(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，美好的一天，歡迎參加 Pixelworks, Inc. 的 2023 年第二季度收益電話會議。我將擔任您今天通話的接線員。 （操作員說明）

This conference call is being recorded for replay purposes.

本次電話會議正在錄音以供重播。

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

我現在想將電話轉給謝爾頓集團投資者關係部的布雷特·佩里 (Brett Perry)。請繼續。

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.

謝謝你，本尼。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有 Pixelworks 總裁兼首席執行官托德·德博尼斯 (Todd DeBonis)；首席財務官 Haley Aman。今天召開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，該新聞稿宣布了該公司 2023 年第二季度的財務業績。

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發表的各種言論，包括有關預計未來財務業績、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中所做的所有其他非歷史事實的陳述均受到許多風險和不確定性的影響，可能導致實際結果與實際結果存在重大差異。

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公司截至今天（2023 年 8 月 8 日星期二）的信念。公司沒有義務更新任何此類陳述以反映今天之後發生的事件或情況。請參閱今天的新聞稿、公司截至 2022 年 12 月 31 日的 10-K 表格年度報告以及隨後向 SEC 提交的文件，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的描述。

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，該公司在本次電話會議期間的新聞稿和管理層聲明將包括對公認會計準則和非公認會計準則術語中的某些措施和財務信息的討論，包括毛利率、運營費用、淨虧損和每股淨虧損。非公認會計原則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，以及這些非公認會計原則調整的稅收影響。

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.

公司在內部使用這些非公認會計準則衡量標準來評估經營業績。我們相信，這些非公認會計準則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是對公司根據美國公認會計準則提出的綜合財務業績的補充，而不是替代或優於該業績。

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的新聞稿和管理層聲明中，我們將 Pixelworks, Inc. 的淨虧損簡稱為淨虧損。有關更多詳細信息以及 GAAP 與非 GAAP 淨虧損以及 GAAP 淨虧損與調整後 EBITDA 的調節表，請參閱該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 首席執行官托德·德博尼斯 (Todd DeBonis)。請繼續。

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.

謝謝布雷特，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報導的，我們本季度的頂線和底線業績均在指導範圍內，反映了從充滿挑戰的第一季度中的反彈。第二季度我們 37% 的環比收入增長主要是由移動 IC 出貨量增加推動的，導致移動收入翻了一番多，占我們總收入的比例達到創紀錄的 50%。

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

再加上家庭和企業因投影儀市場的穩定而出現適度的環比增長，第二季度標誌著 Pixelworks 智能手機庫存調整的結束，這讓我們有信心恢復增長軌跡。

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.

在對我們的終端市場進行評論之前，我認為首先對我們對今年剩餘時間的普遍預期提供一些簡短的高層觀點會有所幫助。首先，我們認為第二季度的收入連續增長不是一個季度的事件。

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.

儘管第一季度的基數異常低，但我們預計今年剩餘時間移動業務將持續環比增長。從我們對今年下半年的內部預測來看，目前大部分訂單已被預訂，我們還預計移動收入將反映出 2023 年上半年營收的顯著增長。

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 and in 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移動業務。正如廣泛報導的那樣，隨著分銷商和智能手機原始設備製造商繼續削減之前過多的庫存，許多進入智能手機市場的零部件供應商的需求繼續疲軟。再加上復甦速度比預期和需求更為緩慢，導致市場長期疲軟，普遍的共識表明智能手機供應鏈當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. 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.

正如第二季度移動收入的環比增長以及我們目前對下半年持續環比增長的預期所反映的那樣，我們所經歷的趨勢與更廣泛的智能手機市場的趨勢明顯不同。雖然 Pixelworks 在去年第四季度和今年第一季度確實經歷了移動庫存調整的影響，但自 4 月份以來，我們實際上已經完全清除了渠道內和由我們持有的移動 IC 的庫存。當前客戶。

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，正如我們在之前的電話會議中提到的，我們經歷過多次移動OEM 客戶請求上調訂單的情況，因為採用了我們的X5 和X7 視覺處理器IC 的多種智能手機型號的銷售情況好於預期。這種情況一直持續到本季度，因為我們參與的許多項目在啟動後都經歷了需求上升。

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.

