Pixelworks Inc (PXLW) 2022 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Pixelworks, Inc. Third Quarter 2022 Earnings Conference Call. I will be your operator for today's call. (Operator Instructions) This conference call is being recorded for replay purposes.

女士們先生們，美好的一天，歡迎來到 Pixelworks, Inc. 2022 年第三季度收益電話會議。我將是您今天電話的接線員。 （操作員說明）正在錄製此電話會議以供重播。

I would now like to turn the call over to Brett Perry of the Shelton Group Investor Relations.

我現在想把電話轉給謝爾頓集團投資者關係部的布雷特佩里。

Thank you, Andrew. And good afternoon and thank you for joining us for today's call. With me on the call are Pixelworks' President and CEO, Todd DeBonis; and Chief Financial Officer, Haley Aman. The purpose of today's call is to supplement the information provided in Pixelworks' press release issued earlier today announcing the company's financial results for the third quarter of 2022. Before we begin, I'd like to remind you that various remarks that we make on this call, including those about projected future financial results, economic and market trends and competitive position constitute forward-looking statements. These forward-looking statements and all other statements made on this call that are not historical facts are subject to a number of risks and uncertainties that may cause actual results to differ materially.

謝謝你，安德魯。下午好，感謝您加入我們今天的電話會議。和我一起通話的是 Pixelworks 的總裁兼首席執行官 Todd DeBonis；和首席財務官 Haley Aman。今天電話會議的目的是補充 Pixelworks 今天早些時候發布的新聞稿中提供的信息，該新聞稿宣布了公司 2022 年第三季度的財務業績。在我們開始之前，我想提醒您，我們就此發表的各種評論包括那些關於預測未來財務結果、經濟和市場趨勢以及競爭地位的預測構成前瞻性陳述。這些前瞻性陳述和在本次電話會議上做出的所有其他非歷史事實的陳述都受到許多風險和不確定性的影響，這些風險和不確定性可能導致實際結果存在重大差異。

All forward-looking statements are based on the company's beliefs as of today, Monday, November 7, 2022. The company undertakes no obligation to update any such statements to reflect events or circumstances occurring after today. Please refer to today's press release, our annual report on Form 10-K for the year ended December 31, 2021 and subsequent SEC filings for a description of factors that could cause forward-looking statements to differ materially from actual results. Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms, including gross margin, operating expenses, net loss and net loss per share. Non-GAAP measures exclude amortization of acquired intangible assets and stock-based compensation expense.

所有前瞻性陳述均基於公司截至 2022 年 11 月 7 日星期一的信念。公司不承擔更新任何此類陳述以反映今天之後發生的事件或情況的義務。請參閱今天的新聞稿、我們截至 2021 年 12 月 31 日止年度的 10-K 表格年度報告以及隨後提交給美國證券交易委員會的文件，了解可能導致前瞻性陳述與實際結果存在重大差異的因素說明。此外，公司在本次電話會議期間的新聞稿和管理層聲明將包括以 GAAP 和非 GAAP 條款討論某些措施和財務信息，包括毛利率、運營費用、淨虧損和每股淨虧損。非 GAAP 措施不包括所收購無形資產的攤銷和基於股票的補償費用。

The company uses these non-GAAP measures internally to assess operating performance. We believe these non-GAAP measures provide a meaningful perspective on core operating results and underlying cash flow dynamics. We caution investors to consider these measures in addition to and not as a substitute for nor superior to the company's consolidated financial results as presented in accordance with GAAP. Also note throughout the company's press release and management statements during this conference call, we refer to net loss attributable to Pixelworks, Inc. as simply net loss. For additional details and reconciliations of GAAP to non-GAAP net loss and GAAP net loss to adjusted EBITDA, please refer to the company's press release issued earlier today.

公司在內部使用這些非 GAAP 指標來評估經營業績。我們相信，這些非 GAAP 指標為核心經營業績和潛在現金流動態提供了有意義的視角。我們提醒投資者考慮這些措施，而不是替代或優於公司根據 GAAP 提出的綜合財務業績。另請注意，在本次電話會議期間公司的新聞稿和管理層聲明中，我們將可歸因於 Pixelworks, Inc. 的淨虧損簡稱為淨虧損。有關 GAAP 與非 GAAP 淨虧損和 GAAP 淨虧損與調整後 EBITDA 的更多詳細信息和對賬，請參閱公司今天早些時候發布的新聞稿。

With that, it's my pleasure to turn the call over to Pixelworks' CEO, Todd. Please go ahead.

有了這個，我很高興將電話轉給 Pixelworks 的首席執行官托德。請繼續。

Thanks, Brett, and welcome to everyone joining us on today's call. Starting with our reported results, we delivered another solid quarter with revenue at the midpoint of guidance and growing 16% year-over-year during what continues to be a very challenging environment for the broader semiconductor industry. The Pixelworks' team has continued to execute despite the various macro challenges and this quarter marks the sixth consecutive quarter of double-digit year-over-year growth in both our mobile and projector businesses. Total revenue year-to-date is up 38% over the first 9 months of 2021 and we expect to close out 2022 with a full year growth in excess of 25%. Despite inflationary cost pressure throughout the year and our mobile growth contributing to an increasing portion of our total business, we've maintained healthy gross margins that were at 50% in the third quarter.

謝謝布雷特，歡迎大家參加今天的電話會議。從我們報告的結果開始，我們又交付了一個穩定的季度，收入處於指導的中點，並且在對更廣泛的半導體行業來說仍然是一個非常具有挑戰性的環境中同比增長 16%。儘管面臨各種宏觀挑戰，Pixelworks 的團隊仍繼續執行，本季度標誌著我們的移動和投影儀業務連續第六個季度實現兩位數的同比增長。年初至今的總收入在 2021 年前 9 個月增長了 38%，我們預計到 2022 年全年增長將超過 25%。儘管全年存在通貨膨脹成本壓力，而且我們的移動增長在我們的總業務中所佔比例越來越大，但我們在第三季度保持了 50% 的健康毛利率。

Additionally, both OpEx and EPS for the quarter were better than the midpoint of guidance reflecting our careful cost management and attention to improving bottom line results over time. In addition to our solid operating performance, during the quarter we closed a strategic investment in our Shanghai subsidiary at nearly 2x the valuation of the previous investment round. Our ability to execute this transaction in the current environment highlights the recognition and growing opportunity for our visual processing technology across Asia. It also enabled us to further strengthen our balance sheet in support of driving continuous momentum in our mobile business and our growth initiatives for the TrueCut Motion platform. Turning to updates on our primary end markets. As expected, mobile business was down sequentially from the record quarter revenue we posted in the second quarter primarily reflecting the start of a broadly acknowledged inventory correction in smartphones and weaker consumer demand in China.

