Impinj Inc (PI) 2020 Q2 法說會逐字稿

Good day, and welcome to the Impinj Inc.

美好的一天，歡迎來到 Impinj Inc.

Second Quarter 2020 Earnings Conference Call.

2020 年第二季度收益電話會議。

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

（操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Ellen Hayes-Roth, Investor Relations.

我現在想將會議轉交給投資者關係部的 Ellen Hayes-Roth。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，運營商。

Good afternoon, and thank you all for joining us to discuss Impinj's Second Quarter 2020 Results.

下午好，感謝大家加入我們討論 Impinj 2020 年第二季度的業績。

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 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。

Cary Baker, Impinj's CFO, will follow with a detailed review of our second quarter 2020 financial results and third quarter 2020 commentary.

Impinj 的首席財務官 Cary Baker 隨後將詳細回顧我們 2020 年第二季度的財務業績和 2020 年第三季度的評論。

We will then open the call for questions.

然後我們將打開問題電話。

Jeff Dossett, Impinj's Chief Revenue Officer, is also on the call and will join Chris and Cary in the Q&A session.

Impinj 的首席營收官 Jeff Dossett 也在電話會議上，並將與 Chris 和 Cary 一起參加問答環節。

Management's prepared remarks, along with trended financial data, are available on the Investor Relations section of Impinj's website.

管理層準備好的評論以及趨勢財務數據可在 Impinj 網站的投資者關係部分獲取。

Before we start the call, please note that we will make certain statements during the call that are not historical facts, including those regarding our plans, objectives or expected performance.

在我們開始電話會議之前，請注意我們將在電話會議期間做出某些非歷史事實的聲明，包括關於我們的計劃、目標或預期績效的聲明。

The expected or potential impact of COVID-19 on our business, operating results, financial condition or prospects and the expected or potential responses of government authorities, customers, partners and the company to COVID-19.

COVID-19 對我們的業務、經營成果、財務狀況或前景的預期或潛在影響，以及政府當局、客戶、合作夥伴和公司對 COVID-19 的預期或潛在反應。

To the extent we make such statements, they are forward-looking within the meaning of the Private Securities Litigation Reform Act from 1995.

就我們作出此類聲明而言，它們在 1995 年《私人證券訴訟改革法案》的含義範圍內具有前瞻性。

Any such forward-looking statements represent our outlook only as of the date of this conference call.

任何此類前瞻性陳述僅代表我們截至本次電話會議之日的展望。

While we believe any forward-looking statements we make, including concerning COVID-19, are reasonable, our actual results could differ materially because any statements based on current expectations are subject to risks and uncertainties.

雖然我們相信我們所做的任何前瞻性陳述（包括關於 COVID-19 的陳述）都是合理的，但我們的實際結果可能會存在重大差異，因為任何基於當前預期的陳述都存在風險和不確定性。

Please see the risk factors in the annual and quarterly reports we file with the SEC and risk factors in the Form 10-Q for more information about these risks.

有關這些風險的更多信息，請參閱我們向 SEC 提交的年度和季度報告中的風險因素以及 10-Q 表格中的風險因素。

We do not undertake and expressly disclaim any objection to update or alter our forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

我們不承諾並明確否認任何反對更新或更改我們的前瞻性陳述，無論是由於新信息、未來事件或其他原因，除非適用法律要求。

During today's call, all financial numbers we discuss, except for revenue or where we explicitly state otherwise, are non-GAAP financial measures.

在今天的電話會議中，我們討論的所有財務數字，除了收入或我們明確說明的以外，都是非 GAAP 財務指標。

Balance sheet and cash flow metrics are on a GAAP basis.

資產負債表和現金流量指標基於公認會計原則。

Free cash flow is a non-GAAP measure.

自由現金流量是一項非公認會計原則衡量標準。

Before turning to our results and outlook, I'd like to note that the company will virtually attend the 9th Annual Needham Industrial Technologies Conference on August 6, the Oppenheimer 23rd Annual Technology, Internet & Communications Conference on August 11, Canaccord Genuity's 40th Annual Growth Conference on August 13, and Colliers Securities' Conference on September 10.

在談到我們的結果和展望之前，我想指出，公司將以虛擬方式參加 8 月 6 日舉行的第 9 屆 Needham 工業技術年會、8 月 11 日舉行的 Oppenheimer 第 23 屆年度技術、互聯網和通信大會、Canaccord Genuity 的第 40 屆年度增長大會8 月 13 日的會議和 9 月 10 日高力證券的會議。

We look forward to connecting with many of you at these upcoming events.

我們期待在這些即將舉行的活動中與你們中的許多人聯繫。

I will now turn the call to Chris Diorio, Impinj's Co-Founder and Chief Executive Officer.

我現在將電話轉給 Impinj 的聯合創始人兼首席執行官 Chris Diorio。

Chris?

克里斯？

Thank you, Ellen.

謝謝你，艾倫。

Thank you all for joining our call.

感謝大家加入我們的電話會議。

I hope you and your loved ones are and remain safe and well.

我希望您和您所愛的人平安無事。

COVID-19 has significantly affected Impinj and our customers in the short term, causing unprecedented volatility in the first, second and third quarters of 2020.

COVID-19 在短期內對 Impinj 和我們的客戶產生了重大影響，導致 2020 年第一、第二和第三季度出現前所未有的波動。

Looking further out, we believe COVID-19 will accelerate our secular opportunities in the mid- to long terms and advance our thesis of connecting and giving digital life to everything.

放眼未來，我們相信 COVID-19 將在中長期加速我們的長期機遇，並推進我們的論點，即連接一切並賦予一切數字生活。

Starting with the short term, COVID-19 severely impacted retail apparel, our leading endpoint IC market with nonessential stores mostly closed.

從短期開始，COVID-19 嚴重影響了零售服裝，我們領先的端點 IC 市場的非必要商店大多關閉。

In other markets, COVID-19's impact varied by opportunity and geography, but the overall impact was negative.

在其他市場，COVID-19 的影響因機會和地理位置而異，但總體影響是負面的。

Our Inlay partners adjusting to the volatile demand environment, first expedited endpoint IC shipments from second quarter to first, then rescheduled backlog from second quarter to second half while also slowing second quarter bookings.

我們的 Inlay 合作夥伴為適應多變的需求環境，首先將端點 IC 出貨量從第二季度加快到第一季度，然後將積壓訂單從第二季度重新安排到下半年，同時也減緩了第二季度的預訂。

As a consequence, our second quarter revenue contracted quarter-over-quarter and year-over-year.

因此，我們第二季度的收入環比和同比均出現收縮。

The rescheduling requests peaked in May, with bookings improving notably in July.

改期請求在 5 月達到頂峰，預訂量在 7 月顯著改善。

Our Inlay partners are today consuming inventory they accumulated in the first quarter, and we expect that inventory to normalize by the end of the third quarter.

我們的 Inlay 合作夥伴今天正在消耗他們在第一季度積累的庫存，我們預計該庫存將在第三季度末恢復正常。

On the brighter side, demand for those endpoint ICs used in industrial, supply chain and specialty applications, which are smaller but still meaningful opportunities for us, remain steady in second quarter in generating a richer-than-typical products mix and higher margins.

從好的方面來看，對用於工業、供應鍊和專業應用的端點 IC 的需求在第二季度保持穩定，這些應用雖然規模較小但對我們來說仍然是有意義的機會，但會產生比典型產品更豐富的產品組合和更高的利潤率。

On the systems side of the business, second quarter revenue also declined quarter-over-quarter and year-over-year driven by the North American systems project transitioning to its operational phase and CapEx pullbacks at other end-user projects.

在業務的系統方面，由於北美系統項目過渡到運營階段以及其他最終用戶項目的資本支出回落，第二季度收入也環比和同比下降。

The former did bring a bright spot with the customer ordering more gateways, despite the project transition, generating modest second quarter revenue.

