Pioneer Power Solutions Inc (PPSI) 2023 Q2 法說會逐字稿

Good afternoon, and welcome to the Pioneer Power Solutions 2023 second-quarter financial results conference call. (Operator Instructions) Please note this event is being recorded.

下午好，歡迎參加先鋒電源解決方案 2023 年第二季度財務業績電話會議。 （操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Kim Rogers with Hayden IR. Please go ahead.

我現在想把會議交給 Kim Rogers 和 Hayden IR。請繼續。

Thank you, and welcome. Joining us on today's call will be Nathan Mazurek, Chairman and Chief Executive Officer; Walter Michalec, Chief Financial Officer; and Geo Murickan, President of Pioneer Power eMobility. Following management's prepared comments, a Q&A session will be open to the call participants. We appreciate the opportunity to review second-quarter 2023 financial results and discuss our recent business highlights.

謝謝你，也歡迎你。董事長兼首席執行官 Nathan Mazurek 將參加今天的電話會議；沃爾特·米哈萊克 (Walter Michalec)，首席財務官；以及 Pioneer Power eMobility 總裁 Geo Murickan。在管理層準備好評論後，將向電話會議參與者開放問答環節。我們很高興有機會回顧 2023 年第二季度的財務業績並討論我們最近的業務亮點。

Before we get started, let me remind you that this call is being recorded and webcast. During the call, management will make forward-looking statements. These statements are based on the current expectations and assumptions, and are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the cautionary text regarding forward-looking statements contained in the earnings release issued earlier today, which applies to the content of today's call as well.

在我們開始之前，讓我提醒您，本次通話正在錄音並進行網絡直播。在電話會議期間，管理層將做出前瞻性聲明。這些陳述基於當前的預期和假設，並受到可能導致實際結果存在重大差異的風險和不確定性的影響。請參閱今天早些時候發布的收益報告中有關前瞻性陳述的警示文本，該文本也適用於今天電話會議的內容。

I would now like to turn the call over to Nathan Mazurek, Chairman and CEO. Nathan, please go ahead.

我現在想將電話轉給董事長兼首席執行官內森·馬祖雷克 (Nathan Mazurek)。內森，請繼續。

Thank you, Kim. Good afternoon, and thank you all for joining us today. This was a great quarter for us, with both divisions delivering strong performance, resulting in record revenue that was up nearly 150% year over year for the second quarter and a bottom line that was solidly profitable, excluding non-cash one-time charges relating to stock-based compensation. The revenue growth reflects growing demand across both our business segments, and the profitability reflects better operating leverage, manufacturing efficiencies, and a more optimal product mix.

謝謝你，金。下午好，感謝大家今天加入我們。這對我們來說是一個偉大的季度，兩個部門都表現強勁，第二季度收入同比增長近 150%，創歷史新高，利潤豐厚，不包括與相關的非現金一次性費用以股票為基礎的薪酬。收入增長反映了我們兩個業務部門不斷增長的需求，盈利能力反映了更好的運營槓桿、製造效率和更優化的產品組合。

Notably, we are delivering better profitability even as we continue to invest significant monies, primarily in our e-Boost business. Even with these large investments, we essentially generated approximately $0.05 per share in GAAP net income, if not for non-cash stock-based compensation charges, and we still expect to generate positive net income for the full-year 2023. Both our segments are executing to plan so far. Our T&D Solutions unit, which includes our E-Bloc power system and related products, grew revenue 263% to $9.2 million compared to $2.5 million for the second quarter of last year. Indeed, year to date, T&D revenue was up 140% to $15 million versus last year's $6.3 million.

值得注意的是，即使我們繼續投入大量資金（主要是在 e-Boost 業務上），我們仍能實現更好的盈利能力。即使進行了這些巨額投資，如果沒有基於非現金股票的補償費用，我們基本上也產生了每股約 0.05 美元的 GAAP 淨利潤，而且我們仍然預計 2023 年全年將產生正的淨利潤。到目前為止正在執行計劃。我們的 T&D 解決方案部門（包括 E-Bloc 電力系統和相關產品）的收入增長了 263%，達到 920 萬美元，而去年第二季度的收入為 250 萬美元。事實上，今年迄今為止，T&D 收入增長了 140%，達到 1500 萬美元，而去年為 630 萬美元。

Our Critical Power segment, which includes our e-Boost Mobile charging platform, grew quarterly revenue 25% and year-to-date revenue 14% compared to last year. In addition, 100% of Pioneer's revenue growth has been entirely organic. Gross margins in both segments have improved exponentially since a year ago. Notably, our T&D segment is now delivering consistent positive GAAP EBITDA, specifically $1.8 million in the second quarter, up from a loss of $432,000 in the second quarter of last year, and positive EBITDA of $3.1 million year to date compared to a loss of $332,000 in the first six months of last year. In addition, our Critical Power segment has narrowed its losses and is moving towards positive operating margin, which we fully expect to achieve for the full year of 2024.

