Impinj Inc (PI) 2023 Q4 法說會逐字稿

Welcome to the Impinj Fourth Quarter and Full Year 2023 financial results earnings conference call and webcast.

歡迎參加 Impinj 2023 年第四季和全年財務業績電話會議和網路廣播。

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

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

現在我想將會議交給策略財務副總裁安迪‧科布先生。

Please go ahead.

請繼續。

Thank you, MJ.

謝謝你，喬丹。

Good afternoon, and thank you all for joining us to discuss Impinj's Fourth Quarter and Full Year 2023 results.

下午好，感謝大家加入我們討論 Impinj 的第四季和 2023 年全年業績。

On today's call, Chris Diorio, Impinj's Co-Founder and CEO, will provide a brief overview of our market opportunity and performance.

在今天的電話會議上，Impinj 聯合創始人兼執行長 Chris Diorio 將簡要概述我們的市場機會和業績。

Cary Baker, Impinj's CFO, will follow with a detailed review of our fourth quarter and full year 2023, financial results and first quarter 2024 outlook.

Impinj 財務長 Cary Baker 將詳細回顧我們的第四季和 2023 年全年、財務業績和 2024 年第一季展望。

We will then open the call for questions.

然後我們將開始提問。

Jeff Dossett, Impinj's CRO will join us for the Q&A.

Impinj 的 CRO Jeff Dossett 將與我們一起參加問答。

You can find Management's prepared remarks plus trended financial data on the Investor Relations section of the company's website.

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 financial performance and future expectations that are based on our outlook as of today.

我們將在本次電話會議中根據我們今天的展望發表有關財務業績和未來預期的聲明。

Any such statements are forward-looking under the Private Securities Litigation Reform Act of 1995, whereas we believe we have a reasonable basis for making these forward-looking statements.

根據 1995 年《私人證券訴訟改革法案》，任何此類聲明均具有前瞻性，而我們相信我們有合理的基礎來做出這些前瞻性聲明。

Our actual results could differ materially because any such statements are subject to risks and uncertainties.

我們的實際結果可能會存在重大差異，因為任何此類陳述都面臨風險和不確定性。

We describe these risks and uncertainties in the annual and quarterly reports we file with the SEC.

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。

We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, except as required by law.

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聲明的義務。

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 or GAAP.

在今天的電話會議上，除收入或我們明確說明的其他情況外，所有財務指標均為非 GAAP 資產負債表和現金流量指標或 GAAP。

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

請參閱我們的收益發布，以了解我們的非 GAAP 財務指標與最具可比性 GAAP 指標的調整表。

Before turning to our results and outlook, note that we will participate in Susquehanna's 13th Annual Technology Conference on February 29 in New York Loop Capital Sixth Annual Investor Conference on March 11, and the 36th Annual ROTH Conference on March 18 in Dana Point, we look forward to connecting with many of you at those events.

在討論我們的業績和展望之前，請注意，我們將參加2 月29 日在紐約舉行的Susquehanna 第13 屆年度技術會議、3 月11 日在紐約舉行的Loop Capital 第六屆年度投資者會議以及3月18 日在Dana Point 舉行的第36 屆ROTH 年度會議，我們期待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.

我現在將把電話轉給克里斯。

Thank you, Andy, and thank you all for joining the call.

謝謝你，安迪，也謝謝大家加入這通通話。

We exited 2023 on an upswing with fourth quarter revenue and profitability above both our third quarter results and fourth quarter guidance.

我們在 2023 年結束時實現了成長，第四季度的營收和獲利能力均高於我們的第三季業績和第四季指引。

Our focus on silicon and Enterprise Solutions paid dividends and strong fourth quarter endpoint IC volumes led by our two strategic verticals, retail and supply chain and logistics.

我們對晶片和企業解決方案的關注帶來了紅利，第四季度端點 IC 銷量強勁，由我們的兩個戰略垂直領域（零售、供應鏈和物流）引領。

We will sharpen that focus as we enter 2024, increasing our investment in silicon and enterprise solutions while streamlining our organization to accelerate our pace and improve our profitability.

進入 2024 年，我們將加強這一重點，增加對晶片和企業解決方案的投資，同時精簡我們的組織，以加快我們的步伐並提高我們的盈利能力。

Every January, we kick off the year with a national retail federation trade show in New York.

每年一月，我們都會在紐約舉辦全國零售聯合會貿易展，為新的一年揭開序幕。

This year, Rainer up, if you felt like the belle of the ball solution providers across the show, how to use cases from inventory visibility to self checkout and user six sided delighting customers with just walk out and retail necessities like loss identification coming off, the significant retail inventory destocking that characterize 2023, the excitement at NRF was palpable although I still feel it is premature to call the retail downturn over green shoots I cited last quarter, feel a shade greener post NRF, buoyed by secular growth opportunities in supply chain and logistics, retail, general merchandise apparel and a long tail of other applications.

今年，Rainer 起來，如果您感覺自己像整個展會上的球解決方案提供商中的美女，如何使用從庫存可見性到自助結帳的案例，以及如何使用六面取悅客戶，只需走出去，以及丟失識別等零售必需品， 2023 年零售庫存大幅去庫存，NRF 的興奮是顯而易見的，儘管我仍然覺得現在將零售業低迷稱為我上季度提到的複蘇萌芽還為時過早，在NRF 後受到供應鏈長期成長機會的提振，感覺前景更樂觀以及物流、零售、百貨服飾等長尾應用。

From my perspective and pinch stood out as the leading RAIN silicon provider and enterprise solutions enabler, which is precisely where we want to be.

從我的角度來看，Pinch 脫穎而出，成為領先的 RAIN 晶片供應商和企業解決方案推動者，這正是我們想要達到的目標。

Turning to Silicon our 2023 endpoint IC unit volume growth exceeded our industry's historical 29% CAGR with opportunity expansion and inlay partner inventory rebuilds more than offsetting the retail destocking headwinds.

轉向矽，我們 2023 年端點 IC 單位銷量的成長超過了產業歷史上 29% 的複合年增長率，機會擴張和鑲嵌合作夥伴庫存重建足以抵消零售去庫存的不利影響。

Fourth quarter endpoint IC revenue exceeded our expectations as growth in retail demand outpaced headwinds from some inlay partners still dialing in their inventory levels.

第四季端點 IC 收入超出了我們的預期，因為零售需求的成長超過了一些仍在調整庫存水準的鑲嵌合作夥伴的阻力。

Looking forward, we anticipate first quarter to again deliver modest endpoint IC unit volume growth for reader ICs on revenue held firm despite continued macro-economic headwinds in China as partners transition from older LED-based products to new E family designs.

展望未來，儘管隨著合作夥伴從基於LED 的舊產品轉向新的E 系列設計，中國宏觀經濟持續面臨阻力，但我們預計第一季讀取器IC 的端點IC 單位銷量將再次實現小幅增長，收入維持堅挺。

Q4 also showed strong test and measurement product deliveries to our inlay partners as they expand their inlay manufacturing capacity.

第四季也向我們的鑲嵌合作夥伴展示了強勁的測試和測量產品交付，因為他們擴大了鑲嵌製造能力。

We believe those capacity expansions bode well for the long term endpoint IC opportunity.

我們相信，這些產能擴張對於端點 IC 的長期機會來說是個好兆頭。

Before we turn to solutions, I would be remiss in not against citing our multiple intellectual property trial wins against our primary endpoint IC competitor and XP with steadfast determination, we intend to pursue the dispute to a long term successful outcome.

在我們轉向解決方案之前，如果我不反對引用我們針對我們的主要端點IC 競爭對手和XP 的多項知識產權審判勝利，那將是我的失職，我們打算以堅定的決心繼續這場糾紛，取得長期成功的結果。

Moving to solutions division, our European retailers.

轉向我們的歐洲零售商解決方案部門。

Ongoing rollout of our self-checkout and loss prevention solution contributed strong fourth quarter gateway revenue.

我們不斷推出的自助結帳和防損解決方案為第四季度網關收入帶來了強勁的成長。

We expect this deployment their third today to conclude in the second quarter, even as it accelerates their embedded tagging brands.

