規模的 [嚴酷] 的回答。

And so I feel very good about the opportunities. Of course, we're in regular engagement with these end customers. We are confident in the future. As I said just a minute ago, we still expect to see significant full-year endpoint IC growth. But just given the timing and pace of some of these large deployments, things have moved to the right just a bit. And the move to the right is measured in months. We're not talking a huge move to the right. We're not talking multi-quarters here. We're talking months.

所以我對這些機會感覺很好。當然，我們會定期與這些最終客戶接觸。我們對未來充滿信心。正如我剛才所說，我們仍然期望看到全年端點 IC 的顯著增長。但考慮到其中一些大型部署的時間和步伐，事情已經向右移動了一點。向右移動以月為單位。我們不是在談論向右的巨大轉變。我們不是在這裡談論多宿舍。我們說的是幾個月。

And my follow-up question is just regarding the 300-millimeter post processing, how satisfied are you with the pace at which you're scaling is, because it also appears to have been one of the nagging issues that's been holding you back a little bit.

我的後續問題只是關於 300 毫米的後期處理，你對縮放的速度有多滿意，因為它似乎也是讓你有點退縮的煩人問題之一少量。

Correct. And we have built out our post-processing capability to get ahead of the demand from these enterprise deployments. And I do not anticipate us being limited by post-processing capacity in the second half of this year. We'll be -- we're getting caught up on wafers, by the end of the quarter, will -- 300-millimeter wafer availability will finally have caught up to demand. And our goal is not to be limited by post-processing or by wafer availability in the second half of the year, and I believe we will achieve that goal.

正確的。我們已經建立了我們的後處理能力，以領先於這些企業部署的需求。而且我預計我們不會在今年下半年受到後處理能力的限制。我們將 - 我們將在本季度末趕上晶圓，將 - 300 毫米晶圓的可用性最終將滿足需求。我們的目標是在下半年不受後處理或晶圓可用性的限制，我相信我們會實現這個目標。

The next question comes from Mike Walkley with Canaccord Genuity.

下一個問題來自 Mike Walkley 和 Canaccord Genuity。

Maybe I'll start with Cary. Just want to dig into the inventory a little more. It's the highest in company history. Is there like some system side in there that are nearly done and [you're] waiting on some stubborn components? Or is this overall where you want inventory going forward as you're building up capacity for that endpoint demand? Or should it come down a little bit? Just trying to get a feel for, is this the right inventory level going forward? Or do you think you maybe need to build even more?

也許我將從卡里開始。只是想多挖掘一下庫存。這是公司歷史上最高的。是否有一些系統方面快要完成了，[你] 正在等待一些頑固的組件？或者這是您在為該端點需求建立容量時希望庫存繼續增長的總體情況？還是應該降一點？只是想感受一下，這是未來正確的庫存水平嗎？或者你認為你可能需要建造更多？

Yeah, it is a record inventory level. I would also remind you, it's also a record revenue for Impinj as well. Most of the growth, as I noted in my prepared remarks were endpoint ICs specifically raw materials and (inaudible). As we think about our strategy, Fortune 500 companies rely on Impinj to supply RAIN products that they're using to transform and run their business. We -- it's no secret that we let them down in 2021 and 2022, where we couldn't get enough supply and we don't want to do that again. We are on a path to build appropriate level of inventory that supports growth expectations and also incorporates our foundry partners' signal of wafer tightness in our nodes in 2024.

是的，這是一個創紀錄的庫存水平。我還要提醒您，這也是 Impinj 的創紀錄收入。正如我在準備好的評論中指出的那樣，大部分增長是端點 IC，特別是原材料和（聽不清）。當我們考慮我們的戰略時，財富 500 強公司依靠 Impinj 提供 RAIN 產品，他們正在使用這些產品來轉變和運營他們的業務。我們 - 眾所周知，我們在 2021 年和 2022 年讓他們失望了，我們無法獲得足夠的供應，我們不想再這樣做了。我們正在建立適當的庫存水平，以支持增長預期，並在 2024 年將我們的代工合作夥伴的晶圓供應緊張信號納入我們的節點。

Today's backlog, which comprises, non-refundable, non-cancelable orders with requestings primarily in 2023, significantly exceeds the level of inventory that we have today. So we're comfortable with where we are. We expect to build a little bit more in front of these growth opportunities.