我們的關鍵電源部門（包括 e-Boost 移動充電平台）與去年相比，季度收入增長了 25%，年初至今收入增長了 14%。此外，先鋒公司 100% 的收入增長完全是有機的。自一年前以來，這兩個細分市場的毛利率均呈指數級增長。值得注意的是，我們的T&D 部門目前持續實現正GAAP EBITDA，具體而言，第二季度為180 萬美元，高於去年第二季度的虧損432,000 美元，今年迄今的正EBITDA 為310 萬美元，而虧損為332,000 美元去年前六個月。此外，我們的關鍵電力部門已經縮小了虧損，並正在朝著正營業利潤率邁進，我們完全期望在 2024 年全年實現這一目標。

Our innovative and highly flexible E-Bloc solution has been and will continue to be a key driver in our strong performance. We now have hundreds of E-Bloc installations around the country, ranging from retail locations, health and hospital, manufacturing facilities, EV charging, and solar-based microgrids. We continue to see new and large use cases for E-Bloc. These include water utilities, like the one we are delivering this year in California, where E-Bloc systems are being deployed as part of a sophisticated distributed energy system, enabling the water utility to better manage its power utilization, improve resiliency, better control costs, and reduce its carbon footprint.

我們創新且高度靈活的 E-Bloc 解決方案已經並將繼續成為我們強勁業績的關鍵驅動力。我們現在在全國各地安裝了數百個 E-Bloc，範圍包括零售場所、健康和醫院、製造設施、電動汽車充電和太陽能微電網。我們不斷看到 E-Bloc 新的大型用例。其中包括水務公司，例如我們今年在加利福尼亞州交付的水務公司，其中E-Bloc 系統被部署為複雜的分佈式能源系統的一部分，使水務公司能夠更好地管理其電力利用、提高彈性、更好地控製成本，並減少其碳足跡。

Another growing market for us is data centers, where power consumption and resiliency are critical issues. This is a massive market that is just beginning to embrace distributed generation and turn away from traditional diesel-powered solutions. The emergence of AI has not only increased the demand for data centers, but more relevant to Pioneer's substantial increase in the raw power required by each data center.

我們另一個不斷增長的市場是數據中心，其中功耗和彈性是關鍵問題。這是一個剛剛開始接受分佈式發電並放棄傳統柴油動力解決方案的巨大市場。 AI的出現不僅增加了對數據中心的需求，更與先鋒大幅增加每個數據中心所需的原始電力相關。

We secured our first E-Bloc data center order last year and expect to deliver on that project towards the end of 2024, carrying over to the beginning of 2025. We expect that a successful flagship-type installation of this particular project will serve as a model and leading to additional data center deployments with this particular customer, their construction partners, and hopefully other data center owners and developers as well. In addition, prior customers are returning, especially in the retail market, and ordering additional units for additional stores because E-Bloc works and is providing the specific benefits that they had all bargained for.

我們去年獲得了第一個 E-Bloc 數據中心訂單，預計在 2024 年底交付該項目，並延續到 2025 年初。我們預計該特定項目的成功旗艦型安裝將成為模型，並導致該特定客戶、其建設合作夥伴以及其他數據中心所有者和開發商進行額外的數據中心部署。此外，以前的客戶正在回歸，尤其是在零售市場，並為更多商店訂購更多單位，因為 E-Bloc 有效並提供了他們都討價還價的特定好處。

The distributed generation market continues to grow, as potential customers seek to utilize solar and other renewable sources, combined with battery storage, to make energy resources more reliable, cost-effective, and environmentally friendly. As it stands today, the US cannot expect to produce enough power over the next 10 years to satisfy anticipated demand, making distributed generation a requirement, not an option, for many enterprises.

分佈式發電市場持續增長，因為潛在客戶尋求利用太陽能和其他可再生能源，結合電池存儲，使能源更加可靠、更具成本效益和環保。就目前情況而言，美國無法指望在未來 10 年內生產足夠的電力來滿足預期需求，這使得分佈式發電成為許多企業的一項要求，而不是一種選擇。

We're also delivering growth from our e-Boost Mobile charging platform, and we continue to significantly invest in this business, with expectations of further revenue acceleration. What started as a concept two years ago and a prototype, only first/only in November of 2021, has become a rapidly growing product platform that is addressing a market that indeed did not even exist several years ago. To date, our e-Boost wins include, most recently, the city of Fairfield, California ordered an e-Boost trailer-mounted unit to service the electric portion of Fairfield's public bus fleet. This is our first award addressing the municipal transportation market. With government grants supporting the bus fleet electrification, and the growing environmental concerns, we fully expect this market to continue to grow for e-Boost.

我們還通過 e-Boost 移動充電平台實現增長，並且我們繼續大力投資這項業務，預計收入將進一步加速。兩年前開始的概念和原型（僅在 2021 年 11 月才首次/僅在 2021 年 11 月）已成為一個快速增長的產品平台，正在解決幾年前甚至不存在的市場。迄今為止，我們的 e-Boost 勝利包括最近加利福尼亞州費爾菲爾德市訂購了一台 e-Boost 拖車式裝置，為費爾菲爾德公共巴士車隊的電動部分提供服務。這是我們第一個針對市政交通市場的獎項。隨著政府撥款支持公交車隊電氣化，以及日益增長的環境問題，我們完全預計 e-Boost 這個市場將繼續增長。

The autonomous driving division of a major global automaker ordered multiple e-Boost units to support the initial rollout of their autonomous electric vehicles in several cities. More and more cities are approving autonomous vehicles, including driverless taxis. This geographic expansion will lead to more demand for e-Boost to support these rollouts. Merchants Fleet, the large fleet management business, took delivery of two trailer-mounted e-Boost solutions to be integrated into Merchants Fleet's electric vehicle charging offering. We expect other fleet management companies to embrace e-Boost as well in order to facilitate the electrification of their fleets.

