Impinj Inc (PI) 2022 Q1 法說會逐字稿

Welcome to the Impinj First Quarter 2022 Earnings Conference Call and Webcast. (Operator Instructions)

歡迎參加 Impinj 2022 年第一季度收益電話會議和網絡直播。 （操作員說明）

Please note this event is being recorded. I would now like to turn the conference over to Mr. Andy Cobb, Vice President, Strategic Finance. Please go ahead.

請注意，正在記錄此事件。我現在想將會議轉交給戰略財務副總裁 Andy Cobb 先生。請繼續。

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

謝謝你，接線員。下午好，感謝大家加入我們討論 Impinj 2022 年第一季度的業績。在今天的電話會議上，Impinj 的聯合創始人兼首席執行官 Chris Diorio 將簡要概述我們的市場機會和業績。 Impinj 的首席財務官 Cary Baker 將隨後詳細審查我們 2022 年第一季度的財務業績和 2022 年第二季度的展望。然後，我們將打開問題電話。 Impinj 的 CRO Jeff Dossett 將加入我們的問答環節。

You can find management's prepared remarks plus trended financial data on the Investor Relations section of the company's website. We will make statements in this call about future expectations and financial performance based on our outlook as of today. Any such statements are forward-looking under the Private Securities Litigation Reform Act of 1995. While we believe we have a reasonable basis for making these forward-looking statements, our actual results could differ materially because any statements we make today are subject to risks and uncertainties. We describe these risks and uncertainties in the annual and quarterly reports we file with the SEC. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements except as required by applicable law. On today's call, all financial metrics except for revenue, or where we explicitly state otherwise are non-GAAP. Balance sheet and cash flow metrics are on a GAAP basis. Please refer to our earnings release for a reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics.

您可以在公司網站的投資者關係部分找到管理層準備好的評論以及趨勢財務數據。我們將在本次電話會議中根據我們今天的展望就未來預期和財務業績發表聲明。根據 1995 年的《私人證券訴訟改革法案》，任何此類陳述都是前瞻性的。雖然我們相信我們有合理的基礎做出這些前瞻性陳述，但我們的實際結果可能會大不相同，因為我們今天做出的任何陳述都存在風險和不確定性。我們在向 SEC 提交的年度和季度報告中描述了這些風險和不確定性。除非適用法律要求，否則我們不承擔並明確拒絕更新或更改我們的前瞻性陳述的任何義務。在今天的電話會議上，除收入或我們明確聲明的其他財務指標外，所有財務指標均為非公認會計原則。資產負債表和現金流量指標基於公認會計原則。請參閱我們的收益發布，了解非 GAAP 財務指標與最具可比性的 GAAP 指標的對賬。

Before turning to our results and outlook, note that we will participate in the Oppenheimer Seventh Annual Emerging Growth Conference on May 10 and Baird's Global Consumer, Technology & Services Conference in New York on June 7. We look forward to connecting with many of you at those events.

在談到我們的業績和展望之前，請注意，我們將於 5 月 10 日參加奧本海默第七屆年度新興增長會議和 6 月 7 日在紐約舉行的 Baird 全球消費者、技術和服務會議。我們期待與你們中的許多人聯繫那些事件。

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. Our first quarter results were strong. Revenue and profitability exceeded our guidance with revenue setting a new quarterly record. Bookings were also strong, further increasing our record backlog that now extends into 2023. Demand for our endpoint ICs, reader ICs, readers and gateways all showed extraordinary strength. At the same time, we remain supply-constrained, limiting both first quarter revenue and our ability to satisfy that extraordinary demand. As challenging as these constraints are today, our industry's broad-based secular adoption, strong long-term unit volume CAGR and sustained demand from enterprises need for process digitization positions Impinj to benefit significantly when upside wafers become available. First quarter endpoint IC revenue exceeded our expectations, setting a new quarterly record. For retailers, the adoption drivers continue to be in-store inventory visibility and omnichannel fulfillment and for both retailers and supply chain and logistics providers, supply chain visibility and process digitization. Retailers increased their apparel tagging, while also expanding into new categories like home goods, driving growth in our endpoint IC demand and backlog. For at least the next several quarters, we see retail expansion centered on apparel, home goods and general merchandise and supply chain expansion centered on parcel shipment traceability as key business drivers. Overall, we see multiyear growth tailwinds for our endpoint ICs.

謝謝你，安迪，謝謝大家加入電話會議。我們的第一季度業績強勁。收入和盈利能力超過了我們的預期，收入創下了新的季度記錄。預訂量也很強勁，進一步增加了我們現在延續到 2023 年的記錄積壓。對我們的端點 IC、讀卡器 IC、讀卡器和網關的需求都表現出非凡的實力。與此同時，我們仍然受到供應限制，限制了第一季度的收入和我們滿足這種非凡需求的能力。儘管這些限制在今天具有挑戰性，但我們行業廣泛的長期採用、強勁的長期單位體積複合年增長率和企業對工藝數字化的持續需求需要 Impinj 在上行晶圓可用時顯著受益。第一季度端點 IC 收入超出了我們的預期，創下了新的季度記錄。對於零售商來說，採用的驅動因素仍然是店內庫存可見性和全渠道履行，而對於零售商、供應鍊和物流提供商來說，供應鏈可見性和流程數字化。零售商增加了他們的服裝標籤，同時也擴展到了家居用品等新類別，推動了我們端點 IC 需求和積壓的增長。至少在接下來的幾個季度中，我們認為以服裝、家居用品和日用百貨為中心的零售擴張以及以包裹運輸可追溯性為中心的供應鏈擴張是關鍵的業務驅動力。總體而言，我們看到端點 IC 的多年增長順風。

First quarter endpoint IC unit volume demand exceeded shipments by more than 50%, like it has for the past 3 quarters. Yet again, we believe our inlay partners would have layered on additional bookings if we had more wafers. Although we did secure modest upside wafers from our foundry partner, allowing us to commit second and third quarter shipment volumes that equal or exceed first quarter, our supply is still far short of demand. Until our foundry partner can deliver significant upside wafers in the process nodes we use, we will continue focusing on maturing our post-processing capacity to be ready to quickly turn those wafers when they do become available. First quarter systems revenue also exceeded our expectations. Reader revenue is a bright spot, with supply chain and logistics demand driving record shipments.

