Pixelworks Inc (PXLW) 2023 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Pixelworks, Inc.'s second-quarter 2023 earnings conference call. I will be your operator for today's call. (Operator Instructions)

女士們、先生們，大家好！歡迎參加Pixelworks, Inc. 2023年第二季財報電話會議。今天的電話會議將由我主持。 （接線生指示）

This conference call is being recorded for replay purposes.

本次電話會議將會錄音以供重播。

I'd now like to turn the call over to Brett Perry with Shelton Group, Investor Relations. Please go ahead.

現在我想把電話轉給謝爾頓集團投資者關係部門的布雷特·佩里。請講。

Thank you, Benny. Good afternoon and thank you for joining us on 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 conference call is to supplement the information provided in Pixelworks press release issued earlier today announcing the company's financial results for the second quarter of 2023.

謝謝，Benny。下午好，感謝您參加今天的電話會議。與我一起參加電話會議的還有Pixelworks總裁兼執行長Todd DeBonis和財務長Haley Aman。今天電話會議的目的是補充Pixelworks今天稍早發布的2023年第二季財務業績新聞稿中提供的資訊。

Before we begin, I'd like to remind you that various remarks 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 different materially.

在開始之前，我想提醒您，我們在本次電話會議上所做的各種評論，包括關於未來財務表現預測、經濟和市場趨勢以及競爭地位的言論，均構成前瞻性陳述。這些前瞻性陳述以及本次電話會議上所做的所有其他非歷史事實的陳述，均受多種風險和不確定因素的影響，這些風險和不確定因素可能導致實際結果與預期有重大差異。

All forward-looking statements are based on the company's beliefs as of today, Tuesday, August 8, 2023. 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, the company's annual report on Form 10-K for the year ended December 31, 2022, and subsequent SEC filings for a description of factors that could cause forward-looking statements to differ materially from actual results.

所有前瞻性陳述均基於本公司截至今日（2023年8月8日，星期二）的信念。本公司不承擔更新任何此類陳述以反映今日之後發生的事件或情況的義務。請參閱今日的新聞稿、本公司截至2022年12月31日的10-K表格年度報告以及隨後提交給美國證券交易委員會（SEC）的文件，以了解可能導致前瞻性陳述與實際結果有重大差異的因素。

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 expense, net loss, and net loss per share. Non-GAAP measures exclude amortization of acquired intangible assets and stock-based compensation expense, as well as the tax effects of these non-GAAP adjustments.

此外，本公司在本次電話會議中的新聞稿和管理層聲明將討論某些指標和財務信息，這些指標和資訊將以公認會計準則 (GAAP) 和非公認會計準則 (Non-GAAP) 的形式呈現，包括毛利率、營業費用、淨虧損和每股淨虧損。非公認會計準則 (Non-GAAP) 指標不包括已收購無形資產的攤銷和股票薪資費用，以及這些非公認會計準則調整的稅務影響。

The company uses these non-GAAP measures internally to assess operating performance. We believe these non-GAAP measures provide a meaningful perspective into 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 US GAAP.

公司內部使用這些非公認會計準則指標來評估營運績效。我們認為，這些非公認會計準則指標能夠為了解核心營運績效和潛在現金流量動態提供有意義的視角。我們提醒投資者，這些指標應作為公司根據美國公認會計準則 (US GAAP) 呈現的合併財務業績的補充，而非替代或優於公司根據美國公認會計準則 (US GAAP) 呈現的合併財務業績。

Also note throughout the company's press release and management statements during this conference, we refer to net loss attributable to Pixelworks, Inc. as simply net loss. For additional details and a reconciliation 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.

另請注意，在本次會議期間，公司新聞稿和管理層聲明中，我們將歸屬於Pixelworks, Inc.的淨虧損簡稱為淨虧損。更多詳情以及GAAP淨虧損與非GAAP淨虧損以及GAAP淨虧損與調整後EBITDA的對賬，請參閱公司今天早些時候發布的新聞稿。

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

現在，我很高興將電話轉給Pixelworks執行長Todd DeBonis。請開始吧。

Thank you, Brett, and good afternoon and welcome to all of you joining us on today's call. As reported in today's press release, our top- and bottom-line results for the quarter were within guidance and reflected the rebound from a uniquely challenging first quarter. Our 37% sequential revenue growth in the second quarter was primarily driven by increased shipments of our mobile ICs, resulting in mobile revenue more than doubling and reaching a record 50% of our total revenue.

謝謝您，Brett，下午好，歡迎大家參加今天的電話會議。正如今天的新聞稿所述，我們本季的營收和淨利潤均在預期之內，並反映了從充滿挑戰的第一季反彈的跡象。第二季我們營收季增37%，這主要得益於行動IC出貨量的增加，這使得行動收入成長了一倍以上，占我們總收入的比例達到了創紀錄的50%。

Combined with a moderate sequential increase in home and enterprise attributable to stabilization in the projector market, Q2 marked the end of a smartphone inventory correction for Pixelworks, which gives us confidence in resuming our growth trajectory.

加上投影機市場趨於穩定，家庭和企業銷售季比溫和成長，第二季標誌著 Pixelworks 智慧型手機庫存調整的結束，這使我們對恢復成長軌跡充滿信心。

Before jumping into commentary on our end markets, I believe it would be helpful to first provide some brief high-level perspective on what we're generally expecting in terms of the rest of the year. First, we believe our sequential revenue growth in Q2 was not a one-quarter event.

在開始評論我們的終端市場之前，我認為有必要先簡要概述一下我們對今年剩餘時間的整體預期。首先，我們認為第二季營收的環比成長並非單季現象。

Even though it was coming off an unusually low base in the first quarter, we expect continued sequential growth in mobile for the balance of the year. Looking at our internal forecast for the second half of the year, which today is largely booked, we also anticipate mobile revenue to reflect significant topline growth over the first half of 2023.

儘管第一季基數異常低，但我們預計今年餘下時間移動業務仍將保持環比成長。根據我們對下半年的內部預測（目前已基本完成），我們也預期行動業務收入將在2023年上半年顯著成長。

With that as a background context, I'll start a review of our Mobile business. As widely reported, many component suppliers that sell into the smartphone market are continuing to experience weaker demand as distributors and smartphone OEMs continue to work down previously overbuilt inventories. This, combined with a more sluggish recovery than expected in end demand, has contributed to a prolonged market weakness, with prevailing consensus suggesting that current inventory correction in the smartphone supply chain will likely extend into next year.

以此為背景，我將開始回顧我們的行動業務。正如廣泛報導的那樣，由於分銷商和智慧型手機原始設備製造商（OEM）持續消化先前積壓的庫存，許多面向智慧型手機市場的零件供應商正面臨需求疲軟的局面。再加上終端需求復甦速度低於預期，導致市場長期疲軟。普遍的共識是，智慧型手機供應鏈目前的庫存調整可能會延續到明年。

As reflected by the sequential increase in mobile revenue for the second quarter and our current expectation for continued sequential growth in the second half, the trend we are experiencing is meaningfully different than those of the broader smartphone market.

