Quicklogic Corp (QUIK) 2023 Q4 法說會逐字稿

Greetings. At this time, I would like to welcome everyone to QuickLogic Corporation's fourth-quarter and fiscal 2023 earnings results conference call. As a reminder, today's call is being recorded. I would now like to turn the conference over to Ms. Alison Ziegler of Darrow Associates. Ms. Ziegler, please go ahead.

問候。現在，我歡迎大家參加 QuickLogic Corporation 第四季和 2023 財年財報業績電話會議。提醒一下，今天的通話正在錄音。現在，我想將會議交給 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.

謝謝接線員，也謝謝大家的加入我們。今天的演講者是總裁兼執行長 Brian Faith 和高級副總裁兼財務長 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.

提醒一下，QuickLogic 今天發表的一些評論是前瞻性陳述，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有關的預期、與 QuickLogic 未來性能設計活動有關的陳述以及其將新設計機會轉化為生產出貨的能力。

Timing and market acceptance of its customers' products, schedule changes in 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.

客戶產品的時間和市場接受度、生產開始日期的安排變化都可能影響出貨時間。公司未來的評估體系、擴大我們的生態系統合作夥伴的數量以及對收入、毛利率、營業費用、盈利能力、現金的預期業績和財務預期。

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.

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 最近向美國證券交易委員會提交的定期報告中討論的風險因素。

QuickLogic assumes no obligation to update any forward-looking statements or information which speak as of the respective date of any new information or future events. In today's call, we will 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.

QuickLogic 不承擔更新任何前瞻性陳述或資訊的義務，這些陳述或資訊顯示了任何新資訊或未來事件的相應日期。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 結果以及其他財務報表的詳細對帳。

We have also posted an updated financial table on our IR webpage that provides current and historical non-GAAP data. 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.

我們也在我們的 IR 網頁上發布了更新的財務表，提供當前和歷史非 GAAP 數據。請注意，QuickLogic 使用其網站、公司部落格、公司 Twitter 帳戶、Facebook 頁面和 LinkedIn 頁面作為發布其業務資訊的管道。

Such information may be deemed material information and QuickLogic may use these channels to comply with this disclosure obligations under Reg FD. A copy of the prepared remarks made on today's call will be posted on QuickLogic's IR webpage shortly after the conclusion of today's earnings call. I would now like to turn the call over to Brian. Go ahead, Brian.

此類資訊可能被視為重要訊息，而 QuickLogic 可能會使用這些管道來遵守 Reg FD 下的揭露義務。今天的電話會議上準備好的發言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。現在我想將電話轉給 Brian。繼續吧，布萊恩。

Thank you, Alison. Good afternoon, everyone, and thank you all for joining our fourth-quarter fiscal 2023 conference call. Q4 revenue increased 83% year-over-year to $7.5 million. This growth was driven by record high IP revenue. Full year revenue increased 31% to $21.2 million. New products represented 86% of total revenue in 2023, up from 72% in total revenue in 2022.

謝謝你，艾莉森。大家下午好，感謝大家參加我們的 2023 財年第四季電話會議。第四季營收年增 83% 至 750 萬美元。這一增長主要得益於創紀錄的 IP 收入。全年營收成長 31% 至 2,120 萬美元。新產品佔 2023 年總收入的 86%，高於 2022 年總收入的 72%。

We believe the percentage of new product revenue, which is driven mostly by IP contracts, will increase again in 2024. We set several new all-time records for QuickLogic in 2023. These include new quarterly records for non-GAAP operating profit and non-GAAP net profit set in Q4 and for the full year.

我們相信，主要受 IP 合約推動的新產品收入佔比將在 2024 年再次增加。我們在 2023 年為 QuickLogic 創下了多項新的歷史紀錄。其中包括第四季和全年創下的非公認會計準則營業利潤和非公認會計準則淨利潤的季度新紀錄。

We also set new records for non-GAAP operating margin and non-GAAP net profit margin. Based on our outlook for greater than 30% revenue growth in 2024, which is well supported by our record $168 million opportunity funnel. We anticipate eclipsing those records this year.

我們也創下了非公認會計準則營業利潤率和非公認會計準則淨利潤率的新紀錄。根據我們對 2024 年營收成長超過 30% 的預測，這得到了我們創紀錄的 1.68 億美元機會漏斗的有力支持。我們預計今年將打破這些紀錄。

The short story here is the IP business model we launched in 2020 is delivering strong results. Over the last three years, we have delivered a top-line growth of 146%, increased our non-GAAP gross profit dollars by over 230% and with a modest decrease in non-GAAP operating expenses improved our operating leverage by over 250%.

簡而言之，我們在 2020 年推出的 IP 商業模式正在取得強勁成果。在過去三年中，我們的營業收入成長了 146%，非公認會計準則下的毛利增加了 230% 以上，同時非公認會計準則下的營業費用略有下降，營業槓桿率提高了 250% 以上。

With this performance, a profitable year now under our belts and an outlook for continued growth driven mostly by new IP customers. I think it's fair to say our new IP business model has developed solid traction. Let's take a few minutes now to update the status for some of our major contracts. Last August, we announced the award of the second phase of our government contract that has a total potential of $72 million.

憑藉這樣的業績，我們今年已經實現了盈利，並且預計將繼續實現成長，主要由新的 IP 客戶推動。我認為可以公平地說，我們的新 IP 商業模式已經形成了堅實的發展勢頭。現在讓我們花幾分鐘來更新一些主要合約的狀態。去年八月，我們宣布授予第二階段政府合同，總金額達 7,200 萬美元。

This phase added Honeywell Aerospace as a foundry partner and increased the funding from Phase 1 levels to bring Honeywell up to speed quickly. Phase 2, also funded our continued activity with SkyWater Technologies. And our growth projections for 2024, we are modeling a return to the funding rate of Phase 1 for the next phase of this contract.

此階段增加了霍尼韋爾航空航太作為代工合作夥伴，並增加了第一階段的資金投入，以使霍尼韋爾能夠快速跟上步伐。第二階段也資助了我們與 SkyWater Technologies 的持續合作。我們對 2024 年的成長預測是，我們正在為該合約的下一階段模擬第一階段的融資率回報。

This outlook may prove to be conservative but providing conservative projections is our goal. While we are highly confident of achieving our 30%-plus revenue growth objective in 2024, the timing and cadence of large IP contracts and a strategic shift in how we allocate revenue between engineering services and IP will push the recognition of certain revenue into the second half of 2024.

這種觀點可能被證明是保守的，但提供保守的預測是我們的目標。雖然我們對在 2024 年實現 30% 以上的收入成長目標充滿信心，但大型 IP 合約的時間和節奏，以及我們在工程服務和 IP 之間分配收入的策略轉變，將使某些收入的確認推遲到 2024 年下半年。

It is important to note, this shift in allocation does not impact or delay our cash flow from IP contracts. Cash flow from IP contracts will remain as it has been in past years. This shift simply better aligns revenue with the value of our deliverables and improves our ability to effectively negotiate and win future contracts.

