Pixelworks Inc (PXLW) 2024 Q2 法說會逐字稿

Good day and welcome to the Pixelworks, Inc. second-quarter 2024 earnings conference call. (Operator Instructions) Again, please be advised that today's conference is being recorded.

美好的一天，歡迎參加 Pixelworks, Inc. 2024 年第二季財報電話會議。 （操作員指示）再次請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker, Mr. Brett Perry with Shelton Group Investor Relations. Please go ahead, sir.

現在我想將會議交給您的發言人、謝爾頓集團投資者關係部門的布雷特·佩里先生。請繼續，先生。

Good afternoon, and thank you for joining us on today's call. With me on the call are President are Pixelworks' President and CEO, Todd DeBonis; and Chief Financial Officer, Haley Aman. The purpose of today's conference call is to supplement the information provided in Pixelworks' press release issued earlier today announcing the company's financial results for the second quarter of 2024.

下午好，感謝您參加今天的電話會議。與我一起參加電話會議的有 Pixelworks 總裁兼執行長 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，該新聞稿宣布了該公司 2024 年第二季度的財務業績。

Before we begin, I'd like to remind you that various remarks that we make on the 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, Wednesday, August 7, 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, 2023, 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 8 月 7 日星期三）的信念。請參閱今天的新聞稿、本公司截至 2023 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 expenses, net loss, and net loss per share. Non-GAAP measures exclude restructuring costs and stock-based compensation expense. As the company uses these non-GAAP measures internally to assess operating performance, we believe these non-GAAP measures provide a meaningful perspective on core operating results and underlying cash flow dynamics. We caution investors to consider these measures in addition to and not as a substitute for nor superior to the company's consolidated financial results as presented in accordance with US GAAP.

此外，該公司在本次電話會議期間的新聞稿和管理層聲明將包括對公認會計準則和非公認會計準則術語中的某些措施和財務資訊的討論，包括毛利率、營運費用、淨虧損和每股淨虧損。非公認會計準則指標不包括重組成本和股票補償費用。由於公司內部使用這些非公認會計準則衡量標準來評估營運業績，我們相信這些非公認會計準則衡量標準為核心營運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 call, we refer to net loss attributable to Pixelworks, Inc. As simply net loss for additional details and reconciliations of GAAP to non-GAAP net loss and GAAP net loss to adjusted EBITDA. Please refer to the Company's press release issued earlier today.

另請注意，在公司的整個新聞稿和管理層在本次電話會議期間的聲明中，我們將Pixelworks, Inc. 的淨虧損稱為淨虧損，以了解其他詳細資訊以及GAAP 與非GAAP 淨虧損以及GAAP 淨虧損與調整後EBITDA 的調整。請參閱今天早些時候發布的公司新聞稿。

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

現在，我很高興將電話轉給 Pixelworks 的執行長 Tood DeBonis。請繼續。

Thank you, Brett. Good afternoon and welcome to everyone on the phone and the webcast. We appreciate you joining today's call. As discussed on our conference call in May, we expected the second quarter to be a challenging one due to specific near-term headwinds in our mobile business.

謝謝你，布雷特。下午好，歡迎大家透過電話和網路廣播。我們感謝您參加今天的電話會議。正如我們在 5 月的電話會議上所討論的那樣，由於我們行動業務的近期特定阻力，我們預計第二季將是充滿挑戰的季度。

Earlier today, we reported revenue for the quarter at the midpoint of guidance, reflecting the anticipated pause in orders from a large mobile customer. Gross margin ticked up sequentially remaining above 50% and representing more than 1,000 basis point improvement year over year.

今天早些時候，我們報告了本季收入處於指導值的中點，反映出預計大型行動客戶的訂單將暫停。毛利率環比上升，維持在 50% 以上，年增超過 1,000 個基點。

Operating expenses and bottom line results for the quarter were both better than the midpoint of our guidance. We continue to believe that the current headwinds are primarily near term with signs of initial improvement and sequential revenue growth expected in the third quarter. Acknowledging the current drawdown in quarterly revenue, we have implemented a number of cost reduction actions to better align our operating expenses with near-term revenue levels.