正如第二季度行動收入的連續成長以及我們目前對下半年繼續連續成長的預期所反映的那樣，我們所經歷的趨勢與更廣泛的智慧型手機市場趨勢截然不同。

While Pixelworks certainly experienced the impact from a correction of mobile inventory during the fourth quarter of last year and the first quarter of this year, since April, we've effectively been completely clear on inventory of our mobile ICs both within the channel and held by current customers.

雖然Pixelworks確實受到了去年第四季和今年第一季行動庫存調整的影響，但自4月以來，我們已經完全清楚了通路內和現有客戶持有的行動IC庫存情況。

In fact, as mentioned on our prior call, we experienced multiple instances of mobile OEM customers requesting upside orders due to better than anticipated sell through on several smartphone models, incorporating our X5 and X7 visual processor ICs. This has continued into the current quarter as many of the programs we are participating on have experienced upside demand post-launch.

事實上，正如我們上次電話會議中所提到的，由於多款搭載我們X5和X7視覺處理器IC的智慧型手機的銷售量好於預期，我們多次收到行動OEM客戶提出的追加訂單請求。這種情況一直持續到本季度，因為我們參與的許多專案在產品發布後都經歷了需求的上升。

In addition to closely managing inventories, we sustained our aggressive mobile product and ecosystem development efforts throughout the downturn. A significant portion of these efforts have been centered around cultivating and leveraging a robust mobile gaming ecosystem. Our team has and continues to execute well in this strategy and our growth in an otherwise weak demand environment is evidence of our mobile strategy is working.

除了嚴密管理庫存外，在整個經濟低迷時期，我們持續積極推動行動產品和生態系統的開發。這些努力的很大一部分都集中在培育和利用強大的行動遊戲生態系統。我們的團隊一直並將繼續出色地執行這項策略，在原本疲軟的需求環境中，我們的成長證明了我們的行動策略正在發揮作用。

In July, we expanded upon our existing mobile ecosystem initiatives with the announcement of the formal introduction of Pixelworks IRX Gaming Experience branding, IRX referencing Image Rendering Accelerator. In a first for Pixelworks, our new IRX Gaming Experience brand directly targets smartphone end users. The brand itself is underpinned by Pixelworks extensive portfolio of proprietary mobile visual processing solutions coupled together with our unique and in-depth game tuning services.

今年7月，我們宣布正式推出Pixelworks IRX遊戲體驗品牌，進一步擴展了我們現有的行動生態系統計畫。 IRX指的是影像渲染加速器（Image Rendering Accelerator）。對Pixelworks而言，我們全新的IRX遊戲體驗品牌首次直接面對智慧型手機終端用戶。品牌本身以Pixelworks豐富的專有行動視覺處理解決方案組合以及我們獨特而深入的遊戲調優服務為基礎。

In conjunction with the IRX brand, we are also establishing and supporting IRX certification program that will comprise both of mobile device -- both a mobile device incorporating Pixelworks mobile visual processor, as well as a certified list of top mobile games that meet our minimum visual quality performance standards after tuning these games for play on IRX-certified smartphones.

結合 IRX 品牌，我們還將建立和支援 IRX 認證計劃，該計劃將涵蓋行動裝置——既包括搭載 Pixelworks 行動視覺處理器的行動設備，也包括經過認證的頂級行動遊戲列表，這些遊戲經過調整後可在 IRX 認證的智慧型手機上玩，符合我們的最低視覺品質效能標準。

Concurrent with the launch of IRX Gaming Experience brand, we published the initial pre-certified list of 20 top mobile games, which we will continue to expand overtime. We are also engaged with multiple OEM customers to incorporate the IRX device certification on their next-gen models.

在推出 IRX 遊戲體驗品牌的同時，我們發布了首批 20 款頂級手遊的預認證名單，並將持續擴展。我們也與多家 OEM 客戶接洽，希望將 IRX 設備認證納入其下一代機型。

In advance of the phone officially being launched, a press briefing held last week, the Redmi K60 Ultra smartphone was pre-announced in collaboration with MediaTek, Xiaomi, and Pixelworks Shanghai. This announcement with our fourth Tier 1 mobile customer, Xiaomi, also revealed that the Redmi K60 Ultra smartphone will be the first ever IRX-certified phone when it is officially launched later this month.

在Redmi K60 Ultra正式發布之前，我們在上週舉行了一場新聞發布會，提前發布了Redmi K60 Ultra智慧型手機，該手機由聯發科、小米和Pixelworks上海聯合發布。此次與我們的第四家一級行動客戶小米的聯合發布也透露，Redmi K60 Ultra智慧型手機將於本月稍後正式發布，並將成為首款獲得IRX認證的手機。

Also last week, OPPO-affiliate OnePlus previewed the scheduled launch of its OnePlus Ace 2 Pro flagship smartphone, reminding consumers of OnePlus's groundbreaking multi-year partnership with Pixelworks and featuring simultaneous super frame rate and super-resolution functionality enabled by Pixelworks' X7 visual processor.

此外，OPPO 旗下品牌一加 (OnePlus) 上週也預告了其旗艦智慧型手機 OnePlus Ace 2 Pro 的上市計劃，提醒消費者一加與 Pixelworks 建立的開創性多年合作夥伴關係，並採用 Pixelworks 的 X7 視覺處理器實現同步超幀率和超分辨率功能。

As additional mobile games and devices are certified, we believe the IRX Gaming Experience will contribute to higher consistency and quality mobile gaming for end users, while also bringing increased consumer awareness to Pixelworks and our content and OEM partners.

隨著越來越多的手機遊戲和裝置獲得認證，我們相信 IRX 遊戲體驗將為最終用戶帶來更高一致性和品質的手機遊戲，同時也提高消費者對 Pixelworks 以及我們的內容和 OEM 合作夥伴的認知度。

Turning to a brief update on our TrueCut Motion platform. TrueCut Motion has now been established as the only commercially validated, scalable, and filmmaker endorsed end-to-end solution for creating and delivering premium experience through the cinematic high-frame rate content.

簡單介紹一下我們的 TrueCut Motion 平台。 TrueCut Motion 現已成為唯一經過商業驗證、可擴展且獲得電影製作人認可的端到端解決方案，可透過影院級高幀率內容創作並提供優質體驗。

Today, though most of us are accustomed to new technology seemingly being adopted and proliferating overnight, the professional film industry is different. Despite all the technological advancements, including most device display systems capable of high-frame rate and high-resolution output, Hollywood-centric content production has continued to utilize 24-frames per second since the early commercialization of motion pictures.

