Pixelworks Inc (PXLW) 2023 Q4 法說會逐字稿

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

女士們先生們，美好的一天，歡迎參加 Pixelworks, Inc 的 2023 年第四季財報電話會議。我將擔任您今天通話的接線生。 （操作員說明）本次會議正在錄製以供重播之用。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, Jonathan, and 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 fourth quarter of 2023.

謝謝喬納森，下午好，謝謝您參加今天的電話會議。與我一起參加電話會議的是 Pixelworks 總裁兼執行長 Todd Debonis；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，公佈該公司 2023 年第四季度的財務業績。

Before we begin, I'd like to remind you that various remarks we may make -- we make on this call, including those about projected future financial results, economic and market trends, and competitive position constitute forward looking statements. These forward-looking statements and all other statements made on this call that are not historical facts are subject to a number of risks and uncertainties that may cause actual results to differ materially.

在我們開始之前，我想提醒您，我們在這次電話會議上可能發表的各種言論，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，可能導致實際結果出現重大差異。

All forward-looking statements are based on the company's beliefs as of today, Thursday, February 8, 2024. The company undertakes no obligation to update any such statements to reflect events or circumstances occurring after today. Please refer to today's press release, the company's annual report on Form 10-K for the year ended December 31, 2022, and subsequent SEC filings for a description of factors that could cause forward-looking statements to differ materially from actual results.

所有前瞻性陳述均基於本公司截至今天（2024 年 2 月 8 日星期四）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。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。

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. non-GAAP measures exclude amortization of acquired intangible assets and stock comp -- stock-based compensation expense, as well as the tax effect of the non-GAAP adjustments.

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。非公認會計原則措施不包括收購的無形資產和股票補償的攤銷——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。

The company uses these non-GAAP measures internally to assess operating performance. We believe the 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.

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。我們認為，非公認會計準則指標為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, we refer to net loss attributable to Pixelworks, Inc as simply net loss. For additional details and reconciliations of GAAP to non-GAAP net loss and GAAP net loss to adjusted EBITDA, please refer to the company's press release issued earlier today.

另外，請注意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 GAAP 與非 GAAP 淨虧損以及 GAAP 淨虧損與調整後 EBITDA 的更多詳細資訊和調整表，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, please go ahead.

現在，我很高興將電話轉給 Pixelworks 執行長托德，請繼續。

Thank you, Brett. Good afternoon and welcome to everyone joining us today on the phone or webcast.

謝謝你，布雷特。下午好，歡迎今天透過電話或網路廣播加入我們的大家。

Jumping right in, our fourth quarter results marked a strong finish to the year, which was highlighted by the continued momentum and significant growth of our mobile business. Total revenue for the quarter increased 25% sequentially and was up 19% year over year. Our mobile revenue reached a new quarterly record, increasing 44% sequentially and growing more than 200% year over year.

我們第四季的業績標誌著今年的強勁收官，行動業務的持續成長和顯著成長凸顯了這一點。該季度總營收季增 25%，年增 19%。我們的行動收入創下新的季度記錄，季增 44%，年增超過 200%。

In addition to strong top line growth, gross margin expanded for the second consecutive quarter as we continued to execute on certain cost-related initiatives, while also driving increased sales of newer products with higher ASPs and better margin profiles. We expect this gross margin expansion to continue in 2024, as we introduce and ramp shipments of higher-value processors and TrueCut services and licensing.

除了強勁的營收成長之外，由於我們繼續執行某些與成本相關的舉措，毛利率連續第二個季度增長，同時也推動了具有更高平均售價和更好利潤狀況的新產品的銷售增長。隨著我們推出更高價值的處理器以及 TrueCut 服務和授權並增加出貨量，我們預計這種毛利率擴張將在 2024 年持續。

As previously mentioned, the highlight of the past year was the breakout performance of our mobile business, with revenue for the second half of 2023 growing more than 100% year over year. For the full year, mobile revenue grew 33% to a record $30 million, expanding to represent more than half of the total revenue.

如前所述，過去一年的亮點是我們行動業務的突破性表現，2023年下半年營收年增超過100%。全年行動收入成長 33%，達到創紀錄的 3,000 萬美元，佔總收入的一半以上。

Underpinning our momentum in mobile, against a challenging market backdrop for consumer semiconductors, is the differentiated display performance enabled by our visual processing technology. With the superior visual experience being especially prevalent for mobile gaming, we formally introduced Pixelworks' IRX-branded gaming experience and certification program. IRX, which stands for Image Rendering Xcelerator, represents an end-to-end ecosystem solution that has been quickly embraced by leading game engine companies, including Unity and Unreal, as well as top gaming studios, including Nuverse, Tencent, NetEase, and Perfect World. To date, there are eight IRX certified games by these leading game studios that integrate our SDK solution.

在消費半導體充滿挑戰的市場背景下，我們的視覺處理技術帶來的差異化顯示性能支撐著我們在行動領域的發展動能。隨著卓越的視覺體驗在行動遊戲中尤其普遍，我們正式推出了 Pixelworks 的 IRX 品牌遊戲體驗和認證計畫。 IRX代表圖像渲染Xcelerator，代表了一種端到端的生態系統解決方案，已迅速受到Unity和Unreal等領先遊戲引擎公司以及Nuverse、騰訊、網易和Perfect等頂級遊戲工作室的歡迎世界。迄今為止，這些領先的遊戲工作室有八款經過 IRX 認證的遊戲整合了我們的 SDK 解決方案。

Additionally, our current generation mobile visual processors have been individually tuned to optimize the visual performance on another 30 mobile games that have not yet integrated our SDK. IRX certified games integrating our SDK, deliver unparalleled visual quality, enabling a truly immersive gaming experience, while also saving overall system power and providing for longer battery life. The most recent game, Earth: Revival, was announced earlier this week and we expect to see a significant number of new IRX certified games incorporating our SDK as well as IRX tuned games released over the coming year.

此外，我們目前一代的行動視覺處理器已經單獨調整，以優化尚未整合我們 SDK 的另外 30 款行動遊戲的視覺性能。 IRX 認證的遊戲整合了我們的 SDK，可提供無與倫比的視覺質量，實現真正身臨其境的遊戲體驗，同時還節省整體系統功耗並提供更長的電池壽命。最近的遊戲《地球：復興》已於本週稍早發布，我們預計將看到大量採用我們的 SDK 的新 IRX 認證遊戲以及來年發布的 IRX 調整遊戲。

Complementing our engagement with mobile game developers is our expanding product portfolio of IRX-capable mobile visual processors, which are designed to leverage our rendering accelerator SDK, that is integrated into the IRX games. Following the formal introduction of our latest mobile visual processor in October, in early January the OnePlus Ace 3 smartphone became the first device launched incorporating our X7 Gen 2. The X7 Gen 2 is the first to feature our internally developed AI-based high efficiency super-resolution technology. This enables exceptional picture quality with simultaneous operation of up to 144 frames per second and 1.5K resolution for immersive mobile gaming while also maintaining lower power consumption.