與過去三個季度一樣，第一季度端點 IC 單位數量需求超過出貨量 50% 以上。再一次，我們相信如果我們有更多的晶圓，我們的嵌體合作夥伴會增加額外的預訂。儘管我們確實從我們的代工合作夥伴那裡獲得了適度的上行晶圓，使我們能夠承諾第二和第三季度的出貨量等於或超過第一季度，但我們的供應仍然遠遠供不應求。在我們的代工合作夥伴能夠在我們使用的工藝節點中提供顯著的優勢晶圓之前，我們將繼續專注於使我們的後處理能力成熟，以便在這些晶圓可用時快速轉換這些晶圓。第一季度系統收入也超出了我們的預期。閱讀器收入是一個亮點，供應鍊和物流需求推動了創紀錄的出貨量。

Reader IC revenue fell short of expectations due to a COVID outbreak at the post-processing supplier for our prior generation Indy ICs and testing delays for our new E-family ICs. Total first quarter systems demand exceeded our supply. Like for the past 2 quarters, we entered second quarter with significant reader and reader IC backlog and strong demand. Looking to second quarter, we anticipate component shortfalls continuing to limit our reader supply. We also anticipate strong reader IC volumes and revenue growth as shipments begin catching up to demand. Looking further out, we expect overall system supply to mostly catch up to demand by year-end. On the project front, the second large North American supply chain and logistics customer advanced their reader deployment and contributed their largest quarterly revenue to date. Looking into 2023, we expect this customer to drive a large endpoint IC opportunity. We also secured an order from the visionary European retailer to deploy our RAIN-based loss prevention product broadly, starting second quarter 2022. This deployment will cover far more stores than last year's deployment, and we expect roughly 3x as much revenue from it recognized over several quarters.

由於我們上一代 Indy IC 的後處理供應商爆發新冠肺炎疫情以及我們新的 E 系列 IC 的測試延遲，閱讀器 IC 收入低於預期。第一季度系統總需求超過了我們的供應。與過去兩個季度一樣，我們進入第二季度時，閱讀器和閱讀器 IC 積壓量很大，需求強勁。展望第二季度，我們預計組件短缺將繼續限制我們的閱讀器供應。我們還預計隨著出貨量開始趕上需求，閱讀器 IC 的銷量和收入將增長強勁。展望未來，我們預計整體系統供應將在年底前基本滿足需求。在項目方面，北美第二大供應鍊和物流客戶推進了他們的閱讀器部署，並貢獻了迄今為止最大的季度收入。展望 2023 年，我們預計該客戶將推動大型端點 IC 機會。我們還獲得了這家富有遠見的歐洲零售商的訂單，從 2022 年第二季度開始廣泛部署我們的基於 RAIN 的防損產品。此次部署將覆蓋比去年部署更多的商店，我們預計其確認的收入約為 3 倍幾個季度。

We began staging key components for this deployment in the first quarter. This loss prevention win is the result of focused Impinj engineering and close teamwork with our go-to-market partners. It also represents a defining opportunity for our platform, moving us 1 step closer to unlocking the RAIN self-checkout opportunity that retailers identify as the most important after inventory visibility, and is key to their vision of the store of the future. We continue focusing on vending solutions to hard but compelling end-user problems, driving new platform-based growth vectors for the years to come.

我們在第一季度開始為該部署準備關鍵組件。這場防損勝利是 Impinj 工程的專注以及與我們的上市合作夥伴密切合作的結果。它也代表了我們平台的一個決定性機會，使我們離解鎖 RAIN 自助結賬機會更近了一步，零售商認為這是繼庫存可見性之後最重要的機會，也是他們對未來商店願景的關鍵。我們將繼續專注於為棘手但引人注目的最終用戶問題提供解決方案，在未來幾年推動基於平台的新增長向量。

Looking to 2023, we expect secular trends to continue driving endpoint IC unit volume growth in a market that is still less than 1% penetrated. That expectation is built on the use case expansion we see at existing enterprise end users, healthy growth at new enterprises looking to deploy and new verticals ramping. RAIN delivers visibility and insights that no other technology can directly match. On the organizational side, Christina Balam joined our executive team as Vice President of Human Resources. Christina was most recently at NetMotion Software and brings deep HR strength and experience to Impinj. I'm delighted to partner with Christina in enriching our team and culture. Welcome, Christina. We also formalized Impinj's sustainability commitments in partnership with our suppliers and customers, driving multiple initiatives focused on how our products can improve item recyclability. Impinj takes its responsibility to leave the world a better place for our children and grandchildren seriously, and we are investing to deliver on our sustainability commitments.

展望 2023 年，我們預計長期趨勢將繼續推動端點 IC 單位數量的增長，而該市場的滲透率仍低於 1%。這種期望建立在我們在現有企業最終用戶中看到的用例擴展、尋求部署的新企業的健康增長以及新的垂直領域的增長之上。 RAIN 提供其他技術無法直接匹敵的可見性和洞察力。在組織方面，Christina Balam 作為人力資源副總裁加入了我們的執行團隊。 Christina 最近在 NetMotion Software 工作，為 Impinj 帶來了深厚的人力資源實力和經驗。我很高興與 Christina 合作豐富我們的團隊和文化。歡迎，克里斯蒂娜。我們還與供應商和客戶合作，正式確定 Impinj 的可持續發展承諾，推動多項計劃，重點關注我們的產品如何提高物品的可回收性。 Impinj 認真承擔責任，為我們的子孫後代留下一個更美好的世界，我們正在投資以兌現我們的可持續發展承諾。

Before I close, I want to say that all of us at Impinj are shocked and saddened by the Russian government's senseless war in Ukraine. Impinj's employees, matched by the company, donated $200,000 or roughly $600 per employee to humanitarian aid for the Ukrainian people. We also suspended all business in and with Russia and Belarus and expect our partners to comply with all sanctions and restrictions related to this unprovoked and brutal aggression. We pray for peace and for human rights and dignity, and for Russia to halt this horror they have created.

在結束之前，我想說的是，我們在 Impinj 的所有人都對俄羅斯政府在烏克蘭發動的毫無意義的戰爭感到震驚和悲傷。 Impinj 的員工與公司相匹配，為烏克蘭人民的人道主義援助捐贈了 200,000 美元或每位員工大約 600 美元。我們還暫停了與俄羅斯和白俄羅斯的所有業務，並希望我們的合作夥伴遵守與這種無端和野蠻侵略有關的所有製裁和限制。我們祈求和平、人權和尊嚴，祈求俄羅斯停止他們製造的這種恐怖。

In closing, I'd like to thank every member of the Impinj team for their incredible effort this quarter. We delivered record revenue and solid profitability, while investing in our team, company and platform. As we continue working side by side with our ecosystem partners to navigate the ongoing supply chain challenges, I remain confident in our market position and energized by our growing demand.

最後，我要感謝 Impinj 團隊的每一位成員在本季度所做的令人難以置信的努力。我們實現了創紀錄的收入和穩健的盈利能力，同時投資於我們的團隊、公司和平台。隨著我們繼續與我們的生態系統合作夥伴並肩工作以應對持續的供應鏈挑戰，我對我們的市場地位仍然充滿信心，並因我們不斷增長的需求而充滿活力。

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

我現在將把電話轉給 Cary，以獲取我們詳細的財務審查和第二季度展望。卡里？

Thank you, Chris, and good afternoon, everyone. On today's call, I will review our first quarter financial results and second quarter financial outlook. First quarter revenue was $53.1 million, up 1% sequentially compared with $52.6 million in fourth quarter 2021 and up 17% year-over-year from $45.2 million in the first quarter of 2021. First quarter endpoint IC revenue was $38.8 million, up 1% sequentially compared with $38.4 million in fourth quarter 2021 and up 2% year-over-year from $38.1 million in first quarter 2021. Endpoint IC revenue exceeded our expectations, driven by higher volumes and a slightly more favorable mix of specialty and industrial endpoint ICs than we had anticipated. Looking forward, we expect a slight sequential increase in second quarter 2022 endpoint IC revenue.

