(PXLW) 2023 Q3 法說會逐字稿

Good day, ladies and gentlemen. And welcome to Pixelworks Inc's third quarter 2023 earnings conference call. I will be your operator for today's call. (Operator Instructions) This conference call is being recorded for replay purposes. I would now like to turn the call over to Brett Perry with Shelton Group, Investor Relations.

美好的一天，女士們先生們。歡迎參加 Pixelworks Inc 的 2023 年第三季財報電話會議。我將擔任您今天通話的接線生。 （操作員說明）本次電話會議正在錄音以供重播。我現在想將電話轉給謝爾頓集團投資者關係部門的布雷特·佩里 (Brett Perry)。

Thank you, Andrea. Good afternoon. And thank you for joining us on today's conference 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 third quarter of 2023.

謝謝你，安德里亞。午安.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 總裁兼執行長 Todd DeBonis 和財務長 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 年第三季度的財務業績。

Before we begin, I'd like to remind you that various remarks we make on the call, including those about projected future financial results, economic and market trends, and our 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.

在開始之前，我想提醒您，我們在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我們的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，可能導致實際結果出現重大差異。

All forward-looking statements are based on the company's beliefs as of today, Tuesday, November 7, 2023. The company undertakes no obligation to update any such statements to reflect events or circumstances occurring after today.

所有前瞻性陳述均基於本公司截至今天（2023 年 11 月 7 日星期二）的信念。本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。

Please refer to today's press release, the company's annual reports 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. Additionally, the company's press release and management's 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.

請參閱今天的新聞稿、本公司截至 2022 年 12 月 31 日的 10-K 表格年度報告以及隨後向 SEC 提交的文件，以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。此外，本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資訊的討論，包括毛利率、營運費用、淨虧損和每股淨虧損。

Non-GAAP measures exclude amortization of acquired intangible assets and stock-based compensation expense, as well as the tax effect of the non-GAAP adjustments. The company uses these non-GAAP measures internally to assess operating performance.

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，以及非公認會計原則調整的稅務影響。本公司在內部使用這些非公認會計準則衡量標準來評估營運績效。

We believe these non-GAAP measures provide a meaningful perspective into our 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.

我們相信，這些非公認會計準則指標為我們的核心經營績效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表現的補充，而不是替代或優於該業績。

Also note throughout the company's press release and management's statements during this conference call, we refer to net loss attributable to Pixelworks, Inc. as simply net loss. For additional details and 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. With that, it's now my pleasure to turn the call over to Pixelworks' CEO. Todd, please go ahead.

另請注意，在本次電話會議期間，本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 GAAP 與非 GAAP 淨虧損以及 GAAP 淨虧損與調整後 EBITDA 的更多詳細資訊以及調整表，請參閱該公司今天早些時候發布的新聞稿。現在，我很高興將電話轉給 Pixelworks 的執行長。托德，請繼續。

Thank you, Brett. And good afternoon. And welcome to everyone joining us on today's call. Consistent with preliminary third quarter revenue we announced in early October, we had a solid third quarter results with all financial metrics coming in, at, or better than the midpoint of guidance.

謝謝你，布雷特。午安.歡迎大家參加今天的電話會議。與我們 10 月初宣布的第三季初步收入一致，我們第三季業績穩健，所有財務指標均達到或優於指導中點。

Total revenue increased 18% sequentially, driven by record quarterly revenue in our mobile business, as well as seasonally stronger demand in the home and enterprise market. As planned during the quarter, we began passing through previously absorbed supplier (technical difficulty) across our end markets, which contributed to gross margin expanding 260 basis points sequentially.

受行動業務創紀錄的季度收入以及家庭和企業市場季節性強勁需求的推動，總收入環比增長 18%。按照本季計劃，我們開始在終端市場上轉移之前吸收的供應商（技術困難），這導致毛利率環比擴大 260 個基點。

We also successfully managed OpEx for the quarter, especially given the significant number of product and ecosystem initiatives we currently have underway to support future growth. Turning to our end markets, mobile revenue increased 20% sequentially and 37% year-over-year, achieving new quarterly record and contributing a record 52% of total revenue.

我們也成功管理了本季的營運支出，特別是考慮到我們目前正在實施大量產品和生態系統計劃來支持未來的成長。轉向終端市場，行動收入季增 20%，年增 37%，創下季度新紀錄，佔總收入的比例達到創紀錄的 52%。

During the quarter, we received positive responses to our newly introduced IRX gaming experience branding and certification program. The launch of the first IRX-certified smartphone models were well received by the market with demand for these models exceeding customers' expected unit volumes.

本季度，我們新推出的 IRX 遊戲體驗品牌和認證計畫收到了正面的回應。首批經過 IRX 認證的智慧型手機型號的推出受到了市場的好評，這些型號的需求超出了客戶的預期銷售。

Among these were two new smartphones that had just been pre-announced and which we previewed on our previous conference call. As a reminder, these were Xiaomi's Redmi K60 Ultra, and the OnePlus Ace 2 Pro. Both of these premium smartphones incorporate Pixelworks' X7 visual processor and have contributed to our recent revenue growth.

其中有兩款剛預先發布的新智慧型手機，我們在先前的電話會議上預覽了它們。提醒一下，這些是小米的 Redmi K60 Ultra 和 OnePlus Ace 2 Pro。這兩款高階智慧型手機均採用 Pixelworks 的 X7 視覺處理器，為我們最近的營收成長做出了貢獻。

Also launched during the quarter, incorporating both our X7 visual processor and IRX certification was the realme GT5 smartphone. Built on Qualcomm's Snapdragon 8 Gen 2 platform, the realme GT5 features a 6.74-inch flat display with narrow bezels supporting up to 144Hz refresh rate and 2K dimming. With its integration of our X7 processor, this phone leverages all of Pixelworks' core visual processing technology, including our ultra-low latency motion engine, low-power, super resolution, and always-on HDR, resulting in enhanced visual performance and optimize picture quality for both gaming and video content.

本季也推出了結合了我們的 X7 視覺處理器和 IRX 認證的 realme GT5 智慧型手機。 realme GT5 基於高通 Snapdragon 8 Gen 2 平台打造，配備 6.74 吋窄邊框平面顯示屏，支援高達 144Hz 刷新率和 2K 調光。透過整合我們的X7 處理器，這款手機充分利用了Pixelworks 的所有核心視覺處理技術，包括我們的超低延遲運動引擎、低功耗、超解析度和始終在線的HDR，從而增強了視覺性能並優化了圖像遊戲和視訊內容的品質。

As part of our ongoing strategic initiatives to facilitate a cooperative mobile gaming ecosystem, we recently disclosed our latest collaborations with two of the world's largest mobile game studios. In August, we announced Perfect World Games had incorporated the Pixelworks' Rendering Accelerator SDK in the mobile game, Persona 5: The Phantom X, more commonly referred to as P5X.