今天的積壓訂單包括主要在 2023 年提出請求的不可退款、不可取消的訂單，大大超過了我們今天的庫存水平。所以我們對我們所處的位置感到滿意。我們希望在這些增長機會面前做更多的事情。

And Mike, this is Chris. I think I'll just to reemphasize the point that Cary made, our inventory growth is being built on program growth that we're seeing at these Fortune 500 enterprises. So new programs, new expansions, significant program expansions that we want to make sure go forward and we're building the appropriate inventory to be able to service those opportunities.

邁克，這是克里斯。我想我只是想再次強調 Cary 提出的觀點，我們的庫存增長是建立在我們在這些財富 500 強企業中看到的項目增長的基礎上的。因此，我們希望確保繼續進行的新計劃、新擴展、重大計劃擴展，我們正在構建適當的庫存，以便能夠為這些機會提供服務。

You seem confident in that second half of the year ramp. Now that supply/demand starting to reach balance into the second half of the year, can you maybe remind longer-term investors that seasonality of your business that tends to be stronger in that third quarter? And maybe how we should think about seasonality in the second half of the year?

您似乎對今年下半年的增長充滿信心。現在供需開始在下半年達到平衡，您能否提醒長期投資者，您的業務的季節性在第三季度往往更強？也許我們應該如何考慮下半年的季節性？

This is Cary. I'll take that one for Chris. So yes, historical seasonality has been such where endpoint IC revenue and volumes peak in Q3 before declining in Q4. And that's a result of our largest vertical being retail apparel. Today, we haven't seen normal seasonality in a couple of years now, probably 3 years at this point. So I'll provide a little bit more color on how we see the business progressing, the end point when I see business progressing today. Starting first with, we continue to expect strong full year endpoint IC growth. Our 2023 growth continues to be underpinned by enterprise program and expansion and new use cases that are significantly leveraging our platform solutions.

這是卡里。我會拿那個給克里斯。所以是的，歷史季節性是這樣的，端點 IC 收入和銷量在第三季度達到頂峰，然後在第四季度下降。這是我們最大的垂直零售服裝的結果。今天，我們已經有幾年沒有看到正常的季節性了，此時可能已經有 3 年了。因此，我將提供更多關於我們如何看待業務進展的顏色，這是我今天看到業務進展的終點。首先，我們繼續期待全年端點 IC 的強勁增長。我們 2023 年的增長繼續得到企業計劃和擴張以及顯著利用我們平台解決方案的新用例的支持。

We're now modeling Q2 end point I see revenue flat because, as Chris mentioned, some of those big programs have slipped to the right by about a quarter. As a result, our growth expectations have also time shifted for about a quarter. So growth that we expected in Q2 moves to Q3 and Q3 to Q4, etc. So accordingly, we expect endpoint IC revenue to grow sequentially in Q3 and then again in Q4, so different than historical seasonality.

我們現在正在對第二季度的終點進行建模，我認為收入持平，因為正如克里斯提到的那樣，其中一些大型項目已經向右下滑了大約四分之一。因此，我們的增長預期也發生了大約四分之一的時間偏移。因此，我們預計第二季度的增長將轉移到第三季度，第三季度轉移到第四季度，等等。因此，我們預計端點 IC 收入將在第三季度連續增長，然後在第四季度再次增長，這與歷史季節性不同。

And last question, just a logical one on the systems side, with some of these things pause, would that have a decline maybe midyear and then grow again? Or how you're thinking about the systems business?

最後一個問題，只是系統方面的一個合乎邏輯的問題，其中一些事情暫停了，可能會在年中下降然後再次增長嗎？或者您如何看待系統業務？

Yes. So no, so a quarter ago, we guided systems to be flat in Q2 because we anticipated improving component supply. That supply has improved, but we're guiding Q2 systems down slightly sequentially because we're prioritizing supply for the third phase of the European retailers' self-checkout and loss prevention deployment, because a few components remain stubbornly tight. That deployment will begin in Q2 and then ramp in the back half of the year. As a result, we anticipate second half systems revenue to exceed the first half. And I think here, I think Q3 and Q4 follow typical seasonality where systems business is strongest in the fourth quarter.

是的。所以不，所以一個季度前，我們指導系統在第二季度持平，因為我們預計組件供應會改善。供應有所改善，但我們正在引導第二季度系統略微下降，因為我們正在優先考慮歐洲零售商自助結賬和防損部署的第三階段的供應，因為一些組件仍然非常緊張。該部署將在第二季度開始，然後在今年下半年開始。因此，我們預計下半年系統收入將超過上半年。而且我認為在這裡，我認為第三季度和第四季度遵循典型的季節性，其中系統業務在第四季度最為強勁。

(Operator Instructions) The next question comes from Natalia Winkler with Jefferies.