謝謝你，克里斯，大家下午好。在今天的電話會議上，我將回顧我們的第一季度財務業績和第二季度財務展望。第一季度收入為 5310 萬美元，與 2021 年第四季度的 5260 萬美元相比環比增長 1%，比 2021 年第一季度的 4520 萬美元同比增長 17%。第一季度端點 IC 收入為 3880 萬美元，增長 1%與 2021 年第四季度的 3840 萬美元相比，環比增長 2%，較 2021 年第一季度的 3810 萬美元增長 2%。端點 IC 收入超出了我們的預期，這主要是由於銷量增加以及專業和工業端點 IC 的組合略優於我們已經預料到了。展望未來，我們預計 2022 年第二季度端點 IC 收入將環比小幅增長。

First quarter systems revenue was $14.3 million, up 1% sequentially compared with $14.2 million in fourth quarter 2021 and up 100% year-over-year from $7.2 million in first quarter 2021. Systems revenue exceeded our expectations, driven by stronger reader revenue than we had anticipated. On a sequential basis, reader revenue increased while gateway and reader IC revenue declined. On a year-over-year basis, reader IC, reader and gateway revenue all increased. We expect a modest sequential increase in second quarter 2022 systems revenue driven by reader IC revenue and initial gateway shipments into the new loss prevention deployment from a visionary European retailer. First quarter gross margin was 57% compared with 58.2% in fourth quarter 2021 and 50.3% in first quarter 2021. The sequential decrease was driven by a smaller contribution from both sales of fully reserved inventory and underlying product margins, partially offset by lower indirect costs.

第一季度系統收入為 1430 萬美元，與 2021 年第四季度的 1420 萬美元相比，環比增長 1%，與 2021 年第一季度的 720 萬美元相比，同比增長 100%。系統收入超出了我們的預期，這得益於閱讀器收入高於我們已經預料到了。從環比來看，閱讀器收入增長，而網關和閱讀器 IC 收入下降。與去年同期相比，讀卡器 IC、讀卡器和網關收入均有所增長。我們預計 2022 年第二季度系統收入將出現溫和的連續增長，這主要得益於閱讀器 IC 收入和一家富有遠見的歐洲零售商向新的防損部署中的初始網關出貨量。第一季度毛利率為 57%，而 2021 年第四季度和 2021 年第一季度分別為 58.2% 和 50.3%。環比下降是由於完全保留庫存的銷售和基礎產品利潤率的貢獻較小，部分被較低的間接成本所抵消.

The year-over-year increase was driven by underlying product margins and product mix. In addition to the margin-rich specialty industrial endpoint ICs, a higher mix of Impinj M700 also provided a first quarter gross margin tailwind. The first quarter benefit from selling fully reserved inventory was immaterial. Total first quarter operating expense was $26.8 million compared with $25.3 million in the fourth quarter of 2021 and $21.9 million in first quarter 2021. Research and development expense was $12.8 million. Sales and marketing expense was $6.4 million. General and administrative expense was $7.6 million. We expect second quarter operating expense to increase sequentially.

同比增長是由基礎產品利潤率和產品組合推動的。除了利潤豐厚的專業工業端點 IC 之外，Impinj M700 的更高組合也為第一季度的毛利率帶來了順風。銷售完全保留庫存的第一季度收益並不重要。第一季度總運營費用為 2680 萬美元，而 2021 年第四季度為 2530 萬美元，2021 年第一季度為 2190 萬美元。研發費用為 1280 萬美元。銷售和營銷費用為 640 萬美元。一般和行政費用為 760 萬美元。我們預計第二季度運營費用將連續增加。

First quarter adjusted EBITDA was a profit of $3.5 million compared with a cost of $5.3 million in fourth quarter 2021, and a profit of $900,000 in the first quarter 2021. First quarter GAAP net loss was $10.5 million. First quarter non-GAAP net profit was $2.4 million or $0.09 per share, using a weighted average diluted share count of 27 million shares. Turning to the balance sheet. We ended the first quarter with cash, cash equivalents and investments of $193.4 million compared with $207.6 million in fourth quarter 2021 and $119.3 million in first quarter 2021. The sequential cash decline was due primarily to increased WIP and raw materials inventory and other working capital changes, the latter including some inventory prepayments to improve our chance of securing upside supply. Inventory totaled $31.6 million, up $9.6 million from the prior quarter, with roughly half of the increase in endpoint ICs and the other half in systems. First quarter net cash used in operating activities was $14.8 million, driven by net cash changes in operating assets and liabilities.

第一季度調整後的 EBITDA 為利潤 350 萬美元，而 2021 年第四季度的成本為 530 萬美元，2021 年第一季度的利潤為 900,000 美元。第一季度 GAAP 淨虧損為 1050 萬美元。第一季度非 GAAP 淨利潤為 240 萬美元或每股 0.09 美元，使用加權平均稀釋股數為 2700 萬股。轉向資產負債表。我們在第一季度結束時的現金、現金等價物和投資為 1.934 億美元，而 2021 年第四季度為 2.076 億美元，2021 年第一季度為 1.193 億美元。現金連續下降主要是由於在製品和原材料庫存增加以及其他營運資金變化，後者包括一些庫存預付款，以提高我們確保上行供應的機會。庫存總額為 3160 萬美元，比上一季度增加 960 萬美元，其中大約一半是端點 IC，另一半是系統。第一季度在經營活動中使用的淨現金為 1480 萬美元，主要受經營資產和負債的淨現金變化的推動。

Property and equipment purchases totaled $3.1 million, free cash flow was negative $17.9 million. Before I turn to our second quarter guidance, I want to highlight a few items unique to the first quarter and also give an update on a few of our strategic initiatives. First, a stronger-than-expected mix of margin-rich specialty industrial endpoint ICs drove first quarter gross margin strength. Given the nuance in our recent gross margins, I want to give a more specific gross margin outlook today that I plan to give going forward. Our second quarter 2022 guidance assumes a non-GAAP gross margin range between 53% and 54%. We expect third quarter 2022 gross margins in a similar range. Looking further out, we anticipate future 300-millimeter endpoint IC innovations to create opportunities for additional gross margin accretion. Second, first quarter inventory increased sequentially across both endpoint ICs and systems, driven primarily by a $3 million increase in raw material and a $4.8 million increase in WIM.