我們預計今天的第三次部署將在第二季完成，儘管它加速了他們的嵌入式標籤品牌。

We anticipate future self-checkout and loss prevention opportunities with this retailer and other brands and geographies.

我們預計未來與該零售商以及其他品牌和地區的自助結帳和防損機會。

In general merchandise, the large North American retailer continued their rollout, albeit at a slower pace than they and we originally expected primarily due to the breadth of their supplier base and large diversity in the products being tagged.

在一般商品方面，這家北美大型零售商繼續推出產品，儘管速度比他們和我們最初預期的要慢，這主要是由於他們的供應商基礎廣泛且所標記產品的多樣性。

Regardless, they continue making progress.

無論如何，他們仍在不斷進步。

Finally, in supply chain and logistics, we expect the second large North American supply chain and logistics end user to increase their label volumes in 2024.

最後，在供應鏈和物流方面，我們預計北美第二大供應鏈和物流最終用戶將在 2024 年增加標籤數量。

We expect all these projects to provide a tailwind to our 2024 endpoint IC revenue.

我們預計所有這些項目將為我們 2024 年端點 IC 收入提供輔助。

On the product front contains M800 deliveries are poised to ramp as our inlay partners finished or close and begin shipping production in lace.

在產品方面，隨著我們的鑲嵌合作夥伴完成或關閉並開始運送蕾絲生產，M800 的交付量即將增加。

The M800 is our best performing and most feature-rich endpoint IC ever end.

M800 是我們有史以來效能最好、功能最豐富的端點 IC。

So far, customer feedback has been very positive although we are assuming the M800 will follow a typical multiyear ramp, we remain hopeful that our hard work on product performance and market readiness will accelerate that ramp.

到目前為止，客戶反饋非常積極，儘管我們假設 M800 將遵循典型的多年增長，但我們仍然希望我們在產品性能和市場準備方面的努力將加速這一增長。

We also continue shifting our focus away from channel readers and gateways to our reader ICs and enterprise solutions.

我們也繼續將重點從通路閱讀器和網關轉移到閱讀器 IC 和企業解決方案。

Former as partner products built on those ICs become increasingly able to unlock channel opportunities and the latter leveraging our readers and gateways as indispensable elements of whole platform solution.

前者作為基於這些 IC 建構的合作夥伴產品越來越能夠釋放通路機會，後者利用我們的閱讀器和網關作為整個平台解決方案不可或缺的元素。

Turning to new market drivers.

轉向新的市場驅動力。

Late last year, the European Commission and European Parliament provisionally included the Digital Product Passport or DPP in the EU's revised sustainability product legislation.

去年年底，歐盟委員會和歐洲議會暫時將數位產品護照（DPP）納入歐盟修訂後的可持續產品立法中。

DPP will provide information about powdered products, sustainability and traceability and help consumers and businesses make informed purchasing decisions.

DPP 將提供有關粉末產品、永續性和可追溯性的信息，並幫助消費者和企業做出明智的購買決定。

We expect a phased introduction, including apparel start in 2027.

我們預計將分階段推出，包括 2027 年開始推出服裝。

We already see leading European retailers planning for and investing ahead of it.

我們已經看到歐洲領先的零售商提前進行了規劃和投資。

We believe DPP is a pivotal opportunity for us because rain already used extensively in retail apparel can provide the information required by DPP.

我們相信 DPP 對我們來說是一個關鍵的機會，因為雨水已經在零售服裝中廣泛使用，可以提供 DPP 所需的資訊。

We also believe DPP can be the impetus for post-purchase consumer around use cases.

我們也相信 DPP 可以成為購買後消費者使用案例的動力。

We began investing in DPP related R&D in 2023 and will continue doing so in 2024 and closing 2020.

我們於 2023 年開始投資 DPP 相關研發，並將於 2024 年繼續投資，並於 2020 年結束。

Here, 2023 was another year of solid growth despite market headwinds with annual revenue crossing the $300 million threshold for the first time we delivered four quarters of positive adjusted EBITDA, successfully defended our IP, introduce market-leading new products and are well down the path to normalizing our inventory levels.

儘管面臨市場逆風，2023 年仍是穩健成長的一年，年收入首次突破3 億美元大關，我們實現了四個季度的正調整EBITDA，成功捍衛了我們的智慧財產權，推出了市場領先的新產品，並一路走好使我們的庫存水準正常化。

Looking forward, we are sharpening our strategic focus to improve our profitability and increase our competitiveness as we continue driving our bold vision to connect every item in our everyday world.

展望未來，我們將加強策略重點，以提高獲利能力和競爭力，繼續推動我們的大膽願景，將日常生活中的每一件物品連接起來。

I remain confident in our market position and energized by the opportunities ahead.

我對我們的市場地位仍然充滿信心，並對未來的機會充滿信心。

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

我現在將把電話轉給卡里，詢問我們的財務審查和第一季展望。

Cary?

卡里？

Thank you, Chris, and good afternoon, everyone. 2023 was another year of strong revenue growth driven by our enterprise solution wins and end market diversification into supply chain logistics and retail general merchandise.

謝謝克里斯，大家下午好。 2023 年又是營收強勁成長的一年，這得益於我們的企業解決方案的成功以及供應鏈物流和零售百貨的終端市場多元化。

That said, we also navigated a fluid retail environment marked by significant retail apparel inventory destocking that elevated our first half revenue and depressed our second half revenues as our inlay partners, first overbuilt endpoint IC inventory and then adjusted stock back to healthier levels.

也就是說，我們也應對了一個流動的零售環境，其特點是零售服裝庫存大幅去庫存，這提高了我們上半年的收入，但降低了下半年的收入，因為我們的鑲嵌合作夥伴首先過度增加了端點IC 庫存，然後將庫存調整回更健康的水平。

Despite those fluctuations, our team executed well delivering non-GAAP profitability in each quarter of the year.

儘管存在這些波動，我們的團隊在今年每個季度都表現出色，實現了非公認會計準則獲利能力。

Another 2023 highlight was our brilliant Tech acquisition, which extends our solutions to include in late test and measurement.

2023 年的另一個亮點是我們出色的技術收購，它將我們的解決方案擴展到後期測試和測量。

Cultural and financial fit between the companies is fantastic and the integration is proceeding as planned.

兩家公司之間的文化和財務契合度非常好，整合正在按計劃進行。

The Bladderchek test and measurement systems used by both our inlay partners and end users are a key element of our focus on silicon and enterprise solutions.

我們的鑲嵌合作夥伴和最終用戶使用的 Bladderchek 測試和測量系統是我們專注於晶片和企業解決方案的關鍵要素。

Q4 revenue was $70.7 million, up 9% sequentially compared with $65 million in Q3 2023 and down 8% year over year from $76.6 million in Q4 2022 fourth quarter endpoint IC revenue was $53.9 million, up 11% sequentially compared with $48.6 million in Q3 2023 and down 8% year over year from $58.7 million in Q4 2022 to the sequential endpoint, IC revenue growth exceeded our expectations, especially when compared to typical fourth quarter declines.

第四季營收為7,070 萬美元，較2023 年第三季的6,500 萬美元較上季成長9%，較2022 年第四季的7,660 萬美元年減8% 第四季端點IC 營收為5,390 萬美元，較2023 年第三季的4,860 萬美元環比成長11% IC 營收成長超出了我們的預期，特別是與第四季的典型下滑相比，較 2022 年第四季的 5,870 萬美元年減 8%。

Looking to the first quarter, we again expect sequential endpoint IC revenue growth now that are large and they partner inventory levels are relatively healthy.

展望第一季度，我們再次預期端點 IC 營收將大幅環比成長，而且合作夥伴的庫存水準也相對健康。

Fourth quarter systems revenue was $16.8 million, up 2% sequentially compared with $16.4 million in Q3 2023 and down 6% year over year from $17.9 million in Q4 2022.

第四季系統營收為 1,680 萬美元，比 2023 年第三季的 1,640 萬美元成長 2%，比 2022 年第四季的 1,790 萬美元年減 6%。

The sequential increase overcame our expectation of a decline due to strength in test and measurement.

