Quicklogic Corp (QUIK) 2024 Q1 法說會逐字稿

Ladies and gentlemen, good afternoon. At this time, I would like to welcome everyone to QuickLogic Corporation's first-quarter fiscal 2024 earnings results conference call. As a reminder, today's call is being recorded for replay purposes through May 20, 2024.

女士們、先生們，午安。此時此刻，我歡迎大家參加 QuickLogic 公司 2024 財年第一季財報電話會議。謹此提醒，我們將對今天的通話進行錄音，以便在 2024 年 5 月 20 日之前重播。

I would now like to turn the conference over to Ms. Alison Ziegler of Darrow Associates. Ms Ziegler, please go ahead.

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. 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.

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。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；有關 QuickLogic 未來性能設計活動及其將新設計機會轉化為生產出貨量的能力的聲明。

Timing and market acceptance of its customer's products; schedule changes and production start dates that could impact the timing of shipments; 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.

客戶產品的時機與市場接受度；可能影響出貨時間的時間表變更和生產開始日期；公司未來的評鑑體系；擴大我們生態系統合作夥伴的數量；收入、毛利率、營運費用、獲利能力和現金的預期業績和財務預期。

Actual events, 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.

實際事件、結果或趨勢可能與今天討論的存在重大差異。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 不承擔更新截至任何新資訊或未來事件各自日期的任何前瞻性陳述或資訊的義務。

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. We have 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 its disclosure obligations under Regulation FD.

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。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 法規規定的揭露義務。

A copy of the prepared remarks made on today's call will be posted on QuickLogic's IR page shortly after the conclusion of today's earnings call. I would now like to turn the call over to Brian. Go ahead, Brian.

在今天的財報電話會議結束後不久，將在 QuickLogic 的 IR 頁面上發布今天電話會議上準備好的發言稿。我現在想把電話轉給布萊恩。繼續吧，布萊恩。

Thank you, Alison, and good afternoon, everyone, and thank you all for joining our first-quarter 2024 conference call. Q1 revenue increased more than 45% year-over-year. This growth was driven by a nearly 60% increase in new product revenue, which was mostly from eFPGA IP contracts. With continued strong bookings, our record $179 million funnel and some very significant eFPGA contract proposals pending, we remain confident that we'll deliver greater than 30% year-over-year revenue growth in 2024.

謝謝艾莉森，大家下午好，謝謝大家參加我們 2024 年第一季的電話會議。第一季營收年增超過45%。這一成長是由新產品收入成長近 60% 推動的，其中大部分來自 eFPGA IP 合約。憑藉持續強勁的預訂量、創紀錄的 1.79 億美元管道以及一些懸而未決的非常重要的 eFPGA 合約提案，我們仍然有信心在 2024 年實現超過 30% 的同比收入增長。

Let's take a few minutes now to update the status for some of our major contracts and accomplishments. First, our Strategic Radiation Hardened FPGA government contract that has a total potential of $72 million. Last August, we announced the second tranche, which added Honeywell Aerospace as a foundry partner and increase the funding rate from Tranche 1 levels to bring the Honeywell base development up to speed quickly.

現在讓我們花幾分鐘時間更新一些主要合約和成就的狀態。首先，我們的戰略抗輻射 FPGA 政府合約總價值達 7,200 萬美元。去年八月，我們宣布了第二期，增加了霍尼韋爾航空航太公司作為代工合作夥伴，並提高了第一期的融資利率，以加快霍尼韋爾基地的開發速度。

Tranche two also funded our continued activity with SkyWater technologies. We are anticipating Tranche 3 will be awarded later in Q2, and as we stated in our last conference call, we are modeling, the funding rate for Tranche 3 will likely decrease from Tranche 2 and be more similar to Tranche 1.

第二期也資助我們繼續進行 SkyWater 技術活動。我們預計第3 階段將在第二季稍後授予，正如我們在上次電話會議中所說，我們正在建模，第3 階段的融資利率可能會比第2 階段下降，並且與第1 階段更加相似。

Due to this and this strategic shift in how we are now dividing revenue between engineering services and IP license, while we are projecting Q2 revenue will be up significantly year over year, we are currently forecasting a sequential decrease from Q1. We believe Q2 will mark the low point for the year.

由於這一點以及我們現在在工程服務和 IP 授權之間劃分收入的方式的策略轉變，雖然我們預計第二季的收入將同比大幅增長，但我們目前預計將比第一季連續下降。我們認為第二季將是今年的低點。

Since it is important, I'll take a moment to review how the change in revenue split impacts when we recognized IP contract revenue on our income statement. At the start of the year, we shifted the majority of the IP contract dollar values from engineering services, which are recognized over the course of the contract to IP license, which is recognized at the completion of our deliverables.

由於這很重要，因此我將花點時間回顧一下當我們在損益表中確認知識產權合約收入時，收入分配的變化會產生怎樣的影響。今年年初，我們將大部分 IP 合約美元價值從工程服務（在合約過程中確認）轉移到了 IP 許可（在交付成果完成時確認）。

This suggest better aligns revenue with our deliverables and improves our ability to effectively negotiate and win future contracts. While this change will push quite a bit of revenue recognition into the second half of 2024. It has absolutely no impact on our cash flow. We continue to believe we will be cash-flow positive and solidly profitable for full-year 2024.

這表明可以更好地將收入與我們的可交付成果結合起來，並提高我們有效談判和贏得未來合約的能力。雖然這項變化將把相當多的收入確認推到2024年下半年。這對我們的現金流完全沒有影響。我們仍然相信 2024 年全年我們將實現正現金流並實現穩健盈利。

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 the number of fabrication nodes supported by our IP in 2024.

除了在我們大型政府合約的成功基礎上，我們還處於有利地位，可以在許多新客戶和市場領域顯著擴展我們的 IP 業務，以及到 2024 年我們的 IP 支援的製造節點數量。

During our last conference call, I announced that we booked the first of two IP contracts that will be fabricated using the 12 nanometer processes and that the second contract was pending. We announced finalizing the second contract in a March press release. Both of these contracts will contribute to cash flow during the first half of 2024, but revenue will not be recognized on our income statements until completion of our deliverables in the second half of this year.

在我們上次電話會議期間，我宣布我們預訂了將使用 12 奈米製程製造的兩個 IP 合約中的第一個合同，而第二個合約正在等待中。我們在三月的新聞稿中宣布敲定第二份合約。這兩份合約都將在 2024 年上半年貢獻現金流，但在今年下半年交付成果完成之前，收入不會在我們的損益表中確認。

The first contract is with a defense industrial base customer and will be fabricated on GlobalFoundries 12 nanometer process known as 12LP. I cannot go into any details beyond the fact this contract is not related to the large ongoing Radiation Hardened FPGA contract I just discussed. Second contract is with a large international company that I'm sure you would recognize.