物業和設備採購總額為 310 萬美元，自由現金流為負 1790 萬美元。在我轉向我們的第二季度指導之前，我想強調第一季度獨有的一些項目，並更新我們的一些戰略舉措。首先，利潤豐厚的特種工業端點 IC 組合強於預期，推動了第一季度的毛利率增長。鑑於我們最近毛利率的細微差別，我想在今天給出一個更具體的毛利率前景，我計劃在未來給出。我們的 2022 年第二季度指引假設非公認會計準則毛利率在 53% 至 54% 之間。我們預計 2022 年第三季度的毛利率在類似範圍內。展望未來，我們預計未來的 300 毫米端點 IC 創新將為額外的毛利率增加創造機會。其次，第一季度端點 IC 和系統的庫存連續增加，這主要是由於原材料增加了 300 萬美元和 WIM 增加了 480 萬美元。

Endpoint IC inventory increased for 2 reasons. First, wafer production timing drove an increase in raw materials. However, that timing will not change the number of endpoint ICs we have to sell in second or third quarters, which, as Chris noted, should equal or exceed first quarter shipments. Second, higher-cost wafers are now flowing through our inventory. Systems inventory increased primarily due to us sourcing key reader gateway components ahead of the new loss prevention deployment for the visionary European retailer and to a lesser extent, delivery timing. Third, we expect our second quarter operating expense to increase sequentially, driven by annual merit and cost of living salary increases, a full quarter of accrual for our cash bonus, the timing of non-wage expenses and us continuing to invest in our platform.

端點 IC 庫存增加有兩個原因。首先，晶圓生產時機推動了原材料的增加。然而，這個時機不會改變我們必須在第二或第三季度銷售的端點 IC 的數量，正如 Chris 所說，這應該等於或超過第一季度的出貨量。其次，更高成本的晶圓現在流經我們的庫存。系統庫存增加的主要原因是我們在為有遠見的歐洲零售商進行新的防損部署之前採購了關鍵的讀卡器網關組件，並且在較小程度上是交貨時間。第三，我們預計我們的第二季度運營費用將連續增加，這主要是由於年度績效和生活成本工資的增加、我們現金獎金的一整個季度的應計、非工資費用的時間安排以及我們繼續投資於我們的平台。

Finally, we expect second and third quarter revenue to remain supply constrained. Partner inventories -- inventory levels remain very low, especially for endpoint ICs with our wafer deliveries pacing our partners' production cadence. From today's vantage point, demand will continue to outstrip supply for at least the remainder of 2022.

最後，我們預計第二和第三季度的收入將繼續受到供應限制。合作夥伴庫存——庫存水平仍然非常低，特別是對於我們的晶圓交付與合作夥伴的生產節奏同步的端點 IC。從今天的角度來看，至少在 2022 年剩餘時間內，需求將繼續超過供應。

Turning to our outlook. We expect second quarter revenue to be between $54 million and $56 million, a 16% year-over-year increase at the midpoint of the range compared with $47.3 million in second quarter 2021. We expect an adjusted EBITDA profit between $100,000 and $1.6 million. On the bottom line, we expect non-GAAP net income between a loss of $1.1 million and a profit of $400,000, reflecting non-GAAP earnings per share between a loss of $0.05 and a profit of $0.01 on a weighted average diluted share count between 25.3 million and 27.2 million shares.

轉向我們的前景。我們預計第二季度收入將在 5400 萬美元至 5600 萬美元之間，與 2021 年第二季度的 4730 萬美元相比，在該範圍的中點處同比增長 16%。我們預計調整後的 EBITDA 利潤將在 10 萬美元至 160 萬美元之間。歸根結底，我們預計非 GAAP 淨收入在 110 萬美元和 400,000 美元之間，反映了非 GAAP 每股收益在 0.05 美元和 0.01 美元之間，加權平均稀釋後股票數量在 25.3 美元之間100 萬股和 2720 萬股。

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

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

(Operator Instructions) Our first question comes from Toshi Hari with Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的 Toshi Hari。

And congrats on a very strong set of results. Chris, I wanted -- I had 2 questions. First of all, on kind of the supply-demand environment, particularly in your endpoint IC business. I think you're supply constrained in your systems business as well. But if I recall your commentary correctly, I think you noted that by the end of the year, you'd expect supply to somewhat catch up to demand. I was hoping to get some color on the endpoint IC side. I realize it's hard to predict, but how significant is the delta between supply/demand today? And more importantly, when would you expect your foundry partner to be in a position to address some what you need?

並祝賀一系列非常強大的結果。克里斯，我想 -- 我有 2 個問題。首先，關於供需環境，特別是在您的端點 IC 業務中。我認為您的系統業務也受到供應限制。但如果我沒記錯你的評論，我想你已經註意到，到今年年底，你預計供應會在一定程度上趕上需求。我希望在端點 IC 方面獲得一些顏色。我意識到這很難預測，但今天供需之間的差異有多大？更重要的是，您希望您的代工合作夥伴何時能夠滿足您的一些需求？

Okay. Thank you, Toshiya. Thank you for your kind words. As I noted in our prepared remarks, demand exceeds our ability to supply more than 50%, and we're basically 4 quarters in that domain, this being the fourth quarter. We're doing everything we can to increase supply. And we know that our foundry partner is prioritizing for upside wafers. It just isn't enough. And we said that in our prepared remarks that we can deliver consistent wafer volumes in the second and third quarter. These situations, the supply-demand imbalances always ease as we know because the semiconductor industry goes through these cycles occasionally. I've never been in one as severe as this, but they go through these cycles. It's just very difficult for me to speculate when. So I prefer not to speculate out to fourth quarter or beyond, just to say that we're working very closely with our foundry partner to get upside wafer supply, and we are preparing ourselves as best we can so that when those upside wafers become available, our post processing is primed and ready to be able to handle them and to get ICs into our partners' hands as quickly as possible.

好的。謝謝你，東宮。感謝您的客氣話。正如我在準備好的評論中指出的那樣，需求超過了我們供應超過 50% 的能力，我們基本上在該領域有 4 個季度，這是第四季度。我們正在盡一切努力增加供應。而且我們知道我們的代工合作夥伴正在優先考慮上行晶圓。這還不夠。我們在準備好的評論中說，我們可以在第二季度和第三季度提供一致的晶圓量。正如我們所知，在這些情況下，供需失衡總是會緩解，因為半導體行業偶爾會經歷這些週期。我從來沒有像這樣嚴重過，但他們經歷了這些週期。我很難推測什麼時候。所以我不想推測到第四季度或以後，只是說我們正在與我們的代工合作夥伴密切合作以獲得向上的晶圓供應，我們正在盡我們所能做好準備，以便當這些向上的晶圓可用時，我們的後期處理已做好準備，可以處理它們並儘快將 IC 送到我們的合作夥伴手中。

Got it. And then a quick follow-up on gross margins, maybe for Cary. So the decline -- well, first of all, thank you for providing guidance on gross margin, super helpful. So the sequential decline that you're guiding to in Q2, I guess, down from 57% in Q1 to 53.5% at the midpoint for Q2. Is that primarily specialty and industrial SKUs normalizing lower? Or did I miss something else that could potentially drive gross margins down on a sequential basis? And then, I guess, part 2 on gross margins, you mentioned medium to long term, you'd expect opportunity associated with 300-millimeter becoming a bigger percentage of your business. Can you help us quantify what that upside could look like relative to the 53.5% guide for Q2 and Q3?