環比成長克服了我們因測試和測量實力而下降的預期。

Looking to the first quarter, we expect similar systems revenue to Q4 post 2023, revenue was $307.5 million, up 19% year over year compared with $257.8 million in 2022.

展望第一季度，我們預計 2023 年第四季的系統營收將與 2023 年第四季類似，營收為 3.075 億美元，較 2022 年的 2.578 億美元年增 19%。

Endpoint IC revenue grew 22% year over year with enterprise solution wins and inlay partner inventory rebuilds more than offsetting retail apparel destocking headwinds.

由於企業解決方案的成功和 Inlay 合作夥伴庫存的重建，端點 IC 收入同比增長 22%，足以抵消零售服裝去庫存的不利影響。

Systems revenue grew 10% year over year with test and measurement and Gateway strength more than offsetting weakness in our partner-led reader business.

系統收入年增 10%，測試和測量以及網關的實力足以抵消我們合作夥伴主導的讀卡機業務的弱點。

Q4 gross margin was 50.9% compared with 50.5% in Q3 2023 and 53.8% in Q4 2022.

第四季毛利率為 50.9%，而 2023 年第三季為 50.5%，2022 年第四季為 53.8%。

The year-over-year decline was driven by higher indirect costs against lower production volumes.

年比下降的原因是間接成本上升和產量下降。

Full year 2023 gross margin was 51.9% compared with 55.5% in 2022, with the decrease due primarily to lower end point IC product margins from less specialty and industrial ICs as well as mix within those specialty and industrial ICs.

2023 年全年毛利率為 51.9%，而 2022 年為 55.5%，下降的主要原因是特種和工業 IC 數量減少以及這些特種和工業 IC 內部的混合導致終端 IC 產品利潤率較低。

Looking to first quarter 2024, we expect gross margin to sequentially increase.

展望 2024 年第一季度，我們預期毛利率將較上季成長。

Total Q4 operating expense was $33 million compared with $32.6 million in Q3 2023 and $29.5 million in Q4 2022.

第四季營運支出總額為 3,300 萬美元，而 2023 年第三季為 3,260 萬美元，2022 年第四季為 2,950 萬美元。

Research and development expense was $15 million.

研究與開發費用為1500萬美元。

Sales and marketing expense was $7.7 million.

銷售和行銷費用為 770 萬美元。

General and administrative expense was $10.3 million, including litigation expense of $3.8 million.

一般及行政費用為 1,030 萬美元，其中訴訟費用為 380 萬美元。

2023 operating expense totaled $137.8 million compared with $114.2 million in 2022.

2023 年營運費用總計 1.378 億美元，而 2022 年營運費用為 1.142 億美元。

We expect total first quarter 2024 for operating expense to increase sequentially, driven by annual payroll tax and bonus accrual resets.

我們預計，在年度薪資稅和獎金應計重置的推動下，2024 年第一季的營運支出總額將較上季增加。

We expect first quarter litigation expense to decline sequentially, Q4 adjusted EBITDA was $3 million compared with 300,000 in Q3 2023 and $11.8 million in Q4 2022.

我們預計第一季訴訟費用將季減，第四季調整後 EBITDA 為 300 萬美元，而 2023 年第三季為 30 萬美元，2022 年第四季為 1,180 萬美元。

Fourth quarter adjusted EBITDA margin was 4.2%. 2023 adjusted EBITDA was $21.8 million compared with $28.9 million in 2022. 2023 adjusted EBITDA margin was 7.1%.

第四季調整後 EBITDA 利潤率為 4.2%。 2023 年調整後 EBITDA 為 2,180 萬美元，而 2022 年為 2,890 萬美元。2023 年調整後 EBITDA 利潤率為 7.1%。

Fourth quarter GAAP net loss was $15.2 million.

第四季 GAAP 淨虧損為 1,520 萬美元。

Fourth quarter non-GAAP net income was $2.5 million or $0.09 per share on a fully diluted basis, 2023 GAAP net loss was $43.4 million. 2023 non-GAAP net income was $19.8 million, or $0.7 per share on a fully diluted basis.

第四季非 GAAP 淨利為 250 萬美元，或完全稀釋後每股 0.09 美元，2023 年 GAAP 淨虧損為 4,340 萬美元。 2023 年非 GAAP 淨利潤為 1,980 萬美元，或完全稀釋後每股 0.7 美元。

Turning to the balance sheet, we ended the fourth quarter with cash, cash equivalents and investments of $113.2 million.

轉向資產負債表，第四季末我們的現金、現金等價物和投資為 1.132 億美元。

Inventory totaled $97.2 million, down $9.6 million from the prior quarter, with the decrease coming primarily from endpoint ICs.

庫存總額為 9,720 萬美元，比上一季減少 960 萬美元，減少主要來自端點 IC。

Fourth quarter net cash provided by operating activities was $1.4 million.

第四季經營活動提供的淨現金為 140 萬美元。

Property and equipment purchases totaled $2.6 million.

財產和設備採購總額為 260 萬美元。

Free cash flow was negative $1.2 million.

自由現金流為負 120 萬美元。

For the full year net cash used in operating activities was $49.4 million.

全年經營活動使用的現金淨額為 4,940 萬美元。

Property and equipment purchases totaled $18.6 million free cash flow was negative $68 million, driven by our endpoint IC inventory rebuild.

由於我們的端點 IC 庫存重建，財產和設備採購總額為 1860 萬美元，自由現金流為負 6800 萬美元。

Before turning to our guidance, I want to highlight a few items unique to our results and outlook.

在轉向我們的指導之前，我想強調一些我們的結果和前景所特有的項目。

First and fourth quarter, our inlay partners made further progress reducing our endpoint IC inventory and our large partners exited the year relatively healthy, leading them well positioned to ramp M800 volumes.

第一季和第四季度，我們的鑲嵌合作夥伴在減少端點IC 庫存方面取得了進一步進展，並且我們的大型合作夥伴在今年相對健康地結束了這一年，這使他們處於有利地位，可以提高M800 的銷量。

Some of our smaller partners still hold elevated inventory, which we expect them to bleed down as their project based demand returns.

我們的一些規模較小的合作夥伴仍然持有較高的庫存，我們預計隨著基於專案的需求回歸，他們的庫存將會減少。

Second, as we conclude our E family reader IC transition.

其次，我們結束了 E 系列讀卡機 IC 的轉型。

We will end of life our prior generation in the product family with last time shipments scheduled in first half 2024.

我們將結束此產品系列中上一代產品的生命週期，最後一次出貨計畫於 2024 年上半年進行。

Turning to our outlook, we expect first quarter revenue between $72 million and $75 million compared with $70.7 million in Q4 2023, a 4% quarter over quarter increase at the midpoint, we expect adjusted EBITDA between $3 million and $4.5 million.

談到我們的展望，我們預計第一季營收將在7,200 萬美元至7,500 萬美元之間，而2023 年第四季營收為7,070 萬美元，中點環比成長4%，我們預計調整後EBITDA 在300 萬美元至450 萬美元之間。

On the bottom line, we expect non-GAAP net income between $2.2 million and $3.7 billion, reflecting non-GAAP fully diluted earnings per share between $0.08 and $0.13.

總體而言，我們預計非 GAAP 淨利潤在 220 萬美元至 37 億美元之間，反映非 GAAP 完全攤薄每股收益在 0.08 美元至 0.13 美元之間。

In closing, I want to thank the Impinj team for your outstanding execution this quarter.

最後，我要感謝 Impinj 團隊在本季的出色執行。

We have delivered nine consecutive quarters of positive adjusted EBITDA.

我們已連續九個季度實現正調整 EBITDA。

Even as we continued investing in our business, we now turn our focus to the next goal generating consistent free cash flow.

即使我們繼續投資我們的業務，我們現在也將重點轉向下一個目標，即產生持續的自由現金流。

I believe our efforts to streamline our organization will accelerate progress towards that goal.

我相信，我們精簡組織的努力將加速實現這一目標的進程。

With that, I will now turn the call to the operator to open the question-and-answer session.

這樣，我現在將通話轉給接線員以開始問答環節。

MJ?

喬丹？

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Harsh Kumar, Piper Sandler.