作為我們促進合作行動遊戲生態系統的持續策略舉措的一部分，我們最近披露了與世界上最大的兩家行動遊戲工作室的最新合作。八月，我們宣布完美世界遊戲已將 Pixelworks 的渲染加速器 SDK 整合到手機遊戲《女神異聞錄 5：幻影 X》（通常稱為 P5X）中。

Then in September, we announced our partnership with NetEase Games Studio, ThunderFire Business Group, and the integration of (technical difficulty) release of Revolution Mobile, based upon the original flagship game, Revolution. When played on a smartphone equipped with one of the X7 series visual processors, the integration of our SDK Rendering Accelerator serves as a connecting bridge, enabling these games to be played at the display's full resolution (technical difficulty) 120 frames per second, while significantly lowering system power over native rendering.

然後在9月份，我們宣布與網易遊戲工作室、雷霆事業群合作，並在原旗艦遊戲《革命》的基礎上整合（技術難度）發布《革命移動》。當在配備X7 系列視覺處理器之一的智慧型手機上玩時，我們的SDK 渲染加速器的集成充當連接橋樑，使這些遊戲能夠以每秒120 幀的顯示器全分辨率（技術難度）運行，同時顯著提高遊戲效能。降低系統對本機渲染的功耗。

More recently in October, we completed two notable milestones with the formal launch of our latest X7 Gen 2 mobile visual processor, which we unveiled (technical difficulty) hosted Mobile Visual Computing event in Shenzhen, China. In addition to being an opportunity to promote the launch of our latest mobile visual processor, the event itself was centered around what we believe to be the future of mobile visual processing and advanced mobile gaming.

最近在 10 月份，我們正式推出了最新的 X7 Gen 2 行動視覺處理器，完成了兩個值得注意的里程碑，我們在中國深圳主辦的行動視覺運算活動上公佈了該處理器（技術難度）。除了作為推廣我們最新行動視覺處理器發布的機會之外，這項活動本身還圍繞著我們所認為的行動視覺處理和高級行動遊戲的未來。

Endorsing and adding (technical difficulty) to the event, the Vice President of Perfect World Games was the keynote speaker. This was followed by customer acknowledgments and then members of the Pixelworks' team presenting the benefits of our ecosystem-based distributed processing architecture.

完美世界遊戲副總裁作為主講嘉賓對本次活動表示認可並增加（技術難度）。隨後是客戶致謝，然後 Pixelworks 團隊成員介紹了我們基於生態系統的分散式處理架構的優勢。

Attendees of this inaugural event also had the opportunity to experience live demos (technical difficulty) five announced IRX certified mobile games. With regards to our new X7 Gen 2, this latest visual processor takes picture quality to a new level. In order to achieve this performance, we incorporated newly internally developed, AI-based (technical difficulty) technology that utilizes our self-developed neural network processing. Our X7 Gen 2 enables more accurate upscaling, and rendering of gaming content while maintaining power efficiency.

本次首屆活動的與會者還有機會體驗現場展示（技術難度）五款已公佈的 IRX 認證手機遊戲。對於我們全新的 X7 Gen 2，這款最新的視覺處理器將影像品質提升到了一個新的水平。為了實現這一性能，我們採用了新的內部開發的基於人工智慧（技術難度）的技術，該技術利用了我們自主開發的神經網路處理。我們的 X7 Gen 2 可實現更準確的遊戲內容升級和渲染，同時保持功效。

The overall feature set of our new Gen 2 processor is different from the X7 predecessor. However, both chips incorporate Pixelworks' industry-leading ultra-low latency motion engine, MEMC, as well as other core visual and picture quality enhancement capabilities.

我們的全新第二代處理器的整體功能集與 X7 前身不同。不過，這兩款晶片都採用了 Pixelworks 業界領先的超低延遲運動引擎 MEMC，以及其他核心視覺和影像品質增強功能。

Looking ahead to the fourth quarter and into next year, there are three primary drivers that underpin our current expectations for sustained year over year growth in mobile. The first is to quickly scale the growth of the gaming ecosystem that we've established with leading mobile gaming studios.

展望第四季和明年，三個主要驅動因素支撐了我們目前對行動業務年比持續成長的預期。首先是快速擴大我們與領先的行動遊戲工作室建立的遊戲生態系統的成長。

We're working with new and existing studios and are targeting a 400% increase in announced games by the end of 2024. (technical difficulty) launch of our IRX gaming brand and certification, which is designed to increase awareness as well as simplify the evaluation and purchase decision of consumer gamers. Pixelworks has positioned to drive expanded adoption of our mobile visual processing solutions.

我們正在與新的和現有的工作室合作，目標是到 2024 年底將已發布的遊戲數量增加 400%。（技術難度）推出我們的 IRX 遊戲品牌和認證，旨在提高知名度並簡化評估以及消費者遊戲玩家的購買決定。 Pixelworks 致力於推動我們的行動視覺處理解決方案的廣泛採用。

The second (technical difficulty) for mobile is our expanded product portfolio and roadmap. Our new X7 Gen 2 visual processor, when combined with Pixelworks Rendering Accelerator SDK, provides a unique value proposition in the form of rendering efficiency and superior cinematic gaming experience. The first production volume shipments are scheduled to begin this month in support of a customer (technical difficulty) planned phone launch in the first quarter of 2024.

移動領域的第二個（技術難題）是我們擴展的產品組合和路線圖。我們的全新 X7 Gen 2 視覺處理器與 Pixelworks 渲染加速器 SDK 結合，以渲染效率和卓越的電影遊戲體驗的形式提供了獨特的價值主張。首批量產出貨計畫於本月開始，以支援客戶（技術難度）計畫於 2024 年第一季推出的手機。

Lastly, another growth opportunity for our team has been focused on, is the expansion within the existing Tier 1 handset customers into an international models sold (technical difficulty) outside (technical difficulty). We have secured our first design on an existing customer's planned international model that is scheduled to be launched early next year. To the extent we can leverage this win into additional international models with one or more Tier 1 customers would represent continued (technical difficulty) later half of next year.

最後，我們團隊一直關注的另一個成長機會，是將現有一級手機客戶內部擴展到外部銷售（技術難度）的國際型號（技術難度）。我們已經在現有客戶計劃的國際模型上獲得了第一個設計，該模型計劃於明年初推出。在某種程度上，我們可以利用這場勝利進入具有一個或多個一級客戶的其他國際模型，這將代表明年下半年的持續（技術困難）。

Turning to an update on TrueCut Motion platform, our focus throughout much of this year has been securing a select group of commercial engagements to complete the initial foundation for bringing together a larger support of ecosystem. As the (technical difficulty) an ecosystem takes time, it is a dynamic process.

談到 TrueCut Motion 平台的更新，今年大部分時間我們的重點都是確保選定的一組商業合作，以完成整合更廣泛的生態系統支援的初始基礎。由於生態系統的（技術難度）需要時間，因此它是一個動態過程。

Despite the distraction of recent Hollywood strikes for many industry executives and decision makers, we have continued to demonstrate our TrueCut Motion platform to influential creatives across the filmmaking community, including a growing number of directors, cinematographers, and colorists.