值得注意的是，這種分配變化不會影響或延遲我們來自 IP 合約的現金流量。來自知識產權合約的現金流將與過去幾年保持相同。這種轉變使收入與我們的交付成果價值更好地保持一致，並提高了我們有效談判和贏得未來合約的能力。

Beyond building on the success of our large government contract. We are very well positioned to significantly expand our IP business across many new customers and market sectors. As well as a number of fabrication nodes supported by our IP in 2024. During the first two months of 2024, we have already booked one significant contract with a new IP customer and believe we will have a second one but later this week.

除了鞏固我們大型政府合約的成功之外。我們已做好準備，可以向許多新客戶和新市場領域大幅拓展我們的智慧財產權業務。以及我們的IP在2024年支援的多個製造節點。在 2024 年的前兩個月，我們已經與一位新的 IP 客戶簽訂了一份重要合同，並相信本週晚些時候我們將簽訂第二份合約。

These two contracts and others we believe we will book in the coming months will contribute to cash flow throughout 2024. However, revenue will not be recognized on our income statement until the second half of the year.

我們相信，這兩份合約以及未來幾個月將簽訂的其他合約將為 2024 年全年的現金流做出貢獻。然而，收入直到今年下半年才會在我們的損益表中確認。

I would like to provide a little more color on both of these designs. First new contract that we finalized already this year is exciting and we believe indicative of forward design trends that favor the incorporation of eFPGA technology.

我想為這兩種設計提供更多色彩。我們今年已經敲定的第一份新合約令人興奮，我們相信這表明了有利於融入 eFPGA 技術的未來設計趨勢。

I cannot go into as much detail on this design, but I can share it as a new defense industrial base customer and the application is not related to our large government contract. This design will be fabricated by GlobalFoundries on its low power 12 nanometer process known as 12LP. We believe there will be opportunities to expand our engagement with this customer going forward.

我無法詳細介紹這個設計，但我可以作為新的國防工業基地客戶分享它，並且該應用與我們的大型政府合約無關。該設計將由 GlobalFoundries 採用其低功耗 12 奈米製程（稱為 12LP）來製造。我們相信未來將有機會擴大與該客戶的合作。

The second other contracts is with a large company that I'm sure you would recognize. This design is for a new ultra low-power SoC that is targeting a variety of commercial and industrial IoT applications as well as aerospace and defense applications outside the US.

第二份合約是與一家大公司簽訂的，我相信你會認識這家公司。該設計針對的是新型超低功耗 SoC，目標是各種商業和工業物聯網應用以及美國以外的航空航太和國防應用。

This design has been referenced in prior calls as government funded and will be fabricated by TSMC on its 12 nanometer process. Within the SoC our eFPGA technology is used for AI acceleration, which is a necessary function and most AI applications. We believe this will prove to be a rapidly growing application that is often better served by FPGA technology than a processor running the acceleration algorithms and software.

在先前的電話會議中提到，該設計由政府資助，將由台積電採用其 12 奈米製程生產。在 SoC 中，我們的 eFPGA 技術用於 AI 加速，這是大多數 AI 應用的必要功能。我們相信，這將是一個快速增長的應用程序，與運行加速演算法和軟體的處理器相比，FPGA 技術通常能更好地為其服務。

If you'll forgive me for diverging into a little tech talk, I'll briefly explain why this is the case. Acceleration is accomplished by processing data using an algorithm because acceleration is very important and can provide key competitive advantages for our customers. These acceleration algorithms are constantly refined and changed.

如果您能原諒我談論一些技術問題，我將簡單解釋為什麼會發生這種情況。加速是透過使用演算法處理資料來實現的，因為加速非常重要，可以為我們的客戶提供關鍵的競爭優勢。這些加速演算法被不斷地完善和改變。

Due to this the semiconductor device tasked with running the algorithms must be able to adapt to changes in the algorithms. Since it is impossible for a fixed ASIC to adapt to these changes, the only two ways to support the requirement or processor or programmable logic, which is most commonly accomplished today with FPGA technology.

因此，負責運行演算法的半導體設備必須能夠適應演算法的變化。由於固定的 ASIC 不可能適應這些變化，因此只有兩種方法可以支援該要求，即處理器或可程式邏輯，而這目前最常見的是使用 FPGA 技術來實現。

The challenge here that while these acceleration algorithms can run in the processor and the processor can be reprogrammed for algorithm changes, processors are inherently slower and consume far more power than pure hardware solutions like FPGAs. In this particular application, the priority was the lowest possible power consumption, and that is what led the customer to select our ultra low-power eFPGA IP.

這裡的挑戰是，雖然這些加速演算法可以在處理器中運行，並且可以對處理器進行重新編程以改變演算法，但處理器本質上比 FPGA 等純硬體解決方案更慢並且消耗更多電量。在這個特定的應用中，首要任務是盡可能降低功耗，這就是為什麼客戶選擇我們的超低功耗 eFPGA IP 的原因。

As AI expands into edge applications, we believe this will be a common application for eFPGA, but we are very well positioned to address. In November 2022, I shared that we had taped out a new device for a customer that incorporates our eFPGA IP due to strict confidentiality requirements, I can't share more details on the design win beyond a brief update.

隨著人工智慧擴展到邊緣應用，我們相信這將成為 eFPGA 的常見應用，但我們已準備好解決這個問題。2022 年 11 月，我分享說，由於嚴格的保密要求，我們已經為一位客戶流片了一款採用我們 eFPGA IP 的新設備，除了簡要更新之外，我無法分享有關該設計獲勝的更多細節。

We continued our work on this design during 2023, and it contributed revenue throughout the year, including Q4 the customers now working through certain aspects of the design. We believe this will take a couple of quarters and that our activity will resume during the second half of 2024. This customer could represent tens of millions of dollars in potential device revenue starting in a couple of years.

我們在 2023 年繼續進行該設計工作，並為全年帶來了收入，包括第四季度目前正在研究設計的某些方面的客戶。我們相信這將需要幾個季度，我們的活動將在 2024 年下半年恢復。從幾年開始，這個客戶可能會帶來數千萬美元的潛在設備收入。

Last September, we announced the leading technology company, chose our eFPGA IP for a design that will be fabricated using GlobalFoundries, 22FDX Platform. Again, due to strict confidentiality requirements. I cannot go into more detail on the design but I can share that we are on schedule to deliver our IP during this quarter.

去年九月，我們宣布領先的科技公司選擇了我們的 eFPGA IP 進行設計，並將使用 GlobalFoundries 的 22FDX 平台進行製造。再次，由於嚴格的保密要求。我無法詳細介紹設計，但我可以分享的是，我們將按計劃在本季度交付我們的 IP。

Last November, we announced a global semiconductor leader, chose our eFPGA IP for a design that will be fabricated on UMCs 22 nanometer platform. We are on schedule to deliver our IP for this design during this Q1. In total will be on contract to either deliver or begin development of our IP on six different foundry process technology combinations this quarter.