此外，本季度的 OpEx 和 EPS 均好於指導的中點，反映出我們謹慎的成本管理和對隨著時間的推移改善底線結果的關注。除了穩健的經營業績外，本季度我們還完成了對上海子公司的戰略投資，估值幾乎是上一輪投資的兩倍。我們在當前環境下執行此交易的能力凸顯了我們的視覺處理技術在整個亞洲的認可度和不斷增長的機會。它還使我們能夠進一步加強我們的資產負債表，以支持推動我們移動業務的持續發展勢頭和我們針對 TrueCut Motion 平台的增長計劃。轉向我們主要終端市場的更新。正如預期的那樣，移動業務比我們在第二季度公佈的創紀錄的季度收入環比下降，這主要反映了廣泛承認的智能手機庫存調整的開始以及中國消費者需求的疲軟。

With that said, we maintain solid growth year-over-year with mobile revenue increasing more than 25%, which represented the seventh consecutive quarter of year-over-year growth and year-to-date our mobile revenue was up 44% compared to the first 9 months of 2021. Although the pace of new smartphone launches by mobile OEMs has slowed with various planned models either being pushed out or canceled as the industry focuses on working down excess component inventories, we have maintained a high level of engagement activity and continue to secure new design wins. As a result of the current market dynamics, we've experienced certain customer programs that were originally targeted for either our latest X7 processor instead incorporate our X5 Plus solution as part of the efforts to either reduce existing component inventory and/or minimize the total BoM cost of devices. While this defers the opportunity to penetrate the market with our X7 solutions (technical difficulty).

話雖如此，我們仍保持穩健的同比增長，移動收入增長超過 25%，這是連續第七個季度同比增長，今年迄今為止我們的移動收入增長了 44% 2021 年前 9 個月。儘管移動原始設備製造商推出新智能手機的速度有所放緩，由於行業專注於減少過剩的組件庫存，各種計劃中的型號要么被推出，要么被取消，但我們保持了高水平的參與活動和繼續獲得新的設計勝利。由於當前的市場動態，我們經歷了某些最初針對我們最新的 X7 處理器的客戶計劃，而不是納入我們的 X5 Plus 解決方案，作為減少現有組件庫存和/或最小化總 BoM 的努力的一部分設備成本。雖然這推遲了我們的 X7 解決方案進入市場的機會（技術難度）。

In October, Vivo launched the iQOO Neo 7 smartphone incorporating an upgraded Pixelworks X5 visual processor with the goal of delivering a more captivating gaming and video experience. Built on MediaTek's Dimensity 9000+ flagship 5G mobile platform, iQOO Neo 7 leverages our patented mimic technology with high efficiency interrelation algorithm to boost low frame rate gaming content to high frame rates of up to 120 frames per second. In addition to our MotionEngine now being adapted for optimal performance on 21 popular mobile games, we have worked closely with iQOO to incorporate a unique set of built-in visual effects and enhancement modes. These modes or gaining filters give the end user full autonomy to choose between preset visual styles or create their own custom filter by adjusting individual visual quality parameters.

10 月，Vivo 推出了 iQOO Neo 7 智能手機，該智能手機採用升級後的 Pixelworks X5 視覺處理器，旨在提供更迷人的遊戲和視頻體驗。 iQOO Neo 7 基於聯發科天璣 9000+ 旗艦 5G 移動平台，利用我們的專利模擬技術和高效關聯算法，將低幀率遊戲內容提升到高達每秒 120 幀的高幀率。除了我們的 MotionEngine 現已在 21 款熱門手機遊戲上獲得最佳性能外，我們還與 iQOO 密切合作，整合了一套獨特的內置視覺效果和增強模式。這些模式或增益濾鏡讓最終用戶可以完全自主地在預設視覺風格之間進行選擇，或者通過調整各個視覺質量參數來創建自己的自定義濾鏡。

Earlier in the quarter, we also added Sharp as a first time customer in mobile with Sharp's launch of the Aquos Sense7 Plus smartphone. Primarily targeted for consumers in Japan, this device based on Qualcomm Snapdragon 695 5G mobile platform features an impressive 6.4 inch IGZO OLED display with a 10-bit color depth and 1,300 nits peak brightness. As a result of our collaboration and the incorporation of our X5 Plus advanced visual processing solution, the Aquos Sense7 Plus enables 5x video frame insertion or up to 120 hertz and also supports variable refresh rate. Stepping back, year-to-date our mobile visual processor solutions have been incorporated in smartphones launched by 3 of the 4 Tier 1 OEMs and their respective affiliate brands in China, including Vivo, iQOO, Oppo, Realme, OnePlus and Honor. More broadly, our technology has enabled devices launched this year by ASUS and Sharp.

本季度早些時候，隨著夏普推出 Aquos Sense7 Plus 智能手機，我們還將夏普添加為移動領域的首次客戶。這款基於 Qualcomm Snapdragon 695 5G 移動平台的設備主要面向日本消費者，配備令人印象深刻的 6.4 英寸 IGZO OLED 顯示屏，具有 10 位色深和 1,300 尼特峰值亮度。由於我們的合作以及我們 X5 Plus 高級視覺處理解決方案的整合，Aquos Sense7 Plus 支持 5 倍視頻幀插入或高達 120 赫茲，並且還支持可變刷新率。退一步說，今年迄今為止，我們的移動視覺處理器解決方案已被納入 4 家一級 OEM 中的 3 家及其在中國各自的附屬品牌推出的智能手機，包括 Vivo、iQOO、Oppo、Realme、OnePlus 和 Honor。更廣泛地說，我們的技術已使華碩和夏普今年推出的設備成為可能。

Effectively all of these models by these OEM customers were either directly targeted at or marketed as supporting advanced visual quality for higher frame rate mobile gaming at low power. Together with our efforts to spearhead an engaged ecosystem for mobile gaming through ongoing collaboration with multiple leading game engine platforms and design studios, Pixelworks has distinguished itself within China as a technology leader in the area of mobile visual processing. This recognition is creating expanded opportunities for our technology both in the form of deeper strategic engagements with AP platform vendors and increasing inbound interest from IC design firms to license and incorporate certain Pixelworks' visual processing IP into their next generation solutions. We are currently in late stage discussions on multiple prospective license engagements. One point I'd like to emphasize about any perspective deal involving IP licensing is that they are carefully evaluated and subject to key engagement criteria.