知道了。然後是對毛利率的快速跟進，也許是對 Cary 來說。所以下降 - 首先，感謝您提供毛利率指導，非常有幫助。所以你在第二季度引導的連續下降，我猜，從第一季度的 57% 下降到第二季度中點的 53.5%。主要是專業和工業 SKU 是否正常化較低？還是我錯過了可能導致毛利率連續下降的其他因素？然後，我想，關於毛利率的第 2 部分，您提到了中長期，您預計與 300 毫米相關的機會將成為您業務的更大比例。您能否幫助我們量化相對於 Q2 和 Q3 的 53.5% 指導值的上漲空間？

Yes. Thanks, Toshiya. I appreciate the question. Yes, as you said, gross margin for Q2, we're expecting in a range of 53% to 54%. That is a step down from where we've been in recent quarters, which benefited from a strong mix of specialty and industrial SKUs. The other item that's impacting Q2 is we're really starting to see higher-cost wafers flow through our inventory and through our COGS right now. So we're starting to get close to where we expect to normalize based on our current supply mix. Two years ago, when we started talking about the M700 and the benefits that would have to gross margin, we were in roughly a 50% gross margin range. So these first 2 chips on the M700 family is really what's provided us with this 300-or-so basis point improvement from what was our previous gross margin run rate. We're not done yet innovating on the M700 platform. And we expect to launch more chips that will drive more opportunity for us to drive gross margin accretion in the future.

是的。謝謝，東也。我很欣賞這個問題。是的，正如你所說，第二季度的毛利率，我們預計在 53% 到 54% 之間。這與我們最近幾個季度的情況相比有所下降，這得益於專業和工業 SKU 的強大組合。影響第二季度的另一個因素是，我們現在真的開始看到成本更高的晶圓流經我們的庫存和 COGS。因此，根據我們目前的供應組合，我們開始接近我們預期的正常化水平。兩年前，當我們開始談論 M700 和毛利率帶來的好處時，我們的毛利率大約在 50% 左右。因此，M700 系列的前 2 款芯片確實為我們提供了比我們之前的毛利率運行率提高 300 個左右的基點。我們尚未完成 M700 平台的創新。我們預計將推出更多芯片，為我們在未來推動毛利率增長提供更多機會。

The next question comes from Scott Searle with ROTH Capital.

下一個問題來自 ROTH Capital 的 Scott Searle。

It's like a positive groundhog day. good results, but constrained by the wafer environment. Maybe just quickly, to make sure you get a clarification. I want to make sure I heard the numbers correctly, again, that 50% plus upside was limited again on the endpoint IC front. And from a gross margin standpoint, Cary, I wanted to make sure I understood this is the level that you're expecting to normalize as we go out further on to the time horizon as well. And I think you indicated on the wafer front, still wafer constrained in the third quarter. I'm wondering if that -- as you given your current visibility, if that entails a step-up in the third quarter from the second quarter?

這就像一個積極的土撥鼠日。效果不錯，但受制於晶圓環境。也許很快，以確保您得到澄清。我想再次確保我聽到的數字是正確的，50% 以上的上行空間在端點 IC 前端再次受到限制。從毛利率的角度來看，卡里，我想確保我理解這是你期望隨著我們進一步進入時間範圍而正常化的水平。而且我認為您在晶圓方面表示，第三季度仍然受到晶圓限制。我想知道這是否 - 正如您目前的知名度一樣，這是否需要在第三季度從第二季度開始？

So I'll say a few words just about the wafer demand. So as we said in our prepared remarks, the demand exceeds supply by more than 50%. And our partners would have layered on additional bookings if we had more supply. And I used the word extraordinarily strong in my intro because the demand is very strong today. We see enterprises deploying in multiple verticals, expanding their deployments, new enterprises coming online. The demand is there, supply is short. Cary, would you like to take the second part?

所以我就晶圓需求說幾句話。因此，正如我們在準備好的評論中所說，需求超過供應超過 50%。如果我們有更多的供應，我們的合作夥伴會增加額外的預訂。我在介紹中使用了“非常強大”這個詞，因為今天的需求非常強勁。我們看到企業在多個垂直領域進行部署、擴展部署、新企業上線。需求在那裡，供應短缺。卡里，你想參加第二部分嗎？

Yes. So Scott, thanks for the question. As we noted, gross margin in Q2 will be in the 53% to 54% range. Based on our current supply mix, I anticipate a somewhat similar range in Q3, and really near-term movement from that dictated by -- first by supply, and then second, by mix of revenue between endpoint ICs and systems. So I think we're getting to a normalized rate right now. There will always be movement in our gross margins. And then looking forward, think of the M700 platform as it relates to gross margin as a multiyear growth path. What we're seeing right now is the first step of the first 2 chips on the M700 platform. Again, we will -- we're continuing to work on it. This is part of the place we're putting our engineering dollars. So as we have more innovation to announce on that, we will do so, and then I'll be able to talk more about our ambitions for gross margin accretion (inaudible).

是的。所以斯科特，謝謝你的問題。正如我們所指出的，第二季度的毛利率將在 53% 至 54% 的範圍內。根據我們目前的供應組合，我預計第三季度的範圍會有所相似，並且實際上是由以下因素決定的近期走勢——首先是供應，其次是端點 IC 和系統之間的收入組合。所以我認為我們現在正在達到正常化率。我們的毛利率總會有變動。然後展望未來，將 M700 平台視為與毛利率相關的多年增長路徑。我們現在看到的是 M700 平台上前 2 個芯片的第一步。同樣，我們將 - 我們將繼續努力。這是我們投入工程資金的一部分。因此，隨著我們有更多創新要宣布，我們將這樣做，然後我將能夠更多地談論我們對毛利率增長的雄心（聽不清）。

Perfect. Very helpful. And if I could, just to follow up on your post-processing comments. You guys have been investing in the back end, but you made some comments in terms of outbreaks. I'm wondering if you could provide a little bit more color or detail your comfort level in terms of where you are from a post-processing standpoint, both as we look into the near-term second, third quarter and kind of how you're positioned as demand and supply equivalent come back in the balance.

完美的。非常有幫助。如果可以的話，只是為了跟進您的後期處理評論。你們一直在對後端進行投資，但是你們在爆發方面發表了一些評論。我想知道您是否可以從後期處理的角度提供更多的顏色或詳細說明您的舒適度，無論是在我們研究近期的第二、第三季度以及您的情況時重新定位為需求和供應等價物重新平衡。

So yes, I need to differentiate in the reader ICs and our endpoint ICs. There was a post-processing outbreak at the testing house -- I'm sorry, there was a post-processing outbreak at the supplier for our prior generation in the reader ICs. And so we were -- that COVID outbreak limited the number of (inaudible) reader ICs we were able to get in the quarter. If I turn to the endpoint ICs, we continue to build our post-processing capacit,y, I've said on prior calls, straightening and widening the pipes, so that when upside wafers come and (inaudible) when you're in these steep cycles, they come rapidly on the other side. When those wafers come, we're ready to catch them and turn them quickly. Did I answer your question okay?