第一份合約是與國防工業基地客戶簽訂的，將採用 GlobalFoundries 12 奈米製程（稱為 12LP）製造。除了該合約與我剛才討論的正在進行的大型抗輻射 FPGA 合約無關之外，我無法透露任何細節。第二份合約是與一家大型國際公司簽訂的，我相信您會認識這家公司。

This design is for a new ultra-low power SoC that is targeting a variety of commercial and industrial IoT applications. This design 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 in most AI applications. We believe this will prove to be a rapidly growing application that is often better served by eFPGA technology than a processor running the acceleration algorithms and software.

此設計適用於新型超低功耗 SoC，面向各種商業和工業物聯網應用。該設計將由台積電採用 12 奈米製程製造。在 SoC 中，我們的 eFPGA 技術用於 AI 加速，這是大多數 AI 應用中的必備功能。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，eFPGA 技術通常可以更好地為該應用程式提供服務。

In short, an eFPGA IP can be reprogrammed to adapt to changes and acceleration algorithms and perform acceleration more quickly and using much less power than a processor based solution. In November 2022, I share that we 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 specific design win beyond a brief update.

簡而言之，eFPGA IP 可以重新編程以適應變化和加速演算法，並且比基於處理器的解決方案更快地執行加速，並且使用更少的功耗。2022 年 11 月，我分享了我們為客戶流片一款整合了我們的 eFPGA IP 的新設備的消息。由於嚴格的保密要求，除了簡短的更新之外，我無法分享更多關於具體設計勝利的細節。

In line with what I covered during our last conference call, the customers continuing to work through certain aspects of the design. This work is progressing, and we anticipate resuming our efforts 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.

根據我在上次電話會議中介紹的內容，客戶繼續完成設計的某些方面。這項工作正在取得進展，我們預計在 2024 年下半年恢復工作。該客戶可能會在幾年內帶來數千萬美元的潛在設備收入。

Last September, we announced a leading technology company, chose our eFPGA IP for a design that will be fabricated using GlobalFoundries, 22FDX platform. Again, due to strict confidentiality requirements that cannot go into more detail on the design, but I can share that we have delivered our IP to the customer and expect tape-out to initiate this quarter.

去年 9 月，我們宣布一家領先的科技公司選擇我們的 eFPGA IP 進行設計，該設計將使用 GlobalFoundries 22FDX 平台進行製造。同樣，由於嚴格的保密要求，無法詳細介紹設計，但我可以分享的是，我們已將 IP 交付給客戶，並預計在本季度開始串流影片。

Last November, we announced the global semiconductor leader, chose our eFPGA IP for a design that will be fabricated on UMC's 22 nanometer platform. We have completed the delivery of our IP and expect tape-out to initiate this quarter. In total, we are on contract to deliver our IP on six different foundry process technology combinations, including two that will be fabricated using 12 nanometer technology.

去年 11 月，我們宣布全球半導體領導者選擇我們的 eFPGA IP 進行設計，該設計將在 UMC 的 22 奈米平台上製造。我們已經完成了 IP 的交付，預計將於本季開始串流影片。總的來說，我們簽訂了合同，在六種不同的鑄造工藝技術組合上提供我們的 IP，其中兩種將使用 12 奈米技術製造。

This is up 3x from a year ago with minimal growth in the associated R&D costs. This demonstrates the market demand for eFPGA IP is accelerating and that the automation from our proprietary Australis IP Generator enables us to address this demand in a scalable way. We have several chiplet opportunities in our funnel, including deals with our partner, YorChip.

這一數字比一年前成長了 3 倍，而相關研發成本的成長卻微乎其微。這表明市場對 eFPGA IP 的需求正在加速成長，而我們專有的 Australis IP Generator 的自動化使我們能夠以可擴展的方式滿足這一需求。我們的通路中有多個小晶片機會，包括與我們的合作夥伴 YorChip 的交易。

As a matter of fact, we recently submitted two substantial proposals this year with a combined value of over $40 million, one in conjunction with YorChip. As I mentioned in our last conference call, our lead smartphone customer worked through its excess inventory of EOS S3 that limited our shipments during 2023, and we have resumed shipping to support production. We hosted a meeting with this customer at our San Jose headquarters earlier in Q2.

事實上，我們今年最近提交了兩項實質提案，總價值超過 4,000 萬美元，其中一項是與 YorChip 共同提交的。正如我在上次電話會議中提到的，我們的主要智慧型手機客戶解決了 EOS S3 的過剩庫存問題，這限制了我們在 2023 年的出貨量，我們已經恢復發貨以支援生產。第二季早些時候，我們在聖荷西總部與該客戶舉行了一次會議。

Based on the customer's outlook, we expect volume will increase in 2024 as our EOS S3 solution was selected for new designs that will ship well into 2025. Consistent with the outlook we shared last quarter, we are forecasting a modest increase in display bridge shipments this year and expect mature product revenue will be similar to what it was in 2023. A couple of weeks ago, we announced the release of Aurora 2.6 our comprehensive eFPGA development tool suite.

根據客戶的前景，我們預計 2024 年銷售量將會增加，因為我們的 EOS S3 解決方案被選用於新設計，並將在 2025 年出貨。與我們上季度分享的前景一致，我們預計今年顯示橋出貨量將小幅增長，並預計成熟產品收入將與 2023 年相似。幾週前，我們宣布發布綜合 eFPGA 開發工具套件 Aurora 2.6。

This release of Aurora includes a number of significant improvements that will expand our market opportunities and help us win new designs. In Aurora 2.6, we expanded operating system support to include multiple versions of Linux, including Centos, RedHat, and Ubuntu and included support for Windows 10 and 11.

此版本的 Aurora 包括許多重大改進，這些改進將擴大我們的市場機會並幫助我們贏得新設計。在 Aurora 2.6 中，我們擴展了作業系統支援以包含多個版本的 Linux，包括 Centos、RedHat 和 Ubuntu，並包含對 Windows 10 和 11 的支援。

Furthermore, through the incorporation of new architectural improvements, Aurora 2.6 can also deliver up to a 15% improvement in speed. In some eFPGA designs, critical path timing can be even more important than raw speed. To address this need, Aurora 2.6 incorporates interactive path analysis and a new graphical user interface.

此外，透過融入新的架構改進，Aurora 2.6 還可以將速度提高高達 15%。在某些 eFPGA 設計中，關鍵路徑時序甚至比原始速度更重要。為了滿足這項需求，Aurora 2.6 結合了互動式路徑分析和新的圖形使用者介面。

For our customers, this means easier to use better performance, shorter development cycles and lower development costs. With our planned investments in R&D, we have a cadence of Australis and Aurora releases scheduled throughout this year. It will provide further improvements to flow automation, increased IP core speed by up to 50% and reduced die size for our eFPGA hard IP implementations.