除了密切管理庫存外，我們還在整個經濟低迷時期繼續積極開展移動產品和生態系統開發工作。這些努力的很大一部分集中在培育和利用強大的移動遊戲生態系統。我們的團隊已經並將繼續良好地執行這一戰略，我們在需求疲軟的環境中的增長證明了我們的移動戰略正在發揮作用。

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.

7 月，我們宣布正式推出 Pixelworks IRX 遊戲體驗品牌（IRX 指的是圖像渲染加速器），擴展了現有的移動生態系統計劃。我們的全新 IRX 遊戲體驗品牌直接針對智能手機最終用戶，這對於 Pixelworks 來說尚屬首次。該品牌本身以 Pixelworks 廣泛的專有移動視覺處理解決方案組合以及我們獨特且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.

我們還與 IRX 品牌一起建立和支持 IRX 認證計劃，該計劃將包括移動設備（既是採用 Pixelworks 移動視覺處理器的移動設備，又是滿足我們最低視覺要求的頂級移動遊戲的認證列表）調整這些遊戲以在IRX 認證的智能手機上玩後的質量性能標準。

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 Gaming Experience 品牌的同時，我們發布了 20 款頂級移動遊戲的初步預認證名單，我們將繼續加班擴大該名單。我們還與多個 OEM 客戶合作，將 IRX 設備認證納入他們的下一代型號。

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.

在這款手機正式發布之前，在上週舉行的新聞發布會上，Redmi K60 Ultra 智能手機與聯發科、小米和 Pixelworks 上海合作預先發布。我們與第四家一級移動客戶小米的公告還透露，Redmi K60 Ultra 智能手機將於本月晚些時候正式推出，成為首款通過 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.

同樣在上週，OPPO 附屬公司OnePlus 預告了即將推出的OnePlus Ace 2 Pro 旗艦智能手機，提醒消費者OnePlus 與Pixelworks 建立了突破性的多年合作夥伴關係，並具有Pixelworks X7 視覺處理器支持的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.

隨著更多的手機遊戲和設備獲得認證，我們相信IRX 遊戲體驗將為最終用戶帶來更高的一致性和質量的手機遊戲，同時也提高消費者對Pixelworks 以及我們的內容和OEM 合作夥伴的認識。

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.

接下來是關於我們的 TrueCut Motion 平台的簡短更新。 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，用於通過電影高幀率內容創建和提供優質體驗。

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 of device display systems capable of high-frame rate and high-resolution output, Hollywood Censored 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在一夜之間被採用和擴散，但專業電影行業卻有所不同。儘管技術不斷進步，包括大多數設備顯示系統都能夠實現高幀率和高分辨率輸出，但自電影早期商業化以來，好萊塢審查內容製作仍繼續使用每秒 24 幀。

While there are multiple reasons behind 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.

雖然歷史上厭惡採用更高幀速率的背後有多種原因，但越來越多的證據表明，採用更高幀速率對於提供沒有偽影的高分辨率 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 in new motivation among multiple industry participants to not only accept change, but also pivot towards increased releases of premium large format content.

最突出的是，詹姆斯·卡梅隆的《阿凡達：水之道》的院線上映以及《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 Pixelworks TrueCut Motion 平台實現的影院級高幀率。這三部影片的票房成功為多個行業參與者註入了新的動力，他們不僅接受變革，而且轉向增加優質大格式內容的發布。

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 的機會比任何一個客戶或合作夥伴的公告都大。我們確實期望如何——但是我們確實期望我們將在年底前發布更多公告，這將作為 TrueCut Motion 價值主張和持續採用的切實證據。

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.