如今，儘管我們大多數人都習慣了新技術似乎一夜之間就被採用和普及，但專業電影業卻截然不同。儘管技術不斷進步，包括大多數設備顯示系統都能夠支援高幀率和高解析度輸出，但自電影商業化初期以來，以好萊塢為中心的內容製作仍然沿用每秒 24 幀的幀率。

While there are multiple reasons behind the historical aversion to embracing higher-frame rates, there is growing evidence that the adoption of higher-frame rates is necessary to deliver high-resolution HDR content without artifacts.

儘管歷史上不願採用更高幀率的原因有很多，但越來越多的證據表明，採用更高幀率對於提供無偽影的高解析度 HDR 內容是必要的。

Most prominently, the future of motion pictures was foreshadowed by the theatrical release of James Cameron's Avatar: The Way of the Water, as well as re-release of Avatar and Titanic. All three of which were released globally to theaters in 4K HDR and featured cinematic high-frame rate enabled by Pixelworks TrueCut Motion platform. The box office success of these three titles instilled a new motivation among multiple industry participants to not only accept change, but also pivot towards increased releases of premium large format content.

最引人注目的是，詹姆斯·卡麥隆執導的《阿凡達：水之道》的院線發行，以及《阿凡達》和《泰坦尼克號》的重新上映，預示了電影的未來。這三部影片均以4K HDR格式在全球影院上映，並採用了Pixelworks TrueCut Motion平台支援的電影級高幀率。這三部影片的票房成功為許多產業參與者註入了新的動力，他們不僅要接受變革，更要轉向增加優質大格式內容的發行。

Specific to Pixelworks and our TrueCut Motion platform, we believe that we are making significant progress toward broader commercialization. I want to reemphasize that TrueCut Motion is a full ecosystem play and the opportunity for TrueCut Motion is bigger than any one customer or partner announcement. We do expect how -- we do however expect that we'll be making additional announcements before year end that will serve as tangible proof points of TrueCut Motion's value proposition and continued adoption.

具體到Pixelworks和我們的TrueCut Motion平台，我們相信我們正在朝著更廣泛的商業化方向取得重大進展。我想再次強調，TrueCut Motion是一個完整的生態系統，TrueCut Motion的機會遠大於任何單一客戶或合作夥伴的公告。我們確實期待——但我們確實期待在年底前發布更多公告，作為TrueCut Motion價值主張和持續應用的有力證明。

Continuing with an update on our Home and Enterprise business, which now predominantly consists of visual processor SoCs for the digital projector market. Revenue was up sequentially over the first quarter, however, continued to reflect subdued orders from the projector OEMs in response to macro-related uncertainty and softer end market demand, particularly in China.

繼續介紹我們的家庭和企業業務的最新情況，目前該業務主要包括面向數位投影機市場的視覺處理器SoC。第一季營收季增，但仍反映了投影機OEM廠商訂單的低迷，這主要源自於宏觀經濟不確定性以及終端市場需求疲軟（尤其是在中國）。

Additionally, our largest projector OEM customer is still working to normalize their internal inventories and lead times followed by the prolonged period of supply constraints and demand imbalances. With that said, order patterns have stabilized in recent months and we currently expect a slow recovery in customer demand during the second half as the ongoing inventory correction continues to run its course.

此外，我們最大的投影機OEM客戶仍在努力使其內部庫存和交貨週期正常化，此前供應緊張和需求失衡的情況持續存在。儘管如此，近幾個月的訂單模式已經趨於穩定，我們目前預計，隨著庫存調整的持續推進，下半年客戶需求將緩慢復甦。

During the second quarter, we delivered initial samples of our next-generation SoC as part of our co-development project with our largest projector customer. As a result, we recognized an anticipated milestone payment as an R&D credit that reduced total OpEx for the quarter. We continue to expect this new SoC to achieve volume production and contribute to overall revenue growth beginning in 2024.

第二季度，我們交付了下一代SoC的初始樣品，這是我們與最大投影機客戶共同開發專案的一部分。因此，我們將預期的里程碑付款確認為研發抵免，從而降低了本季的總營運支出。我們繼續預期這款全新SoC將實現量產，並從2024年開始為整體營收成長做出貢獻。

Finally, an update on the progress related to our Pixelworks Shanghai subsidiary and the status of our progress towards a listing on the STAR exchange. As briefly highlighted in our last call, we've retained CITIC Securities as our advisor and sponsor to support Pixelworks Shanghai throughout the application and underwriting process.

最後，我們來更新Pixelworks上海子公司的進度，以及我們在科創板上市的進度。正如我們上次電話會議中簡要提到的，我們已聘請中信證券作為我們的顧問和保薦人，在整個申請和承銷過程中為Pixelworks上海提供支援。

During the quarter, we submitted the application to formally begin the tutoring process, which is now well underway. The tutoring process is a prerequisite for any company seeking to apply for a new listing and is anticipated to take roughly two or three to four months. The team is concurrently compiling a draft of the prospectus and supporting the associated multi-year audit for the subsidiary. I'm very pleased with our continued preparation and advancement toward a local listing. And today, we remain on track to formally file before year end.

本季度，我們提交了正式啟動輔導流程的申請，目前進展順利。輔導流程是任何公司申請新上市的先決條件，預計大約需要兩到三到四個月的時間。團隊正同時編製招股說明書草案，並支援子公司相關的多年期審計。我對我們持續的準備和推進本地上市進程感到非常高興。目前，我們仍有望在年底前正式提交申請。

In conclusion, I continue to be inspired by our team's execution of strategic initiatives and our renewed growth and momentum and mobile in spite of the current environment. Although the ultimate recovery in the end market demand specifically in China is slower than most had anticipated, we are optimistic about our positioning and growth prospects for the second half of the year.

總而言之，儘管當前情況嚴峻，我們團隊對策略舉措的執行以及我們在行動領域重獲的成長動力依然激勵著我。儘管終端市場需求（尤其是中國市場）的最終復甦速度低於大多數人的預期，但我們對下半年的市場定位和成長前景仍持樂觀態度。

Specific to the third quarter, we are fully booked to achieve sequential topline growth coupled with expected improvement in gross margins as the projector market continues to gradually recover and we further ramp mobile shipments in support of customers' upcoming launches of new smartphone models.

具體到第三季度，隨著投影機市場繼續逐步復甦，我們已完全預訂實現連續的收入增長，同時毛利率也有望提高，並且我們進一步增加手機出貨量以支持客戶即將推出的新款智慧型手機。

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

有了這些，我會把電話交給 Haley，讓她審查財務狀況並為第三季提供指導。

Thank you, Todd. Revenue for the second quarter of 2023 increased 37% sequentially to $13.6 million from $10 million in the first quarter and was lower compared to $19.1 million in the second quarter of 2022. The sequential revenue growth in the second quarter was driven primarily by increased shipments into the mobile market.