（操作員說明）下一個問題來自 Jefferies 的 Natalia Winkler。

I wanted to ask, Chris, if you can help us with some color on the retail, apparel and penetration. So trying to figure out here if -- how has that changed over the last couple of years? How has the attach rate for the Impinj IC tax has changed? And trying really to understand if we should expect the retail business to now kind of trend together with the retail industry and if the retail inventories build may be now kind of showing for you as well?

我想問，克里斯，你是否可以幫助我們在零售、服裝和滲透方面提供一些顏色。所以想在這裡弄清楚 - 在過去幾年中發生了怎樣的變化？ Impinj IC 稅的附加稅率有何變化？並試圖真正了解我們是否應該期望零售業務現在與零售業一起出現某種趨勢，以及零售庫存的增加現在是否也可以向您展示？

Yes. So we have estimated for the retail apparel and [traded] between 20% and 25%. And so yes, I think it's fair to assume that if you look at probably 2/3 of the endpoint IC market demand today before these new opportunities ramp is probably tied to retail era as the retail apparel market goes a significant portion of the RAIN RFID demand goes. And when I say goes, I mean there's positive way, it goes up, you go after. It goes down a little bit, we go down a little bit. So what we saw a bit in first quarter was a more retail apparel inventory digestion than we and our partners had previously expected, a little less pull-through of endpoint ICs and therefore, our partners begin being able to build healthy levels or getting to healthy levels of inventory.

是的。因此，我們估計零售服裝和 [交易] 在 20% 到 25% 之間。所以是的，我認為可以公平地假設，如果你看看今天可能有 2/3 的端點 IC 市場需求，那麼這些新機會的增加可能與零售時代有關，因為零售服裝市場佔據了 RAIN RFID 的很大一部分需求去。當我說的時候，我的意思是有積極的方式，它上升，你去追求。它下降了一點，我們下降了一點。因此，我們在第一季度看到的是零售服裝庫存的消化比我們和我們的合作夥伴之前預期的要多，端點 IC 的拉動略少，因此，我們的合作夥伴開始能夠建立健康的水平或達到健康的水平庫存水平。

We still see a bit of inventory growth in the second quarter. If retail apparel demand is to pick up in the second quarter, some of that inventory growth in second quarter will turn to pull through, but we are carefully watching the retail apparel market because it provides a pull for a significant portion of the endpoint IC that we deliver today. And we do see significant retail opportunities still ahead of us as we talk about the second (inaudible). We talked about the visionary European retailer. I know it's opportunities like that and others, including for our self-checkout and loss prevention use case that we think will keep driving retail apparel attach above the 25% range.

我們仍然看到第二季度的庫存有所增長。如果零售服裝需求在第二季度回升，那麼第二季度的部分庫存增長將轉為持續，但我們正在密切關注零售服裝市場，因為它為端點 IC 的很大一部分提供了動力我們今天交付。當我們談論第二個（聽不清）時，我們確實看到重要的零售機會仍然擺在我們面前。我們談到了有遠見的歐洲零售商。我知道有這樣的機會和其他機會，包括我們的自助結賬和防損用例，我們認為這將繼續推動零售服裝附加值超過 25%。

And then for my second question, Chris, would you mind providing a little bit more color on the acquisition you guys have made? And what's -- how should we think about it from the strategic yield portfolio?

然後是我的第二個問題，克里斯，你介意為你們所做的收購提供更多色彩嗎？什麼是 - 我們應該如何從戰略收益組合中考慮它？

I'd be happy to. So Voyantic is the industry leader in the solutions to ensure inlay quality, reliability and readability. We acquired Voyantic for that skill set, particularly as it pertains to our enterprise opportunities, the ones we've been talking about, this business transformation relies specifically on that inlay quality, reliability and readability. So we saw an opportunity here with Voyantic, a known leadership team, a known team overall significant strength in RAIN RFID, very experienced team and really key to ensuring that the labels that go into the enterprise solutions and there are partner labels, partner in lays, but they really form part of the overall solution we as a company are focusing on delivering.

