Quicklogic Corp (QUIK) 2023 Q3 法說會逐字稿

Ladies and gentlemen, good afternoon. At this time, I'd like to welcome everyone to QuickLogic Corporation's third-quarter fiscal 2023 earnings results conference call. As a reminder, today's call is being recorded for replay purposes through November 21, 2023. I would now like to turn the conference over to Ms. Alison Ziegler of Darrow Associates. Ms. Ziegler, please go ahead.

女士們、先生們，午安。現在，我歡迎大家參加 QuickLogic 公司 2023 財年第三季財報電話會議。謹此提醒，我們將對今天的電話會議進行錄音，以便在 2023 年 11 月 21 日之前重播。我現在想將會議轉交給 Darrow Associates 的 Alison Ziegler 女士。齊格勒女士，請繼續。

Thank you, operator, and thanks to all of you for joining us. Our speakers today are Brian Faith, President and Chief Executive Officer; and Elias Nader, Senior Vice President and Chief Financial Officer.

謝謝您，運營商，也謝謝大家加入我們。今天我們的演講者是總裁兼執行長 Brian Faith；以及資深副總裁兼財務長 Elias Nader。

As a reminder, some of the comments QuickLogic makes today are forward-looking statements that involve risks and uncertainties, including but not limited to stated expectations relating to revenue from new and mature products, statements pertaining to QuickLogic's future performance, design activity and its ability to convert new design opportunities into production shipments, timing and market acceptance of its customers' products, schedule changes and production start dates that could impact the timing of shipments, the company's future evaluation systems, broadening the number of our ecosystem partners, and expected results and financial expectations for revenue, gross margin, operating expenses, profitability, and cash.

提醒一下，QuickLogic 今天發表的一些評論屬於前瞻性陳述，涉及風險和不確定性，包括但不限於與新產品和成熟產品收入相關的預期、與 QuickLogic 未來業績、設計活動及其能力相關的陳述將新的設計機會轉化為生產發貨、客戶產品的時間表和市場接受度、可能影響發貨時間、公司未來評估系統、擴大生態系統合作夥伴數量和預期結果的時間表變更和生產開始日期收入、毛利率、營運費用、獲利能力和現金的財務預期。

Actual results or trends may differ materially from those discussed today. For more detailed discussions of the risks, uncertainties, and assumptions that could result in those differences, please refer to the risk factors discussed in QuickLogic's most recently filed periodic reports with the SEC. Quicklogic assumes no obligation to update any forward-looking statements or information, which speak as of the respective dates of any new information or future events.

實際結果或趨勢可能與今天討論的結果或趨勢有重大差異。有關可能導致這些差異的風險、不確定性和假設的更詳細討論，請參閱 QuickLogic 最近向 SEC 提交的定期報告中討論的風險因素。 Quicklogic 不承擔更新任何前瞻性聲明或資訊的義務，這些陳述或資訊涉及任何新資訊或未來事件的相應日期。

In today's call, we'll be reporting non-GAAP financial measures. You may refer to the earnings release we issued today for a detailed reconciliation of our GAAP to non-GAAP results and other financial statements. We've also posted an updated financial table on our IR web page that provides current and historical non-GAAP data.

在今天的電話會議中，我們將報告非公認會計準則財務指標。您可以參考我們今天發布的收益報告，以了解我們的 GAAP 與非 GAAP 業績和其他財務報表的詳細調整表。我們還在 IR 網頁上發布了更新的財務表格，其中提供了當前和歷史的非 GAAP 數據。

Please note QuickLogic uses its website, the company blog, corporate Twitter account, Facebook page, and LinkedIn page as channels of distribution of information about its business. Such information may be deemed material information and QuickLogic may use these channels to comply with this disclosure obligations under Regulation FD, a copy of their prepared remarks made on today's call will be posted on QuickLogic's IR web page shortly after the conclusion of today's earnings call. I would now like to turn the call over to Brian. Go ahead, Brian.

請注意，QuickLogic 使用其網站、公司部落格、公司 Twitter 帳戶、Facebook 頁面和 LinkedIn 頁面作為其業務資訊的分發管道。此類資訊可能被視為重要訊息，QuickLogic 可能會使用這些管道來遵守FD 法規規定的披露義務，他們在今天的電話會議上準備的言論副本將在今天的收益電話會議結束後不久發佈在QuickLogic 的IR 網頁上。我現在想把電話轉給布萊恩。繼續吧，布萊恩。

Thank you, Alison. Good afternoon, everyone, and thank you all for joining our third-quarter fiscal 2023 financial results conference call. Q3 revenue of $6.7 million exceeded the midpoint of our guidance, nearly doubling year over year and increasing 128% sequentially. This growth was driven by new product sales, which increased by over 170%, both sequentially and year over year.

謝謝你，艾莉森。大家下午好，感謝大家參加我們的 2023 財年第三季財務業績電話會議。第三季營收為 670 萬美元，超過了我們指導的中位數，年比幾乎翻倍，季增 128%。這一增長是由新產品銷售推動的，新產品銷售環比和同比增長超過 170%。

QuickLogic set a record for non-GAAP gross profit margin, achieving 78%, which exceeded the midpoint of the outlook we shared last quarter. Driven by strong gross profit and the inherent scalability of our business model, non-GAAP net income of $1.8 million was an all-time record for QuickLogic. Elias will share our outlook in a few minutes that projects well set another non-GAAP net profit record in Q4, which will drive positive full year earnings for fiscal 2023.