本季的營運費用和淨利結果均優於我們指引的中位數。我們仍然認為，目前的不利因素主要是近期的，有初步改善的跡象，第三季營收預計將持續成長。認識到當前季度收入的下降，我們實施了一系列成本削減措施，以更好地使我們的營運支出與近期收入水準保持一致。

In addition to a series of other measures taken over the last several months to maximize operational efficiencies, we implemented a reduction in head count across all areas of the business, effective June 30. Never an easy action, the reduced head count is anticipated to result in approximately $4 million -- in 4 million of annualized cost savings beginning in the third quarter. Combined with other cost containment measures, we believe the collective expense reductions we've implemented to date will contribute to total OpEx savings of $10 million over the next 18 months.

除了過去幾個月為最大限度提高營運效率而採取的一系列其他措施外，我們還對所有業務領域實施了裁員，並於6 月30 日生效。人數減少約 400 萬美元——從第三季開始每年節省成本 400 萬美元。結合其他成本控制措施，我們相信迄今為止實施的集體費用削減將有助於在未來 18 個月內節省 1,000 萬美元的營運支出總額。

Turning to a review of our mobile business. As previously indicated, second-quarter mobile revenue was down significantly and primarily reflected the impact of a pause in new orders from what had recently been our largest mobile customer. This customer experience experienced unanticipated weaker sell-through of its newly launched smartphone models in the first half of 2024.

轉向我們的行動業務回顧。如前所述，第二季行動收入大幅下降，主要反映了我們最近最大的行動客戶暫停新訂單的影響。 2024 年上半年，其新推出的智慧型手機型號的銷售量出現了意想不到的疲軟。

Although completely unrelated to Pixelworks, this resulted in excess inventory of our visual processors. They are now working down this existing inventory through a combination of prior and recently launched models that incorporate our technology. We continue to be closely engaged with this customer on the evaluation of our upcoming next-gen visual processor and our IRX ecosystem.

儘管與 Pixelworks 完全無關，但這導致我們的視覺處理器庫存過剩。他們現在正在透過結合先前和最近推出的採用我們技術的模型來減少現有庫存。我們將繼續與該客戶密切合作，評估我們即將推出的下一代視覺處理器和 IRX 生態系統。

More broadly within the mobile, our mobile business, we continue to make steady progress on the expansion of our IRX-branded gaming ecosystem. With the goal of enabling a dramatically enhanced visual experience for mobile gaming, we establish the IRX ecosystem to align and promote a collaborative end-to-end approach that benefits all industry participants from gaming studios to smartphone OEMs. Leveraging our IRX rendering acceleration solution, ecosystem partners gained the unique ability to deliver ultra high frame rates, desktop-level photo realism, and high-image resolution without excess device temperature for power consumption.

更廣泛地說，在我們的行動業務領域，我們繼續在擴展 IRX 品牌的遊戲生態系統方面取得穩步進展。為了顯著增強行動遊戲的視覺體驗，我們建立了 IRX 生態系統，以協調和推廣端到端的協作方法，使從遊戲工作室到智慧型手機 OEM 的所有行業參與者受益。利用我們的 IRX 渲染加速解決方案，生態系統合作夥伴獲得了獨特的能力，可以提供超高幀速率、桌面級照片真實感和高圖像分辨率，而不會導致設備溫度過高而導致功耗。

Since our prior conference call, our team completed integration work on two additional IRX mobile games, making a total of 11 IRX-certified mobile games available to date. The most recent of these two IRX-certified games was a product of collaboration with seasoned games to help adapt and optimize a mobile version of the popular game, JX3 Ultimate. Unlike most mobile games created based on existing IP, JX3 Ultimate Mobile innovatively leveraged cross-platform data inheritance to produce for platform, high-quality mobile graphics that are comparable to the PC version.