所以是的，我需要區分閱讀器 IC 和我們的端點 IC。測試室發生了後處理爆發——對不起，我們上一代閱讀器 IC 的供應商發生了後處理爆發。所以我們 - COVID 爆發限制了我們在本季度能夠獲得的（聽不清）閱讀器 IC 的數量。如果我轉向端點 IC，我們將繼續建立我們的後處理能力，y，我在之前的電話中說過，拉直和加寬管道，這樣當你在上面的晶圓來時和（聽不清）這些陡峭的周期，他們迅速來到另一邊。當這些晶圓來臨時，我們已經準備好抓住它們并快速轉動它們。我回答你的問題好嗎？

Yes, you did. Perfect.

是的，你做到了。完美的。

The next question comes from Mike Walkley with Canaccord Genuity.

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

It's Dan on for Mike. So congrats on the strong Q1 execution despite the supply chain challenges. Just wondering if you could provide us with some color on your large projects pipeline. I know you mentioned you had a record backlog, but if you just think about how -- if you could just let us know how to think about this or maybe even provide some extra details, that would be great.

這是邁克的丹。因此，儘管面臨供應鏈挑戰，但還是祝賀第一季度的強勁執行。只是想知道您是否可以為我們的大型項目管道提供一些顏色。我知道你提到你有一個記錄積壓，但如果你只是想想如何——如果你可以讓我們知道如何考慮這個問題，或者甚至提供一些額外的細節，那就太好了。

This is Jeff. Our pipeline -- opportunity pipeline is and remains strong. Within our pipeline, large potential opportunities are increasing as a proportion of the total pipeline. We're very encouraged by the interest of visionary and customers in retail and supply chain and logistics, in particular, as they look to optimize their operations to improve supply chain visibility and other process digitization that lays the foundation for optimizing business efficiencies and enabling them to better serve their customers. So we're seeing growth broadly, geographically and across key market segments and the use cases or needs of those customers in those segments.

這是傑夫。我們的管道——機會管道一直很強勁。在我們的管道中，巨大的潛在機會佔總管道的比例正在增加。我們對有遠見的客戶和客戶對零售、供應鍊和物流的興趣感到非常鼓舞，特別是因為他們希望優化其運營以提高供應鏈可見性和其他流程數字化，從而為優化業務效率和實現業務效率奠定基礎更好地為他們的客戶服務。因此，我們看到了廣泛的增長，地理和關鍵細分市場以及這些細分市場中這些客戶的用例或需求。

And I guess I want to add, this is Chris. As you think about the Visionary European retailer rolling out our RAIN-based loss prevention product broadly, I believe that, that deployment is a bellwether for opportunities to come because as we can deploy loss prevention, the real reason to do loss prevention is so if you do self-checkout. Retailers are asking for self-checkout for a long period of time to improvement streamlined retail stores. And that self-checkout along with better inventory visibility, as I said in the prepared remarks, it's really the vision for stores of the future. So there are huge opportunities in retail starting with retail apparel because that's where the industry took out first. But expanding to all kinds of other retail items, home goods (inaudible) general merchandise. So we're in the early days of a transition -- not a transition, an expansion from handheld-driven inventory counting primarily in retail to fixed reading opportunities in retail, supply chain and logistics broadly, aviation and other opportunities. And we believe that, that expansion into those (inaudible) opportunities positions Impinj very well as a consequence of our platform and the investments we've made in our platform.

我想我想補充一下，這是克里斯。當您想到這家有遠見的歐洲零售商廣泛推出我們基於 RAIN 的防損產品時，我相信，這種部署是機會到來的風向標，因為我們可以部署防損，做防損的真正原因是如果你做自助結賬。長期以來，零售商都在要求自助結賬，以改善零售店的流線型。正如我在準備好的評論中所說，自助結賬以及更好的庫存可見性，這確實是未來商店的願景。因此，從零售服裝開始，零售業蘊藏著巨大的機遇，因為這是該行業最先出局的地方。但擴展到各種其他零售商品，家居用品（聽不清）一般商品。因此，我們正處於轉型的早期階段——不是轉型，而是從主要在零售領域的手持驅動庫存盤點擴展到零售、供應鍊和物流、航空和其他機會的固定閱讀機會。我們相信，由於我們的平台和我們在平台上進行的投資，對這些（聽不清）機會的擴展使 Impinj 非常好。

Great. And just as a quick follow-up, could you just provide us with an update on some of the competitive dynamics you're seeing? And any feel for market share gains given your M700 differentiation?

偉大的。作為快速跟進，您能否向我們提供您所看到的一些競爭動態的最新信息？鑑於您的 M700 差異化，您對市場份額的增長有什麼感覺嗎？

So this is Chris. I'll take -- in terms of market share gains, we look at the end of every year at the RAIN Alliance data. For 2021, the RAIN Alliance published a number of roughly 29 billion units delivered in that year, which is 30% -- 36% -- I'm sorry, 36% year-over-year growth. We believe we gained a few points of share in 2021. In terms of 2022, obviously, there is an ongoing competitive dynamic and we do our best to allocate our supply and work with our partners to be as competitive in the market as we possibly can be, but we don't have good visibility in terms of the actual numbers of units until the end of the year with the RAIN Alliance, and we don't actually speculate in terms of what those numbers are. So we have hard numbers at the end of the year.

這就是克里斯。我會採取 - 就市場份額的增長而言，我們每年都會查看 RAIN 聯盟的數據。 2021 年，RAIN 聯盟公佈了當年交付的大約 290 億台設備，同比增長 30% - 36% - 對不起，同比增長 36%。我們相信我們在 2021 年獲得了一些份額。顯然，就 2022 年而言，競爭動態持續不斷，我們盡最大努力分配我們的供應並與我們的合作夥伴合作，盡可能在市場上保持競爭力是的，但是直到今年年底，我們對 RAIN 聯盟的實際單位數量還沒有很好的了解，而且我們實際上並沒有推測這些數字是多少。所以我們在年底有硬性數字。

The next question comes from Harsh Kumar with Piper Sandler.

下一個問題來自 Harsh Kumar 和 Piper Sandler。

First of all, congratulations, solid results, solid day. Chris and Cary, I had a question on the logistics comment, customer comment that you made. I believe you mentioned that you saw a ramp-up in readers associated with the second largest customer and expecting endpoint ICs to ramp up in 2023. I was curious if you could provide us with some color. Does this mean that, that customer is going into implementation in 2023? Or how should we look at that?