我很樂意。因此，Voyantic 是確保嵌體質量、可靠性和可讀性的解決方案的行業領導者。我們收購 Voyantic 是為了獲得該技能組合，特別是因為它與我們的企業機會有關，我們一直在談論的那些，這種業務轉型特別依賴於鑲嵌質量、可靠性和可讀性。因此，我們在這裡看到了 Voyantic 的機會，這是一個知名的領導團隊，一個知名的團隊，在 RAIN RFID 方面整體實力顯著，非常有經驗的團隊，對於確保進入企業解決方案的標籤以及合作夥伴標籤、外包合作夥伴來說非常關鍵，但它們確實構成了我們作為一家公司專注於交付的整體解決方案的一部分。

We want to be there with our partners, helping them and our enterprise end customers to ensure the quality and reliability and readability of those products. So basically, we want to continue to have more pieces of the solution to make sure the solution works. And so that was where the Voyantic acquisition fit and we are thrilled to have them as part of the Impinj family.

我們希望與我們的合作夥伴一起，幫助他們和我們的企業最終客戶確保這些產品的質量、可靠性和可讀性。所以基本上，我們希望繼續擁有更多的解決方案，以確保解決方案有效。這就是收購 Voyantic 的契機，我們很高興他們成為 Impinj 家族的一部分。

The next question comes from Scott Searle with Roth MKM.

下一個問題來自 Scott Searle 和 Roth MKM。

Maybe quickly to dive in on the OpEx, I wanted to get a couple of clarifications. It sounds like sequentially, things start to flatten out a little bit there. But could you talk about what the expectation is in the second half of this year net of litigation? And then could you recap for us again the litigation expectation in the first quarter and the second quarter?

也許很快就會深入了解 OpEx，我想得到一些澄清。聽起來好像順序地，那裡的事情開始變得平淡了一點。但是你能談談今年下半年扣除訴訟後的預期嗎？然後您能否再次為我們回顧一下第一季度和第二季度的訴訟預期？

So we -- I highlighted in my prepared remarks that litigation-related spend was $4.2 million in the quarter. And it was a little bit higher than we thought just because the timing of deliverables to the court got pulled in versus what I had thought would happen early when we built the guide. As you think about our OpEx for the quarter, adjusting for legal spend in the second quarter, adjusting for the incremental OpEx associated with the Voyantic acquisition, we expect OpEx to decline in the second quarter.

所以我們——我在準備好的發言中強調，本季度與訴訟相關的支出為 420 萬美元。它比我們想像的要高一點，因為向法院交付的時間與我在構建指南時預計會提前發生的時間相比有所延遲。當您考慮我們本季度的運營支出、調整第二季度的法律支出、調整與 Voyantic 收購相關的增量運營支出時，我們預計第二季度的運營支出將下降。

And then if you look to the second half of the year, we expect third quarter and fourth quarter to be below the first half run rate for OpEx. I can't put a timeline on the legal spend that follows the path of the courts, but I will continue updating you on how that factors into our expense.

然後，如果您展望下半年，我們預計第三季度和第四季度的 OpEx 運行率將低於上半年。我無法按照法院的路徑確定法律支出的時間表，但我會繼續向您介紹這如何影響我們的支出。

If you were just to back out the legal spend -- the litigation-related legal spend from our first quarter and just do the straight math on it, it would suggest an 18% operating margin for the business.

如果你只是退出法律支出——我們第一季度與訴訟相關的法律支出，然後直接計算一下，這表明該業務的營業利潤率為 18%。

And if I could, just to follow up on the acquisition. What does that do -- are there some other metrics around it in terms of number of employees, what you expect that to do to the revenue opportunity on a per customer basis and/or if you're kind of dipping your toe a little bit into what your inlay partners do? Or is this something that's welcomed by them?

如果可以的話，只是跟進收購。這有什麼作用——在員工人數方面是否有其他一些指標，你期望這對每個客戶的收入機會有什麼影響，和/或你是否有點試探性你的鑲嵌夥伴做什麼？或者這是他們所歡迎的東西？

And lastly, if I could, the pipeline for the systems opportunity, it sounds like Phase 3 rollout is certainly going to be favorable in the second half of this year. But I'm wondering if you could address how else that pipeline is filling up on the system side with new projects, diversifications into other industries, application into use cases?

最後，如果可以的話，系統機會的管道，聽起來第 3 階段的推出肯定會在今年下半年受到歡迎。但我想知道你是否可以解決管道在系統方面如何填充新項目、其他行業的多樣化、應用到用例中的問題？

So Scott, I will take the Voyantic financial impact and I'll hand it to Chris with --

所以斯科特，我將承擔 Voyantic 的財務影響，我將把它交給克里斯——

We probably have Scott -- I mean, probably have Jeff talk a little bit about the pipeline.