QuickLogic 創下了非 GAAP 毛利率紀錄，達到 78%，超過了我們上季預測的中位數。在強勁的毛利和業務模式固有的可擴展性的推動下，180 萬美元的非 GAAP 淨利潤創下了 QuickLogic 的歷史記錄。 Elias 將在幾分鐘內分享我們的展望，預計第四季將創下非 GAAP 淨利潤新紀錄，這將推動 2023 財年實現正向全年盈利。

The strategic transformation we initiated in 2020 has enabled us to fully leverage the proprietary IP assets that we've developed over the last 30 years and execute a highly scalable and profitable business model. When compared to 2020, we expect to grow full-year 2023 revenue by over 144%, non-GAAP gross profit dollars by over 235%, and with a 2% reduction in non-GAAP OpEx, improve our operating leverage by nearly 244%. The bottom line here is our strategic transformation is delivering strong results, and I believe the best is yet to come.

我們於 2020 年啟動的策略轉型使我們能夠充分利用過去 30 年開發的專有智慧財產權資產，並執行高度可擴展和獲利的業務模式。與 2020 年相比，我們預計 2023 年全年營收成長超過 144%，非 GAAP 毛利成長超過 235%，非 GAAP 營運支出減少 2%，營運槓桿將提高近 244% 。最重要的是，我們的策略轉型正在取得強勁成果，我相信最好的尚未到來。

Now I'll take a few minutes to highlight the initiatives and contracts that are driving our growth and success. First, we've continued to grow our sales funnel to a record $162 million. Included in this number are deals for both eFPGA IP as well as customer specific device development that incorporates our eFPGA IP. These deals span numerous foundries, process technologies, and end markets.

現在，我將花幾分鐘時間重點介紹推動我們成長和成功的舉措和合約。首先，我們持續擴大銷售管道，達到創紀錄的 1.62 億美元。此數字中包括 eFPGA IP 以及包含我們的 eFPGA IP 的客戶特定設備開發的交易。這些交易涉及眾多代工廠、製程技術和終端市場。

In August, we were awarded a $15 million second phase of the Strategic Rad Hard eFPGA contract that was initiated in 2022, bringing the total awarded so far to $22 million. The contract has the potential to extend through 2026 with a total potential value of $72 million. This second phase provided a significant contribution to our rebound in Q3 and expanded the scope of the contract to include a second foundry, in addition to continuing our development efforts with our current foundry partner

8 月，我們獲得了 Rad Hard eFPGA 戰略合約第二階段價值 1500 萬美元的合同，該合約於 2022 年啟動，使迄今為止的合約總額達到 2,200 萬美元。該合約有可能延長至 2026 年，總潛在價值為 7,200 萬美元。第二階段為我們第三季的反彈做出了重大貢獻，並擴大了合約範圍，包括第二個代工廠，此外還繼續與我們目前的代工廠合作夥伴進行開發工作

In November 2022, I shared that we had taped out a new device for our customer that incorporates our eFPGA IP. Due to strict confidentiality requirements, I can't share more details on the specific design win. We're continuing to do development work with this customer and we're generating revenue from this design each quarter.

2022 年 11 月，我分享了我們已經為客戶流片了一款包含我們的 eFPGA IP 的新設備。由於嚴格的保密要求，我無法透露有關具體設計獲勝的更多細節。我們將繼續與該客戶進行開發工作，並且每季都會從該設計中產生收入。

We believe this customer could represent tens of millions of dollars in potential device revenue starting in a couple of years. As mentioned on our previous call, contributing to our sales funnel growth includes new government focused eFPGA IP-based opportunities targeting a 12 nanometer process node. The initial revenue from one contract began in Q1.

我們相信，該客戶在幾年內可能會帶來數千萬美元的潛在設備收入。正如我們在先前的電話會議中所提到的，對我們銷售通路成長的貢獻包括針對 12 奈米製程節點的新的政府重點關注的基於 eFPGA IP 的機會。一份合約的初始收入於第一季開始。

Furthermore, we announced the availability of our eFPGA IP on the GlobalFoundries' 12LP process technology, and we now have multiple new opportunities for this IP totaling several million dollars. The new 12 nanometer eFPGA solution is ideal for a wide range of applications, including 5G infrastructure, automotive electronics, aerospace and defense, AIML acceleration, and IoT devices.

此外，我們也宣布推出採用 GlobalFoundries 12LP 製程技術的 eFPGA IP，現在我們為該 IP 提供了多個新機會，總價值達數百萬美元。全新 12 奈米 eFPGA 解決方案非常適合各種應用，包括 5G 基礎設施、汽車電子、航空航太和國防、AIML 加速和物聯網設備。

In late September, we announced that a leading technology company chose our eFPGA IP for GlobalFoundries' 22FDX platform. We expect to deliver on this initial program this year. In total, during this quarter, we expect to be in development with five different process technologies spanning four different foundries.

9 月下旬，我們宣布一家領先的科技公司選擇我們的 eFPGA IP 用於 GlobalFoundries 的 22FDX 平台。我們預計今年將實施這項初步計劃。總的來說，在本季度，我們預計將在四個不同的代工廠開發五種不同的工藝技術。

This is only possible through the proprietary automation of the Australis IP generator, which lets us create customized versions of our IP within one quarter from contract signing. Customers are increasingly seeing QuickLogic as the lowest risk path to a solution that meets their technical requirements, development schedule, and target costs. The not so subtle point here is by lowering risk and shortening time to market we save our customers money and that provides us with a meaningful competitive advantage.