自上次電話會議以來，我們的團隊完成了另外兩款 IRX 手機遊戲的整合工作，到目前為止，共有 11 款經過 IRX 認證的手機遊戲。這兩款獲得 IRX 認證的遊戲中最新的一款是與經驗豐富的遊戲合作的產品，旨在幫助改編和優化流行遊戲《JX3 Ultimate》的行動版本。與大多數基於現有IP打造的手遊不同，《劍網3終極手遊》創新地利用跨平台資料繼承，為平台製作媲美PC版的高品質手遊畫面。

Separately in June, we announced our latest collaboration with Tencent and its TiMi Studio group on Honor of Kings. For those less familiar with gaming, Honor of Kings is a multiple player online battle arena game that was first launched several years ago. Today, it's literally a household name in China. According to mobile gaming industry experts, Honor of Kings remains the single most play multiplayer game globally. It also ranks number one in revenue generated from in-app purchases.

另外，我們在 6 月宣布了與騰訊及其 TiMi Studio 團隊在《王者榮耀》上的最新合作。對於那些不太熟悉遊戲的人來說，《王者榮耀》是一款多人線上競技場遊戲，幾年前首次推出。如今，它在中國已是家喻戶曉的名字。據手機遊戲產業專家稱，《王者榮耀》仍然是全球最受歡迎的多人遊戲。它還在應用程式內購買產生的收入方面排名第一。

We continue to have a healthy engagement with new multiple leading game studios and plan to announce additional IRX-certified mobile games this year. In addition to our direct collaboration with studios on certified games, we continue to expand a growing list of more than 100 IRX qualified mobile games. These qualified games have been individually tested in tuned for our solution to optimize the visual performance.

我們繼續與新的多家領先遊戲工作室保持良好的合作，並計劃今年推出更多經過 IRX 認證的手機遊戲。除了與工作室就認證遊戲進行直接合作外，我們還繼續擴大越來越多的 100 多款 IRX 合格手機遊戲清單。這些合格的遊戲已經過單獨測試，並針對我們的解決方案進行了調整，以優化視覺性能。

IRX remains the first and only industry-wide ecosystem of its kind dedicated to improving the visual performance of mobile gaming. We have several ongoing initiatives underway to consistently drive an increasing awareness of IRX, not only with the game studios and device OEMs, but also targeting broader awareness directly with consumer gamers. Currently, these IRX promotion and co-marketing efforts are primarily targeted within the APAC region, and specifically in China, as the largest mobile gaming market.

IRX 仍然是同類中第一個也是唯一一個致力於提高行動遊戲視覺性能的全行業生態系統。我們正在進行多項舉措，以不斷提高 IRX 的知名度，不僅是遊戲工作室和設備 OEM，而且還直接向消費者遊戲玩家提高更廣泛的知名度。目前，這些 IRX 推廣和聯合行銷工作主要針對亞太地區，特別是中國這個最大的行動遊戲市場。

To highlight one recent example, in late July, we showcased our IRX solutions at ChinaJoy 2024. Held at the Shanghai new international Expo Center, ChinaJoy is widely widely recognized as China's largest annual global gaming convention. Our team hosted an IRX branded booth, which featured hands-on demos, allowing participants to experience planned several IRX-certified mobile games on recently released IRX certified devices. In conjunction with the show, we also launched a new dedicated IRX website and promotional video, which I would encourage investors to check out at irxgaming.com.

舉個最近的例子，7 月下旬，我們在 ChinaJoy 2024 上展示了我們的 IRX 解決方案。我們的團隊舉辦了一個IRX品牌展位，其中包括動手演示，讓參與者可以在最近發布的IRX認證設備上體驗計劃中的幾款IRX認證的手機遊戲。配合展會，我們還推出了一個新的專用 IRX 網站和宣傳視頻，我鼓勵投資者在 irxgaming.com 上查看。

The IRX ecosystem is a fundamental part of our mobile strategy, serving to further differentiate the performance advantages and premium visual game experience of visual processors bring the mobile devices. We believe that as the IRX ecosystem continues to grow, so does incentive for OEM customers to incorporate our visual processors across a broader range of smartphone models.

IRX生態系統是我們行動策略的基本組成部分，有助於進一步區分視覺處理器為行動裝置帶來的效能優勢和優質視覺遊戲體驗。我們相信，隨著 IRX 生態系統的不斷發展，OEM 客戶將我們的視覺處理器整合到更廣泛的智慧型手機型號中的動力也會不斷增強。

Consistent with my comments last quarter, we remain focused on addressing an expanded served available market in mobile. This includes both increased penetration of mid- and lower-tier smartphones as well as expanded adoption in customers' models targeting for global markets outside of China.