去年 11 月，我們宣布一家全球半導體領導者選擇了我們的 eFPGA IP 進行設計，該設計將在 UMC 22 奈米平台上製造。我們將按計劃在第一季交付此設計的 IP。總的來說，我們將按合約於本季交付或開始開發基於六種不同代工工藝技術組合的 IP。

This is up three times from a year ago, demonstrating the market demand for eFPGA IP is accelerating and the automation from our Australis IP Generator enables us to address the demand in a scalable way. By continue to be encouraged by the early steps we took to capitalize on the rising Chiplet market, and I am not at all surprised to see it as headline news today.

這比一年前成長了三倍，顯示市場對 eFPGA IP 的需求正在加速成長，而我們的 Australis IP Generator 的自動化功能使我們能夠以可擴展的方式滿足需求。我們為利用不斷增長的 Chiplet 市場而採取的早期措施繼續給我帶來鼓舞，因此我一點也不驚訝地看到它成為今天的頭條新聞。

Chiplet architectures enable customers to much more cost effectively incorporate FPGA into new designs. The research firm market US recently released its 10-year forecast, projecting that Chiplet market will grow from only a few billion dollars in 2023 to $107 billion in 2033. That represents a 10-year CAGR of over 42% and I believe we are very well positioned to capitalize on this growth. We have several Chiplet opportunities in our funnel, including deals with our partner, YorChip.

晶片架構使客戶能夠以更具經濟高效的方式將 FPGA 納入新設計中。研究公司Market US近日發布了其10年預測，預計Chiplet市場規模將從2023年的數十億美元成長至2033年的1,070億美元。這意味著 10 年複合年增長率超過 42%，我相信我們已準備好利用這一成長機會。我們的頻道中有幾個 Chiplet 機會，包括與我們的合作夥伴 YorChip 的交易。

As a matter of fact, we submitted a proposal to one customer earlier this month and have another on top that we expect to submit later in the first half. Our lead smartphone customer has worked through its excess inventory of EOS S3 and we resumed shipping during Q4 to support production. We expect the volume to increase in 2024 as our EOS S3 solution was selected for new designs that will ship into 2025.

事實上，我們在本月稍早向一位客戶提交了一份提案，而且還有另一份提案預計將在上半年稍後提交。我們的主要智慧型手機客戶已經處理完其 EOS S3 的過剩庫存，我們在第四季度恢復發貨以支援生產。由於我們的 EOS S3 解決方案被選用於將於 2025 年出貨的新設計，我們預計 2024 年的銷售量將會增加。

We are also forecasting modest increases in display bridge shipments this year and expect mature product revenue will be similar to what it was in 2023. The private label agreement that SensiML established last quarter with a leading MCU company is building traction, but not yet delivering revenue.

我們也預測今年顯示橋出貨量將小幅成長，預計成熟產品收入將與 2023 年的水準相似。SensiML 上季度與一家領先的 MCU 公司建立的自有品牌協議正在獲得關注，但尚未產生收入。

The MCU company has established and customer engagements and SensiML has established a notable engagements independently. We are optimistic that these and future engagements will lead to a material increase in SensiML revenue in 2024.

MCU 公司已與客戶建立了合作關係，而 SensiML 也獨立建立了顯著的合作關係。我們樂觀地認為，這些以及未來的合作將使 SensiML 的收入在 2024 年大幅增加。

With that, let me now turn the call over to Elias for a review of the financial results, and I will rejoin for our closing remarks. Elias, please go ahead.

說完這些，現在讓我將電話轉給 Elias，讓他審查財務結果，然後我將重新加入我們的結束語。埃利亞斯，請說。

Thank you, Brian, and good afternoon, everyone. Revenue was slightly above the midpoint of our guidance range and drove record Q4 net income, bringing the full year 2023 to record profitability on a non-GAAP basis, specifically, revenue in Q4 was $7.5 million, up 12% from the third quarter and up 83% from the fourth quarter of 2022.

謝謝你，布萊恩，大家下午好。營收略高於我們指引範圍的中點，並推動第四季度淨收入創下紀錄，使 2023 年全年在非 GAAP 基礎上實現創紀錄的盈利能力，具體而言，第四季度收入為 750 萬美元，較第三季度增長 12%，較 2022 年第四季度增長 83%。

Our results benefited from higher eFPGA IP license and professional services revenue for another full quarter of the second phase of the large eFPGA contract as well as higher smart connectivity and sensor product revenue. Within our Q4 revenue sales of new products were approximately $6.8 million. This compares to $6.1 million last quarter, up 12% and $2.8 million in the fourth quarter of 2022 of 140%.

我們的業績受益於大型 eFPGA 合約第二階段另一個整個季度的 eFPGA IP 授權和專業服務收入的增加，以及智慧連接和感測器產品收入的增加。我們第四季新產品的銷售額約為 680 萬美元。相比之下，上一季為 610 萬美元，成長 12%，2022 年第四季為 280 萬美元，成長 140%。

Mature product revenue was approximately $0.7 million, an increase of 15% from $0.6 million last quarter, although down from $1.2 million in Q4 last year. Non-GAAP gross margin in Q4 was 78.3% compared with 78% in the third quarter of 2023 and 53.2% in the fourth quarter of 2022.

成熟產品營收約 70 萬美元，較上季的 60 萬美元成長 15%，但低於去年第四季的 120 萬美元。第四季非公認會計準則毛利率為 78.3%，而 2023 年第三季為 78%，2022 年第四季為 53.2%。

The strong gross margins in the last two quarters 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 controls.

過去兩季的強勁毛利率源自於收入水準的提高、eFPGA 相關收入中交付物組合的變化，即專業服務所佔比例的提高以及持續的成本控制。

Our non-GAAP operating expenses in Q4 '23 were approximately $3.1 million. This compares with non-GAAP operating expenses of $3.3 million last quarter and $2.4 million in the fourth quarter a year ago. Non-GAAP operating expenses were lower than our outlook due to the timing of certain payments and the classification offsets in professional services to COGS.

我們 23 年第四季的非 GAAP 營業費用約為 310 萬美元。相比之下，上個季度的非 GAAP 營業費用為 330 萬美元，去年同期第四季的非 GAAP 營業費用為 240 萬美元。非公認會計準則下的營業費用低於我們的預期，原因是某些付款的時間安排以及專業服務對銷貨成本的分類抵銷。

Non-GAAP net income was a record $2.6 million or $0.18 per diluted share. This compares to non-GAAP net income of $1.8 million or $0.13 per share last quarter and a non-GAAP net loss of $544,000 of $0.04 per share in the fourth quarter of fiscal 2022.

非公認會計準則淨收入達到創紀錄的 260 萬美元，即每股 0.18 美元。相比之下，上個季度的非 GAAP 淨收入為 180 萬美元或每股 0.13 美元，2022 財年第四季的非 GAAP 淨虧損為 54.4 萬美元，每股 0.04 美元。

Now turning to the full year fiscal 2023 results. Total revenue was $21.2 million, up 31% from $16.2 million in fiscal 2022. New product revenue was $18.2 million compared to $11.7 million in the prior year. The increase was primarily driven by higher eFPGA IP and professional services that offset decreases in smart connectivity and EOS S3 revenue caused by customers digesting excess inventory.