前者確實帶來了一個亮點，儘管項目過渡，但客戶訂購了更多網關，第二季度收入不多。

The latter, tight CapEx manifested in lower deal count and smaller deal size, with many consumer-facing use cases like race timing and airline baggage tracking delayed or put on hold.

後者，資本支出緊張表現為交易數量減少和交易規模縮小，許多面向消費者的用例，如比賽時間和航空行李跟踪延遲或擱置。

Also, pilots or deployments that require nonessential on-site personnel were similarly put on hold.

此外，需要非必要現場人員的試點或部署也同樣被擱置。

Finally, our systems distributors are today reducing their inventory levels on lower sell-through and only placing new orders for products or quantities not currently in inventory.

最後，我們的系統分銷商今天正在降低他們的庫存水平以降低銷售率，並且只為當前沒有庫存的產品或數量下新訂單。

Today, retail stores are reopening in many geographies, particularly in Asia.

如今，零售店在許多地區重新開業，尤其是在亞洲。

But productivity remains low, particularly in North America.

但生產力仍然很低，尤其是在北美。

While the pandemic's apparent resurgence tempers our third quarter endpoint IC expectations, some large retail deployments continue expanding worldwide, including at a notable North American end user.

雖然大流行病的明顯復甦緩和了我們對第三季度端點 IC 的預期，但一些大型零售部署繼續在全球範圍內擴張，包括一個著名的北美最終用戶。

On the systems side, tightened end-user CapEx budgets and ongoing slowness in consumer-facing opportunities likewise temper our third quarter systems expectations.

在系統方面，收緊的最終用戶資本支出預算和麵向消費者的機會持續放緩同樣削弱了我們對第三季度系統的預期。

Today's vantage point also suggests that the fourth quarter may not follow typical seasonality.

今天的有利位置還表明，第四季度可能不會遵循典型的季節性。

Turning to the medium term, we see COVID-19 accentuating our opportunity.

談到中期，我們看到 COVID-19 加劇了我們的機會。

We saw and felt it even in the depth of COVID crisis.

即使在 COVID 危機最嚴重的時候，我們也看到並感受到了它。

Visionary RAIN-enabled retailers with better visibility into their inventories, we're able to quickly pivot online sales and omnichannel fulfillment.

有遠見的支持 RAIN 的零售商可以更好地了解他們的庫存，我們能夠快速調整在線銷售和全渠道履行。

Many of those retailers are today accelerating plans to modernize their in-store experience, improve customer satisfaction and reduce vectors for virus transmission.

如今，其中許多零售商正在加快實施店內體驗現代化、提高客戶滿意度和減少病毒傳播媒介的計劃。

For example, COVID-19 is driving a transition away from traditional loss prevention and toward RAIN-enabled loss prevention, touch-free self-checkout and seamless returns, offering large projects with leading loss-prevention partners and retail end users.

例如，COVID-19 正在推動從傳統的防損向支持 RAIN 的防損、非接觸式自助結賬和無縫退貨的轉變，為領先的防損合作夥伴和零售終端用戶提供大型項目。

In supply chain, as shipment volumes ramped to traditionally short-lived holiday peaks and stayed there, end users accelerated their plans to modernize their operations.

在供應鏈中，隨著出貨量上升到傳統上短暫的假期高峰並保持在那裡，最終用戶加快了他們的運營現代化計劃。

We are today seeing traction not only reading items passing through dock doors, which we have discussed on prior calls, but also on conveyor belts to reduce manual touch and improve shipment accuracy.

今天，我們不僅看到牽引力讀取通過碼頭門的物品，我們在之前的電話中已經討論過，而且還看到傳送帶上的牽引力，以減少人工接觸並提高裝運準確性。

Notably, a second large North American supply chain and logistics provider is commencing a deployment with a scale and at a pace that are difficult to forecast we believe will be significant by most any measure.

值得注意的是，第二大北美供應鍊和物流供應商正在開始部署，其規模和速度難以預測，我們認為無論以何種標準衡量，這都將是重要的。

We expect these accelerating retail and supply chain and logistics opportunities to not only drive long-term systems revenue, but also significant endpoint IC volumes as deployments transition to operations, mostly in 2021 and beyond.

我們預計這些加速發展的零售、供應鍊和物流機會不僅會推動長期系統收入，還會隨著部署過渡到運營（主要是在 2021 年及以後）推動顯著的端點 IC 數量。

With our strong balance sheet and staying power, we will not only weather the impacts of COVID-19, and but we will invest in these opportunities and exit the other side of COVID-19 stronger.

憑藉我們強大的資產負債表和持久力，我們不僅將經受住 COVID-19 的影響，而且我們將投資於這些機會並更強大地退出 COVID-19 的另一面。

Looking to the long term, we believe COVID-19 will accelerate our vision of connecting and giving digital life to everything.

從長遠來看，我們相信 COVID-19 將加速我們實現萬物互聯並賦予數字生活的願景。

Leading businesses are investing in modernizing their operations to address structural inefficiencies and deliver the seamless e-commerce, online and in-store experiences with their partners and customers demand.

領先的企業正在投資實現運營現代化，以解決結構性低效問題，並根據合作夥伴和客戶的需求提供無縫的電子商務、在線和店內體驗。

To do so, they want and need the visibility, insights, virtualization and customer experience that RAIN brings.

為此，他們希望並需要 RAIN 帶來的可見性、洞察力、虛擬化和客戶體驗。

Our pipeline of large systems opportunities and end-user engagements is richer than and deeper than at any time in our history.

我們的大型系統機會和最終用戶參與管道比我們歷史上的任何時候都更豐富、更深入。

Leading end users are pushing us to expedite innovations and solutions, not delay them.

領先的最終用戶正在推動我們加快創新和解決方案的速度，而不是拖延它們。

They are also asking for more and better capabilities less.

他們還要求更多更好的能力更少。

Our engagements with top-tier OEMs, ISVs, SIs and IoT providers are also advancing as they feel the same pull we do from those large visionary end users.

我們與頂級 OEM、ISV、SI 和 IoT 提供商的合作也在推進，因為他們感受到了我們從那些有遠見的大型最終用戶那裡所做的同樣的拉動。

The game-changing products we've introduced like the Impinj M700 endpoint IC, and the IoT vision we have advanced resonate in a world forever changed by COVID-19.

我們推出的改變遊戲規則的產品，如 Impinj M700 端點 IC，以及我們提出的物聯網願景，在被 COVID-19 永遠改變的世界中產生共鳴。

We are energized by the pace toward realizing our vision and the partners and end users we are striving it with.

我們為實現我們的願景的步伐以及與我們一起努力的合作夥伴和最終用戶感到鼓舞。

Turning to new products.

轉向新產品。

Our production ramps were a bright spot in the quarter as we delivered production volumes of our M700 endpoint IC and R700 reader product families.

隨著我們交付了 M700 端點 IC 和 R700 讀卡器產品系列的量產，我們的生產量增加成為本季度的一個亮點。

We believe the M700 will fundamentally change the RAIN landscape by proving our ability to migrate an endpoint IC aggressively down Moore's law, improving performance while at the same time adding new functionalities that were previously out of reach.

我們相信 M700 將證明我們有能力按照摩爾定律積極遷移端點 IC，提高性能，同時添加以前無法實現的新功能，從而從根本上改變 RAIN 格局。

Our partners and end users are excited by both the performance and the first key new functionality, Protected Mode, which enables embedded tagging for retail self-checkout, loss prevention and seamless returns.

我們的合作夥伴和最終用戶對性能和第一個關鍵新功能保護模式感到興奮，該功能支持零售自助結賬、防損和無縫退貨的嵌入式標籤。

We see both the M700 and R700 as push drivers, affirming our position as the leading RAIN innovator and product supplier now and in the future.

我們將 M700 和 R700 視為推動因素，肯定了我們現在和未來作為領先的 RAIN 創新者和產品供應商的地位。

The R700 also received recognition for its creative design in the 2020 Core77 Design Awards.

R700 的創意設計還在 2020 年 Core77 設計大獎中獲得認可。

The Impinj M700 and R700 are centerpieces of our platform and powerful growth drivers for our business.