繼續更新我們的家庭和企業業務，目前主要由數字投影儀市場的視覺處理器 SoC 組成。第一季度收入環比增長，但由於宏觀相關的不確定性和終端市場需求疲軟（特別是在中國），投影機原始設備製造商的訂單繼續減少。

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，我們最大的投影儀 OEM 客戶仍在努力使其內部庫存和交貨時間正常化，以應對長期的供應限制和需求失衡。儘管如此，近幾個月的訂單模式已趨於穩定，我們目前預計，隨著庫存調整的持續進行，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.

在第二季度，我們交付了下一代 SoC 的初始樣品，作為我們與最大的投影儀客戶共同開發項目的一部分。因此，我們將預期的里程碑付款視為研發信貸，減少了本季度的總運營支出。我們繼續預計這款新 SoC 將實現量產，並為 2024 年開始的整體收入增長做出貢獻。

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，介紹一下我們 Pixelworks 上海子公司的最新進展以及我們在科創板上市的進展情況。正如我們在上次電話會議中簡要強調的那樣，我們保留了中信證券作為我們的顧問和保薦人，以在整個申請和承銷過程中為 Pixelworks 上海提供支持。

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 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，我們提交了申請，正式開始輔導流程，目前正在順利進行中。輔導過程是任何尋求申請新上市的公司的先決條件，預計大約需要兩到三到四個月的時間。該團隊同時正在編寫招股說明書草案並支持子公司的相關多年審計。我對我們為本地上市所做的持續準備和進展感到非常滿意。今天，我們仍有望在年底前正式提交文件。

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.

總之，儘管在當前環境下，我們團隊對戰略舉措的執行以及我們新的增長、動力和移動性仍然給我帶來了鼓舞。儘管終端市場需求（特別是中國）的最終復甦速度慢於大多數人的預期，但我們對下半年的定位和增長前景持樂觀態度。

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，隨著投影儀市場繼續逐步復甦，我們已全面實現營收環比增長，並預期毛利率將有所改善，並且我們進一步增加移動出貨量以支持客戶即將推出的新智能手機型號。

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

接下來，我將致電 Haley，以審查財務狀況並為第三季度提供指導。

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，托德。 2023 年第二季度的收入環比增長 37%，從第一季度的 1,000 萬美元增至 1,360 萬美元，低於 [2022] 第二季度的 1,910 萬美元。第二季度收入環比增長主要是由移動市場出貨量增加推動的。

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.

第二季度收入明細如下：移動收入環比增長超過 100%，達到約 690 萬美元，佔本季度總收入的 50%，創歷史新高。家庭和企業收入約為 670 萬美元，與上一季度相比略有環比增長。

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

在家庭和企業領域，第二季度投影儀市場的銷售額繼續佔該業務的約 90%。 2023 年第二季度非 GAAP 毛利率為 40.5%，而 2023 年第一季度為 44.1%，2022 年第二季度為 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.

正如上季度所討論的，第二季度較低的毛利率水平不僅反映了產品組合向移動設備的轉變，還反映了之前我們選擇不立即轉嫁給客戶的材料成本的增加。

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.

從第三季度開始，我們開始將部分較高的材料成本轉嫁給客戶。因此，我們認為第二季度是企業毛利率的底部，並預計從今年下半年開始毛利率將實現逐步改善。

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.

第二季度非GAAP 運營費用為1,070 萬美元，而上一季度為1,360 萬美元，2022 年第二季度為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，從而190 萬美元的研發信貸，這有助於我們減少第二季度的總運營支出。

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.

按非公認會計準則計算，2023 年第二季度淨虧損為 480 萬美元，即每股虧損 0.09 美元，而上一季度淨虧損約為 820 萬美元，即每股虧損 0.15 美元。去年同期淨虧損 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 年第二季度調整後 EBITDA 為負 400 萬美元，而上一季度為負 780 萬美元，2022 年第二季度為負 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.

轉向資產負債表，本季度末我們的現金和現金等價物為 5,450 萬美元，並且公司仍然沒有未償債務。

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.