首先，恭喜，紮實的成績，紮實的一天。克里斯和卡里，我對你們提出的物流評論和客戶評論有疑問。我相信您提到您看到與第二大客戶相關的讀者數量增加，並預計端點 IC 將在 2023 年增加。我很好奇您能否為我們提供一些顏色。這是否意味著該客戶將在 2023 年實施？或者我們應該怎麼看？

Yes. So Harsh, thank you for your kind words. And I'll take a first cut at answering your question and then see if Jeff or Cary want to jump in. So we did say that second large North American supply chain and logistics customers, advanced their reader deployment and contributed the largest quarterly revenue to date. So yes, they have continued to deploy at every stage in one of these fixed reading deployments. After you've deployed enough readers and the customer is ready, they begin to flip the switch over from getting the fixed infrastructure ready to consuming tag volumes. We expect -- this is our expectation based on where they are, that, that switch flipping, will occur in 2023 and will generate significant endpoint IC opportunities. That's an expectation on our part based on what we know about the deployment. The endpoint IC opportunities with that customer can be quite large. I prefer not to quantify anything here because, again, there's certain timing in terms of the cutover and the pace at which they adopt -- I'm sorry, the pace at which they really begin ramping up, not adopt, the pace at which they begin ramping. But our expectation is, given the scope of the deployment and the pace at which they are progressing, we do expect a significant opportunity in '23.

是的。如此苛刻，謝謝你的客氣話。我會先回答你的問題，然後看看 Jeff 或 Cary 是否願意加入。所以我們確實說北美第二大供應鍊和物流客戶推進了他們的閱讀器部署，並貢獻了最大的季度收入日期。所以，是的，他們繼續在這些固定閱讀部署中的每個階段進行部署。在您部署了足夠多的閱讀器並且客戶準備就緒後，他們開始將轉換從準備好固定基礎設施轉向消費標籤卷。我們預計——這是我們基於它們所處位置的預期，即開關翻轉將在 2023 年發生，並將產生重要的端點 IC 機會。根據我們對部署的了解，這是我們的期望。該客戶的端點 IC 機會可能非常大。我不想在這裡量化任何東西，因為，再次，在切換和他們採用的速度方面有一定的時間 - 對不起，他們真正開始加速的速度，而不是採用的速度，他們開始加速。但我們的期望是，鑑於部署的範圍和進展速度，我們確實預計 23 年會有重大機會。

Very helpful, Chris. I'm going to leave this topic, but I'm going to ask you for 1 small clarification on that. When somebody like that goes live with the so-called implementation, does that mean that they go 100% with all products that they are managing the logistics for? Or can they do in stages, i.e., certain geos and certain types of products versus others?

很有幫助，克里斯。我將離開這個話題，但我會要求你對此進行一點澄清。當這樣的人實施所謂的實施時，這是否意味著他們會 100% 使用他們管理物流的所有產品？或者他們可以分階段進行，即某些地理位置和某些類型的產品與其他產品？

Thank you for the clarification. And it is an important point, Harsh. Thank you. In general, we do not see end customers going from 0 to 100% in 1 step. It's just very difficult to happen. So we see some large enterprises going category by category. some scope -- some categories of items or some categories of supply chain and logistics, special deliveries and start there. They'll use that smaller set of items to test their processes, prove their operational efficiencies, basically do the upfront work to prove that everything is working. And then they expand from a first category into multiple categories. In other types of deployments, we'll see enterprises go geography by geography. And I'll use as an example, one of the retailers that has been expanding country by country. So they roll out in one country and then they move on to the next one. It is very rare to see a large enterprise do a cutover all at once because the risks in doing so, not just from the RAIN RFID perspective, but from an entire back-end perspective, getting ready for it, just too high. But to get back to the first part of your question, what we see and feel from the second large North American supply chain and logistics customer is they are at the point where we believe next year, they will have the opportunity to do a significant turn on of the capacity they have already deployed -- the reader capacity they've already deployed.

謝謝你的澄清。這是很重要的一點，Harsh。謝謝你。一般來說，我們看不到最終客戶會一步從 0 到 100%。這很難發生。因此，我們看到一些大型企業逐類發展。某些範圍——某些類別的項目或某些類別的供應鍊和物流、特殊交付並從那裡開始。他們將使用較小的一組項目來測試他們的流程，證明他們的運營效率，基本上做前期工作來證明一切正常。然後它們從第一類擴展到多個類別。在其他類型的部署中，我們將看到企業按地理分佈。我將舉一個例子，一個正在逐個國家擴張的零售商。所以他們在一個國家推出，然後轉移到下一個國家。很少看到大型企業一次性完成切換，因為這樣做的風險，不僅從 RAIN RFID 的角度來看，而且從整個後端的角度來看，為它做好準備，太高了。但回到你問題的第一部分，我們從北美第二大供應鍊和物流客戶那裡看到和感受到的是，他們正處於我們相信明年的地步，他們將有機會做出重大轉變他們已經部署的容量——他們已經部署的閱讀器容量。

The next question comes from Troy Jensen with Lake Street Capital.

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

Congrats on the great results. I guess I want to kind of piggyback on Harsh's comments here this second big logistics customer. They reported in their 10-K that they transported 6.4 billion packages in 2021. So assuming $0.01 per tag, that equates to about a $64 million opportunity annually when they're at 100%. Is -- I know you don't want to quote numbers, but I guess your comments on that? And then is there any ratio on infrastructure spending that's needed to facilitate that, I guess, I feel like we can quantify the size of the tag opportunity, but I'm a little uncertain on how to quantify the other infrastructure side there.

祝賀偉大的結果。我想我想在這裡對這位第二大物流客戶哈什的評論有所借鑒。他們在 10-K 中報告說，他們在 2021 年運輸了 64 億個包裹。因此，假設每個標籤 0.01 美元，這相當於當他們達到 100% 時每年大約有 6400 萬美元的機會。是——我知道你不想引用數字，但我猜你對此有何評論？然後，是否需要任何基礎設施支出比率來促進這一點，我想，我覺得我們可以量化標籤機會的大小，但我有點不確定如何量化那裡的其他基礎設施方面。

Yes. So Troy, this is quick. I'm going to take a stab at your question. First, in regards to the overall endpoint IC opportunity, we don't cite the name of any particular end customer. And in fact, we've mentioned 2 of the large North American supply chain and logistics customers, first and a second and other significant retail opportunities. What I will say is that the size of the Fortune 500 or in many cases, Fortune 100 end customers that are deploying RAIN RFID today suggests that multibillion unit opportunities per enterprise are not uncommon, or said another way, could actually be quite common. There are many entities that move or sell billions of units per year. And so the numbers you're thinking about in terms of the endpoint ICs can be quite large, especially as multiple of these enterprises move forward. Then in terms of the ratio of endpoint ICs to systems opportunity, the way we think about it is the endpoint IC opportunity is the recurring opportunity. The systems is what we need to deploy in order to make that recurring opportunity happen. So upfront, we generate good systems revenue, as we said, for the visionary European retailer, 3x as much revenue in the second deployment as the one they did last year. This is for the loss prevention and self-checkout. And that's important to us and it's valuable to us and we continue investing in systems. But the real value in those systems deployments is to drive endpoint IC volumes and for our entire platform, preference for Impinj endpoint ICs.