這只有透過 Australis IP 產生器的專有自動化才能實現，這使我們能夠在合約簽署後的四分之一內創建 IP 的定製版本。客戶越來越多地將 QuickLogic 視為獲得滿足其技術要求、開發計劃和目標成本的解決方案的風險最低的途徑。這裡不那麼微妙的一點是，透過降低風險和縮短上市時間，我們可以為客戶節省資金，這為我們提供了有意義的競爭優勢。

We announced the partnership with Xiphera, provider of hardware-based cryptographic security solutions to provide architects with a path towards securing their assets against the quantum threat, enabling them to stay one step ahead in the evolving landscape of cyber threats. With Xiphera's standards-based PQC IP combined with the design flexibility of QuickLogic's eFPGA platform, solution designers can cost-effectively meet the rapidly evolving market demands for quantum resilience.

我們宣布與基於硬體的加密安全解決方案提供商 Xiphera 合作，為架構師提供一種保護其資產免受量子威脅的途徑，使他們能夠在不斷發展的網路威脅領域保持領先一步。借助 Xiphera 基於標準的 PQC IP 與 QuickLogic eFPGA 平台的設計靈活性相結合，解決方案設計人員可以經濟高效地滿足快速發展的市場對量子彈性的需求。

Moving to chiplets. We recently announced our partnership with YorChip to develop low power, low cost UCI eFPGA chiplets optimized for Edge, IoT, and AIML applications. This opens new possibilities for a wide range of applications. The first chiplets could be available in early 2025.

轉向小晶片。我們最近宣布與 YorChip 合作開發針對邊緣、物聯網和 AIML 應用進行最佳化的低功耗、低成本 UCI eFPGA 晶片。這為廣泛的應用開闢了新的可能性。第一批小晶片可能會在 2025 年初上市。

Concerning our mobile phone business, our lead customer has digested most of their EOS S3 inventory, and we expect a slight rebound starting this quarter. Furthermore, we've been informed that our EOS S3 will be used in new smartphone models that will ship into 2025. Finally, we're forecasting slight improvements in our display bridge and mature product segments for Q4 and for fiscal 2024.

就我們的手機業務而言，我們的主要客戶已經消化了大部分 EOS S3 庫存，我們預計從本季開始將出現小幅反彈。此外，我們還獲悉，我們的 EOS S3 將用於將於 2025 年發貨的新智慧型手機型號。最後，我們預計第四季度和 2024 財年我們的顯示橋和成熟產品領域將略有改進。

Moving to SensiML, the top-tier semiconductor company that has integrated a private label version of a SensiML powered solution to address its customers' demand across its broad line of microcontrollers has officially launched.

轉向 SensiML，這家頂級半導體公司已正式推出，該公司整合了 SensiML 支援的解決方案的自有品牌版本，以滿足客戶對其廣泛的微控制器系列的需求。

This private labeling of the SensiML toolkit provides significant revenue potential because of the company's large installed customer base and sales force. As I've noted in the past, this is not an exclusive relationship, and we will continue to engage with other microcontroller companies.

由於該公司擁有龐大的客戶群和銷售隊伍，SensiML 工具包的這種私人標籤提供了巨大的收入潛力。正如我過去所指出的，這不是排他性的關係，我們將繼續與其他微控制器公司合作。

Before turning the call over to Elias, I'd like to share my perspective on the key differentiators that are driving our wins, growth, and our profitability. QuickLogic has been developing proprietary eFPGA IP and delivering high-volume commercial FPGA-based devices for 30 years. With this and our Australis IP generator that allows us to quickly target our customers' chosen foundry and fabrication node, we can lower customer risk and shorten time to market, in addition to providing unique and proprietary IP.

在將電話轉給 Elias 之前，我想分享我對推動我們的勝利、成長和獲利能力的關鍵差異化因素的看法。 30 年來，QuickLogic 致力於開發專有的 eFPGA IP 並提供大量的基於 FPGA 的商用設備。有了這個和我們的 Australis IP 產生器，我們可以快速定位客戶選擇的代工和製造節點，除了提供獨特的專有 IP 之外，我們還可以降低客戶風險並縮短上市時間。

We can also engage with customers at any level from providing a simple IP license to supporting development efforts and even to fully managing everything from fabrication to finished goods through our storefront program. Together. These benefits set us apart from the competition and have enabled both our rapid growth and now profitability. With that, let me now turn the call over to Elias for a review of the financial results, and I will re-join for our closing remarks. Elias, please go ahead.

我們還可以與任何級別的客戶合作，從提供簡單的 IP 許可到支援開發工作，甚至透過我們的店面計劃全面管理從製造到成品的一切。一起。這些優勢使我們在競爭中脫穎而出，使我們能夠快速成長並實現盈利。現在，讓我將電話轉交給埃利亞斯，以審查財務業績，然後我將重新加入我們的閉幕詞。埃利亞斯，請繼續。

Thank you, Brian, and good afternoon, everyone. Our performance in Q3 was exceptional, with revenue more than doubling from last quarter, driving the business solidly into the block. As expected, our results benefited from higher eFPGA IP license and professional services revenue as the next phase of the large eFPGA contract started up in the current quarter.

謝謝你，布萊恩，大家下午好。我們第三季的業績非常出色，營收比上季成長了一倍多，推動業務穩步發展。正如預期的那樣，隨著大型 eFPGA 合約的下一階段在本季度啟動，我們的業績受益於更高的 eFPGA IP 授權和專業服務收入。

Specifically, revenue in Q3 was $6.7 million, up 128% from the second quarter and up nearly 93% from the third quarter 2022. Within our Q3 revenue, sales of new products were approximately $6.1 million. This compares to $2.2 million last quarter, up 173% and $2.3 million in the third quarter of 2022, up 171%.