儘管最近好萊塢的罷工分散了許多行業高管和決策者的注意力，但我們繼續向電影製作界有影響力的創意人士（包括越來越多的導演、攝影師和調色師）展示我們的TrueCut Motion 平台。

Additionally, we're seeing increased interest from global theatrical exhibitors with business strategy centered around delivering a premium experience. This not only includes growing demand for new premium, large format content, but also the re-release of remastered classic and catalog titles in superior format. With this push towards premium experiences featuring high-resolution and HDR content, there is strong and growing acceptance of the adoption of cinematic high frame rate is a neat (technical difficulty) theatrical and home entertainment content without undesirable artifacts.

此外，我們看到全球戲劇放映商的興趣日益濃厚，他們的業務策略以提供優質體驗為中心。這不僅包括對新的優質大格式內容不斷增長的需求，還包括以高級格式重新發行經典和目錄標題。隨著以高解析度和HDR 內容為特色的優質體驗的發展，人們越來越多地接受採用電影級高幀率是一種簡潔（技術難度）的影院和家庭娛樂內容，不會產生不良瑕疵。

Next in our home and the enterprise business, which as a reminder now predominantly consists of our visual processor SoCs for the digital projector market, revenue increased sequentially as expected, primarily reflecting typical positive seasonality for the projector business and their order shipments in the third quarter. Although the sequential uptick in demand is an encouraging indication of normalization, the broader projector market is continuing to work through an inventory correction in response to more subdued in demand and macro uncertainty.

接下來，在我們的家庭和企業業務中，提醒一下，該業務現在主要由我們用於數位投影機市場的視覺處理器SoC 組成，收入按預期連續增長，主要反映了投影機業務及其第三季度訂單出貨量的典型積極季節性。 。儘管需求的連續上升是正常化的一個令人鼓舞的跡象，但更廣泛的投影機市場正在繼續透過庫存調整來應對需求疲軟和宏觀不確定性。

Following the industry's extended period of supply constraints, projector OEMs are continued to adjust a build forecast and buffer inventories to reconcile our previous supply and demand imbalances. Feedback from customers (technical difficulty) just began to normalize. However, it will be likely next year before the industry achieves a more sustainable balance between supply and demand.

在行業長期供應緊張之後，投影機原始設備製造商繼續調整生產預測並緩衝庫存，以協調我們先前的供需失衡。客戶的回饋（技術難度）才剛開始正常化。然而，明年該行業可能會在供需之間實現更永續的平衡。

While speaking about supply chains, I want to briefly highlight the recent recognition we received from our largest projector customer, in September, Pixelworks with its Supplier of the Year Award for their fiscal 2022. Similar to many other companies, Epson was confronted with shortages of key components across various product lines. And Pixelworks was the only vendor that was able to fully support Epson's demand through (technical difficulty). Also notable, Pixelworks were the only supplier across all of Epson's product lines to receive this award.

在談到供應鏈時，我想簡要強調一下我們最近從我們最大的投影機客戶Pixelworks 獲得的認可，該客戶在9 月份獲得了2022 財年年度供應商獎。與許多其他公司類似，愛普生也面臨著供應鏈短缺的問題。各種產品線的關鍵組件。而Pixelworks是唯一能夠透過（技術難度）全面支援愛普生需求的廠商。同樣值得注意的是，Pixelworks 是愛普生所有產品線中唯一獲得此獎項的供應商。

This is a true testament to the contributed performance and dedication of our entire team, including our operational sales and technical support teams. Separately, multiyear co-development project with the same customer continues to progress well. We remain on track to achieve conditional acceptance of our next-generation SoC by year end.

這是對我們整個團隊（包括我們的營運銷售和技術支援團隊）所貢獻的績效和奉獻精神的真實證明。另外，與同一客戶的多年共同開發專案持續進展順利。我們仍有望在年底前有條件地接受我們的下一代 SoC。

Upon completion of this development milestone, we expect to recognize the final milestone as an R&D credit, which will reduce our reported OpEx in the fourth quarter. Following the planned delivery production samples early next year, the new SoC will go into volume production the second half of 2024.

完成這項發展里程碑後，我們預計將最後一個里程碑視為研發積分，這將減少我們報告的第四季度營運支出。繼計劃明年初交付生產樣品後，新 SoC 將於 2024 年下半年投入量產。

Shifting to an update on our Pixelworks Shanghai subsidiary (technical difficulty), we are now in the final preparation and tutoring process that is required for an application for listing to be filed. Getting to where we are today has taken roughly two years and countless hours of hard work by numerous members of our team. With respect to the larger Pixelworks organization and our Shanghai subsidiary being ready, we believe we are effectively there.

接下來是 Pixelworks 上海子公司的最新情況（技術難度），我們現在正處於提交上市申請所需的最後準備和輔導過程中。我們取得今天的成就，花了大約兩年的時間，以及我們團隊眾多成員無數小時的努力。就更大的 Pixelworks 組織和我們的上海子公司而言，我們相信我們已經有效地做到了這一點。

As with any IPO on a major exchange, underlying market conditions play an important role in their ultimate timeline. Given the current environment for technology IPOs in China, we are closely monitoring market conditions (technical difficulty) sponsor CITIC Securities. While a definitive decision has not yet been made to the respect of the timing for filing an application to list, our continued plan is to pursue a local listing of our Pixelworks Shanghai subsidiary when we believe market conditions are supportive.

與在主要交易所進行的任何首次公開募股一樣，基礎市場條件在其最終時間表中發揮著重要作用。鑑於目前中國科技股IPO的環境，我們正密切關注市場狀況（技術難度）保薦人中信證券。雖然尚未就提交上市申請的時間做出最終決定，但我們的持續計劃是在我們認為市場條件有利時尋求 Pixelworks 上海子公司在當地上市。

In closing, despite recently heightened macro uncertainty, including indications and weaker global demand and a slower ongoing recovery in China, we remain confident about our near-term outlook for sustained growth, especially in our mobile business. Specific to the fourth quarter, our current order backlog (technical difficulty) visual processors, fully support achieving continued double-digit sequential growth in mobile, while also returning to solid year over year top line growth. Even with mobile poised to continue to become an increasing percentage of our overall business, we remain committed to and (technical difficulty) margin expansion in conjunction with our top line growth over the next several quarters.

最後，儘管近期宏觀不確定性加劇，包括各種跡象、全球需求疲軟以及中國持續復甦放緩，但我們對近期持續成長前景仍然充滿信心，尤其是在我們的行動業務方面。具體到第四季度，我們目前的訂單積壓（技術難度）視覺處理器，完全支援行動業務實現持續兩位數的環比成長，同時也恢復了同比穩健的營收成長。即使行動業務在我們整體業務中所佔的比例將繼續增加，我們仍然致力於在未來幾季實現利潤成長（技術難度）以及營收成長。

Overall, our team continues to execute well on strategic initiatives, which have been key to enabling our renewed growth during a broadly challenging environment. I'm pleased with the recent achievements (technical difficulty) all important milestones as well as our expectations to close out the year with a strong fourth quarter. With that, I'll hand the call to Haley to review the financials and provide our fourth quarter guidance.