Impinj M700 和 R700 是我們平台的核心，也是我們業務的強大增長動力。

We remain committed to further inhibition across all our product lines.

我們仍然致力於進一步抑制我們所有的產品線。

On the organizational side, second quarter brought both excitement and introspection.

在組織方面，第二季度帶來了興奮和反省。

Excitement in Jeff Dossett promotion to Chief Revenue Officer.

傑夫·多塞特 (Jeff Dossett) 晉升為首席營收官，令人興奮。

He brings tremendous insights and leadership running our go-to-market organization.

他為我們的上市組織帶來了巨大的洞察力和領導力。

He has been instrumental in our sales, partner and product successes, and we foresee continued excellence.

他在我們的銷售、合作夥伴和產品成功方面發揮了重要作用，我們預計將繼續保持卓越。

Congratulations, Jeff, on your well-deserved promotion.

祝賀你，傑夫，當之無愧的晉升。

We are also happy that from a team perspective, we adapted well to our virtual work environment and have maintained our productivity.

我們也很高興從團隊的角度來看，我們很好地適應了我們的虛擬工作環境並保持了我們的生產力。

Employee retention was high, and we added talent to a few targeted areas.

員工保留率很高，我們在一些目標領域增加了人才。

The second quarter also brought deep introspection.

第二季也帶來了深刻的反省。

George Floyd's murder on the evening of the United States' Memorial Day, May 25, 2020, expose those of us included who were silent on races as part of the problem.

喬治·弗洛伊德 (George Floyd) 在 2020 年 5 月 25 日美國陣亡將士紀念日晚上被謀殺，暴露了我們這些對種族問題保持沉默的人。

Today, we can be silent no more.

今天，我們不能再沉默了。

The next day, I wrote a letter to all Impinj employees closing with these words.

第二天，我給所有 Impinj 員工寫了一封信，以這些話結尾。

"Together, we can commit to not let today's events paid from our memories as has happened so often in the past, describe instead for the better and to dedicate ourselves in doing so." In response, so many of our employees committed to making our company a model of diversity and inclusion that I am confident that they and we will make it so.

“我們可以一起承諾，不要像過去經常發生的那樣，讓今天的事件從我們的記憶中得到回報，而是為了更好地描述，並致力於這樣做。”作為回應，我們有如此多的員工致力於使我們的公司成為多元化和包容性的典範，我相信他們和我們會做到這一點。

And we, all of us, will not forget.

而我們，我們所有人，都不會忘記。

In closing, second quarter was challenging and COVID-19's immediate impact will extend into the third quarter.

最後，第二季度充滿挑戰，COVID-19 的直接影響將延續到第三季度。

Regardless, we remain focused on emerging from COVID-19 a stronger company and a stronger market position than when we entered it.

無論如何，我們仍然專注於從 COVID-19 中脫穎而出，成為比我們進入時更強大的公司和更強大的市場地位。

As I said last quarter, we have not lost sight of the big picture, of the benefits we bring to retailers and of the improvements we can drive in supply chain and logistics.

正如我上個季度所說，我們並沒有忽視大局，我們給零售商帶來的好處，以及我們可以在供應鍊和物流方面推動的改進。

And we see brightness ahead with adoption accelerating as leading end users leverage the visibility, insights, virtualization and customer experience that RAIN brings.

隨著領先的最終用戶利用 RAIN 帶來的可見性、洞察力、虛擬化和客戶體驗，我們看到未來的光明和加速採用。

With a strong balance sheet, game-changing new products and a compelling platform and vision that sits squarely in the center of end-user business transformations, our future is bright.

憑藉強大的資產負債表、改變遊戲規則的新產品以及引人注目的平台和直接位於最終用戶業務轉型中心的願景，我們的未來是光明的。

We will continue focusing on leading apparel retailers and on leading supply chain and logistics companies, investing in operational improvements for them and business opportunities for us.

我們將繼續專注於領先的服裝零售商以及領先的供應鍊和物流公司，投資於他們的運營改進和我們的商機。

We will do so with a fierce determination to win, keeping a close eye on expenses as we leverage our resources to increase our competitiveness and chart a path to adjusted EBITDA breakeven on the other side of COVID-19.

我們將以堅定的取勝決心這樣做，密切關注支出，因為我們利用我們的資源來提高我們的競爭力，並在 COVID-19 的另一端規劃調整後的 EBITDA 盈虧平衡之路。

Be safe and be well.

保持安全並保持健康。

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

我現在將把電話轉給 Cary 進行詳細的財務審查和第二季度評論。

Cary?

卡里？

Thank you, Chris, and good afternoon, everyone.

謝謝克里斯，大家下午好。

Today, I will cover both the metrics we typically discuss on earnings calls as well as additional, more detailed metrics, which we believe are appropriate given the market uncertainties.

今天，我將介紹我們通常在收益電話會議上討論的指標，以及我們認為在市場不確定性情況下合適的其他更詳細的指標。

Second quarter revenue was $26.5 million, declining 30.7% year-over-year and 44.7% quarter-over-quarter compared with $38.2 million in second quarter 2019 and $47.8 million in the first quarter 2020.

第二季度收入為 2650 萬美元，與 2019 年第二季度的 3820 萬美元和 2020 年第一季度的 4780 萬美元相比，同比下降 30.7%，環比下降 44.7%。

Second quarter endpoint IC revenue was $18.5 million, declining 21.8% year-over-year and 44.9% quarter-over-quarter compared with $23.7 million in second quarter 2019 and $33.7 million in first quarter 2020.

第二季度端點 IC 收入為 1850 萬美元，同比下降 21.8%，環比下降 44.9%，而 2019 年第二季度為 2370 萬美元，2020 年第一季度為 3370 萬美元。

Second quarter endpoint IC bookings declined significantly year-over-year and quarter-over-quarter driven by Inlay partners rescheduling backlog and managing inventory levels in this new demand environment.

第二季度端點 IC 預訂量同比和環比大幅下降，原因是 Inlay 合作夥伴在這種新的需求環境中重新安排積壓訂單並管理庫存水平。

We expect our Inlay partners to take advantage of the recovering retail demand environment in the third quarter to reduce the inventory they built in first quarter 2020.

我們預計我們的 Inlay 合作夥伴將利用第三季度零售需求環境的複蘇來減少他們在 2020 年第一季度建立的庫存。

While that dynamic, coupled with customer-specific adjustments, will limit our third quarter revenue recovery.

雖然這種動態，加上針對客戶的調整，將限制我們第三季度的收入復甦。

We see positive momentum in our bookings pace.

我們看到了預訂速度的積極勢頭。

As of July 24, July bookings have improved significantly over June and are higher than any month in the second quarter, and we still have a week of July to go.

截至 7 月 24 日，7 月的預訂量較 6 月有了顯著改善，高於第二季度的任何一個月，而 7 月還有一周的時間。

We expect our customers to complete their supply chain inventory adjustments in the third quarter and our fourth quarter endpoint IC revenue will be more indicative of end-user demand.

我們預計我們的客戶將在第三季度完成供應鏈庫存調整，而我們第四季度的端點 IC 收入將更能反映最終用戶的需求。

Second quarter systems revenue was $7.9 million, declining 45.4% year-over-year and 44.1% quarter-over-quarter compared with $14.5 million in second quarter 2019 and $14.1 million in first quarter 2020.

第二季度系統收入為 790 萬美元，同比下降 45.4%，環比下降 44.1%，而 2019 年第二季度為 1450 萬美元，2020 年第一季度為 1410 萬美元。

Gateway revenue declined both year-over-year and quarter-over-quarter, led by the large North American project transitioning to an operational phase with modest revenue from that customer in the second quarter.

Gateway 收入同比和環比均有所下降，主要原因是北美大型項目過渡到運營階段，第二季度該客戶的收入不高。

Reader revenue declined year-over-year and quarter-over-quarter, impacted by COVID-related project delays and tight customer CapEx budgets.