一家全球主要汽車製造商的自動駕駛部門訂購了多台 e-Boost 裝置，以支持其自動駕駛電動汽車在多個城市的初步推廣。越來越多的城市正在批准自動駕駛汽車，包括無人駕駛出租車。這種地域擴張將導致對 e-Boost 的更多需求，以支持這些部署。大型車隊管理企業 Merchants Fleet 接收了兩個拖車式 e-Boost 解決方案，並將其集成到 Merchants Fleet 的電動汽車充電產品中。我們預計其他車隊管理公司也將採用 e-Boost，以促進其車隊的電氣化。

A major northeastern transportation agency acquired a 75KW e-Boost Mobile trailer for their internal fleet of buses and cars. We have provided two propane-powered mobile charging e-Boost systems to be deployed at a port in the state of California to fast-charge electric vehicles imported from overseas manufacturing facilities.

東北部一家主要運輸機構為其內部巴士和汽車車隊購買了一輛 75KW e-Boost Mobile 拖車。我們提供了兩個丙烷驅動的移動充電 e-Boost 系統，將部署在加利福尼亞州的一個港口，為從海外製造工廠進口的電動汽車快速充電。

While the market for electric cars, trucks, and buses in many ways was the first and most obvious application of our e-Boost system, we have learned from the experience of the last two years that the opportunities don't stop there. For example, almost all airlines have internal mandates to convert their ground service equipment from diesel to electric over the next several years. This could mean that each airline needs on-demand mobile charging capabilities at almost every airport that they serve. Additionally, construction, mining equipment are transitioning to all-electric, as well as watercraft and electric vertical takeoff and landing offerings, where a mobile charging option is particularly important. Each of these trends require flexible charging solutions. Each of these areas represent meaningful additional opportunities for us to fill the gap in the EV charging infrastructure over the next several years.

雖然電動汽車、卡車和公共汽車市場在很多方面都是我們的 e-Boost 系統的第一個也是最明顯的應用，但我們從過去兩年的經驗中了解到，機會並不止於此。例如，幾乎所有航空公司都有內部指令，要求在未來幾年內將其地面服務設備從柴油轉換為電動。這可能意味著每家航空公司都需要在其服務的幾乎每個機場提供按需移動充電功能。此外，建築、採礦設備以及船舶和電動垂直起降設備正在向全電動過渡，其中移動充電選項尤為重要。這些趨勢都需要靈活的充電解決方案。這些領域中的每一個領域都為我們提供了有意義的額外機會，以填補未來幾年電動汽車充電基礎設施的空白。

We also continue to innovate with e-Boost, with the goal of supercharging, pun intended, our revenue and expanding our addressable market. This includes developing new variations of e-Boost. Specifically, we are building smaller units for emergency/tow-truck-type applications. We are designing less expensive, lower-powered options for concierge charging and similar deployments. And for certain users that absolutely demand a zero-emission mobile charging solution, we are working on battery-only configurations of e-Boost. We expect to unveil most of these product extensions before the end of 2023. Ultimately, we believe these additional offerings, all based on prior successful versions we have already built, will give us access to more use cases and many more potential customers.

我們還繼續通過 e-Boost 進行創新，目標是增強我們的收入並擴大我們的潛在市場。這包括開發 e-Boost 的新版本。具體來說，我們正在為緊急/拖車類型的應用建造更小的裝置。我們正在為禮賓充電和類似部署設計更便宜、功耗更低的選項。對於某些絕對需要零排放移動充電解決方案的用戶，我們正在開發純電池配置的 e-Boost。我們預計在 2023 年底之前推出大部分產品擴展。最終，我們相信這些附加產品（全部基於我們之前已經構建的成功版本）將使我們能夠獲得更多用例和更多潛在客戶。

Based on our pipeline of e-Boost opportunities, we believe we will generate incremental growth in the second half compared to the first half of this year. And in addition, we expect e-Boost to begin contributing positive EBITDA to the full year of 2024. Our addressable markets are massive, and almost every day, new use cases from current and new customers emerge. The energy transition era is real, and Pioneer is at the edge of it, offering proven competitive solutions.

根據我們的 e-Boost 機會渠道，我們相信與今年上半年相比，下半年我們將實現增量增長。此外，我們預計 e-Boost 將開始在 2024 年全年貢獻正的 EBITDA。我們的潛在市場巨大，幾乎每天都會出現來自當前和新客戶的新用例。能源轉型時代是真實存在的，而先鋒公司正處於這個時代的邊緣，提供經過驗證的有競爭力的解決方案。

With that, let me turn the call over to Walter, our Chief Financial Officer, to discuss our financial results for the second quarter.