我們可能有 Scott——我的意思是，可能有 Jeff 談了一些關於管道的事情。

Okay. All right. So the way to think about Voyantic, it's is a small tuck-in deal. We have high hopes to grow the revenue from it, but it's small revenue at this point. It will be reported in our systems line. It is a gross margin that will be accretive. So think of it as -- at the top end of our systems business. So we'll expect a little bit of a lift from it as that revenue line grows.

好的。好的。所以考慮 Voyantic 的方式，它是一個小的折入交易。我們對從中增加收入寄予厚望，但目前收入很小。它將在我們的系統行中報告。這是一個會增加的毛利率。所以把它想像成——在我們系統業務的頂端。因此，隨著收入線的增長，我們預計它會有所提升。

Scott, this is Jeff. I'll just speak a little bit to the systems pipeline. The systems pipeline remains strong and is building in its diversity, both by industry sector and geographic. So there's still lots of opportunity in our focus, industry sectors, retail and supply chain and logistics. In retail, as Chris noted, on increasing focus and interest in the area of enhancing the shopper experience via self-checkout and the related and important role of loss prevention in supporting that shopper experience in supply chain and logistics, all the way from freight to a small package, it's clear that the industry is embracing the RAIN RFID opportunity to improve visibility, and I'm excited about the plans for new offerings to those supply chain and logistics customers that provide premium visibility and new revenue streams for those supply chain and logistics leaders.

斯科特，這是傑夫。我將簡單談談系統管道。系統管道仍然很強大，並且正在建立其多樣性，包括行業部門和地域。因此，我們關注的行業、零售和供應鏈以及物流領域仍有很多機會。正如 Chris 指出的那樣，在零售業，人們越來越關注和關注通過自助結賬增強購物者體驗的領域，以及防損在支持供應鍊和物流中的購物者體驗方面的相關重要作用，從貨運到一個小包裝，很明顯，該行業正在擁抱 RAIN RFID 提高知名度的機會，我很高興為這些供應鍊和物流客戶提供新產品的計劃，這些產品為這些供應鍊和物流客戶提供了優質的知名度和新的收入來源物流領導者。

And then as was noted in the script, I'm also encouraged by the progress of the pipeline with respect to Impinj authenticity. We're seeing our partner ecosystem and leading enterprises embrace the unique and differentiated approach to authenticity. And I think that creates another growth trajectory for Impinj. We're seeing emerging opportunities in food traceability reducing waste, optimizing freshness, in particular, in high-value elements of the food industry like proteins, pharmaceutical, pharmaceutical organizations are investigating supply chain safety and traceability to protect brands and consumers.

然後正如腳本中指出的那樣，我也對管道在 Impinj 真實性方面的進展感到鼓舞。我們看到我們的合作夥伴生態系統和領先企業採用獨特且差異化的真實性方法。我認為這為 Impinj 創造了另一個增長軌跡。我們在食品可追溯性方面看到了減少浪費、優化新鮮度的新興機會，特別是在蛋白質、製藥等食品行業的高價值元素方面，製藥組織正在調查供應鏈安全和可追溯性以保護品牌和消費者。

And then finally, I would say, increasingly, sustainability and the circular economy are becoming key growth opportunities for us in that inventory visibility is really at the sort of the foundation of knowing everything about everything that we manufacture, transport and sell. And when you have that visibility, you can begin to optimize your supply chain, which delivers real value into sustainability initiatives and then the circular economy when you're able to know more about each particular item upon its return into the economy for recycling or reuse. So I remain very optimistic and bullish about the growing opportunity across industry sectors and geographies.

最後，我要說的是，可持續性和循環經濟正日益成為我們的關鍵增長機會，因為庫存可見性實際上是了解我們製造、運輸和銷售的一切事物的基礎。當您擁有這種可見性時，您就可以開始優化您的供應鏈，這會為可持續發展計劃和循環經濟帶來真正的價值，因為您能夠在每個特定項目返回經濟以進行回收或再利用時了解更多信息.因此，我對跨行業和跨地區不斷增長的機會保持非常樂觀和看好。

The next question is a follow-up from Jim Ricchiuti with Needham & Company.