轉向我們對 2023 年第三季度的當前預期和指導。根據當前訂單趨勢和積壓訂單，我們預計第三季度總收入將在 1500 萬美元至 1700 萬美元之間。在此範圍的中點，總收入將比第二季度增長約 17%，這得益於第三季度移動、家庭和企業終端市場的預期連續增長。

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，正如我之前的評論中所討論的，我們最近開始將逐漸增加的材料成本轉嫁給我們的客戶。再加上單位銷量的增加以及總收入增加所帶來的間接費用吸收的增加，我們預計將在未來幾個季度推動毛利率的穩步擴張。

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，我們預計非 GAAP 毛利率在 42% 至 44% 之間。按非公認會計原則計算，我們預計第三季度的運營費用將在 1300 萬美元至 1400 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，第二季度的運營支出受益於研發的里程碑式信貸。我們預計第三季度不會獲得與共同開發協議相關的信用。

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，我們預計第三季度非 GAAP 每股收益將在每股虧損 0.13 美元到每股虧損 0.09 美元之間。我們準備好的發言到此結束，我們期待回答您的問題。

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

接線員，您可以繼續進行問答環節。謝謝。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

Suji Desilva, ROTH Capital.

蘇吉·德西爾瓦，羅仕資本。

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，托德。嗨，海莉。恭喜這裡取得的進展。我知道它是從底部出來的。抱歉，如果在那裡感覺良好。所以，托德，新的第四個一級，我只是想了解一下，那個坡道與您已經擁有的其他三個坡道相比，以及這裡的初始坡道，與其他三個坡道相比，它的大小如何。更重要的是，您對穩定的連續增長的信心，因為有時新客戶有一個初始構建，然後在繼續前進之前停下來看看程序進展如何。所以任何有幫助的顏色。

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

好的。好了，客戶就這樣宣布了；這是小米。我們可以談論他們。

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——所以讓我談談我認為這次產品發布與之前與其他一級產品發布的產品之間的差異。首先，這是一次大規模的發布。我想說我們有一些更大的；我們有過更小的。因此，從數量角度來看，它處於中間位置。

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.

他們在發布前將數量增加了兩次，因此他們認為對此的需求將會很大。但這次發布與所有其他發布之間最顯著的區別是，他們完全接受了 Pixelworks 視覺處理為他們帶來的差異化營銷，並完全接受了 IRX 生態系統品牌的聯合營銷。

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.

他們在上週的一場大型活動中做到了這一點，有70 家當地媒體參加，他們有效地啟動了我們之間的三向合作夥伴關係——聯發科技在這個特定的遊戲平台上推出了他們最新的Dimensity。來自聯發科、Pixelworks 和小米的所有高管都展示了此次合作的成果。所以我想說這是最值得注意的營銷和他們的呈現方式。

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.

如果你回顧一下我們之前發布的一些一級產品，客戶會試圖表達這一點：我們的技術就是他們的技術。我們進行了一些聯合營銷，但他們有點埋葬了它。他們想表明他們的創新正在使市場脫穎而出。

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

我認為未來你將看到市場品牌的推出將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?

好吧，托德。這很有幫助。我很好奇這個 IRX 品牌未來將如何營銷。聽起來這可能是增加產品需求的好方法。那麼它的營銷方式有哪些呢？

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.

好吧，我們要把它推向市場。我們的 OEM 客戶將把它推向市場。我們的遊戲供應商將把它推向市場。但我們將成為該品牌的主要營銷者。

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.

但請理解，現在我正在與主要是美國投資者交談。我們營銷的很大一部分將是中國和東南亞的本地營銷，並針對這些手機所在的終端市場。

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。關於智能手機的最後一個問題。 Todd，您是否看到高端智能手機的需求正在溫和復蘇，我認為 Pixelworks 與更廣泛的智能手機市場的表現良好？這是否是讓您比其他智能手機組件同行更有信心的動態的一部分？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，給我信心的是積壓的訂單。但我確實相信今年高端市場的表現比低成本市場要好得多。

Okay. Thanks, Todd.