嚴厲的庫馬爾，派珀桑德勒。

Yes, hey, guys.

是的，嘿，夥計們。

First of all, congratulations.

首先，恭喜你。

You guys are back to beat and raise, which is fantastic and best use our own.

你們又回來了，可以擊敗並加註，這太棒了，最好利用我們自己的。

Chris, you sound fantastic about the prospects of the business.

克里斯，你聽起來對這項業務的前景非常樂觀。

We appreciate that.

我們對此表示讚賞。

So on that note, Chris, my first question to you is, you know, historically you had endpoint IC unit growth, call it 20%, 25%.

因此，克里斯，我向您提出的第一個問題是，您知道，歷史上您的端點 IC 單位增長了，稱其為 20%、25%。

You're coming off of a pretty healthy inventory correction, but your end markets are all looking in are nicely up is it fair for us to think about endpoint IC unit growth in the 25% range for 2024 a year?

你們正在經歷相當健康的庫存調整，但你們的終端市場都在大幅上漲，我們認為 2024 年端點 IC 單位成長在 25% 的範圍內是否公平？

I was personally say thank you for your kind words, Harsh, we guide one quarter at a time, as you know, making predictions at this point in time relative to overall 2024 is quite difficult.

我個人對您的客氣話表示感謝，嚴厲，我們一次指導一個季度，如您所知，在此時相對 2024 年整體進行預測是相當困難的。

You've probably heard some of our partners talk about 2020 for overall, say they potentially see some macro pickup in the back half of the year if that macro improvement actually happens.

您可能已經聽過我們的一些合作夥伴談論 2020 年的整體情況，並表示如果宏觀改善確實發生，他們可能會在今年下半年看到宏觀經濟的一些回升。

And then we see strength in the back half of the year as well and the potential for gains as we have seen in other years.

然後我們也看到了今年下半年的強勁勢頭以及我們在其他年份看到的收益潛力。

But a lot depends on what happens in the macro environment.

但這很大程度取決於宏觀環境中發生的情況。

I'm not willing to call yet that we're going to see that pickup in the back half of the year because as I said in my prepared remarks, it's a bit too early for us to call the downturn over, but I'm guardedly optimistic for the back half of the year.

我還不願意說我們將在今年下半年看到經濟復甦，因為正如我在準備好的講話中所說，現在宣布經濟低迷結束還為時過早，但我認為對下半年持謹慎樂觀態度。

And if it picks up, we're going to see it in the endpoint IC volumes right now.

如果它有所回升，我們現在就會在端點 IC 卷中看到它。

And as I said in our three green shoots, I guess green shoots look greener.

正如我在我們的三個綠芽中所說的，我想綠芽看起來更綠。

So let's hope those green shoots continued growing.

因此，讓我們希望這些綠芽能夠繼續生長。

We're going to do our best to water incentive pay.

我們將盡最大努力提供激勵工資。

For my follow-up, I wanted to clarify on what you call as your second line, your second logistics customer.

對於我的後續行動，我想澄清一下您所說的第二條線，即您的第二個物流客戶。

Now they do.

現在他們做到了。

I think $6 billion some odd shipments a year.

我認為每年一些零散的出貨量價值 60 億美元。

Is it is it fair to think that you are now fully penetrated in 2024 with that sort of a $6 billion sort of shipment number?

認為您現在已經在 2024 年完全滲透到 60 億美元的出貨量，這公平嗎？

Or do you think that the endpoint IC installation within that particular customer will continue to ramp not just for 2024, but possibly into 2025?

或者您認為該特定客戶的端點 IC 安裝不僅會在 2024 年繼續增加，而且可能會持續到 2025 年？

So I'm just I think you mentioned 6 billion units rather than $6 billion terms with the problem of our products ship in our margin, it's difficult for me to speak to some of the pace and timing of an end customer ramp.

所以我只是認為你提到了 60 億台而不是 60 億美元的條款，因為我們的產品在我們的利潤中出貨的問題，我很難談論最終客戶成長的一些速度和時間。

What I said in my prepared remarks, we see some increases in volumes in 2024 from that said, that end user has diverse operations.

正如我在準備好的演講中所說，我們看到 2024 年的交易量增加，因為最終用戶擁有多樣化的業務。

And so I think it's probably fair to say that there will be opportunities for continued gains with that end user.

因此，我認為可以公平地說，最終用戶將有機會持續獲益。

And we will do our best to support them at every opportunity to start their deployment and make it successful in terms of the pace and timing at which they ultimately go.

我們將盡最大努力利用一切機會支援他們開始部署，並使其在最終部署的速度和時間上取得成功。

I think I'm going to have to defer to them in their remarks that they often make in their earnings calls.

我想我必須尊重他們在財報電話會議上經常發表的言論。

Fair enough, Chris and I will get back in line.

公平地說，克里斯和我會重新排隊。

Thank you and congratulations, guys.

謝謝你們，恭喜你們，夥伴們。

Thank you, Chris.

謝謝你，克里斯。

Thank you.

謝謝。

Toshiya Hari, Goldman Sachs.

Toshiya Hari，高盛。

Hi, good afternoon and thank you so much for taking the question.

你好，下午好，非常感謝你提出問題。

I had two questions as well.

我也有兩個問題。

The first one is on the M. 800.

第一個是在 M.800 上。

I think it was you carry toward the end of your remarks, you talked about your large partners being in a pretty good spot from a from an inventory position perspective and how they're well-positioned to ramp the M. 800 as the M. 800 kind of comes in into your mix, how should we think about the penetration rate exiting the year?

我認為您在演講的最後談到了您的大型合作夥伴從庫存狀況的角度來看處於一個非常好的位置，以及他們如何做好準備將 M.800 提升為 M.800。800 種進入您的組合，我們該如何考慮今年的滲透率？

And how should we think about the impact that could have on both ASP expansion as well as your gross margins and then I have a follow-up.

我們應該如何考慮對平均售價擴張和毛利率可能產生的影響，然後我有一個後續行動。

Okay.

好的。

Thanks, Toshiya.

謝謝，俊也。

This is Cary up with customer feedback on the M. 800 has been overwhelmingly positive.

這是 Cary up，客戶對 M.800 的回饋非常正面。

Our partners are moving forward with the quals, and we expect some initial production shipment volumes this quarter.

我們的合作夥伴正在推進品質控制，我們預計本季會有一些初步的生產出貨量。

Historically, however, our new endpoint IC ramps have taken multiple years, and we're optimistic that the excitement around the M. 800.

然而，從歷史上看，我們的新端點 IC 的推出需要多年時間，我們對 M.800 的興奮感到樂觀。

We can accelerate that historical product ramp, but it's too early to predict the pace of the ramp at this point.

我們可以加速歷史產品的成長，但現在預測成長的速度還為時過早。

And I would add in addition to the performance and manufacturability gains, the M. 800 also carries a significant cost advantage for Impinj, given the DI strength that's built into that endpoint IC when fully ramped we expect the M. 800 to deliver approximately 300 basis points of gross margin accretion, given how early we are on the product ramp.

我想補充一點，除了性能和可製造性方面的提升之外，M.800 還為Impinj 帶來了顯著的成本優勢，考慮到端點IC 中內置的DI 強度，當完全提升時，我們預計M .800 將提供大約300 基點考慮到我們產品上市的時間有多早，毛利率的增長點。

However, I do not think you'll see are we will see the M. 800 impacting gross margin in the first half of this year, give us another six months, and we'll see how that ramp goes.

然而，我認為您不會看到 M.800 在今年上半年對毛利率產生影響，再給我們六個月的時間，我們將看到這一增長的情況。

But we're very encouraged by what we've seen so far.

但我們對迄今為止所看到的情況感到非常鼓舞。

Great.

偉大的。

That's helpful.

這很有幫助。

And then as my follow-up on Chris and Cary, I think you both mentioned something about streamlining your organization.

然後，作為克里斯和卡里的後續行動，我想你們都提到了一些關於精簡組織的事情。

You've generated positive EBITDA on a consistent basis.

您已持續產生正的 EBITDA。

You talked about being focused on generating consistent free cash flow.