受 COVID 相關項目延遲和客戶資本支出預算緊張的影響，讀者收入同比和環比下降。

Reader IC revenue grew year-over-year and quarter-over-quarter, due in part to modest partner inventory builds to reduce supply risk.

閱讀器 IC 收入同比和環比增長，部分原因是合作夥伴為降低供應風險而適度增加庫存。

We expect third quarter systems revenue to remain constrained by continued tight CapEx budgets, our distribution partners rationalizing their inventory levels for lower sell-through and by lower reader IC revenue, the latter due in part to reduced demand for retail handhelds.

我們預計第三季度系統收入將繼續受到持續緊縮的資本支出預算、我們的分銷合作夥伴合理化庫存水平以降低銷售率和較低的閱讀器 IC 收入的限制，後者部分是由於對零售手持設備的需求減少。

Second quarter gross margin was 51.4% compared with 50% a year ago and 46.1% last quarter.

第二季度毛利率為 51.4%，去年同期為 50%，上季度為 46.1%。

On a year-over-year basis, gross margin improved 140 basis points driven by underlying product margins, partially offset by leverage on lower revenue.

與去年同期相比，在基礎產品利潤率的推動下，毛利率提高了 140 個基點，部分被較低收入的槓桿所抵消。

On a quarter-over-quarter basis, gross margin improved 530 basis points driven by lower E&O charges and improved underlying product gross margins partially offset by leverage on lower revenue.

在環比基礎上，毛利率提高了 530 個基點，這主要歸功於較低的 E&O 費用和提高的基礎產品毛利率，部分被較低收入的槓桿作用所抵消。

Total second quarter operating expense was $18.8 million compared with $18.3 million in second quarter 2019 and $19 million in first quarter 2020.

第二季度總運營費用為 1880 萬美元，而 2019 年第二季度為 1830 萬美元，2020 年第一季度為 1900 萬美元。

Research and development expense was $8.7 million.

研發費用為 870 萬美元。

Sales and marketing expense was $4.8 million.

銷售和營銷費用為 480 萬美元。

General and administrative expense was $5.4 million.

一般和行政費用為 540 萬美元。

Second quarter adjusted EBITDA was a loss of $5.2 million compared with a profit of $800,000 in second quarter 2019 and a profit of $3 million in first quarter 2020.

第二季度調整後的 EBITDA 虧損 520 萬美元，而 2019 年第二季度盈利 80 萬美元，2020 年第一季度盈利 300 萬美元。

We have excluded costs of $5.4 million associated with an expected settlement of our shareholder class action lawsuits for second quarter non-GAAP general and administrative expense, adjusted EBITDA and non-GAAP net loss.

我們已排除與第二季度非 GAAP 一般和行政費用、調整後 EBITDA 和非 GAAP 淨虧損的股東集體訴訟的預期和解相關的 540 萬美元費用。

Second quarter GAAP net loss was $17.5 million.

第二季度 GAAP 淨虧損為 1750 萬美元。

Second quarter non-GAAP net loss was $5.7 million or $0.25 per share using a weighted average diluted share count of 22.7 million shares.

第二季度非 GAAP 淨虧損為 570 萬美元或每股 0.25 美元，使用 2270 萬股的加權平均稀釋股數計算。

Turning to the balance sheet.

轉向資產負債表。

We ended the second quarter with cash, cash equivalents and short-term investments of $120.9 million compared with $59.8 million in second quarter 2019 and $119.2 million in first quarter 2020.

截至第二季度末，我們的現金、現金等價物和短期投資為 1.209 億美元，而 2019 年第二季度為 5980 萬美元，2020 年第一季度為 1.192 億美元。

Inventory totaled $37.1 million, down $800,000 from second quarter 2019 and increasing $5.3 million from first quarter 2020.

庫存總額為 3710 萬美元，比 2019 年第二季度減少 80 萬美元，比 2020 年第一季度增加 530 萬美元。

The quarter-over-quarter inventory increase was driven by lower demand due to COVID-19 as well as the production ramp of the Impinj M700.

庫存環比增長是由 COVID-19 導致的需求下降以及 Impinj M700 的產量增加所推動的。

In second half 2020, we will maintain adequate supply of our 200-millimeter endpoint ICs as we set the stage for our transition to the 300-millimeter M700 family.

2020 年下半年，我們將保持 200 毫米端點 IC 的充足供應，因為我們為過渡到 300 毫米 M700 系列奠定了基礎。

In the second quarter, net cash provided by operating activities was $1 million and property and equipment purchases totaled $100,000.

第二季度，經營活動提供的現金淨額為 100 萬美元，財產和設備採購總額為 100,000 美元。

Free cash flow was $800,000.

自由現金流為 800,000 美元。

I will now highlight a few items impacting our business.

我現在將強調一些影響我們業務的項目。

First, our suppliers that operated at reduced capacity or were closed due to temporary government mandates have recovered.

首先，我們的供應商在產能減少或因政府臨時命令而關閉時已經恢復。

They are today operating at nearly 100% of capacity, but we continue to be vigilant around component availability in a dynamic demand environment.

他們今天以接近 100% 的容量運行，但我們繼續對動態需求環境中的組件可用性保持警惕。

Second, we have an agreement to sell all outstanding shareholder litigation.

其次，我們有一項協議，出售所有未決股東訴訟。

We recorded a $5.4 million settlement-related expense in our second quarter GAAP general and administrative expense, and we expect a corresponding cash outflow during third quarter 2020.

我們在第二季度的 GAAP 一般和管理費用中記錄了 540 萬美元的結算相關費用，我們預計 2020 年第三季度將出現相應的現金流出。

After considering a number of factors, including the significant expense of protracted litigation of this type in time and money, we determined that it was in the company's and its shareholders' best interest to settle the suits.

在考慮了很多因素之後，包括此類曠日持久的訴訟在時間和金錢上的巨大開支，我們確定和解訴訟符合公司及其股東的最佳利益。

As Chris noted, we have significant opportunities ahead of us, and we look forward to focusing on enabling digital life for everything.

正如 Chris 指出的那樣，我們面臨著重大機遇，我們期待專注於為萬物實現數字生活。

Third, in the second quarter, we generated positive free cash flow from strong underlying product mix, boosting gross margin and the team effectively managing operating expense, working capital and capital expenditures.

第三，在第二季度，我們從強大的基礎產品組合中產生了正的自由現金流，提高了毛利率，團隊有效地管理了運營費用、營運資本和資本支出。

Looking into the third quarter, those benefits will reverse.

展望第三季度，這些好處將會逆轉。

Operating expenses will increase, working capital will consume cash, capital expenditures will increase and underlying product mix will be less favorable.

運營費用將增加，營運資金將消耗現金，資本支出將增加，基礎產品組合將不那麼有利。

While we will use our balance sheet in the third quarter to fund our business, we remain confident in our plan to return to adjusted EBITDA at breakeven on the other side of COVID-19.

雖然我們將在第三季度使用我們的資產負債表為我們的業務提供資金，但我們仍然對我們計劃在 COVID-19 的另一端恢復到盈虧平衡的調整後 EBITDA 充滿信心。

Turning to our outlook.

轉向我們的前景。

Considering the ongoing impact of COVID-19 on our partners and end users, we feel it is prudent to not give quantitative third quarter guidance.

考慮到 COVID-19 對我們的合作夥伴和最終用戶的持續影響，我們認為不提供量化的第三季度指導是謹慎的做法。

Instead, we will share additional metrics about our business that we do not intend to share on an ongoing basis.

相反，我們將分享我們不打算持續分享的關於我們業務的額外指標。

As of July 1, third quarter backlog is scheduled to ship in quarter with $16.2 million.

截至 7 月 1 日，第三季度積壓訂單計劃按季度出貨 1620 萬美元。

In addition, as of July 24, third quarter bookings scheduled to ship in quarter were $7 million up 20% quarter-over-quarter and down 17% year-over-year.

此外，截至 7 月 24 日，計劃在本季度發貨的第三季度預訂量為 700 萬美元，環比增長 20%，同比下降 17%。

Further third quarter upside is limited both by continued demand volatility and by our partners, rationalizing their endpoint IC and systems inventory levels.