接下來，讓我將電話轉給我們的首席財務官沃爾特，討論我們第二季度的財務業績。

Thank you, Nathan, and good afternoon, everyone. As Nathan mentioned, this was a great quarter for Pioneer, with both divisions delivering strong performances. Pioneer's second-quarter consolidated revenue was $12.1 million, up $7.3 million or approximately 150% when compared to $4.9 million of revenue during the same period last year. Revenue from our T&D Solutions segment, which manufactures and integrates our E-bloc power systems, increased 263% to $9.2 million during the second quarter as compared to revenue of $2.5 million during the same period last year.

謝謝內森，大家下午好。正如內森提到的，對於先鋒來說，這是一個偉大的季度，兩個部門都表現強勁。先鋒公司第二季度合併收入為 1,210 萬美元，比去年同期的 490 萬美元增加了 730 萬美元，增幅約為 150%。我們的 T&D 解決方案部門負責製造和集成 E-bloc 電力系統，第二季度的收入增長了 263%，達到 920 萬美元，而去年同期的收入為 250 萬美元。

Revenue from our Critical Power segment, which manufactures and integrates our e-Boost Mobile charging solutions, was up 25% to $2.9 million during the comparable periods. Consolidated gross profit for the second quarter was $2.7 million, or a 22% gross margin, compared to gross profit of $63,000. We're essentially breaking even during the second quarter of last year. The significant improvement to our gross profit and margin was due to higher revenue, driving improved manufacturing utilization, a favorable sales mix of higher margin E-Bloc power systems and ATS equipment, and margin expansion in both segments as we continue to scale revenue.

我們的關鍵電源部門負責製造和集成 e-Boost 移動充電解決方案，同期收入增長了 25%，達到 290 萬美元。第二季度綜合毛利潤為 270 萬美元，毛利率為 22%，而毛利潤為 63,000 美元。去年第二季度我們基本上實現了收支平衡。我們的毛利潤和利潤率的顯著改善是由於收入增加，推動了製造利用率的提高，利潤率較高的E-Bloc 電力系統和ATS 設備的有利銷售組合，以及隨著我們繼續擴大收入規模，這兩個部門的利潤率擴大。

Selling, general, and administrative expenses of $3.1 million were 25% of revenue for the second quarter of 2023, an increase of 20% when compared to $2.6 million in the year-ago quarter. Approximately $819,000 of the quarterly SG&A expense was related to one-time non-cash stock-based compensation. SG&A also includes approximately $750,000 in incremental investments in sales, marketing, personnel, and prototypes for our e-Boost solutions. This is intentional and targeted spending designed to drive demand for these new solutions. We expect these investments to continue through 2023 as we build these new business lines and as they grow.

銷售、一般和管理費用為 310 萬美元，佔 2023 年第二季度收入的 25%，與去年同期的 260 萬美元相比增加了 20%。季度 SG&A 費用中約 819,000 美元與一次性非現金股票薪酬相關。 SG&A 還包括約 750,000 美元的增量投資，用於我們的 e-Boost 解決方案的銷售、營銷、人員和原型。這是有意且有針對性的支出，旨在推動對這些新解決方案的需求。隨著我們建立這些新業務線並隨著它們的發展，我們預計這些投資將持續到 2023 年。

Finally, higher wage costs, including salaries and benefits, contributed to the increase in SG&A expense. Our operating loss, which again includes one-time non-cash stock-based compensation expense of $819,000, was $319,000 for the second quarter of 2023, a positive swing of more than $2.1 million compared to an operating loss of $2.5 million in the second quarter of last year. If we back out the one-time non-cash stock-based compensation, Pioneer generated operating income of approximately $440,000 during the second quarter, compared to an operating loss of approximately $2 million in the same period last year.

最後，工資成本（包括工資和福利）的增加導致了銷售、管理和行政費用的增加。我們的運營虧損（再次包括 819,000 美元的一次性非現金股票補償費用）在 2023 年第二季度為 319,000 美元，與第二季度 250 萬美元的運營虧損相比，正向波動超過 210 萬美元去年的。如果我們取消一次性非現金股票補償，先鋒公司第二季度的營業收入約為 44 萬美元，而去年同期的營業虧損約為 200 萬美元。

Net loss for the second quarter of 2023 was $319,000, or negative $0.03 per basic and diluted share, compared to a net loss of $2.5 million, or negative $0.26 per basics and diluted share, during the second quarter of 2022. It's important to note that the company has $14.2 million in NOL carryforwards as of June 30, 2023, sheltering future income from federal income taxes. Also, backing out the one-time non-cash stock-based compensation expense of $819,000, Pioneer generated a net income of approximately $500,000, or $0.05 per share during the second quarter, compared to a net loss of approximately $2 million, or negative $0.20 per share, during the second quarter of last year.