您談到專注於產生持續的自由現金流。

When you say streamlining your organization, like what do you mean what are you doing today internally?

當你說精簡你的組織時，你的意思是你今天在內部做什麼？

And what kind of cost reductions or efficiencies can we expect and model going forward in '24 and beyond?

我們可以期望在 24 年及以後實現什麼樣的成本降低或效率提升？

Thank you.

謝謝。

Thanks, Toshiya, this is Cary again.

謝謝，Toshiya，我又是卡里。

I'll take that once we are streamlining and adjusting our channel reader investment to better align that portion of our reader business to its revenue profile, we're not exiting the channel reader business and we'll continue supporting our partners in the market.

我認為，一旦我們簡化和調整我們的頻道閱讀器投資，以更好地將我們的閱讀器業務的這一部分與其收入狀況保持一致，我們就不會退出頻道閱讀器業務，我們將繼續支持我們在市場上的合作夥伴。

This move will allow us to do that and support our partners in a more profitable fashion.

此舉將使我們能夠做到這一點，並以更有利可圖的方式支持我們的合作夥伴。

This change is a natural progression of our strategy as our partner designs with each family are increasingly able to unlock that channel reader business, and we are, therefore able to focus our efforts on the enterprise solutions.

這項變更是我們策略的自然進展，因為我們與每個家庭的合作夥伴設計越來越能夠解鎖頻道閱讀器業務，因此我們能夠將精力集中在企業解決方案上。

We remain focused on our three financial goals that we outlined last European investor or the Analyst Day, long-term revenue growth, profitability and free cash flow.

我們仍然專注於我們上次歐洲投資者或分析師日概述的三個財務目標：長期收入成長、獲利能力和自由現金流。

Thank you and congrats.

謝謝你並恭喜你。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

Christopher Rolland with Susquehanna.

克里斯多福羅蘭與薩斯奎哈納。

Hey, guys, this is Matt Meyers on for Chris.

嘿，夥計們，這是克里斯的馬特·邁耶斯。

So first off, congrats on the quarter, but also just wanted to get some more clarity around the inventory dynamic.

首先，恭喜本季的業績，但也只是想更清楚地了解庫存動態。

So is this largely over now for you?

那麼這對你來說現在基本上已經結束了嗎？

Do you still see much excess inventory on the endpoint IC side or is it on the reader side?

您是否仍然看到端點 IC 側或讀卡機側存在大量過剩庫存？

And I know you mentioned smaller partners that still have some elevated inventory.

我知道您提到了較小的合作夥伴，他們的庫存仍然有所增加。

How incremental is this?

這是多少增量？

And is there any inventory so what you're in life.

還有你的生活有什麼庫存嗎？

Hi Matt, this is Cary.

嗨，馬特，我是卡里。

I think I could take a shot at that.

我想我可以嘗試一下。

In the fourth quarter, our inlay partners made further progress reducing their endpoint IC inventory and the large partners exited the year relatively healthy.

第四季度，我們的 Inlay 合作夥伴在減少端點 IC 庫存方面取得了進一步進展，大型合作夥伴相對健康地結束了這一年。

So they're now able to ramp the M. 800 as production volumes increase.

因此，隨著產量的增加，他們現在能夠提高 M.800 的產量。

Think of our inlay business as an 80 20 rule with a handful, maybe six or so inlay partners driving the bulk of that volume.

將我們的鑲嵌業務視為 80 20 規則，由少數（可能是六個左右）鑲嵌合作夥伴推動大部分業務。

There are smaller partners whose inventory levels remain a little elevated.

有些規模較小的合作夥伴的庫存水準仍然略高。

We're not as concerned about that, their demand has historically been project based and as that project based demand comes back and they'll get healthy again.

我們並不擔心這一點，他們的需求歷來都是基於專案的，隨著基於專案的需求回來，他們會再次變得健康。

But we're feeling pretty good about where we are at this point.

但我們對目前的處境感覺非常好。

And we think in the in the first quarter, we'll be shipping closer to demand, whereas the last couple of quarters we've been pulling down channel inventory and as a result, under-shipping demand.

我們認為，在第一季度，我們的出貨量將更接近需求，而過去幾季我們一直在減少通路庫存，因此導致出貨需求不足。

And I guess I'll say a tiny bit more there.

我想我還要多說一點。

As you look at the overall market, we do see the retail inventory destocking at the end user levels starting to taper, but on sales out still exceeds imports.

縱觀整個市場，我們確實看到終端用戶層面的零售庫存去庫存開始逐漸減少，但銷售量仍超過進口量。

And so I'm not clear how long that destocking is going to go on at some point.

所以我不清楚去庫存會持續多久。

And we're seeing a tapering now.

我們現在看到了逐漸減少的情況。

And as that destocking ends and it assuming demand stays healthy with then we expect to see accelerating retail demand on the other side.

隨著去庫存的結束，假設需求保持健康，那麼我們預期零售需求將加速成長。

That's great color.

那顏色真棒。

Thanks.

謝謝。

Guys.

夥計們。

Just a quick follow-up to I know you talked about your second logistics costs.

我知道您談到了第二個物流成本，這是一個快速跟進。

Curious if there were any updates around you.

好奇你周圍是否有任何更新。

No, Matt, I don't think we there have been any public comments from that customer.

不，馬特，我認為我們沒有收到該客戶的任何公開評論。

And I don't think we've got anything that we can add at this point in time.

我認為目前我們還沒有任何可以添加的內容。

Sorry about that.

對於那個很抱歉。

Thanks Chris.

謝謝克里斯。

Thanks.

謝謝。

Jim Ricchiuti, Needham & Company.

吉姆‧里奇烏蒂 (Jim Ricchiuti)，李約瑟公司。

Thanks.

謝謝。

Good afternoon.

午安.

I may have missed it in.

我可能錯過了。

I joined the call a little bit late, but can you elaborate on just on some of the restructuring that you're doing to what extent that's impacting our OpEx carry?

我加入電話會議的時間有點晚了，但您能否詳細說明您正在進行的一些重組對我們的營運支出有何影響？

I think I think Terry and I are going to spend a little bit time as part of the sharpening our focus.

我想我和特里會花一點時間來集中我們的注意力。

And as Kerry mentioned to answer to one of the prior questions, some kind of adjusting our spend and normalizing our spend in our reader and gateway channel business, we have reduced our headcount by about 10% and refocused our Company along the lines of our silicon and enterprise solutions.

正如Kerry 在回答之前的一個問題時提到的，即以某種方式調整我們的支出並使我們在讀卡器和網關渠道業務上的支出正常化，我們已將員工人數減少了約10%，並按照我們的晶片重新調整了公司的重點和企業解決方案。

We believe that refocusing will drive both our profitability and our success kind of our focus going forward and the growth opportunities for the Company.

我們相信，重新調整重點將推動我們的獲利能力和成功，以及我們未來的重點和公司的成長機會。

So although it's painful, very painful to go through a headcount reduction and it's not something we take lightly or easily something that we felt we needed to do and done in refocusing the company, we're going to be focusing on growth on accelerating our growth, even as we drive profitability.

因此，儘管裁員是痛苦的，非常痛苦的，而且我們認為我們需要做的事情和在重新調整公司重點時所做的事情並不是我們輕率或輕易採取的事情，但我們將專注於加速我們的成長。 ，即使我們推動盈利能力。

So we're aligning to our strategy and done, and I think you'll see us tighten that alignment as we go forward, not in terms of further headcount reductions but just in terms of how we're really focusing on the opportunity in front of us here.

因此，我們正在調整我們的策略並完成，我想你會看到我們在前進的過程中加強這種調整，不是在進一步裁員方面，而是在我們如何真正關注眼前的機會方面我們這裡。

And Chris, I think I think you did a fine job answering it, Jim, I would just reiterate that this is a natural next step in our strategy, and you've heard us talk about enterprise solutions and for the last several quarters at this point, this is allowing us to do that in a better way while also running our channel reader business in a more profitable fashion.