第三季度的進一步上行受到持續需求波動和我們的合作夥伴的限制，使他們的端點 IC 和系統庫存水平合理化。

Despite the third quarter uncertainty, we see encouraging signs as our partners and end users recover in the new demand environment.

儘管第三季度存在不確定性，但隨著我們的合作夥伴和最終用戶在新的需求環境中復蘇，我們看到了令人鼓舞的跡象。

We remain focused on emerging on the other side of COVID-19, a stronger and more competitive company, delivering against the new opportunities that COVID-19 is creating.

我們仍然專注於在 COVID-19 的另一端崛起，成為一家更強大、更具競爭力的公司，以應對 COVID-19 正在創造的新機遇。

In closing, I want to thank our Impinj team, our customers, our suppliers and you, our investors, for your ongoing support in these uncertain times.

最後，我要感謝我們的 Impinj 團隊、我們的客戶、我們的供應商以及您，我們的投資者，感謝您在這些不確定時期的持續支持。

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

我現在將電話轉給接線員以打開問答環節。

(Operator Instructions) Our first question today will come from Jim Ricchiuti with Needham & Company.

（操作員說明）我們今天的第一個問題將來自 Needham & Company 的 Jim Ricchiuti。

Yes.

是的。

I'm wondering if there's a way to look at the business and look at some of the areas of the markets that you address that have opened.

我想知道是否有一種方法可以查看業務並查看您所針對的已開放市場的某些領域。

And maybe give us some perspective as to the trajectory of the recovery you're seeing.

也許給我們一些關於你所看到的複蘇軌蹟的觀點。

Is there any way that you can -- we've seen, obviously, parts of Europe opening up.

有什麼辦法可以——顯然，我們已經看到歐洲部分地區正在開放。

We've seen parts of the U.S. that open on the retail side.

我們已經看到美國部分地區在零售方面開放。

And of course, there are other issues now with the pandemic spreading.

當然，隨著大流行的蔓延，現在還有其他問題。

But I'm wondering if there is anything you can share with us that might give us some sense as to how we might see the recovery?

但我想知道您是否可以與我們分享任何內容，讓我們對如何看待復甦有所了解？

Thanks, Jim, and good afternoon to you as well.

謝謝，吉姆，也祝你下午好。

We can -- I think I'm going to tag team this one with Jeff.

我們可以——我想我要和 Jeff 一起組隊。

But just -- and our answer, of course, will be very qualitative here.

但是，我們的答案當然是非常定性的。

Some of the words I said in my prepared remarks associated with the rescheduling request peaking in May and some return to orders in July and to comments Cary made about July being a stronger month.

我在準備好的發言中所說的一些話與重新安排請求在 5 月達到頂峰有關，一些話在 7 月恢復訂單，以及卡里關於 7 月是一個更強勁的月份的評論。

We're seeing a return.

我們看到了回報。

I can't use the word normalcy in that return because there is so much uncertainty out there associated with COVID-19.

我不能在該回報中使用正常這個詞，因為與 COVID-19 相關的不確定性太多了。

And what we wanted to do here was really to give a picture of a little bit less about the short term and a little bit more about the mid- -- the medium and long terms.

我們在這裡真正想做的是提供一幅關於短期的畫面，多一點關於中期——中期和長期的畫面。

And the fact that we see transformations happening in our 2 key focus markets, those being retail and supply chain and logistics.

事實上，我們看到我們的兩個主要重點市場正在發生轉變，即零售、供應鍊和物流。

And then we're broadly out in the market as end users really adapt their businesses for COVID-19.

然後我們廣泛進入市場，因為最終用戶真正為 COVID-19 調整他們的業務。

So we see return coming out this year.

所以我們看到今年的回報。

Of course, depending on what happened in the fourth quarter.

當然，這取決於第四季度發生的事情。

It's hard to say with COVID-19.

COVID-19 很難說。

But we do see tailwinds now from these large end customers.

但我們現在確實看到了來自這些大型終端客戶的順風。

That are striving to change their organizations.

他們正在努力改變他們的組織。

And I know I didn't directly answer your question.

我知道我沒有直接回答你的問題。

Maybe Jeff can help me out a little bit here with a little bit work in size around some other points.

也許 Jeff 可以幫助我解決一些其他問題。

Jim, this is Jeff Dossett.

吉姆，這是傑夫多塞特。

Just a couple of things I'll add to Chris' comments.

我將在 Chris 的評論中添加一些內容。

First of all, I'd reinforce that I think the supply chain and logistics, there are bright spots in supply chain and logistics around the globe.

首先，我要強調的是，我認為供應鍊和物流，全球供應鍊和物流領域都有亮點。

And then I think I would add that, of course, the timing and pace of recovery in different geographies and in different industry sectors varies around the globe.

然後我想我要補充一點，當然，全球不同地區和不同行業的複蘇時間和步伐各不相同。

We are seeing some moderate recovery earlier in Asia as it recovers and returns to a new normal.

隨著亞洲恢復並恢復到新常態，我們看到亞洲早些時候出現了一些溫和的複蘇。

So we're seeing retail reemerging.

所以我們看到零售業重新出現。

We're seeing business in general, reemerging as nonessential team members are able to return to work and return to either existing deployments and/or testing new proofs of concept or proof of value, which are bright spots in terms of longer-term opportunity.

總體而言，我們看到業務重新出現，因為非必要的團隊成員能夠重返工作崗位並返回現有部署和/或測試新的概念證明或價值證明，這些都是長期機會的亮點。

So I think there is geographic variance in terms of the recovery, but bright spots that we're seeing around the globe.

因此，我認為在復蘇方面存在地域差異，但我們在全球範圍內看到了亮點。

Okay.

好的。

The follow-up question I had is just one of the other players in the RFID market has talked about the fact that in some cases, it's difficult to get even into certain locations because of the pandemic to carry out installations.

我的後續問題只是 RFID 市場中的其他參與者之一談到了這樣一個事實，即在某些情況下，由於大流行病，甚至很難進入某些地點進行安裝。

And I'm wondering how much of that you're seeing whether it's on the tag IC side of the business or more directly on the system side of the business.

我想知道您看到的其中有多少是在業務的標籤 IC 方面，還是更直接地在業務的系統方面。

You alluded to another -- it sounds like another potentially nice win with an American logistics customer.

你提到了另一個 - 這聽起來像是與美國物流客戶的又一次潛在勝利。

Is there any visibility as to how that -- it sounds like you don't have much visibility in how that's deployed?

是否有任何關於它如何的可見性——聽起來你對它的部署方式沒有太多可見性？

But to what extent is the pandemic impacting your ability to really see some of these programs carried out in the near term?

但是，這種流行病在多大程度上影響了您在短期內真正看到其中一些項目的能力？

Jim, it's Jeff again.

吉姆，又是傑夫。

And I would say that the inability for nonessential team members to return to the workplace does impact some systems projects in terms of timing and pace.

我要說的是，非必要團隊成員無法返回工作場所確實會在時間和進度方面影響某些系統項目。

There are other examples where larger organizations have been able to continue testing and preparation for deployments.

還有其他示例，其中大型組織能夠繼續測試和準備部署。

So I do think it's impacting the systems business differently from the endpoint IC business, whereas the endpoint IC business is more directly impacted by the enclosures in retail.

所以我確實認為它對系統業務的影響不同於端點 IC 業務，而端點 IC 業務更直接地受到零售外殼的影響。

So not so much a worker access to the workplace, but rather shoppers returning in person to in-store experiences.

因此，與其說是員工進入工作場所，不如說是購物者親自返回店內體驗。

That being said, a bright spot that Chris noted in his opening remarks, is that visionary leading retailers have leveraged their rain investments to support improved supply chain, inventory visibility to support omnichannel, shopping experiences, whether it's buy online pickup in store, buy online pickup that curb side or importantly to buy online and ship from closest available inventory to maximize customer satisfaction and to minimize shipping costs.