是的。所以特洛伊，這很快。我要對你的問題進行抨擊。首先，關於整體端點 IC 機會，我們沒有引用任何特定最終客戶的名稱。事實上，我們已經提到了北美大型供應鍊和物流客戶中的 2 個，第一個和第二個以及其他重要的零售機會。我要說的是，如今正在部署 RAIN RFID 的財富 500 強或財富 100 強最終客戶的規模表明，每個企業擁有數十億單位的機會並不少見，或者換一種說法，實際上可能相當普遍。有許多實體每年移動或銷售數十億個單位。因此，您在端點 IC 方面考慮的數字可能非常大，尤其是隨著這些企業中的多家企業向前發展。然後就端點 IC 與系統機會的比率而言，我們認為端點 IC 機會是重複性機會。這些系統是我們需要部署的，以使這種反復出現的機會發生。因此，正如我們所說，我們為有遠見的歐洲零售商創造了良好的系統收入，第二次部署的收入是去年的 3 倍。這是為了防止損失和自助結賬。這對我們很重要，對我們很有價值，我們會繼續投資於系統。但這些系統部署的真正價值在於推動端點 IC 的數量，並且對於我們的整個平台而言，更偏愛 Impinj 端點 IC。

Perfect. Understood. Just 1 follow-up for me. M700 as a percentage of tag sales, I think you exceeded the halfway mark a quarter or 2 ago. Any other color you can give us there? I'm just curious how much room you have here to expand the margin contribution rate from the M700.

完美的。明白了。對我來說只有 1 次跟進。 M700 佔標籤銷售額的百分比，我認為您在 2 季度或 2 季度前超過了一半。你可以給我們任何其他顏色嗎？我只是好奇你在這裡有多少空間來擴大 M700 的保證金貢獻率。

Yes. Troy, this is Cary. I'll take a shot at that one. So as you know that we ramped M700 as a percentage of our sales mix quite significantly last year. In third quarter, it became our volume runner. In the fourth quarter, it was the lion's share of our sales mix. As I look to 2022, growth from kind of where we are right now is limited by supply. And our supply and -- mix of the supply between 200 and 300 millimeter. So as you're doing that translation from M700 mix to gross margin, and we provided some pretty good color this quarter on not only Q2, but where we think Q3 is going to be. And I think that's the right range to think about until the supply mix changes, which we will certainly make you aware of when that happens. And then, as I noted before, as additional innovation on 300-millimeter endpoint ICs occurs, and we can provide more opportunity for gross margin accretion.

是的。特洛伊，這是卡里。我會拍那個。如您所知，我們去年將 M700 占我們銷售組合的百分比相當顯著。在第三季度，它成為了我們的銷量領跑者。在第四季度，這是我們銷售組合的最大份額。當我展望 2022 年時，從我們現在的情況來看，增長受到供應的限制。而我們的供應和 - 200 到 300 毫米之間的供應混合。因此，當您將 M700 組合轉換為毛利率時，我們在本季度不僅在第二季度提供了一些非常好的色彩，而且在我們認為第三季度的情況下。而且我認為這是在供應組合發生變化之前考慮的正確範圍，我們肯定會在發生這種情況時讓您知道。然後，正如我之前提到的，隨著 300 毫米端點 IC 的更多創新出現，我們可以為毛利率增加提供更多機會。

(Operator Instructions) The next question comes from Chris Grenga with Needham & Company.

（操作員說明）下一個問題來自 Needham & Company 的 Chris Grenga。

Just real quickly on the retailers expanding into new categories. Is that -- are you seeing new logos in specialty retail categories? Or is that existing retailer customers that are expanding into new categories within the same customer?

零售商很快就會擴展到新的類別。那是-您是否在專業零售類別中看到了新徽標？還是現有的零售商客戶正在同一客戶中擴展到新的類別？

Chris, we were primarily referring to existing retailers expanding into new categories like beyond retail apparel. And so we've seen some pretty significant expansion at existing enterprises into those new categories and multiple of those enterprises. That's not to say that there isn't ongoing acceleration in retail deployments. And in fact, new enterprises continue to adopt. But at least in the context of those comments, we're referring to expansion beyond retail apparel to other categories at retailers that were already deployed in retail apparel.

克里斯，我們主要指的是現有零售商擴展到零售服裝以外的新類別。因此，我們已經看到現有企業在這些新類別和多個企業中進行了相當大的擴張。這並不是說零售部署沒有持續加速。事實上，新的企業繼續採用。但至少在這些評論的背景下，我們指的是從零售服裝擴展到已經部署在零售服裝中的零售商的其他類別。

Terrific. And just with respect to the system supply catching up with demand, what levers there do you have to ensure that or to give you visibility into catching that demand by the end of the year?

了不起。就係統供應趕上需求而言，您有什麼槓桿來確保或讓您了解在年底前趕上需求？

So that's a little bit more nuanced question to answer. For our readers and gateways, which are finished boxes, we do have the ability to do redesign -- circuit board redesign if there is difficult to get components. We do have the ability to kind of flex in terms of purchasing those components. And so unlike an IC where you were fabricating wafers with a foundry partner and you don't quickly move, and in many cases, you have a long-term relationship with that foundry part, when you're building a systems component, you do have more flexibility in terms of component availability. So we look to that component availability, things we can do from an engineering perspective to improve our supply, again, slight modifications and other things like that, buying parts in the open market as well as enhancing our test capacity, for example, for our reader ICs having our older generation in reader IC on our new generation of E-family ICs and flexing there. When you put all the pieces together, we feel that we will be able to significantly catch up to systems demand by the end of the year.

所以這是一個更微妙的問題要回答。對於我們的閱讀器和網關，它們是成品盒子，我們確實有能力進行重新設計——如果難以獲得組件，則重新設計電路板。我們確實有能力在購買這些組件方面進行靈活調整。因此，與您與代工廠合作夥伴一起製造晶圓並且您不會快速移動的 IC 不同，在許多情況下，您與該代工廠部分有著長期的關係，當您構建系統組件時，您會這樣做在組件可用性方面具有更大的靈活性。因此，我們著眼於組件的可用性，我們可以從工程角度做的事情，以改善我們的供應，再次，輕微的修改和其他類似的事情，在公開市場上購買零件以及提高我們的測試能力，例如，為我們的閱讀器 IC 在我們的新一代 E 系列 IC 上具有我們老一代的閱讀器 IC 並在那裡彎曲。當您將所有部分放在一起時，我們認為我們將能夠在今年年底之前顯著滿足系統需求。

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

問答環節到此結束。我想將會議轉回給聯合創始人兼首席執行官克里斯·迪奧里奧（Chris Diorio），以發表任何結束語。

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

謝謝你，接線員，我要感謝大家今天加入電話會議。我希望你和你所愛的人一直平安無事。非常感謝。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。