謝謝你，Todd。 2023年第二季營收季增37%，從第一季的1,000萬美元增至1,360萬美元，低於2022年第二季的1,910萬美元。第二季營收季增主要得益於行動市場出貨量的增加。

The breakdown of revenue in the second quarter was as follows: revenue from Mobile increased by over 100% sequentially to approximately $6.9 million, which represented a record 50% of total revenue in the quarter. Home and Enterprise revenue was approximately $6.7 million, reflecting a small sequential increase compared to the prior quarter.

第二季營收組成如下：行動業務營收季增逾100%，達到約690萬美元，佔本季總營收的50%，創歷史新高。家庭及企業業務收入約670萬美元，較上季略有成長。

Within Home and Enterprise, sales into the projector market continued to represent approximately 90% of this business during the second quarter.

在家庭和企業領域，投影機市場的銷售額在第二季度仍佔該業務的約 90%。

Non-GAAP gross profit margin was 40.5% in the second quarter of 2023 compared to 44.1% in the first quarter of 2023, and 49.3% in the second quarter of 2022.

2023 年第二季非公認會計準則毛利率為 40.5%，而 2023 年第一季為 44.1%，2022 年第二季為 49.3%。

As discussed last quarter, the lower gross margin level in the second quarter reflected not only the shift in product mix toward mobile, but also previous increases in cost of materials that we chose not to immediately pass through to customers.

正如上個季度所討論的，第二季毛利率較低不僅反映了產品結構向行動端的轉變，也反映了先前材料成本的增加，而我們選擇不立即將這些增加轉嫁給客戶。

Beginning in the third quarter, we have begun passing through a portion of the higher cost of materials to customers. And as a result, we believe the second quarter marks the bottom for corporate gross margin and expect to realize incremental improvement in gross margins starting in the second half of this year.

從第三季開始，我們開始將部分上漲的材料成本轉嫁給客戶。因此，我們認為第二季標誌著公司毛利率觸底，並預計今年下半年毛利率將逐步改善。

Non-GAAP operating expenses were $10.7 million in the second quarter compared to $13.6 million in the prior quarter and $12.9 million in the second quarter of 2022. During the second quarter, we achieved another anticipated milestone related to our co-development agreement, resulting in a $1.9 million credit to R&D, which contributed to our reduced total operating expenses for the second quarter.

第二季非公認會計準則營運費用為 1,070 萬美元，而上一季為 1,360 萬美元，2022 年第二季為 1,290 萬美元。在第二季度，我們實現了與共同開發協議相關的另一個預期里程碑，為研發帶來了 190 萬美元的信貸，這有助於我們減少第二季度的總營運費用。

On a non-GAAP basis, second-quarter 2023 net loss was $4.8 million or a loss of $0.09 per share compared to a net loss of approximately $8.2 million or a loss of $0.15 per share in the prior quarter. And a net loss of $3.3 million or a loss of $0.06 per share in the year-ago quarter.

以非公認會計準則 (Non-GAAP) 計算，2023 年第二季淨虧損為 480 萬美元，即每股虧損 0.09 美元，而上一季淨虧損約為 820 萬美元，即每股虧損 0.15 美元。去年同期淨虧損為 330 萬美元，即每股虧損 0.06 美元。

Adjusted EBITDA for the second quarter of 2023 was a negative $4 million compared to a negative $7.8 million last quarter, and a negative $2.4 million in the second quarter of 2022.

2023 年第二季調整後 EBITDA 為負 400 萬美元，而上一季為負 780 萬美元，2022 年第二季為負 240 萬美元。

Turning to the balance sheet, we ended the quarter with cash and cash equivalents of $54.5 million and the company continued to have no outstanding debt.

談到資產負債表，本季末我們的現金和現金等價物為 5,450 萬美元，公司繼續沒有未償還債務。

Shifting to our current expectations and guidance for the third quarter of 2023. Based on current order trends and backlog, we anticipate third-quarter total revenue to be in a range of between $15 million and $17 million. At the midpoint of this range, total revenue would represent an increase of approximately 17% over the second quarter, driven by expected sequential growth in both our Mobile and Home and Enterprise end markets during the third quarter.

調整至我們目前對2023年第三季的預期與指引。根據目前的訂單趨勢和積壓訂單，我們預計第三季總收入將在1500萬美元至1700萬美元之間。以此區間的中間值計算，總收入將比第二季度增長約17%，這得益於我們第三季度行動端、家庭及企業端市場的預期環比增長。

In terms of gross profit margin, as discussed in my earlier remarks, we've recently begun passing through incrementally higher material costs to our customers. This, combined with higher unit volumes and increased overhead absorption from higher total revenue, we expect to drive a steady expansion of gross margin over the course of the next several quarters.

就毛利率而言，正如我之前所說，我們最近開始將逐漸增加的材料成本轉嫁給客戶。加之單位產量增加，以及總收入增加帶來的間接成本吸收增加，我們預計未來幾季毛利率將穩定提升。

Specific to the third quarter, we expect non-GAAP gross profit margin to be between 42% and 44%. We expect operating expenses in the third quarter to range between $13 million and $14 million on a non-GAAP basis.

具體到第三季度，我們預期非公認會計準則下的毛利率在42%至44%之間。我們預計第三季非公認會計準則下的營運費用將在1,300萬美元至1,400萬美元之間。

Keep in mind the operating expenses in the second quarter had the benefit of a milestone credit to R&D. And we do not expect a credit associated with the co-development agreement during the third quarter.

請記住，第二季的營運費用已受益於里程碑式的研發支出。我們預計第三季不會出現與聯合開發協議相關的支出。

Lastly, we expect third quarter non-GAAP EPS to range between a loss of $0.13 per share and a loss of $0.09 per share. That completes our prepared remarks and we look forward to taking your questions.

最後，我們預期第三季非公認會計準則每股盈餘將在每股虧損0.13美元至每股虧損0.09美元之間。我們的準備演講到此結束，期待您的提問。

Operator, you can proceed with the Q&A session. Thank you.

接線生，您可以繼續問答環節了。謝謝。

Thank you. (Operator Instructions)

謝謝。 （操作員指示）

Suji Desilva, ROTH Capital.

羅仕資本（ROTH Capital）的蘇吉·德席爾瓦（Suji Desilva）。

Hi, Todd. Hi, Haley. Congrats on the progress here. I know it's coming out of the bottom. Sorry if feel good there. So, Todd, the new fourth Tier 1, I'm just trying to understand, that ramp versus the other three you've already had and the initial ramp here, how it sizes versus the other three. And more importantly, your confidence that there's steady sequential growth given that sometimes the newer customers have an initial build and then kind of pause to see how the program goes before they move forward. So, any color that would be helpful.