實際上，這些 OEM 客戶的所有這些模型都是直接針對或作為支持高級視覺質量以低功耗實現更高幀速率的移動遊戲進行營銷的。通過與多個領先的遊戲引擎平台和設計工作室的持續合作，我們努力引領移動遊戲的互動生態系統，Pixelworks 已成為中國移動視覺處理領域的技術領導者。這種認可正在為我們的技術創造更多的機會，包括與 AP 平台供應商進行更深入的戰略合作，以及 IC 設計公司越來越有興趣許可某些 Pixelworks 的視覺處理 IP 並將其整合到他們的下一代解決方案中。我們目前正在就多個潛在許可協議進行後期討論。關於涉及知識產權許可的任何前景交易，我想強調的一點是，它們都經過仔細評估並符合關鍵的參與標準。

Most important, we will not pursue a licensing arrangement which erodes existing market potential that we could otherwise address it directly. In other words, we believe these current prospective IP deals are incremental opportunities to further monetize our technology. Turning to an update on our TrueCut Motion platform. We're excited to see the successful re-release of Lightstorm Entertainment's Avatar this September, the first globally available title remastered with TrueCut Motion. Our tools were used on every frame of this iconic movie allowing cinemas to play at 4K resolution in high dynamic range with the motion look tuned shot by shot to achieve exactly what the filmmaker intended. This re-release was seen in 47 markets worldwide achieving a gross box office sales of over $76 million, further cementing its position as the highest grossing movie of all time. We can now confidently say that we have a global TrueCut Motion cinema ecosystem in place.

最重要的是，我們不會尋求削弱現有市場潛力的許可安排，否則我們可以直接解決這個問題。換句話說，我們認為這些當前的潛在知識產權交易是進一步將我們的技術貨幣化的增量機會。轉向我們的 TrueCut Motion 平台的更新。我們很高興看到 Lightstorm Entertainment 的《阿凡達》於今年 9 月成功重新發行，這是全球首款使用 TrueCut Motion 重新製作的遊戲。我們的工具被用於這部標誌性電影的每一幀，讓電影院能夠在高動態範圍內以 4K 分辨率播放，並逐個鏡頭調整運動效果，以達到電影製作人的意圖。這部重新上映的電影在全球 47 個市場上映，票房總銷售額超過 7600 萬美元，進一步鞏固了其作為有史以來票房收入最高的電影的地位。我們現在可以自信地說，我們擁有一個全球性的 TrueCut Motion 電影生態系統。

As part of our previously announced multi license agreement with Lightstorm Entertainment, today we are actively working to replicate the same level of success with the re-release of Titanic, which is slated to hit theaters in early February. With growing momentum on the content side of the ecosystem, our team's focus is now on securing a global entertainment ecosystem. Shifting to the projector business. Revenue grew single digit sequentially and increased 10% year-over-year reflecting the highest quarterly revenue in more than 2 years. Although customers have more recently indicated some improvement in their ability to source other key projector components such as timing controllers and panels, the extremely tight supply environment and long lead times for components earlier in the year hampered projector OEMs from meeting total end demand. So far this demand is still present and our projector customers believe they will no longer be supply constrained by early next year.

作為我們之前宣布的與 Lightstorm Entertainment 簽訂的多項許可協議的一部分，今天我們正積極努力複製與重新發行的泰坦尼克號相同水平的成功，該電影定於 2 月初上映。隨著生態系統內容方面的增長勢頭，我們團隊現在的重點是確保全球娛樂生態系統的安全。轉向投影儀業務。收入環比增長個位數，同比增長 10%，創下 2 年多來最高的季度收入。儘管客戶最近表示他們採購其他關鍵投影儀組件（如時序控制器和麵板）的能力有所提高，但今年早些時候組件的供應環境極其緊張和較長的交貨期阻礙了投影儀 OEM 滿足總的終端需求。到目前為止，這種需求仍然存在，我們的投影儀客戶相信到明年初他們將不再受供應限制。

Also notable within the projector business, our co-development project with our largest projector customer remains on track and we expect to complete the development work on this next generation SOC by year-end. Upon completing the development work, we are entitled to receive a contract milestone payment, which will be recognized as a credit to R&D and meaningfully reduce our reported OpEx for the fourth quarter. As a reminder, we anticipate this new SOC to be in production in late 2023 and continue to ramp and support an increasing number of our lead customers projector models. Finally, I want to highlight a recent strategic action we took in our video delivery business to end of life of series of legacy ICs. As a reminder, we acquired this business as part of the ViXS Systems in the second half of 2017. It has been comprised of several transcoding ICs that we've primarily sold into consumer applications in Japan as well as OTA devices here in the US.

在投影儀業務中同樣值得注意的是，我們與最大的投影儀客戶的共同開發項目仍在進行中，我們預計將在年底前完成下一代 SOC 的開發工作。完成開發工作後，我們有權獲得合同里程碑付款，這將被視為研發的功勞，並顯著減少我們報告的第四季度運營支出。提醒一下，我們預計這款新的 SOC 將在 2023 年底投產，並繼續增加和支持我們越來越多的主要客戶投影儀型號。最後，我想強調一下我們最近在視頻傳輸業務中採取的一項戰略行動，以結束一系列傳統 IC 的生命週期。提醒一下，我們在 2017 年下半年收購了該業務作為 ViXS Systems 的一部分。它由幾個轉碼 IC 組成，我們主要銷售給日本的消費者應用程序以及美國的 OTA 設備。

Another area these transcoders are used is in video delivery infrastructure. These specific applications often require unique packaging and are generally much lower volume making them increasingly difficult to source and supply efficiently over time. As a result, we've implemented an EOL or end of life on certain portion of these transcoding ICs, which will result in a onetime increase in video delivery revenue in the fourth quarter. In summary, we are executing well in the face of many macro-related headwinds and continue to pursue strategic actions to mitigate the near-term impacts of the current environment. We have kept our inventory in check and at healthy levels. We have been prudent on costs and spending, including limiting any incremental new headcount. And we've added cash to the balance sheet at a very attractive valuation with minimal dilutive impact to shareholders.