克里斯，我想我認為你回答得很好，吉姆，我只想重申，這是我們策略中自然而然的下一步，你已經聽到我們談論企業解決方案，並且在過去的幾個季度裡一點，這使我們能夠以更好的方式做到這一點，同時也以更有利可圖的方式經營我們的頻道閱讀器業務。

As I as I think about OpEx in the first quarter, I still expect OpEx to step up.

當我想到第一季的營運支出時，我仍然預期營運支出將會增加。

And so not as much as you've seen in the last couple of years.

所以沒有你在過去幾年看到的那麼多。

In Q1, we still have the annual payroll tax resets we still have the bonus accrual reset, but muting that will be a little bit lighter on labor, wage related spending and a little bit lighter litigation spend.

在第一季度，我們仍然進行年度工資稅重置，我們仍然重置應計獎金，但不會減少勞動力、工資相關支出和訴訟支出。

Got it.

知道了。

Thank you.

謝謝。

For that.

為了那個原因。

I'd like to follow a question.

我想追問一個問題。

Cary, in the past when you've given guidance, you've given a little bit more color around endpoint IC revenue growth.

Cary，過去當您提供指導時，您對端點 IC 收入成長給出了更多的色彩。

And I'm wondering is this quarter, a little bit more challenging to forecast and what are some of the puts and takes as we think about the sequential growth that you're anticipating in endpoint IC revenue and is there any color as we think about beyond Q2?

我想知道這個季度的預測更具挑戰性，當我們考慮您預期端點 IC 收入的連續增長時，有哪些看跌期權和看跌期權，以及我們考慮的有什麼顏色嗎？超越第二季度？

Jim, I think the colors about the same, maybe I'll provide a little a little more here in Q4 is seasonally our softest quarter as we typically ship in front of the holiday season.

吉姆，我認為顏色大致相同，也許我會在第四季度提供更多一點，這是我們季節性最疲軟的季度，因為我們通常在假期前發貨。

We bucked that seasonality this Q4 and we were able to deliver 11% sequential endpoint IC revenue growth even as we took down more channel inventory in Q4 than we did in Q3.

我們在第四季度克服了季節性因素的影響，即使我們在第四季度比第三季度減少了更多的通路庫存，我們仍能夠實現 11% 的連續端點 IC 收入成長。

Looking to the first quarter, we again expect sequential endpoint IC revenue growth.

展望第一季度，我們再次預期端點 IC 營收將較上季成長。

Now that our large inlay partners.

現在是我們的大鑲嵌合作夥伴。

The inventory levels are relatively healthy and our shipments, as I mentioned previously, are going to more closely match the underlying demand in the fourth quarter.

庫存水準相對健康，正如我之前提到的，我們的出貨量將更接近第四季的基本需求。

We are very pretty pleased that we are now modeling our third quarter in a row of sequential demand increase.

我們非常高興我們現在正在對第三季的連續需求成長進行建模。

The upticks, however, have been modest and I don't think reflective of the snapback that I would expect when the broader retail recovery occurs, while some of our partners have signaled expectations of direct retail recovery in the second half of the year.

然而，成長幅度不大，我認為這並沒有反映出我預期的零售業全面復甦時的反彈，而我們的一些合作夥伴已表示預計下半年零售業將直接復甦。

And as Chris mentioned, some of our green shoots are greener this quarter than they were last quarter, where a couple of steps removed away from end customer demand.

正如克里斯所提到的，本季我們的一些新芽比上季更綠，上季距離最終客戶需求有幾步之遙。

And I don't think it's our place to call the timing of a retail recovery.

我認為我們不應該判斷零售業復甦的時機。

And we're very encouraged by the progress that we're seeing in demand and the improvements that we're seeing.

我們對需求的進展和改進感到非常鼓舞。

But at this point, I'm not modeling a retail rebound in the first half of the year.

但目前，我並沒有對今年上半年的零售業反彈進行建模。

Got it.

知道了。

Thank you again.

再次感謝你。

Thank you.

謝謝。

[Mike Walkley, Canaccord Genuity].

[麥克沃克利，Canaccord Genuity]。

Hi, this is [Juliana John] on for Mike.

大家好，我是麥克的[朱莉安娜·約翰]。

Thank you for taking the question and congrats on the strong performance on.

感謝您提出問題並祝賀您的出色表現。

So for Chris on Pinterest, strong intellectual property.

因此，對於 Pinterest 上的 Chris 來說，擁有強大的智慧財產權。

And can you discuss how you are protecting your IP and update us on the status of your ongoing lawsuits with NXP and also with the potential for a monetary award, given your recent wins, how should we think about a potential amount or could a royalty type of arrangement happen with NXP?

您能否討論一下您如何保護您的智慧財產權，並向我們介紹您與恩智浦正在進行的訴訟的最新情況，以及獲得金錢獎勵的可能性，考慮到您最近的勝訴，我們應該如何考慮潛在金額或特許權使用費類型NXP 會發生什麼安排？

Thank you.

謝謝。

Thank you, Ray, and thank you.

謝謝你，雷，謝謝你。

And the answer to that question will take more time than I think we have here.

回答這個問題需要的時間比我想像的還要長。

I will say that we have gone through three separate trials with NXP one in Washington, one in California, one in Texas, and we have prevailed in all three of those trials.

我想說的是，我們已經與恩智浦進行了三項單獨的試驗，一項在華盛頓，一項在加利福尼亞，一項在德克薩斯州，並且我們在所有三項試驗中都取得了勝利。

In addition, NXP sued us in three separate trials in China and subsequently dropped all three of those trials.

此外，恩智浦在中國對我們進行了三次單獨的審判，隨後撤銷了所有這三次審判。

So I feel good about where we are to date.

所以我對我們目前的進展感覺很好。

There have been jury awards, both in terms of damages and lost profits as well as ongoing royalties.

陪審團在損害賠償和利潤損失以及持續的特許權使用費方面做出了裁決。

But the final judgments haven't yet been entered by the courts.

但法院尚未做出最終判決。

So it's a bit there's motions back and forth and a lot of the other things that go on the legal front.

因此，有一些來回的動議以及許多其他法律方面的事情。

So it's too early for us to call where we will net out, as I said in my prepared remarks, prepare to take this litigation through to a successful completion, and we feel that we need to defend our leadership position in the market, our intellectual property that we expanded so much effort to develop as the market creator and against people who copy our products, infringe our IP So you should expect us to continue pursuing that litigation settlement takes two parties to date.

因此，正如我在準備好的發言中所說，我們現在就確定我們將在何處淨身出戶還為時過早，準備好讓這場訴訟順利完成，我們認為我們需要捍衛我們在市場上的領導地位，我們的智慧財產權我們作為市場創造者付出瞭如此多的努力來開發財產，並反對複製我們產品的人，侵犯我們的知識產權。因此，您應該期望我們繼續尋求迄今為止需要兩方參與的訴訟和解。

There hasn't we haven't been able to reach a settlement with NXT.

我們並沒有未能與 NXT 達成和解。

I don't know if we will or we won't either way.

我不知道我們是否會或不會。

And we feel that it's our obligation to protect our company, protect our IP, protect against people who copy it.

我們認為，我們有義務保護我們的公司、保護我們的智慧財產權、防止他人對其進行複製。

And so expect us to do our best here going forward and like I said, pursue this litigation to a successful outcome.

因此，希望我們今後能盡最大努力，就像我說的那樣，繼續這場訴訟，取得成功的結果。

Thank you.

謝謝。

Thank you, Julia.

謝謝你，茱莉亞。

Thank you.

謝謝。

[Chris Kapps, Loop Capital Markets.]

[克里斯·卡普斯，Loop 資本市場。]

Good afternoon.

午安.

My questions are focused around the M. 800 offering and so I understand the manufacturing yield benefits that you'll get with that chip being produced the advanced technology node given the much greater diaper per wafer yield.

我的問題集中在 M.800 產品上，因此我了解採用先進技術節點生產該晶片所帶來的製造良率優勢，因為每晶圓的尿布產量更高。

And I appreciate that the gross margin tailwind that you mentioned, the 300 bits of upside as that transition happens.

我很欣賞你提到的毛利率順風車，也就是轉型發生時 300 位的上升空間。

I'm just curious if any of that IC unit cost improvement accrues to your inlay customers as well.