與我上季度的評論一致，我們仍然專注於擴大行動領域的服務市場。這包括中低階智慧型手機滲透率的提高，以及針對中國以外全球市場的客戶型號的擴大採用。

In April, we demonstrated progress on each of these expansion goals with our first announced program win with transition on the launch of the Infinix GT 20 Pro smartphone. It incorporated our X5 series processor and represented the first time that Pixelworks technology has been featured in a sub-$350 smartphone that was targeting emerging markets outside of China.

4 月份，我們透過推出 Infinix GT 20 Pro 智慧型手機進行過渡，首次宣布贏得項目，展示了每個擴張目標的進展。它採用了我們的 X5 系列處理器，代表 Pixelworks 技術首次應用於針對中國以外新興市場的 350 美元以下智慧型手機。

Also announced during the quarter OnePlus incorporated our X7 Gen 2 visual processor in its newly launched OnePlus Ace 3 Pro smartphone. Positioned as a more affordable smartphone that delivers flagship-like performance, the OnePlus Ace 3 Pro is priced between $450 to $600, depending on memory configuration, make it the second win with our X7 Gen 2 processor in the mid-tier smartphone model category. These two newly launched smartphones, both feature IRX-certified solution while utilizing different generations of our visual processor and both models have been well received in their targeted markets.

本季也宣布，OnePlus 在其新推出的 OnePlus Ace 3 Pro 智慧型手機中採用了我們的 X7 Gen 2 視覺處理器。 OnePlus Ace 3 Pro 定位為一款更實惠的智慧型手機，可提供旗艦般的性能，價格在450 美元至600 美元之間，具體取決於內存配置，使其成為我們的X7 Gen 2 處理器在中端智慧型手機型號類別中的第二個勝利。這兩款新推出的智慧型手機均採用 IRX 認證的解決方案，同時利用我們不同世代的視覺處理器，這兩款型號均在目標市場中廣受好評。

Lastly within mobile, I want to provide an update on our next-gen mobile visual processor. As discussed on our prior call, we pushed out the production release of our next-gen solution after encountering a few technical hurdles that were impairing the devices full range of capabilities and intended performance. As an update, our engineering team has completed the work on the required design changes, and we are confident we have resolved all previously identified issues. We are scheduled to receive new samples of our next-generation device for testing and final verification at the end of this month, which will position us to be ready for its production launch in the fourth quarter.

最後，在行動領域，我想提供我們下一代行動視覺處理器的更新。正如我們之前的電話會議中所討論的，在遇到一些損害設備全部功能和預期性能的技術障礙後，我們推遲了下一代解決方案的生產版本。作為更新，我們的工程團隊已經完成了所需的設計變更工作，我們相信我們已經解決了之前發現的所有問題。我們計劃在本月底收到下一代設備的新樣品進行測試和最終驗證，這將使我們為第四季度的生產做好準備。

As anticipated, this pushout in timing, unfortunately, results in missing the design-in window for customer smartphone models in the back half of 2024. We do, however, remain engaged with multiple customers customers on our next-gen solution on their subsequent plan models. Architected with direct feedback from existing IRX ecosystem partners, this will be Pixelworks' first mobile visual processor and 12-nanometer process technology.

正如預期的那樣，不幸的是，這種推出時間表導致錯過了 2024 年下半年客戶智慧型手機型號的設計窗口。 。這將是 Pixelworks 的首款行動視覺處理器和 12 奈米處理技術，其架構是根據現有 IRX 生態系統合作夥伴的直接回饋而設計的。

We believe this newest generation solution is poised to bring this market disruptive performance to mobile gaming, with a series of new industry-first features and the ability to deliver a true commercial PC-like gaming experience to mobile devices. We look forward to a planned formal market introduction of our next generation visual processor later this year.