使用這些轉碼器的另一個領域是視頻傳輸基礎設施。這些特定應用通常需要獨特的包裝，而且體積通常要小得多，因此隨著時間的推移，它們越來越難以有效地採購和供應。因此，我們已經對這些轉碼 IC 的某些部分實施了 EOL 或生命週期結束，這將導致第四季度視頻傳輸收入的一次性增長。總而言之，面對許多與宏觀相關的逆風，我們執行良好，並繼續採取戰略行動來減輕當前環境的近期影響。我們已將庫存控制在健康水平。我們一直對成本和支出持謹慎態度，包括限制任何新增員工人數。我們以極具吸引力的估值向資產負債表中增加了現金，對股東的稀釋影響最小。

During the quarter, we also completed the planned conversion to a joint stock corporation as part of our preparation for our Pixelworks Shanghai subsidiary for a local listing on the stock market in China. The structural change brings us 1 step closer to Pixelworks Shanghai beginning the CRSC's tutoring process and ultimately submitting its formal application for the logo. While we remain cautious about the near-term macro environment and consumer demand, we are in a strong financial position to fully execute on our growth initiatives and fully extend Pixelworks' technology leadership into our target end markets.

在本季度，我們還完成了向股份公司的轉換計劃，這是我們為 Pixelworks 上海子公司在中國股市上市做準備的一部分。結構變化使我們離 Pixelworks Shanghai 開始 CRSC 的輔導過程並最終提交正式的標識申請又近了一步。雖然我們對近期的宏觀環境和消費者需求保持謹慎，但我們的財務狀況良好，可以全面執行我們的增長計劃，並將 Pixelworks 的技術領先地位全面擴展到我們的目標終端市場。

With that, I'll hand the call to Haley to review the financials and provide our guidance for the fourth quarter. Haley?

有了這個，我會把電話轉給海莉來審查財務狀況並提供我們對第四季度的指導。海莉？

Thank you, Todd. Revenue for the third quarter of 2022 was $17.6 million, down 8% sequentially from $19.1 million in the second quarter and representing an increase of 16% from $15.2 million in the third quarter of 2021. Our top line results for the quarter were driven by a combination of continued strong year-over-year growth in our mobile business and sustained customer demand in our projector business with projector revenue once again reaching the highest quarterly level since the onset of the pandemic. The breakdown of revenue in the third quarter was as follows. Revenue from mobile increased more than 25% year-over-year to approximately $6 million, which represented just over 34% of total revenue in the third quarter. Similar to recent quarters, sales of our integrated circuits were the largest contributor to mobile revenue this quarter.

謝謝你，托德。 2022 年第三季度的收入為 1760 萬美元，比第二季度的 1910 萬美元環比下降 8%，比 2021 年第三季度的 1520 萬美元增長 16%。我們本季度的收入是由我們的移動業務持續強勁的同比增長和我們投影儀業務的持續客戶需求相結合，投影儀收入再次達到自大流行開始以來的最高季度水平。第三季度的收入明細如下。移動收入同比增長超過 25%，達到約 600 萬美元，佔第三季度總收入的 34% 以上。與最近幾個季度類似，我們的集成電路銷售額是本季度移動收入的最大貢獻者。

Revenue from projector was approximately $9.9 million increasing 5% sequentially and 10% year-over-year, again reflecting sustained customer demand. Video delivery revenue was approximately $1.6 million in the third quarter. Non-GAAP gross profit margin was 49.8% in the third quarter of 2022 compared to 49.3% in the second quarter of 2022 and compared to 53.1% in the third quarter of 2021. Non-GAAP operating expenses were $12.2 million in the third quarter compared to $12.9 million last quarter and $10.1 million in the third quarter of 2021. On a non-GAAP basis, third quarter 2022 net loss was $3.2 million or a loss of $0.06 per share compared to a net loss of $3.3 million or a loss of $0.06 per share in the prior quarter and a net loss of $2.2 million or a loss of $0.04 per share in the third quarter of 2021.

投影儀收入約為 990 萬美元，環比增長 5%，同比增長 10%，再次反映了持續的客戶需求。第三季度視頻傳輸收入約為 160 萬美元。 2022 年第三季度非美國通用會計準則毛利率為 49.8%，2022 年第二季度為 49.3%，2021 年第三季度為 53.1%。第三季度非美國通用會計準則運營費用為 1220 萬美元，相比之下上季度為 1290 萬美元，2021 年第三季度為 1010 萬美元。按非公認會計原則計算，2022 年第三季度淨虧損為 320 萬美元或每股虧損 0.06 美元，而淨虧損為 330 萬美元或每股虧損 0.06 美元上一季度每股淨虧損 220 萬美元或 2021 年第三季度每股虧損 0.04 美元。

Adjusted EBITDA for the third quarter of 2022 was a negative $2.1 million compared to a negative $2.4 million last quarter and a negative $1.6 million in the third quarter of 2021. Turning to the balance sheet. We ended the quarter with cash and cash equivalents of $57.6 million. The sequential increase primarily reflected $10.7 million in net proceeds from closing the transaction to transfer approximately 2.7% of Pixelworks' equity interest in our Shanghai subsidiary to new private equity investors. This increase was partially offset by [cash] and operating activities. Shifting to our current expectations and guidance for the fourth quarter of 2022. We anticipate fourth quarter total revenue to be in a range of between USD16 million and USD18 million. At the midpoint of this range, total revenue for the full year 2022 would represent annual gross of approximately 27.5% over 2021.

2022 年第三季度調整後的 EBITDA 為負 210 萬美元，上一季度為負 240 萬美元，2021 年第三季度為負 160 萬美元。轉向資產負債表。本季度末，我們的現金和現金等價物為 5760 萬美元。環比增長主要反映了完成將 Pixelworks 在我們上海子公司中約 2.7% 的股權轉讓給新的私募股權投資者的交易的淨收益 1,070 萬美元。這一增長被[現金]和經營活動部分抵消。轉向我們目前對 2022 年第四季度的預期和指導。我們預計第四季度總收入將在 1600 萬美元至 1800 萬美元之間。在此範圍的中點，2022 年全年的總收入將比 2021 年的年度總收入增加約 27.5%。

Non-GAAP gross profit margin in the fourth quarter is expected to be between 56% and 58%. The anticipated sequential increase reflects a more favorable product mix comprised of an expected increase in licensing revenue and an increase in revenue related to the end of life of certain legacy chips sold into the video delivery market. In terms of operating expenses in the fourth quarter, we currently expect to achieve a planned milestone related to our co-development agreement. As with previous treatment, the milestone payment will be recognized as a credit to R&D reducing our anticipated reported operating expenses in the fourth quarter. Taking this credit into account, we expect operating expenses to range between USD10 million and USD11 million on a non-GAAP basis. Lastly, we expect fourth quarter non-GAAP EPS to range between a loss of $0.04 per share and income of $0.01 per share.