我只是好奇您的鑲嵌客戶是否也能享受到 IC 單位成本的改善。

I'm asking because I was wondering if that might be an incentive for them to shift more of their inlay footprint or from your production to inlays based on your chips?

我問這個問題是因為我想知道這是否會激勵他們將更多的鑲嵌足跡轉移或從您的生產轉移到基於您的晶片的鑲嵌？

Then I had a follow-up, Chris.

然後我有一個後續行動，克里斯。

Got it.

知道了。

Thank you.

謝謝。

Good question.

好問題。

So the any hundred has roughly 25% greater rig range than the M700.

因此，any百的鑽孔機範圍比 M700 約 25%。

That's with the same size and or said another way, if you shrink the size of the antennas and save money on the InLight cost, you can get the same effect of very great interest.

也就是說，在尺寸相同的情況下，或者換句話說，如果縮小天線的尺寸並節省 InLight 成本，您可以獲得同樣令人感興趣的效果。

The M700, certainly partners have the opportunity to either yes, that greater range for effort for our applications that need it or as is often the case, reduce their labor costs, their antenna costs, their PET. costs, other costs and achieve the same performance that they've been able to get on the market.

M700，當然合作夥伴有機會為我們需要它的應用提供更大範圍的努力，或者像通常的情況一樣，降低他們的勞動力成本，他們的天線成本，他們的PET。成本、其他成本並實現與市場上相同的性能。

So there is definitely an incentive for our inlay partners to move forward with the M 800.

因此，我們的 Inlay 合作夥伴肯定有動力繼續推進 M 800。

It's just overall goodness for them for us, an incredible product, and they will see benefit from it.

對我們來說，這對他們來說是整體的好處，這是一個令人難以置信的產品，他們會從中受益。

And then, Chris, this is Cary.

然後，克里斯，這是卡里。

I would add that from a pricing perspective, we made the conscious decision to price the M. 800, even though it is more performance and more manufacturable, slightly below the M. 700 to accelerate that adoption as I mentioned earlier, the typical adoption ramp is multiple years.

我想補充一點，從定價的角度來看，我們有意識地決定對M.800 進行定價，儘管它具有更高的性能和更易於製造，但略低於M.700，以加速採用，正如我之前提到的，典型的採用坡道是多年。

We want to do that much quicker than that.

我們希望比這更快地做到這一點。

And we'll know more if we're successful in accelerating this adoption in another six months, but that is our goal at this.

如果我們在接下來的六個月內成功加速這種採用，我們就會知道更多，但這就是我們的目標。

At this point, I'm not modeling a visible gross margin impact in the first half of the year on normal, like I said, a no more than six months.

目前，我並沒有對今年上半年的明顯毛利率影響進行建模，正如我所說，正常情況不超過六個月。

Got it.

知道了。

That's very helpful color.

這是非常有用的顏色。

And then separately, you mentioned one feature of the greater read range and I believe there's other features that are imparted into the M800 chip design and just curious if those benefits are in and of themselves enough to for market to see impetus to for to embrace adoption of a program based on the capabilities of this new product.

然後，您分別提到了更大讀取範圍的一項功能，我相信 M800 晶片設計中還賦予了其他功能，我很好奇這些好處本身是否足以讓市場看到接受採用的動力基於該新產品功能的計劃。

And just curious because if that's the case, it would also be from there that helps extend your IP moat as the industry continues to grow and mature?

只是好奇，因為如果是這樣的話，隨著行業的不斷發展和成熟，它也將有助於擴展您的知識產權護城河？

Thank you.

謝謝。

Yes, good question.

是的，好問題。

Thanks, Chris.

謝謝，克里斯。

And the answer to your question is yes, absolutely.

你的問題的答案是肯定的，絕對的。

Yes.

是的。

We've talked about it at least one feature and our products are protected mode, which allows a retailer to make a tag invisible at point-of-sale to protect consumer privacy.

我們已經討論過至少一項功能，我們的產品處於保護模式，該模式允許零售商在銷售點使標籤不可見，以保護消費者隱私。

We believe that feature will have value in DPP. going forward.

我們相信該功能在 DPP 中具有價值。向前走。

We have introduced other features in the M. 800 that we haven't spoken to publicly yet, but we will over time and we think will drive enhanced performance in enterprise solutions to make those solutions work better and drive preference for Impinj endpoint ICs.

我們在M.800 中引入了尚未公開談論的其他功能，但隨著時間的推移，我們會推出這些功能，並且我們認為這將推動企業解決方案的性能增強，使這些解決方案更好地工作，並推動人們對Impinj 端點IC 的偏好。

That's about all I can say on that topic at this point in time, just know that I'm as we migrated to a more advanced process node, the cost of digital logic came down because it took advantage of that effective savings to introduce features in the IC that we believe will solve previously unsolvable enterprise problems, plus going forward, give us an opportunity to address the EPS we said in our prepared remarks.

這就是我目前就該主題所能說的全部內容，只需知道，當我們遷移到更先進的工藝節點時，數字邏輯的成本下降了，因為它利用了有效的節省來引入功能我們相信IC 將解決以前無法解決的企業問題，並且繼續前進，使我們有機會解決我們在準備好的演講中所說的EPS。

Appreciate the color.

欣賞顏色。

Thanks, Chris.

謝謝，克里斯。

Thank you.

謝謝。

Scott Searle, Roth MKM.

斯科特·塞爾，羅斯·MKM。

Good afternoon.

午安.

Thanks for taking the questions and congrats on the quarter and nice to see the inventory in the channel normalizing at this point in time.

感謝您提出問題並祝賀本季度，很高興看到渠道中的庫存此時正常化。

I apologize.

我道歉。

I joined the call late, but on the systems front, I was wondering if you could provide a little bit of color looking into 2020 for what you're seeing from a pipeline opportunity perspective and linearity perspective, I think there were some larger contracts or projects that were reaching a conclusion or at least a phase of conclusion.

我很晚才加入電話會議，但在系統方面，我想知道您是否可以提供一些關於 2020 年從管道機會角度和線性角度看到的情況的信息，我認為有一些更大的合同或正在得出結論或至少得出一個階段結論的項目。

I'm wondering what the visibility on that phone is and how that pipeline is shaping up?

我想知道該手機上的可見性如何以及該管道是如何形成的？

Hey, Scott, this is Cary.

嘿，斯科特，這是卡里。

I can take a start at that and then Jeff can jump in.

我可以先開始，然後傑夫可以介入。

So looking to the first quarter, we expect similar systems revenue in the fourth quarter and looking a little bit further out than that first half systems revenue benefits from the ND. reader IC last time shipments related to that products end of life.

因此，展望第一季度，我們預計第四季度的系統收入將類似，並且比上半年系統收入受益於 ND 的前景更遠一些。讀卡機 IC 最後一次出貨與該產品的使用壽命結束有關。

Additionally, Phase three of the Europe visionary European retailers loss prevention deployment will conclude in the second quarter.

此外，歐洲富有遠見的歐洲零售商防損部署的第三階段將於第二季結束。

So we've got some benefit in there.

所以我們在那裡得到了一些好處。

There is more opportunities beyond Phase three, but we're taking a conservative approach right now because they may not line up perfectly Phase four.

第三階段之後還有更多機會，但我們現在採取保守的方法，因為它們可能無法完美地配合第四階段。

That is may not line up perfectly with the conclusion of Phase three, we had the same similar situation back when we knew Phase two was completing, but we didn't know when Phase three would kick off.

這可能與第三階段的結束並不完全一致，當我們知道第二階段即將完成時，我們也遇到同樣類似的情況，但我們不知道第三階段何時開始。

And then I would just add maybe a final thought on the systems outlook.

然後我想補充一下對系統前景的最終想法。

We've historically seen that after economic downturns, our endpoint IC business recovers before our systems business.

從歷史上看，我們看到，在經濟衰退之後，我們的端點 IC 業務先於系統業務復甦。

So good color.

顏色這麼好。

On the first half of the year, we're in kind of a little bit of a wait-and-see mode to see how systems recovers in the back half of the year.

今年上半年，我們處於某種觀望狀態，看看系統在下半年會如何恢復。

Great.