對我們的客戶來說，這意味著更容易使用、更好的效能、更短的開發週期和更低的開發成本。根據我們計劃的研發投資，我們計劃在今年全年發布 Australis 和 Aurora 版本。它將進一步改善流程自動化，將 IP 核心速度提高高達 50%，並減少 eFPGA 硬 IP 實現的晶片尺寸。

Turning to SensiML, I'm very excited about the progress made during the last three months. In short, there has been a notable shift in strategy that has accelerated near-term revenue and we believe will substantially accelerate end user adoption. The first step was to sign a six figure contract with a major MCU company, which put SensiML on track to deliver the material 2024 revenue growth I forecasted last quarter.

談到 SensiML，我對過去三個月的進展感到非常興奮。簡而言之，策略發生了顯著轉變，加速了近期收入的成長，我們相信這將大大加速最終用戶的採用。第一步是與一家大型 MCU 公司簽署一份六位數的合同，這使得 SensiML 有望實現我上季度預測的 2024 年收入實質增長。

SensiML is discussing a similar agreement with other MCU companies. The second step will be revealed in more detail tomorrow morning. Leveraging the four years of experience and success monetizing an Open-Source business model at QuickLogic, SensiML announced its own Open Source strategy in a press release issued before the market opens.

SensiML 正在與其他 MCU 公司討論類似的協議。第二步將於明天早上詳細公佈。憑藉 QuickLogic 四年的開源業務模式貨幣化經驗和成功經驗，SensiML 在開市前發布的新聞稿中宣布了自己的開源策略。

The short story here is Open Source provides customers the transparency and security they need to incorporate high value IP in their designs and in many cases, also adopt proprietary processes and professional services. You have seen how this strategy has enabled QuickLogic to more fully leverage and monetize its proprietary IP and expand its reach into a variety of end markets.

簡而言之，開源為客戶提供了將高價值 IP 融入其設計所需的透明度和安全性，並且在許多情況下，還採用專有流程和專業服務。您已經了解了這項策略如何使 QuickLogic 能夠更充分地利用其專有 IP 並從中獲利，並將其影響力擴展到各種終端市場。

I believe we will see the same from SensiML and with the market's ravenous appetite to adopt AI and ML, we anticipate a much faster ramp and a much broader market reach for SensiML. With that, let me now turn the call over to Elias, for a review the financial results, and I will rejoin for our closing remarks. Elias, please go ahead.

我相信我們也會從 SensiML 看到同樣的情況，隨著市場對採用人工智慧和機器學習的強烈需求，我們預期 SensiML 的成長速度會更快，市場覆蓋率也會更廣泛。現在，讓我將電話轉給埃利亞斯，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. I am happy to report that our first quarter revenue aligned with our forecast and drove our third consecutive quarter of profitability on a non-GAAP basis. Revenue for the first quarter was $6 million, a solid 45% increase from the first-quarter of 2023. Compared to the fourth quarter of 2023, Q1 revenue was off approximately 20%, reflecting the previously communicated strategic shift in the script of FPGA IP contracts, revenue between professional services and IP license that will push most of the revenue recognitions in the second half of the year.

謝謝你，布萊恩，大家下午好。我很高興地向大家報告，我們第一季的收入與我們的預測一致，並推動了我們連續第三個季度在非公認會計準則基礎上實現盈利。第一季營收為 600 萬美元，較 2023 年第一季成長 45%。與2023 年第四季相比，第一季收入下降了約20%，反映出先前溝通的FPGA IP 合約腳本、專業服務和IP 授權之間收入的策略轉變，這將推動大部分收入確認在下半年實現。

Please note the shift does not affect cash flow. Within our Q1 revenue sales of new products and approximately $4.9 million. This compares to $3.1 million in the first quarter last year of nearly 60% and $6.6 million in the fourth quarter of 2023, down 29%.

請注意，這種轉變不會影響現金流。我們第一季新產品的銷售收入約為 490 萬美元。相比之下，去年第一季的 310 萬美元下降了近 60%，2023 年第四季為 660 萬美元，下降了 29%。

Mature product revenue was approximately $1.1 million. This compares to $1.1 million in the first quarter of last year and $0.7 million in the fourth quarter. Our results continue to reflect higher eFPGA IP license and professional services revenue.

成熟產品收入約110萬美元。相比之下，去年第一季為 110 萬美元，第四季為 70 萬美元。我們的業績繼續反映出更高的 eFPGA IP 授權和專業服務收入。

Non-GAAP gross margin in Q1 was 70.3% compared with 59.7% in the first-quarter of 2023 and 78.3% in the fourth quarter. The strong gross margins in the last few quarters resulted from the higher revenue level and a higher concentration of revenue related to IP contracts.

第一季非 GAAP 毛利率為 70.3%，而 2023 年第一季為 59.7%，第四季為 78.3%。過去幾季的強勁毛利率源於較高的收入水平以及與知識產權合約相關的收入的高度集中。

Our non-GAAP operating expenses in Q1 '24 were approximately $2.5 million. This compares with non-GAAP operating expenses of $2.9 million in the first quarter last year at $3.1 million in the fourth quarter. Reduced non-GAAP operating expenses in Q1 '24, while below our outlook, primarily due to allocation from R&D to COGS due to the professional services contracts and reductions in outside services and SG&A.

我們 24 年第一季的非 GAAP 營運費用約為 250 萬美元。相比之下，去年第一季非 GAAP 營運費用為 290 萬美元，第四季為 310 萬美元。24 年第 1 季的非 GAAP 營運費用有所減少，但低於我們的預期，這主要是由於專業服務合約以及外部服務和 SG&A 的減少而將研發分配給銷貨成本。

Please note the larger difference between GAAP and non-GAAP operating expenses is attributable to the timing of stock-based compensation for deferred incentives for executives and managers from prior years. This deferred incentive compensation accounted for approximately half of the stock-based compensation we called it for Q1.

請注意，公認會計原則和非公認會計原則營運費用之間的較大差異是由於前幾年對高階主管和經理人的遞延激勵的股票薪資的時間安排造成的。這種遞延激勵薪酬約佔第一季股票薪酬的一半。

Non-GAAP net income was $1.7 million, or $0.11 per diluted share. This compares to a non-GAAP net loss of $0.5 million or $0.04 per share in last year's first quarter and non-GAAP net income of $2.6 million or $0.18 per diluted share in the fourth-quarter of fiscal 2023. For the first quarter, one customer accounted for 10% or more of our revenue.

非 GAAP 淨利潤為 170 萬美元，或攤薄後每股收益 0.11 美元。相比之下，去年第一季的非 GAAP 淨虧損為 50 萬美元，即每股 0.04 美元，2023 財年第四季的非 GAAP 淨利潤為 260 萬美元，即每股攤薄收益 0.18 美元。第一季度，一個客戶占我們收入的 10% 或更多。

At the close of Q1, total cash was $27.4 million compared to $24.6 million at the year-end 2023. This is inclusive of $3.5 million of net proceeds raised that a registered direct offering with certain institutional investors in March of this year. It is also inclusive of our $20 million credit facility.