話雖如此，克里斯在開場白中指出的一個亮點是，有遠見的領先零售商已經利用他們的雨水投資來支持改進供應鏈、庫存可見性以支持全渠道、購物體驗，無論是在線購買店內提貨、在線購買在路邊取貨或重要的是在線購買並從最近的可用庫存發貨，以最大限度地提高客戶滿意度並最大限度地降低運輸成本。

So we're seeing -- I would say we're seeing amazing resilience and creativity around the globe to adapt to a very changing environment, but the inability for nonessential workers to return to work is impacting some systems projects, timing and pace.

所以我們看到——我想說我們在全球範圍內看到了驚人的適應力和創造力，以適應不斷變化的環境，但非必要員工無法重返工作崗位正在影響一些系統項目、時間和步伐。

(Operator Instructions) And our next question will come from Charlie Anderson with Colliers Security.

（操作員說明）我們的下一個問題將來自 Colliers Security 的查理安德森。

I wanted to start on supply chain logistics.

我想從供應鏈物流開始。

Sounds like a lot of interesting traction there.

聽起來那裡有很多有趣的牽引力。

So firstly, on the existing customer where you did get more orders, is that just the tail of the prior project?

因此，首先，對於您確實獲得更多訂單的現有客戶，這是否只是先前項目的尾巴？

Or would that be a movement into a new project with them?

還是與他們一起進入新項目？

And then on the new customer, it sounded like that has a lot of opportunity.

然後在新客戶身上，聽起來有很多機會。

I wonder if you could maybe just layer in any more context there in terms of how it looks relative to the first project you executed with a customer in that end market?

我想知道您是否可以根據它與您在該終端市場與客戶執行的第一個項目的外觀相比，在更多上下文中分層？

Then I've got a follow-up.

然後我有一個跟進。

Okay.

好的。

Charlie, thank you for joining us.

查理，謝謝你加入我們。

Appreciate it.

欣賞它。

To answer your first question, there are some existing opportunities in the existing deployments at that North American supply chain and logistics customer.

要回答您的第一個問題，該北美供應鍊和物流客戶的現有部署中存在一些現有機會。

And of course, that being a very large customer, there are also other opportunities that we foresee for the future.

當然，作為一個非常大的客戶，我們預見到未來還有其他機會。

So we continue to prioritize that customer, support them as best we can.

因此，我們繼續優先考慮該客戶，盡我們所能支持他們。

And as we said, we had a modest gateway sale in the second quarter, and we look forward to future opportunities.

正如我們所說，我們在第二季度進行了適度的網關銷售，我們期待未來的機會。

In terms of other supply chain and logistics providers, moving forward, as I said -- as we noted in the in the script, we -- there is another opportunity out there.

就其他供應鍊和物流供應商而言，正如我所說——正如我們在腳本中指出的那樣，我們——還有另一個機會。

We have a very significant size and scope, and we're excited about that opportunity.

我們的規模和範圍都非常大，我們對這個機會感到興奮。

But we really can't speak at this time to either the pace of their deployment or kind of really what it means for us, we'll be giving further updates on further calls as we learn and see more.

但我們現在真的不能說他們部署的速度或它對我們的真正意義，我們將在我們了解和看到更多信息時提供進一步的電話更新。

But I think it's important to note that it is another very large opportunity.

但我認為重要的是要注意這是另一個非常大的機會。

And it portends for at least for us, a future of transition and supply chain and logistics that we've been looking forward to and seeing for a long period of time.

至少對我們來說，它預示著我們長期以來一直期待和看到的過渡、供應鍊和物流的未來。

And in some sense, COVID-19 has accentuated or accelerated it.

在某種意義上，COVID-19 加劇或加速了它。

Of course, for a committee to come online quickly, meant that they already had to have some ongoing work and the pilots and a bunch of stuff already done.

當然，要讓一個委員會快速上線，意味著他們必須有一些正在進行的工作，並且已經完成了試點和一系列工作。

But we see significant opportunities in supply chain and logistics for the future and the fact that there's another large end customer coming online is super promising for us.

但我們看到了未來供應鍊和物流方面的重大機遇，而且還有另一個大型終端客戶上線這一事實對我們來說是非常有希望的。

Great.

偉大的。

And then for my follow-up, a couple of questions on inventory.

然後是我的後續行動，關於庫存的幾個問題。

So number one, I wonder if you'd be willing to quantify the degree of inventory that's out there at your Inlay partners.

所以第一，我想知道你是否願意量化你的 Inlay 合作夥伴的庫存程度。

How much needs to be worked through in the third quarter to get to that equilibrium in the fourth quarter?

第三季度需要完成多少工作才能在第四季度達到平衡？

And then secondly, you guys did build inventory yourselves in the quarter, and it sound like there was going to be some working capital investments in the third quarter.

其次，你們確實在本季度自己建立了庫存，聽起來第三季度會有一些營運資本投資。

So I'm wondering if that also means inventory goes up again.

所以我想知道這是否也意味著庫存再次上升。

And just trying to understand the dynamics there in terms of what's driving that.

只是想了解驅動它的動力。

To your first question on inventory, this is Jeff.

關於庫存的第一個問題，我是 Jeff。

I don't think I'll quantify the inventories in place in our Inlay channel partners.

我不認為我會量化我們嵌體渠道合作夥伴的庫存。

But importantly, what I would reiterate is that we anticipate exiting third quarter with healthy, meaning appropriate Inlay channel inventories.

但重要的是，我要重申的是，我們預計第三季度將以健康、意味著適當的 Inlay 渠道庫存結束。

So as our Inlay partners respond to evolving demand, they are aligning their inventories to that level of changing demand.

因此，當我們的 Inlay 合作夥伴響應不斷變化的需求時，他們會根據不斷變化的需求水平調整庫存。

And again, we expect to exit third quarter with healthy channel inventories.

同樣，我們預計第三季度將以健康的渠道庫存結束。

Charlie, this is Cary.

查理，這是卡里。

I'll take the Impinj inventory portion of your question.

我將接受您問題的 Impinj 庫存部分。

We have long cycle times in our inventory cycle.

我們的庫存週期中有很長的周期時間。

And wafer buys in the period can take as long as 5 months to turn into to finished goods.

而在此期間採購的晶圓可能需要長達5個月的時間才能變成成品。

So the quarter-over-quarter increase was really driven by the sudden demand drop more so than anything other than what we have done in terms of managing our story.

因此，環比增長實際上是由需求突然下降驅動的，而不是我們在管理我們的故事方面所做的事情。

Looking forward, we anticipate maintaining kind of our current level of 200-millimeter inventory.

展望未來，我們預計會維持目前 200 毫米的庫存水平。

We will build modestly on our production ramp side.

我們將在生產坡道方面適度建設。

So both on the M700 300-millimeter wafers and then also to a lesser degree on the R700.

因此，無論是在 M700 300 毫米晶圓上，還是在較小程度上在 R700 上。

But that is really to support the product launches.

但這確實是為了支持產品發布。

And our next question will come from Scott Searle with ROTH Capital.

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

I apologize if I missed this earlier, but in regard to your systems comments, did you provide any sequential directionality?

如果我之前錯過了這一點，我深表歉意，但關於您的系統評論，您是否提供了任何順序方向性？

I know you had some follow-on orders for gateways from your large North American customer.

我知道你們有一些來自北美大客戶的後續網關訂單。

It sounds like that won't be there in the third quarter.

聽起來第三季度不會出現這種情況。

Should we be assuming initially that we're starting from a down third quarter for systems.

我們是否應該最初假設我們從第三季度的系統下降開始。

And then to follow-up on the system side, could you talk a little bit about how that pipeline is shaping up in terms of the magnitude of the deals that are in the pipeline?

然後在系統方面跟進，你能談談管道是如何根據管道中交易的規模形成的嗎？

Are they getting larger per site deployments?

每個站點部署的規模是否越來越大？

Maybe talk a little bit about how the current COVID environment is maybe pulling in larger opportunities related to efficiency, visibility, zero-touch environments.