我們相信，這最新一代的解決方案將為行動遊戲帶來市場顛覆性的效能，具有一系列領先業界的新功能，並能夠為行動裝置提供真正的商業 PC 遊戲體驗。我們期待今年稍後計劃將下一代視覺處理器正式推向市場。

Turning to TrueCut Motion. We continue to see growing interest from premium large-format exhibitors that are specifically requesting TrueCut Motion for movie titles shown on their screens. As further evidence, two of the largest global premium large format exhibitors are now actively recommending TrueCut Motion citing it demonstrated the better viewing experience on their premium large screens.

轉向 TrueCut Motion。我們不斷看到優質大幅面放映商的興趣與日俱增，他們特別要求在其螢幕上播放的電影節目使用 TrueCut Motion。作為進一步的證據，全球最大的兩家優質大尺寸放映商現在正在積極推薦 TrueCut Motion，理由是它在其優質大螢幕上展示了更好的觀看體驗。

Movies shown in premium large-format theaters represent a growing portion of the global box office, outperforming non-premium formats, both in viewer satisfaction and box office sales. As real as results, premium large format exhibitors not only have increasing influence, they're also engaging more than ever directly with filmmakers. Our current focus is on leveraging these endorsements of TrueCut Motion by premium large format exhibitors to facilitate increased awareness among filmmakers studios and consumers in support of driving accelerated use of TrueCut technology for new released titles.

在優質大型戲院上映的電影在全球票房中所佔的比例越來越大，無論是在觀眾滿意度或票房收入方面，其表現都優於非優質格式。與結果一樣，優質大幅面放映商不僅影響力不斷增強，而且與電影製作人的直接接觸也比以往任何時候都多。我們目前的重點是利用優質大畫幅放映商對 TrueCut Motion 的認可，提高電影製片人工作室和消費者的認識，以支持推動 TrueCut 技術在新發布的影片中的加速使用。

Additionally, our TrueCut Motion R&D team will soon release a new generation of motion grading and re-projection tools to be used on upcoming projects. These new tools leverage a combination of both expertly trained AI and new patented algorithms to deliver faster results at higher resolution. In addition, these tools are more tightly integrated with leading postproduction tools and formats. As motion grading become standard practice within the film industry, this new generation of tools will be increasingly important for supporting new and expanded TrueCut Motion engagements.

此外，我們的 TrueCut Motion 研發團隊很快就會發布新一代運動分級和重投影工具，用於即將推出的專案。這些新工具結合了經過專業訓練的人工智慧和新的專利演算法，以更高解析度提供更快的結果。此外，這些工具與領先的後製工具和格式更緊密地整合。隨著動態分級成為電影業的標準做法，新一代工具對於支援新的和擴展的 TrueCut Motion 業務將變得越來越重要。

Shifting to our home and enterprise business, which as a reminder is predominantly comprised of our visual processor system on chips for the three-LCD digital projector market. For the second quarter, total revenue from home and enterprise was roughly flat on both sequential and year-over-year basis. This was consistent with our internal expectation and also mirrors the recent feedback from our projector customers that market supply and demand dynamics are generally well balanced.

轉向我們的家庭和企業業務，提醒一下，該業務主要由我們面向三液晶數位投影機市場的視覺處理器晶片系統組成。第二季度，家庭和企業總收入環比和年比基本持平。這符合我們的內部預期，也反映了投影機客戶最近的回饋，即市場供需動態整體平衡。

As I mentioned on the last call, in April, we secured final acceptance from our largest projector customer on production samples of our co-developed next-gen generation projector SoC. We subsequently received the first purchase orders and a new code in the new co-developed SoC is now scheduled for volume production in the fourth quarter. The first volume production shipments will support two new planned projector models, and then this new chip will gradually be adopted more broadly over time as our lead customer introduces new additional projector models.

正如我在 4 月的最後一次電話會議中提到的，我們共同開發的下一代投影機 SoC 的生產樣品獲得了我們最大的投影機客戶的最終驗收。我們隨後收到了第一批採購訂單，新共同開發的 SoC 中的新代碼現已計劃於第四季度批量生產。首批量產出貨將支援兩種新計畫的投影機型號，隨著我們的主要客戶推出新的附加投影機型號，隨著時間的推移，這種新晶片將逐漸得到更廣泛的採用。

In conclusion, we knew the quarter was going to be difficult. I'm proud of our team, which has confronted the recent challenges head-on, while remaining focused on strategic and offshore operational execution across the business. We remain encouraged by our recent progress and look forward to delivering improved results in the second half of the year.

