(SEDG) 2023 Q1 法說會逐字稿

Welcome to the SolarEdge Conference Call for the First Quarter ended March 31, 2023. This call is being webcast live on the company's website at www.solaredge.com in the Investors section on the Event Calendar page.

歡迎參加截至 2023 年 3 月 31 日的第一季度 SolarEdge 電話會議。此次電話會議正在公司網站 www.solaredge.com 的活動日曆頁面的投資者部分進行網絡直播。

This call is the sole property and copyright of SolarEdge with all rights reserved, and any recording, reproduction or transmission of this call without the expressed written consent of SolarEdge is prohibited. You may listen to a webcast replay of this call by visiting the event/calendar page of the SolarEdge Investor website.

此通話是 SolarEdge 的唯一財產和版權，保留所有權利，未經 SolarEdge 明確書面同意，禁止錄製、複製或傳輸此通話。您可以通過訪問 SolarEdge Investor 網站的活動/日曆頁面收聽此次電話會議的網絡廣播重播。

I would now like to turn the call over to Erica Mannion at Sapphire Investor Relations, Investor Relations for SolarEdge.

我現在想把電話轉給 Sapphire Investor Relations 的 Erica Mannion，SolarEdge 的投資者關係。

Good afternoon. Thank you for joining us to discuss SolarEdge's operating results for the first quarter ended March 31, 2023, as well as the company's outlook for the second quarter of 2023. With me today are Zvi Lando, Chief Executive Officer; and Ronen Faier, Chief Financial Officer. Zvi will begin with a brief review of the results for the first quarter ended March 31, 2023. Ronen will review the financial results for the first quarter, followed by the company's outlook for the second quarter of 2023. We will then open the call for questions.

下午好。感謝您與我們一起討論 SolarEdge 截至 2023 年 3 月 31 日的第一季度的經營業績，以及公司對 2023 年第二季度的展望。今天和我在一起的是首席執行官 Zvi Lando；和首席財務官 Ronen Faier。 Zvi 將首先簡要回顧截至 2023 年 3 月 31 日的第一季度業績。Ronen 將回顧第一季度的財務業績，然後是公司 2023 年第二季度的展望。然後我們將公開徵集問題。

Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in our press release and the slides published today for a more complete description. All material contained in the webcast is the sole property and copyright of SolarEdge Technologies with all rights reserved.

請注意，此次電話會議將包括前瞻性陳述，其中涉及可能導致實際結果與管理層當前預期存在重大差異的風險和不確定性。我們鼓勵您查看我們的新聞稿中包含的安全港聲明和今天發布的幻燈片，以獲得更完整的描述。網絡廣播中包含的所有材料均為 SolarEdge Technologies 的獨有財產和版權，保留所有權利。

Please note this presentation describes certain non-GAAP measures, including non-GAAP net income and non-GAAP net diluted earnings per share, which are not measures prepared in accordance with U.S. GAAP. The non-GAAP measures are presented in this presentation as we believe they provide investors with the means of evaluating and understanding how the company's management evaluates the company's operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for or superior to financial measures prepared in accordance with U.S. GAAP.

請注意，本演示文稿描述了某些非 GAAP 指標，包括非 GAAP 淨收入和非 GAAP 淨稀釋每股收益，這些指標不是根據美國 GAAP 編制的指標。本演示文稿中介紹了非 GAAP 措施，因為我們認為它們為投資者提供了評估和理解公司管理層如何評估公司經營業績的方法。這些非 GAAP 措施不應孤立於、替代或優於根據美國公認會計原則編制的財務措施。

Listeners who do not have a copy of the quarter ended March 31, 2023 press release or the supplemental material may obtain a copy by visiting the Investors section of the company's website. Now I will turn the call over to Zvi.

沒有截至 2023 年 3 月 31 日的季度新聞稿或補充材料副本的聽眾可以通過訪問公司網站的投資者部分獲取副本。現在我將把電話轉給 Zvi。

Thank you, Erica. Good afternoon, and thank you all for joining us on our conference call today. Starting with highlights of our first quarter results. we concluded the quarter with record revenues of approximately $944 million. Revenues from our Solar business were at a record $909 million, while revenues from our Non-Solar business were $35 million. This quarter, we shipped 6.4 million in power optimizers and 330,000 inverters. This quarter, we also shipped 221-megawatt hour of residential batteries, a slight increase from last quarter.

謝謝你，艾麗卡。下午好，感謝大家今天加入我們的電話會議。從我們第一季度業績的亮點開始。本季度結束時，我們的收入達到創紀錄的約 9.44 億美元。我們太陽能業務的收入達到創紀錄的 9.09 億美元，而非太陽能業務的收入為 3500 萬美元。本季度，我們出貨了 640 萬台電源優化器和 330,000 台逆變器。本季度，我們還出貨了 221 兆瓦時的住宅電池，比上一季度略有增加。

Our Solar business revenue grew quarter-over-quarter by 9% and by 49% year-over-year, mostly driven by record revenues in Europe and Rest of World. We saw record revenues in many countries this quarter, including Germany, Austria, Switzerland, France, South Africa and Australia and very strong revenues from the Netherlands and Italy.

我們的太陽能業務收入環比增長 9%，同比增長 49%，主要受歐洲和世界其他地區創紀錄收入的推動。本季度我們在許多國家看到了創紀錄的收入，包括德國、奧地利、瑞士、法國、南非和澳大利亞，以及來自荷蘭和意大利的非常強勁的收入。

Considering that this was a record revenue quarter from our non-U.S., non-Europe region, I want to share a little more information about the geographic landscape, which we define as Rest of World. Revenue this quarter from these regions were up 30% quarter-over-quarter and came from 24 countries across the Asia Pacific, Africa and South America. Noteworthy countries in size of market and revenue include Australia, Israel, Taiwan, Thailand, Korea, Brazil and South Africa.

考慮到這是我們非美國、非歐洲地區創紀錄的收入季度，我想分享更多關於地理景觀的信息，我們將其定義為世界其他地區。本季度來自這些地區的收入環比增長 30%，來自亞太、非洲和南美洲的 24 個國家。市場規模和收入值得注意的國家包括澳大利亞、以色列、台灣、泰國、韓國、巴西和南非。

What I think is often overlooked is the extent of our geographic presence and the growth opportunities in this region. For example, in South Africa, where due to a significant increase in power outage frequency and duration, we are seeing unprecedented demand for solar products, including our residential battery. Or in Japan, where a recent regulation of the Tokyo metropolitan authority has created a special incentive for PV systems with module-level power electronics for which we already have local certification. As we have said in the past and is evident this quarter, our global presence and infrastructure provides us with stability in our business and access to many growth opportunities.

我認為經常被忽視的是我們的地理分佈範圍和該地區的增長機會。例如，在南非，由於停電頻率和持續時間顯著增加，我們看到對太陽能產品（包括我們的住宅電池）的空前需求。或者在日本，東京都當局最近出台的一項法規特別鼓勵採用我們已經獲得當地認證的模塊級電力電子設備的光伏系統。正如我們過去所說並且在本季度顯而易見的那樣，我們的全球影響力和基礎設施為我們的業務提供了穩定性並獲得了許多增長機會。

Moving back to the core regions and segments. The European residential markets continues to be very strong for us this quarter as we ramp shipments of 3-phase residential inverters, in particular, our new backup inverter as well as the 3-phase residential battery. We expect this momentum to continue in the coming quarters as we are still increasing capacity of backup inverters to deliver on the significant backlog and the strong demand for this product.

回到核心區域和細分市場。本季度歐洲住宅市場對我們來說仍然非常強勁，因為我們增加了三相住宅逆變器的出貨量，特別是我們新的備用逆變器以及三相住宅電池。我們預計這種勢頭將在未來幾個季度繼續，因為我們仍在增加備用逆變器的容量，以滿足大量積壓訂單和對該產品的強勁需求。

In the U.S., revenues were down quarter-over-quarter, driven by weakness in the residential segment related to the general effect of interest rates and lower battery sales. As we noted last quarter, residential originations in the fourth quarter were seasonally down more significantly than in prior years, but origination data has improved in the first quarter to the level of the same time last year and even slightly higher.

在美國，收入環比下降，原因是與利率和電池銷售下降的總體影響相關的住宅市場疲軟。正如我們在上個季度所指出的那樣，第四季度住宅發起的季節性下降比往年更為明顯，但第一季度的發起數據有所改善，達到去年同期的水平，甚至略有上升。

While we expect the uncertainties in the U.S. residential market to continue in the short term, we believe that the long-term dynamics of NEM 3.0 and our advantages under this regulation, which I will discuss further in a few moments as well as the expectation for TPO share growth cater well to our product offering and position in the market.

雖然我們預計美國住宅市場的不確定性將在短期內持續存在，但我們相信 NEM 3.0 的長期動態和我們在該監管下的優勢，我將在稍後進一步討論，以及對新經幣 3.0 的預期TPO 份額增長很好地滿足了我們的產品供應和市場地位。

Moving to commercial. In the first quarter, we shipped a record 2.1 gigawatts of inverters representing 36% quarter-over-quarter and 108% growth year-over-year. This record is a result of the strong demand we have been discussing in recent quarters, around corporate ESG initiatives and the multiple C&I applications, coupled with the ramp in production that we have achieved.

轉向商業。第一季度，我們出貨了創紀錄的 2.1 吉瓦逆變器，環比增長 36%，同比增長 108%。這一記錄是我們最近幾個季度圍繞企業 ESG 舉措和多個 C&I 應用程序討論的強勁需求的結果，再加上我們已經實現的產量增長。

Momentum of the C&I market is global and the inherent advantages of our solution in this market among them, safety capability and balance of system cost efficiencies, position us well such as demand for our product is still outpacing capacity.

C&I 市場的發展勢頭是全球性的，我們的解決方案在這個市場中的固有優勢、安全能力和系統成本效率的平衡使我們處於有利地位，例如對我們產品的需求仍然超過產能。

On top of the strong demand and market position of our commercial offering, part of our growth strategy includes providing our customers with energy management applications and services. In this context, this quarter, we closed the previously announced acquisition of Hark Systems. Hark SaaS products allow companies to get the granular level of energy transparency, and then start acting on what they are seeing.

除了我們商業產品的強勁需求和市場地位之外，我們的部分增長戰略還包括為我們的客戶提供能源管理應用程序和服務。在此背景下，本季度，我們完成了之前宣布的對 Hark Systems 的收購。 Hark SaaS 產品使公司能夠獲得細粒度的能源透明度，然後開始根據他們所看到的採取行動。

It integrates with solar, storage, EV charging, HVAC, factory machinery, building management systems, smart meters and other assets. Now that the acquisition has closed, we will use Hark's capabilities to augment our software offering for C&I customers by providing additional monitoring and connectivity capabilities as our customers move from solar-only installations to systems with storage, EV charging and other advanced energy needs.