第四季度非美國通用會計準則毛利率預計在 56% 至 58% 之間。預期的連續增長反映了更有利的產品組合，包括許可收入的預期增長和與銷售到視頻傳輸市場的某些傳統芯片的生命週期結束相關的收入增長。就第四季度的運營費用而言，我們目前預計將實現與我們的共同開發協議相關的計劃里程碑。與之前的處理方式一樣，里程碑付款將被確認為研發的貸項，減少了我們在第四季度的預期報告運營費用。考慮到這一點，我們預計按非美國通用會計準則計算，運營費用將在 1000 萬美元至 1100 萬美元之間。最後，我們預計第四季度非 GAAP 每股收益介於每股虧損 0.04 美元和每股收益 0.01 美元之間。

That completes our prepared remarks and we look forward to taking your questions. Operator, please proceed with the Q&A session. Thank you.

我們準備好的發言到此結束，我們期待著回答您的問題。接線員，請繼續進行問答環節。謝謝。

(Operator Instructions) Our first question comes from the line of Suji Desilva with ROTH Capital.

（操作員說明）我們的第一個問題來自 Suji Desilva 與 ROTH Capital 的對話。

I was hoping you could talk about the video delivery, how much revenue benefit you'll see from the last time buys in the fourth quarter?

我希望你能談談視頻交付，你會從第四季度最後一次購買中看到多少收入收益？

I can let Haley answer that, but I don't think I'm going to break out exactly how much it is, but she'll give you some range.

我可以讓 Haley 回答這個問題，但我不認為我會具體說出它是多少，但她會給你一些範圍。

Yes. I think for video delivery revenue in the fourth quarter, you can expect it to increase over 100%.

是的。我認為對於第四季度的視頻傳輸收入，你可以預期它會增長超過 100%。

Got it. And then with the -- congrats on the Shanghai equity valuation, it's certainly looks like it's going well. How much -- what percentage are you willing to potentially sell, Todd, pre-IPO that could be a source of funding for you guys as well to understand?

知道了。然後 - 祝賀上海股票估值，它看起來肯定進展順利。托德，你願意在首次公開募股前出售多少 - 多少百分比，這可能是你們理解的資金來源？

Well, I mean listen, so this particular financing was a unique financing. I mean 1 thing that we did with this financing is we actually sold our equity, Pixelworks Inc.'s ownership equity, to a new round of investors versus a dilutive event to all the investors in Pixelworks Shanghai and so the net cash from that financing actually all came back to the U.S. to Pixelworks, Inc. And so that was nice because we want to make sure not only do we have a great balance sheet, but we want to have a great balance sheet for both here in the U.S. but also for our China subsidiary and making sure that both are properly financed for their strategic goals. And so I would say we were very focused on that event and that event had to be completed before we completed the conversion of the joint stock corp and so it was a lot in that financing. We are now post conversion pre-IPO. It doesn't prevent you from doing financing. There's some limitations about doing financing in this particular window we're in pre-IPO. I haven't really thought about how much -- I know at the end how much we would still like to own after we finance the public offering and we will still control a large percentage of the subsidiary post financing.

好吧，我的意思是聽著，所以這個特別的融資是一個獨特的融資。我的意思是，我們在此次融資中所做的一件事是，我們實際上將我們的股權（Pixelworks Inc. 的所有權股權）出售給了新一輪投資者，而不是對 Pixelworks Shanghai 的所有投資者進行稀釋，因此該融資產生的淨現金實際上，所有這些都回到了美國 Pixelworks, Inc. 這很好，因為我們不僅要確保我們擁有良好的資產負債表，而且我們希望在美國和美國都有良好的資產負債表為我們的中國子公司提供資金，並確保兩家公司都為其戰略目標提供適當的資金。所以我想說我們非常關注那件事，那件事必須在我們完成股份公司的轉換之前完成，所以那次融資涉及很多。我們現在處於 IPO 前轉換後。它不會阻止您進行融資。在我們處於 IPO 前的這個特定窗口中進行融資有一些限制。我還沒有真正考慮過多少——我知道在我們為公開發行融資後我們最後還想擁有多少，我們仍然會控制子公司後融資的很大一部分。

Okay. That's helpful. And then looking ahead to the gross margin guidance for 4Q. What areas are the licensing benefit coming from? Is that from mobile or is that TrueCut you anticipate?

好的。這很有幫助。然後展望第四季度的毛利率指引。許可利益來自哪些領域？是來自移動設備還是您預期的 TrueCut？

We're not going to break that out at this time. As you know, we've had software licensing in the past, we've had some TrueCut licensing in the past and on the earnings call, I talked about IP licensing from our mobile group. We now have inbound interest for IC IP licensing. And all of those would still be rolled up underneath our mobile revenue. So we're not going to -- we may break out after the quarter is over how much of mobile revenue in total was licensing revenue, but I don't think we're going to break it out on an individual basis at this point, Suji.

我們現在不打算打破它。如您所知，我們過去有過軟件許可，我們過去有過一些 TrueCut 許可，在財報電話會議上，我談到了我們移動集團的 IP 許可。我們現在對 IC IP 許可有興趣。所有這些仍將匯總在我們的移動收入下。所以我們不會 - 我們可能會在本季度結束後打破許可收入的移動收入總額，但我認為此時我們不會單獨打破它, 蘇吉。

Okay. That's helpful color. Todd, last question on the I guess this more broader trend of new model designs being pushed out, X7 designs being swapped in for X5 to work that inventory. I'm curious on that. What might be the margin impact of having to kind of put X5s through versus having got the uplift from maybe newer X7 models? Any thoughts there would be helpful.

好的。這是有用的顏色。托德，關於我的最後一個問題，我猜這是推出新模型設計的更廣泛趨勢，X7 設計被換成 X5 以處理該庫存。我對此很好奇。必須通過 X5 與從更新的 X7 型號中獲得提升相比，對利潤率的影響可能是什麼？任何想法都會有所幫助。

I would say that where we were trending with that, we still had -- we've already launched an X7 phone with Realme and we have several new phones that have designed in the X7. They'll be launched in early 2023 or they're in the process of designing it. I look at where we are with pricing on those and where we are with X5 and there's not a big difference today in the gross margin profile.