我們不斷擴大支援 IRX 的行動視覺處理器產品組合，以補充我們與行動遊戲開發商的合作，這些產品組合旨在利用我們整合到 IRX 遊戲中的渲染加速器 SDK。繼10 月正式推出我們最新的行動視覺處理器之後，1 月初，OnePlus Ace 3 智慧型手機成為首款採用我們的X7 Gen 2 的裝置。X7 Gen 2 是首款採用我們內部開發的基於人工智慧的高效超級處理器的設備。- 解析度技術。這可實現卓越的影像質量，同時運行高達每秒 144 幀和 1.5K 分辨率，實現身臨其境的移動遊戲，同時保持較低的功耗。

For the next phase of our growth, we continue to focus on expanding to global model adoption of our visual processing solutions within our existing Tier 1 handset customers. Our past design wins and growth of our mobile business have historically been in the customers' flagship and premium smartphone models sold domestically within China. Following the December launch of OnePlus' 12 in China, the global version of the OnePlus 12 was launched in January, becoming the first flagship international model to incorporate both our X7 visual processor and IRX certification. Launching a model into multiple international markets, while marketing the benefits of IRX and X7 visual processor in local languages around the world is no easy feat. We believe that this model launch represents a definable moment in the next leg of our growth.

對於下一階段的成長，我們將繼續專注於將我們的視覺處理解決方案在現有的一級手機客戶中擴展到全球模型採用。我們過去的設計勝利和行動業務的成長一直是在中國國內銷售的客戶的旗艦和高階智慧型手機型號中實現的。繼12月在中國推出OnePlus 12之後，OnePlus 12的全球版本於1月推出，成為首款同時採用我們的X7視覺處理器和IRX認證的旗艦國際機型。將一款模型推向多個國際市場，同時以當地語言在全球推廣 IRX 和 X7 視覺處理器的優勢絕非易事。我們相信，這款車型的推出代表了我們下一步發展的一個明確時刻。

While these expansion efforts have been focused on our four existing Tier 1 customers, we also expect an initial program with a new first-time volume mobile OEM later this year. To the extent we are successful in securing additional international models and expanding our customer base, we believe that both will contribute incremental unit volumes, accelerate the ecosystem development, and accelerate our mobile growth.

雖然這些擴張工作主要針對我們現有的四家一級客戶，但我們也預計今年稍後將與新的首次批量行動 OEM 合作開展初始計劃。只要我們成功獲得更多國際型號並擴大我們的客戶群，我們相信兩者都將貢獻增量單位數量，加速生態系統發展，並加速我們的移動增長。

Specific to our expectations for mobile in 2024, we are targeting annual revenue growth of 50%, driven by a combination of increased unit volumes and a favorable mix of newer visual processors with higher ASPs. This growth takes into consideration the recent ecosystem traction and momentum of our IRX based solutions resulting in an increased pipeline of design-ins.

具體到我們對 2024 年行動市場的預期，我們的目標是年收入成長 50%，這主要得益於銷量的增加以及新型視覺處理器與更高 ASP 的有利組合。這一增長考慮到了我們基於 IRX 的解決方案最近的生態系統吸引力和勢頭，從而導致了設計管道的增加。

Turning to our TrueCut Motion platform, which are -- we are just now beginning to commercialize following years of technology development and evangelism within the Hollywood technical community. Given the recent news and subsequent inbound questions, I want to briefly reiterate what TrueCut is and what this technology platform enables.

談到我們的 TrueCut Motion 平台，經過多年的技術開發和在好萊塢技術社群的傳播，我們現在才剛開始商業化。鑑於最近的新聞和隨後的入站問題，我想簡要重申一下 TrueCut 是什麼以及該技術平台的功能。

TrueCut Motion is both a first-of-its-kind and end solution for the creation of cinematic high frame rate content, as well as a delivery platform. It enables filmmakers to fine tune or motion grade the motion look of cinematic content shot by shot, while also eliminating motion playback artifacts. All is part of a standard post-production workflow. This can be done with both new release titles and the remastered re-release of existing titles.

TrueCut Motion 既是用於創建電影高幀率內容的同類首個最終解決方案，也是一個交付平台。它使電影製作者能夠對逐個鏡頭的電影內容的運動外觀進行微調或運動分級，同時消除運動回放偽影。所有這些都是標準後製工作流程的一部分。這可以透過新發行的遊戲和現有遊戲的重新製作重新發行來完成。

The TrueCut Motion delivery platform precisely captures the content creators intended cinematic look and feel in the source. And through device certification ensures consistent delivery and appearance across all screens, from premium large-format theaters to any premium home entertainment screen.

TrueCut Motion 交付平台精確捕捉內容創作者在源中想要的電影外觀和感覺。通過設備認證，可確保從優質大型影院到任何優質家庭娛樂螢幕的所有螢幕上的一致交付和外觀。

As articulated on previous conference calls, establishing the foundational and end ecosystem for TrueCut Motion requires bringing together content creation and content distribution. First theatrical and then to home entertainment devices, in order to deliver a truly cinematic high frame rate experience to consumers. Our announced partnership with Lightstorm Entertainment and the endorsement of James Cameron was a major turning point. This led to TrueCut Motion grading being used in the theatrical re-releases of both the original Avatar and Titanic, as well as Disney's global theatrical release of James Cameron's Avatar: The Way of Water. All of which were released to theaters in 4K HDR and 3D, featuring cinema (technical difficulties).

正如先前的電話會議所闡述的那樣，為 TrueCut Motion 建立基礎和最終生態系統需要將內容創建和內容分發結合在一起。首先是戲院，然後是家庭娛樂設備，以便為消費者提供真正的戲院級高幀率體驗。我們宣布與 Lightstorm Entertainment 合作以及詹姆斯卡麥隆的認可是一個重大轉折點。這導致 TrueCut Motion 調色被用於院線重新上映的原版《阿凡達》和《泰坦尼克號》，以及迪士尼全球院線上映的詹姆斯·卡梅隆的《阿凡達：水之道》。所有這些都以 4K HDR 和 3D 形式在影院上映，以影院為特色（技術困難）。

The global box office success of these three titles was an important first step. Not only did it validate the commercial viability of our TrueCut Motion technology with millions of global consumers in theaters. It also ushered in a broader industry acceptance and started a pivot toward more cinematic high frame rate content.

這三部作品的全球票房成功是重要的第一步。它不僅驗證了我們的 TrueCut Motion 技術在全球數百萬影院消費者中的商業可行性。它還獲得了更廣泛的行業認可，並開始轉向更具電影感的高幀率內容。

In 2023, we focused on the next element of the ecosystem development, to formalize engagements with global home entertainment partners. We've now secured our first such ecosystem partner with our recently announced multi-year agreement with Walt Disney Studios to bring a collection of TrueCut Motion graded titles to select home entertainment devices. Initially available for streaming via the Disney+ app and in the Apple TV store will be two of the three previously mentioned titles. For which the first time can be experienced exactly as James Cameron brought it to the theaters, but now in the home on the recently launched Apple Vision Pro.