總體而言，我們的團隊繼續出色地執行策略舉措，這是我們在充滿挑戰的環境中實現新成長的關鍵。我對最近的成就（技術難度）、所有重要的里程碑以及我們以強勁的第四季度結束今年的期望感到高興。接下來，我將致電 Haley，以審查財務狀況並提供我們的第四季度指導。

Thank you, Todd. Revenue for the third quarter of 2023 (technical difficulty) sequentially to $16 million from $13.6 million in the second quarter and was lower compared to $17.6 million in Q3 of 2022. As Todd previously highlighted, the sequential increase in the third quarter revenue was driven by continued strong growth as well as seasonally higher demand in the home and enterprise market.

謝謝你，托德。 2023 年第三季的收入（技術難度）從第二季的1,360 萬美元環比增至1,600 萬美元，低於2022 年第三季的1,760 萬美元。正如托德之前強調的那樣，第三季收入的環比增長是由於家庭和企業市場持續強勁增長以及季節性需求增加。

The breakdown of revenue in the third quarter was as follows. Revenue from mobile increased 20% sequentially to approximately $8.3 million, which was a record quarter in terms of mobile revenue and also the contribution of a record 52% of total revenue.

第三季的收入明細如下。行動收入季增 20%，達到約 830 萬美元，該季度行動收入創歷史新高，佔總收入的比例也創歷史新高 52%。

Home and enterprise revenue was approximately $7.8 million, an increase of 16% sequentially from the prior quarter. Within home and enterprise, sales into the projector end market represented over 95% of the business (technical difficulty). Third quarter non-GAAP gross profit margin expanded 260 basis points sequentially to 43.1% from 40.5% in the second quarter of 2023 and compared to 49.8% in the (technical difficulty) quarter 2022.

家庭和企業收入約為 780 萬美元，比上一季成長 16%。在家庭和企業中，投影機終端市場的銷售佔業務的95%以上（技術難度）。第三季非 GAAP 毛利率季增 260 個基點，從 2023 年第二季的 40.5% 增至 43.1%，而 2022 年（技術難度）季為 49.8%。

As discussed on our prior conference call, during the third quarter, we began passing through an increased portion of the higher cost of materials that we previously chose not to immediately push through to our customers. Combined with the anticipated benefits from higher unit volumes (technical difficulty) as we grow top line revenue, we expect to achieve continued incremental improvement in gross margin over the next several quarters.

正如我們在先前的電話會議上所討論的，在第三季度，我們開始將較高成本的材料中的一部分轉嫁給我們，而我們之前選擇不立即轉嫁給我們的客戶。結合我們隨著營收成長而增加單位產量（技術難度）所帶來的預期收益，我們預期未來幾季毛利率將持續逐步提高。

Non-GAAP operating expenses were $13.3 million in the third quarter compared to $10.7 million in the prior quarter and (technical difficulty) quarter of 2022. With respect to the higher sequential OpEx in the third quarter, as a reminder, operating expenses in the second quarter benefited from a $1.9 million credit to R&D related to our co-development agreement.

第三季的非GAAP 營運支出為1,330 萬美元，而上一季和2022 年（技術難度）季度的營運支出為1,070 萬美元。關於第三季較高的連續營運支出，需要提醒的是，第第二季的營運支出該季度受益於與我們的共同開發協議相關的 190 萬美元研發信貸。

On a non-GAAP basis, third quarter 2023 net loss was $5.7 million or a loss of $0.10 per share compared to a net loss of $4.8 million or a loss of $0.09 per share in the prior quarter, and a net loss of $3.2 million or a loss of $0.06 per share in the year ago quarter. Adjusted [EBITDA] (technical difficulty) of 2023, was a negative $5 million compared to a negative $4 million in the second quarter and a negative $2.1 million in the third quarter of 2022.

以非公認會計準則計算，2023 年第三季淨虧損為570 萬美元，即每股虧損0.10 美元，而上一季淨虧損為480 萬美元，即每股虧損0.09 美元，上一季淨虧損為320 萬美元，即每股虧損320 萬美元。去年同期每股虧損 0.06 美元。 2023 年調整後 [EBITDA]（技術難度）為負 500 萬美元，而 2022 年第二季為負 400 萬美元，第三季為負 210 萬美元。

Turning to the balance sheet, we ended the quarter with cash and cash equivalents of $50.3 million. And the company continued to have no outstanding debt. Shifting to our current expectations and guidance for the fourth quarter of 2023, based on recent order trends in our current backlog, we anticipate fourth quarter total revenue to be in a range of between $19 million and [$21 million.] At the midpoint of this range, total revenue would represent an increase of approximately 25% over the third quarter, driven by expected sequential growth in both our mobile and home and enterprise end markets.

轉向資產負債表，本季末我們的現金和現金等價物為 5,030 萬美元。該公司仍然沒有未償債務。轉向我們對 2023 年第四季度的當前預期和指導，根據我們當前積壓訂單中的最新訂單趨勢，我們預計第四季度總收入將在 1900 萬美元至 [2100 萬美元]之間。在我們的移動、家庭和企業終端市場預期連續成長的推動下，總營收將比第三季成長約25%。

Total revenue at the midpoint would also (technical difficulty) growth, with revenue being up approximately 18% over the fourth quarter of 2022. In terms of gross profit margin, consistent with my earlier remarks, we expect to drive incremental gross margin expansion in the fourth quarter and also throughout 2024.

中點的總收入也會（技術難度）成長，營收比 2022 年第四季成長約 18%。就毛利率而言，與我先前的言論一致，我們預計將推動毛利率增量擴張第四季以及整個2024 年。

Specific to the fourth quarter, we anticipate non-GAAP gross profit margin to be between 44% and 46%. We expect operating expenses in the fourth quarter to range between $11.5 million and $12.5 million on a non-GAAP basis. Note this range reflects our expectation to complete the last scheduled milestone related to our co-development agreement before year end, which will be recognized as a credit to R&D expense.

具體到第四季度，我們預計非 GAAP 毛利率在 44% 至 46% 之間。根據非公認會計原則，我們預計第四季的營運費用將在 1,150 萬美元至 1,250 萬美元之間。請注意，這個範圍反映了我們期望在年底前完成與我們的共同開發協議相關的最後一個預定里程碑，這將被確認為研發費用的貸項。

Lastly, we expect fourth quarter non-GAAP EPS (technical difficulty) per share and a loss of $0.03 per share. That completes our prepared remarks. And we look forward to taking your questions. Operator, please proceed with the Q&A session. Thank you.

最後，我們預計第四季非 GAAP 每股每股收益（技術難度）為 0.03 美元。我們準備好的發言就到此結束了。我們期待回答您的問題。接線生，請繼續進行問答環節。謝謝。

(Operator Instructions) Suji Desilva, Roth MKM.