截至第一季末，現金總額為 2,740 萬美元，而 2023 年年底為 2,460 萬美元。其中包括今年 3 月透過註冊直接發行向某些機構投資者籌集的 350 萬美元淨收益。它還包括我們 2000 萬美元的信貸額度。

Now moving to our guidance for the second quarter of fiscal 2024, which will end on June 30, 2024. Revenue guidance for Q2 2024 is approximately $4.5 million, plus or minus 10%, which represents an increase of 55% over Q2 2023. Second quarter revenues expected to be comprised of approximately $3.6 million of new products, which is a year-over-year increase of 64% and $0.9 million of mature products, which is a year-over-year increase of 29%.

現在轉向我們對 2024 財年第二季的指導，該季度將於 2024 年 6 月 30 日結束。2024 年第二季的營收指引約為 450 萬美元，上下浮動 10%，比 2023 年第二季成長 55%。第二季營收預計包括約 360 萬美元的新產品收入，年增 64% 和 90 萬美元的成熟產品收入，年增 29%。

The projected total revenue decline from Q1 2024 is primarily due to the timing and cadence of large IP contracts and the strategic shift that splits a higher percentage of contract revenue to IP versus engineering services to better align with our deliverables. This will continue to result in shifting certain revenue recognition to the second half of the year, but it is not expected to impact the timing of cash flow from these contracts.

預計總收入較2024 年第一季下降主要是由於大型IP 合約的時間安排和節奏，以及將更高比例的合約收入分配給IP 而非工程服務的策略轉變，以更好地與我們的可交付成果保持一致。這將繼續導致某些收入確認轉移到今年下半年，但預計不會影響這些合約的現金流的時間。

For the full year 2024, we are still anticipating more than 30% growth in revenue and a positive cash flow generation. Based on the anticipated Q2 revenue mix, non-GAAP gross margin for the quarter is expected to be approximately 70% plus or minus 5-percentage-points. Our non-GAAP operating expenses will be approximately $3.2 million plus or minus 10%. We believe quarterly non-GAAP OpEx will remain in the $3.2 million range for the balance of 2024 with occasional increases to support new programs.

對於 2024 年全年，我們仍預期營收成長超過 30%，並產生正現金流。根據預期的第二季收入組合，該季度的非 GAAP 毛利率預計約為 70%，上下浮動 5 個百分點。我們的非 GAAP 營運費用約為 320 萬美元正負 10%。我們認為，到 2024 年剩餘時間，季度非 GAAP 營運支出將保持在 320 萬美元的範圍內，並偶爾增加以支持新項目。

Please note that given the nature of the industry, we may occasionally need to reclassify certain expenses to COGS or capitalize certain costs. The reclassifications are primarily related to labor and tooling for our revenue contracts with customers. Such capitalization, reduce OpEx and alter the timing for recognizing the corresponding expenses in COGS. This may cause variability in our gross margins and operating results.

請注意，鑑於行業的性質，我們有時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。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有關。這種資本化可以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。

Bearing these factors in mind, we believe our full year 2024 non-GAAP gross profit margin will be in the upper 60% range. We believe we are well positioned to deliver robust profitability for the full year 2024. After interest, other income and taxes, we currently forecast that our Q2 non-GAAP net income will be approximately $0 to $0.4 million or $0 to $0.03 per share based on roughly 14.7 million fully diluted shares.

考慮到這些因素，我們相信 2024 年全年非 GAAP 毛利率將在 60% 以上。我們相信，我們有能力在 2024 年全年實現強勁的獲利能力。在扣除利息、其他收入和稅費後，我們目前預測第二季非 GAAP 淨利潤約為 0 至 40 萬美元，或每股 0 至 0.03 美元（基於約 1,470 萬股完全稀釋股票）。

The difference between our GAAP and non-GAAP results is related to non-cash stock-based compensation expenses. In Q2, we expect this compensation will be approximately $0.8 million. As a reminder, though, the movements in our stock-based compensation during the year and it 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股票補償費用有關。在第二季度，我們預計補償金額約為 80 萬美元。不過，需要提醒的是，我們的股票薪酬在這一年中的變動可能會根據向員工發放獎金的時間而有所不同，並且每個季度可能會有所不同。

With investments this quarter to support the new design wins that we have discussed including hiring critical engineering and sales roles on the timing of certain payments. At this point, we expect cash receipts to be less than $1 million, again in Q2.

透過本季的投資來支持我們討論過的新設計勝利，包括在某些付款時間上僱用關鍵的工程和銷售角色。目前，我們預計第二季的現金收入將再次低於 100 萬美元。

These investments are in anticipation of continued strong growth in 2024 and timed the signing of new contracts on design wins. As previously mentioned, we are on track to achieve cash flow positivity in the third quarter and for the full year 2024.

這些投資預計將在 2024 年持續強勁成長，並在設計獲勝時簽署新合約。如前所述，我們預計在第三季和 2024 年全年實現正現金流。

Thank you for your time. With that, let me now turn the call back over to Brian for his closing remarks.

感謝您抽出時間。現在，讓我將電話轉回給布萊恩，讓他發表結束語。

Thank you, Elias. It is becoming increasingly evident that our unique position and more than three decades of experience as a manufacturer of FPGA centric devices sets us apart from other eFPGA IP companies. With this, we have the experience, operational structure, and established relationships that are required to manage final design, device fabrication, package, test and finished device delivery for the many customers that don't have these resources in-house.

謝謝你，埃利亞斯。越來越明顯的是，我們作為以 FPGA 為中心的設備製造商的獨特地位和三十多年的經驗使我們有別於其他 eFPGA IP 公司。憑藉這一點，我們擁有為許多內部沒有這些資源的客戶管理最終設計、裝置製造、封裝、測試和成品裝置交付所需的經驗、營運結構和已建立的關係。

These capabilities expand our served available market for IP to include customers that do not have these capabilities in-house and want us to storefront their designs. This opens markets for us that could be orders of magnitude larger than our core IP license business. Some of these opportunities are well defined and near enough that they are included in our rolling two-year funnel, which is currently at the all-time record of $179 million.

這些功能擴大了我們所服務的 IP 可用市場，包括內部不具備這些功能並希望我們在店面展示其設計的客戶。這為我們打開了比我們的核心知識產權授權業務大幾個數量級的市場。其中一些機會定義明確且足夠接近，以至於它們被包含在我們的兩年滾動漏斗中，該漏斗目前創下了 1.79 億美元的歷史記錄。

The experiences we gained through more than 30 years of designing and delivering semiconductor devices is also at the foundation of the proprietary tools we've developed. These tools help our IP customers that prefer to manage the manufacturing flow, shorten design cycles, and lower development costs. This provides them with a much more efficient path to target the foundry and fabrication process of their choosing.