2023 年第二季度的淨虧損為319,000 美元，即每股基本股和稀釋股負0.03 美元，而2022 年第二季度的淨虧損為250 萬美元，即每股基本股和稀釋股負0.26 美元。值得注意的是，截至 2023 年 6 月 30 日，該公司擁有 1,420 萬美元的 NOL 結轉，用於保護未來收入免繳聯邦所得稅。此外，扣除 819,000 美元的一次性非現金股票補償費用後，先鋒第二季度淨利潤約為 500,000 美元，即每股 0.05 美元，而淨虧損約為 200 萬美元，即負 0.20 美元每股，去年第二季度。

Looking briefly at the year-to-date results, total consolidated revenue for the six months ended June 30, 2023, was $20.6 million, an increase of 84% compared to $11.2 million during the first six months of last year. Revenue from the T&D Solutions segment increased approximately 140%, and revenue from the Critical Power segment increased 14% during the first half of 2023, as compared to the same period last year. Total gross profit for the first six months of the year was $4.9 million or a 24% gross margin, compared to gross profit of $986,000 or approximately 9% of revenues for the same period in 2022. Loss from operations for the first six months of the year was $322,000 as compared to a loss from operations of more than $3.3 million during the first half of 2022.

簡單看一下今年迄今為止的業績，截至 2023 年 6 月 30 日的六個月的合併總收入為 2,060 萬美元，比去年前六個月的 1,120 萬美元增長了 84%。 2023年上半年，輸配電解決方案部門的收入較去年同期增長約140%，關​​鍵電源部門的收入增長14%。今年前六個月的毛利潤總額為 490 萬美元，毛利率為 24%，而 2022 年同期的毛利潤為 986,000 美元，約佔收入的 9%。 今年前六個月的運營虧損2022 年上半年運營虧損為322,000 美元，而2022 年上半年運營虧損超過330 萬美元。

One-time non-cash stock-based compensation for the first six months of the year, and for the first six months last year, was $962,000 and $716,000, respectively. Excluding stock-based compensation, Pioneer generated income from operations of approximately $640,000 during the first half of 2023, compared to a loss from operations of $2.6 million during the first half of 2022, a positive swing of more than $3 million.

今年前六個月和去年前六個月的一次性非現金股票薪酬分別為 962,000 美元和 716,000 美元。不計入股票薪酬，先鋒公司 2023 年上半年的運營收入約為 64 萬美元，而 2022 年上半年的運營虧損為 260 萬美元，正向波動超過 300 萬美元。

Our net loss for the first six months was $197,000, or negative $0.02 per basic and diluted share, compared to a net loss of $3.3 million, or negative $0.34 per basic and diluted share, during the same period of 2022. Once again, backing out the stock-based compensation expense, Pioneer generated approximately $0.08 in positive EPS or $765,000 during the first six months of this year.

我們前六個月的淨虧損為 197,000 美元，即每股基本股和稀釋股負 0.02 美元，而 2022 年同期淨虧損為 330 萬美元，即每股基本股和稀釋股負 0.34 美元。除去基於股票的補償費用，先鋒公司在今年前六個月產生了約0.08 美元的正EPS，即765,000 美元。

Turning to the balance sheet. We had cash on hand of approximately $9.6 million and zero bank debt at June 30, 2023, compared to cash of $10.3 million and zero bank debt at December 31, 2022. This represents cash per share of approximately $0.98 at June 30, 2023. Accordingly, we are confident that we are sufficiently capitalized to address our near-term investments and cash needs.

轉向資產負債表。截至2023 年6 月30 日，我們手頭現金約為960 萬美元，銀行債務為零，而截至2022 年12 月31 日，我們手頭現金為1,030 萬美元，銀行債務為零。這意味著截至2023 年6 月30 日，每股現金約為0.98 美元。 ，我們相信我們有足夠的資本來滿足我們的近期投資和現金需求。

We expect to deliver continued growth in the second half of 2023, with margin expansion and positive net income. Based primarily on our backlog as well as the significant and accelerating demand for our new solutions, we believe we can grow revenue by at least 50% in the current year. Additionally, we expect to generate positive full-year net income and earnings per share.

我們預計 2023 年下半年將實現持續增長，利潤率擴大，淨利潤為正。主要基於我們的積壓訂單以及對新解決方案的巨大且不斷增長的需求，我們相信今年的收入至少可以增長 50%。此外，我們預計全年淨利潤和每股收益將為正。

This concludes my remarks. I now turn the call back over to the operator for any questions.

我的發言到此結束。如果有任何問題，我現在將電話轉回給接線員。

(Operator Instructions) Sameer Joshi, H.C. Wainwright.

（操作員說明） Sameer Joshi, H.C.溫賴特。

Great. Thank you. Good afternoon. Nathan and Walter, congratulations on the excellent quarter. Was there any surprises on the positive side on the top line in terms of some deliveries getting expedited? Also, just wanted to understand what made this quarter so great.