它集成了太陽能、儲能、電動汽車充電、暖通空調、工廠機械、樓宇管理系統、智能電錶和其他資產。現在收購已經完成，隨著我們的客戶從純太陽能裝置轉向具有存儲、EV 充電和其他高級能源需求的系統，我們將利用 Hark 的能力通過提供額外的監控和連接功能來增強我們為 C&I 客戶提供的軟件產品。

I want now to return to the topic of NEM 3.0, which became effective in California in April and the suitability of our product offering to address this regulation. The main impact of the NEM 3.0 regulation is significant reduction in the economic benefit of exporting power to the grid. And as such, it is to the systems owners' advantage to use their energy the solar system producers during most times of the day, other than in specific instances when the utility pays an exceptionally high rate for the power exported from the system.

我現在想回到 NEM 3.0 的主題，該新經幣 3.0 於 4 月在加利福尼亞州生效，以及我們提供的產品是否適合解決此法規。 NEM 3.0 法規的主要影響是顯著降低向電網輸出電力的經濟效益。因此，除了在公用事業公司為從系統輸出的電力支付極高費用的特定情況下，在一天中的大部分時間使用太陽能係統生產商的能源對系統所有者有利。

Our large installed base of solar plus batteries in time of use or self-consumption markets, predominantly in European countries has enabled us to gain experience managing such use cases as well as develop specific algorithms to maximize the import and export optimization.

我們在使用時間或自我消費市場（主要在歐洲國家）的大型太陽能加電池安裝基礎使我們能夠獲得管理此類用例的經驗，並開發特定算法以最大限度地優化進出口。

Our analysis shows that the best return on investment under NEM 3.0 is achieved with the solar plus battery combination, but exact payback times can be affected by many different factors. Among these factors are system size consumption patterns, oversizing ratio with DC panels to the inverter AC power, battery capacity and power and the local utility provider's policy.

我們的分析表明，太陽能加電池組合可實現 NEM 3.0 下的最佳投資回報，但確切的投資回收時間可能受到許多不同因素的影響。這些因素包括系統規模消耗模式、直流面板與逆變器交流電源的超大比例、電池容量和功率以及當地公用事業提供商的政策。

In specific use cases, payback can be met within 6 to 7 years. More importantly, homeowners can offset their monthly electricity bill by up to 95% using solar plus battery when paying for the system in cash while when using a loan, monthly electricity bill can be reduced by approximately 30%.

在特定用例中，可在 6 到 7 年內收回投資。更重要的是，當房主以現金支付系統費用時，使用太陽能加電池可抵消高達 95% 的每月電費，而使用貸款時，每月電費可減少約 30%。

To achieve best economics from a solar plus battery solution, the battery needs to be sized and managed in an optimal way. For example, under NEM 3.0 during the month of September, the export rate in some of the California utilities is as high as $3 per kilowatt hour for 2 hours in the afternoon after the sun is down and there is no solar power.

為了從太陽能加電池解決方案中獲得最佳經濟效益，需要以最佳方式調整和管理電池。例如，在 9 月份的 NEM 3.0 下，一些加州公用事業公司的出口率在太陽下山且沒有太陽能的下午 2 小時內高達每千瓦時 3 美元。

To take full advantage of this high rate, the battery needs to have the right capacity and power. The SolarEdge home battery with its 10-kilowatt hour capacity and 5 kilowatts of continuous power can discharge in full during this 2-hour duration contributing to maximum savings. In addition, with our DC coupled battery, there is only 1 AC to DC conversion of the energy stored in the battery compared to 3 conversions with an AC coupled battery. We estimate that approximately 5% to 7% of the energy is lost in every charge cycle of an AC battery.

要充分利用這種高速率，電池需要具有合適的容量和功率。 SolarEdge 家用電池具有 10 千瓦時的容量和 5 千瓦的持續功率，可以在這 2 小時的時間內完全放電，從而最大限度地節省能源。此外，使用我們的直流耦合電池，電池中存儲的能量只有 1 次交流到直流轉換，而交流耦合電池需要 3 次轉換。我們估計交流電池的每個充電週期大約損失 5% 到 7% 的能量。

DC coupled batteries also make maximum use of system [oversizing]. Since the battery is connected directly to the inverter and not through the AC panel, the system can store all excess energy generated from the panels above inverter AC capacity in the battery, generating as much as 3% more power during the peak summer months.

直流耦合電池也最大限度地利用了系統 [oversizing]。由於電池直接連接到逆變器而不是通過交流面板，系統可以將面板產生的超過逆變器交流容量的所有多餘能量存儲在電池中，在夏季用電高峰月份多產生 3% 的電量。

Finally, in self-consumption mode, DC-coupled batteries are simple to install and commission as they only require 1 DC connection to the inverter and do not require a main panel upgrade. Homeowners can choose to start with a more cost-effective self-consumption battery, which we call Rate Saver mode and add a backup option when desired. In conclusion, we feel that our hardware plus software solution addresses the NEM 3.0 requirements in an optimal way, and we look forward to good adoption of our offering in this market.

最後，在自耗模式下，直流耦合電池易於安裝和調試，因為它們只需要將 1 個直流連接到逆變器並且不需要升級主面板。房主可以選擇從更具成本效益的自耗電池入手，我們稱之為 Rate Saver 模式，並在需要時添加備用選項。總之，我們認為我們的硬件加軟件解決方案以最佳方式滿足了 NEM 3.0 的要求，我們期待我們的產品在這個市場上得到很好的採用。

Before handing it over to Ronen, I would like to give a brief update on our operational stability and growth. Over the last 2 years, we have dealt with challenges around component availability, supply chain issues and logistics constraints. The general improvement in the market, combined with the actions that we have taken have allowed us to return to a more normal mode of operation.

在將其交給 Ronen 之前，我想簡要介紹一下我們的運營穩定性和增長情況。在過去的 2 年裡，我們應對了組件可用性、供應鏈問題和物流限制方面的挑戰。市場的普遍改善，加上我們採取的行動，使我們能夠恢復到更正常的運營模式。

In most product areas, we are at a point where our manufacturing capacity is able to meet demand, and we can use normal shipping routes, build inventory and reduce lead times. For other products, in particular, 3-phases inverters for commercial and residential use, we are still ramping and expect to reach stability within the next couple of quarters.

在大多數產品領域，我們的製造能力能夠滿足需求，我們可以使用正常的運輸路線、建立庫存並縮短交貨時間。對於其他產品，特別是用於商業和住宅用途的三相逆變器，我們仍在逐步增加，並希望在接下來的幾個季度內達到穩定。

Our operational plan is to adding manufacturing sites in the U.S. to increase capacity and benefit from the manufacturing credits of the IRA where we are on track to have U.S. manufactured products in the third quarter of this year.

我們的運營計劃是在美國增加製造基地，以增加產能並從 IRA 的製造信貸中受益，我們有望在今年第三季度在美國製造產品。

With this, I hand it over to Ronen, who will review our financial results.

有了這個，我把它交給 Ronen，他將審查我們的財務結果。

Thank you, Zvi, and good afternoon, everyone. This financial review includes the GAAP and non-GAAP discussion. Full reconciliation of the pro forma to GAAP results discussed on this call is available on our website and in the press release issued today. Segment profit is comprised of gross profit for the segment less operating expenses that do not include amortization of purchased intangible assets, impairments of goodwill and intangible assets stock-based compensation expenses and certain other items.

謝謝 Zvi，大家下午好。此財務審查包括 GAAP 和非 GAAP 討論。我們的網站和今天發布的新聞稿中提供了本次電話會議上討論的備考結果與 GAAP 結果的完全對賬。分部利潤包括該分部的毛利減去經營費用，其中不包括已購無形資產的攤銷、商譽減值和無形資產股票補償費用以及某些其他項目。

Total revenues for the first quarter were a record $943.9 million, a 6% increase compared to $890.7 million last quarter and a 44% increase compared to $655.1 million for the same quarter last year. Revenues from our Solar segment, which includes the sales of residential battery were a record $908.5 million, a 9% increase compared to $837 million last quarter and a 49% increase compared to $608 million for the same quarter last year.

第一季度的總收入達到創紀錄的 9.439 億美元，與上一季度的 8.907 億美元相比增長 6%，與去年同期的 6.551 億美元相比增長 44%。我們太陽能部門的收入（包括住宅電池的銷售額）達到創紀錄的 9.085 億美元，與上一季度的 8.37 億美元相比增長 9%，與去年同期的 6.08 億美元相比增長 49%。

Solar revenues from the United States this quarter were $255.5 million, a 16% decrease from the last quarter and a 4% decrease from the same quarter last year, representing 28.1% of our Solar revenues. Solar revenues from Europe were a record $577.1 million, a 22% increase from the last quarter and 102% increase from the same quarter last year, representing 63.5% of our Solar revenues. 2 countries in Europe represented well above $100 million each and we achieved record revenue in several countries.

本季度來自美國的太陽能收入為 2.555 億美元，比上一季度下降 16%，比去年同期下降 4%，占我們太陽能收入的 28.1%。來自歐洲的太陽能收入達到創紀錄的 5.771 億美元，比上一季度增長 22%，比去年同期增長 102%，占我們太陽能收入的 63.5%。歐洲有 2 個國家/地區的銷售額均超過 1 億美元，我們在多個國家/地區實現了創紀錄的收入。

In particular, we saw meaningful quarter-over-quarter growth in Germany with 17%, Switzerland with 177%, Austria with 253%, and France with 31% growth. Revenues from batteries grew slightly this quarter in Europe, limited by the fact that we are still ramping 3-phase inverter supply, which is needed for battery coupled systems.

特別是，我們看到德國 17%、瑞士 177%、奧地利 253% 和法國 31% 的顯著環比增長。本季度歐洲的電池收入略有增長，受限於我們仍在增加電池耦合系統所需的三相逆變器供應這一事實。

Rest of the world, Solar revenues were a record $75.9 million, a 30% increase compared to the last quarter and a 32% increase from the last -- from last year, representing 8.4% of total Solar revenues. On a megawatt basis, we shipped a record 975 megawatts of inverters to the United States a record 2.1 gigawatts to Europe and a record 493 megawatts to the rest of the world surpassing 3.6 gigawatts of record quarterly inverter shipments. 58% of the megawatt shipments this quarter were commercial products and the remaining 42% were residential, a result of higher European and rest of the world revenues in the total mix. In the first quarter, we shipped 221 megawatt hour of our residential batteries, a slight increase from 217.6 last quarter.