（操作員指令）Suji Desilva，Roth MKM。

Hi, Todd. Hi, Haley. Congratulations on the progress here. I apologize (technical difficulty) instance some interference when you were talking about the outlook. Can you just repeat the revenue guide real quick, sorry about that, in the segments?

嗨，托德。嗨，海莉。恭喜這裡的進展。我很抱歉（技術困難）在您談論前景時造成一些幹擾。您能否快速重複收入指南，對此感到抱歉，在各個細分市場中？

Yeah. Well, we don't guide by segment. But the revenue guidance's $19 million to $21 million.

是的。嗯，我們不按細分市場進行指導。但收入指引為 1,900 萬至 2,100 萬美元。

Okay, I thought I heard something about 18% sequential. I wasn't sure what that was.

好吧，我想我聽到了大約 18% 的連續性。我不確定那是什麼。

Yeah -- oh, go ahead.

是的——哦，繼續吧。

That was me. And I think that was mobile.

那是我。我認為那是移動的。

Mobile, got it. Got it. And then the pricing actions that you guys have done in terms of being able to pass through some of the cost, where are we in that process in terms of recovering to prior pricing versus some of the -- to match the cost increases that you've seen through the supply constraints?

手機，明白了。知道了。然後，你們在能夠轉嫁部分成本方面所做的定價行動，在恢復到之前的定價方面，我們在這個過程中處於什麼階段——以匹配你們的成本增加。已經看透供應限制了嗎？

Well, can you be a little more specific, Suji? What are you asking me?

好吧，Suji，你能說得更具體一點嗎？你在問我什麼？

I'm sure there's a lag here, Todd, in trying to catch up to the cost adjustments in terms of getting pricing back to where our gross margin would be similar to past levels. I'm just curious how long, I guess, that process will take.

托德，我確信在努力趕上成本調整以使定價回到與過去水平相似的水平方面存在滯後。我只是好奇這個過程需要多長時間。

Well, I think as we talked about last call, our goal was to get it by the end of next year (technical difficulty) the mid-50s, by the end of 2024, so a steady increase. And it's not through just price increases, Suji. It's through a culmination of rationalizing some pricing, but also introducing new products that have better margin profiles.

好吧，我認為正如我們談到的最後一次電話會議一樣，我們的目標是在明年年底（技術難度）到 2024 年底之前達到 50 多歲，因此穩步增長。蘇吉，這不僅僅是透過漲價來實現的。這是透過合理化一些定價，同時推出具有更好利潤狀況的新產品來實現的。

Okay, and then just maybe the broader year strength in mobile, I'm trying to contrast that with the overall demand environment in China. Has the China smartphone demand environment returned to normal or are you guys running uphill in what you still consider a weaker demand environment there?

好吧，然後也許是行動領域更廣泛的年度實力，我試圖將其與中國的整體需求環境進行對比。中國智慧型手機需求環境是否已經恢復正常，或者你們仍然認為那裡的需求環境疲軟，正在走上坡路？

Well, I think you've seen other (technical difficulty) more broadly exposed participants on previous calls talk about that their inventory is finally cleaning up. And they expect, because their inventory cleaning up, that they're going to start to show some better numbers. I wouldn't call it vigorous growth. But I would -- it's going to get a little bit better.

好吧，我認為您已經在之前的電話會議中看到其他（技術難度）更廣泛暴露的參與者談論他們的庫存終於清理乾淨了。他們預計，由於庫存清理，他們將開始展示一些更好的數字。我不會稱之為蓬勃發展。但我會——情況會好一點。

If you followed the various analysts from Gartner, et cetera, people have the mobile phone industry next year pegged at anywhere between a 6% to 12% unit growth. We haven't seen it yet. If you really look at the numbers that came out for Q3 and the guidance for Q4, I would say that the market's so-so.

如果您關注 Gartner 等機構的各種分析師，人們預計明年手機產業的銷售成長率將在 6% 到 12% 之間。我們還沒有看到它。如果你真的看看第三季的數據和第四季的指導，我會說市場一般。

So specific to Pixelworks, what we're seeing is, I think we are starting to see a broader participation of models that want to incorporate this improved mobile gaming experience. And you should see -- the phones that we launched, the three I just mentioned, they use last year's, or the beginning of this year's, actually, flagship EPs from both MediaTek and Qualcomm.

對於 Pixelworks，我們所看到的是，我認為我們開始看到希望融入這種改進的行動遊戲體驗的模型更廣泛的參與。你應該會看到——我們推出的手機，我剛才提到的三款，他們使用的是去年或今年年初的，實際上是聯發科和高通的旗艦 EP。

They (technical difficulty) storage, DRAM, and flash. And I mean ample, quite a bit, reasonably high quality All LED displays, 1.5K, 120 or 144 frames per second displays, and they put reasonable quality cameras. And they sell these (technical difficulty) phones, 6.5-inch screen phones. But they'll sell them from $350 to $415 ASPs.

他們（技術難度）儲存、DRAM、快閃記憶體。我的意思是充足的、相當多的、相當高質量的全 LED 顯示屏、1.5K、每秒 120 或 144 幀的顯示屏，並且它們配備了質量相當高的攝像頭。而且他們賣這些（技術難度）手機，6.5吋螢幕的手機。但他們的售價從 350 美元到 415 美元不等。

And so we call this the premium segment. (technical difficulty) all these customers have flagship models too that they sell at a much higher ASP. We are included in some of these flagships as well. But the premium models seem to be getting a lot more -- from our exposure, I can only talk about our exposure, seem to be getting a lot more traction with the consumer.

所以我們稱之為高端細分市場。 （技術難度）所有這些客戶也都有旗艦型號，它們的售價要高得多。我們也被納入其中一些旗艦產品。但高階車型似乎越來越多——從我們的曝光度來看，我只能談論我們的曝光度，似乎對消費者的吸引力更大。

This could be countercyclical. This could be given that the economy is struggling in China. And today, up to today, all of our models have been targeted in China.

這可能是反週期的。這可能是因為中國經濟正陷入困境。而今天，直到今天，我們所有的車型都瞄準了中國。

That will change. We're going to start being included in international models. But I have a feeling the consumer in China (technical difficulty) and you get a lot of value for these models that I'm talking about. Whether that continues into next year, we still see reasonably robust demand for us, both for unit growth and ASP growth as we introduce new higher ASP products.

那將會改變。我們將開始被納入國際模型中。但我有一種感覺，中國的消費者（技術難度）會從我正在談論的這些模型中獲得很多價值。無論這種情況持續到明年，隨著我們推出新的更高平均售價的產品，我們仍然看到對單位成長和平均售價成長的相當強勁的需求。

All right. Thanks, Todd. Thanks, Haley.

好的。謝謝，托德。謝謝，海莉。

Quinn Bolton, Needham.

奎因·博爾頓，李約瑟。

Hey, guys. This is Nick Doyle on for Quinn. Congrats on the progress also. I also wasn't able to hear the EPS guide. I heard the down $0.03. I didn't hear the first part.