總之，我們知道這個季度將會很困難。我為我們的團隊感到自豪，他們直面最近的挑戰，同時繼續專注於整個企業的策略和離岸營運執行。我們對最近的進展感到鼓舞，並期待在下半年取得更好的成果。

Specific to mobile, we believe that we are positioned for renewed growth in the coming quarters. We are increasingly targeting an expanded served market for mid- to lower-tier smartphones, as well as incremental customer adoption in international models. Additionally, engagements and the influence of our IREX gaming ecosystem continue to grow, and we'll soon be further supported by the introduction of our next-generation mobile visual processor.

具體到行動領域，我們相信我們將在未來幾季實現新的成長。我們越來越多地瞄準擴大中低階智慧型手機的服務市場，以及增加國際型號的客戶採用率。此外，我們的 IREX 遊戲生態系統的參與度和影響力不斷增長，我們很快就會透過推出下一代行動視覺處理器獲得進一步支援。

We also expect to benefit from a continued stable performance with our home and enterprise business, together with our recently implemented cost reduction actions. We expect to deliver sequential revenue growth revenue growth in the third quarter, while continuing to target improved operational results over the medium and intermediate term.

我們也期望受益於我們的家庭和企業業務的持續穩定表現，以及我們最近實施的成本削減行動。我們預計第三季營收將實現環比成長，同時繼續致力於改善中期內的營運表現。

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

接下來，我將把電話轉交給 Haley，以審查財務狀況並提供第三季的指導。

Revenue for the second quarter of 2024 was $8.5 million, which was at the midpoint of our guidance. The revenue decrease from the prior quarter was primarily driven by the anticipated near term headwinds in mobile.

2024 年第二季的營收為 850 萬美元，處於我們指引的中位數。營收較上一季下降的主要原因是行動領域預期的近期不利因素。

The breakdown of revenue in the second quarter was as follows. Revenue from mobile was approximately $2.1 million, comprised primarily of shipments of our X-series visual processors. Home and enterprise revenue was approximately $6.4 million.

第二季的收入明細如下。行動收入約 210 萬美元，主要包括 X 系列視覺處理器的出貨量。家庭和企業收入約為 640 萬美元。

Second quarter non-GAAP gross profit margin expanded 30 basis points sequentially to 51% from 50.7% in the first quarter of 2024, and increased over 1,000 basis points from 40.5% in the second quarter of 2023. The significant year-over-year expansion in gross margin reflects our ongoing focus to drive healthy margin.

第二季非公認會計原則毛利率從 2024 年第一季的 50.7% 較上季成長 30 個基點至 51%，從 2023 年第二季的 40.5% 成長超過 1,000 個基點。推動健康的利潤率。

Non-GAAP operating expenses were $12.8 million in the second quarter, compared to $12.6 million in the prior quarter and $10.7 million in the second quarter of 2023. With respect to the year-over-year comparison, as a reminder, lower operating expenses in the second quarter of 2023 included the benefit of a $1.9 million credit to R&D related to the now completed co-development agreement with our largest projector customers.

第二季非 GAAP 營運費用為 1,280 萬美元，而上一季為 1,260 萬美元，2023 年第二季為 1,070 萬美元。與我們最大的投影機客戶現已完成的共同開發協議相關的190 萬美元研發信貸收益。

As I've previously highlighted, we've recently implemented expense reduction actions to more appropriately align expenses with current revenue levels, including and approximately 16% reduction in workforce, which was effected at the end of the second quarter. As a result, we expect to realize approximately $4 million in annualized savings.