嗨，Todd。嗨，Haley。恭喜你的進展。我知道它正在走出谷底。抱歉，感覺不太好。 Todd，對於新的第四個一級供應商，我只是想了解一下，相對於你已有的其他三個供應商，以及這裡的初始增長，它的規模與其他三個供應商相比如何。更重要的是，考慮到有時新客戶會進行初步建設，然後停下來看看專案進展如何，然後再繼續推進，你對持續穩定成長的信心如何。所以，任何具體細節都會有所幫助。

Okay. Well, so the customer is announced; it's Xiaomi. We can talk about them.

好的。好了，客戶公佈了，是小米。我們可以聊聊他們。

Yes. Sure.

是的，當然。

They had -- so let me just talk about what I feel are the differences between this product launch and previous product launches with other Tier 1s. First, it's a sizeable launch. I would say we've had some larger; we've had smaller. So, it's in the mid from a quantity perspective.

他們有…所以，我來談談我認為這次產品發表會與其他一級供應商以往產品發表會的差異。首先，這次發表會規模很大。我想說，我們之前有過規模更大的，也經歷過規模較小的。所以，從數量上看，這次發布會處於中等水平。

They did up their quantities twice pre-launch, so they feel they're going to get good demand for this. But the most notable difference between this launch and all the other launches is they fully embraced marketing the differentiation that Pixelworks visual processing brings them and fully embraced co-marketing the IRX ecosystem brand.

在產品發布前，他們曾兩次增加產量，因此他們相信市場需求會很好。但這次發布與其他所有產品最顯著的差異在於，他們充分利用了Pixelworks視覺處理技術帶來的差異化優勢，並全力支持IRX生態系統品牌的共同行銷。

And they did this in a large event last week where 70 local press attended and they effectively launched a three-way partnership between ourselves -- MediaTek is on this particular gaming platform their newest Dimensity. And all executives from MediaTek, Pixelworks and Xiaomi presented the output of this collaboration. And so, I would say that's the most notable both marketing and how they presented it.

上週，他們在一場大型活動中實現了這一點，70家當地媒體出席了此次活動，並有效地啟動了我們之間的三方合作——聯發科將在這個特定的遊戲平台上推出他們最新的Dimensity晶片。聯發科、Pixelworks和小米的所有主管都展現了這項合作的成果。所以，我想說，這是最引人注目的，無論是行銷還是他們的展示方式。

And if you go back and look at some of our previous Tier 1 launches, the customers tried to present this: our technology is their technology. We had some co-marketing, but they sort of buried it. They wanted to present it that their innovation was differentiating the market.

如果你回顧我們之前推出的一些一級供應商的產品，你會發現客戶試圖展現這一點：我們的技術就是他們的技術。我們之前有一些聯合行銷，但他們卻把它埋沒了。他們想展現的是，他們的創新正在引領市場差異化。

I think what you're going to see go forward is the market brand launches are going to acknowledge us and our ecosystem.

我認為，你將會看到市場品牌的發布將會認可我們和我們的生態系統。

Okay, Todd. That's helpful. And this IRX brand, I'm curious how this is going to be marketed going forward. It sounds like a could be a good way of pulling in incremental demand for your product. So, what are the ways it's going to be marketed?

好的，Todd。這很有幫助。關於IRX這個品牌，我很好奇它未來會如何行銷。聽起來這可能是吸引產品增量需求的好方法。那麼，它會採用哪些行銷方式呢？

Well, we're going to market it. Our OEM customers are going to market it. Our gaming vendors are going to market it. But we will be the predominant marketeer of the brand.

嗯，我們會負責行銷。我們的OEM客戶會負責行銷。我們的遊戲供應商也會負責行銷。但我們將是該品牌的主要行銷者。

But understand, right now, I'm talking to predominantly US investors. A big part of our marketing will be local marketing in China and Southeast Asia and targeted towards the end markets where these phones go.

但請您瞭解，目前我主要與美國投資者洽談。我們的行銷工作很大一部分將集中在中國和東南亞的本地市場，並瞄準這些手機的終端市場。

Okay. Last question for me on the smartphones. Todd, are you seeing a bifurcation of the demand that's recovering modestly here between the premium smartphones where I think Pixelworks is represented well versus the broader smartphone market? Is that part of the dynamic that's giving you more confidence maybe than the rest of the smartphone component peers you have? Thanks.

好的。關於智慧型手機的最後一個問題。 Todd，您是否看到高階智慧型手機市場（我認為Pixelworks在高階智慧型手機市場佔有一定份額）和更廣泛的智慧型手機市場的需求出現了分化？這種分化是否讓您比其他智慧型手機零件同行更有信心？謝謝。

Well, what's giving me confidence is backlog. But I do believe that the premium market held up much better than the low-cost market this year.

嗯，讓我有信心的是訂單積壓。但我確實相信，今年高端市場的表現比低成本市場好得多。

Okay. Thanks, Todd.

好的。謝謝，托德。

Thank you, Suji.

謝謝你，Suji。

Quinn Bolton, Needham & Company, LLC.

奎因·博爾頓，Needham & Company，LLC。

Hi, Todd. I wanted to follow up on Suji's question. Obviously, we've all gone through this sort of inventory correction in the China market. And you're sort of coming out of it much earlier than many others. And I guess I'm wondering, do you get pretty good sell through data for the models that you are in and do you have a way of tracking whether inventory of those handsets is pretty clean?

你好，Todd。我想跟進一下Suji的問題。顯然，我們都經歷過中國市場這種庫存調整。而你們比其他很多公司都更早走出了困境。我想知道，你們目前所銷售機型的銷售數據是否相當不錯？你們有辦法追蹤這些手機的庫存是否比較清空嗎？

Obviously, the Xiaomi is a new launch. But for the run rate business, I think you, you'd mentioned multiple customers, I believe, were upsiding orders in a quarter. So, it sounds like that activity was broader than Xiaomi. So just trying to get a sense of if you have a pretty good view into the sell through of those phone models.

顯然，小米是新推出的。但就運行率業務而言，我記得您提到過，我相信有多個客戶在一個季度內增加了訂單。所以，聽起來這方面的業務範圍比小米更廣。所以，我想了解一下，您是否對這些手機型號的銷售情況有相當清晰的了解。

Quinn, I wish I had a better view. Our view is through our customer dialogue, through executives at the customer dialogue. And then, when they come in and with short notice, start upsiding us on quantities, then I clearly get a picture.

Quinn，我希望我能有更清晰的視角。我們的觀點是透過客戶對話，透過客戶對話中的高階主管來獲取的。然後，當他們臨時通知我們，開始在數量上給我們施加壓力時，我就能清楚地了解情況了。

My take on this is I think in general the premium brands held up a little bit better. I think specifically the brands we were -- or the models we were in are doing well. But when I say doing well, I meant doing well to the OEMs' expectations for the model when we first started on it.