大家好。我是奎因的尼克·多伊爾。也祝賀你的進步。我也聽不到 EPS 指南。我聽說下跌了 0.03 美元。我沒聽到第一部分。

Okay, the EPS guide is -- this is non-GAAP EPS, $0.07 loss to $0.03 loss.

好的，每股收益指南是——這是非 GAAP 每股收益，虧損 0.07 美元到 0.03 美元。

Thank you. So the home and enterprise was seasonally strong in third quarter. But it's unusually up in the fourth quarter despite this inventory correction you're talking about with the digital projector. Could you just talk about how Q4 will be up sequentially? What's driving that?

謝謝。因此，家庭和企業在第三季表現強勁。但儘管您正在談論數位投影機的庫存調整，但第四季度的銷售量卻異常上升。能簡單談談Q4將如何依序上漲嗎？是什麼推動了這一點？

I think it's -- I'll let Haley comment. I think it's -- we don't really forecast by sector. We're (technical difficulty). That's where I prepared remarks.

我認為——我會讓海莉發表評論。我認為我們並沒有真正按行業進行預測。我們是（技術難度）。這就是我準備要發言的地方。

Yeah, I did say that it was both mobile and home and enterprise would be up sequentially in the fourth quarter. But most of that is coming from mobile. Home and enterprise is up a little bit. But most of the growth in the fourth quarter compared to (technical difficulty) for the third mobile.

是的，我確實說過行動、家庭和企業的成長將在第四季度連續成長。但其中大部分來自行動裝置。家庭和企業略有上漲。但第四季的成長大部分與第三移動（技術難度）相比。

Okay. Could you talk about yesterday's MediaTek announcement, related announcement? I guess this Demensity 9300's using your VPU and software. Is that incremental to the software contributions we're used to seeing?

好的。能否談談昨天聯發科的公告，相關公告？我猜這個 Demensity 9300 使用的是你們的 VPU 和軟體。這是否是我們習慣看到的軟體貢獻的增量？

So understand, when we sell our visual processor, we also include software. There are a few customers we sell software only to. That is becoming a smaller percentage of the total phones we ship into. But when we collaborate with both MediaTek and Qualcomm, we make sure that all of our software works as an independent software vendor on their platform. So that when we engage with customers, a solution is effectively ready to go.

所以請理解，當我們銷售視覺處理器時，我們也包括軟體。我們只向少數客戶銷售軟體。這在我們出貨的手機總數中所佔的比例越來越小。但當我們與聯發科和高通合作時，我們確保我們的所有軟體都能作為獨立軟體供應商在他們的平台上運作。因此，當我們與客戶互動時，解決方案實際上已準備就緒。

Right, okay. So that -- it read like this was a software-specific win. Is that accurate?

對了，好吧。所以——讀起來就像這是一個特定於軟體的勝利。準確嗎？

That's accurate. It's accurate. But like I said, most of that is software (technical difficulty) gets our VPU, when we get design wins with our VPU.

這是準確的。這是準確的。但就像我說的，當我們用我們的 VPU 獲得設計勝利時，大部分是軟體（技術難度）來獲得我們的 VPU。

Okay. And if could ask another, just a high-level question, could you just again discuss your gaming strategy. Is the IRX gaming platform expected to drive now gaming platform-related revenues via partnership or is it meant to broaden Pixelworks' X5, X7 reach using popular games to drive hardware adoption? Thanks.

好的。如果可以問另一個問題，只是一個高級問題，您能否再次討論您的遊戲策略。 IRX 遊戲平台是否有望透過合作夥伴關係推動遊戲平台相關收入，或者是否意味著利用流行遊戲來擴大 Pixelworks 的 X5、X7 範圍，以推動硬體採用？謝謝。

So today, I can't speak about too far into the future, but for today and in the next year, it is purely meant to provide differentiation, traction, and demand for our visual processors. The more ecosystem partners, top 10 games that optimize their game to take advantage of features on our visual processor that can prove the immersive experience while maintaining very low power consumption, system power consumption, the more the OEMs prefer to adopt it. So it's reinforcing. It is not by itself meant to be a independent revenue generator.

所以今天，我不能談論太遠的未來，但對於今天和明年，它純粹是為了為我們的視覺處理器提供差異化、牽引力和需求。生態系統合作夥伴越多，優化其遊戲以利用我們的視覺處理器上的功能的前10 名遊戲，可以在保持非常低的功耗、系統功耗的同時證明沉浸式體驗，OEM 廠商就越願意採用它。所以它是加強的。它本身並不意味著成為一個獨立的收入來源。

Okay. That makes a lot of sense. If I can sneak one more in there, margin keeps improving. And a big chunk of that was through passing on the cost. Do you expect to pass on additional costs next quarter?

好的。這很有意義。如果我能再偷偷進去一點，利潤率就會不斷提高。其中很大一部分是透過轉嫁成本來實現的。您預計下個季度會轉嫁額外成本嗎？

So when we do that, usually our customers are booking orders out anywhere between 18 and 26 weeks lead time. So when we start to roll out either new devices or new pricing (technical difficulty), it usually doesn't take effect for a period of time. There's a lag effect, right? Because they've already -- it doesn't affect the current backlog.

因此，當我們這樣做時，我們的客戶通常會在 18 至 26 週的交貨時間內預訂訂單。因此，當我們開始推出新設備或新定價（技術難度）時，通常會在一段時間內不會生效。有滯後效應吧？因為他們已經——這不會影響當前的積壓。

And so we have rolled out pricing for an extended period of time. As it gets traction with new orders, margins will improve from that pricing. Also we have roadmap devices as we introduce. And production increases on those new devices, the margin profile on those devices is better than past devices. So a combination of the two things are what provides us margin improvement. We do expect to see a gradual improvement over the next several quarters.

因此，我們在很長一段時間內推出了定價。隨著新訂單的吸引力，該定價的利潤率將會提高。正如我們所介紹的，我們也有路線圖設備。這些新設備的產量增加，這些設備的利潤狀況比過去的設備更好。因此，這兩件事的結合為我們帶來了利潤率的提高。我們確實預計未來幾季會逐步改善。

Thanks, guys.

多謝你們。

Yeah, thanks, Nick.

是的，謝謝，尼克。

Richard Shannon, Craig-Hallum.

理查德·香農，克雷格·哈勒姆。

Hi, Todd and Haley. Thanks for taking my questions. think I'll start with the first question similar to what the other two asked, which is, Haley, your prepared remarks were very garbled. I didn't catch your OpEx or your gross margins numbers either. So could you repeat them for me, please?

嗨，托德和海莉。感謝您回答我的問題。我想我會從第一個問題開始，類似於其他兩個問題，即海莉，你準備好的言論非常混亂。我也沒有了解您的營運支出或毛利率數據。那你能為我重複一遍嗎？

Okay, yeah. Sorry about that. So guidance for the fourth quarter for our gross margin is 44% to 46%. And OpEx guidance for the fourth quarter is $11.9 million to $12.5 million on a non-GAAP basis. And then I just had pointed out on that we do expect to have the final milestone achieved in our co-development agreement. So there'll be a credit recognized in Q4, which is why it's down from Q3.