好的。謝謝，托德。

Thank you, Suji.

謝謝你，蘇吉。

Quinn Bolton, Needham & Company, LLC.

奎因·博爾頓，李約瑟公司，有限責任公司。

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?

嗨，托德。我想跟進Suji的問題。顯然，我們在中國市場都經歷過這種庫存調整。而且你比其他許多人更早地擺脫困境。我想我想知道，您是否通過您所使用的型號的數據獲得了很好的銷售，並且您是否有辦法跟踪這些手機的庫存是否相當乾淨？

Obviously, the Xiaomi is a new launch. But for the run rate business, I think you, you'd mentioned multiple customers, I believe, or upside in 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，小米是一款新產品。但對於運行率業務，我認為您提到了多個客戶，或者一個季度的訂單上升。所以聽起來這項活動比小米更廣泛。因此，我只是想了解一下您是否對這些手機型號的銷售情況有很好的了解。

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 [upciting] us on quantities, then I clearly get a picture.

奎因，我希望我能看得更清楚。我們的觀點是通過我們的客戶對話，通過高管與客戶對話。然後，當他們進來並在短時間內通知時，開始[upciting]我們的數量，然後我清楚地得到了圖片。

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.

我對此的看法是，總體而言，高端品牌的表現要好一些。我認為特別是我們的品牌——或者我們的車型都做得很好。但當我說做得很好時，我的意思是做得很好，達到了我們剛開始開發該模型時原始設備製造商對該模型的期望。

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，如果你回到 2021 年，客戶向我們提供的 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，我們今天意識到了這一點。那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.

今天顧客的行為恰恰相反。他們真的——我的意思是，在某些情況下，他們出價的價格是他們消化特定組件（不是我們，而是全年其他組件）的庫存量的 2 倍或 3 倍。在過去的六到九個月裡，他們一直在努力燒掉一些舊庫存。

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.

但這是智能手機市場。如果你使用舊庫存太久，你的產品就沒有競爭力。所以他們正在做的是——我認為他們將會結束這一切。他們不會燒掉所有這些舊庫存。他們會開始拋棄它。他們會廢棄它；他們會把它從他們的賬本上註銷，然後他們就乾淨了。

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.

但這一做法讓中國所有的 ODM 廠商都極為謹慎。因此，我認為進入今年，他們對其中一些車型發布的預測很低。因為過去三年發生了一件事，我認為這肯定發生在我們身上——我不知道這是否發生在所有供應商身上——具體來說，中國 ODM 不會為零部件供應商提供全面覆蓋。

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.

我們可能有 26 週的周期時間來構建我們的產品。我們進入限制期，大家都收緊了要求。不可取消、不可退貨的訂單、全週期交貨時間。我看到其他供應商在供應鏈中更多以商品為導向的方面，他們正在退回到吸收週期時間的地方，並且他們沒有獲得大量的訂單覆蓋率。

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.

我們保留了它。因此，如果有人進來並想和我們一起做一個節目，他們幾乎已經被預訂了。您知道，大多數這些項目都在九個月內完成。在我們推出手機之前，他們的整個計劃幾乎已​​被預訂滿，不可取消，不可退貨。希望這能給你帶來一些見解，奎因。

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，那太好了。然後我猜海莉可能有兩個。您將利潤率控制在 42% 至 44% 的範圍內。我們預計利潤率多久才能恢復到 48% 到 50% 的水平，特別是當移動業務在整體產品組合中佔據越來越大的比例時？您認為 2024 年可能還會出現 48% 至 50% 的情況嗎？

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，到 2024 年，我們的目標是年底利潤率達到 50 左右。因此，到 2024 年底，這一比例絕對會達到 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?

完美的。最後是我。 NRE 付款抵消了 6 月份季度的研發費用，您預計不會在第三季度付款。但您說過該計劃將在 2024 年開始實施。在該項目完成並開始實施之前，是否還會為里程碑支付額外的 NRE 費用？或者第二季度付款是該計劃的最後一次大型 NRE 嗎？

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

還有一筆 NRE 付款，我們目前預計在第四季度實現。

Similar size?