2023 年，我們將重點放在生態系統開發的下一個要素，即與全球家庭娛樂合作夥伴正式合作。我們最近宣布與華特迪士尼工作室簽訂多年期協議，現已成為第一個此類生態系統合作夥伴，將一系列 TrueCut Motion 分級影片引入精選家庭娛樂設備。前面提到的三款遊戲中的兩款將首先透過 Disney+ 應用程式和 Apple TV 商店進行串流播放。第一次可以像詹姆斯·卡梅隆 (James Cameron) 將其帶到影院一樣體驗，但現在可以在家中透過最近推出的 Apple Vision Pro 來體驗。

Separately, last week we announced Matthew Vaughn's newest film, Argylle, would be released in select premium theatrical screens worldwide in TrueCut Motion cinematic high frame rate format. Argylle was produced by Apple Original Films in association with MARV and released in theaters globally by Universal Studios.

另外，上週我們宣布馬修沃恩的最新電影《阿蓋爾》將以 TrueCut Motion 電影高幀率格式在全球精選優質影院上映。 《阿蓋爾》由 Apple Original Films 與 MARV 共同製作，並由環球影城在全球影院上映。

With support of multiple filmmakers and leading studios for TrueCut Motion showing in both premium theaters and the home, consumers will get to truly experience the joy of immersive cinematic high frame rate content. We believe this is only the beginning. You can expect additional announcements of new titles and ecosystem partners as we progress throughout the year.

在多家電影製作人和領先工作室的支持下，TrueCut Motion 在高級影院和家庭中放映，消費者將能夠真正體驗身臨其境的電影高幀率內容的樂趣。我們相信這只是一個開始。隨著我們全年的進展，您可以期待更多新遊戲和生態系統合作夥伴的公告。

Shifting to an update on our home and enterprise business, which largely consists of visual processor SoCs for the three LCD digital projector market. Revenue from home and enterprise increased sequentially in the fourth quarter and was in line with our expectations. More generally, in the market dynamics throughout 2023 reflected a prolonged period of inventory adjustment by projector OEMs. Although end demand for digital projectors appears to have stabilized, most of our projector customers are still in various stages of realigning their business following previous component supply imbalances.

轉向我們的家庭和企業業務的更新，其中主要包括針對三液晶數位投影機市場的視覺處理器 SoC。第四季家庭和企業收入季增，符合我們的預期。更普遍的是，2023 年全年的市場動態反映出投影機 OEM 廠商長期的庫存調整。儘管數位投影機的最終需求似乎已經穩定，但我們的大多數投影機客戶在先前的組件供應失衡之後仍處於重新調整業務的不同階段。

Regarding our multi-year co-development project with our largest projector customer. We successfully taped out this next generation SoC in the fourth quarter. Achieving this final development milestone allowed us to recognize an anticipated R&D credit, which reduced our reported OpEx in the quarter. We'll be delivering production samples to the customer in the first quarter and this new SoC will go into volume production in the second half of the year.

關於我們與最大的投影機客戶的多年共同開發專案。我們在第四季成功流片了下一代 SoC。實現這一最終的開發里程碑使我們能夠認識到預期的研發信用，這減少了我們報告的本季營運支出。我們將在第一季向客戶提供生產樣品，這款新的 SoC 將在下半年投入量產。

Overall, we anticipate the projector market to reflect further normalization of customer and channel inventories over the next few quarters, contributing to roughly flat year over year revenue from home and enterprise in 2024. However, additional takeaways include that this continues to be a high-margin profitable and cash generating business for Pixelworks. In addition, we believe our new co-developed chip will increase our market share in the three LCD projector market over the next several years.

總體而言，我們預計投影機市場將在未來幾個季度反映出客戶和通路庫存的進一步正常化，從而導致2024 年家庭和企業收入同比大致持平。然而，額外的結論包括，這仍然是一個高成長率Pixelworks 的利潤獲利和現金產生業務。此外，我們相信我們共同開發的新晶片將在未來幾年增加我們在三螢幕液晶投影機市場的市場份額。

Shifting gears, I want to briefly comment on the status with respect to our Pixelworks Shanghai subsidiary, especially for new investors and those new to our story. As part of our now completed multi-year effort, we have reorganized our existing business operation and employees in China, Japan, Canada, and some in the US into an independent P&L center, with the end goal of the subsidiary pursuing a public listing on the STAR Market in China.

換個主題，我想簡單評論一下我們 Pixelworks 上海子公司的狀況，特別是對於新投資者和那些不熟悉我們故事的人。作為我們現已完成的多年努力的一部分，我們已將中國、日本、加拿大和美國的一些現有業務運營和員工重組為獨立的損益中心，最終目標是該子公司在美國上市中國科創板。

As discussed on the previous conference call. The filing of our application for listing requires suitable market conditions in China, which we will continue to monitor together with our advisors. Today, we are, and we will remain fully prepared to move forward with a local listing when we believe the market conditions in China are supportive.

正如之前電話會議中所討論的那樣。我們提交上市申請需要中國合適的市場條件，我們將與我們的顧問一起繼續監控。今天，當我們相信中國的市場條件有利時，我們已經並將繼續做好充分準備，推動本地上市。

In closing. Over time we believe 2023 will prove to have been a pivotally -- pivotal year for Pixelworks and our growth trajectory. I would like to specifically acknowledge our team's solid execution on our strategic growth initiatives, including the building of two influential ecosystems that will become the foundation of our mobile and TrueCut businesses. Exiting 2023, I believe the company is well poised and better positioned than at any time in my tenure as CEO. We continue to build a strong capable team.

結束時。隨著時間的推移，我們相信 2023 年將被證明是 Pixelworks 及其成長軌跡的關鍵一年。我要特別感謝我們的團隊在策略性成長計畫上的紮實執行，包括建立兩個有影響力的生態系統，這將成為我們行動和 TrueCut 業務的基礎。 2023 年結束時，我相信公司已經做好了準備，並且比我擔任執行長期間的任何時候都處於更好的位置。我們不斷打造一支實力雄厚的團隊。

Collectively, these factors have cleared a path to profitability. Which looks to be achievable this year and then accelerating in 2025. We believe both of these objectives are within reach. We have entered 2024 with strong momentum across our mobile visual processing solutions and IRX certification program, coupled with the recently secured commercial engagements with two major Hollywood studios for our TrueCut Motion platform.