好吧，是的。對於那個很抱歉。因此，我們第四季毛利率的指導值為 44% 至 46%。以非 GAAP 計算，第四季營運支出指引為 1,190 萬至 1,250 萬美元。然後我剛剛指出，我們確實希望在我們的共同開發協議中實現最後的里程碑。因此，第四季度將會有一項信用得到確認，這就是為什麼它比第三季度下降。

Okay. I apologize, Haley, but it was garbled again. Did you say 11 after the 12 and our OpEx?

好的。我很抱歉，海莉，但它又出現了亂碼。您是說 12 後面的 11 以及我們的營運支出嗎？

Yeah. Wow, I'm sorry about that.

是的。哇，對此我很抱歉。

Yeah, that one wasn't garbled, so no problem. Let's see here. Going off the topic of financial structure here, I think for the first time in a while, we can start talking about thinking about breakeven model for you guys. And so I want to get your best sense of what that looks like. You've talked about gross margins last quarter, you are getting into the 50s. Maybe give us a sense of where that baseline for OpEx goes. And then how do we get to a breakeven level here, Haley or Todd, please?

是的，那個沒有亂碼，所以沒問題。讓我們看看這裡。在這裡偏離財務結構的話題，我想這是一段時間以來我們第一次開始討論為你們考慮盈虧平衡模型。所以我想讓你最好地了解它是什麼樣子的。你談到了上個季度的毛利率，現在已經進入了 50 年代。也許能讓我們了解營運支出的基線在哪裡。那麼，海莉或託德，我們如何達到收支平衡？

I'll take it, Haley. So we are keeping tight on OpEx. We are trying to do a lot with a little. I mean, if you look at what our game plan is, and I haven't been super detailed and probably nor will I in the short term, on TrueCut, it is an ambitious plan. And it's an ambitious plan with a very small core team.

我會接受的，海莉。因此，我們對營運支出保持嚴格控制。我們正在嘗試用一點點做很多事情。我的意思是，如果你看看我們的遊戲計劃是什麼，我還沒有非常詳細，短期內可能也不會，在 TrueCut 上，這是一個雄心勃勃的計劃。這是一個雄心勃勃的計劃，核心團隊很小。

It is making headway. And I would suggest the same thing in mobile, our plan with the IRX ecosystem. And we expect within a year from now to have upwards of 20 top tier gains in the mobile gaming community.

它正在取得進展。我建議在行動領域也採取同樣的做法，即我們針對 IRX 生態系統的計畫。我們預計從現在開始的一年內，行動遊戲社群將有超過 20 個頂級收益。

Fully (technical difficulty) our SDK, our family of processors, including -- we just introduced the X7 Gen 2. There will be another flagship VPU launched (technical difficulty) quarter of next year. We will be sampling customers probably in Q2 of next year.

完全（技術難度）我們的 SDK、我們的處理器系列，包括——我們剛剛推出了 X7 Gen 2。明年季度將推出另一個旗艦 VPU（技術難度）。我們可能會在明年第二季對客戶進行抽樣。

And so when we go out and suggest that we want to ramp up upwards of top 20 tier games and have that SDA work across (technical difficulty), the processors, so that would be -- there will be X7, X7 Gen 2, this new device, and our older X5 Pro, which you will see the X5 Pro launched in some newer interesting models that are probably targeting a different demographic in the next year.

因此，當我們出去建議我們想要提升排名前 20 的遊戲並讓 SDA 跨（技術難度）處理器工作時，那麼就會有 X7、X7 Gen 2，這個新設備，以及我們舊的X5 Pro，您將看到X5 Pro 在一些更新的有趣型號中推出，這些型號可能會在明年針對不同的人群。

So what I'm trying to articulate is it's an ambitious plan with a small team. So in both categories, and we are trying to hold tight on OpEx through that. Because we would like to get to breakeven and profitability sooner than later.

所以我想表達的是，這是一個由小團隊組成的雄心勃勃的計劃。因此，在這兩個類別中，我們都試圖透過這一點來控制營運支出。因為我們希望早日實現收支平衡和獲利。

So a lot of variables, do I feel the opportunity is too great and we start spending more OpEx? Do I hold the line, okay? Are we able to get back to the mid-50s sooner than target or later? And does revenue grow? With all that in play, I would suggest as we approach $25 million, $26 million in revenue with all on the mix, we should be close to break even.

所以有很多變數，我是否覺得機會太大，我們開始花費更多的營運支出？我要堅持住，好嗎？我們能否比目標提早或晚點回到 50 年代中期？收入會成長嗎？考慮到所有這些，我建議當我們的收入接近 2500 萬美元、2600 萬美元時，我們應該接近收支平衡。

Okay, great. That was very helpful, Todd. Thanks for that. I guess touching on a few different topics within mobile here that really revolved around margins and pricing here. I think you've talked about increased pricing over the last few years and few generations of product with higher levels of features here.

好的，太好了。這非常有幫助，托德。感謝那。我想這裡涉及了移動領域的一些不同主題，這些主題實際上圍繞著利潤和定價。我想您已經談到了過去幾年中價格上漲以及幾代具有更高功能水平的產品。

You seem to be alluding to that angle continuing. But it also seems like what you're alluding to is somehow an improved cost structures or least increased value, I guess. So how do we see the progress of ASPs? And then when you can quantify or characterize, how you expect that to go over the next year or more, Todd?

你似乎在暗示那個角度仍在繼續。但我想，您所提到的似乎也是成本結構的改進或價值的增加最少。那我們該如何看待ASP的進展呢？然後，當您可以量化或描述特徵時，您預計未來一年或更長時間會如何發展，托德？

Well, I can give you historical. Haley may have it on the tip of her tongue. I can give you a rough estimate. My guess is, in general, if I go back over a three-year period, and with the guidance we gave for Q4 2023, so this would be [21, 22, and 23,] we probably averaged -- if I look, if I add Soft Iris, and a combination of all of our visual processors, we were probably in the mid-(technical difficulty) ASPs across all platforms.

好吧，我可以給你歷史。海莉可能已經把它掛在嘴邊了。我可以給你一個粗略的估計。我的猜測是，總的來說，如果我回顧過去三年，根據我們為 2023 年第四季度提供的指導，那麼我們的平均值可能是 [21、22 和 23]——如果我看一下，如果我加入Soft Iris，以及我們所有視覺處理器的組合，我們可能會在所有平台上處於中間（技術難度）ASP。

And we probably shipped tender $12 million models. A good chunk of them were software; not the majority, but a good chunk.

我們可能交付了價值 1200 萬美元的投標模型。其中很大一部分是軟體；不是大多數，但是很大一部分。

In 2022, we probably shipped a couple of million (technical difficulty) probably flat on the software model. So we grew hardware model. And we grew the hardware models on higher ASP devices. So we probably averaged low $2 ASP. I mean, we did -- you know what we did. We did $22 million. So if we did 12 million units, probably about $2, a little over.