我們在 30 多年的設計和交付半導體裝置中獲得的經驗也是我們開發的專有工具的基礎。這些工具可以幫助我們喜歡管理製造流程、縮短設計週期並降低開發成本的 IP 客戶。這為他們提供了一條更有效的途徑來實現他們選擇的鑄造和製造流程。

As I noted in our last call, I think three years of greater than 30% top-line growth proves our IP business model built upon open source components has traction in the market and with that traction established, we are building momentum. That momentum is supported by the fact we are seeing more opportunities in a wide variety of end markets, including the defense market where some of the most noteworthy prime contractors have recently approached us to discuss strategic partnerships to pursue major contracts.

正如我在上次電話會議中指出的那樣，我認為三年來超過30% 的營收成長證明了我們基於開源元件構建的IP 業務模式在市場上具有吸引力，隨著這種吸引力的建立，我們正在積蓄動力。這一勢頭得到了以下事實的支持：我們在各種終端市場看到了更多的機會，包括國防市場，一些最值得注意的主承包商最近與我們接洽，討論戰略合作夥伴關係，以尋求重大合同。

While 2024 will be another year of building our IP foundation and we believe will drive another year of 30%-plus growth. We also think there is a very good chance that our growth will accelerate in the near future as storefront royalty and other finished device strategies begin to kick in.

2024 年將是我們建立智慧財產權基礎的另一年，我們相信這將推動另一個 30% 以上成長的一年。我們也認為，隨著店面使用費和其他成品設備策略開始生效，我們的成長很有可能在不久的將來加速。

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

至此，我想開始提問。

(Operator Instructions)

（操作員說明）

Richard Shannon, Craig-Hallum.

理查德·香農，克雷格·哈勒姆。

Hi, Brian, Elias. I'd say a couple of questions. I guess I just wanted to make sure I understand the guidance for the quarter and for the year here, you're talking about the specific a large project with RedHat being the third tranche being awarded here. Sometime during the quarter, is the guidance for the second quarter that is there, you including anything from that expectation in there or was it all in the back half of the year?

嗨，布萊恩，埃利亞斯。我想說幾個問題。我想我只是想確保我理解本季度和本年度的指導，您正在談論特定的大型項目，其中 RedHat 是這裡授予的第三部分。在本季度的某個時候，是否有第二季度的指導，您是否包括了該預期中的任何內容，還是全部都在今年下半年？

We are factoring in our estimates for that in Q2 in the guidance that we provided.

我們在提供的指導中考慮了對第二季度的估計。

Okay. That's fair enough. And then did I hear correctly related to the RedHat deal that you're expecting a cadence of revenues and the third tranche closer to the that of the first tranche of it? And if so, can you maybe elaborate on that?

好的。這很公平。然後，我是否正確地聽到了與 RedHat 交易有關的信息，即您預計收入節奏和第三部分更接近第一部分？如果是這樣，您能否詳細說明一下？

Yes. If you remember, the first tranche was awarded in August of 2022, and the total value of that contract was effectively spread across approximately 10 months. And so we're expecting a similar monthly rate for this third tranche. When I say as expected, I should say we're estimating because we're still going through this process with our sponsor. But that's the modeling that we're using as we're providing our Q2 guidance and our full year revenue outlook for 2024.

是的。如果你還記得的話，第一批合約於 2022 年 8 月授予，該合約的總價值實際上分佈在大約 10 個月內。因此，我們預計第三批的月度利率將類似。當我說如預期時，我應該說我們正在估計，因為我們仍在與贊助商一起經歷這個過程。但這就是我們在提供第二季指引和 2024 年全年營收前景時所使用的模型。

Okay. Fair enough That's good to know. Let's see a couple of more questions. Very intriguing here about SensiML. You got a $100,000 plus contract here with a with a major MCU company here maybe if you can, I don't know if you want to front run what we may hear about tomorrow morning or not? But just kind of want to get a sense of what this is all about just a company that has no capability and kind of edge AI kind of a complement to what they already have. Maybe you can kind of characterize what you mean by major?

好的。很公平，很高興知道這一點。讓我們再看幾個問題。SensiML 非常有趣。你在這裡與一家主要的 MCU 公司簽訂了一份價值 10 萬美元以上的合同，也許如果可以的話，我不知道你是否想搶先了解我們明天早上可能會聽到的消息？但我只是想了解這家公司到底是怎麼回事，它沒有能力，而且邊緣人工智慧只是他們已有的能力的補充。也許你可以描述一下你所說的專業是什麼意思？

Yes, I'd say major for us than the microcontroller space would be top 10 microcontroller vendors. We're not going to go into details on the nature of the contract itself from this call. But maybe what I'll do is tease out a little bit more of the detail that's going to go out in the press release tomorrow from SensiML because I think it's related to this.

是的，我想說，對我們來說，除了微控制器領域之外，最重要的是十大微控制器供應商。我們不會在這次電話會議中詳細介紹合約本身的性質。但也許我要做的就是梳理 SensiML 明天將在新聞稿中發布的更多細節，因為我認為這與此相關。

The open sourcing of SensiML, if you think about firstly, what QuickLogic has done. We're leveraging a lot of open source components because you get a lot of sort of industry collaborating and contributing to features and enhancements that smaller companies can't do in time or money by themselves.

SensiML的開源，如果你先想QuickLogic做了什麼。我們正在利用大量開源元件，因為您可以獲得大量行業協作並為功能和增強功能做出貢獻，而小公司無法在時間或金錢上完成這些功能和增強功能。

And so the acceleration and bringing in new capabilities to an already, I would say, very well well-established toolkit, that someone has. And then by virtue of that, you know people that are looking at machine learning, AI, software workflows like some small. I think they can take some confidence in the fact that what they see today, there's probably only a fraction of what the capabilities in the future come.

因此，我想說的是，加速並為某人已經擁有的已經非常完善的工具包引入新功能。憑藉這一點，你知道有人正在研究機器學習、人工智慧、軟體工作流程等小型工作流程。我認為他們可以對這樣一個事實抱有信心：他們今天所看到的可能只是未來能力的一小部分。

And it will be an open source path for some of the core elements of that provided that those companies want to abide by what's called a copyleft open source licensing scheme. And I'm as opposed to the more permissive Apache or MIT open source licenses.

如果這些公司願意遵守所謂的 Copyleft 開源授權計劃，這將成為其中一些核心要素的開源路徑。我反對更寬鬆的 Apache 或 MIT 開源許可證。

So I think the combination of having these options out there for people to license will give them a comfort and expect stability and security and future growth in the features and functions and make it even more interesting for them to actually do further licensing deals with SensiML price in the future, especially when you take that SensiML, having established this for so long and understanding how you manage cloud service components and how you set up the customer derivatives, the private labels, the identification aspects, all the things you would expect from doing business with a national company and software.