在世界其他地區，太陽能收入達到創紀錄的 7590 萬美元，比上一季度增長 30%，比去年增長 32%，佔太陽能總收入的 8.4%。按兆瓦計算，我們向美國運送了創紀錄的 975 兆瓦逆變器，向歐洲運送了創紀錄的 2.1 吉瓦，向世界其他地區運送了創紀錄的 493 兆瓦，超過了創紀錄的季度逆變器出貨量 3.6 吉瓦。本季度 58% 的兆瓦出貨量是商業產品，其餘 42% 是住宅產品，這是歐洲和世界其他地區總收入增加的結果。第一季度，我們的住宅電池出貨量為 221 兆瓦時，比上一季度的 217.6 兆瓦時略有增加。

The vast majority of our batteries continue to be shifted to Europe, driven by the strong adoption and the demand of -- and the demand for our 3-phase solution. ASP per watts this quarter, excluding battery revenue, was $0.22, a 7% decrease from $0.237 last quarter. This ASP per watt decrease is predominantly a result of increased commercial products in our overall mix, partially offset by a stronger euro. On a unit basis, our prices did not change this quarter.

在對我們的三相解決方案的強烈採用和需求的推動下，我們的絕大多數電池繼續轉移到歐洲。本季度每瓦平均售價（不包括電池收入）為 0.22 美元，比上一季度的 0.237 美元下降 7%。每瓦 ASP 的下降主要是由於我們整體產品組合中商業產品的增加，部分被歐元走強所抵消。在單位基礎上，我們的價格本季度沒有變化。

Our battery ASP per kilowatt hour was $475, slightly up from $473 in the last quarter, mostly a result of stronger euro and customer mix changes. Revenues this quarter from our Non-Solar business were $35.2 million a decrease from $53.6 million in the last quarter, a result of seasonality in the storage business. Consolidated GAAP gross margin for the quarter was 31.8% compared to 29.3% in the prior quarter and 27.3% in the same quarter last year. Our non-GAAP gross margin this quarter was 32.1 -- sorry, 32.6% compared to 30.2% in the prior quarter and 28.4% in the same quarter last year.

我們的電池每千瓦時平均售價為 475 美元，略高於上一季度的 473 美元，這主要是由於歐元走強和客戶組合變化。本季度非太陽能業務的收入為 3520 萬美元，低於上一季度的 5360 萬美元，這是存儲業務季節性的結果。本季度綜合 GAAP 毛利率為 31.8%，上一季度為 29.3%，去年同期為 27.3%。我們本季度的非 GAAP 毛利率為 32.1——抱歉，為 32.6%，而上一季度為 30.2%，去年同期為 28.4%。

Gross margin for the Solar segment was 35% compared to 32.4% in the prior quarter and 30.2% in the same quarter last year. Before diving into the gross margin details, I would like to note that this quarter, we have exceeded our financial targets as presented in our Analyst Day in March 2022. In the Solar division, our inverter and optimizer margins have exceeded 37%. Our residential inverter and optimizer products margin exceeded 40% and our battery margins exceeded 25%.

太陽能部門的毛利率為 35%，上一季度為 32.4%，去年同期為 30.2%。在深入探討毛利率細節之前，我想指出，本季度，我們已經超出了 2022 年 3 月分析師日提出的財務目標。在太陽能部門，我們的逆變器和優化器利潤率已超過 37%。我們的住宅逆變器和優化器產品利潤率超過 40%，我們的電池利潤率超過 25%。

We continue to improve our gross margin through cost reduction activities and higher efficiency within our supply chain, and we expect that future gross margin trends will be mostly driven by product, customer and geographic mix. This quarter, our gross margin results were primarily driven by an improved exchange rate between the euro and the U.S. dollar, further improvements in our shipping and logistic costs, a result of stabilized component availability and manufacturing, which also resulted in lower charges from our contract manufacturers. Offsetting our gross margin improvement was a higher portion of commercial sales that are characterized by lower gross margins and adjustments made to our warranty obligations.

我們繼續通過降低成本活動和提高供應鏈效率來提高我們的毛利率，我們預計未來的毛利率趨勢將主要由產品、客戶和地理組合驅動。本季度，我們的毛利率業績主要受歐元兌美元匯率改善、我們的運輸和物流成本進一步改善、組件供應和製造穩定的結果推動，這也導致我們的合同費用降低製造商。抵消了我們毛利率提高的是商業銷售的更高部分，其特點是毛利率較低和對我們的保修義務進行了調整。

Good subject to tariffs, excluding batteries, shifting to the United States from China accounted for 12% of our U.S. shipments this quarter, a level that we expect to slightly decrease in the next quarters. Gross margin for our Non-Solar segment was minus 31.3% and compared to minus 4.6% in the previous quarter, a result of process stabilization costs associated with our Sella 2 ramp in Korea.

受關稅影響，不包括電池，本季度從中國轉移到美國的產品占我們美國出貨量的 12%，我們預計這一水平在接下來的幾個季度會略有下降。我們非太陽能部門的毛利率為負 31.3%，而上一季度為負 4.6%，這是與我們在韓國的 Sella 2 爬坡相關的工藝穩定成本的結果。

On a non-GAAP basis, operating expenses for the first quarter were $123.6 million or 13.1% of revenues compared to $119 million or 13.4% of revenues in the prior quarter and $98.9 million or 15.1% of revenue for the same quarter last year. We expect to continue to see our operational leverage expanding during 2023 as the revenues continue to grow faster than our operating expenses.

按非美國通用會計準則計算，第一季度運營費用為 1.236 億美元，佔收入的 13.1%，上一季度為 1.19 億美元，佔收入的 13.4%，去年同期為 9890 萬美元，佔收入的 15.1%。我們預計在 2023 年期間我們的運營槓桿將繼續擴大，因為收入增長繼續快於我們的運營支出。

However, in the second quarter of 2023, we will see relatively flat percentage of operating expenses to revenue, a result of our annual employee merit process that takes place in the second quarter of each year.

然而，在 2023 年第二季度，我們將看到營業費用佔收入的百分比相對持平，這是我們每年第二季度進行的年度員工績效評估的結果。

Our Solar segment operating expenses as a percentage of Solar revenue were 12.3% compared to 13% last quarter. Non-GAAP operating income for the quarter was a record $183.8 million compared to $149.6 million in the previous quarter and $87.2 million for the same period last year.

我們的太陽能部門運營費用佔太陽能收入的百分比為 12.3%，而上一季度為 13%。本季度非美國通用會計準則營業收入達到創紀錄的 1.838 億美元，上一季度為 1.496 億美元，去年同期為 8720 萬美元。

This quarter, the Solar segment generated a record operating profit of $206.7 million compared to an operating profit of $162.2 million last quarter. The Non-Solar segment generated an operating loss of $22.9 million compared to an operating loss of $12.5 million in the previous quarter.

本季度，太陽能部門產生了創紀錄的 2.067 億美元營業利潤，而上一季度的營業利潤為 1.622 億美元。與上一季度 1250 萬美元的運營虧損相比，非太陽能部門產生了 2290 萬美元的運營虧損。

Non-GAAP financial income for the quarter was $24 million compared to a non-GAAP financial income of $59.4 million in the previous quarter, a result of the appreciation of our euro-denominated cash and customer balances. At the prevailing exchange rates, we will gradually decrease our balance sheet exposure to the euro by converting some of our cash balances from euro to U.S. dollar at a higher frequency.

本季度非 GAAP 財務收入為 2400 萬美元，而上一季度的非 GAAP 財務收入為 5940 萬美元，這是由於我們以歐元計價的現金和客戶餘額升值。按照現行匯率，我們將通過以更高的頻率將部分現金餘額從歐元轉換為美元，逐步減少資產負債表對歐元的敞口。

Our non-GAAP tax expense was $33.2 million compared to $37.5 million in the previous quarter and $13.5 million for the same period last year. GAAP net income for the first quarter was a record $138.4 million compared to a GAAP net income of $20.8 million in the previous quarter and $33.1 million in the same quarter last year.

我們的非 GAAP 稅收支出為 3320 萬美元，上一季度為 3750 萬美元，去年同期為 1350 萬美元。第一季度的 GAAP 淨收入達到創紀錄的 1.384 億美元，而上一季度的 GAAP 淨收入為 2080 萬美元，去年同期為 3310 萬美元。

Our non-GAAP net income was a record $174.5 million compared to a non-GAAP net income of $171.5 million in the previous quarter and $68.8 million in the same quarter last year. GAAP net diluted earnings per share was a record $2.35 for the first quarter compared to $0.36 in the previous quarter and $0.60 for the same quarter last year. Non-GAAP net diluted earnings per share was a record $2.90 compared to $2.86 in the previous quarter and $1.20 in the same quarter last year.

我們的非 GAAP 淨收入達到創紀錄的 1.745 億美元，而上一季度的非 GAAP 淨收入為 1.715 億美元，去年同期為 6880 萬美元。第一季度 GAAP 每股攤薄淨收益為創紀錄的 2.35 美元，而上一季度為 0.36 美元，去年同期為 0.60 美元。非 GAAP 每股攤薄淨收益為創紀錄的 2.90 美元，而上一季度為 2.86 美元，去年同期為 1.20 美元。

Turning now to the balance sheet. As of March 31, 2023, cash, cash equivalents, bank deposits, restricted bank deposits and investments were $1.6 billion. Net of debt, this amount is $1 billion. Accounts receivable net increased this quarter to $969.5 million compared to $905.1 million last quarter, a reflection of our increased revenues.

現在轉向資產負債表。截至 2023 年 3 月 31 日，現金、現金等價物、銀行存款、受限制的銀行存款和投資為 16 億美元。扣除債務後，這一數額為 10 億美元。本季度的應收賬款淨額從上一季度的 9.051 億美元增加到 9.695 億美元，這反映了我們收入的增加。

As of March 31, our inventory level, net of reserve, was at a level of $874.2 million compared to $729.2 million in the prior quarter. It's important to note that our inventory levels this quarter include higher levels of finished good products, a result of streamlined manufacturing. These finished goods inventories in the various regions will allow us to further improve our customer delivery time and reduce shipping and logistic expenses.

截至 3 月 31 日，我們的庫存水平（扣除儲備）為 8.742 億美元，而上一季度為 7.292 億美元。重要的是要注意，我們本季度的庫存水平包括更高水平的成品，這是精簡製造的結果。各個地區的這些成品庫存將使我們能夠進一步縮短客戶交貨時間並減少運輸和物流費用。

Turning to our guidance for the second quarter of 2023. We're guiding revenues to be within the range of $970 million to $1.01 billion. We expect non-GAAP gross margins to be within the range of 32% to 35%. We expect our non-GAAP operating profit to be within the range of $195 million to $215 million.

轉向我們對 2023 年第二季度的指導。我們指導收入在 9.7 億美元至 10.1 億美元之間。我們預計非 GAAP 毛利率將在 32% 至 35% 的範圍內。我們預計我們的非 GAAP 營業利潤將在 1.95 億美元至 2.15 億美元之間。

Revenues from the Solar segment are expected to be within the range of $930 million to $980 million. Gross margins from the Solar segment is expected to be within the range of 34% to 37%.