現在來看看2023財年全年業績。總營收為 2,120 萬美元，較 2022 財年的 1,620 萬美元成長 31%。新產品收入為 1,820 萬美元，而去年同期為 1,170 萬美元。成長主要得益於 eFPGA IP 和專業服務的提高，抵消了因客戶消化過剩庫存而導致的智慧連接和 EOS S3 收入的下降。

As Brian noted, we saw some rebound in new silicon revenue during Q4, and I expect this trend to continue during 2024. Mature product revenue was $3 million compared to $4.5 million in fiscal 2022. We anticipate mature product revenue 2024 will be similar to 2023. For the full fiscal year 2023, we had one customer that accounted for 10% or more of our revenue.

正如 Brian 所說，我們在第四季看到新矽片收入有所反彈，我預計這一趨勢將持續到 2024 年。成熟產品收入為 300 萬美元，而 2022 財年為 450 萬美元。我們預計 2024 年成熟產品收入將與 2023 年相似。在整個 2023 財年，我們有一位客戶占我們收入的 10% 或更多。

Non-GAAP gross margin for 2023 was 69.8% compared to 56.1% in 2022. The year over year increase was primarily due to the higher revenue level, a change in the mix of deliverables, the capitalization of certain long-lived investments and continued cost controls. And while revenue was up 31% from the prior year, non-GAAP operating expenses increased approximately 13% to $12.2 million from $10.8 million in 2022 as we continue to maintain effective expense controls.

2023 年非 GAAP 毛利率為 69.8%，而 2022 年為 56.1%。年比成長主要歸因於收入水準的提高、交付成果組合的變化、某些長期投資的資本化以及持續的成本控制。雖然收入較上年增長了 31%，但由於我們繼續保持有效的費用控制，非 GAAP 營業費用從 2022 年的 1,080 萬美元增加約 13% 至 1,220 萬美元。

Yes, the combination of strong revenue growth and controlled operating expenses translated into record non-GAAP net income of $2.3 million or $0.17 per share compared to a non-GAAP net loss of $2.2 million in 2022. Total cash at the end of 2023 was $24.6 million compared with $19.2 million at year end 2022. This is inclusive of our newly amended and restated credit facility that has increased from $15 million to $20 million and extended to the end of 2025. Net cash increased by approximately $1.1 million sequentially.

是的，強勁的收入成長和受控的營運費用相結合，帶來了創紀錄的 230 萬美元非 GAAP 淨收入或每股 0.17 美元，而 2022 年的非 GAAP 淨虧損為 220 萬美元。2023 年底的總現金為 2,460 萬美元，而 2022 年底的總現金為 1,920 萬美元。這包括我們新修訂和重述的信貸額度，該額度從 1500 萬美元增加到 2000 萬美元，並延長至 2025 年底。淨現金季增約 110 萬美元。

Now moving to our guidance for the first quarter of fiscal 2024, which will end on March 31, 2024. Revenue guidance for Q1 2024 is approximately $6.2 million plus or minus 10%, which is up 50% over Q1 2023. First quarter revenues expected to be comprised of approximately $5.1 million of new products which is a year over year increase of 67% and $1.1 million of mature products, which is essentially flat with last year.

現在轉到我們對 2024 財年第一季的指導，該季度將於 2024 年 3 月 31 日結束。2024 年第一季的營收預期約為 620 萬美元（上下浮動 10%），比 2023 年第一季成長 50%。第一季的收入預計包括約 510 萬美元的新產品收入，年增 67% 以及 110 萬美元的成熟產品收入，與去年基本持平。

The sequential revenue decline from Q4 2023 is due to the timing and cadence of large IP contracts and a strategic shift that allocates a higher percentage of contract revenue to IP versus engineering services to better align with the value of our deliverables.

2023 年第四季以來收入的連續下降是由於大型 IP 合約的時間和節奏，以及策略轉變，即將更高比例的合約收入分配給 IP 而不是工程服務，以更好地與我們交付成果的價值保持一致。

While this will result in shifting certain revenue recognition in the second half of the year, it is not expected to impact the timing of cash flow from these contracts. For the full year 2024, we expect to grow revenue by more than 30% and generate positive cash flow. Based on the anticipated Q1 revenue mix non-GAAP gross margin for the quarter is expected to be approximately 70% plus or minus 5-percentage-points.

雖然這將導致下半年某些收入確認發生轉變，但預計不會影響這些合約的現金流時間。就 2024 年全年而言，我們預計收入將成長 30% 以上，並產生正現金流。根據預期的第一季營收組合，本季非 GAAP 毛利率約為 70%（正負 5 個百分點）。

Our non-GAAP operating expenses will be approximately $3.5 million plus or minus 10%. We believe quarterly non-GAAP OpEx will remain in the $3.5 million range this year with accretion increases to support new programs. Please keep in mind that given our industry, we may be required to reclassify certain expenses to COGS or capitalize certain costs at times.

我們的非 GAAP 營業費用約為 350 萬美元，上下浮動 10%。我們相信，今年季度非 GAAP 營運支出將維持在 350 萬美元左右，並將增加資金以支持新項目。請記住，考慮到我們的行業，有時我們可能需要將某些費用重新分類為銷貨成本或將某些成本資本化。

The reclassifications are mainly related to labor and tooling for our revenue contracts with customers, capitalization, reduce OpEx and change in timing for recognizing the corresponding expenses and COGS. This may cause variability in gross margins and operating results. With these variables in mind, we believe our full year 2024 non-GAAP gross profit margin will be in the upper 60% range.

重新分類主要與我們與客戶簽訂的收入合約的勞動力和工具、資本化、減少營運支出以及確認相應費用和銷貨成本的時間變化有關。這可能會導致毛利率和經營績效的變化。考慮到這些變量，我們相信 2024 年全年非 GAAP 毛利率將在 60% 以上。

After interest other income and taxes, we currently forecast that our Q1 non-GAAP net income will be approximately $0.5 million to $1.1 million or $0.03 to $0.08 per share based on roughly $14.4 million fully diluted shares. We believe we are well positioned to do so deliver strong profitability for the full year 2024. The difference between our GAAP and non-GAAP results is related to non-cash stock-based compensation expenses.

在扣除利息、其他收入和稅款後，我們目前預測，基於約 1,440 萬股完全稀釋股份，我們的第一季非 GAAP 淨收入將約為 50 萬美元至 110 萬美元，或每股 0.03 美元至 0.08 美元。我們相信，我們有能力在 2024 年全年實現強勁的獲利能力。我們的 GAAP 和非 GAAP 結果之間的差異與非現金股票薪酬費用有關。

In Q1, we expect this compensation will be approximately $0.7 million. As a reminder, there will be movement in our stock based composition during the year, and it may vary each quarter based on the timing of grants to employees. With investments this quarter to support the new design wins that we have discussed, including hiring critical engineering and sales roles and the timing of such impairments at the midpoint, we expect cash reserves to be less than $1 million in Q1.