我的看法是，整體而言，高端品牌的表現略好。我認為，特別是我們之前營運的品牌，或者說我們營運的車型，表現都不錯。但我說的“表現好”，是指我們最初推出該車型時，完全符合原始設備製造商（OEM）對該車型的預期。

One of the things I've witnessed is if you go back to 2021, the forecast data and the order coverage that customers gave us for models going into 2021 was all inflated. I mean, we realized that today. We probably didn't realize it as much then.

我親眼目睹的一件事是，如果你回顧2021年，你會發現客戶給我們提供的2021年車型的預測數據和訂單覆蓋率都被誇大了。我的意思是，我們今天才意識到這一點。當時我們可能還沒有意識到這一點。

The behavior of the customers today is the opposite. They really -- I mean, in some cases, they bid off on 2x or 3x the amount of inventory they would digest of a particular component, not us, but other components in an entire year. They have gone over the last six to nine months of trying to burn through some of this old inventory.

如今客戶的行為恰恰相反。他們真的——我的意思是，在某些情況下，他們會競標某種組件（不是我們，而是其他組件）庫存的兩倍或三倍於他們一年的消化量。在過去的六到九個月裡，他們一直在努力消化這些舊庫存。

But this is the smartphone marketplace. And if you use old inventory too long, your product's not competitive. So, what they're doing is you will -- I think they're going to get towards the end of this. They won't burn through all these old inventories. They'll start just jettisoning it. They'll scrap it; they'll write it off their books and they'll be clean.

但這就是智慧型手機市場。如果你長期使用舊庫存，你的產品就會失去競爭力。所以，他們正在做的是——我認為他們會結束這一切。他們不會消耗掉所有這些舊庫存。他們會開始丟棄它們。他們會報廢它們；他們會把它們從帳簿上註銷，這樣他們就清白了。

But that exercise has left all of the ODMs in China extremely cautious. So, I think going into this year, the projections they gave us for some of these model launches was low. Because one thing that happened over the last three years, and I think it's definitely happened for us -- I don't know if it happened for all the suppliers -- going into it, China ODMs would not give component suppliers full coverage.

但這種做法讓中國所有的ODM都變得極為謹慎。所以，我認為，今年他們對某些車型的發布量預測偏低。因為過去三年發生了一件事，我認為我們的情況肯定如此——我不知道是否所有供應商的情況也是如此——中國ODM不會為零部件供應商提供全面的保障。

We might have a 26-week cycle time to build our products. We, going into the constraint period, everybody tightened up their requirements. Non-cancelable, non-returnable orders, full-cycle time lead times. I see other suppliers in more commodity-oriented aspects of the supply chain, they're backing off to where they're absorbing the cycle time and they don't get a lot of order coverage.

我們的產品生產週期可能有26週。進入約束期後，每個人都收緊了要求。訂單不可取消、不可退貨，交貨週期必須達到全週期。我看到其他供應商在供應鏈中更注重商品供應的環節，他們正在退縮，試圖消化週期，而且訂單覆蓋率很低。

We've retained it. So, if somebody comes in and wants to do a program with us, they're pretty much booked. You know, most of these programs get fully built out in nine months. They're almost fully booked for the entire program before we launch the phone, non-cancelable, non-returnable. Hopefully that gave you a little insight, Quinn.

我們保留了這些訂單。所以，如果有人來和我們合作，他們基本上都已經被預訂滿了。你知道，大多數這類項目在九個月內就能全部完成。在我們推出手機之前，他們的訂單幾乎已經全部預訂滿了，而且不可取消，不可退換。 Quinn，希望以上資訊能給你一些啟發。

Yeah. No, that was great. And then I guess maybe two for Haley. You guided margins to a range of 42% to 44%. How quickly or should we expect margins can get back to the kind of 48% to 50% level, especially as mobile becomes a greater part of the overall mix? Is 48% to 50% still something you see happening perhaps in 2024?

是的。不，那真是太好了。然後我想Haley可能還有兩個。您預計利潤率將在42%到44%之間。我們預期利潤率多久才能回到48%到50%的水平，尤其是在行動業務佔比越來越大的情況下？您認為到2024年利潤率還會達到48%到50%嗎？

Yeah. Actually in 2024, we're targeting to end the year with mid-50s for margin. So absolutely getting up to the 48%, 50%, but even further than that by the end of 2024.

是的。實際上，我們的目標是在2024年年底實現55%左右的利潤率。所以到2024年底，利潤率絕對要達到48%、50%，甚至更高。

Perfect. And then last from me. The NRE payments that offset R&D in the June quarter, you're not expecting a payment in Q3. But you said you'll -- that program ramps in 2024. Are there still additional NRE payments for milestones before that project completes and begins to ramp? Or was the second-quarter payment the last large NRE with that program?

太好了。最後我想問一下。您預計在第三季不會收到抵銷6月份研發支出的NRE付款。但您之前說過，該專案將在2024年實現量產。在該專案完成並開始量產之前，是否還會有額外的NRE付款用於里程碑專案？或者說，第二季的付款是該專案的最後一筆大額NRE付款嗎？

There is still one more NRE payment, which we currently expect to achieve in Q4.

還有一筆 NRE 付款，我們目前預計將在第四季度完成。

Similar size?

尺寸相似嗎？

No, a little smaller.

不，小一點。

Okay.

好的。

Not quite at 1.9. A little less than that.

不是 1.9，而是略低於 1.9。

Great. Okay. Thank you.

太好了。好的。謝謝。

Richard Shannon, Craig-Hallum Capital Group.

克雷格-哈勒姆資本集團的理查德·香農。

Hi, Todd, Haley, thanks for taking my questions as well. Maybe I'll start with a tactical question here just on a third-quarter guidance in terms of sales. You're talking about some nice sequential growth here. Any way you'd like to delineate whether there's a meaningful difference in growth rates between mobile and projector to get it to that midpoint?

嗨，Todd，Haley，也感謝你們回答我的問題。或許我可以先問一個關於第三季銷售預期的戰術性問題。你們說的環比成長不錯。請問你們能否解釋一下，行動裝置和投影機的成長率是否有顯著差異，才能達到這個中間值？

Haley, do you want to answer that question?

海莉，你想回答這個問題嗎？

Yeah. I would think about it both mobile and the home and enterprise are kind of contributing equally to that growth in Q3 compared to Q2.

是的。我認為，與第二季相比，第三季的行動、家庭和企業對成長的貢獻大致相同。

Okay. Good. That's good to see here in the context of increasing gross margins. So nice job there.

好的。很好。在毛利率不斷提高的背景下，這真是令人欣慰。幹得漂亮。

Todd, maybe a couple questions on IRX. I guess I'm just asking them both right off here. Just want to get your sense of breadth of acceptance across OEMs, the gaming studios, and even the gaming engines to the degree to they're important here. And then maybe you can talk a little bit about the cost of implementation, this branding exercise.