具體來說，第三季的營收為670 萬美元，比第二季成長128%，比2022 年第三季成長近93%。在我們第三季的營收中，新產品的銷售額約為610萬美元。相較之下，上季為 220 萬美元，成長 173%；2022 年第三季為 230 萬美元，成長 171%。

Our product revenue was approximately $600,000 compared to $700,000 last quarter and $1.2 million in Q3 last year. Non-GAAP gross margin in Q3 was 78% compared with 44.2% in the second quarter of 2023 and 49.8% in the third quarter of 2022. The increase in gross margins from the second quarter resulted from the higher revenue level and a change in the mix of deliverables within eFPGA-related revenue to a higher percentage of professional services as well as continued cost control.

我們的產品收入約為 60 萬美元，而上季為 70 萬美元，去年第三季為 120 萬美元。第三季的非 GAAP 毛利率為 78%，而 2023 年第二季為 44.2%，2022 年第三季為 49.8%。第二季毛利率的成長是由於收入水準較高以及eFPGA 相關收入中的可交付成果與更高比例的專業服務以及持續的成本控制相結合。

Non-GAAP operating expenses in Q3 2023 were approximately $3.3 million. The OpEx for Q3 was slightly above our forecast due to somewhat higher R&D activity, given the timing of executing on the large revenue contracts later in the period. This compares with non-GAAP operating expenses of $2.9 million last quarter and $2.5 million in third quarter a year ago.

2023 年第三季的非 GAAP 營運費用約為 330 萬美元。考慮到該時期後期執行大型收入合約的時間，由於研發活動增加，第三季的營運支出略高於我們的預測。相比之下，上季非 GAAP 營運支出為 290 萬美元，去年第三季為 250 萬美元。

Non-GAAP net income was $1.8 million or $0.13 per share, a record. This compares to a non-GAAP net loss of $1.7 million or $0.12 per share last quarter and a non-GAAP net loss of $900,000 or $0.07 a share in the third quarter of fiscal 2022. Total cash at the end of Q3 was $18.6 million compared with $19.2 million at year end. In Q3 2023, we had one customer that accounted for 10% or more of our revenue.

非 GAAP 淨利潤為 180 萬美元，即每股 0.13 美元，創歷史新高。相較之下，上一季的非GAAP 淨虧損為170 萬美元，即每股0.12 美元，2022 財年第三季的非GAAP 淨虧損為90 萬美元，即每股0.07 美元。第三季末的現金總額為1,860 萬美元。年底為 1,920 萬美元。 2023 年第三季度，我們有一個客戶占我們收入的 10% 或更多。

Now moving to our guidance for the fourth quarter and fiscal 2023, which will end on December 31, 2023. Revenue guidance for Q4 is approximately $7.4 million, plus or minus 10%. This will lead to revenue growth, a growth of approximately 30% for the full year 2023.

現在轉向我們對第四季度和 2023 財年的指導，該指導將於 2023 年 12 月 31 日結束。第四季度的收入指導約為 740 萬美元，上下浮動 10%。這將帶來收入成長，2023 年全年成長約 30%。

Fourth quarter revenue is expected to be comprised of approximately $6.6 million of new products and $800,000 of mature products. Based on this revenue mix, non-GAAP gross margin for the quarter is expected to be approximately 75%, plus or minus 5 percentage points. We will continue to see margin variances each quarter due to product mix and volatility in cost of goods sold.

第四季營收預計將由約 660 萬美元的新產品和 80 萬美元的成熟產品組成。根據此收入組合，本季非 GAAP 毛利率預計約為 75%，上下浮動 5 個百分點。由於產品組合和銷售成本的波動，我們將繼續看到每個季度的利潤率差異。

Our non-GAAP operating expenses will be approximately $3.5 million, plus or minus 10%. We believe OpEx will remain at $3.5 million range with occasional increases to support new programs. Please keep in mind that given the industry, we may be required to re-classify certain expenses to COGS, which is cost of goods sold, capitalize certain cost at times.

我們的非 GAAP 營運費用約為 350 萬美元，上下浮動 10%。我們相信營運支出將保持在 350 萬美元的範圍，並偶爾增加以支持新項目。請記住，鑑於行業情況，我們可能需要將某些費用重新分類為銷貨成本（COGS），即銷售商品的成本，有時會將某些成本資本化。

The re-classifications are primarily related to labor and tooling for revenue contracts with customers. Capitalization will reduce OpEx and also change the timing for recognizing the corresponding expenses in COGS. This may cause variability in our gross margins and operating results.

重新分類主要與與客戶簽訂的收入合約中的勞動力和工具有關。資本化將減少營運支出，並改變在銷貨成本中確認相應費用的時間。這可能會導致我們的毛利率和經營績效發生變化。

After interest expense, other income, and taxes, we currently forecast that our non-GAAP net income would be approximately $1.4 million to $2 million or $0.10 to $0.14 per share based on roughly 14.1 million shares. This will allow us to report profitability for the full year with non-GAAP net income of approximately $1 million to $1.6 million, or $0.08 to $0.12 per share based on 13.7 million shares.

扣除利息費用、其他收入和稅費後，我們目前預測，我們的非 GAAP 淨利潤約為 140 萬至 200 萬美元，或每股 0.10 至 0.14 美元（基於約 1,410 萬股）。這將使我們能夠報告全年獲利能力，非 GAAP 淨利潤約為 100 萬至 160 萬美元，或基於 1,370 萬股計算每股 0.08 至 0.12 美元。

The difference between our GAAP and non-GAAP results is related to non-cash, stock-based compensation expenses. In Q4, we expect this compensation will be approximately $800,000. As a reminder, there will be movements in our stock-based compensation during the year and may vary each quarter based on the timing of grants to employees.