總的來說，這些因素為盈利掃清了道路。這個目標今年有望實現，並將在 2025 年加速實現。我們相信這兩個目標都是可以實現的。進入 2024 年，我們的行動視覺處理解決方案和 IRX 認證計劃勢頭強勁，再加上最近與兩家主要好萊塢工作室就 TrueCut Motion 平台達成的商業合作。

Specific to mobile, we expect to achieve another year of accelerated growth, driven by a combination of increased unit volumes and the continued ramp of new product introductions. As previously communicated, we do anticipate revenue contribution from TrueCut Motion in 2024. However, the size of the contribution will be lumpy as we progress throughout the year. Additionally, our current base case assumes that home and enterprise will be roughly flat in 2024. Also fundamental to achieving non-GAAP profitability in the back half of this year, will be our continued expansion of corporate gross margins and tightly managing OpEx while still adequately funding our existing growth initiatives.

具體到行動領域，我們預計在銷售增加和新產品推出持續增加的共同推動下，將實現另一個加速成長的一年。如同先前所傳達的，我們確實預期 TrueCut Motion 在 2024 年將產生收入貢獻。但是，隨著我們全年的進展，貢獻的規模將是不穩定的。此外，我們目前的基本情境假設家庭和企業業務到 2024 年將大致持平。今年下半年實現非 GAAP 獲利能力的另一個基礎是我們繼續擴大企業毛利率並嚴格管理營運支出，同時仍充分為我們現有的成長計劃提供資金。

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

接下來，我將致電 Haley，以審查財務狀況並提供第一季的指導。

Thank you, Todd. Revenue for the fourth quarter of 2023 increased 25% sequentially to $20.1 million, from $16 million in the third quarter, and increased 19% from $16.9 million in the fourth quarter of 2022. As Todd previously highlighted, the sequential and year-over-year increase in fourth quarter revenue was primarily driven by continued strong growth in mobile.

謝謝你，托德。 2023 年第四季的收入較上一季的 1,600 萬美元增長 25%，達到 2,010 萬美元，較 2022 年第四季的 1,690 萬美元增長 19%。正如托德之前強調的那樣，環比和同比增長第四季營收的成長主要得益於行動業務的持續強勁成長。

Breakdown of revenue in the fourth quarter was as follows. Revenue from mobile increased 44% sequentially to approximately $11.9 million, which represented a quarterly record and a record 59% of total revenue. Home and Enterprise revenue was approximately $8.2 million.

第四季的收入明細如下。行動收入季增 44%，達到約 1,190 萬美元，創季度新高，佔總營收的 59%，創歷史新高。家庭和企業收入約為 820 萬美元。

Third quarter non-GAAP gross profit margin expanded 170 basis points sequentially to 44.8%, from 43.1% in the third quarter of 2023, and compared to 53.3% in the fourth quarter of 2022. As discussed in recent quarters, we expect to continue to drive gross margin expansion by passing through an increased portion of previously incurred higher material costs to customers, as well as improving manufacturing cost efficiencies with our suppliers. We anticipate further benefits to gross margin from a combination of incremental sales of new products with higher margins as well as increased overhead absorption.

第三季非 GAAP 毛利率較上季成長 170 個基點，從 2023 年第三季的 43.1% 增至 44.8%，而 2022 年第四季為 53.3%。正如最近幾個季度所討論的，我們預計將繼續透過將先前產生的較高材料成本的增加部分轉嫁給客戶，以及提高與供應商的製造成本效率，來推動毛利率的成長。我們預計，毛利率將進一步受益於新產品銷售的增加、利潤率的提高以及管理費用吸收的增加。

Non-GAAP operating expenses were $12 million in the fourth quarter compared to $13.3 million in the prior quarter and $10.8 million in the fourth quarter of 2022. During the fourth quarter, we completed the last scheduled milestone related to our co-development agreement with our largest projector customer, resulting in a final credit of $1.3 million to R&D. Excluding the credit, fourth quarter operating expenses would have been effectively flat compared to the prior quarter.

第四季非GAAP 營運費用為1,200 萬美元，而上一季為1,330 萬美元，2022 年第四季為1,080 萬美元。在第四季度，我們完成了與我們的共同開發協議相關的最後一個預定里程碑。最大的投影機客戶，最終為研發提供了 130 萬美元的信貸。排除信貸，第四季的營運支出實際上與上一季持平。

On a non-GAAP basis, fourth quarter 2023 net loss was $2.6 million or a loss of $0.05 per share compared to a net loss of $5.7 million or a loss of $0.10 per share in the prior quarter, and a loss of $0.8 million or a loss $0.01 per share in the year-ago fourth quarter.

以非公認會計準則計算，2023 年第四季淨虧損為260 萬美元，即每股虧損0.05 美元，而上一季淨虧損為570 萬美元，即每股虧損0.10 美元，上一季淨虧損為80 萬美元，即每股虧損80 萬美元。去年第四季每股虧損 0.01 美元。

Adjusted EBITDA for the fourth quarter 2023 was a negative $1.9 million, compared to a negative $5 million in the third quarter and a negative $1 million in the fourth quarter of 2022. Turning to the balance sheet, we ended the quarter with cash and cash equivalents of $47.5 million.

2023 年第四季調整後EBITDA 為負190 萬美元，而第三季為負500 萬美元，2022 年第四季為負100 萬美元。轉向資產負債表，我們在本季結束時持有現金和現金等價物4750萬美元。

Shifting to our current expectations and guidance for the first quarter of 2024. As a reminder, our first quarter results typically reflects seasonality in both the mobile market and the home and enterprise market. Recent order patterns and our current backlog are consistent with this seasonality, and we expect total revenue for the first quarter to be in a range of between $15.0 million and $17.0 million. In addition to this guidance reflecting normal seasonality, I'd like to highlight that at the midpoint of this range, total revenue for the first quarter would represent year-over-year growth of approximately 60%.

轉向我們目前對 2024 年第一季的預期和指導。提醒一下，我們第一季的業績通常反映了行動市場以及家庭和企業市場的季節性。最近的訂單模式和我們目前的積壓訂單與這種季節性相符，我們預計第一季的總收入將在 1500 萬美元至 1700 萬美元之間。除了反映正常季節性的指導之外，我想強調的是，在該範圍的中點，第一季的總收入將同比增長約 60%。

In terms of gross profit margin, as discussed in my earlier remarks, we expect to drive continued gross margin expansion in the current quarter and throughout the year. Specific to the first quarter, we anticipate non-GAAP gross profit margin to increase by more than 600 basis points sequentially and be between 51% and 53%. The expected sequential increase in first quarter gross margin primarily reflects increased shipments of our newest generation mobile visual processor, which has a higher margin profile compared to prior generation mobile chips.

就毛利率而言，正如我之前的演講中所討論的，我們預計本季和全年毛利率將持續成長。具體到第一季度，我們預計非 GAAP 毛利率將季增 600 個基點以上，介於 51% 至 53% 之間。第一季毛利率的預期環比成長主要反映了我們最新一代行動視覺處理器出貨量的增加，與上一代行動晶片相比，該處理器的利潤率更高。

We expect operating expenses in the first quarter to range between $12.5 million and $13.5 million on a non-GAAP basis. As a reminder operating expenses in the fourth quarter had the benefit of the final milestone credit related to our co-development project, and we do not expect additional credits associated with this project going forward.