下一個問題是 Jim Ricchiuti 與 Needham & Company 的後續問題。

So, I think we appreciate the growth trajectory out there for the endpoint IC business. And I'm wondering, you may spend time on this. I assume you'll spend some time on this in June at the Investor Day. But how should we think about the pipeline, the line of sight, the growth prospects in the systems area of the business.

因此，我認為我們欣賞端點 IC 業務的增長軌跡。我想知道，你可以花時間在這上面。我假設你會在 6 月的投資者日花一些時間在這上面。但是我們應該如何考慮業務系統領域的管道、視線和增長前景。

Yes. So Jim, on the systems side, obviously, we have the pipeline of opportunities we speak to. The specific ones, for example, the visionary European retailer, the Asia-based global retailer, the second large North American supply chain and logistics customer, we're also driving new opportunities, as Jeff just mentioned, around Impinj authenticity which is a whole platform offering that uses our readers, our reader ICs and our cloud service at the back end. And so we see systems pipeline strength in retail, specifically for those use cases that is fixed reading, authentication, supply chain and logistics.

是的。因此，吉姆，在系統方面，顯然，我們有很多機會與之交談。具體的，例如，有遠見的歐洲零售商，總部位於亞洲的全球零售商，北美第二大供應鍊和物流客戶，我們也在推動新的機會，正如 Jeff 剛才提到的，圍繞 Impinj 的真實性，這是一個整體在後端使用我們的閱讀器、閱讀器 IC 和雲服務的平台產品。因此，我們看到了零售業的系統流水線實力，特別是針對那些固定閱讀、身份驗證、供應鍊和物流的用例。

And then, of course, we have our partners driving all kinds of other opportunities that in various verticals, everything from building materials to the bookstore opportunity that I spoke about in my prepared remarks. So we're very excited about the opportunities ahead and look to see -- look to strong systems demand, and we look to delivering full platform offerings that -- by which our systems provide pull for our endpoint ICs to make a complete solutions offering. I hope that answered your question.

然後，當然，我們有我們的合作夥伴在各個垂直領域推動各種其他機會，從建築材料到我在準備好的發言中談到的書店機會。因此，我們對未來的機會感到非常興奮，並期待看到 - 期待強大的系統需求，我們期待提供完整的平台產品 - 我們的系統通過這些產品為我們的端點 IC 提供拉力，以提供完整的解決方案。我希望這回答了你的問題。

It does, it's been lumpy, Chris, as we know, this has been somewhat lumpy business because of the deployment of some of these customers. But is this, should we think of this as a double-digit growth business?

確實如此，克里斯，正如我們所知，由於其中一些客戶的部署，這一直是一個有點不穩定的業務。但是，我們是否應該將其視為兩位數增長的業務？

Jim, this is Cary. It's hard to put a percentage growth on it like that because of the lumpiness of this business. Now our growth has been depressed in the last several quarters because we haven't been able to get supply. So -- and we're entering -- or we will -- we anticipate exiting Q2, entering Q3 with pretty substantial reader backlog that we've just been unable to support. We expect second half systems business to be greater than first half, so we'll certainly grow in the second half of the year. I think the better way to think of it is that the systems business enabled endpoint IC volume. And as we continue to push down the platform solution path, it will enable endpoint IC volume for Impinj because we're unlocking new features and new functionality that's only available in our readers when compared -- when combined with our endpoint ICs. So that's how we think of the systems opportunity going forward.

吉姆，這是卡里。由於這項業務的複雜性，很難像這樣對其進行百分比增長。現在我們的增長在過去幾個季度一直低迷，因為我們無法獲得供應。所以——我們正在進入——或者我們將——我們預計退出第二季度，進入第三季度，我們無法支持相當多的讀者積壓。我們預計下半年系統業務將大於上半年，因此我們下半年肯定會增長。我認為更好的思考方式是系統業務支持端點 IC 量。隨著我們繼續推進平台解決方案路徑，它將為 Impinj 啟用端點 IC 量，因為我們正在解鎖新特性和新功能，這些新特性和新功能只有在與我們的端點 IC 相結合時才能在我們的讀者中使用。這就是我們如何看待未來的系統機會。

This concludes the question-and-answer session. I would like to turn the conference back over to Co-Founder and CEO, Chris Diorio for any closing remarks.

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 Chris Diorio 作閉幕詞。

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

謝謝你，運營商。我要感謝大家參加今天的電話會議，希望您和您所愛的人平安無事。非常感謝。

The conference is 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。