太陽能部門的收入預計在 9.3 億美元至 9.8 億美元之間。太陽能部門的毛利率預計在 34% 至 37% 之間。

I will now turn the call over to the operator to open it up for questions.

我現在將把電話轉給接線員以打開它提問。

(Operator Instructions) We'll move first to Brian Lee with Goldman Sachs.

（操作員說明）我們將首先轉移到高盛的 Brian Lee。

I just had 2. First one, kudos on the gross margin execution here. Clearly, the outlook for 2Q, as you acknowledged, Ronen is ahead of the long-term model. So just wondering if this should be the new level for the rest of this year to be thinking about or maybe kind of what the levers are here going forward? And then what would make you consider adjusting the long-term targets at some point? And then I had a follow-up.

我只有 2 個。第一個，這裡的毛利率執行情況值得稱讚。顯然，正如您所承認的那樣，第二季度的前景，Ronen 領先於長期模型。所以只是想知道這是否應該成為今年剩餘時間要考慮的新水平，或者可能是這裡前進的槓桿？那麼是什麼讓你考慮在某個時候調整長期目標？然後我進行了跟進。

Okay. So first of all, thank you, Brian. So currently, we're not adjusting our numbers compared to what we've guided before. Although indeed, the gross margins that we presented for the next quarter are above what we've guided. In many senses, we've improved the margin drivers, especially related to the logistic costs and, of course, some of the pricing differences related to the fact that the euro was a little bit better, and we did affect some increases of prices at the beginning of the first quarter. And this is very much impacting the gross margins favorably.

好的。所以首先，謝謝你，布賴恩。所以目前，與我們之前的指導相比，我們沒有調整我們的數字。儘管確實如此，我們為下一季度提出的毛利率高於我們的指導水平。從很多方面來說，我們已經改善了利潤驅動因素，尤其是與物流成本相關的因素，當然還有一些與歐元稍微好一點的事實有關的定價差異，我們確實影響了一些價格上漲第一季度開始。這對毛利率產生了很大的影響。

At the same time, we do know that we expect to see some changes to the mix of our product offering and sales over the next few quarters, especially with a higher amount of batteries that will be shipped, and these are characterized with a little bit of lower gross margins.

與此同時，我們確實知道，我們預計在接下來的幾個季度中，我們的產品供應和銷售組合會發生一些變化，尤其是隨著電池出貨量的增加，這些特點有點較低的毛利率。

So on one hand, we still have opportunities to continue to grow gross margins after a long time that we dealt with component changes, we are doing cost reduction activities within our R&D organization, there are still places to improve the shipment costs and the higher inventories that we have in channel certainly in our warehouses at least certainly helped this one.

因此，一方面，經過很長一段時間我們處理組件變化後，我們仍然有機會繼續增加毛利率，我們正在我們的研發組織內進行成本削減活動，仍有地方可以改善運輸成本和更高的庫存我們在我們的倉庫中肯定有渠道至少肯定幫助了這一點。

But since we do expect that we'll see some changes, at least right now, we are guiding for a higher level will remain for a few quarters looking at what are the market trends that we see and what is the adoption rate of each of our products. And then we will decide the whether we need to change anything.

但由於我們確實預計我們會看到一些變化，至少現在是這樣，我們正在指導一個更高的水平將保持幾個季度，看看我們看到的市場趨勢是什麼以及每個市場的採用率是多少我們的產品。然後我們將決定是否需要更改任何內容。

Okay. Makes sense. And then just again, kudos on executing well in Europe here. There's been more and more chatter, I feel like, to start the year around the potential slowdown in that region and then also some concerns around maybe pricing getting tougher there. So -- and maybe Ronen, maybe walk us through how much visibility one -- you have in Europe for the second half. It seems like that's a region that has more visibility than historically has, had more visibility the way ordering happens there versus the U.S., but maybe if you could walk us through that. And then also on pricing, what you're doing there, commercial resi? And then also what you're seeing from competition on the pricing front?

好的。說得通。再一次，在歐洲表現出色的榮譽。我覺得今年開始圍繞該地區可能放緩的討論越來越多，然後還有一些關於定價可能變得更嚴格的擔憂。所以 - 也許 Ronen，也許會告訴我們下半場你在歐洲有多少知名度。這似乎是一個比歷史上具有更高知名度的地區，與美國相比，那裡的訂購方式具有更高的知名度，但也許你可以引導我們了解一下。然後還有定價，你在那裡做什麼，商業報告？然後您還從定價方面的競爭中看到了什麼？

Yes, Brian. In regards to market dynamics, we don't see right now a change in the pattern of demand in the market in Europe. Power prices have reduced to a certain extent, but they're still quite significantly higher than in the past and the return on the investment is good for both consumers and businesses, and we don't see, at least until now any change in the dynamic and the market continues to be strong.

是的，布萊恩。關於市場動態，我們目前看不到歐洲市場需求模式的變化。電價有一定程度的下降，但仍然比過去高很多，投資回報對消費者和企業來說都是好的，我們看不到，至少到現在為止，電價有任何變化動態和市場繼續強勁。

On the competitive side, yes, many companies have -- availability of product has increased and the market has become more competitive in that regard and more similar to market dynamics of the past, where we are competing less on the basis of availability and more on the basis of value and the premium capabilities of our solution and the other advantages in service and presence. So it's a dynamic that we've lived with for more than 10 years and are quite comfortable with our ability to obtain premium pricing for our products and solutions.

在競爭方面，是的，許多公司已經——產品的可用性增加了，市場在這方面變得更具競爭力，更類似於過去的市場動態，我們在可用性的基礎上競爭更少，更多的是基於我們解決方案的價值基礎和高級功能以及服務和存在方面的其他優勢。因此，這是一種我們已經經歷了 10 多年的動態，並且對我們為我們的產品和解決方案獲得溢價的能力感到非常滿意。

We'll take our next question from Colin Rusch with Oppenheimer.

我們將與奧本海默一起接受 Colin Rusch 的下一個問題。

Can you talk a little bit about the R&D staff returning to product evolution and cost programs rather than just qualifying new components? And when we might start to see some incremental improvements on the underlying cost structure for both solar and the battery products.

你能談談研發人員回歸產品發展和成本計劃，而不僅僅是對新組件進行資格認證嗎？當我們可能開始看到太陽能和電池產品的基本成本結構出現一些漸進式改進時。

So definitely, there's been a share -- I can't quantify it exactly, but this is at the peak time during last year, we would have suggested that about 50% of the R&D organization is dealing with finding alternative components in order to maintain and keep manufacturing product. That number has declined significantly and on top of -- and we've been able to redirect the R&D resources to focus on, first of all, on development of new products and cost reduction in parallel to adding more R&D resources globally.

所以肯定有一部分——我無法準確量化，但這是去年的高峰期，我們建議大約 50% 的研發組織正在尋找替代組件，以維持並保持製造產品。這個數字已經顯著下降，而且我們已經能夠將研發資源重新定向到首先關注新產品的開發和降低成本，同時在全球範圍內增加更多的研發資源。

I don't want to give the exact ratio because -- just because I don't remember it right now in terms of quantities and ratios, but there's definitely been a change in that regard. Typically, cycles for cost reduction, are a few quarter quarters long until we implement the changes and then put out initial units for qualification.

我不想給出確切的比例，因為 - 只是因為我現在不記得數量和比例，但在這方面肯定有變化。通常，降低成本的周期是幾個季度，直到我們實施變更，然後推出初始單位進行資格認證。

So usually, that type of effort translates to actual cost reduction in the production line, probably in the range of 2 to 3 quarters after we actually put the R&D resources on it.

所以通常，這種努力轉化為生產線的實際成本降低，可能在我們實際投入研發資源後的 2 到 3 個季度內。

Does that answer the question, Colin?

這能回答問題嗎，科林？

Yes. It sure does. And then looking at the battery production. Obviously, there's been a lot of them in and around raw materials. Can you talk a little bit about what your supply chain looks like in terms of pricing and how that's trending here over the next several quarters?

是的。它確實如此。然後看電池生產。顯然，原材料中和周圍有很多。您能否談談您的供應鏈在定價方面的情況以及未來幾個季度的趨勢如何？

And how much of that those input prices you've been able to pass on in some of your forward contracts and models with some of these customers?

在與其中一些客戶的一些遠期合同和模型中，您能夠傳遞多少這些投入價格？

Sure. So when it comes to the battery, we have basically 2 streams for the battery cells. One is the agreement that we have with Samsung and the other 1 with the second player that we cannot disclose. In both cases, as is the case, by the way, in all very major battery supplies, there is a dynamic where the cost of the battery cell is following the ability or actually the price, the index of raw materials used by the various manufacturers. And therefore, it's a very technical process where at the end of every quarter, there is an adjustment of the price of the battery sales based on the changes in the various raw materials that are comprising it.

當然。所以說到電池，我們基本上有 2 個電池單元流。一個是我們與三星達成的協議，另一個是與我們不能透露的第二個播放器的協議。在這兩種情況下，順便說一下，在所有非常主要的電池供應商中，電池單元的成本都遵循能力或實際價格，即各個製造商使用的原材料指數.因此，這是一個非常技術性的過程，在每個季度末，都會根據構成電池的各種原材料的變化對電池銷售價格進行調整。

On top of this, there are, of course, all of the elements related to the mechanical parts and manufacturing. And here, in general, the bigger amounts are and the bigger the volumes are, and you see economies of scale getting a little bit more of a buying power when buying those. The other element that we need to take into account is the fact that we are, of course, ramping Sella 2. And once we will have our own battery manufacturing, then the cost of our products will be tied again to the actual costs related to the material manufacturers, not the cell manufacturers anymore, but actually the material manufacturers.

除此之外，當然還有與機械零件和製造相關的所有元素。在這裡，一般來說，數量越大，數量越大，你會看到規模經濟在購買這些產品時獲得了更多的購買力。我們需要考慮的另一個因素是，我們當然正在逐步推出 Sella 2。一旦我們擁有自己的電池製造，那麼我們產品的成本將再次與相關的實際成本掛鉤材料製造商，不再是電池製造商，而是材料製造商。

And here, the agreements that we have are following again price indices. In general, what we see right now is that indexes related to the materials that are making batteries are generally moving down, although not yet at the level that we used to see before. So this is the dynamic that we see right now. And we believe that as we grow, we will be able to take more advantages given our economies of scale here.

在這裡，我們達成的協議再次遵循價格指數。總的來說，我們現在看到的是與製造電池的材料相關的指數普遍下降，儘管還沒有達到我們之前看到的水平。所以這就是我們現在看到的動態。我們相信，隨著我們的成長，鑑於我們這裡的規模經濟，我們將能夠利用更多優勢。

We'll move next to Philip Shen with ROTH MKM.