因此，我認為為人們提供這些許可選項的組合將使他們感到安慰，並期望穩定性和安全性以及特性和功能的未來增長，並使他們更有趣地以 SensiML 價格實際進行進一步的許可交易未來，尤其是當您使用SensiML 時，已經建立了這麼長時間，並了解如何管理雲端服務組件以及如何設定客戶衍生品、自有標籤、識別方面，以及您期望做的所有事情與一家全國性公司和軟體開展業務。

So I think it's exciting. They're going to have learned a lot from, what QuickLogic has learned in terms of how to how to effectively monetize and leverage and collaborations with the open source community. And I think we'll see that happening or SensiML and of course, will be a lot more details in the press release tomorrow.

所以我認為這很令人興奮。他們將從 QuickLogic 中學到很多東西，包括如何有效地貨幣化、利用以及與開源社群的合作。我認為我們會看到 SensiML 發生這種情況，當然，明天的新聞稿中還會有更多細節。

Okay. Fair enough. Great detail there. I'll probably follow up on that topic. Sounds very interesting. My last question here and I'll jump on the line is, hopefully I caught the right language that you provided here, but you talked about a couple of different contracts in chiplets, so we submitted proposals for over $40 million, one of with your announced partner of YorChip

好的。很公平。那裡有很棒的細節。我可能會跟進這個話題。聽起來很有趣。我的最後一個問題是，希望我能理解您在這裡提供的正確語言，但是您談到了小晶片中的幾個不同合同，因此我們提交了超過 4000 萬美元的提案，其中之一是與您的YorChip宣布合作夥伴

$40 million, it's a pretty sizable free, I'm assuming that these include some elements of storefront in there, but maybe you could kind of give any more clarity on when you expect those to be awarded and maybe on a details you can offer? Thanks.

4000萬美元，這是一個相當大的免費，我假設其中包括店面的一些元素，但也許您可以更清楚地說明您期望何時授予這些元素，也許您可以提供一些細節？謝謝。

Yes, I can elaborate a little bit more on that, Richard. So firstly, remember anything that's outside of roughly two years horizon does not fall into our sales funnel. It's only falls into that funnel in terms of the dollar values like the $179 million that we just talked about today, one sits within approximately two-year horizon. So the chiplets specific ones that we are talking about in the $40 million, do you have the potential to become chiplets and we would like that.

是的，我可以詳細說明一下，理查德。因此，首先，請記住，任何超出大約兩年範圍的內容都不會落入我們的銷售漏斗中。它只是按照美元價值落入該漏斗，例如我們今天剛剛談到的 1.79 億美元，其中一個大約在兩年內。因此，我們正在談論的 4000 萬美元的小晶片特定產品，您是否有潛力成為小晶片，我們希望如此。

But I think two factors to remember here. One is the chiplet revenue is not part of that $40 million and two in each of the revenue that would be part of that would be outside of the sales funnel at this point in time just because of the window, right. But I think that you bring up an interesting question area. And I think part of that relates to, our optimism and confidence in hitting this 30% revenue growth number for 2024 because obviously that would require a fairly significant increase in second half revenue over the first half.

但我認為這裡有兩個因素要記住。一是小晶片收入不屬於這 4000 萬美元的一部分，而每一項收入中的兩部分，由於窗口的原因，此時將處於銷售管道之外，對吧。但我認為你提出了一個有趣的問題領域。我認為部分原因在於我們對 2024 年實現 30% 收入成長數字的樂觀和信心，因為顯然這需要下半年收入比上半年有相當大的成長。

So I'll be as specific as I can without getting into details, bound by NDAs and bound by the specifics of these proposals I'm talking about. But we definitely review the continuation of the strategic RedHat contract, which you've covered already and then some of these other larger contracts, like this $40 million total one, and those can be hitting and contributing to revenue later this year.

因此，我將盡可能具體，而不涉及細節，受保密協議的約束，並受我正在談論的這些提案的具體細節的約束。但我們肯定會審查戰略性RedHat 合同的延續，您已經涵蓋了該合同，然後是其他一些較大的合同，例如總價值4000 萬美元的合同，這些合同可能會在今年晚些時候產生影響並為收入做出貢獻。

And then even another one that I didn't name specifically, but a -ANN-digit proposal that we've been working on since last year, in fact, not part of that $40 million chiplet proposals, a number that I gave earlier, and we recently crossed a pretty important threshold in that whole process from the proposal process with that customer.

還有另一個我沒有具體提及的提案，但我們自去年以來一直在研究的 ANN 數字提案，事實上，這不是我之前給出的 4000 萬美元的 Chiplet 提案的一部分，最近，我們在與該客戶的提案過程中跨越了整個過程中非常重要的門檻。

So when you start to see that things clicking out across multiple segments, multiple approved proposals, and hitting these that would all call important internal milestones. Those are the things that give us the confidence that we are in fact going to recognize enough revenue this year from these contracts within 2024 to achieve greater than 30% revenue growth.

因此，當您開始看到跨多個細分市場、多個批准的提案以及實現這些目標時，所有這些都將成為重要的內部里程碑。這些讓我們有信心，我們今年實際上將在 2024 年從這些合約中確認足夠的收入，以實現超過 30% 的收入成長。

I think more than he directly asked for Richard, but I think it was good timing to have that little color to us.

我認為比他直接要求理查德更多，但我認為現在是為我們提供一點顏色的好時機。

I appreciate all that detail, and thanks for that, Brian. I will jump out of line for now. Thank you.

我很欣賞所有這些細節，謝謝你，布萊恩。我現在會跳出隊列。謝謝。

Rick Neaton, Rivershore Investment Research.

Rick Neaton，Rivershore 投資研究公司。

Thank you. Good afternoon, Brian and Elias. I was interested in some of your comments about SensiML on the six-figure contract mentioned in the press release and you mentioned it again in the prepared remarks, is that with a different MCU companies and the white label agreement that SensiML has right now?

謝謝。下午好，布萊恩和埃利亞斯。我對您在新聞稿中提到的關於SensiML 六位數合約的評論很感興趣，您在準備好的評論中再次提到了這一點，這是與不同的MCU 公司以及SensiML 目前擁有的白標協議有關嗎？

We've not shared that detailed work and -- really due to NDAs, we're not going to be able to directly answer it because I think when we start talking about the number of companies we're targeting anyway. Success within one or two or more of those, I think starts to paint. Clear picture about which entities we are talking about in these contracts and they don't want that detail sure by me, and so we really just have to sort of keep it at a high level when we talk about these.