以非公認會計準則計算，我們預計第一季的營運費用將在 1,250 萬美元至 1,350 萬美元之間。提醒一下，第四季度的營運支出受益於與我們共同開發專案相關的最終里程碑信貸，我們預計未來不會有與該專案相關的額外信貸。

Lastly, we expect first quarter non-GAAP EPS to range between a loss of $0.10 per share and a loss of $0.06 per share. That completes our prepared remarks, and we look forward to taking your questions. Operator, please go ahead and proceed with the Q&A. Thank you.

最後，我們預計第一季非 GAAP 每股盈餘將在每股虧損 0.10 美元到每股虧損 0.06 美元之間。我們準備好的演講到此結束，我們期待回答您的問題。接線員，請繼續進行問答。謝謝。

(Operator Instructions) Suji Desilva, Roth.

（操作員指令）Suji Desilva，Roth。

Hi, Todd. Hi, Haley. Congratulations on the progress here. Maybe you can talk about the revenue. You talked about gross margin profitability in '25. Can you give a sense of what revenue level that might be occurring at roughly?

嗨，托德。嗨，海莉。恭喜這裡的進展。也許你可以談談收入。您談到了 25 年的毛利率。您能否大致了解一下可能出現的收入水平？

Well, I would say that we're going to -- we said that we're going to grow 50% in 2024 in mobile. We haven't given guidance for TrueCut growth, but it's going to grow considerably faster than that. And then we do expect in 2025, home and enterprise will probably have churned through all the inventory issues. We think that we'll actually exit the year without inventory issues in '24, and home and enterprise will go back to probably low double-digit growth in the 2025 timeframe, especially as we start to ramp up our new SoC. So you put it all together, Suji, you're probably looking at top line growth of 50%.

嗯，我想說的是，我們說過我們將在 2024 年行動業務成長 50%。我們還沒有給出 TrueCut 成長的指導，但它的成長速度將會比這快得多。我們確實預計到 2025 年，家庭和企業可能會解決所有庫存問題。我們認為，我們實際上將在 2024 年結束時沒有庫存問題，並且家庭和企業將在 2025 年時間範圍內恢復到可能較低的兩位數增長，特別是當我們開始增加新的 SoC 時。 Suji，把所有這些放在一起，您可能會看到收入成長 50%。

Okay, great. Thanks. And then maybe on the mobile side, you talked about a new smartphone OEM win. Is that a global Tier 1 or is that a new China OEM?

好的，太好了。謝謝。然後也許在行動方面，您談到了新的智慧型手機 OEM 勝利。這是全球一級供應商還是新的中國 OEM？

Repeat the question for me.

給我重複一下這個問題。

I'm sorry. Thought you talked about a new smartphone OEM win in the prepared remarks. I'm wondering if that was another China OEM or if that's a global Tier 1?

對不起。我想您在準備好的演講中談到了新的智慧型手機 OEM 的勝利。我想知道這是另一家中國 OEM 廠商還是全球一級廠商？

Well, they're global Tier 1, they sell around the world.

嗯，它們是全球一級產品，銷往世界各地。

Okay, sounds great. I'm sorry. And then lastly on the gross margins, you talked about the elements that drive the gross margin expansion from here. Where is the mix shift in the mobile processor to a newer mix of mobile processors in the market? And then I guess obviously, there will be other elements contributing to TrueCut and so forth.

好吧，聽起來很棒。對不起。最後關於毛利率，您談到了推動毛利率擴張的因素。行動處理器向市場上更新的行動處理器組合的轉變在哪裡？然後我想顯然，還會有其他元素對 TrueCut 做出貢獻等等。

So let's just focus on Q1 right now. The margin guidance we gave increases the margin by 600 basis points. It really is made up of three elements, and I'll give them back to you in size of magnitude by the largest first.

所以我們現在只關注第一季。我們給予的保證金指導將保證金增加了 600 個基點。它實際上是由三個元素組成的，我將首先按最大的大小將它們返回給您。

The shift to our newest visual processors in mobile, changes the margin profile quite a bit for the mobile business. So that's number one. Number two is the contribution of high-margin services and licensing business from TrueCut. And then number three, we have rolled out a different pricing strategy for our projector OEMs that are volume-based. And based upon this new rollout of pricing, it improves the margin profile across all of the projector product lines.

轉向我們最新的行動視覺處理器，大大改變了行動業務的利潤狀況。所以這是第一。第二是 TrueCut 的高利潤服務和授權業務的貢獻。第三，我們為投影機 OEM 推出了不同的以銷售為基礎的定價策略。基於這項新的定價推出，它改善了所有投影機產品線的利潤。

Okay. Thanks, Todd, thanks Haley, I'll pass it on.

好的。謝謝托德，謝謝海莉，我會把它轉達的。

(Operator Instructions) Quinn Bolton, Needham.

（操作員說明）Quinn Bolton，Needham。

Hey, guys, it's Nick Doyle on for Quinn. Thanks for letting me ask a couple of questions.

嘿，夥計們，尼克·多伊爾 (Nick Doyle) 替補奎因 (Quinn)。謝謝你讓我問幾個問題。

The first one on TrueCut if you can just expand on your expectations for 2024. I understand it's lumpy, but is there a number we can expect? And then are all these contributions going to be split between those services, the remastering and the licensing fees, are there any device royalties in the picture that's further down the road.

第一個是關於 TrueCut 的，如果你能擴展一下你對 2024 年的期望。我知道它是不穩定的，但我們可以期望一個數字嗎？然後，所有這些貢獻都將在這些服務、重新製作和授權費用之間分配嗎？未來是否還會有任何設備版稅。

You guys are amazing. Usually, we don't give any annual guidance, let alone this level of clarity. But thanks for asking the question, Nick. Let me tell you what I will say. What I will say is we're not going to give annual guidance for TrueCut. It's definitely a business now.

你們太棒了。通常，我們不會提供任何年度指導，更不用說這種清晰度了。但謝謝你提出這個問題，尼克。讓我告訴你我要說什麼。我要說的是，我們不會為 TrueCut 提供年度指導。現在這絕對是一門生意。

To give you some color. I would just probably start to guide it way backup. Where's the revenue going to come from in 2024? It's predominantly where we're focused, which is new content -- new quality content. And so maybe I should just repurpose exactly or revisit how we get revenue.

給你一些顏色。我可能會開始引導它備份。 2024年的收入從哪裡來？我們主要關注的是新內容——新的高品質內容。因此，也許我應該重新調整用途，或重新審視我們如何獲得收入。

One we license our technology, and we give services. So we do the motion grading services for these cinematic releases. And so the contracts we sign with the production companies are on a film-by-film basis. It's a service, a post-production service. We provide them and we give them access to our tools. With that, we also license the theatrical rights to that version, that's cinematic high-rate frame rate version of the content.