或許可以談談當前的 COVID 環境如何帶來與效率、可見性和零接觸環境相關的更大機會。

Yes.

是的。

Scott, this is Cary.

斯科特，這是卡里。

I'll take the first portion of that and then hand it over to Jeff.

我將負責其中的第一部分，然後將其交給 Jeff。

So from a systems' perspective in terms of guiding to the third quarter, we expect it to be another constrained quarter.

因此，從指導第三季度的系統角度來看，我們預計這將是另一個受限的季度。

CapEx budgets are going to be tight.

資本支出預算將會吃緊。

Stores are just now opening.

商店剛剛開業。

So projects are going to be delayed.

因此，項目將被推遲。

We did get, as Chris noted, an additional order from the first North American logistics company.

正如克里斯所說，我們確實從第一家北美物流公司那裡得到了一份額外的訂單。

There will be modest revenue from that.

將從中獲得適度的收入。

But I would say, overall, the systems business, we expect it to be constrained in the third quarter.

但我想說，總體而言，系統業務，我們預計它會在第三季度受到限制。

Jeff?

傑夫？

And in terms of the pipeline, as Chris noted in his remarks, we do feel encouraged by our pipeline of large systems opportunities, some of which, not all of which, have been positively influenced by COVID-19.

就管道而言，正如克里斯在他的評論中指出的那樣，我們確實對我們的大型系統機會管道感到鼓舞，其中一些（並非全部）受到了 COVID-19 的積極影響。

But I would say as a percentage of the overall pipeline, large opportunities has increased as an overall percentage.

但我要說的是，作為整體管道的百分比，大機會的整體百分比有所增加。

In part, COVID-19 has had a disproportionate impact on smaller projects, which often begin in terms of testing and validation of the value and initial deployment within the quarter.

在某種程度上，COVID-19 對較小的項目產生了不成比例的影響，這些項目通常從價值的測試和驗證以及本季度內的初始部署開始。

So again, as nonessential team members have been unable to return to the workplace in many geographies.

同樣，在許多地區，非必要的團隊成員無法返回工作場所。

Those smaller in-quarter opportunities have been disproportionately impacted in the short-term only though.

不過，那些較小的季度機會僅在短期內受到了不成比例的影響。

Large opportunities.

巨大的機會。

If I could quickly follow-up on the endpoint IC front.

如果我能快速跟進端點 IC 前端。

Could you recalibrate us just in terms of what that end market mix looks like or maybe retail, nonretail in the second quarter?

你能否根據第二季度的終端市場組合或零售、非零售來重新調整我們？

I know it's an unusual set of circumstances and the numbers are not normalized, but to just calibrate us on that front.

我知道這是一組不尋常的情況，數字沒有標準化，但只是為了在這方面校准我們。

And then maybe in terms of that pipeline that's building as well, particularly around the M700.

然後也許就正在建設的管道而言，特別是圍繞 M700。

What you're seeing on that front?

你在前面看到了什麼？

How the early expectation is for market share on that front?

對該領域市場份額的早期預期如何？

And lastly, gross margins, I think, were expected to be a little bit better as the M700 gets introduced.

最後，我認為，隨著 M700 的推出，毛利率預計會好一些。

Is that still the expectation as it starts to ramp into more meaningful production?

當它開始進入更有意義的生產時，這仍然是期望嗎？

Okay.

好的。

Thanks, Scott.

謝謝，斯科特。

I think we're going to tag team this one.

我想我們要把這個標記為團隊。

This is Chris starting, then I'll hand off to Jeff for the middle part of the question and then Cary for the latter part.

這是 Chris 的開始，然後我將把問題的中間部分交給 Jeff，然後是後半部分的 Cary。

We've spoken a good bit in past about the rough breakdown of endpoint IC volumes, and as being roughly 2/3 retail, and roughly 1/3 -- that's retail apparel, and roughly 1/3 is other opportunities.

我們過去曾多次談到端點 IC 數量的粗略細分，大約 2/3 是零售，大約 1/3 是零售服裝，大約 1/3 是其他機會。

As we said for second quarter, some of the other opportunities, the specialty opportunities were not impacted as much as some of the retail environment.

正如我們在第二季度所說，其他一些機會，專業機會受到的影響不如某些零售環境那麼大。

So that shift -- there would have been a transient shift in the second quarter, where the retail percentage would have dropped.

所以這種轉變——第二季度會有一個短暫的轉變，零售百分比會下降。

I don't think believe we have the data that we can quantify it for you right now.

我認為我們現在沒有可以為您量化的數據。

But just to expect retail to have seen a more significant decline than the other opportunities.

但只是期望零售業比其他機會出現更顯著的下降。

Our expectation is that on the other side of COVID-19, that will rebound back.

我們的期望是，在 COVID-19 的另一邊，它會反彈回來。

And we'll probably go back to the traditional 2/3, 1/3, at least until some of those supply chain and logistics opportunities start to ramp up.

我們可能會回到傳統的 2/3、1/3，至少在其中一些供應鍊和物流機會開始增加之前是這樣。

And then we might see, over time, as you would expect, the retail, even though it's still increasing, but to gradually decrease this an overall percentage of the total endpoint IC volumes.

然後我們可能會看到，隨著時間的推移，正如您所期望的那樣，零售，儘管它仍在增加，但逐漸減少了它在總端點 IC 數量中的總體百分比。

Jeff?

傑夫？

Yes.

是的。

In terms of market reception, I'd say partners and end customers are very excited by the performance and capabilities of the Impinj M700 endpoint IC series.

在市場接受度方面，我想說合作夥伴和最終客戶對 Impinj M700 端點 IC 系列的性能和功能感到非常興奮。

We are very appreciative of the work that we've done in close collaboration with our partners to prepare for production ramp at scale.

我們非常感謝我們與合作夥伴密切合作為大規模生產做準備所做的工作。

And we anticipate market adoption will grow in the quarters to come.

我們預計市場採用率將在未來幾個季度增長。

Scott, this is Cary.

斯科特，這是卡里。

In regard to the margin impact from the M700.

關於 M700 的利潤影響。

Once we get out of the production ramp, yes, we expect the M700 to be accretive to margin.

一旦我們走出生產坡道，是的，我們預計 M700 將增加利潤。

So I think kind of the end of this year to the beginning of next year when we'll start to see that benefit.

所以我認為今年年底到明年年初我們將開始看到這種好處。

So we started shipping the M700 in Q2, small volumes.

所以我們在第二季度開始小批量出貨 M700。

And it did have an impact on gross margin in Q2, but the margin was more impacted by a favorable product mix that offset both the production ramp impact of the M700 as well as leverage on lower revenue.

它確實對第二季度的毛利率產生了影響，但利潤率受到有利的產品組合的影響更大，這種產品組合抵消了 M700 的產量增長影響以及對較低收入的影響。

Our next question will come from Craig Hettenbach with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的 Craig Hettenbach。

Yes.

是的。

In understanding that the supply chain has been very fluid kind of around the pandemic.

據了解，供應鏈在大流行病期間一直非常不穩定。

But can you maybe just touch on some of the signals you're looking for in terms of that inventory depletion rate?

但是，您能否就庫存消耗率談談您正在尋找的一些信號？

And when you think you can kind of get back to a normal seasonal trend?

當您認為您可以恢復正常的季節性趨勢時？

This is Jeff.

這是傑夫。

I think the first thing I would say is that we expect that during the third quarter, our Inlay partners will continue to address demand with -- in part by burning down inventories that were accumulated in the first quarter.

我想我要說的第一件事是，我們預計在第三季度，我們的 Inlay 合作夥伴將繼續解決需求——部分是通過消耗第一季度積累的庫存。

We expect to exit third quarter with healthy and appropriate channel inventories at that time.

我們預計屆時將以健康和適當的渠道庫存退出第三季度。

And then I'll just add that going forward, we see -- obviously, with the pandemic, we see atypical demand in fourth quarter.