Todd，我想問幾個關於 IRX 的問題。我想我現在就直接問他們兩個。我只是想了解一下，原始設備製造商 (OEM)、遊戲工作室，甚至遊戲引擎的接受程度，以及它們在這裡的重要性。然後，或許您可以談談實施成本，以及這項品牌推廣活動的成本。

So, listen, this is something we've been thinking out about for a while. We've been in implementation mode for maybe three to five months, and it's in the early stages. So, you should see -- we expect to see much broader adoption. We expect to see everybody adopt it.

所以，聽著，這是我們思考了一段時間的事情。我們大概已經實施了三到五個月，目前還處於早期階段。所以，你應該可以看到——我們預計它將會得到更廣泛的採用。我們預計它將會得到所有人的認可。

And in that way, it gets across our ODM customers and models and across the games that we tune. And we definitely will see increased marketing costs, but we will leverage the ecosystems marketing costs as well.

透過這種方式，它就能傳達給我們的ODM客戶、模型以及我們調整的遊戲。我們的行銷成本肯定會增加，但我們也會利用生態系統的行銷成本。

Okay. To that last point, Todd, are you saying it's going to be barely noticeable or sort of noticeable impact on your OpEx going forward? Or am I even overstating it in that way?

好的。關於最後一點，Todd，您是說這對您未來的營運支出的影響幾乎不會察覺，還是會比較明顯？還是說我這樣說有點誇張？

I can tell you define noticeable. But we are definitely ramping up headcount in both the gaming ecosystem team, which is a technical team, and the outbound marketing communications team. If you're asking me outright, are we funding market development funds, today, we are not.

我可以告訴你「引人注目」的定義。但我們肯定會增加遊戲生態系統團隊（一個技術團隊）和對外行銷傳播團隊的員工數量。如果你直接問我，我們是否在為市場開發基金提供資金，那麼目前我們沒有。

Sounds like you're suggesting it might be a possibility down the road. Is that fair to think you're contemplating?

聽起來你暗示未來可能會有這種可能性。這麼說你正在考慮，合理嗎？

Well, so I really believe in communicating a common theme and brand around a differentiated experience to the consumers. We, in the hardware space, tend to -- we live in this world all the time. When you market it to consumers, we think they understand all of the acronyms, speeds and speeds that we live in. They don't.

嗯，所以我堅信圍繞著差異化體驗，向消費者傳達一個共同的主題和品牌。我們硬體產業的人，總是生活在這個世界。當你向消費者推銷產品時，我們以為他們了解我們身處其中的所有縮寫、速度和速度。但他們並不了解。

So, if we can get them to understand, they definitely -- I mean, mobile gaming is a -- they spend a lot of time. It's probably a top three use for mobile phones as far as daily.

所以，如果我們能讓他們明白，他們肯定會——我的意思是，手機遊戲——他們會花很多時間。就日常使用手機而言，它可能是手機的三大用途之一。

Yeah.

是的。

If they can understand the difference of experience of an IRX-branded ecosystem, meaning the game, the ODM, et cetera, and they notice the difference. They notice the difference in the look, the feel, the speed, the smoothness, and the power consumption.

如果他們能夠理解 IRX 品牌生態系統體驗的差異，包括遊戲、ODM 等等，他們就會注意到這些差異，包括外觀、手感、速度、流暢度和功耗方面的差異。

I mean, some of these games understand -- let me give you one example. There's a game called Genshin Impact that most of the OEMs in China will use to demonstrate the performance of their solution because it's a taxing game on the GPU.

我的意思是，有些遊戲是可以理解的──讓我舉個例子。有一款名為《原神》的遊戲，大多數中國OEM廠商都會用它來展示其解決方案的效能，因為這是一款對GPU要求很高的遊戲。

And if you try to render it in real time, in native mode on the most advanced Qualcomm or MediaTek GPU, you will be lucky to sustain 50 frames per second and play for maybe two hours before you burn through a rather large battery on one of these new phones if you're displaying it on one of the newer OLED displays.

如果您嘗試在最先進的 Qualcomm 或聯發科 GPU 上以原生模式即時渲染它，如果您在較新的 OLED 顯示器上顯示它，您將很幸運地維持每秒 50 幀並播放大約兩個小時，然後您就會在這些新手機上的一塊相當大的電池耗盡之前。

These same phones that we just launched, we render. So, we offload the GPU. It's now rendered at a lower frame rate, like 30 frames per second, at a lower resolution. We do post-processing; we render the game at 144 frames per second at full capability of the display that's there. In Xiaomi's case, I think it was a 1.5K display.

我們剛剛發布的這些手機也進行了渲染。也就是說，我們卸載了GPU。現在渲染的幀率更低，例如每秒30幀，解析度也更低。我們進行後製；我們以每秒144幀的速度渲染遊戲，充分利用現有的顯示器。小米的螢幕解析度我記得是1.5K。

And then we increase the ability for the user to play the game for up to three hours. If they just -- if you can quantify that differentiated experience with a brand, everybody benefits. The ODM benefits, the gaming manufacturers benefits, and the consumer benefits, and of course, Pixelworks will benefit.

然後，我們將用戶的遊戲時間延長至三小時。如果他們能夠量化品牌的差異化體驗，那麼每個人都會受益。 ODM、遊戲製造商、消費者，當然還有Pixelworks，都會受益。

So, to me, it's about bringing the benefit. You're asking me specific questions about: are we willing to spend money to build that brand and that recognition within the consumer marketplace? And we absolutely are. We're doing it today and we'll ramp up more as we see success.

所以，對我來說，關鍵在於帶來效益。你問我的具體問題是：我們是否願意投入資金打造這個品牌，並在消費者市場中提升知名度？我們絕對願意。我們現在就在做這件事，一旦看到成效，我們還會加大投入。

Okay, great. We look forward to seeing that happen here. A couple last questions from you and I'll jump on the line. I got a follow up on the answer on the gross margins from a little earlier.

好的，太好了。我們期待看到這一切發生。最後還有幾個問題，我會接通電話。我之前就毛利率的問題得到了後續的解答。

Haley, you were talking about a goal of gross margins in the mid-50s exiting next year. I would think everyone would assume that the mix of mobile will be noticeably higher than even it is today. With that, and correct me -- correct my assumption if I'm wrong, in the mobile, it tends to be a lesser mix for you and yet ramping from the low-40s up to the mid-50s to be a pretty impressive scenario. And I would assume that we're also excluding the potential for TrueCut contribution in there.