我們的公認會計原則和非公認會計原則結果之間的差異與非現金、基於股票的補償費用有關。在第四季度，我們預計補償金額約為 80 萬美元。提醒一下，我們的股票薪酬在這一年中將會發生變化，並且可能會根據向員工發放獎金的時間而每個季度有所不同。

Moving to the balance sheet, even with our continued investment to support the new design wins that we've discussed, including hiring critical engineering and sales roles at the midpoint, we expect cash usage to be below $1 million in Q4. These investments we're making in anticipation of strong growth in 2024 and timed with the signing of new contracts for design wins. We are also on track to be cash flow positive for the full year of 2024. With that, thank you very much, and I will turn the call over now to Brian for his closing remarks.

轉向資產負債表，即使我們繼續投資以支持我們討論過的新設計勝利，包括在中點僱用關鍵的工程和銷售職位，我們預計第四季度的現金使用量將低於 100 萬美元。我們進行這些投資是為了預計 2024 年將出現強勁成長，並與簽署新的設計合約同步進行。我們也預計在 2024 年全年實現正現金流。在此，非常感謝您，我現在將把電話轉給布萊恩，讓他作結束語。

Thank you, Elias. With record non-GAAP net profit, Q3 was clearly a historic quarter for QuickLogic and the stage is set for yet another new record this quarter. Since transitioning to a core IP business model three years ago in 2020, we expect to grow total revenue by over 144%, gross profit dollars by over 235%, and with a 2% reduction in non-GAAP OpEx, grow our operating leverage by over 244% in 2023. While I am very proud of what we've accomplished so far, what excites me is what lies ahead.

謝謝你，埃利亞斯。憑藉創紀錄的非公認會計原則淨利潤，第三季度對 QuickLogic 來說顯然是一個歷史性的季度，並為本季再創新紀錄奠定了基礎。自三年前的 2020 年過渡到核心 IP 業務模式以來，我們預計總收入將成長超過 144%，毛利將成長超過 235%，且非 GAAP 營運支出減少 2%，我們的營運槓桿將成長到2023年，這一比例將超過244%。雖然我對我們迄今為止所取得的成就感到非常自豪，但令我興奮的是未來的發展。

The primary drivers for our growth over the last three years have been development contracts. Looking forward, we believe these will lead to production devices and new opportunities even beyond our sales funnel of $162 million. We believe these opportunities and others in our sites will fuel our continued growth in 2024 and beyond.

過去三年我們成長的主要驅動力是開發合約。展望未來，我們相信這些將帶來生產設備和新機遇，甚至超越我們 1.62 億美元的銷售管道。我們相信這些機會和我們網站上的其他機會將推動我們在 2024 年及以後的持續成長。

While we will provide our full-year outlook for 2024 during our year-end conference call, I believe we are well-positioned to grow total revenue by over 30% and report very solid non-GAAP earnings per share with each quarter contributing to the profitability in 2024. Following the investments we're making during the second half of 2023 to support anticipated growth in 2024, we expect to generate positive cash flow for the full-year 2024.

雖然我們將在年終電話會議上提供 2024 年全年展望，但我相信我們有能力將總收入增長 30% 以上，並報告非常可靠的非 GAAP 每股收益，每個季度都為2024 年實現盈利。繼我們在2023 年下半年進行投資以支持2024 年的預期成長後，我們預計將在2024 年全年產生正現金流。

With that, I want to extend my appreciation to the shareholders that have supported our vision and to the team that has enabled these accomplishments. It is a thrill to work with you all. That completes our prepared remarks. Operator, I would now like to open the call for questions.

在此，我要向支持我們願景的股東以及實現這些成就的團隊表示感謝。與大家一起工作真是令人興奮。我們準備好的發言就到此結束了。接線員，我現在想開始提問。

(Operator Instructions) Richard Shannon, Craig-Hallum.

（操作員說明）Richard Shannon，Craig-Hallum。

Well, great. Thanks, Brian, at last for taking my questions and congratulations on a profitable quarter. I'm sure it's a welcome relief and congratulations on all the hard work it takes to get to this point.

嗯，太好了。感謝布萊恩終於回答了我的問題，並祝賀本季實現盈利。我確信這是一種值得歡迎的解脫，並祝賀為達到這一點所付出的所有努力。

Thanks, Richard.

謝謝，理查。

Thank you, Richard.

謝謝你，理查。

I guess more of a technical question to start off here, just looking at the fourth-quarter guidance here, pretty close to what you had talked about before, which is great to see here. I just wanted to get a sense to the degree to which this large government contract is driving the growth or are there some other dynamics here within the new product sales that are driving that.

我想更多的是從這裡開始的技術問題，只需看看這裡的第四季度指導，與您之前談到的非常接近，很高興在這裡看到。我只是想了解這項大型政府合約在多大程度上推動了成長，或者新產品銷售中是否存在其他一些動力來推動成長。

Obviously, the large [government] contract is a big percent of that revenue, but there are a couple of other ones that are materially contributing to the revenue growth in this quarter. I think in the prepared remarks, I alluded to us doing design on several different process technologies and several different tabs. And most of those would be contributing to revenue in this quarter, some of which are new compared to last quarter.

顯然，大型[政府]合約佔該收入的很大一部分，但還有其他一些合約為本季的收入成長做出了重大貢獻。我認為在準備好的發言中，我提到我們在幾種不同的工藝技術和幾個不同的選項卡上進行設計。其中大部分將為本季度的收入做出貢獻，其中一些與上季相比是新的。

And then the mature products and the sensor products to our smartphone customer are kicking back up again compared to last quarter. So I guess the net of that is that all things are up this quarter or forecasted to be up this quarter compared to last quarter. But the biggest revenue contributors, clearly the government contract being number one, and then the couple of the other IT contracts that we alluded to contributing noteworthy to the revenue in the quarter.