在第一季度，我們預計該補償金額約為 70 萬美元。提醒一下，我們股票的組成在年內會有所變動，並且根據授予員工的時間，每個季度可能會有所不同。由於本季的投資用於支持我們所討論的新設計成果，包括聘用關鍵的工程和銷售人員，並在中點計算此類減損損失，我們預計第一季的現金儲備將少於 100 萬美元。

These investments in anticipation of continued strong growth in 2024 under timed with the signing of new contracts for design wins. As I noted earlier, we are on track to be cash flow positive for the full year 2024. Thank you very much. With that, let me now turn the call back over to Brian for his closing remarks.

這些投資預期在 2024 年繼續保持強勁成長，同時簽署了新的設計合約。正如我之前提到的，我們預計在 2024 年全年實現現金流為正。非常感謝。說完這些，現在讓我把電話轉回給布萊恩，請他作最後發言。

Thank you, Elias. The amazing team I get to work with every day as in only three years driven the development of a successful, profitable and high-growth IP Business Model. Thank you all for your hard work and dedication. We have also maintained our core capabilities as a silicon supplier that we will more fully leverage in our storefront and other device oriented strategies going forward.

謝謝你，伊萊亞斯。我每天都與出色的團隊一起工作，僅僅三年時間就推動了成功、盈利且高成長的 IP 商業模式的發展。感謝大家的辛勤工作和奉獻。我們也維持了作為矽片供應商的核心能力，我們將在未來的店面和其他以設備為導向的策略中更充分地利用這項能力。

This ability to provide turnkey solutions for our IP customers sets us apart from our competition. Since launching our IP Business Model in 2020, we've grown non-GAAP gross profit dollars by over 230%. And with a modest reduction in non-GAAP OpEx, our operating leverage has increased by a remarkable 251%. While this performance marks a great turnaround story I think the best is yet to come.

這種為我們的 IP 客戶提供交鑰匙解決方案的能力使我們在競爭中脫穎而出。自 2020 年推出 IP 業務模式以來，我們的非 GAAP 毛利成長了 230% 以上。隨著非 GAAP 營運支出的小幅下降，我們的營運槓桿率卻大幅提升了 251%。雖然這次演出標誌著一個偉大轉折的故事，但我認為最好的還在後頭。

We exited 2023 with not only solid traction but also momentum. We have already booked one significant contract with a new IP customer and have a second to be booked later this week. We have also realized net funnel growth to a record $168 million. This is a sterling example of the old adage that success breeds success as new bookings grow, so do new opportunities.

我們在 2023 年結束時不僅擁有強勁的牽引力，而且發展勢頭強勁。我們已經與一位新的 IP 客戶簽訂了一份重要合同，本週晚些時候還將簽訂第二份合約。我們也實現了淨漏斗成長，達到創紀錄的 1.68 億美元。這是那句老話的絕妙例證：隨著新預訂的成長，成功會帶來成功，新的機會也會隨之成長。

While we expect 2024 will be a year of strong growth, profitability and positive cash flow that is driven mostly by new IP customers. We also believe the royalty and store for our revenue will soon be visible on the horizon to accelerate our growth in future years.

我們預計 2024 年將是強勁成長、獲利和正現金流的一年，這主要得益於新的 IP 客戶。我們也相信，我們的特許權使用費和商店收入將很快出現在地平線上，從而加速我們未來幾年的成長。

With that, I would like to open the call for questions.

現在，我想開始提問。

(Operator Instructions)

（操作員指令）

Rick Neaton, Rivershore Investment Research

瑞克‧尼頓（Rick Neaton），Rivershore Investment Research

Thank you, and good afternoon, Brian and Elias. My first question is -- and congratulations on a profitable 2023. In looking at how your revenue is going to be second-half weighted this year, the revenue recognition as opposed to the cash flow. What percentages would you put on that 40%, 60%, 45%, 55%, how in general, if not, should we look at that?

謝謝，布萊恩和伊萊亞斯，下午好。我的第一個問題是—恭喜您在 2023 年實現盈利。在研究今年下半年的收入權重時，收入確認而不是現金流。您會將 40%、60%、45%、55% 的比例設為多少？

You mean second half to first half as a percentage of total?

你的意思是下半部佔上半部的總數的百分比？

Yes.

是的。

You're guessing and for greater than 50% will be second half. I don't think it's going to be as high as 70% or 80%, but greater than 50%. And you know, others make a comment here as we get into more of these larger IP contracts. And we are probably more certain of winning something than the actual timing of the contract getting executed because you can imagine the larger the contract, the more complicated, the contracting processes.

您正在猜測，其中超過 50% 是下半部。我認為不會高達 70％ 或 80％，但會超過 50％。你知道，當我們簽訂更多更大的智慧財產權合約時，其他人也會在這裡發表評論。我們可能比合約實際執行的時間更有把握贏得某些合同，因為你可以想像合約越大，簽約流程就越複雜。

And that's why I think we're taking a somewhat conservative approach in how that revenue lays out in addition to the point that you reinforced on this shift in how we're deciding the value of the contracts between the upfront work versus the IP license that says recognized at the end of the deliverable period.

這就是為什麼我認為我們在收入分配方面採取了相對保守的方法，此外，你強調了我們在決定前期工作與在交付期結束時確認的 IP 許可之間的合約價值方面發生了轉變。

Yeah, it's more than 50% will be second half, I think also, as I think if you look and on an annual basis quarter to quarter reference, so like Q1 2023, Q1 2024 our Q2 2023, Q2 2024. I think we're safely forecasting that every quarter in 2024 will be greater than the corresponding quarter in 2023. And if you just laid that out in the model, you can see that that would be greater than 50% of the revenue would be in the second half, but also not what I would call hockey stick either.

是的，我認為下半年也會有超過 50% 的成長，如果您按年度逐季參考來看，例如 2023 年第一季、2024 年第一季、2023 年第二季、2024 年第二季。我認為我們可以有把握地預測，2024 年每季的銷售額都將高於 2023 年相應季度的銷售額。如果您在模型中將其展示出來，您會發現下半年的收入將超過 50%，但不是我所說的曲棍球棒。

Okay. Thanks for that color on that issue. The new contract that you expect to book this week. It relates back to a customer you've talked about for several quarters the one at TSM. Is that the one that you referenced could produce tens of millions of dollars of device revenue or chip revenue in a year or two? Is that the same one?

好的。感謝您對這個問題的關注。您預計本週訂購的新合約。它與您幾個季度以來一直在談論的一位客戶有關，那就是 TSM 的客戶。這就是您提到的可以在一兩年內產生數千萬美元的設備收入或晶片收入的公司嗎？那是同一個嗎？

No, that's a different customer and that's a good, okay. We need more shots-on-goal and more opportunities to engage with IP and potentially converted to a storefront deal. But now that to be clear, that's a different customer than that one.