我們將與 ROTH MKM 一起搬到 Philip Shen 旁邊。

Congrats on the strong results. First question here is on pricing as a follow-up. Our checks with a bunch of your customers in the U.S. suggest the Home Hub inverter pricing may have been lowered by 10-ish percent effective May 1 in the U.S. Can you talk about that at all? Is it true? And how do you expect pricing in the U.S. trend? You still are guiding really strong margins in spite of this, if true.

祝賀你取得了優異的成績。這裡的第一個問題是定價作為後續行動。我們對您在美國的許多客戶進行的檢查表明，自 5 月 1 日起，美國的 Home Hub 逆變器價格可能已降低 10% 左右。您能談談嗎？是真的嗎？您如何看待美國趨勢的定價？儘管如此，如果這是真的，你仍然在指導非常強勁的利潤率。

And also, we were in touch with a European distributor recently, and they're seeing more and more availability of inverters. And I think Zvi, you were just talking about your -- you're hitting less on the availability of inverters. But curious to see if you can talk about pricing as well in Europe because they're expecting and looking for a price reduction on that continent as well. So thanks for the additional questions on pricing here.

而且，我們最近與一家歐洲經銷商取得了聯繫，他們看到越來越多的逆變器可供使用。我認為 Zvi，你只是在談論你的——你對逆變器可用性的影響越來越小。但是很想知道您是否也可以談論歐洲的定價，因為他們也期待並尋求歐洲大陸的降價。因此，感謝您提出有關定價的其他問題。

Yes. So starting from the U.S., so indeed in the U.S., we did repricing of the single-phase offering in order to encourage usage and what the market needs of the energy hub that leads to the easier attachment of batteries later on. So -- it is the -- in effect, it's more expensive than the normal inverter. And on some of the models is slightly lower than it was it was prior -- the overall effect is actually a price increase, and we think it will improve or for sure, not hamper the bottom line.

是的。因此，從美國開始，實際上在美國，我們對單相產品進行了重新定價，以鼓勵使用以及能源中心的市場需求，從而使以後更容易連接電池。所以 - 它是 - 實際上，它比普通逆變器更貴。在某些型號上，價格略低於之前的水平——整體效果實際上是價格上漲，我們認為它會有所改善，或者肯定不會妨礙底線。

In terms of the dynamic in Europe, yes, as I mentioned, it's back or in a mode of competitive environment. As you know, in Europe, some of the elements that I discussed before in terms of the importance of software solutions and energy management component is becoming a very critical differentiating factor between technologies and alternatives.

就歐洲的動態而言，是的，正如我提到的，它又回來了，或者處於競爭環境的模式中。如您所知，在歐洲，我之前在軟件解決方案和能源管理組件的重要性方面討論的一些要素正在成為技術和替代方案之間非常關鍵的區別因素。

So it continues to be [technology] driven type of application. And that's, among other reasons, why at this point, at least, we don't have a plan for any type of broad-based price reductions in Europe.

因此，它仍然是 [技術] 驅動的應用程序類型。這就是為什麼至少在這一點上我們沒有在歐洲進行任何類型的廣泛降價的計劃的原因之一。

Okay. Great. And then in terms of the channel inventory, can you talk us through what it might look like in the U.S. Our check suggest it might have been -- might be a little bit heavy in the U.S. whereas in Europe, it seems like you might be still tight there. Do you expect massive destocking at some point? Just talk us through what you're seeing with the channel?

好的。偉大的。然後就渠道庫存而言，你能告訴我們它在美國的情況嗎？我們的檢查表明它可能 - 在美國可能有點沉重，而在歐洲，你似乎可能是那裡仍然很緊。您預計在某個時候會出現大規模去庫存嗎？告訴我們您在頻道中看到的內容？

So general feel, I think that you're -- the notion here is right. We do see higher levels of inventory in the channels when it comes to what we call weeks or days of inventory on hand compared to Europe, where I would say that U.S., I would say, is relatively okay when it comes to levels of inventory. But because of the fact that some of the sales are a little bit lower, then you see that the weeks of inventory in hand are a little bit higher. And in Europe, we actually see low inventory days on hand.

總的來說，我認為你是——這裡的想法是正確的。與歐洲相比，我們確實看到渠道中的庫存水平更高，我們稱之為周或天庫存，我想說美國在庫存水平方面相對還可以。但由於部分銷售額略低，因此您會看到手頭庫存週數略高。在歐洲，我們實際上看到手頭的庫存天數很低。

This is, by the way, the dynamic that we said related to the higher inventories in the U.S. are actually more related to our single-phase inverter because wherever we are looking at our 3-phase inverter inventory in the channel, this is a place that we see almost across the board in C&I that we see a relatively lower levels of inventory.

順便說一句，我們所說的與美國較高庫存相關的動態實際上與我們的單相逆變器更相關，因為無論我們在渠道中查看我們的三相逆變器庫存，這是一個地方我們在 C&I 幾乎全面看到庫存水平相對較低。

But on that regard, that's something that I think more important to mention, and this is that when we are looking at Europe, for example, not only that we see that the level of inventory is relatively not high, but it's actually that we see record sellout of products coming from the distribution channels.

但在這方面，我認為更重要的是要提到這一點，這就是當我們看歐洲時，例如，我們不僅看到庫存水平相對不高，而且實際上我們看到記錄來自分銷渠道的產品銷售情況。

So here again, it's a kind of a double impact, not only that you don't have a very high level, it's actually being sold much quicker. And this is something that, at least in the U.S. right now, we see, again, relatively normal levels, but the sellout is a little bit lower.

所以這裡又是一種雙重影響，不僅你沒有很高的水平，它實際上被賣得更快。至少現在在美國，我們再次看到相對正常的水平，但銷售量略低一些。

And we'll move next to Mark Strouse with JPMorgan.

我們將在摩根大通的 Mark Strouse 旁邊移動。

I wanted to talk about the C&I business. We talked about this on the last call, the amount of backlog that you have, given your visibility for the rest of this year. I'm just at a high level, though, curious some of the weakness that we're hearing about kind of on a macro perspective from the -- just the general commercial real estate market. Is that starting to impact your pipeline funnel of opportunities that might manifest in 2024 or later?

我想談談 C&I 業務。考慮到今年剩餘時間的可見性，我們在上次電話會議上談到了您的積壓數量。不過，我只是處於高水平，對我們從宏觀角度聽到的一些弱點感到好奇——只是一般商業房地產市場。這是否會開始影響您可能在 2024 年或之後出現的機會漏斗？

No. The backlog for C&I is very strong for the remaining of the year. And as I mentioned in the remarks, we are still behind in terms of being able to increase capacity to meet it. And this is true globally. There might be here and there some markets that are slowing down a little bit with other markets that are accelerating.

不會。在今年剩餘時間裡，C&I 的積壓情況非常嚴重。正如我在評論中提到的，我們在提高產能以滿足它方面仍然落後。這在全球範圍內都是如此。可能到處都有一些市場正在放緩，而其他市場正在加速。

So overall, as also when you -- the reports that I seen regarding the expectation for the year-over-year growth in C&I in the U.S. market is expected to be higher than that of the residential. And this is a phenomenon that's (inaudible) of our knowledge we're seeing globally for the same combination of reasons that I mentioned, the higher power prices and the ESG motivations.

所以總的來說，當你——我看到的關於美國市場 C&I 同比增長預期的報告預計將高於住宅市場。這是我們在全球範圍內看到的（聽不清）現象，原因與我提到的相同，即更高的電價和 ESG 動機。

And we're engaged in several portfolios of multinational companies are installing systems in several countries on their facilities, be it the warehouses, manufacturing sites, et cetera, for ESG purposes. So as far as we see the C&I market is robust, and our backlog is very strong.

我們參與了多個跨國公司的投資組合，正在多個國家/地區的設施上安裝系統，無論是倉庫、製造場所等，以用於 ESG 目的。因此，就我們所見，C&I 市場強勁，我們的積壓訂單非常多。

Very clear. And then I wanted to come back to the comments about U.S. manufacturing in 3Q. Are you able to provide more color there as far as where you are in that process as far as building up tooling, whatever it might be? And then is there any initial color that you can give us as far as kind of quantifying what that output might look like in 3Q and kind of what the expectation is for that to ramp over the next few quarters?

非常清楚。然後我想回到對第三季度美國製造業的評論。就構建工具的過程而言，您是否能夠提供更多顏色，無論它是什麼？然後，您是否可以給我們提供任何初始顏色，以量化第三季度的產出情況，以及對未來幾個季度的預期增長情況？

Sure. So first of all, as we mentioned before, our approach to U.S. manufacturing is divided between first starting with the contract manufacturer in order to be very fast to the market and to be able to capture U.S. manufacturing as soon as possible. So since we are already, of course, engaged with the contract manufacturers. We already have teams that were trained on how to make our products.

當然。因此，首先，正如我們之前提到的，我們對美國製造業的方法分為首先從合同製造商開始，以便快速進入市場，並能夠盡快佔領美國製造業。因此，既然我們已經與合同製造商進行了接觸。我們已經有團隊接受過如何製造我們產品的培訓。

One of the bigger benefits that we have by having Sella 1 is that when we have a new factory that's supposed to ramp up, we can bring people from that factory to Sella 1 to learn how to make our products, how to build them and how to basically consider the line. This is something that was already done, and I can tell you that we are in process of getting equipment to start manufacturing in Q3, starting to build, training the employees around it.

擁有 Sella 1 帶來的更大好處之一是，當我們有一家新工廠需要擴產時，我們可以將那家工廠的員工帶到 Sella 1，學習如何製造我們的產品，如何構建它們以及如何基本考慮就行了。這是已經完成的事情，我可以告訴你，我們正在讓設備在第三季度開始製造，開始建造，並圍繞它培訓員工。

In Q3, still, we're going to see relatively small amounts. And we believe that within 3 to 4 quarters, the contract manufacturer capacity will be built. One of the reasons for this process is because we want to make sure that the quality of the manufacturing also is at the right level, and we want to make sure that we take the right time to do this.

在第三季度，我們仍然會看到相對較小的數量。我們相信在 3 到 4 個季度內，合同製造商的產能將得到建立。採用此過程的原因之一是因為我們要確保製造質量也處於正確的水平，並且我們要確保我們在正確的時間進行此操作。

At the same time, we are working on our own factory that will be also built and operated by us. We're already in advanced negotiations related to the location of this place. And here, as mentioned, since it will require a little bit more innovation it is something that will take us, I believe, at least a year to start having products coming out from the end of Q3 this year. So I believe that it's going to be in the second half of next year.

同時，我們正在建設自己的工廠，該工廠也將由我們建造和運營。我們已經在就這個地方的位置進行高級談判。在這裡，如前所述，由於它需要更多的創新，我相信我們至少需要一年的時間才能從今年第三季度末開始推出產品。所以我相信它會在明年下半年。

In general, we intend to have all products coming to the United States, to be manufactured in the United States. So here I think it's more related to the pool from the market rather than our capabilities, we will make sure that our access that are -- we will have excess capacity or enough capacity to cover any demand that comes from the U.S. once we have these 2 factories ramped up.