一是我們許可我們的技術，然後我們提供服務。因此，我們為這些電影版本提供動作分級服務。因此，我們與製片公司簽訂的合約是逐部電影簽訂的。這是一種服務，一種後製服務。我們為他們提供服務，並讓他們能夠使用我們的工具。這樣，我們也授權了該版本的戲院版權，即內容的電影高幀率版本。

The second element of revenue is if a large distribution partner, we announced this relationship with Disney. Wants to distribute those films to home entertainment devices. There is a distribution license involved. And then the third element will be royalties from TrueCut Motion certified devices.

收入的第二個要素是，如果是大型分銷合作夥伴，我們宣布與迪士尼建立這種關係。想要將這些電影分發到家庭娛樂設備。這涉及到分發許可證。第三個要素是 TrueCut Motion 認證設備的版稅。

Today and throughout most of 2024, what we're focused on is the pipeline of content, it's a big deal. And most of that content will be targeted towards theatrical release, premium large-format theatrical release globally. It, whether it be in Dolby cinema theaters globally or CINITY theaters, possibly others. Some of that content will want to make its way to home entertainment devices.

在今天以及 2024 年的大部分時間裡，我們關注的是內容管道，這是一件大事。其中大部分內容將針對戲院上映、全球優質大型戲院上映。無論是全球的杜比影院還是 CINITY 影院，也可能是其他影院。其中一些內容將希望進入家庭娛樂設備。

I mentioned on the prepared remarks that the first couple of films coming to home entertainment devices are coming to the Vision Pro. And I would strongly encourage consumers to go see that experience, go watch Avatar 1 and Avatar 2 on the Apple Vision Pro.

我在準備好的演講中提到，第一批登陸家庭娛樂設備的電影將登陸 Vision Pro。我強烈鼓勵消費者體驗這種體驗，在 Apple Vision Pro 上觀看《阿凡達 1》和《阿凡達 2》。

There's probably today maybe 50 3D titles on the Disney+ streaming app and they've designed an app specifically for the Apple Vision Pro. It's a unique experience. You can select an immersive background, I would suggest you go select a theater background, you will feel like you are in a theater. It is an amazing thing. And watch either Avatar 1 or Avatar 2, they're both an incredible experience on the Apple Vision Pro.

如今，Disney+ 串流應用程式上可能有 50 款 3D 遊戲，他們專門為 Apple Vision Pro 設計了一個應用程式。這是一次獨特的體驗。你可以選擇沉浸式背景，我建議你去選擇劇場背景，你會感覺自己身處在劇場。這是一件了不起的事。無論是觀看《阿凡達 1》還是《阿凡達 2》，在 Apple Vision Pro 上觀看它們都是令人難以置信的體驗。

I would also encourage you to watch some of the other titles, they're pretty good. But there are no other titles that are in high frame rate. My guess is the consumer will notice the difference between cinematic high frame rate and non-cinematic high frame rate.

我還鼓勵您觀看其他一些影片，它們都非常好。但沒有其他遊戲具有高幀率。我的猜測是，消費者會注意到電影高幀速率和非電影高幀速率之間的差異。

So to get back to your original question, we're probably -- I would just guide low single digit millions of dollars right now. It's going to be predominantly service revenue for new theatrical releases where we give the theatrical licensing. If those films start to accelerate for home entertainment, then the guidance would accelerate.

因此，回到你最初的問題，我們可能 - 我現在只會指導低個位數的數百萬美元。這將主要來自於我們授予影院許可的新影院上映的服務收入。如果這些電影開始加速家庭娛樂，那麼指導也會加速。

Thanks a lot for the color. You know I had to ask, Todd. (multiple speakers) --

非常感謝你的顏色。你知道我不得不問，托德。 （多位發言者）——

If you don't ask, you don't get an answer, Nick, and you probably got more color than I was really prepared to give. So hat's off to you.

如果你不問，你就得不到答案，尼克，你可能得到的色彩比我真正準備提供的還要多。所以，向你致敬。

So we're hearing a lot about these new AI phones. Gartner actually came out this week estimating 295 million units in 2024, that's 20% of all shipments expected. So first, would your X7 Gen 2 with the neural network processor, classify as one of those phones. And second, just maybe your thoughts on AI phones in general. I understand you can run LLMs on device, but I don't think consumers understand the benefit. I think people still feeling like, what is this? So maybe just your thought overall.

所以我們聽到了很多關於這些新型人工智慧手機的消息。事實上，Gartner 本週發布預測 2024 年出貨量將達到 2.95 億台，佔預期總出貨量的 20%。首先，將帶有神經網路處理器的 X7 Gen 2 歸類為其中一款手機。其次，也許你對人工智慧手機的整體看法。我知道您可以在設備上運行法學碩士，但我認為消費者不了解其中的好處。我想人們還是會想，這是什麼？所以也許只是你的整體想法。

Well, so the numbers that I think they're quoting are bringing -- I don't know the terminology they're using, I'm going to probably use my own terminology, which is edge-based AI. It's a large language model, but it's been ported for some processing to be done at the edge. Not everything going back to the cloud so you can have a quicker response and answer. My guess is it can't be complex questions to answer right? It's probably could be very simple questions that they can answer on the phone.

嗯，所以我認為他們引用的數字帶來了——我不知道他們使用的術語，我可能會使用我自己的術語，即基於邊緣的人工智慧。它是一個大型語言模型，但已被移植以在邊緣完成一些處理。並非所有內容都會返回雲端，以便您可以獲得更快的回應和答案。我的猜測是，回答起來不可能是個複雜的問題，對嗎？他們可能可以在電話中回答非常簡單的問題。

I think that the ability of AI based phones will increase over time, there's quite a bit of processing power in a phone. None of that is really reflective of what we do. We've been working on AI for motion models for a while, long before this advent of OpenAI and large language model.

我認為基於人工智慧的手機的能力會隨著時間的推移而增強，手機中有相當多的處理能力。這些都不能真正反映我們所做的事情。早在 OpenAI 和大型語言模型出現之前，我們就一直致力於運動模型的人工智慧研究。

And then this rush, the gold rush to heavy duty use GPUs. I mean, I will say if you go look at what we do with TrueCut, the servers that we've been employing for the last four or five years look a lot like a large language model AI server. They're multiple high-end CPUs with -- I think the largest configuration we use in our own servers is eight large NVIDIA GPU cards. And that's where we run our TrueCut algorithms is on these models.

然後是重型使用 GPU 的淘金熱。我的意思是，如果你看看我們對 TrueCut 所做的事情，我們過去四、五年使用的伺服器看起來很像大型語言模型人工智慧伺服器。它們是多個高階 CPU，我認為我們在自己的伺服器中使用的最大配置是八個大型 NVIDIA GPU 卡。這就是我們在這些模型上運行 TrueCut 演算法的地方。

What we do for mobile phones. We are now putting a very specific neural processor. We looked at general purpose neural processors that we could license from various companies that are in the marketplace licensing IP, there's several of them. And a lot of them, very good technology. But we are very focused on really just a couple of advanced algorithms. We felt we could design our own neural processor specific to those algorithms and run it at a higher performance per watt, because it's very important that we keep our power low.