尺寸相似？

No, a little smaller.

不，小一點。

Okay.

好的。

Not quite at 1.9. A little less than that.

不完全是1.9。比那少一點。

Great. Okay. Thank you.

偉大的。好的。謝謝。

Richard Shannon, Craig-Hallum Capital Group.

理查德·香農，克雷格-哈勒姆資本集團。

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，托德，海莉，也感謝您提出我的問題。也許我會從一個關於第三季度銷售指導的戰術問題開始。你在這裡談論的是一些不錯的連續增長。您想用什麼方式來描述移動設備和投影儀之間的增長率是否存在有意義的差異以使其達到中點？

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，與第二季度相比，移動、家庭和企業對第三季度增長的貢獻是相同的。

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

好的。好的。在毛利率不斷提高的背景下，這是一件好事。那裡的工作真好。

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，也許有幾個關於 IRX 的問題。我想我只是在這裡問他們倆。只是想讓您了解 OEM、遊戲工作室、甚至遊戲引擎的接受程度，了解它們在這裡的重要性。然後也許你可以談談實施成本和品牌推廣活動。

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，這是我們已經考慮了一段時間的事情。我們處於實施模式大約三到五個月了，目前還處於早期階段。所以你應該看到——我們期望看到更廣泛的採用。我們希望看到每個人都採用它。

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.

通過這種方式，它可以覆蓋我們的 ODM 客戶和模型以及我們調整的遊戲。我們肯定會看到營銷成本增加，但我們也會利用生態系統營銷成本。

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。對於最後一點，托德，您是說這對您未來的運營支出幾乎不會產生明顯的影響，還是會產生明顯的影響？或者說我這樣誇大其詞了？

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.

我可以告訴你顯著的定義。但我們肯定會增加遊戲生態系統團隊（技術團隊）和對外營銷傳播團隊的人數。如果你直截了當地問我，我們是否為市場發展基金提供資金，那麼今天我們沒有。

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

聽起來你是在暗示這可能是未來的可能性。認為你正在考慮公平嗎？

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，所以我真的相信圍繞差異化體驗向消費者傳達共同的主題和品牌。在硬件領域，我們傾向於——我們一直生活在這個世界上。當你向消費者推銷它時，我們認為他們理解我們生活的所有縮寫詞、速度和速度。但他們不理解。

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.

因此，如果我們能讓他們理解，他們肯定——我的意思是，手機遊戲——他們會花費很多時間。它可能是手機日常使用的前三名。

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（即遊戲、ODM 等）的體驗差異，他們就會注意到其中的差異。他們注意到外觀、感覺、速度、平滑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，其中一些遊戲可以理解——讓我給你舉一個例子。有一款名為 Genshin Impact 的遊戲，大多數中國 OEM 廠商都會用它來展示其解決方案的性能，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.

如果你嘗試在最先進的 Qualcomm 或 MediaTek GPU 上以本機模式實時渲染它，你會幸運地維持每秒 50 幀並玩大約兩個小時，然後你就會耗盡其中一個相當大的電池。如果您在較新的OLED 顯示屏之一上顯示這些新手機。

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.

我們渲染了我們剛剛推出的這些手機。所以我們卸載 GPU。現在以較低的幀速率（例如每秒 30 幀）和較低的分辨率進行渲染。我們進行後期處理；我們以每秒 144 幀的速度渲染遊戲，充分發揮顯示器的能力。就小米而言，我認為它是 1.5K 顯示屏。

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.