不，那是不同的顧客，這很好，好的。我們需要更多射門機會和更多與 IP 互動並可能轉化為店面交易的機會。但現在要先明確的是，那位客戶與那位客戶是不同的。

Okay. Thanks for the clarity there. One final question on FPGA in AI at the edge. Do you see that as a growing market on that on weighted toward the second half of this decade. In other words, as AI rolls out in large supercomputers in the datacenters right now with GPUs as accelerators. Are you seeing AI at the edge more of a 2025 to 2030 narrative or even starting second half of this year?

好的。感謝您的澄清。最後一個問題是關於邊緣 AI 中的 FPGA。您是否認為這是一個成長型市場，並且將在本世紀下半葉呈現成長態勢？換句話說，隨著 AI 在資料中心的大型超級電腦中廣泛應用，GPU 已成為加速器。您是否認為人工智慧將更多地出現在 2025 年至 2030 年之間，甚至在今年下半年開始出現？

But as far as revenue impact to us, I think it's going to be starting from second half of this year based on this contract that we're going to be signing here imminently, but they're not alone in discussing that kind of a use case with us. I think a lot of people are trying to figure out, not everybody wants to use Nvidia.

但就對我們的收入影響而言，根據我們即將簽署的這份合同，我認為這將從今年下半年開始，但他們並不是唯一與我們討論此類用例的公司。我想很多人都在想，並不是每個人都想使用 Nvidia。

Everybody is today without everybody wants to. And I think as soon as people can figure out other ways of tackling that problem and FPGA technology being one of those and then the software stacks associated with that, once they start figuring that out and I think you'll see more people using that type of technology.

今天人人皆有，無人有願。我認為，一旦人們能夠找到解決這個問題的其他方法，FPGA 技術就是其中之一，然後是與之相關的軟體堆疊，一旦他們開始解決這個問題，我認為你會看到更多的人使用這種類型的技術。

And I when say FPGA because I really should say FPGA because I think naturally, people are trying to look at doing their own ASIC and taken draw excuse me to control their own destiny in that sense. So I think that will drive future opportunities for us and the more of these wins that we have today that we can articulate value propositions like go to other people.

我之所以說 FPGA，是因為我確實應該說 FPGA，因為我認為自然而然地，人們正在嘗試製作自己的 ASIC，並從這個意義上控制自己的命運。所以我認為這將為我們帶來未來的機遇，我們今天取得的勝利越多，我們就能向其他人表達價值主張。

I think that will help accelerate that. Just to the point about the edge in the data center, a lot of people heard. I think all the press right now is going towards the data center because of all the generative AI grabbing all the headlines. And so naturally, what we read and hear about is more on that end of the spectrum. But there's still a fundamental physics problem in how you do some level of inferencing for what I'll call more practical applications at the edge.

我認為這將有助於加速這一進程。很多人都聽說過關於資料中心邊緣的問題。我認為現在所有媒體都把焦點放在資料中心上，因為生成式人工智慧佔據了所有頭條新聞。因此很自然地，我們所讀到和聽到的內容更屬於這一範圍。但是，對於我稱之為更實際的邊緣應用，如何進行某種程度的推理，仍然存在一個基本的物理問題。

And we're seeing people look at our FPGA and eFPGA technology for that, but again, that's what drove this soon to be signed contract. And I'm sure that companies not alone and being able to use FPGA for those types of use cases.

我們看到人們正在關注我們的 FPGA 和 eFPGA 技術，但這又是推動我們即將簽署這份合約的因素。我確信，並不是只有公司能夠使用 FPGA 來實現這些類型的用例。

Okay. Thanks for that explanation, Brian, and thank you for letting me ask these questions.

好的。謝謝您的解釋，Brian，也謝謝您允許我提出這些問題。

Absolutely. Thank you.

絕對地。謝謝。

Richard Shannon, Craig-Hallum

理查德·香農、克雷格·哈勒姆

Well, hi Brian and Elias. Thanks for taking my questions. And I'll add my congratulations on a profitable 2023. Great accomplishment.

嗨，Brian 和 Elias。感謝您回答我的問題。我還要祝賀您 2023 年取得豐厚的利潤。偉大的成就。

Thank you, Richard.

謝謝你，理查。

So in the future on, let's see a couple of things. I wanted to touch on here. A lot of the interesting details you shared here today. Brian, I guess I wanted to ask about the strategic Rad-Hard contract and I wanted to make sure I understood that the intent of the comment about returning to previous run rate of that contractor. I'm sure I'd put your language here, Brian, but maybe you could repeat that what that means?

因此，在未來，讓我們看看一些事情。我想談談這裡。您今天在這裡分享了很多有趣的細節。布萊恩，我想問一下關於 Rad-Hard 戰略合約的問題，並且想確保我理解了關於恢復該承包商之前的運行率的評論意圖。布萊恩，我確信我會把你的語言放在這裡，但也許你可以重複一下那是什麼意思？

I'm going to tried to do that in a way that I'm allowed to do that. And let me say the right way to say this. So right now, we're doing something with two fabs and we're doing a lot of design continually on our RH90 and I'll call it catching up or accelerating similar type design on the Honeywell process. I don't know that it's going to continue like that forever as far as that amount of work in that amount of time on two foundries.

我將嘗試以我被允許的方式來做到這一點。讓我告訴你正確的說法。所以現在，我們正在與兩家晶圓廠合作做一些事情，我們正在 RH90 上不斷做大量設計，我稱之為趕上或加速霍尼韋爾工藝上的類似設計。我不知道這種情況是否會持續下去，以便在這麼長的時間內在兩個鑄造廠完成這麼多的工作。

And so we're taking a conservative view of what that means for our revenue in this quarter and for the balance of the year. And I would like to think that we are being conservative and that there's opportunities to increase that within the same time period. And I really can't go into further details on that note on that. I hope that you are you are okay with that, sensitivity,

因此，我們對這對本季以及全年收入的影響持保守看法。我認為，我們目前是保守的，並且有機會在同一時間段內提高這一水平。我確實無法進一步詳細闡述這一點。我希望你對此沒意見，敏感，

I guess I'll have to be okay with the Brian, but you know, I'm just challenge and ask a couple more questions on that, but I'll resist the temptation here. Following up there (multiple speakers)

我想我必須接受布萊恩的回答，但你知道，我只是想提出挑戰並就此提出幾個問題，但我會抵制住這種誘惑。繼續關注（多位發言者）

What I'm allowed to answer, but nothing more.

我可以回答，但僅此而已。

So yes, I know you have been. Let's here so much, I mentioned a couple of contracts here or one signed in one expect to be signed here shortly and that he made to them is the phrase in response to one of the last questions here about the size of these contracts seemingly growing larger.

是的，我知道你來過。我們在這裡說這麼多，我提到了這裡的幾份合同，或者一份簽署的合同，預計很快就會簽署，他對他們說的是回答這裡的最後一個問題，關於這些合同的規模似乎越來越大。

I mean, obviously, other than the strategic Rad-Hard, which I've seen it in a zone of its own here, are you generally seeing a trend of larger IP contracts at least so far this year versus last year in the year before or my mashing up your words there?