總的來說，我們打算將所有產品運到美國，在美國製造。因此，我認為這更多地與市場資源有關，而不是我們的能力，我們將確保我們的訪問權限是——一旦我們擁有這些，我們將有過剩的能力或足夠的能力來滿足來自美國的任何需求2家工廠增產。

And we'll move next to Michael Blum with Wells Fargo.

我們將與富國銀行一起搬到 Michael Blum 旁邊。

I wanted to go back to batteries for a minute. It looks like shipments are still not quite taking off. And I just wondered if you could talk about where attach rates are trending both in the U.S. and Rest of World. And should we expect battery shipments to be somewhat constrained until the 3-phase inverter supply catches up with demand.

我想回到電池上一分鐘。看起來出貨量還沒有完全起飛。我只是想知道你是否可以談談美國和世界其他地區的附加率趨勢。在三相逆變器供應趕上需求之前，我們是否應該預期電池出貨量會受到一定程度的限制。

Yes. So in the U.S., the attach rate are growing -- let's put it, growing very slowly. We expect it to shift to NEM 3.0 and as people begin to understand how to sell it. And for the reasons that I mentioned during the comments before, we expect the attach rates to gradually increase in the next quarters. In regards to Europe, this is as Ronen referenced in his comments that we're seeing very strong demand for the batteries and actually, the constraint is the availability of our inverters.

是的。所以在美國，附加率正在增長——讓我們這麼說吧，增長非常緩慢。我們預計它會轉向 NEM 3.0，並且隨著人們開始了解如何出售它。由於我之前在評論中提到的原因，我們預計未來幾個季度的附加率將逐漸增加。關於歐洲，正如 Ronen 在他的評論中提到的那樣，我們看到對電池的需求非常強勁，實際上，限制是我們逆變器的可用性。

So we're trying to ramp in further shipment as much as possible because without an inverter, people don't have what to do with the battery. So as we continue to increase our capacity on the inverters, we believe that the volumes of batteries would increase as well. So generally speaking, we are expecting, and Ronen also referred to that in the comments about the model and the impact of -- on the margin that the ratio of batteries in our overall shipments will be increasing in the coming quarters.

因此，我們正在嘗試盡可能多地增加出貨量，因為如果沒有逆變器，人們就無法處理電池。因此，隨著我們繼續增加逆變器的容量，我們相信電池的體積也會增加。因此，總的來說，我們預計，Ronen 在關於模型及其影響的評論中也提到了這一點——在未來幾個季度，電池在我們整體出貨量中的比例將會增加。

Great. And then I wanted to just go back to your prepared remarks -- comments about Rest of World growth opportunities mainly the countries outside of Europe. Are those markets primarily residential? Are you also seeing strong demand for C&I? And any color you can provide there would be really helpful.

偉大的。然後我想回到你準備好的評論——關於世界其他地區增長機會的評論，主要是歐洲以外的國家。這些市場主要是住宅市場嗎？您是否也看到對 C&I 的強勁需求？您可以提供的任何顏色都會非常有幫助。

So most of those markets are actually much more tilted to the C&I than to residential. Among the markets that I mentioned, the strongest residential markets are Australia and Israel is a good residential market and South Africa is evolving as a reasonable residential market as well as Brazil.

因此，這些市場中的大多數實際上更傾向於 C&I 而不是住宅。在我提到的市場中，最強勁的住宅市場是澳大利亞，以色列是一個很好的住宅市場，南非和巴西正在發展成為一個合理的住宅市場。

But the C&I portion in almost all of these markets and in particular, in the Asian markets like Taiwan and Thailand, places like that are heavily tilted towards C&I, but they are sizable markets. I don't remember right now for each of these markets, but they're in the hundred megawatts, if not gigawatt scale for many of these countries in terms of the size of the market overall. And like I say, C&I tilted in many cases.

但幾乎所有這些市場的 C&I 部分，特別是在台灣和泰國等亞洲市場，這些地方嚴重傾向於 C&I，但它們是相當大的市場。我現在不記得這些市場中的每一個，但就整體市場規模而言，對於這些國家中的許多國家來說，即使不是千兆瓦級，它們也處於百兆瓦級。就像我說的，C&I 在很多情況下是傾斜的。

And we'll move next to Corinne Blanchard with Deutsche Bank.

我們將搬到德意志銀行的 Corinne Blanchard 身邊。

The first question, I want to go back on the European market and trying to get a sense on expectation in 2Q and 3Q versus the first quarter? Can we expect the same growth in the same cadence there?

第一個問題，我想回到歐洲市場並試圖了解第二季度和第三季度與第一季度的預期？我們可以期望在那里以相同的節奏實現相同的增長嗎？

So without getting into specifically what growth rate we expect in each market and how that fits into the guidance. As I commented, we see continued strength in the European market. for both applications of residential and commercial. And in both cases, most of the European residential market, not all of it, but a lot of it is 3-phase based. And obviously, all of the C&I market is 3-phase based.

因此，無需具體說明我們對每個市場的預期增長率以及如何將其納入指導。正如我評論的那樣，我們看到歐洲市場持續走強。適用於住宅和商業應用。在這兩種情況下，大部分歐洲住宅市場，不是全部，但很多都是三相的。顯然，所有 C&I 市場都是基於三相的。

So there, our growth is less dependent on demand. It's more dependent on our ramp of manufacturing, which I mentioned, will take us another couple of quarters until we're at a full scale of matching the supply to the demand. But right now, we continue to see the European market strong, and we are sitting on a robust backlog that we intend to deliver between now and the end of the year.

因此，我們的增長對需求的依賴程度較低。它更多地取決於我提到的製造業的增長，這將花費我們另外幾個季度的時間，直到我們全面實現供應與需求的匹配。但現在，我們繼續看到歐洲市場強勁，我們正坐擁大量積壓訂單，我們打算從現在到今年年底交付這些訂單。

Okay. And then my follow-up is a similar question more from the residential versus commercial megawatt hour shipped. You had -- I believe you had a 7% or so decrease quarter-over-quarter for the residential one. Do you -- how should we think about it going forward? And I believe the slowdown is mostly driven by the U.S. Should we expect like flat number? Or do you expect further decrease in there?

好的。然後我的後續行動是一個類似的問題，更多來自住宅與商業兆瓦時的運輸。你有——我相信住宅的季度環比下降了 7% 左右。你 - 我們應該如何考慮它向前發展？而且我認為經濟放緩主要是由美國推動的。我們應該期待持平的數字嗎？或者你預計那裡會進一步下降嗎？

So again, I separate for a minute between the U.S. and in Europe. In Europe, the situation is more dependent on our supply and our intent is to continue and increase capacity of 3-phase residential inverters. So the outlook is for likely growth. In the U.S., the dynamic is more market related.

因此，我再次在美國和歐洲之間分開一分鐘。在歐洲，情況更多地取決於我們的供應，我們的意圖是繼續並增加三相住宅逆變器的容量。因此，前景是可能的增長。在美國，動態更多地與市場相關。

And as I mentioned in the remarks, we think that -- like it happens, by the way, in many markets where there is a significant change in regulation or in the financial atmosphere, it takes the market some time to adjust and to learn how to sell under this environment and how to install under this environment. So it's true for NEM 3.0 in California, and it true for the rest of the market and the interest rate.

正如我在評論中提到的那樣，我們認為 - 順便說一下，就像在監管或金融環境發生重大變化的許多市場中發生的那樣，市場需要一些時間來調整併了解如何在這個環境下銷售，在這個環境下如何安裝。因此，對於加利福尼亞州的 NEM 3.0 來說是這樣，對於其他市場和利率也是如此。

So how long it will take for the market to adjust? And is this the bottom level or -- and is it going to begin to increase? Or is it going to remain flat? I don't think we have a good specific indication on that. But as I mentioned, in terms of midterm, we feel that the dynamics are positive, both from solar adoption point of view and the ITC and everything around it and from our position and technology.

那麼市場調整需要多長時間？這是最低水平還是 - 它會開始增加嗎？還是會保持平穩？我認為我們對此沒有很好的具體指示。但正如我所提到的，就中期而言，無論是從太陽能採用的角度、ITC 及其周圍的一切，還是從我們的立場和技術來看，我們都認為動態是積極的。

And we'll move next to Julien Dumoulin-Smith from Bank of America.

接下來我們將請美國銀行的 Julien Dumoulin-Smith 發言。

This is Morgan Reid on for Julien. Can you walk through the moving pieces to get to the gross margin improvement quarter-over-quarter? What's coming from cost declines and price increases, FX benefits, shift in mix, things like that. Just curious to try to understand what's driving that.

這是朱利安的摩根里德。你能通過移動部分來了解季度環比的毛利率改善嗎？成本下降和價格上漲、外匯收益、組合轉變等等會帶來什麼。只是好奇地試圖了解是什麼驅動了它。

Sure. So first of all, again, without going into the numbers themselves because the amount of moving parts is growing. I would say that we divided to basically, I would say, 2 main areas. The first area is the difference between the price of the product that we are manufacturing the price that we're selling this is mostly related usually to currency changes and to mix changes.

當然。因此，首先，再一次，不要進入數字本身，因為移動部件的數量正在增加。我想說我們基本上分為兩個主要領域。第一個區域是我們製造的產品價格與我們銷售的價格之間的差異，這通常與貨幣變化和混合變化有關。

In these cases, the currency changes definitely helped because of the fact that the euro came back to a level of about $1.8, $1.9. And as we mentioned before, at euro of $1.10 per euro we're almost on par in margins when it comes to the United States. And therefore, of course, stronger euro is helping there.

在這些情況下，貨幣變化肯定有所幫助，因為歐元回到了大約 1.8、1.9 美元的水平。正如我們之前提到的，以每歐元 1.10 美元的價格計算，我們在美國的利潤率幾乎持平。因此，當然，強勢歐元對此有所幫助。

At the same time, we did see -- and I think that you see it in our numbers, our commercial products within the mix that are characterized with lower gross margin was substantially higher this quarter. So in that sense, the 2 phenomenas were relatively similar in size and not contributing or reducing dramatically the margin difference.

與此同時，我們確實看到 - 我認為你在我們的數字中看到了，本季度毛利率較低的組合中的商業產品大幅提高。因此，從這個意義上說，這兩種現像在規模上相對相似，不會顯著影響或減少利潤率差異。

Most of the improvement that we saw this quarter came from other elements that are not related to pricing or manufacturing costs, and these are all of the other costs related to the supply chain. So by definition, the more streamlined manufacturing we had the shipment costs that used to be elevated went down not yet to levels that they were before. So there's still a little bit of a room to grow there. And I think that it's evident in our margin for the next quarter.