偉大的。

Very nice.

很不錯。

Go ahead, Scott.

來吧，斯科特。

Oh, no, no, please continue and Thanks.

哦，不，不，請繼續，謝謝。

Thanks very much.

非常感謝。

I was just going to add that our systems pipeline remains strong.

我只是想補充一點，我們的系統管道仍然強大。

I think what's encouraging to me and our team is that we and our partners are seeing increased sales activity increased detailed project planning, U.S. increase in the number of proof of concepts that are re activating at this time.

我認為對我和我們的團隊來說令人鼓舞的是，我們和我們的合作夥伴看到銷售活動的增加、詳細的項目規劃的增加、美國此時重新激活的概念證明數量的增加。

And really it's in the context of our customers and our partners increasingly understanding the importance of end to end supply chain visibility and process digitization, that ability to that ability to sort of digitize and optimize the entire flow of everything they manufacture transport cell and even process back into their business in returns or other forms of circularity.

事實上，我們的客戶和合作夥伴越來越了解端到端供應鏈視覺性和流程數位化的重要性，這種能力能夠對他們製造的所有產品（運輸單元甚至流程）的整個流程進行數位化和優化。以回報或其他形式的循環回到他們的業務。

So we're encouraged, but the pace and timing of these deployments is always determined by the individual and customers.

因此，我們受到鼓勵，但這些部署的速度和時間始終由個人和客戶決定。

So as we as we get more visibility, we'll integrate that into our guidance each quarter.

因此，當我們獲得更多的知名度時，我們會將其納入每個季度的指導中。

Great.

偉大的。

Very helpful.

很有幫助。

And if I could for a follow-up on the DPP front, it sounds like you had some comments on, so I apologize if this is redundant, I could take it offline, but I thought the initial discussion was contribution may be starting on in '25, not '24, but the opportunity to spread to not only different categories but other geographies.

如果我可以對民進黨方面進行後續跟進，聽起來您對此有一些評論，所以如果這是多餘的，我深表歉意，我可以將其離線，但我認為最初的討論是貢獻可能會在'25，不是'24，而是不僅傳播到不同類別而且傳播到其他地區的機會。

So I'm wondering if you framed it at all in terms of the opportunity as we start to go into 25 and 26 kind of permeating, not just within the EU but into other geographies?

所以我想知道，當我們開始進入 25 和 26 種滲透（不僅在歐盟內部，而且進入其他地區）時，您是否完全從機會角度來建造它？

Thanks.

謝謝。

Yes.

是的。

So on so we did say some words about the debate, and I personally am very excited about the PP., what it means for our business going forward.

因此，我們確實就這場辯論說了一些話，我個人對 PP 感到非常興奮，它對我們業務的未來意味著什麼。

There's two aspects that I would really focus on for DCP number one requirement for retailers initially and other enterprises and other markets going forward to provide true traceability through a product lifecycle from really initially at the time of manufacturing through point of sale.

對於 DCP 最初對零售商以及其他企業和其他市場的首要要求，我真正關注的有兩個方面，即從最初的製造到銷售點的整個產品生命週期提供真正的可追溯性。

With that visibility requires what the laws are going to require, what those customers really need to be able to show and do and the fact that I believe RAIN RFID can provide all the data they need and we can do it in a proper way.

有了這種可見性，就需要法律的要求，這些客戶真正需要能夠展示和做的事情，以及我相信 RAIN RFID 可以提供他們需要的所有數據，並且我們可以以正確的方式做到這一點。

Second aspect, and actually, we see retailers already today and we're going to see more from other customers as well.

第二個方面，實際上，我們今天已經看到了零售商，我們也將從其他客戶那裡看到更多。

See retailers today already planning for DPP speaking with us about it and talking about integration, talking about their needs.

看到今天的零售商已經在計劃 DPP 與我們談論它，談論整合，談論他們的需求。

So it truly is an opportunity for us.

所以這對我們來說確實是一個機會。

Second aspect that I find very exciting is that DPP doesn't end at point of sale.

我發現非常令人興奮的第二個方面是 DPP 不會在銷售點結束。

It ends in items and that's life.

它以物品結束，這就是生活。

So evidenced at items end-of-life, but it will, I believe, opens up the opportunity for us and post-purchase consumer use cases initially focus on recyclability at end of life.

這在物品報廢時得到了證明，但我相信，這將為我們打開機會，購買後的消費者用例最初關注報廢時的可回收性。

There's more because when you have an IC that lasts for the life of an item, it's embedded in the argument becomes part of the item for recycling of end-of-life.

還有更多原因是，當您擁有可在物品生命週期內持續使用的 IC 時，它會嵌入到成為物品報廢回收物品的一部分的論點中。

It opens up consumer use cases that today our market and our industry has touched this company have been very excited about the opportunity for consumer use cases.

它打開了今天我們的市場和行業所觸及的消費者用例，該公司對消費者用例的機會感到非常興奮。

It's very early to say anything about that attack.

現在談論那次襲擊還為時過早。

I can't say anything about that or how that materialized.

我不能透露任何關於這一點或它是如何實現的。

I believe GTP will be in the interests for those consumer use cases over the next couple of years, and I expect us to put some effort into it because it's just an exciting opportunity for us overall.

我相信 GTP 將在未來幾年內符合這些消費者用例的利益，我希望我們為此付出一些努力，因為這對我們整體而言是一個令人興奮的機會。

Hey, Chris, maybe just to follow quickly, when do you expect, I'll call it a clinically meaningful impact.

嘿，克里斯，也許只是為了快速跟進，你期望什麼時候，我會稱之為有臨床意義的影響。

But I think some of the initial deployments are around things like tires, et cetera, but not necessarily high volume items on is this '25 does it become meaningful or is it beyond that?

但我認為一些最初的部署是圍繞輪胎等事物進行的，但不一定是大批量的項目，這是否會變得有意義，或者是否超出了這個範圍？

And we just got a lot of infrastructure that's starting to go out the door in the next 12 to 24 months.

我們剛剛擁有大量基礎設施，這些基礎設施將在未來 12 到 24 個月內開始投入使用。

To support this deployment.

以支援此部署。

As I said in my prepared remarks, which of that becomes is there a real opportunity is further out in time already seen retailers and others planning for DPP., but the regulations on the apparel side, at least at least with the current timing effectively come into force in 2027.

正如我在準備好的發言中所說，真正的機會是在更遠的時間裡，零售商和其他人已經計劃實施 DPP。但服裝方面的法規，至少在目前的時機有效地到來了。於2027年生效。

So you'll see plan and you'll see work going on.

所以你會看到計劃，你會看到工作正在進行中。

You'll see us doing some investments.

你會看到我們進行一些投資。

You'll see us work directly with enterprises as we prepare for that time line.

您將看到我們在為該時間表做準備時直接與企業合作。

So B2B is a long term, not short term opportunity and it's a long-term game for us.

因此，B2B 是一個長期而非短期的機會，對我們來說也是一場長期的遊戲。

So think about it in the same timeframe as we think about these large enterprise opportunity wins, they don't happen in a month they don't happen in a quarter.

因此，在我們考慮這些大型企業機會獲勝的同一時間範圍內考慮一下，它們不會在一個月內發生，也不會在一個季度內發生。

They are going to happen in a year.

它們將在一年內發生。

They take time.

他們需要時間。

But as they roll in the really meaningful for our business, an IGGTPA.s in that same light except much larger than any single enterprise customer.

但隨著它們對我們的業務真正有意義，IGGTPA.s 從同樣的角度來看，除了比任何單一企業客戶大得多之外。

Great.

偉大的。

Thanks so much.

非常感謝。

Yes.

是的。

Thank you.

謝謝。

Thank you.

謝謝。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to Chris Diorio for any closing remarks.

我想將會議轉回克里斯·迪奧裡奧（Chris Diorio）發表閉幕詞。

Thank you.

謝謝。

MJ, I'd like to thank you all for joining the call today and especially to thank you for your ongoing support.

MJ，我要感謝大家今天加入電話會議，特別感謝你們一直以來的支持。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect your line.

現在您可以斷開線路。