正如我之前強調的那樣，我們最近實施了費用削減行動，以便更適當地使費用與當前收入水平保持一致，其中包括在第二季度末削減約 16% 的勞動力。因此，我們預計每年可節省約 400 萬美元。

On a non-GAAP basis, second-quarter 2024 net loss was $7.7 million, or a loss of $0.13 per share compared to a net loss of $4 million or a loss of $0.07 per share in the prior quarter, and a net loss of $4.8 million or a loss of $0.09 per share in the second quarter of 2023.

以非公認會計準則計算，2024 年第二季淨虧損為770 萬美元，即每股虧損0.13 美元，而上一季淨虧損為400 萬美元，即每股虧損0.07 美元，每股淨虧損為4.8美元2023 年第二季每股虧損 0.09 美元。

Adjusted EBITDA for the second quarter of 2024 was a negative $7 million compared to a negative $3.2 million in the first quarter and negative $4 million in the second quarter of 2023.

2024 年第二季調整後 EBITDA 為負 700 萬美元，而 2023 年第一季為負 320 萬美元，2023 年第二季為負 400 萬美元。

For the balance sheet, we ended the second quarter with cash and cash equivalents of $37.8 million compared to $46.2 million at the end of the first quarter and $47.5 million at year end 2023. In addition, the cash used for operations, the cash balance at quarter end also reflected approximately $2.5 million used during the quarter for a one-time purchase of masks associated with our next-generation mobile visual processor.

就資產負債表而言，第二季末我們的現金及現金等價物為3,780 萬美元，而第一季末為4,620 萬美元，2023 年底為4,750 萬美元。為季度末也反映出本季使用了約 250 萬美元一次性購買與我們的下一代行動視覺處理器相關的掩模。

Looking to our current expectations and guidance for the third quarter of 2024. As Todd discussed, and consistent with the expectations we outlined on our previous previous conference call, we expect to return to sequential revenue growth in the third quarter.

展望我們目前對 2024 年第三季度的預期和指導。 正如托德所討論的那樣，與我們在之前的電話會議上概述的預期一致，我們預計第三季度的收入將恢復連續增長。

Based on current order patterns and existing backlog, we currently anticipate total revenue for the third quarter to be in a range of between $9 million and $10 million. In terms of gross profit margin for the third quarter, we expect non-GAAP gross profit margin to be between 49% and 51%. With respect to operating expenses, we expect to realize the initial benefits from the previously discussed cost reduction beginning in the third quarter. However, we anticipate the resulting reduction in expenses to be partially offset by a one-time expense associated with the design revisions completed on our next-generation mobile visual processor.

根據目前訂單模式和現有積壓訂單，我們目前預計第三季的總收入將在 900 萬美元至 1,000 萬美元之間。第三季毛利率方面，我們預期非公認會計原則毛利率在49%至51%之間。關於營運費用，我們預計從第三季開始實現先前討論的成本削減的初步效益。然而，我們預計由此產生的費用減少將被與下一代行動視覺處理器完成的設計修改相關的一次性費用部分抵消。

Net of these factors, we expect operating expenses in the third quarter to range between $12 million and $13 million on a non-GAAP basis. Lastly, we expect third quarter non-GAAP EPS to range between a loss of $0.11 per share and a loss of $0.14 per share.

扣除這些因素後，我們預計第三季的營運費用（以非公認會計準則計算）將在 1,200 萬美元至 1,300 萬美元之間。最後，我們預計第三季非 GAAP 每股盈餘將在每股虧損 0.11 美元到每股虧損 0.14 美元之間。

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

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) Nick Doyle, Needham & Co.

（操作說明）Nick Doyle，Needham & Co.

Hey guys, thanks for taking my question. First one would be on the international expansion. Do you guys -- did you have any shipments this quarter, or just otherwise, what's the kind of interest you're getting and any detail on quarters? And then also some if there is, I mean, are you seeing more interest on the low side of the mid-tier? Thanks.

嘿夥計們，謝謝你提出我的問題。第一個是國際擴張。你們本季有出貨嗎？然後還有一些，如果有的話，我的意思是，您是否看到中端低端產品更感興趣？謝謝。

I didn't hear what -- if you were on, Nick, I didn't hear you. I just heard you at the end there.