然後我們增加了用戶玩遊戲長達三個小時的能力。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 受益，遊戲廠商受益，消費者受益，當然 Pixelworks 也會受益。

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，這是為了帶來好處。您問我的具體問題是：我們是否願意花錢來打造該品牌並在消費者市場中獲得認可？我們絕對是。我們今天正在這樣做，當我們看到成功時，我們將加大力度。

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。我們期待看到這種情況在這裡發生。您和我將立即回答您的最後幾個問題。我早些時候得到了關於毛利率的答案的跟進。

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，您剛才談到明年將實現 50 多歲的毛利率目標。我認為每個人都會認為移動設備的組合將明顯高於今天。有了這個，並糾正我- 如果我錯了，請糾正我的假設，在移動設備中，它對你來說往往是一個較小的組合，但從40 年代低到50 年代中期的上升是一個非常令人印象深刻的場景。我認為我們也排除了 TrueCut 貢獻的潛力。

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.

所以我想知道你是否可以幫助我理解今天和 50 年代中期之間的關係並架起橋樑。這是怎麼發生的？無論是音量感還是任何其他動力都將有助於混音的改善。

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。因此，在此期間，我們將通過我們的增長業務來增加移動設備的利潤，而不是投影儀。隨著單個處理器的採用，所有這些都有助於達到 50 年代中期的這一數字。

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

托德，如果您想為我提供更多信息，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.

讓我澄清一下理查德的問題。所以，理查德，就像我們一樣，如果你回顧歷史，我們的投入成本在過去兩年中上升了很多，每個使用的人也是如此（聽不清）。其中一些投入成本被轉嫁給了客戶，而不是全部。當然並非所有這些都有保證金。

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.

因此，我們現在正在趕上其中一些活動的落實。這是它的一部分。但特別是在移動領域，我們已經——你將看到我們公開推出一種新的視覺處理器。六個月前就向客戶介紹了它。他們已經在用它來開發手機了。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.

我們確保該設備上的利潤狀況比之前的設備 X7 更好。我想說，我們將在 2014 年中期（原文如此，“2024 年”）推出另一種設備。這將是我們的第一個 12 納米設備。這就是您所看到的原因 - 所以您看到我們的一些運營支出研發上升的部分原因是我們專注於 12 納米設備而不是 22 納米設備。

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.

該設備的利潤狀況比我們將在一個月內發布的設備要好得多。因此，隨著我們的路線圖的採用，我們將看到移動特定業務的利潤率顯著增加。

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。出色的。這是非常詳細的。謝謝你，托德。最後一個，我會在這裡跳出。 TrueCut，您在今年年底之前發布了一些公告，或者至少是關於這裡發展的生態系統的切實證據的公告。

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向我們提供有關該生態系統的哪一部分的任何線索，或者建議我們應該如何考慮這裡可能發生什麼類型的事件。

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.

我不想提供太多線索。我要說的是，我們正在做幾件事。 Lightstorm 一直大力倡導使用 TrueCut 技術和高幀率來為優質大型影院提供獨特的體驗。還有高級大型影院或所有類型的影院，但我想說，在電話會議上最受觀眾認可的影院是杜比影院、IMAX，在中國有一種叫做 Finity 的影院。

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.

當您前往高級大型影院並希望以 2D 或 3D 方式提供高分辨率 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，偽影更加明顯如果你以每秒24幀的速度傳送它。

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.

如果您使用 48，它會更加明顯，除非您確實使用我們的技術來實現電影般的高幀速率。所以我們看到的是，我們看到其他人——我們所說的創意方面的人——想要利用這項技術來進行類似的交付。

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.

您還看到了優質大幅面——我們看到優質大幅面技術領導者來找我們並詢問，我們如何為我們的 PLF 影院提供更多內容？因此，這可能會讓您對我們花費大量時間和精力的地方有一些了解。還不止這些；我只是不想深究。

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

很公平。托德，那顏色不錯。我會踩線。謝謝。

Yeah. Thank you, Richard.

是的。謝謝你，理查德。

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。目前我沒有看到任何其他問題。我想將會議轉交管理層致閉幕詞。

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。所以謝謝。我沒有更多的結束語。在相當困難的環境中不斷取得進展，但我們現在對我們的前景感到非常樂觀。謝謝大家的參與。

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。您現在可以斷開連接。