我們還沒有分享詳細的工作，而且——實際上由於保密協議，我們將無法直接回答這個問題，因為我認為當我們開始談論我們所針對的公司數量時。我認為，其中一兩個或更多的成功已經開始了。清楚地了解我們在這些合約中談論的是哪些實體，他們不希望我確定這些細節，所以當我們談論這些時，我們真的必須保持在較高的水平。

That's all right. My next question is you talked about AI accelerators and using FPGAs instead of some other types of chips to accelerate the AI functions. In your funnel, are there more than one of these AI opportunities in your funnel? Are there more that are outside of the funnel more than years out?

沒關係。我的下一個問題是您談到了人工智慧加速器以及使用FPGA代替其他類型的晶片來加速人工智慧功能。在您的漏斗中，是否有不只一個這樣的人工智慧機會？幾年後還有更多的東西在漏斗之外嗎？

Yes. Some of the recent proposals that I was just talking about have AI as part of them, I would say a key element of it and the FPGA that we have today, I think can bring value to AI an acceleration, which is evident in that 12 nanometer when we've already talked about previously. But I think more importantly, the further we get into this and the more research that's done gives us clues about how we can even adapt further.

是的。我剛才談到的一些最近的提案將人工智慧作為其中的一部分，我想說它的一個關鍵要素以及我們今天擁有的FPGA，我認為可以為人工智慧帶來加速的價值，這一點在12 中很明顯奈米，我們之前已經討論過。但我認為更重要的是，我們越深入研究這個問題，所做的研究就越多，為我們提供如何進一步適應的線索。

Our eFPGA architecture to even better accelerate for performance or lower power reasons on other chip designs that we have in the future and so some of the proposals we have mentioned on this call already about that more acceleration and lower power through other variations of our FPGA architecture.

我們的eFPGA 架構可以更好地加速我們未來其他晶片設計的性能或降低功耗，因此我們在本次電話會議上提到的一些建議已經涉及透過我們的FPGA 架構的其他變體實現更高的加速和更低的功耗。

So yes, there's definitely some in the funnel dollar value the funnel opportunities we talked about and there are some things that would be storefront that's outside the sales funnel number up and not opportunities. Generally, the opportunities we're tracking and prioritizing are ones that would contribute to revenue within the next few years. If it's outside of that, we tend to push that down the priorities that quick.

所以，是的，在漏斗美元價值中肯定有一些我們談到的漏斗機會，還有一些東西是銷售漏斗之外的店面，而不是機會。一般來說，我們正在追蹤和優先考慮的機會是那些將在未來幾年內貢獻收入的機會。如果超出了這個範圍，我們往往會很快地將其優先順序降低。

Yes, thank you for the detail. In terms of AI, are FPGAs better suited for AI at the edge or are you seeing across the board AI use cases seeking to investigate the benefits of FPGA everywhere in the network?

是的，謝謝您的詳細資料。在人工智慧方面，FPGA 是否更適合邊緣人工智慧，或者您是否看到了全面的人工智慧用例，旨在研究網路中各處 FPGA 的優勢？

I think historically, FPGAs have been used more in the essential the data center for AI and not so much at the edge because typical FPGAs tend to be much higher power because they're designed for flat out performance at any cost. One of those cost tends to be powered. As you've been following QuickLogic for a long time, that a lot of our FPGA wins impact on the other end of the spectrum, which tend to be funding cost and power side of the equation where we optimized for power first.

我認為，從歷史上看，FPGA 更多地用於人工智慧資料中心的基礎設施，而不是邊緣，因為典型的FPGA 往往具有更高的功率，因為它們的設計目標是不惜一切代價實現最佳性能。其中一項成本往往是供電。正如您長期以來一直在關注 QuickLogic 一樣，我們的許多 FPGA 都對另一端產生了影響，這往往是等式中的資金成本和功耗方面，我們首先針對功耗進行了最佳化。

And so the -- I think that's one of the reasons why we were able to win this 12 nanometer design we talked earlier because that one's AI at the edge ,where power really does matter and where we already have success from our prior at [Puget] and history as a company. Think about all the smartphone stuff with Kyocera, obviously, power is really important in those applications.

因此，我認為這就是我們能夠贏得我們之前談到的 12 奈米設計的原因之一，因為人工智慧處於邊緣，功率確實很重要，而且我們已經在 [Puget 之前取得了成功。想想京瓷的所有智慧型手機產品，顯然，功率在這些應用中非常重要。

Now, as you think to the future, though, I think there are more AI customers looking at how do they design for power at the edge and performance at the edge. And this is we're adding a modest amount of programmable logic to their asset, can actually help them optimize for those lighter workloads for AI at the edge without killing their power budget and their die size budget.

不過，現在，當你展望未來時，我認為有更多的人工智慧客戶正在考慮如何設計邊緣功率和邊緣性能。我們正在為他們的資產添加適量的可編程邏輯，實際上可以幫助他們優化邊緣人工智慧的較輕工作負載，而不會破壞他們的功率預算和晶片尺寸預算。

So we see a lot of opportunity there, but I think it would be hard to overcome the press and the excitement around data center AI because that's dominating everything that we hear in the news today, right.

因此，我們在那裡看到了很多機會，但我認為很難克服媒體和資料中心人工智慧帶來的興奮，因為它主導了我們今天在新聞中聽到的一切，對吧。

Right. And one final question, as it relates to some of your own defense contract opportunities and the RedHat contract that we've talked about for several quarters now. Do the US federal government budget uncertainties come up to affect sometimes how these tranches are awarded and when they're awarded?

正確的。最後一個問題，因為它涉及您自己的一些國防合約機會以及我們已經討論了幾個季度的 RedHat 合約。美國聯邦政府預算的不確定性有時會影響這些撥款的授予方式和授予時間嗎？

I'm sure there is some impact from the budgeting process on these projects because at the end of the day, the budget has to come from somewhere. But I think usually if you look at the first of the program that we have -- I think there's a need for it.

我確信預算流程對這些項目會產生一些影響，因為歸根結底，預算必須來自某個地方。但我認為，通常如果你看看我們的第一個計劃——我認為這是必要的。

We're executing well and so I think those are the types of programs that are going to continue to get priority from the budgeting process. I think the other thing I would note is that are the awards that we're getting the traction we're getting are generally not like multi-year tranches. And so I think they're my belief anyway, that they're already allocated for within the budget that year.

我們執行得很好，所以我認為這些類型的計劃將繼續在預算過程中優先考慮。我想我要指出的另一件事是，我們所獲得的獎項通常不像多年期獎項。所以我認為無論如何，它們是我的信念，它們已經在當年的預算內分配了。

And so that doesn't become such an issue if we were getting for seeking, multi-year awards, and I think that probably would maybe become more at risk to the government budgeting cycle. But for the ones that we have, I don't foresee that [to be an] issue. And really if you think about the magnitude of the awards we're talking about it it's sort of de minimis in the grand scheme of things from a defense spending overall anyway.