我們為手機所做的事。我們現在正在放置一個非常特殊的神經處理器。我們研究了通用神經處理器，我們可以從市場上許可 IP 的各個公司獲得許可，其中有好幾家。其中有很多，非常好的技術。但我們非常關注實際上只是一些高級演算法。我們認為我們可以針對這些演算法設計自己的神經處理器，並以更高的每瓦性能運行它，因為保持低功耗非常重要。

One of the things we do, we can put simultaneous super resolution scaling on concurrently with our motion processing where we're increasing the frame rate of a rendered game at 40 frames per second. So it's been natively rendered at 40 frames per second, and we can do 120 frame per second output while simultaneously using our AI super resolution processor and SDR to HDR. So we're also converting it from standard dynamic range to high dynamic range.

我們所做的一件事是，我們可以在運動處理的同時進行同步超解析度縮放，將渲染遊戲的幀速率提高到每秒 40 幀。因此它的原生渲染速度為每秒 40 幀，我們可以在使用 AI 超解析度處理器和 SDR 到 HDR 的同時進行每秒 120 幀的輸出。因此，我們也將其從標準動態範圍轉換為高動態範圍。

We can do all of that and we can save about a watt and a half over the phone natively rendering the same game at 800K resolution 60 frames per second. So it's really pretty compelling what we do. Because not only are we taking full advantage of the display that are on these phones, many of these phones like the newest OnePlus 12 is a 2K 120 frame per second display.

我們可以做到所有這些，並且與以 800K 解析度、每秒 60 幀本地渲染同一遊戲的手機相比，我們可以節省大約一瓦半的電量。所以我們所做的事情確實非常引人注目。因為我們不僅充分利用了這些手機上的顯示屏，而且許多手機（例如最新的 OnePlus 12）都配備了 2K 120 幀每秒顯示屏。

There are very few immersive mobile games that can natively be rendered on either Qualcomm or MediaTek and take advantage of the full resolution and frame rate of that display. And if they did, it would burn a lot of power. So the reason they can't take advantage, they usually hit the heat thermal limiter within a phone. If a phone gets too hot, bad thing happen.

很少有沉浸式手機遊戲可以在高通或聯發科上本地渲染並利用該顯示器的全解析度和幀速率。如果他們這樣做，就會消耗大量電力。因此，他們無法利用的原因是，他們通常遇到了手機內的熱量限制器。如果手機太熱，就會發生不好的事情。

So they will clamp down on the native rendering and limit the frame rate, so it doesn't get too hot. By doing what we do, you can take full advantage of the display and still save -- depending on the game, anywhere between one and two watts of power.

因此他們會限制原生渲染並限制幀速率，這樣就不會變得太熱。透過我們所做的事情，您可以充分利用顯示器的優勢，同時仍可節省 1 到 2 瓦的電量，具體取決於遊戲。

So to get back to the original question, AI. What we're doing is very specific, to creating an AI trained model and we can tune to each game. So we can go in and try to make each game look specific and better based upon training with a dataset that we get from the partner, so one of the studios. To make sure that when we are doing our rendering acceleration that the game looks as good as it could be.

回到最初的問題，人工智慧。我們正在做的事情非常具體，創建一個經過人工智慧訓練的模型，我們可以針對每個遊戲進行調整。因此，我們可以根據從合作夥伴（即其中一個工作室）獲得的資料集進行訓練，嘗試讓每款遊戲看起來更具體、更好。確保當我們進行渲染加速時，遊戲看起來盡可能的好。

Lot of answer there. Hopefully it helps on your question.

那裡有很多答案。希望它對您的問題有所幫助。

Thank you.

謝謝。

(Operator Instructions) Richard Shannon, Craig Hallum.

（操作員說明）理查德·香農 (Richard Shannon)、克雷格·哈勒姆 (Craig Hallum)。

Hi guys. Todd and Haley, thanks for taking my questions. I had to jump on the call late with a couple going on at the same time. So hopefully I'm not repeating questions on topics that were already discussed here.

嗨，大家好。托德和海莉，謝謝你們回答我的問題。我不得不很晚才接電話，因為有幾個人同時在通話。所以希望我不會重複這裡已經討論過的主題的問題。

Todd your press release talks about getting to non-GAAP quarterly profitability in the second half of the year. I'm not sure if you could address what that level looks like or kind of the progression of that happening by segments. I'm assuming all of this is coming from -- mobile growth was some clear-cut contribution, but maybe you can detail that, please?

托德在您的新聞稿中談到了下半年實現非公認會計準則季度盈利的問題。我不確定您是否可以解決該等級的情況或按分段發生的進展。我假設這一切都來自——行動成長是一些明確的貢獻，但也許你可以詳細說明一下，好嗎？

Well, I think I'll just repeat what I said. I think I outlined in the previous investor pitch, which is on our website, what the various different businesses would -- the ranges they would have to get at to hit profitability.

好吧，我想我會重複我說過的話。我想我在我們網站上的之前的投資者推介中概述了各種不同的企業會做什麼——他們必須達到的範圍才能實現盈利。

And I think we mapped mobile was -- overall it was I think between $23 million and $26 million in revenue, it's on the low side of that. If there's more contribution from TrueCut and home and enterprise, it's on the high side of that revenue if it's more mobile oriented, right.

我認為我們繪製的行動版收入總體而言在 2300 萬美元到 2600 萬美元之間，處於較低水平。如果 TrueCut 以及家庭和企業有更多的貢獻，如果它更面向移動，那麼收入就很高，對吧。

And so I guess what we're telling you, is we believe we're going to have a quarter, probably the last quarter. If you look at our seasonality, usually Q4, especially with mobile for China, Q4 is our big quarter. We'll probably exceed that target in that mix that I've outlined on the investor presentation.

所以我想我們要告訴你的是，我們相信我們將會有一個季度，可能是最後一個季度。如果你看看我們的季節性，通常是第四季度，尤其是中國的行動市場，第四季是我們的大季度。我們可能會超過我在投資者介紹中概述的混合目標。

Okay. And how do you think about both the attach rates and the increase in ASP in content in mobile processors, transitioning from December quarter to this, let's say, this mythical break-even point in December of this year?

好的。您如何看待行動處理器中內容的附加率和 ASP 成長，從 12 月季度過渡到今年 12 月這個神話般的收支平衡點？

Well, I wouldn't say it's so mythical, Richard. Well, I didn't say it wasn't going to happen. It hasn't happened yet. But we believe it is going to happen, okay. Otherwise, I wouldn't say it.

好吧，我不會說這是那麼神秘，理查。嗯，我並沒有說這不會發生。這還沒有發生。但我們相信這將會發生，好吧。不然的話我也不會說。

Yeah, I know, okay.