然後，與上季度相比，我們的智慧型手機客戶的成熟產品和感測器產品再次回升。因此，我想最終的結果是，與上季度相比，本季所有情況都上漲或預計本季會上漲。但最大的收入貢獻者，顯然是排名第一的政府合同，然後是我們提到的對本季度收入做出顯著貢獻的其他幾個 IT 合同。

Okay. And maybe to follow up on that last part there, Brian, a couple of the newer contracts as an example, since you've called this out a couple of times in the last year, so this tape out this you referred to a year ago with the customer, you can't really tell us all about other than seeing an opportunity for tens of millions of dollars. Is that one of the contributors? And can you allude to what any of those other ones that are driving some of the increase here?

好的。也許是為了跟進最後一部分，布萊恩，以幾個較新的合約為例，因為你在去年已經多次提到這一點，所以這個磁帶是你一年前提到的對於客戶來說，除了看到數千萬美元的機會之外，你無法真正告訴我們一切。這是貢獻者之一嗎？您能透露一下推動這裡成長的其他因素是什麼嗎？

That's definitely contributing that. The one that was referred to earlier is the product we taped out for. So that one is definitely contributing in the quarter. Some development work we had announced during the last quarter, an IP win for 22FDX IP core, that is contributing in the quarter. And then we have some other smaller ones that are contributing as well that we think will contribute more meaningfully in 2024, even though we're doing some of the work for those in this quarter.

這絕對是其中的貢獻。前面提到的就是我們流片的產品。所以這個人肯定會在本季做出貢獻。我們在上個季度宣布了一些開發工作，其中 22FDX IP 核的 IP 勝利將在本季度做出貢獻。然後，我們還有其他一些較小的公司也在做出貢獻，我們認為它們將在 2024 年做出更有意義的貢獻，儘管我們正在本季為這些公司做一些工作。

Okay, perfect. Thanks for that characterization. Maybe let's jump into the pipeline here. Obviously, a nice increase from 140 to 162. I think one of the interesting comments from last quarter was, someone asked the same question, are there any parts of the pipeline that wanted bookings here? So I want to look at the gross add to the pipeline here quarter on quarter.

好的，完美。感謝您的描述。也許讓我們進入這裡的管道。顯然，從 140 增加到 162。我認為上個季度有趣的評論之一是，有人問了同樣的問題，管道中是否有任何部分需要在這裡預訂？因此，我想逐季度查看管道中的總增加量。

Yes, gross adds to the pipeline, the majority of that add are the net increase, which is just over $20 million, $22 million. It's coming from defense opportunities that are now in the funnel. The non-defense part of the funnel grew to about 10% net from last quarter. And then -- so that's factoring in the fact that the large government contract, some of that flowed out from funnel into booked business when we booked that new contract in August. So the again, a large net decreases are primarily defense and about 10% increase coming from the non-defense side of the business.

是的，管道的總增加量，其中大部分是淨增加量，剛超過 2000 萬美元、2200 萬美元。它來自現在處於漏斗中的防禦機會。渠道中的非國防部分較上季淨增至 10% 左右。然後，當我們在八月預訂新合約時，考慮到大型政府合約的一部分，其中一些從管道流入預訂業務。因此，大幅淨減少主要來自國防業務，約 10% 的成長來自非國防業務。

Okay. Fair enough. Thanks for that confirmation.

好的。很公平。感謝您的確認。

Sorry, let me just add one more, bit of color there. Most of that is IP-based opportunity, but there are some device opportunities coming in for that, some of which on the defense side are coming from our antifuse business. We are one of the only two companies that I'm aware of that have antifuse FPGAs. And we're seeing some opportunity for those, some new opportunity for those coming in. So it's good to see that. That's what gives us some of the optimism that the mature products for us will rebound back next year and beyond.

抱歉，讓我再添加一點顏色。其中大部分是基於IP的機會，但也有一些設備機會，其中一些在防禦方面來自我們的反熔絲業務。據我所知，我們是僅有的兩家擁有反熔絲 FPGA 的公司之一。我們看到了這些人的一些機會，一些新的機會。所以很高興看到這一點。這讓我們感到樂觀，我們的成熟產品將在明年及以後反彈。

Okay. That's helpful, Brian, thanks for that. One thing I wanted to follow-up with is, and I probably missed the exact language you gave here, which sounds like related to in some manner to the large government contract you've engaged with the second foundry. Can you help us understand what's going on there?

好的。這很有幫助，布萊恩，謝謝你。我想跟進的一件事是，我可能錯過了您在這裡提供的確切語言，這聽起來在某種程度上與您與第二家鑄造廠簽訂的大型政府合約有關。你能幫助我們了解那裡發生了什麼事嗎？

I'm not really able to say much about the government contract for obvious reasons other than in this new $15 million one that we're executing on now. We've added a second foundry to the mix from the first one. So we're currently designing for two different foundries and hopefully, as press releases take time to approve, once they are approved, then we can issue those, and it will become a little bit more clear who that's exactly, who the second one is.

除了我們現在正在執行的價值 1500 萬美元的新合約之外，由於顯而易見的原因，我實在無法對政府合約說太多。我們在第一個鑄造廠的基礎上又增加了第二個鑄造廠。因此，我們目前正在為兩個不同的代工廠進行設計，希望由於新聞稿需要時間來批准，一旦獲得批准，我們就可以發布它們，並且會變得更加清楚到底是誰，第二個是誰。

Okay, fair enough. I look forward to that. Last question, I'll jump out of line here. Understanding you're going to -- give us some more specific guidance in your view for 2024 in the next conference call, you're talking about some growth of 30% year on year as well as being profitable each quarter here. Maybe if you can talk a little bit to the visibility that helps you make that comment so far. That's somewhat atypical for -- I guess you are not a hardware company as much anymore, but I'd love to get a sense of where that visibility and confidence is coming from enabling you to make that comment, Brian?