我想說的是，我們的趨勢是，我們仍然有——我們已經推出了帶有 Realme 的 X7 手機，並且我們有幾款採用 X7 設計的新手機。它們將在 2023 年初推出，或者正在設計中。我看看我們在這些產品上的定價以及我們在 X5 上的位置，今天的毛利率狀況沒有太大差異。

And our next question comes from the line of Sam Peterman with Craig-Hallum.

我們的下一個問題來自 Sam Peterman 和 Craig-Hallum 的對話。

I wanted to ask first on mobile, I'm just kind of curious. A lot of companies in the industry are talking about maybe fourth quarter is kind of where mobile sales in China kind of bottom and maybe there could be a little bit of growth from the first and second quarter next year. So I guess I'm curious just broadly how you're seeing kind of inventory trends in China with phones. And then specifically to your mobile business, if I do the numbers, it looks like -- it seems like you're guiding to maybe mobile being down quarter-over-quarter in December and if you could kind of talk to where you see that segment in the fourth quarter, that'd be great too.

我想先在手機上問問，我只是有點好奇。業內很多公司都在談論，也許第四季度是中國移動銷售觸底的地方，明年第一季度和第二季度可能會有一點增長。所以我想我很好奇你是如何看待中國手機的庫存趨勢的。然後具體到你的移動業務，如果我做這些數字，看起來——你似乎在指導 12 月移動業務可能環比下降，如果你能談談你看到的地方第四季度的部分，那也很棒。

Okay. So first of all, I think I got -- the first part of the question, Sam, was specific to the mobile market, the end market. You are seeing -- I think you saw a slightly better sell-through in Q3 versus Q2, but in Q2, Shanghai was locked down for 80 days and there was quite a bit of fear in Shanghai. We expect that Q4 will be better than Q3 and then as you go into Q1, I think it somewhat depends on the position of the dynamic COVID policy and 0 COVID and if they start to come out of it, I think you could see the consumer come back. We still see -- there's certainly finished good inventory with the mobile OEMs there. But the bigger issue that they're having is it depends on the components. They went in the environment where we were highly constrained to trying to buffer inventory and order a lot of components. And so depending on the components, they have quite a bit of inventory that they have to pull through and they have to push it in the new model. So the bigger impact is if the OEM has made a decision that they don't want to write-off any inventory, then they will have to try to use the existing component inventory whether they be APs, image signal processors, displays, so on and so forth.

好的。所以首先，我想我明白了——Sam，問題的第一部分是針對移動市場，即終端市場。你看到 - 我認為你看到第三季度的銷售量比第二季度略好，但在第二季度，上海被封鎖了 80 天，上海有很多恐懼。我們預計第四季度會好於第三季度，然後當你進入第一季度時，我認為這在某種程度上取決於動態 COVID 政策和 0 COVID 的位置，如果它們開始出現，我想你可以看到消費者回來。我們仍然看到 - 那裡的移動原始設備製造商肯定已經完成了良好的庫存。但他們遇到的更大問題是它取決於組件。他們進入的環境中，我們受到高度限制，試圖緩衝庫存並訂購大量組件。因此，根據組件的不同，他們必須處理大量庫存，並且必須將其推入新模型。所以更大的影響是，如果 OEM 決定他們不想註銷任何庫存，那麼他們將不得不嘗試使用現有的組件庫存，無論它們是 AP、圖像信號處理器、顯示器等等等。

And so what it means is they're going to focus on putting models out in the market that probably don't have a lot of differentiation than previous models. In our particular case, our distributor really doesn't have much inventory, most of it has already been sold to the OEMs. One particular OEM has quite a bit of X5 inventory. That's why they're deciding to put many more models with X5 than they originally anticipated to burn off that inventory. But we have other customers that have no inventory and are migrating to X7 and our next generation solutions that we haven't announced in the market yet. So for us, I'm not really worried about an obsolete inventory issue. I'm worried about when the demand comes back and it comes back strong enough that the OEMs have burned through all their various inventory decisions and they can be more agile in how they market their new phones. Some OEMs will be there early, I think they may take market share. Some OEMs are going to take longer to get through it. But I don't believe that will be through it by the end of Q4. I believe the end of Q1 at the earliest, could maybe run to Q2 of next year.

所以這意味著他們將專注於將可能與以前的模型沒有太大區別的模型推向市場。在我們的特殊情況下，我們的經銷商確實沒有太多庫存，其中大部分已經賣給了 OEM。一個特定的 OEM 有相當多的 X5 庫存。這就是為什麼他們決定投放更多配備 X5 的型號，這比他們原先預計的要消耗掉該庫存。但我們還有其他沒有庫存的客戶正在遷移到 X7 和我們尚未在市場上宣布的下一代解決方案。所以對我們來說，我並不真正擔心過時的庫存問題。我擔心需求什麼時候會回來，而且會足夠強勁，以至於原始設備製造商已經完成了所有各種庫存決策，並且他們可以更靈活地營銷新手機。一些OEM會早到那裡，我認為他們可能會搶占市場份額。一些原始設備製造商將需要更長的時間才能通過它。但我認為這不會在第四季度末完成。我相信最早第一季度末，可能會跑到明年第二季度。

Okay. That's helpful color. I guess also on mobile, just broadly with X7, maybe some of those designs are being pushed out. But can you talk about, I guess, just what you're seeing from OEMs in terms of the enthusiasm for differentiating phones based on gaming performance? Is that focus shifting at all with kind of the macro being weak or are you still seeing just as strong of interest and engagement with kind of mobile gaming being a key factor?