我沒聽到什麼——如果你在的話，尼克，我沒聽到。我剛剛在最後聽到了你的聲音。

Okay. I'll repeat. The international expansion, just looking for -- if you had any shipments in the quarter and just generally, what kind of interest you're getting? And if that's tilted to the low tier to mid-tier? Thanks.

好的。我再說一次。國際擴張，只是尋找 - 如果您在本季度有任何發貨，一般而言，您會得到什麼樣的興趣？如果是從低層到中層傾斜呢？謝謝。

Sure. So just to summarize for everybody, the two previous models that were towards the international market were our OnePlus in Q1 launched OnePlus 13, their flagship. And that's -- I would say it's more of a flagship-oriented phone. They did include our visual processor and target IRX internationally, but it wasn't -- all in gaming, let's say.

當然。所以給大家總結一下，之前面向國際市場的兩款機型是我們一加在第一季推出的旗艦一加13。那就是——我想說它更像是一款面向旗艦的手機。他們確實包括了我們的視覺處理器和國際目標 IRX，但事實並非如此——所有這些都在遊戲中，例如。

And then the second phone was this phone that we did with the division of Tencent, the Infinix GT 20, that was absolutely targeted at competitive gaming, but they've seen good demand. It's probably tripled over their previous model, their GT 10. They did a very good job marketing it towards competitively priced international markets. They shipped no phones into China.

第二款手機是我們與騰訊部門合作的這款手機，Infinix GT 20，它絕對是針對競技遊戲的，但他們看到了很好的需求。它可能是他們之前的型號 GT 10 的三倍。他們沒有向中國運送手機。

Their target markets are Africa, South America, Southeast Asia, Central Asia. And they did a very good job in marketing. And right now we see reasonable volume from that volume -- for what we expected going into the design activity.

他們的目標市場是非洲、南美洲、東南亞、中亞。他們在行銷方面做得非常好。現在我們看到該卷的數量合理——符合我們對設計活動的預期。

Okay. That's helpful. And that's great to hear about the Tencent. For the new projector SoC, congrats on the progress there. Will the ramp in the fourth quarter be able to offset the general seasonality?

好的。這很有幫助。很高興聽到有關騰訊的消息。對於新的投影機 SoC，祝賀其取得的進展。第四季的成長能否抵銷整體季節性的影響？

I would that, yes. Normally, Q4 is always seasonally down over Q3. I would say it won't be this year, but in general, what they're going to do is slowly replace some of the older models. So what you'll do is as the new processor comes online, it will give a little bit of a of a positivity to the overall projector numbers. The ASP is higher than the previous devices.

我願意，是的。通常情況下，第四季總是比第三季季節性下降。我想說今年不會，但總的來說，他們要做的就是慢慢更換一些舊型號。因此，您要做的就是，當新處理器上線時，它將為投影機的整體資料帶來一些正面的影響。 ASP 比以前的設備更高。

So as it replaces -- it does two things. It replaces some of our own devices, but it also replaces a competitor's device. So once it's been fully adopted, we'll have a higher market share at our largest customer. And then we have a derivative product that we're introducing to the rest of the market, but those models will not start shipping until 2025.

因此，當它取代時，它做了兩件事。它取代了我們自己的一些設備，但也取代了競爭對手的設備。因此，一旦它被完全採用，我們將在我們最大的客戶中擁有更高的市場份額。然後我們有一個衍生產品，正在向市場的其他部分推出，但這些型號要到 2025 年才會開始出貨。

Thank you.

謝謝。

You're welcome. Thanks, Nick.

不客氣。謝謝，尼克。

(Operator Instructions) I'm showing no questions in the queue at this time. I would like to turn the call back over to management for any closing remarks.

（操作員說明）此時隊列中沒有顯示任何問題。我想將電話轉回給管理階層，讓他們發表結束語。

Thank you for attending today's call. We look forward to bringing progress over the next coming months. We'll talk to you on the next quarterly call.

感謝您參加今天的電話會議。我們期待在接下來的幾個月中取得進展。我們將在下一個季度的電話會議上與您交談。

That concludes today's program. Thank you all for participating. You may now disconnect.

今天的節目到此結束。感謝大家的參與。您現在可以斷開連線。