好吧，很公平。我對此很期待。最後一個問題，我會在這裡跳出。了解您將在下一次電話會議中為我們提供一些關於您對 2024 年的看法的更具體指導，您在這裡談論的是同比 30% 的增長以及每個季度的盈利。也許您可以談談到目前為止可以幫助您發表評論的可見性。這有點不典型——我猜你不再是一家硬體公司了，但我很想知道這種可見性和信心是從哪裡來的，讓你能夠發表這樣的評論，布萊恩？

Yeah. I think if we divide up the business between device and IP services, on the device side, they're saying we're starting to see some improvement in the bookings and visibility, people recovering back from inventory digestion on our smartphone business and on the mature business, those are long-standing relationships with those customers. So I think we're getting some decent visibility from them to make a comment that we think next year we'll be up. And so that will contribute.

是的。我認為，如果我們將業務劃分為設備和 IP 服務，在設備方面，他們會說我們開始看到預訂量和可見性方面有所改善，人們從智慧型手機業務和 IP 業務的庫存消化中恢復過來。成熟的業務，這些是與客戶的長期關係。所以我認為我們從他們那裡得到了一些不錯的知名度，並發表了我們認為明年我們會上升的評論。這將會有所貢獻。

On the IP side, here there's a mix of these development contracts and pure IP licenses. And I think that the contracts tend to be multi-month, multi-quarter, sometimes even longer contracts. And so the more we're operating under these contracts, I think the get better visibility we have to what follows beyond the current contract well into 2024.

在知識產權方面，這裡混合了這些開發合約和純知識產權許可。我認為合約往往是多個月、多季、有時甚至更長的合約。因此，我們根據這些合約進行的運作越多，我認為我們就能更了解目前合約之後到 2024 年的情況。

And then on the IP side, I think that the more customers we engage with, I wouldn't necessarily say the easier it gets, but the more understanding we have on how the flow goes with the customer, how they make their decisions. We come in, I think with more and more data that they need to see to make decisions. And so it's making the process more understandable, more forecastable by us.

然後在智慧財產權方面，我認為我們接觸的客戶越多，我不一定會說事情變得越容易，但我們對流程如何與客戶以及他們如何做出決策有了更多的了解。我認為我們進來了，他們需要看到越來越多的數據來做出決策。因此，它使我們更容易理解、更可預測這個過程。

And we're just layering in so many of these into the sales funnel that it just increases our confidence that we're going to be able to grow 30% just because at the end of the day, sales funnel is a numbers game, right. More numbers you have, the more qualified opportunities, the it's going to flow at the bottom into book business.

我們只是將其中的許多內容分層放入銷售漏斗中，這只會增加我們的信心，我們將能夠增長 30％，因為歸根結底，銷售漏斗是一個數字遊戲，對吧。你擁有的數字越多，合格的機會就越多，它就會從底層流入圖書業務。

And so now that we're three years into this new business model, I think we're getting a handle about how those things move through, not to a point where I can give you a number that says, oh I need X in the funnel to generate Y two years from now in revenue. But I think enough that we can directionally say we think next year will be another 30% growth year on the top line for us.

因此，現在我們已經進入這種新的商業模式三年了，我認為我們正在了解這些事情如何發展，而不是到了我可以給你一個數字說，哦，我需要 X 的程度。兩年後產生Y收入的漏斗。但我想得足夠多了，我們可以明確地說，我們認為明年將是我們營收又成長 30% 的一年。

Okay, perfect. Thanks, Brian, Elias. I'll jump out of line.

好的，完美。謝謝，布萊恩，埃利亞斯。我會跳出隊伍。

Thanks, Richard.

謝謝，理查。

Rick Neaton, Rivershore Investment Research.

Rick Neaton，Rivershore 投資研究公司。

Thank you. Congratulations, Brian and Elias on a record quarter. It's been a long time coming.

謝謝。恭喜布萊恩和埃利亞斯創下了創紀錄的季度業績。已經很久了。

Thank you.

謝謝。

Yes, Rick. Thanks.

是的，瑞克。謝謝。

I wanted to ask you a little bit about the second aspect of the Rad Hard contract. For several quarters you've talked about the contract having the $72 million possible revenue flow by 2026. Does that number include revenue flow from the second foundry?

我想問你一些關於 Rad Hard 合約的第二個方面的問題。幾個季度以來，您一直在談論到 2026 年合約可能帶來 7,200 萬美元的收入流。這個數字是否包括第二家代工廠的收入流？

Does the revenue flow include in the [$72 million]?

收入流是否包含在[7,200萬美元]中？

Does the $72 million just includes SkyWater, who's your foundry partner or does it include more than SkyWater? The second foundry.

這 7,200 萬美元是否只包括您的代工夥伴 SkyWater，還是不僅僅包括 SkyWater？第二鑄造廠。

It would include more than just the SkyWater foundry, which was the first foundry that we announced back in August of last year.

它不僅包括 SkyWater 鑄造廠，這是我們去年 8 月宣布的第一家鑄造廠。

Okay. I just wanted to get a better understanding of that, whether SkyWater only was part of the $72 million possibility. Okay. And that dovetails into whatever has been said at its conference call. Secondly, so what you're saying with your smartphone customer is you now have an extra year of visibility into one more year of design-ins of QuickLogic products into that company's smartphone family. Is that what you're saying now?