我們在本季度看到的大部分改進來自與定價或製造成本無關的其他因素，這些都是與供應鏈相關的所有其他成本。因此，根據定義，我們擁有的製造流程越精簡，過去升高的運輸成本尚未下降到以前的水平。所以那裡還有一點成長空間。我認為這在我們下一季度的利潤率中很明顯。

And we also saw because of the fact that we have a very streamlined manufacturing, the fact that some of the charges that we used to get from our contract manufacturers did not exist this quarter because they were working at full steam, having all of the ships occupied. And that's where most of our, I would say, advantage came this year.

而且我們還看到，由於我們的製造非常精簡，我們過去從合同製造商那裡收取的一些費用在本季度不存在了，因為他們正在全速工作，擁有所有船舶佔據。我想說，這就是我們今年的大部分優勢所在。

As mentioned before, we are already getting close to where we see ourselves in our model from the various costs. And from now on, we expect that most of the changes will be related to the mix of the product. So definitely, more batteries would reduce the gross margin, even though, again, on operating profit margins, we are talking about an increase because of the operational leverage that they create. We still see some tailwinds that can help with some shipping and other manufacturing costs. And of course, the currency is always a mystery because we do not know how to project it. At least right now, it seems to be either stable or possibly favorable. But again, this is something that very much changes.

如前所述，我們已經從各種成本中接近我們在模型中看到的位置。從現在開始，我們預計大部分變化將與產品組合有關。因此，肯定的是，更多的電池會降低毛利率，儘管在營業利潤率方面，我們正在談論的是增加，因為它們創造了運營槓桿。我們仍然看到一些有利因素可以幫助降低一些運輸和其他製造成本。當然，貨幣總是一個謎，因為我們不知道如何預測它。至少現在，它似乎是穩定的或可能有利的。但同樣，這是非常變化的事情。

So in all aspects, I think that we're getting closer to where we want to be on a model. And I think that right now, the mix of the products will be the thing that will take most of the, I would call it, the driver -- driving forces when it comes to our gross margin.

所以在所有方面，我認為我們越來越接近我們想要在模型上的位置。而且我認為現在，產品組合將成為我們毛利率方面的大部分驅動力，我稱之為驅動力。

That's really helpful. And I guess you alluded to it earlier, the improvement in the operating margin kind of throughout the year. I know previously, you had given the sort of guidance of maybe like 20% to 22% operating margin towards the end of this year as we exit. I'm just curious how that's faring given sort of the stronger gross margin than maybe we had expected midyear here.

這真的很有幫助。我猜你之前提到過，全年營業利潤率都有所提高。我之前知道，在我們退出時，您曾在今年年底給出了 20% 至 22% 的營業利潤率指導。我只是很好奇，考慮到毛利率比我們年中預期的要高，情況如何。

So just curious if your operating margin expectations are changing at all, given the strength of the gross margin line and operating leverage still to pulled in here?

因此，考慮到毛利率線和經營槓桿的實力仍有待拉動，所以很好奇您的經營利潤率預期是否發生了變化？

Sure. So here, definitely, we continue to see the operating leverage. We've mentioned before that we expected to see our gross margins getting to the target levels by the end of Q2 and the operating profit margins are at the end of the year to exit the year. In that sense, we're already at 19.5% of operating profit margins on a consolidated level. And on a consolidated level, we said it will be between 19% to 20% on solar. We did say that we'll be 20% to 22%.

當然。所以在這裡，我們肯定會繼續看到運營槓桿。我們之前提到過，我們預計到第二季度末我們的毛利率將達到目標水平，而營業利潤率將在今年年底退出。從這個意義上說，我們已經達到綜合營業利潤率的 19.5%。在綜合層面上，我們說太陽能將在 19% 到 20% 之間。我們確實說過我們將達到 20% 到 22%。

And again, we're very close to this number. Again, we feel very comfortable as we guided before, that we'll exit the year with operating margins to be at the level that we've guided before as it relates to our financial model.

再一次，我們非常接近這個數字。同樣，我們對之前的指導感到非常滿意，我們將以營業利潤率結束這一年，達到我們之前指導的與我們的財務模型相關的水平。

(Operator Instructions) We'll move next to Kashy Harrison with Piper Sandler.

（操作員說明）我們將與 Piper Sandler 一起搬到 Kashy Harrison 旁邊。

So as your result of the operating performance was very robust in Q1. While we're seeing a significant amount of operating income in Q1 and Q2 guide, working capital was another big use of cash this quarter. And so maybe just can you provide some context on how you're thinking about working capital and maybe some of that conversion from income to operating cash throughout the year? And then maybe even just at a high level structurally, how you think about that conversion on a multiyear basis? And then I have a follow-up.

因此，由於您在第一季度的經營業績結果非常強勁。雖然我們在第一季度和第二季度指南中看到了大量的營業收入，但營運資金是本季度現金的另一大用途。因此，也許您能否提供一些背景信息，說明您如何考慮營運資金，以及全年從收入到營運現金的一些轉化？然後甚至可能只是在結構上的高層次上，你如何看待多年的轉換？然後我有一個後續行動。

Okay, sure. So first of all, usually, the 3 elements that are impacting dramatically the working capital is, of course, days sales outstanding when it comes to collections from our customers. Actually, this quarter, we -- our DSO decreased a little bit, which means that we did not see any major change.

好的，當然。因此，首先，通常，對營運資金產生巨大影響的 3 個要素當然是從我們的客戶那裡收集的天數。實際上，本季度，我們的 DSO 有所下降，這意味著我們沒有看到任何重大變化。

When it comes to customer to vendor payments, again, our terms have not changed significantly. The thing that changed significantly this quarter is actually related to our inventories that grew by about $150 million, and this is actually almost the missing cash from the formula that I will give you in a second.

同樣，對於客戶對供應商的付款，我們的條款沒有發生重大變化。本季度發生顯著變化的事情實際上與我們的庫存增加了大約 1.5 億美元有關，這實際上幾乎是我稍後會給你的公式中缺少的現金。

And this is related to the fact that based on our agreement with Samsung, we needed to buy battery cells up until the end of Q1 and pay for them while the batteries that are coming from these sales that are the single-phase batteries, mostly going to the United States, are simply being sold a little bit slower, given all of the aspects that Zvi mentioned before related to the U.S. market attachment rate and battery growth.

這與以下事實有關，根據我們與三星的協議，我們需要在第一季度末之前購買電池並支付費用，而來自這些銷售的電池是單相電池，大部分用於考慮到 Zvi 之前提到的與美國市場依附率和電池增長相關的所有方面，對美國的銷售速度稍微慢了一點。

And as a result, we find ourselves where at least in Q1, we're buying battery cells while we have less battery cells. And again, this is about $150 million of difference in our inventory. What we expect to see during this year is that since we've already bought all of these battery cells, we will start clearing them out and therefore, we will reverse this phenomenon.

結果，我們發現至少在第一季度，我們正在購買電池，而我們的電池卻很少。同樣，這與我們的存貨相差約 1.5 億美元。我們希望在今年看到的是，由於我們已經購買了所有這些電池，我們將開始清理它們，因此，我們將扭轉這種現象。

We expect to see on an annual basis at approximately 80% of our operating profit is turning into cash within the same period. And this is simply a result of the fact that we do see that our -- first of all, we're growing, which, of course, means that usually we are paying quicker than we collect. And secondly is the fact that we do see that, in general, our sales are more inclined towards the end of the quarter.

我們預計每年約有 80% 的營業利潤會在同一時期內變成現金。這僅僅是因為我們確實看到我們的 - 首先，我們正在成長，這當然意味著我們支付的速度通常比我們收款的速度快。其次，我們確實看到，總的來說，我們的銷售更傾向於本季度末。

And the result of this is that we believe that about 80% of operational profit will turn into cash on an annual basis. I think that this is something that didn't happen in Q1. So actually, in Q1 -- Q2 to Q3, we should see a little bit of a reversed situation where actually -- and especially in the other -- second half of the year where we're going to generate more than 80%. But in general, the number there we have is 80% conversion.

其結果是，我們認為每年約有 80% 的營業利潤將變成現金。我認為這是第一季度沒有發生的事情。所以實際上，在第一季度——第二季度到第三季度，我們應該看到一些相反的情況，實際上——尤其是在下半年——我們將產生超過 80% 的產量。但總的來說，我們那裡的數字是 80% 的轉化率。

And then for my second question, I was wondering if you could just maybe give us a bit more of a detailed update on the Sella 2 ramp process. When do you expect Sella 2 to achieve your targeted desired output level? When do you expect to start selling Sella 2 residential battery? Is there a possibility to maybe simply end up selling the cells if battery demand isn't where you'd like it to be? Just any sort of detailed update on Sella 2 would be great.

然後是我的第二個問題，我想知道你是否可以給我們提供更多關於 Sella 2 斜坡過程的詳細更新。您預計 Sella 2 何時達到您的目標輸出水平？您預計什麼時候開始銷售 Sella 2 家用電池？如果電池需求不是您想要的，是否有可能最終簡單地出售電池？任何關於 Sella 2 的詳細更新都會很棒。

Sure, gladly. So first of all, and I apologize for maybe a little bit of education not at the beginning. But when you're ramping a battery manufacturing factory, there's a process or a stage within the ramp-up that is called process utilization. You basically adjust various elements within the manufacturing process itself, like temperature, like a concentration of materials in the air, level of suction within vacuum chambers and even the flow of goods on the production floor, to the processes that you're using.

當然，很高興。所以首先，我為可能沒有在一開始就接受一點教育而道歉。但是，當您對電池製造工廠進行升級時，升級中有一個過程或一個階段，稱為過程利用率。您基本上可以調整製造過程中的各種元素，例如溫度、空氣中材料的濃度、真空室內的吸力水平，甚至是生產車間的貨物流動，以適應您正在使用的過程。

And this is exactly where we were in Q1. That means that at that time, we are consuming a little bit more materials because we're making a lot of test, and we're stabilizing the process. Not all of the materials can basically be used and therefore, the yield of the factory is not yet there. This is a process that's supposed to end sometimes within Q1, Q2 or actually it was Q1 and Q2 this year.

這正是我們在第一季度的位置。這意味著那時我們正在消耗更多的材料，因為我們正在進行大量測試，並且我們正在穩定流程。並不是所有的材料基本上都可以使用，因此，工廠的良品率還沒有。這個過程有時應該在第一季度、第二季度結束，或者實際上是今年第一季度和第二季度。

And at that time, we simply start to grow over time the manufacturing capacity by ramping and increasing the speed of movement of components within the manufacturing stations themselves. And this is what we expect to happen in the second half of this year.