好的。這是有用的顏色。我想在移動設備上也是如此，只是廣泛地使用 X7，也許其中一些設計正在被推出。但我猜你能談談你從 OEM 那裡看到的基於遊戲性能區分手機的熱情嗎？這種焦點是否隨著宏觀經濟的疲軟而完全轉移，或者你是否仍然認為對移動遊戲的興趣和參與度是一個關鍵因素？

Well, I think for the amount -- so these OEMs that we do business with do business globally. They don't do much business here in North America, they do business globally. Their largest position for all 4 of them is in China. Honor is probably the most concentrated in China, Xiaomi has the most business outside of China; but they all have a large chunk of business in China. China mobile gaming is still a very big area of differentiation that they want to put in the phones especially their premium ones. So I think there's still a big focus there. I think as we have made -- we've done very well with the ecosystem engagement. The content providers -- the mobile gaming content providers, leading mobile game content providers, they want to put out more immersive versions of their games for the mobile environment not just the desktop environment. And they see the same issues, the system level issues, the heat issues, the battery issues and the frame rate issues. And so they see us as a great opportunity for them to reach their goals on how to bring a more immersive AAA gaming experience to them. So the more content providing ecosystem we can create, the more pull and the more games that get announced supporting our platform, the more pull we'll get from OEMs with our solutions.

好吧，我認為數量 - 所以與我們有業務往來的這些原始設備製造商在全球開展業務。他們在北美這裡做的生意不多，他們在全球做生意。他們四個人最大的職位是在中國。榮耀可能最集中在中國，小米在中國以外的業務最多；但他們在中國都有很大一部分業務。中國手機遊戲仍然是一個非常大的差異化領域，他們希望將其放入手機中，尤其是高端手機。所以我認為那裡仍然有一個很大的重點。我認為正如我們所做的那樣——我們在生態系統參與方面做得很好。內容提供商——移動遊戲內容提供商，領先的移動遊戲內容提供商，他們希望為移動環境推出更具沉浸感的遊戲版本，而不僅僅是桌面環境。他們看到了同樣的問題，系統級問題、散熱問題、電池問題和幀率問題。因此，他們將我們視為一個很好的機會，可以幫助他們實現如何為他們帶來更身臨其境的 AAA 遊戲體驗的目標。因此，我們可以創建的內容提供生態系統越多，支持我們平台的遊戲就越多，我們從 OEM 那裡獲得的解決方案就越多。

Got you. If I can ask 1 more just quickly on TrueCut. You had a nice comment in the press release about it, but I'm curious just with Avatar having been released and getting to see some of the reviews of that. Can you talk about how I guess engagement in the industry has been since that, whether that's with other content creators or with streaming services or anything like that? Any follow there would be great?

明白了如果我可以在 TrueCut 上快速再問 1 個問題。你在新聞稿中對它發表了很好的評論，但我對《阿凡達》已經發布並看到一些評論感到好奇。你能談談我猜從那以後這個行業的參與度如何嗎，無論是與其他內容創作者還是與流媒體服務或類似的東西？有任何追隨者會很棒嗎？

We have been -- so twofold. There's 2 things going on with the team. We have a small team in TrueCut and they're very busy and they're busy twofold. One, they are focused. We try to enable third-parties with this announcement with Pixologic and we talked to others to leverage the capability of bringing TrueCut Motion grading to the content creators, but not just have to do it ourselves. With the first couple of engagements we've done, people have wanted to work with us directly. So all the work on Avatar was done with Pixelworks employees. All the work that's going on with Titanic and the other content that we're working on right now is with Pixelworks employees. So we have a very good team not that large, but it's extremely busy doing this content creation and making it look very big.

我們一直 - 如此雙重。團隊發生了兩件事。我們在 TrueCut 中有一個小團隊，他們非常忙，而且他們忙於雙重工作。第一，他們很專注。我們嘗試通過 Pixologic 發布此公告來支持第三方，並且我們與其他人交談以利用將 TrueCut Motion 分級功能帶給內容創作者的能力，而不僅僅是我們自己來做。在我們完成的前幾次合作中，人們希望直接與我們合作。所以《阿凡達》的所有工作都是由 Pixelworks 員工完成的。所有與泰坦尼克號有關的工作以及我們目前正在處理的其他內容都是與 Pixelworks 員工一起完成的。所以我們有一個非常優秀的團隊，雖然規模不大，但他們非常忙於進行內容創作並使其看起來非常龐大。

And then we have another team that's out trying to do demand creation and demand creation is twofold, one is we are engaged with -- there has been a lot of studio engagement since the release of Avatar. And then secondly, we're very focused on getting the streaming and device ecosystem up and running. Effectively what we've done is we created movies to look really good at high frame rate and 4K HDR in the theater. We have the ability to make that same content look really good for the home entertainment ecosystem. We stream to the home entertainment ecosystem. We have not licensed the ability for any of this content to be TrueCut Motion streamed yet. We are working very hard to do that.

然後我們有另一個團隊試圖創造需求，而需求創造是雙重的，一個是我們正在參與——自《阿凡達》發布以來，有很多工作室參與。其次，我們非常專注於啟動和運行流媒體和設備生態系統。實際上，我們所做的是，我們製作的電影在影院的高幀率和 4K HDR 下看起來真的很棒。我們有能力讓同樣的內容看起來非常適合家庭娛樂生態系統。我們流向家庭娛樂生態系統。我們尚未獲得對任何此類內容進行 TrueCut Motion 流式傳輸的許可。我們正在努力做到這一點。

And our next question comes from the line of Nicolas Doyle with Needham & Company.

我們的下一個問題來自 Nicolas Doyle 與 Needham & Company 的合作。

This is Nick Doyle on for Raji Gill. You just gave really good color on my earlier question on enhanced markets so thank you for that color. So my question would be if you could just talk a little bit more about the projector business, a couple moving pieces into next year. Customers won't be as supply constrained and then we have kind of the offset with the macro and environment dragging production, but then we have the new SOC coming maybe late end of the year. Just if you could give more color on the direction of that business. I think last quarter you mentioned that 4Q would be a flattening out or something along those lines. So any more detail there would be great.

這是 Raji Gill 的 Nick Doyle。你剛剛對我之前關於增強市場的問題給出了很好的顏色，所以謝謝你的顏色。所以我的問題是，你是否可以多談談投影儀業務，明年會有一些進展。客戶不會受到供應限制，然後我們會因宏觀和環境拖累生產而有所抵消，但隨後我們可能會在今年年底推出新的 SOC。如果您能為該業務的方向提供更多顏色就好了。我認為上個季度你提到 4Q 會趨於平緩或類似的東西。所以任何更多的細節都會很棒。

Yes. Nick, thanks for the question. So on projector, we normally have a seasonality where Q3 has usually been our highest in the past over the last 5 years and Q1 is the lowest mainly because most of our Japanese customers run off a fiscal year that ends in March and they try to lean their inventories, whatever they may be going, into the March quarter. We sort of bucked that seasonality this year. Going into next year, you might see it. It's somewhat being offset by they have this built-up demand for systems that they couldn't deliver. I mean if I looked at it combined, it's about -- if you look at how many devices we ship to our OEMs for a quarter, I think these guys have built-up demand that they can't address because of past shortages of at least a quarter's worth of shipment, right?