我的意思是，顯然，除了策略性的 Rad-Hard（我在這裡看到它處於一個自己的區域）之外，您是否總體上看到今年到目前為止與去年和前年相比 IP 合約規模更大的趨勢，或者我混淆了您的話？

So I'd say the average that we are seeing is up some and we're going to put a press release out tomorrow morning on the 12 nanometer one that some that we talked about today on the call. And you'll see a dollar figure, a rough dollar figure in that press release that we didn't go into on the call. So you'll see that generally they're trending up.

因此我想說，我們看到的平均值有所上升，我們將在明天早上發布有關我們今天在電話會議上討論的 12 奈米技術的新聞稿。您會在新聞稿中看到一個美元數字，一個粗略的美元數字，但我們在電話會議上並未詳細討論。因此你會發現它們整體呈現上升趨勢。

Yeah, that's a good thing. I think the more the more people are starting to appreciate embedded FPGA technology and not just tire kicking to experiment with it. I think a lot of them are coming to appreciate the ROI that it gives them in the sense that if they don't have to go off and re-spin a chip pre-spin a mask as you get into these more aggressive process technologies, that's a real savings from a from an R&D perspective.

是的，這是件好事。我認為越來越多的人開始重視嵌入式 FPGA 技術，而不僅僅是嘗試。我認為許多人都開始意識到它給他們帶來的投資回報，如果在採用這些更先進的工藝技術時他們不必在掩模版之前重新旋轉晶片，那麼從研發的角度來看這確實是節省。

And so if we can attribute some of that savings to the value that we bring, then our prices go up and I say it. So I think there's an appreciation of the value proposition.

因此，如果我們可以將部分節省歸因於我們帶來的價值，那麼我們的價格就會上漲，我會這麼說。所以我認為價值主張得到了認可。

And also naturally, as we get more of these advanced process technologies supported just by that very fact, you're going to see a uplift in our selling prices and the contract value because they're more expensive notes, those projects in general are going to be quite a bit more expensive for the customer to embark on them, something in a laggard technology.

而且自然而然地，隨著我們獲得更多這些先進工藝技術的支持，你會看到我們的銷售價格和合約價值的提升，因為它們更昂貴，這些項目總體上對客戶來說會更加昂貴，這是一種落後的技術。

So does that mean that the process node as a primary determinant of total cost or value of the contract and or just a important factor?

那麼，這是否意味著製程節點是決定總成本或合約價值的主要因素，還是只是一個重要因素？

It's a marker for it, but it's not the only thing I mean how much logic they need, how much customization goes into the core that they're wanting from us, the workflows they're trying to run. All of those are factors that go into how we price the IP. We have to have a starting price book, of course, for things just as a reference, but everything from there because remember, our value proposition with this trial is that we're agile. We can adapt the core to meet the needs of the customer to the workload it's going to run.

它是一個標記，但不是唯一的意思，他們需要多少邏輯，他們希望我們從他們那裡得到多少客製化的核心，以及他們試圖運行的工作流程。所有這些都是影響我們為 IP 定價的因素。當然，我們必須有一本起始價格手冊，僅供參考，但一切都從那裡開始，因為請記住，我們這次試驗的價值主張是我們很敏捷。我們可以調整核心來滿足客戶對運行工作負載的需求。

So really it's not a one size fits all even within a process node. And because of that, it impacts the work that impacts the value and therefore the price. And we're big believers in value-based pricing. So no two customers have the same price, but it all comes down to the value of the work together.

因此，即使在同一個製程節點內，也不存在萬能的解決方案。正因為如此，它會影響工作，進而影響價值和價格。我們堅信基於價值的定價。因此，沒有兩個客戶會擁有相同的價格，一切都取決於共同工作的價值。

Okay. Let's hear maybe a couple of more questions. I'll jump out of line here on one of your comments, Brian, you alluded to and storefront and royalty revenues. I don't think you're referring to or having us expect to see any notable revenues from either those opportunities this year. So if you could clarify that and then how do we think about as we get into '25, how could those be contributory in any way? And I guess since you quantified and talked about the potential impact of storefront revenue specifically, could that be a big contributor in calendar '25?

好的。讓我們再聽幾個問題。布萊恩，在這裡我要對你的一條評論說三道四，你提到了店面和特許權使用費收入。我認為您提到的或我們期望的並不是今年從這兩個機會中獲得任何可觀的收入。因此，如果您可以澄清這一點，那麼我們如何看待進入 25 年後，這些將如何發揮作用？我想，既然您量化並具體討論了店面收入的潛在影響，那麼這會成為 25 年曆的一個重要貢獻者嗎？

I don't know that storefront will be a big contributor. I think it will be a contributor. But let's just step back and say, why do we even talk about storefront to begin with? So it is when we started as a company, we started as a fabulous FPGA company and all we did was sell devices. So we have all the infrastructure that you would expect the device company to have.

我不知道店面是否會成為一大貢獻者。我認為它將是一個貢獻者。但讓我們退一步來說，我們為什麼一開始要討論店面呢？所以，當我們成立公司的時候，我們是一家優秀的 FPGA 公司，我們所做的就是銷售設備。因此，我們擁有您所期望的設備公司所擁有的所有基礎設施。

We have operations team, supply chain relationships, everything anybody that's been to our office has seen that. As we brought the IP business model out, we were able to leverage that infrastructure that we've already invested in because some companies they like the notion of IP.

我們有營運團隊、供應鏈關係，任何到過我們辦公室的人都看到了這一切。當我們推出 IP 商業模式時，我們能夠利用我們已經投資的基礎設施，因為有些公司喜歡 IP 的概念。

They like the idea of doing their own device, but maybe they need more than that, especially as FPGA becomes a greater percentage of the total content for their chip. And sometimes they, I think, prefer to just let an FPGA company do that for them. And so that's where we're getting nice synergy by having both of these business models and it is truly a differentiator compared to just an IP company or just an FPGA company.

他們喜歡自己製作設備的想法，但也許他們需要的不止這些，尤其是當 FPGA 在其晶片總內容中所佔的比例越來越大時。我認為，有時他們更願意讓 FPGA 公司為他們做這些事。所以，透過這兩種商業模式，我們獲得了良好的協同效應，與單純的 IP 公司或 FPGA 公司相比，這確實是一個差異化因素。

So the work that we're doing within that storefront area, I would say largely is like that upfront IP work. We talked about that customer, that type of customer that we've been doing work on even in 2023. Eventually, those things are going to go to production and when they go to production and we can do the device revenues. And I think like I started answering your question, it will start in 2025 to some extent.

因此，我想說，我們在店面區域內所做的工作基本上就像是前期的 IP 工作。我們討論了那個客戶，那個類型的客戶，即使在 2023 年我們也一直在為此努力。最終，這些東西將投入生產，當它們投入生產時，我們可以獲得設備收入。我想就像我開始回答你的問題一樣，它將在某種程度上從 2025 年開始。

But as far as a becoming a meaningful percent, I think we're modeling beyond 2025 for that. And that's okay. If you think like fast forward a couple of more years than the end of this government contract is there. And then devices are starting to be available to be designed into real systems. That's when I think we should all expect sort of the step function increase to take place from the storefront revenue really kicking it.