Haley，您之前說的毛利率目標是明年達到55%左右。我想大家都會認為行動業務的毛利率會比現在明顯更高。這麼說吧，如果我錯了，請糾正我。在行動領域，您的毛利率通常較低，但從45%出頭到55%左右的毛利率成長，這已經是一個相當令人印象深刻的前景了。而且我認為，我們也排除了TrueCut的潛在貢獻。

So, I wonder if you could help me understand and bridge between today and that mid-50s. How does that happen? Either a sense of volume or any other dynamics here is going to help the mix improve that much.

所以，我想知道您能否幫我理解並連結現在和50年代中期的音色。這是怎麼做到的？無論是音量感還是其他任何動態，都能幫助混音提升到如此高的水平。

Yeah. So, we will be increasing margins for mobile more than projector over that period -- coming from our growth business. And as individual processors are adopted, all of that kind of helps to get to that number that mid-50s.

是的。所以，在此期間，我們的行動業務利潤率將比投影機業務成長更多——這主要源自於我們的成長業務。隨著獨立處理器的普及，所有這些都有助於我們實現55%左右的利潤率。

And, Todd, feel free to jump in if you want to provide me more color on that.

托德，如果你想給我更多這方面的詳細信息，請隨時加入。

Let me just be clear for Richard's question. So, Richard, as we -- if you look at historically, our input costs went up quite a bit over the last two years, as did everybody that used (inaudible). Some of those input costs got passed forward to the customer, not all of them. And certainly not all of them with margin.

我先解釋一下理查德的問題。理查德，如果你回顧一下歷史，你會發現我們的投入成本在過去兩年裡上漲了不少，所有使用（聽不清楚）的人也是如此。其中一些投入成本轉嫁給了客戶，但並非全部。當然，也並非全部都帶有利潤。

So, we are now catching up to some of that activity as being settled down. It's part of it. But in mobile specifically, what is part of it is we've -- you're going to see us introduce a new visual processor publicly. The customers have been introduced over six months ago to it. They're already -- they're working on phones with it. That's beyond the X7.

所以，我們現在正在逐步推進一些活動，這只是其中的一部分。但具體到行動領域，其中一部分是——你們將會看到我們公開發布一款新的視覺處理器。六個多月前，客戶就已經了解這款處理器了。他們已經在用它開發手機了，這已經超越了X7。

And we made sure that the margin profile on that device was better than the previous device, being X7. And we are introducing yet another device in, I'd say, mid-2014 (sic - "2024"). It'll be our first 12 nanometer-based device. That's why you've seen -- so part of the reason why you've seen some of our OpEx R&D go up is we're focused on a 12-nanometer device versus 22 nanometer.

我們確保該裝置的裕度比之前的裝置 X7 更好。我們將在 2014 年中期（原文如此，即「2024 年」）推出另一款裝置。這將是我們首款基於 12 奈米製程的裝置。這就是為什麼您看到我們的營運支出研發成本上升的原因之一，是因為我們專注於 12 奈米裝置，而不是 22 奈米。

And the margin profile on that device is incrementally better than the device we're going to announce in a month. So as the adoption of our roadmap happens, we will see significant increase in margin profile for the mobile specific business.

而且這款設備的利潤率比我們一個月後即將發布的設備要高得多。因此，隨著我們路線圖的實施，我們將看到行動業務的利潤率顯著提升。

Okay. Excellent. That's great detail. Thanks for that, Todd. And the last one, I'll jump out of line here. TrueCut, you teased some announcements or at least an announcement before the end of the year about a tangible proof point of the ecosystem developing here.

好的。太棒了。非常詳細。謝謝你，Todd。最後一個問題，我想稍微跳一下。 TrueCut，你透露了一些公告，或至少在年底前發布一個公告，來證明這裡生態系統正在發展。

I'm wondering if you want to give us any clues as to what part of that ecosystem or suggest how should we think about what kind of events can happen here.

我想知道您是否願意為我們提供任何線索，讓我們了解該生態系統的哪個部分，或建議我們應該如何思考這裡可能發生什麼樣的事件。

I don't want to give too much clues. What I'll say is there are several things we're working on. Lightstorm has been a big advocate for using TrueCut technology and high-frame rate in general to deliver a unique experience to premium large-format theaters. And premium large-format theaters or all types of theaters, but I would say the most recognized ones for this audience on the call would be Dolby Cinema, IMAX, and in China there's something called Finity.

我不想透露太多資訊。我想說的是，我們正在進行幾項工作。 Lightstorm 一直大力倡導使用 TrueCut 技術和高幀率技術，為高階大尺寸影院提供獨特的體驗。高端大尺寸影院，或者說所有類型的影院，但我想說，在這次電話會議上，最受觀眾認可的應該是杜比影院 (Dolby Cinema)、IMAX，以及在中國的 Finity 影院。

And as you go to premium large-format theaters and you want to deliver high resolution 4K and high dynamic range in either 2D or 3D, but even more noticeable in 3D because of the contrast of brightness and the expanded resolution, artifacts are much more noticeable if you deliver it in 24 frames per second.

當您進入優質大格式影院並希望在 2D 或 3D 中提供高分辨率 4K 和高動態範圍時，但由於亮度對比度和擴展的分辨率，在 3D 中更加明顯，如果以每秒 24 幀的速度傳送，偽影會更加明顯。

If you go to 48, it's even more noticeable unless you do use our technology to do cinematic high-frame rate. And so, what we've seen is, we've seen other people -- other what we would call on the creative side -- want to take advantage of this technology to do a similar delivery of it.

如果幀率達到48幀，除非你使用我們的技術來實現電影級的高幀率，否則這種差異會更加明顯。所以，我們看到其他人——也就是我們所謂的創意人士——也想利用這項技術來實現類似的效果。

You've also seen premium large -- we've seen premium large-format technology leaders come to us and say, how do we get more content to our PLF theaters? So that might give you a little bit of color of where we've been spending a lot of time and energy. There's more than that; I just don't want to go into it.

您也看過高端大尺寸電影－我們也看過高端大尺寸電影技術的領導者來找我們，問我們怎麼能為PLF戲院提供更多內容？這或許能讓您稍微了解我們投入了大量時間和精力的地方。當然，還有更多，我不想細說。

Fair enough. That's some good color there, Todd. I'll step on the line. Thank you.

不錯。托德，這顏色真好看。我這就上線。謝謝。

Yeah. Thank you, Richard.

是的。謝謝你，理查。

Thank you. Okay. I do not see any other questions at this point. I would like to turn the conference back to management for closing remarks.

謝謝。好的。目前沒有其他問題了。我想請管理階層代表作最後總結發言。

Okay. So, thank you. I have no further closing remarks. Continued progress in a reasonably difficult environment, but we feel pretty good about our prospects right now. So, thanks, everybody, for participating.

好的。謝謝大家。我沒有其他的結束語了。在相當困難的環境下，我們繼續取得進展，但我們對目前的前景感到相當樂觀。所以，感謝大家的參與。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您可以掛斷電話了。