偉大的。謝謝。下午好。內森和沃爾特，祝賀這個季度的出色表現。就某些交付加快而言，營收方面是否有任何令人意外的積極方面？另外，我只是想了解是什麼讓這個季度如此出色。

Yeah. Thank you, Sameer, for your comments. It has kind of unfolded the way we thought it would. The quarter -- thankfully, there were no real surprises. There was a little bit of a hangover from the first quarter. If you remember, there was one larger, or not really so large, but there was one job that kind of couldn't shift the last day of the first quarter, and that hungover into the second quarter of this year. But we stand by the guidance that we gave for the year. I mean, you can all do the math, you can -- the second half of the year will come in [and water will] come in. And we fully expect to meet, or hopefully even exceed a little bit, the guidance for the year.

是的。謝謝薩梅爾的評論。它已經按照我們想像的方式展開了。值得慶幸的是，本季度沒有出現真正的意外。第一季度留下了一些後遺症。如果你還記得的話，有一個更大的工作，或者不是那麼大，但有一個工作無法將第一季度的最後一天轉移到今年第二季度。但我們堅持我們今年給出的指導。我的意思是，你們都可以算一下，你們可以——下半年將會到來[並且水將會]到來。我們完全期望達到，甚至希望超過一點點，關於年。

Yeah. That's what it looks like. But specifically, on the backlog and your guidance vis-à-vis the second half, what proportion of this expected revenues would come from E-Bloc and e-Boost?

是的。看起來就是這樣。但具體來說，根據積壓訂單和您對下半年的指導，預計收入中來自 E-Bloc 和 e-Boost 的比例是多少？

Yeah, so the vast majority is coming from E-Bloc, especially the second half of this year. As we said in the prepared remarks, incrementally, e-Boost will have a better second half than it had the first half. So that's sort of a little bit of a wild card contribution that we generally don't have such good visibility as to when those things end up shipping and realizing the revenue. So that should be -- make even the second half a little bit stronger. But that's the mix.

是的，所以絕大多數來自 E-Bloc，尤其是今年下半年。正如我們在準備好的發言中所說，逐步地，e-Boost 的下半年將比上半年更好。因此，這有點像外卡貢獻，我們通常無法很好地了解這些東西何時最終發貨並實現收入。所以應該是——讓下半場變得更強一些。但這就是混合。

E-Bloc is driving it very hard here for 2023. We expect it to drive it hard for 2024, but we expect -- and well, it's too early to talk about 2024, but I hope that in the prepared remarks, that came across that we're expecting a substantially stronger year on the e-Boost side in 2024.

E-Bloc 正在努力推動2023 年的發展。我們預計它會在2024 年努力推動這一發展，但我們預計- 嗯，現在談論2024 年還為時過早，但我希望在準備好的發言中能夠體現這一點我們預計 2024 年 e-Boost 的表現將大幅增強。

Yeah, yeah. And will you remind us if e-Boost is going to be a better margin product? And maybe as revenues increase, profitability may improve?

是啊是啊。您能否提醒我們 e-Boost 是否會成為利潤率更高的產品？也許隨著收入的增加，盈利能力可能會提高？

Yeah, I mean, it should track that way. We definitely get better. The issue with e-Boost, it's all new, so there's some -- on our part, there's some missteps. Every single one is custom. There is no model for how to price a lot of these things. And so far, it's been all over the place, you know? Good, better than sometimes expected, and then sometimes worse. We don't have enough units under our belts yet to project the margin. We go in with great expectations, but we've never [for the plus or the minus] hit exactly what we thought.

是的，我的意思是，它應該這樣追踪。我們肯定會變得更好。 e-Boost 的問題是全新的，所以就我們而言，存在一些失誤。每一件都是定制的。對於如何給這些東西定價，並沒有一個模型。到目前為止，它已經遍布各處，你知道嗎？很好，有時比預期好，有時又比預期更差。我們還沒有足夠的單位來預測利潤。我們帶著很大的期望進入，但我們從來沒有[無論是正負]完全達到我們的想法。

Yeah, yeah. No, that's right, that's right. On the e-Boost, you identified these new markets in airlines, mining, construction, eVTOL. Do you have leads into this, or are you already receiving orders from these sectors?

是啊是啊。不，沒錯，沒錯。在 e-Boost 上，您確定了航空、採礦、建築、電動垂直起降領域的這些新市場。您是否有這方面的線索，或者您是否已經收到來自這些部門的訂單？

We haven't received any orders from those segments, but we are in serious discussions with all of them. These are segments that I didn't know anything about months ago. These emerged, and through the hard work of Geo and his team, and through getting the proper word out and trying to make e-Boost synonymous with the mobile charging solution, that's how these opportunities are coming our way.

我們尚未收到這些部門的任何訂單，但我們正在與所有部門進行認真的討論。這些是幾個月前我一無所知的片段。這些都出現了，通過 Geo 和他的團隊的辛勤工作，通過正確的宣傳並努力使 e-Boost 成為移動充電解決方案的代名詞，這些機會就是這樣來到我們身邊的。

Understood. In terms of capacity and also some of the product development for e-Boost, is there any additional incremental CapEx and OpEx, R&D dollars expected in the second half?