因此，如果我們尋求多年獎勵，這不會成為一個問題，而且我認為這可能會為政府預算週期帶來更大的風險。但對於我們現有的那些，我預計這不會成為一個問題。事實上，如果你考慮我們正在談論的獎項的規模，無論如何，它在整體國防支出的宏偉計劃中只是微不足道的。

Okay. Thanks, Brian. Thanks for your detail.

好的。謝謝，布萊恩。謝謝你的詳細資料。

Thanks Rick.

謝謝瑞克。

(Operator Instructions)

（操作員說明）

Richard Shannon, Craig-Hallum.

理查德·香農，克雷格·哈勒姆。

Hi, guys. It's just have one follow-up question kind of big picture, and that's really looking at the competitive environment of the embedded FPGA IP space. How would you kind of compare the environment versus one or two years ago? (technical difficulty)

嗨，大家好。它只有一個後續問題，即整體情況，即嵌入式 FPGA IP 領域的競爭環境。您認為現在的環境與一、兩年前相比如何？（技術難度）

So my general question here is on the competitive environment versus the one or two years ago. How if any, has it changed better or worse? You're seeing more or less competitors out there? Any kind of changes in the competitive dynamics here that are been favorable or unfavorable to you in that timeframe?

所以我的一般問題是與一兩年前相比的競爭環境。如果有的話，情況是變得更好了還是更糟了？您看到的競爭對手是多還是少？在此期間，競爭動態發生了哪些對您有利或不利的變化？

Yes, I guess on the competitive landscape, if you go back a couple of years I'd say the competitive landscape that we see is pretty unchanged. We see Flex Logix, we see Menta. We don't really see a Achronix because our understanding is they're really just on one node. But the other two, we -- those are the two that we would come across in any type of engagement, that the pure IP-based engagement.

是的，我想在競爭格局上，如果你回到幾年前，我會說我們看到的競爭格局幾乎沒有改變。我們看到了 Flex Logix，我們看到了 Menta。我們並沒有真正看到 Achronix，因為我們的理解是它們實際上只在一個節點上。但另外兩個，我們在任何類型的參與中都會遇到這兩個，即純粹基於智慧財產權的參與。

If you double-click on that a little further, I think Menta is pretty open that they're soft IP and Flex Logix and QuickLogic are pretty open that we're hard and we think there's good reasons for doing hard IP and taking on that workload for the customer, so it makes our customers' lives easier. As you double-click a little further on the differences between the companies, I think this is one of the things I was trying to bring out in the closing remarks that I had.

如果你再雙擊一下，我認為 Menta 非常開放，他們是軟 IP，而 Flex Logix 和 QuickLogic 非常開放，我們是硬 IP，我們認為有充分的理由做硬 IP 並接受這一點。量，從而使客戶的生活更輕鬆。當你進一步雙擊公司之間的差異時，我認為這是我在結束語中試圖指出的事情之一。

But so many of our customers appreciate the fact that we eat our own (technical difficulty) and we've been doing devices both design and support and selling for three decades. And so we know not just how to build the core, but how to build a core for making it easier for people to use, including manufacturing and test and performance and then making the software represent that silicon really well.

但我們的許多客戶都欣賞我們吃自己的東西（技術難度）這一事實，而且我們三十年來一直在設計、支援和銷售設備。因此，我們不僅知道如何建立核心，還知道如何建立核心以使人們更容易使用，包括製造、測試和效能，然後使軟體能夠很好地代表該晶片。

And it's not just about making the core work well, but it's also about that option for doing device development. And you could see a lot of the larger contract values that we're talking about actually include development of the device with the long-term vision of standing up the storefront for those devices.

這不僅關係到讓核心運作良好，還關係到進行設備開發的選項。您可以看到我們正在討論的許多較大的合約價值實際上包括設備的開發以及為這些設備建立店面的長期願景。

And I think that's important, not just from a QuickLogic business and investor perspective, but it's important for our customers also because FPGA technology is relatively new as a core, as you alluded to in your question, and I think people get more comfortable in working with established companies that have been basically using and supporting those that type of technology for decades. And that's one of the traction points that we're seeing in these different proposals.

我認為這很重要，不僅從QuickLogic 業務和投資者的角度來看，而且對我們的客戶也很重要，因為FPGA 技術作為核心相對較新，正如您在問題中提到的那樣，我認為人們在工作中會更舒服幾十年來基本上一直在使用和支持此類技術的老牌公司。這是我們在這些不同提案中看到的吸引力之一。

Even I have examples where somebody started out by talking to us as an FPGA vendor and then pivoting that into doing the device for them because more FPGA content and not. So why not seeing the mix that makes logical sense for the customer. So those are the kinds of dynamics we're seeing. I think you're starting to see more and more people interested in not just the leading edge technologies, but also some of what we would call mainstream technologies as evidenced by our wins that we're talking about going across different foundries now on some of the more mainstream.

甚至我也有這樣的例子，有人一開始就以 FPGA 供應商的身份與我們交談，然後將其轉向為他們製造設備，因為 FPGA 內容更多，而不是更多。那麼為什麼不看到對客戶有意義的組合呢？這些就是我們所看到的動態。我認為你開始看到越來越多的人不僅對前沿技術感興趣，而且對一些我們所說的主流技術感興趣，正如我們所取得的勝利所證明的那樣，我們現在正在討論在一些領域跨越不同的代工廠。

So it feels like we're starting to get people that are more comfortable with technology now and they don't need to be taught with an FPGA is. So it's more like how can they make it useful for them. And so it's I think it's good that those conversations are happening because it means that the technology itself is not a ascent anymore. All right, that of helping answer questions if you have followers.

因此，感覺我們現在開始培養對科技更熟悉的人，他們不需要接受 FPGA 的教學。所以這更像是他們如何讓它對他們有用。所以我認為這些對話的發生是件好事，因為這意味著科技本身不再是上升期。好吧，如果你有追隨者，那就幫助回答問題。

Yes, that all makes sense. Just want to make sure kind of keeping a pulse on the latest and I appreciate your perspective. That's all for me, Brian. Thank you.

是的，這一切都有道理。只是想確保了解最新動態，我很欣賞您的觀點。這就是我的全部，布萊恩。謝謝。

Thanks, Richard.

謝謝，理查。

Thank you. Ladies and gentlemen, we have reached the end of the question and answer session. I'd like to turn the call back to Brian Faith, for closing remarks.

謝謝。女士們、先生們，問答環節已經結束。我想把電話轉回布萊恩·費思，讓他作結束語。

Well, I wanted to thank everybody for your continued support, and we look forward to sharing our progress with you next quarter and have a great day. Thank you.

好吧，我想感謝大家一直以來的支持，我們期待下個季度與您分享我們的進展，祝您度過愉快的一天。謝謝。

This concludes today's conference. You may now 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。