好的。我只是想更了解這一點，SkyWater 是否只是 7,200 萬美元可能性的一部分。好的。這與電話會議上所說的內容相吻合。其次，您對智慧型手機客戶所說的是，您現在可以多一年了解 QuickLogic 產品在該公司智慧型手機系列中的設計情況。你現在是這麼說的嗎？

We do. We have meetings with them about once a quarter at the management level for planning and visibility purposes. And the net of that is yeah, we see the horizon pushing into 2025 now for when we'll be continuing to ship EOS S3 devices.

我們的確是。我們大約每季與他們舉行一次管理層會議，以進行規劃和提高可見度。最終結果是，我們預計 2025 年我們將繼續交付 EOS S3 設備。

And I think the other aspect of that like I said earlier is just that we were seeing their inventory that they took on earlier in the year being digested to the point where we're seeing increased backlog and shipments for this quarter over the last quarters. I think we've turned the corner on their inventory digestion, so we can project into 2024 to be a bigger year revenue perspective wise for smartphones for us than in 2023.

我認為，就像我之前所說的那樣，我們看到他們今年早些時候的庫存正在被消化，以至於我們看到本季度的積壓和發貨量比過去幾個季度有所增加。我認為我們已經扭轉了庫存消化的困境，因此我們可以預期 2024 年智慧型手機的收入前景將比 2023 年更大。

Okay. Thank you for that. In terms of the sales funnel and the quantification of the $162 million, does that include any expected product sales from storefronts in the future from your storefront operations? Or are you just talking basically eFPGA IP license and royalties in that funnel?

好的。謝謝你。就銷售漏斗和 1.62 億美元的量化而言，這是否包括您店面營運中未來店面的任何預期產品銷售？或者您只是在談論該頻道中的 eFPGA IP 授權和版稅？

So on the commercial side of the funnel, there are some device opportunities in there that we would be under the storefront, but it's I would say it's not the lion's share of that. And I would still be within this two-year horizon that we have on the sales funnel. It does not include anything from, like a defense storefront perspective because, frankly, if I added that number to it, you would probably say, Brian, you're crazy, you can't say your funnels, $500 million now.

因此，在通路的商業方面，我們將在店面下方提供一些設備機會，但我想說這並不是其中的最大份額。我仍然會在我們銷售漏斗上的兩年期限內。它不包括任何來自國防店面角度的內容，因為坦白說，如果我將這個數字添加到其中，您可能會說，布萊恩，您瘋了，您不能說您的漏斗，現在 5 億美元。

So we're keeping those things out of it for now. And any device storefront is related to either the mature entities devices that we can sell immediately off of inventory or some of the commercial device business we have on the EOS and that's it. Any of the defense storefront stuff, that's more than a couple of years out. It's not included in our number for the reasons I just stated.

所以我們暫時不考慮這些事情。任何設備店面都與我們可以立即從庫存中出售的成熟實體設備或我們在 EOS 上擁有的一些商業設備業務相關，僅此而已。任何國防店面的東西，都需要幾年的時間。由於我剛才所說的原因，它沒有包含在我們的數字中。

Okay. So you're not -- it's -- we shouldn't expect defense storefront revenues before 2026, then I would assume based on --

好的。所以你不是 - 它是 - 我們不應該期望 2026 年之前國防店面收入，然後我假設基於 -

Yes and no to the it. If it's defense storefront for devices that are getting designed today, like this government contract, and I agree with you. We're not going to sell devices until the contract's done from a development perspective. And we said that that's like 2026 onwards. If it's defense storefront for again, standard products that we have today or those types of devices, then yeah, it could happen before that because we already have devices. We're not designing that. We're just designing them in, which is a very different task with the customer.

是的，也不是。如果是今天正在設計的設備的國防店面，例如這份政府合同，我同意你的觀點。從開發角度來看，在合約完成之前我們不會出售設備。我們說那是 2026 年以後的事。如果它又是國防店面，我們今天擁有的標準產品或那些類型的設備，那麼是的，它可能會在那之前發生，因為我們已經擁有設備。我們不是這樣設計的。我們只是將它們設計進去，這對客戶來說是一項非常不同的任務。

Okay. Thanks, Brian; appreciate it. I'll jump out of the queue and thanks for your answers.

好的。謝謝，布萊恩；欣賞它。我會跳出隊列並感謝您的回答。

Thanks, Rick.

謝謝，瑞克。

Thank you. Ladies and gentlemen, this concludes our question-and-answer session. I'd like to turn the call back to management for closing remarks.

謝謝。女士們先生們，我們的問答環節到此結束。我想將電話轉回給管理階層，讓其結束語。

I want to thank you all for participating in today's call and for your continued support. We look forward to speaking when we report our fourth quarter of fiscal [2023] results in late February or at some of the conferences we're attending over the next few months including in person at the Craig-Hallum Alpha Select Conference, which is being held on November 15 and 16, 2023. On December 11, 2023, we will be at the Virtual Oppenheimer 5G Conference, and the Needham Conference in early January 2024. Thanks again, and have a great day. Thank you.

我要感謝大家參加今天的電話會議並感謝你們的持續支持。我們期待在 2 月底報告我們的第四季度 [2023] 財年業績時或在未來幾個月我們將參加的一些會議上發表講話，包括親自參加 Craig-Hallum Alpha Select 會議，該會議正在於2023年11月15日至16日舉行。2023年12月11日，我們將參加虛擬奧本海默5G會議，並於2024年1月初參加尼達姆會議。再次感謝，祝你有美好的一天。謝謝。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。