明白了。在產能以及 e-Boost 的一些產品開發方面，下半年預計會有額外的資本支出和運營支出、研發資金增量嗎？

No, we're hopefully spending less on R&D on e-Boost and more towards capital expenditures that expand the actual capacity for e-Boost because we're coming to the limits. This year, we'll test the limits of what we need to deliver in Minneapolis. So in order for that business to really grow, we just physically can't do it. I don't think it's going to be -- we're not doing heavy work. So I don't think that -- we don't have a budget for it, but it should not be outside our reach.

不，我們希望減少 e-Boost 的研發支出，而更多地用於擴大 e-Boost 實際容量的資本支出，因為我們即將達到極限。今年，我們將測試我們在明尼阿波利斯需要提供的服務的極限。因此，為了讓該業務真正增長，我們在身體上無法做到這一點。我認為不會——我們不會做繁重的工作。所以我不認為——我們沒有這方面的預算，但它不應該超出我們的能力範圍。

And in the case of E-Bloc, each year, we think we're at statistical 100. We're trying to do everything possible to enhance and be more efficient in the current facility in Los Angeles, because the operating -- we're getting the benefit now of the fixed overhead and so forth. And just to expand physically and lose some of that advantage from a profitability, I'm [allowed] to do that right away.

就 E-Bloc 而言，我們每年都認為自己在統計數據上處於第 100 名。我們正在盡一切可能增強洛杉磯現有設施並提高其效率，因為運營 - 我們'現在我們可以從固定開銷等中受益。只是為了擴大規模並失去一些盈利優勢，我[被允許]立即這樣做。

Understood. And then this last one on the SG&A expense, GAAP expense side. In 2022, we saw this stock-based comp in 2Q being higher, and then 3Q, 4Q were again normalized. Should we expect the same cadence of stock-based comp for the second half (multiple speakers)

明白了。最後一項是 SG&A 費用，即 GAAP 費用。 2022 年，我們看到第二季度的股票比較較高，然後第三季度、第四季度再次正常化。我們是否應該期待下半年基於股票的比較同樣的節奏（多個發言者）

I'm not expecting it. So I guess the answer is no. It was done -- again, it's all fully disclosed. Last year was an arrangement we made to keep our CFO incentivized to stay with us for the long term. And I was granted a stock grant by the Board a couple of months ago, and that manifested itself in the second quarter. So I don't -- we don't know of any other awards.

我並不期待它。所以我想答案是否定的。它已經完成了——再次，一切都被完全披露了。去年，我們做出了一項安排，以激勵首席財務官長期留在我們身邊。幾個月前，董事會向我授予了股票授予權，這在第二季度就得到了體現。所以我不知道——我們不知道還有其他獎項。

Yeah, yeah. So OpEx on the GAAP basis will be coming down in the second half?

是啊是啊。那麼按照 GAAP 計算的運營支出將在下半年下降？

Correct.

正確的。

(Operator Instructions) Scott Weiss, [Semical Capital].

（操作員說明）Scott Weiss，[Semical Capital]。

Congrats on the great quarter. Well done. I have one question on the demand side. You talked about all these newer opportunities and new verticals. Is there something that's happened in the last quarter, two quarters that has caused this inflection that you are seeing in demand? And then related to that, which vertical are you most excited about as you look out over the next 12 to 18 months?

祝賀這個偉大的季度。做得好。我有一個關於需求方面的問題。您談到了所有這些新的機會和新的垂直領域。上一季度、前兩個季度是否發生了一些事情導致了您所看到的需求變化？與此相關的是，在您展望未來 12 到 18 個月時，您對哪個垂直行業最感興趣？

Yes. So I mean, we still think of the business in two parts. Both are experiencing strong demand. So on the E-Bloc side, the demand -- the big markets, I think I flagged them, that we expect to get greater volume and profit from are water and data centers. That's where we see a match to what's going on with distributed generation and people that are taking their power needs extremely seriously on every level. On the e-Boost side, what's really going to drive it in the next year or so is still going to be the traditional mobile -- I mean, [it's] traditional, it's not traditional, but the initial thought, the reasons we launched e-Boost, which is going to be cars, buses, and trucks, those electric offerings.

是的。所以我的意思是，我們仍然將業務分為兩部分。兩者都面臨著強勁的需求。因此，在 E-Bloc 方面，我們期望從水和數據中心獲得更大的容量和利潤，我想我已經標記了這些大市場的需求。這就是我們看到分佈式發電的情況與人們在各個層面上都極其認真地對待電力需求的情況相匹配的地方。在 e-Boost 方面，在未來一年左右真正推動它發展的仍然是傳統移動設備——我的意思是，它是傳統的，它不是傳統的，但最初的想法，我們推出的原因e-Boost ，這將是汽車、公共汽車和卡車等電動產品。

But there is a push, and I don't think we will get one order from an airline in 2023, or maybe not even for most of 2024, as their transition to electric is going to definitely take them longer. But it's pushing against the fence and they're taking it very seriously. They won't make that move as quickly as the vehicle market yet, but we see this kind of as a long tailwind. [I want to] believe that construction equipment's going to go this way, but it is. Is it going to do it next year? It's not going to do it next year, but it is going to make this transition over the next several years.