是的，我知道，好吧。

So what's the specific question?

那麼具體問題是什麼呢？

Yeah so the question is, what kind of attach rates and what kind of ASP increase do you expect in order to drive to an outcome getting to a breakeven or better point in fourth quarter this year?

是的，所以問題是，您期望什麼樣的附加率和什麼樣的平均售價成長才能推動今年第四季實現盈虧平衡或更好的點？

Well, I don't know that attach rates. But if we ship 5 to 6 million mobile units at 30% higher ASP in a quarter than we did in the fourth quarter, we'll hit the mobile target of the total revenue. If we increase the revenue -- basically we are flat with home and enterprise to Q4 of this year. And then TrueCut contributes $1 million for the quarter. We probably are at that breakeven profitability stage, we're just not that far away. That's why it's not mythical, Richard.

嗯，我不知道附加費率。但如果我們在一個季度內以比第四季高出 30% 的平均售價銷售 500 至 600 萬台行動設備，我們將達到總收入的行動目標。如果我們增加收入——基本上到今年第四季度，我們的家庭和企業收入持平。 TrueCut 在該季度貢獻了 100 萬美元。我們可能正處於損益平衡的獲利階段，只是距離不遠了。這就是為什麼它不是神話，理查德。

Poor choice of words on my end. (technical difficulties) -- didn't believe you. Just always want to -- I want to know what's built into your assumptions, the assumptions word I should've used here.

我的用詞很糟糕。 （技術困難）——不相信你。只是總是想——我想知道你的假設中包含了什麼，我應該在這裡使用假設這個詞。

And I came in on your -- one of your early answer to one of the last question here on TrueCut here. And is that $1 million a quarter? Is that assumed to be somewhat a consistent or modestly growing revenue stream here throughout this year?

我參與了您對 TrueCut 上最後一個問題的早期回答之一。那是每季 100 萬美元嗎？這是否被認為是今年全年收入來源的持續或適度增長？

It will be lumpy, as I said in the prepared remarks, which you probably don't get a chance to hear. It will be very contingent on the pipeline of content. It will accelerate when we line up more distribution partners and we announce home entertainment device licensees. Most of revenue you're going to model this year is all service revenue for content.

正如我在準備好的演講中所說，這將是不穩定的，你可能沒有機會聽到。這將非常取決於內容的管道。當我們聯合更多的分銷合作夥伴並宣布家庭娛樂設備授權商時，這個過程將會加速。今年您要建模的收入大多是內容服務收入。

Okay. But I think over time it's supposed to be largely device or heavily device oriented. Is that fair to think that a few years down the road when things are all (multiple speakers) --

好的。但我認為隨著時間的推移，它應該主要是設備或嚴重面向設備的。認為幾年後一切都會好起來（多位發言者）－這樣的想法公平嗎？

When the business really gets its momentum, yes. When we have a built-out ecosystem and you have multiple home entertainment devices that consumers can take advantage of cinematic high frame rate content, the content that we're building right now with our partners, yes.

當業務真正發展起來時，是的。當我們擁有一個內建的生態系統並且擁有多種家庭娛樂設備時，消費者可以利用電影高幀率內容，也就是我們現在與合作夥伴正在建構的內容，是的。

I would imagine that the royalties from home entertainment devices will be over half the total revenue device or -- excuse me, home distribution. So home distribution partners will be a portion, and then service and theatrical licensing will be another portion.

我想家庭娛樂設備的版稅將超過設備總收入的一半，或者——對不起，家庭發行。因此，家庭發行合作夥伴將是一部分，然後服務和戲院許可將是另一部分。

Okay. And I guess my last question, I'll jump out of line, Todd. As we think about building ecosystem in particularly on the endpoint devices where the long-term revenues are going to be coming from. How do we think about public acknowledgment of new partners coming in here?

好的。我想我的最後一個問題，我會越界，托德。當我們考慮建立生態系統時，特別是在長期收入將來自的端點設備上。我們如何看待大眾對新合作夥伴的認可？

Presumably they have been seeing this ecosystem developed and you've been communicating with them well in advance. These announcements you've had here in the last, just the last couple of weeks, how should we think about this ecosystem developing? How many customers or how many partners on the TV side and other maybe more unique end point display devices should we be looking for over the next months and quarters?

想必他們已經看到了這個生態系統的發展，並且您已經提前與他們進行了溝通。過去幾週，您在這裡發布了這些公告，我們應該如何看待這個生態系統的發展？在接下來的幾個月和幾個季度中，我們應該在電視方面以及其他可能更獨特的終端顯示設備上尋找多少客戶或多少合作夥伴？

Well so this year, let's just not get ahead of ourselves. Let's focus on content right now.

那麼今年，我們就不要超前了。現在讓我們專注於內容。

Right now, we're focused on building out the content, okay. And the content will come from, so far we've announced content with Lightstorm and Universal, and actually with the Universal, Apple Production. You will see new studios that we also -- you'll see the same studios do more content and you'll see new studios added to the mix, okay. So that's the first thing you're going to see.

現在，我們專注於建立內容，好吧。內容將來自，到目前為止，我們已經宣布了與 Lightstorm 和 Universal 的內容，實際上是與 Universal 的 Apple Production 的內容。你會看到我們也有新的工作室——你會看到同樣的工作室製作更多的內容，你會看到新的工作室添加到混合中，好吧。這就是您將看到的第一件事。

Then next thing to look for is, is this content pipeline that we're building being distributed by our partners to any home entertainment devices? That's the next thing you need to really focus on. And then once you see that, then okay, how many home entertainment devices are those distribution partners streaming that content?

接下來要尋找的是，我們正在建立的內容管道是否由我們的合作夥伴分發到任何家庭娛樂設備？這是您接下來需要真正關注的事情。然後，一旦您看到這一點，那麼好吧，這些發行合作夥伴有多少家庭娛樂設備正在傳輸該內容？

Okay, fair enough. Thanks for that perspective, I will jump out of line. Thanks, Todd.

好吧，很公平。感謝您的觀點，我會跳脫常規。謝謝，托德。

Thank you, Richard.

謝謝你，理查。

Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to management for any further remarks.

謝謝。今天節目的問答環節到此結束。我想將該程序交還給管理層以徵求進一步的意見。

Yeah, thank you very much for joining us on the call and hearing about our continued progress. I encourage investors to go to our website and check out the new TrueCut Motion section of our website. It's informative. It will reiterate some of the things I mentioned. And it would probably help you understand our value proposition and how we go to market. Thank you.

是的，非常感謝您參加我們的電話會議並了解我們的持續進展。我鼓勵投資者訪問我們的網站並查看我們網站上新的 TrueCut Motion 部分。這是資訊豐富的。它將重申我提到的一些事情。它可能會幫助您了解我們的價值主張以及我們如何進入市場。謝謝。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們、先生們，感謝你們參加今天的會議。這確實結束了該程式。您現在可以斷開連線。再會。