但就達到有意義的百分比而言，我認為我們正在為 2025 年以後的目標進行建模。沒關係。如果你想，再快轉幾年，這份政府合約就到期了。然後設備開始可以被設計到實際系統中。那時，我想我們都應該期待店面營收真正實現階梯式成長。

Because storefront revenue is going to far exceed any IP license or royalty that we would we would see for these types of designs, right?

因為店面收入將遠遠超過我們所能看到的此類設計的任何知識產權許可或版稅，對嗎？

Okay, fair enough. I'll ask one more question and jump on the line here. So obviously, we've hit profitability. We're going to have nice growth here with So with seemingly better, better profitability, at least the gross profit contribution. How do we think about your investments in OpEx here as we go throughout the year, are you going to keep it relatively flat or kind of opening up some job openings in any way or how do we think about this both kind of qualitative resource quantitative.

好吧，夠公平。我將再問一個問題，然後就在這裡排隊。顯然，我們已經實現了盈利。我們將在這裡實現良好的成長，因此，獲利能力似乎會更好，至少毛利貢獻會更好。我們如何看待您在全年營運支出方面的投資，您是否會保持相對平穩，還是會以某種方式開放一些職缺，或者我們如何看待這兩種定性和定量資源。

Although as to the quantitative, and then I'll give some Elias comments on that.

但至於定量，我會對此給出一些 Elias 的評論。

Yes. So I think we're going to be like around $3.5 million. So that's definitely an increase for about, few hundred thousand dollars Richard a quarter, I think mainly because we have we do have positions open. We've been very vocal about it would everyone. If you go to our careers website, you'll see the open. We have a lot of engineering positions open.

是的。所以我認為我們的預算將會是 350 萬美元左右。所以這肯定是一個每季度約幾十萬美元的增長，理查德，我認為主要是因為我們確實有空缺職位。我們一直對此事直言不諱，希望所有人都能如此。如果您訪問我們的職業網站，您會看到空缺。我們有很多工程職缺。

We have just hired a sales person in the US that was very necessary. So where applicable, we are going to hire and basically spend the money to invest in the business. But that's really very small change compared to what we are expecting growth.

我們剛剛在美國僱用了一位非常必要的銷售人員。因此，在適用的情況下，我們將招募員工並基本上花錢投資於業務。但與我們預期的成長相比，這確實是非常小的變化。

Right. So the qualitative comments on top of that, so I was actually on a panel at a chip with Summit a couple of weeks ago in Santa Clara Convention Center. And the whole topic of that was around innovation and entrepreneurship in Chiplets primarily, but it extends to semiconductors.

正確的。因此，最重要的是定性評論，幾週前我實際上在聖克拉拉會議中心參加了 Summit 晶片的一個小組討論。整個主題主要圍繞著 Chiplet 中的創新和創業，但它延伸到了半導體。

And so one of the topics of discussion was how do we run our companies in. My answer to that was we run this company like a publicly-traded startup? What does that mean? It means obviously, we have to be mindful of all the financial metrics and targets that a public company has to do internally. We run it like a start-up where we have people were in multiple hessess. We are really focused on customer and growth in revenue and doing it in a prudent, financially responsible way in life, make sure that we do that.

因此討論的主題之一就是我們如何經營我們的公司。我的回答是，我們應該像經營上市公司一樣來經營這家公司嗎？這意味著什麼？這顯然意味著，我們必須留意上市公司內部必須完成的所有財務指標和目標。我們像經營一家新創公司一樣經營它，我們的員工處於多重困境。我們真正關注的是客戶和收入成長，並以審慎、財務負責的方式做到這一點，確保我們做到這一點。

So that $3.5 million increase from this coming this past year is really about looking at those opportunities that we do on a regular basis. And these rifle-shot hires that increase the capacity in our engineering team to execute on those revenue opportunities and so that's why the growth in the headcount is primarily sales, which is top of funnel.

因此，去年增加的 350 萬美元實際上是為了尋找我們定期抓住的那些機會。這些快速招募提高了我們工程團隊執行這些收入機會的能力，這就是為什麼員工人數的成長主要是銷售，這是漏斗的頂部。

We clearly had sort of tapped out the capacity of our current sales team and we want to add more because we saw so much of this opportunity, especially in the US, it warranted, having another person handling some of that. And then on the engineering side, the strategy is wonderful because it's automated.

顯然，我們現有銷售團隊的能力已經達到了極限，我們希望增加更多的人員，因為我們看到了很多這樣的機會，特別是在美國，有必要讓另一個人來處理其中的一些問題。從工程方面來看，這個策略非常棒，因為它是自動化的。

But at the end of the day, you still need engineering people to provide the intellect and putting these things a different process nodes and making those customizations that I mentioned earlier, that drive value for customers. And so more opportunities coming in, we have to add more engineers and we love doing that because that A means there's demand A.

但最終，你仍然需要工程人員提供智慧，將這些東西放到不同的工藝節點上，進行我之前提到的定制，從而為客戶創造價值。隨著機會的增多，我們必須增加更多的工程師，我們很樂意這樣做，因為這意味著有需求。

And B I think we have a model, a scalable model in place where we can add those and we can still remain profitable as they do it. So profitable growth and customer diversification is really key for us this year and that will come from these hires, right, driving more top-line opportunities and executing on those revenue contracts. So yes, you will see increase. I think most of the increase that I talked about is probably an account, and I think that's for a very, very good reason.

而且 B 我認為我們有一個模型，一個可擴展的模型，我們可以添加這些內容，而且我們仍然可以保持獲利。因此，獲利成長和客戶多樣化對於我們今年來說至關重要，而這將透過這些招募來實現，從而帶來更多的營收機會並執行這些收入合約。是的，你會看到成長。我認為我談到的大部分成長可能是一個帳戶，我認為這是有非常非常好的理由的。

Okay. I appreciate the answer guys. As always, I'll jump in line. Thanks.

好的。我很感謝大家的回答。和往常一樣，我會排隊。謝謝。

Thanks, Richard.

謝謝，理查。

(Operator Instructions) There are no further questions at this time. I'd like to call pass the call back to Brian Faith for closing remarks.

（操作員指示）現在沒有其他問題。我想將電話轉回給 Brian Faith 來做結束語。

I'd like to as always thank everybody for joining the call today, and I look forward to seeing you at either a tradeshow or an investor conference or at our next earnings call, which will be approximately three months from now. Have a great day. Thank you.

像往常一樣，我要感謝大家今天的電話會議，並期待在貿易展覽會、投資者會議或下次財報電話會議上見到你們，大約從現在起三個月後。祝你有美好的一天。謝謝。

This concludes today's conference. You may now disconnect your lines. Enjoy the rest of your day.

今天的會議到此結束。現在您可以斷開線路了。祝你剩餘的時光愉快。