是的。尼克，謝謝你的提問。所以在投影機上，我們通常有一個季節性，在過去的 5 年中，第三季度通常是我們過去最高的，而第一季度是最低的，這主要是因為我們的大多數日本客戶在 3 月份結束的財政年度結束，他們試圖精簡他們的庫存，無論他們可能去哪裡，都會進入三月季度。今年我們有點反了季節性。進入明年，你可能會看到它。這在某種程度上被他們對無法交付的系統的累積需求所抵消。我的意思是，如果我把它結合起來看，那就是——如果你看看我們一個季度向 OEM 運送了多少設備，我認為這些人已經建立了需求，但由於過去的短缺，他們無法解決這些需求至少四分之一的運費，對吧？

That's about the severity of where their shortages cost them in the past. Not by us, we kept in front of it there. But by other component vendors predominantly T-con and panel vendors. We see that freeing up now. The question is and it's a good question with the macro environment softening, will that demand stay there until it gets fulfilled or will it erode as they come out of the supply challenges? We don't have an indicator of it yet, right? So far the demand has stayed strong. Even with 0 COVID in China, they've had a reasonable bounce back to the end markets for projector demand in China. The U.S. was very strong. Will that subside now with the economy going down? Europe was starting to slide mainly because of what's going on in Europe.

這就是他們過去因短缺而付出代價的嚴重程度。不是我們，我們一直在它前面。但其他組件供應商主要是 T-con 和麵板供應商。我們現在看到了釋放。問題是，隨著宏觀環境的軟化，這是一個很好的問題，需求會一直存在直到它得到滿足，還是會隨著供應挑戰的出現而減弱？我們還沒有它的指標，對吧？到目前為止，需求一直保持強勁。即使在中國 COVID 為 0 的情況下，他們對中國投影儀需求的終端市場也有合理的反彈。美國非常強大。隨著經濟下滑，這種情況現在會消退嗎？歐洲開始下滑主要是因為歐洲正在發生的事情。

So I don't -- that will sort of dictate how projector will look in the front half. It doesn't look doom and gloom. It could be good, but I think it's too early to tell to tell you the truth. And then the new SOC we'll be sampling the customer in the front half of the year, but it takes them a good -- they've got identified programs that they want to ramp quickly, high volume programs with this new SOC. But even if they move quickly, it will take them at least 6 months after we have approved silicon in their hands to start ramping those models. So the soonest you'd start to see us ramp that volume from the new SOC would be probably Q4, maybe a little bit in Q3, but most likely Q4 of 2023.

所以我不——這將決定投影儀在前半部分的外觀。它看起來並不悲觀。這可能很好，但我認為現在告訴你真相還為時過早。然後我們將在今年上半年對新的 SOC 對客戶進行抽樣，但這給他們帶來了好處——他們已經確定了他們想要通過這個新的 SOC 快速推出大量程序的程序。但即使他們行動迅速，在我們批准他們手中的芯片後，他們至少需要 6 個月的時間才能開始生產這些模型。因此，您最早開始看到我們從新的 SOC 開始增加產量可能是第四季度，可能在第三季度有一點，但最有可能是 2023 年第四季度。

Okay. That makes sense. And then just to nitpick just a little bit, I guess. The gross margins, they were up quarter-over-quarter, but they maybe -- or I guess the non-GAAP gross margins were just what 20 basis points below. I mean is that all mix?

好的。這就說得通了。然後只是挑剔一點，我猜。毛利率，他們環比上升，但他們可能 - 或者我猜非 GAAP 毛利率只是低於 20 個基點。我的意思是所有混合？

It's mix. The Q2 and Q3 what we had was we had strong mobile business on a comparative basis and in projector, we pretty much passed through all price increases that the industry has seen. The supply chain has seen price increases from fabs, from assembly, from test, you name it, right, several of them. In our projector and video delivery businesses, we passed all that on. In the mobile business we passed most of it on, but not all. There was -- we're trying to get a broader attach rate in mobile and we just didn't want to push it to a limit where it would inhibit somebody trying to use it. So the margins compress a bit in mobile and so the more mobile business we do, it is a downward compression on our combined gross margins.

是混音。在第二季度和第三季度，我們擁有強大的移動業務，在比較基礎上，在投影儀方面，我們幾乎經歷了行業所見的所有價格上漲。供應鏈已經看到來自晶圓廠、組裝、測試的價格上漲，你能說出它的名字，對，其中有幾個。在我們的投影儀和視頻傳輸業務中，我們傳承了所有這些。在移動業務中，我們傳遞了大部分，但不是全部。有 - 我們正在嘗試在移動設備中獲得更廣泛的附加率，我們只是不想將其推到限制有人嘗試使用它的限制。因此，移動業務的利潤率有所壓縮，因此我們開展的移動業務越多，我們的綜合毛利率就會下降。

We believe though that these price increases from the supply chain will start to stabilize. Whether they start to go down or not I think will depend on the demand curve that means some of the facilities need to be full. If they can stay full without lowering prices, they will do that. If they can't stay full without lowering prices, we will start to see prices come down on the supply. That should help us a bit in the mobile. But what's really going to help us on an aggregate basis is if we supplement with licensing in all the areas that we've talked about before so software licensing, TrueCut licensing and (inaudible).

不過，我們相信來自供應鏈的這些價格上漲將開始趨於穩定。我認為它們是否開始下降將取決於需求曲線，這意味著一些設施需要滿載。如果他們能在不降價的情況下保持滿載，他們就會這樣做。如果他們不降價就不能保持飽滿，我們將開始看到供應價格下降。這應該對我們在移動方面有所幫助。但是，如果我們在我們之前討論過的所有領域（如軟件許可、TrueCut 許可和（聽不清））中補充許可，那麼真正對我們總體上有幫助的是。

Thank you. I'll now hand the call back over to management for any closing remarks.

謝謝。我現在將把電話轉回給管理層，聽取任何結束語。

No. Thanks to the analysts for some good questions. Thanks to everybody else for attending. We'll keep you posted on our progress. Thank you for your time.

不，感謝分析師提出的一些好問題。感謝大家的出席。我們會及時通知您我們的進展。感謝您的時間。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating and you may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。