然後我要補充一點，我們看到 - 顯然，隨著大流行，我們看到第四季度的非典型需求。

It's not really clear.

這不是很清楚。

It's typically, fourth quarter is seasonally down, at least for endpoint IC.

通常，第四季度是季節性下降的，至少對於端點 IC 而言是這樣。

But it's not clear that that's going to be the case, given what's transpiring in the market right now.

但鑑於目前市場上正在發生的事情，目前還不清楚情況是否會如此。

And so it's really difficult for us to call what the seasonality is going to be as we exit the year on either the system side or the endpoint IC side.

因此，當我們在系統端或端點 IC 端退出這一年時，我們真的很難判斷季節性會是什麼。

Hence, the comment we made in the script that we don't expect this year to follow typical seasonality trends.

因此，我們在腳本中做出的評論是，我們預計今年不會遵循典型的季節性趨勢。

Got it.

知道了。

And then just as a follow-up, you mentioned just lower CapEx for some on the system side, which is understandable given the environment.

然後作為後續行動，你提到系統方面的一些資本支出較低，考慮到環境，這是可以理解的。

But just maybe, Chris, can you just speak to kind of design engagements?

但也許，克里斯，你能談談某種設計約定嗎？

And I know companies are trying to kind of work through all these different external events as well.

我知道公司也在努力應對所有這些不同的外部事件。

But just what the level of design engagement is?

但設計參與度究竟是多少？

And then hopefully, as the environment stabilizes a bit, what that would translate into in terms of the momentum in the business?

然後希望，隨著環境穩定一點，這將轉化為業務發展勢頭？

This is Jeff.

這是傑夫。

My first -- my quick response would be that there's been some impact of -- on systems projects of nonessential team members not being able to return to work.

我的第一個——我的快速反應是，對非必要團隊成員無法重返工作的系統項目產生了一些影響。

But I would say that the pace of innovation or planned deployment of RAIN, the intention has continued.

但我想說，創新或計劃部署 RAIN 的步伐，意圖一直在繼續。

But some of the testing has been impacted by COVID-19, but we expect that to be relatively short term.

但是一些測試受到了 COVID-19 的影響，但我們預計這是相對短期的。

I think both partners and Impinj have been able to remain in close engagement and communication with end customers who are planning RAIN-based deployments.

我認為合作夥伴和 Impinj 都能夠與計劃基於 RAIN 的部署的最終客戶保持密切聯繫和溝通。

And so progress is being made, but where specific on-site deployment, configuration and optimization is necessary prior to broad scale deployment, there's been some impact.

因此正在取得進展，但在大規模部署之前需要進行特定的現場部署、配置和優化，這會產生一些影響。

Did that answer your question, Craig?

這是否回答了你的問題，克雷格？

It did.

它做了。

I appreciate the color.

我很欣賞這種顏色。

And our next question will come from Jim Ricchiuti with Needham & Company.

我們的下一個問題將來自 Needham & Company 的 Jim Ricchiuti。

And I realize it's very difficult to forecast the top line.

而且我意識到很難預測收入。

But Cary, I'm wondering if you can give us some indication as to how we should think about operating expense.

但是卡里，我想知道你是否可以給我們一些關於我們應該如何考慮運營費用的指示。

I mean clearly, there aren't trade shows going on.

我的意思很明確，沒有貿易展覽會。

Travel is virtually nonexistent.

旅行幾乎不存在。

So how should we be thinking about your OpEx levels?

那麼我們應該如何考慮您的運營支出水平呢？

Yes.

是的。

Thanks for the question.

謝謝你的問題。

So with regard to trade shows and travel and entertainment, you're exactly right.

所以關於貿易展覽、旅遊和娛樂，你是完全正確的。

That started slowing at the end of the first quarter and ground to a halt in the second quarter.

這種情況在第一季度末開始放緩，並在第二季度停滯不前。

We expect that environment to continue throughout probably the rest of this year.

我們預計這種環境可能會持續到今年餘下的時間。

Though we'd like to see it improve.

儘管我們希望看到它有所改善。

We'd like to be out on the trade shows and meeting with customers face-to-face.

我們希望參加貿易展覽並與客戶面對面會面。

It's just not a reality right now.

現在這還不是現實。

Where we are investing is in R&D.

我們投資的地方是研發。

And we are adding resources and adding talent in this space to bring new products to market.

我們正在這個領域增加資源和人才，以將新產品推向市場。

That was one of our investment thesis at the beginning of the year, and it continues to be so.

那是我們年初的投資主題之一，現在仍然如此。

I will say we're not hiring as quick as we had budgeted.

我會說我們的招聘速度沒有我們預算的那麼快。

It's just a little challenging to hire in this environment right now.

現在在這種環境下招聘有點挑戰。

But we are still adding resources in our engineering organization.

但我們仍在為我們的工程組織增加資源。

And I guess I'm going to add to that just a little bit.

我想我要補充一點。

We're investing in R&D for the new products.

我們正在投資新產品的研發。

We're also investing in R&D for some of the end customer projects that we see out there.

我們還為我們在那裡看到的一些最終客戶項目投資研發。

So to the point about we're seeing pull from these large end customers.

因此，關於我們看到這些大型終端客戶的吸引力。

We're actually putting people and resources on these projects to accelerate our ability to meet the end customer requirements and deliver against them.

實際上，我們正在將人員和資源投入到這些項目中，以加快我們滿足最終客戶要求並交付給他們的能力。

Got it.

知道了。

And one other one, if I may.

還有另外一個，如果可以的話。

I just want to make sure I'm not misinterpreting your comments about the fourth quarter, potentially not exhibiting the normal seasonality that you've experienced.

我只是想確保我沒有誤解您對第四季度的評論，可能不會表現出您所經歷的正常季節性。

I mean it sounds like you're suggesting that the fourth quarter has the potential to be stronger than the third quarter.

我的意思是，聽起來您似乎在暗示第四季度有可能比第三季度表現更強勁。

Is that what you're saying?

你是這麼說的嗎？

Well, we're -- well, Jim, this is Chris.

好吧，我們是——好吧，吉姆，這是克里斯。

So we're obviously seeing some channel inventory burn down in the third quarter, which is -- we come through on the other side -- at the end of the third quarter.

因此，我們顯然在第三季度看到一些渠道庫存被燒毀，這是 - 我們在第三季度末通過另一邊。

So we're seeing an opportunity there.

所以我們在那裡看到了機會。

We're also seeing an uncertain environment in the retail space in general because we haven't been buying that much stuff over the past couple of quarters.

我們還看到零售領域總體環境不確定，因為在過去幾個季度我們沒有購買那麼多東西。

So -- and retailers are attending to figure out, I guess -- that's not quite the right word, but basically rationalize their inventory, the products they're bringing to market and then get the -- basically, the RAIN-enabled items into their stores.

所以——我猜，零售商正在努力弄清楚——這不是很正確的詞，但基本上是合理化他們的庫存，他們將推向市場的產品，然後——基本上，支持 RAIN 的產品進入他們的商店。

So typically, we see fourth quarter for the endpoint IC as being seasonally down because the tagging happens in the third quarter.

因此，通常情況下，我們認為端點 IC 的第四季度出現季節性下降，因為標記發生在第三季度。

I think what we're expecting this time around is we will see a difference, and the difference will be driven both by that channel inventory declining as well as some rationalization that is happening at the end customers, which is difficult for us to predict right now.

我認為這一次我們期待的是我們會看到差異，差異將由渠道庫存下降以及終端客戶發生的一些合理化驅動，這對我們來說很難預測正確現在。

And this will conclude our question-and-answer session.

這將結束我們的問答環節。

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

我想將會議轉回給 Chris Diorio，聽取任何閉幕詞。

Okay.

好的。

Thank you all very much for joining the call today.

非常感謝大家今天加入電話會議。

And I hope that you and your loved are and remain safe and well.

我希望您和您所愛的人平安無事。

Thank you again.

再次感謝你。

Bye-bye.

再見。

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 lines at this time.

此時您可以斷開線路。