到 2022 年，我們的出貨量可能會達到數百萬（技術難度），在軟體模型上可能持平。所以我們發展了硬體模型。我們在更高 ASP 的設備上開發了硬體模型。所以我們的平均售價可能較低為 2 美元。我的意思是，我們做到了——你知道我們做了什麼。我們做了 2200 萬美元。因此，如果我們生產 1200 萬台，可能大約是 2 美元，有點多了。

And we just finished off the year, once we close Q4, we meet the guidance we gave, we'll finish up off the year, I don't know, $30 million for the mobile, somewhere around this range. Slightly more units, but probably pushing upper $2 in the AFP across all software and then all of visual processors. I would expect that 2024, you would continue to see at least that kind of growth in ASP and unit volume, probably more in the unit one.

我們剛結束了這一年，一旦我們結束第四季度，我們就達到了我們給出的指導，我們將在這一年結束時，我不知道，移動設備將達到3000 萬美元，大約在這個範圍內。單位稍微多一點，但可能會在 AFP 中所有軟體以及所有視覺處理器上推高 2 美元。我預計到 2024 年，您將至少繼續看到平均售價和單位銷售量的成長，可能在第一單位中成長更多。

Okay, great. That was a great perspective, Todd. Maybe one or two more questions, I'll jump out of the line here. I think you talked about this last conference call as well. But some of your Tier 1s in China are now starting to do cheap phones for international markets using your products. How big of an adder do you expect that to be versus more attached, more models coming from them and their domestic markets?

好的，太好了。這是一個很好的觀點，托德。也許還有一兩個問題，我會在這裡跳出來。我想你也談到了上次電話會議。但你們在中國的一些一級供應商現在開始使用你們的產品為國際市場生產廉價手機。與來自他們及其國內市場的更多附加產品和更多型號相比，您認為這將是一個多大的加法器？

Well, if you look at the -- almost every model we've launched, there's an international version of that; almost everyone, not everyone. And what they (technical difficulty) our chip off the international version. And it's not just the saving the money of our chip in the national version. Their challenge is -- mobile gaming is a very big deal in China. They understand how to market to that audience in China.

好吧，如果你看看我們推出的幾乎所有型號，都會有一個國際版本；幾乎每個人，但不是每個人。他們（技術難度）是我們從國際版本中剔除的。而且不只是國行版我們晶片省的錢。他們面臨的挑戰是──手機遊戲在中國非常重要。他們了解如何向中國受眾進行行銷。

They have struggled because when we say (technical difficulty) country. It's multiple countries. And so they've struggled with how do they go out and put a cohesive marketing plan for mobile gaming. They know they should. They know the demand is there. They've been challenged to how to do it.

他們一直在苦苦掙扎，因為當我們說（技術難度）國家時。是多個國家的。因此，他們一直在努力解決如何走出去並為行動遊戲制定一個有凝聚力的行銷計劃。他們知道他們應該這樣做。他們知道需求是存在的。他們面臨著如何做到這一點的挑戰。

And if they put it down on the PCB and market it, they have to figure out how to market. It's not just this feature, but really, the whole mobile gaming value proposition. And so this is what we're trying to convince them to go do.

如果他們把它放在 PCB 上並進行行銷，他們必須弄清楚如何行銷。這不僅僅是這個功能，而是整個行動遊戲的價值主張。這就是我們試圖說服他們去做的事情。

I would say I've looked -- I've asked almost every customer that has an international version. There are some ODMs that ship actually more internationally than they do domestically. But most of our customers ship more domestically than they do international. But you could -- as a rough guess, if every model we were in, they chose to include us in the international version, our business would dump.

我想說我已經看過了——我問過幾乎所有擁有國際版本的客戶。有些 ODM 的國際出貨量實際上比國內出貨量還要多。但我們大多數客戶的國內出貨量多於國際出貨量。但你可以 - 作為一個粗略的猜測，如果我們的每一個模型，他們都選擇將我們納入國際版本，我們的業務就會傾銷。

Okay, that's fair enough. One last question from me, Todd, and I'll jump off line, on TrueCut. I think the last quarter you talked about the opportunity or the likelihood of having some important announcements by year's end. And I didn't hear that language from you on this call. You did mention some impact from the actors' strike. Is that the reason why you didn't repeat that or just an afterthought and it's still something you expect or can you just clarify and verify those past comments are still active and true currently?

好吧，這很公平。托德，我的最後一個問題，我會在 TrueCut 上跳線。我認為上個季度您談到了年底前發布一些重要公告的機會或可能性。在這次通話中我沒有聽到你說這種話。你確實提到了演員罷工的一些影響。這是您沒有重複這一點的原因還是只是事後的想法，這仍然是您所期望的，或者您可以澄清並驗證那些過去的評論目前仍然有效且真實嗎？

I'm going to be a little evasive. Richard, we are actively engaged in some very important dialogue with our TrueCut platform and the technology. I can't really allude to it any more than that. And I hope something comes out of it. I can't guarantee it will. I feel very confident.

我會有點迴避。 Richard，我們正在積極與 TrueCut 平台和技術進行一些非常重要的對話。我真的不能再提及更多了。我希望能從中有所收穫。我不能保證它會。我感到非常有信心。

I am convinced, through all the interactions we've had, that it is It is not a huge value after that, absolutely. So the value proposition we provide for the type of content that we target and then the displays, whether it is the premium large format theaters or devices that really display content in a more immersive way, it is clear to me, from all these discussions, that the technology is valued.

我確信，透過我們所有的互動，這絕對不是一個巨大的價值。因此，我們為目標內容類型和顯示器提供的價值主張，無論是優質大型影院還是真正以更身臨其境的方式顯示內容的設備，從所有這些討論中我很清楚，技術是有價值的。

So I'm at a point now I don't believe it if this technology won't be adopted to win. And so I left (technical difficulty). I can't tell you exactly when.

所以我現在不相信如果這項技術不能被採用來獲勝。於是我就離開了（技術難度）。我無法告訴你具體時間。

Okay, that's fair enough. And that's certainly understandable. That's all for me. Todd, Haley thank you.

好吧，這很公平。這當然是可以理解的。這就是我的全部。托德，海莉，謝謝你。

Thank you. I'm showing no further questions at this time. I'd now like to turn it back to management for closing remarks.

謝謝。我目前沒有提出任何進一步的問題。我現在想把它轉回給管理階層做總結發言。

Well, thanks, everybody, for joining the call. Thanks to our analysts for the great questions. And we look forward to continuing to discuss our progress next quarter.

好的，謝謝大家加入我們的電話會議。感謝我們的分析師提出的好問題。我們期待下個季度繼續討論我們的進展。

Thank you for your participation in today's conference. This concludes the program. You may now disconnect.

感謝您參加今天的會議。程式到此結束。您現在可以斷開連線。

Portions of this transcript marked (technical difficulty) indicate audio problems.

此文字記錄中標記為（技術難度）的部分錶示存在音訊問題。