但有一個推動力，我認為我們不會在 2023 年收到航空公司的訂單，甚至可能在 2024 年的大部分時間都不會收到，因為他們向電動的過渡肯定會花費更長的時間。但它正在挑戰圍欄，他們正在非常認真地對待它。他們還不會像汽車市場那樣迅速採取行動，但我們認為這是一個長期的推動力。 [我想]相信建築設備會朝這個方向發展，但事實確實如此。明年還會做嗎？它不會在明年這樣做，但它將在未來幾年內實現這一轉變。

Can you dig into the data center side on E-Bloc for a second? Going back, say, a couple of years, were data centers using this kind of technology? And what inning are we in in penetrating the data centers, and who else is providing this technology into data center market besides you?

您能深入了解一下 E-Bloc 的數據中心方面嗎？回想幾年前，數據中心是否使用過這種技術？我們在數據中心領域的滲透正處於哪一個階段？除了你們之外，還有誰在向數據中心市場提供這項技術？

Yeah. The technology exists. Who's doing it in a compact, simple structure that is proven to work in critical applications where there is no room for error, that I can't answer. As they get away from thinking of just regular power from the grid and backup power from diesel sets, as they start integrating other power sources into what they are doing for a variety of reasons, we are hoping that this first project really serves as our planting the flag in that beach.

是的。這項技術是存在的。誰在以緊湊、簡單的結構實現這一點，並被證明可以在沒有出錯空間的關鍵應用中工作，我無法回答。當他們不再考慮僅使用電網的常規電源和柴油機的備用電源時，當他們出於各種原因開始將其他電源整合到他們正在做的事情中時，我們希望第一個項目真正成為我們的種植基地那個海灘上的旗幟。

Here it is, and it works. Everybody wants a seat. So what's going to happen? They went away from diesel, they are using gas, they are using -- whatever this particular user. They're using a combination of several sources that everything switched in nanoseconds. Was there any failure? Was there any this? How was the service? I think that's -- then they don't have a choice after that. They don't want to be people that are using diesel when they don't have to.

它就在這裡，並且有效。每個人都想要一個座位。那麼會發生什麼呢？他們不再使用柴油，而是使用天然氣，無論這個特定用戶如何。他們使用了多個源的組合，一切都在納秒內切換。有沒有失敗的地方？有這個嗎？服務怎麼樣？我認為那之後他們就別無選擇了。他們不想成為不必要時使用柴油的人。

Okay. Great. Thank you. Appreciate it.

好的。偉大的。謝謝。欣賞它。

Alright, Scott. See you in a few weeks in Chicago.

好吧，斯科特。幾週後在芝加哥見。

David Kreinberg, Globis Capital.

大衛·克林伯格 (David Kreinberg)，Globis Capital。

Hi, good afternoon. Congratulations on the fantastic quarter. Just a quick question. The [locked] retailer that you had last year, I think it was $12 million of revenues, is any revenues expected from them in the guidance this year?

嗨，下午好。祝賀這個精彩的季度。只是一個簡單的問題。去年你擁有的[鎖定]零售商，我認為其收入為 1200 萬美元，今年的指導中預計他們會帶來任何收入嗎？

No. We went out without any expected revenue from them.

不，我們沒有從他們那裡得到任何預期收入。

Right. So if I look at last year, I think $12 million out of your $27 million was from that one customer. So if I back that out without them, you were actually going from $15 million -- you are almost tripling the business ex that one customer this year. Is that right?

正確的。因此，如果我看看去年，我認為 2700 萬美元中的 1200 萬美元來自該客戶。因此，如果我在沒有他們的情況下支持這一點，那麼您實際上要花費 1500 萬美元——您今年的業務幾乎是前一位客戶的三倍。是對的嗎？

Almost 100%, right? Some of it hungover into the first quarter [of this] year.

幾乎100%，對吧？其中一些問題一直持續到今年第一季度。

Okay. So there is a little bit of revenues in that.

好的。所以這裡面有一點收入。

Yeah, there is a little bit of this year, correct. But then (multiple speakers)

是的，今年有一點，對。但後來（多位發言者）

Go ahead, sorry.

繼續吧，抱歉。

The potential is, as we have said, they have targeted almost 500 stores, we've delivered 63. I can't speak if anything else is going on, but I'm expecting hopefully some more good news from them sometime this year, which would mean that we would deliver it sometime in 2024. But I don't have anything in my hand today to announce.

正如我們所說，潛力是，他們瞄準了近 500 家商店，我們已經交付了 63 家。我不能說是否還有其他事情發生，但我希望今年某個時候他們能帶來更多好消息，這意味著我們將在2024 年的某個時候交付。但我今天沒有任何消息可以宣布。

Okay, great. Congratulations again.

好的，太好了。再次恭喜。

Thank you, David.

謝謝你，大衛。

This concludes the question and answer session. I'd like to turn the conference back over to Nathan Mazurek for any closing remarks.

問答環節到此結束。我想將會議轉回內森·馬祖雷克（Nathan Mazurek）發表閉幕詞。

Thank you, operator. Thank you all for your time and support, and we look forward to updating you again on our next call.

謝謝你，接線員。感謝大家的時間和支持，我們期待在下次電話會議上再次向您通報最新情況。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。