那時，我們只是隨著時間的推移開始增加製造能力，方法是在製造站本身內增加和增加組件的移動速度。這就是我們預計今年下半年會發生的情況。

In general, the manufacturing capacity of Sella 2 is supposed to be 1.7 -- it's 2 gigawatt hour at the beginning because of yield, we expect it to be around 1.7 gigawatts. And we expect to get this to this level either by the end of the year or beginning of next year, simply because of the fact that you need to ramp.

總的來說，Sella 2 的製造能力應該是 1.7——一開始是 2 吉瓦時，因為產量，我們預計它會在 1.7 吉瓦左右。我們希望在今年年底或明年年初將其達到這個水平，這僅僅是因為您需要提高速度。

So what are going to be the usage. First of all, we need to remember that there is a business that is actually growing very nicely for us of the storage division itself. We are selling today within the storage division to outside customers both battery sales, their sales that they're later on using to make their own battery or battery pack. And we also sell ESS products that are going to applications that are not necessarily tied to solar and these are spinning reserve and other storage containers that you see in various places we sell in Australia, we sell in Asia.

那麼它的用途是什麼。首先，我們需要記住，存儲部門本身有一項業務實際上對我們來說增長得非常好。我們今天在存儲部門內向外部客戶銷售電池銷售，他們的銷售，他們後來用來製造自己的電池或電池組。我們還銷售 ESS 產品，這些產品將用於不一定與太陽能相關的應用程序，這些是旋轉備用和其他存儲容器，您在我們在澳大利亞銷售的各個地方看到，我們在亞洲銷售。

So first of all, there is a demand that is already fulfilled and that is already manufactured for from Sella 2 for these products. And actually, to date or at least until Sella 2 existed, we had limitation on our supply and not on the demand for these products. So this is something that we see, we expect to grow. And to your question, yes, if we don't take enough sales to our RSS, we believe that we can utilize Sella 2 for these kind of activities.

因此，首先，這些產品的需求已經滿足並且已經從 Sella 2 開始生產。實際上，迄今為止或至少在 Sella 2 存在之前，我們對這些產品的供應有限制，而不是對這些產品的需求。所以這是我們看到的，我們期望增長。對於您的問題，是的，如果我們的 RSS 銷售量不夠，我們相信我們可以利用 Sella 2 開展此類活動。

The second activity is to have our own residential storage system based on Sella 2 products. And as we've mentioned here, we're basically now in advanced stages of developing this product and we expect to have first manufacturing batches coming towards the end of this year. So all in all, we believe that throughout 2024, we will consume the majority, if not all of the Sella 2 cell production capability.

第二項活動是擁有我們自己的基於 Sella 2 產品的住宅存儲系統。正如我們在這裡提到的，我們現在基本上處於開發該產品的後期階段，我們預計將在今年年底推出第一批製造。因此，總而言之，我們相信在整個 2024 年，我們將消耗大部分（如果不是全部）Sella 2 電池的生產能力。

And we'll take our next question from Maheep Mandloi with Credit Suisse.

我們將接受瑞士信貸 Maheep Mandloi 的下一個問題。

This is Dave Benjamin on for Maheep. Just, I guess, a follow-up on that on 1 of your earlier responses, you mentioned that you foresee all U.S. products being manufactured in the U.S. But can you detail any of your thoughts on better manufacturing plans for the U.S.?

這是 Maheep 的 Dave Benjamin。只是，我想，在你之前的一個回復中，你提到你預見到所有美國產品都在美國製造。但是你能詳細說明你對美國更好的製造計劃的任何想法嗎？

So at this point, we're focused on getting inverters and optimizers manufactured in the United States, starting with residential and moving on to commercial. We're also waiting to understand clarifications around some of the regulations for batteries and we will -- and we'll make decisions once we understand in terms of potentially doing battery assembly in the U.S.

所以在這一點上，我們專注於在美國製造逆變器和優化器，從住宅開始，然後轉向商業。我們也在等待了解有關電池的一些法規的澄清，我們會 - 一旦我們了解可能在美國進行電池組裝，我們就會做出決定。

Obviously, cell manufacturing in the U.S. is a much more complex and long-term question. But right now, we're focusing on inverters and optimizers. And once we understand the regulations on batteries we'll decide if and how to assemble in the U.S.

顯然，美國的電池製造是一個更加複雜和長期的問題。但現在，我們專注於逆變器和優化器。一旦我們了解了有關電池的規定，我們將決定是否以及如何在美國組裝。

We'll take our next question from Joseph Osha with Guggenheim Partners.

我們將接受古根海姆合作夥伴約瑟夫奧沙的下一個問題。

Two questions. First, I appreciate sort of the operating margin target towards the end of this year. But thinking about the longer-term financial model, how quickly is OpEx likely to grow relative to the top line? How should we think about that in the out years?

兩個問題。首先，我很欣賞今年年底的營業利潤率目標。但考慮到長期財務模型，OpEx 相對於收入的增長速度可能有多快？在過去的幾年裡，我們應該如何考慮這一點？

So it's -- I'm not sure that I have a very good answer for it because I'll try to give you what moves this ratio because it's a little bit tricky. First of all, it's revenue growth. And as we've mentioned before, -- we do believe that in the next few years, we can grow at the rate of 20% to 30%.

所以它——我不確定我是否有一個很好的答案，因為我會試著告訴你是什麼改變了這個比率，因為它有點棘手。首先是收入增長。正如我們之前提到的，我們確實相信在未來幾年內，我們可以以 20% 到 30% 的速度增長。

We said it on the Analyst Day last year, we've actually exceeded it dramatically by growing 58% year-over-year. And I think that with the demand that we see, there are chances to maybe grow even faster than what we think this year as long as the demand is there, and we're able to cope and get the components needed to make sure that -- and the capacity to make sure that we need it. So potentially, it's high growth.

我們在去年的分析師日說過，我們實際上已經大幅超過它，同比增長 58%。而且我認為，根據我們看到的需求，只要需求存在，今年就有可能比我們想像的增長更快，而且我們能夠應對並獲得所需的組件，以確保 - - 以及確保我們需要它的能力。所以潛在的，它是高增長的。

The second part, of course, is how quickly we can ramp the expenses. And about 2/3 of our expenses today -- operating expenses are actually employee costs. These are salaries to employees. And when it comes to hiring employees, it's very hard to grow them at the pace of 30%, where you already have more than 5,200 employees working for you.

當然，第二部分是我們能夠以多快的速度增加開支。我們今天大約 2/3 的開支——運營開支實際上是員工成本。這些是給員工的工資。在招聘員工方面，很難以 30% 的速度增長他們，因為你已經有超過 5,200 名員工為你工作。

In R&D, this is in particular hard simply because of the fact that you need very skilled people -- and actually, in where we do R&D today, we've already attracted a lot of the talent. So you're actually going into a pool that is getting a little bit more shallow. So here, I would tell you that we would like to grow as much as we can. I think we do not believe that we can grow at 30% or more year-over-year.

在研發中，這尤其困難，因為您需要非常熟練的人才——實際上，在我們今天進行研發的地方，我們已經吸引了很多人才。所以你實際上進入了一個越來越淺的游泳池。所以在這裡，我想告訴你，我們希望盡可能地成長。我認為我們不相信我們可以同比增長 30% 或更多。

When it comes to sales and marketing and G&A, here we usually used to say that we would like to see sales and marketing and G&A growing in average, let's say, it's about 50% to 60% of the growth of revenue when we're looking at expenses. So that, by definition, of course, is widening the levels.

當談到銷售和營銷以及 G&A 時，我們通常在這裡說我們希望看到銷售和營銷以及 G&A 平均增長，比方說，當我們是時，它大約是收入增長的 50% 到 60%看著開支。因此，根據定義，當然是在擴大級別。

So these are the moving parts. We believe that, yes, we can, over time, go beyond this 22% of operating margins. But then again, we need to remember that we need to see also what's going to be the impact of batteries on the gross margin because this is the other part. So we feel confident that we can increase the operational lever. I think that we gave you what's moving. And we'll have to see again if and when we need to adjust the overall operating margin target.

所以這些是活動部件。我們相信，是的，隨著時間的推移，我們可以超過這 22% 的營業利潤率。但話又說回來，我們需要記住，我們還需要了解電池對毛利率的影響，因為這是另一部分。因此，我們有信心可以提高運營槓桿。我認為我們給了你感動。我們將不得不再次考慮是否以及何時需要調整整體營業利潤率目標。

Yes. That's very helpful. And then my follow-up, I guess I feel like we've kind of been tapdancing around this, so let me just ask directly, how long is it going to take until you have all of your U.S. bound commercial and residential inverters and optimizers, not batteries, but inverters and optimizers being made in the U.S.?

是的。這很有幫助。然後是我的後續行動，我想我覺得我們一直在圍繞這個踢踢踏舞，所以讓我直接問，在你擁有所有美國商業和住宅逆變器和優化器之前需要多長時間，不是電池，而是美國製造的逆變器和優化器？

Yes. Generally, we're targeting to try and have all of that capacity produced in the U.S. by the end of '24, beginning of '25.

是的。一般來說，我們的目標是嘗試在 24 年底、25 年初之前在美國生產所有這些產能。

And we'll move next to Ameet Thakkar with BMO Capital.

我們將與 BMO Capital 一起搬到 Ameet Thakkar 旁邊。

Just one little quick one for me. I was wondering, you guys talked a lot about kind of the NEM 3.0 transition. But during the quarter, do you guys have a rough sense for how much of your revenues kind of came from California?

對我來說只是一個小的快速。我想知道，你們談了很多關於 NEM 3.0 過渡的事情。但是在本季度，你們是否大致了解你們的收入中有多少來自加州？

No, not really. Now generally speaking, when we look at California, in our historical distribution of our revenue globally and then within the U.S. and between the segments of residential and commercial. So California by itself has never been a huge part of our ongoing business. But specifically in Q1, how much is related to California or even what are the installed rate of our products in California during the first quarter, we don't have that type of information in front of us right now.

不，不是真的。現在一般來說，當我們看看加利福尼亞州時，我們在全球範圍內的收入歷史分佈，然後在美國境內以及住宅和商業部門之間。因此，加利福尼亞本身從來都不是我們正在進行的業務的重要組成部分。但具體在第一季度，與加利福尼亞有多少相關，甚至第一季度我們產品在加利福尼亞的安裝率是多少，我們現在沒有此類信息。

And we'll move next to Steve Fleishman with Wolfe Research.

接下來我們將與 Wolfe Research 的 Steve Fleishman 一起討論。

Yes. You mentioned in the trends in the U.S. that one of them was the shift to TPO, and I'm curious kind of how much did you see that actually happening in Q1 versus kind of expecting it to happen the rest of '23, '24?

是的。你在美國的趨勢中提到其中之一是向 TPO 的轉變，我很好奇你看到第一季度實際發生的情況與預期它會在 23 年、24 年的剩餘時間發生多少？

It's definitely more of an expectation based on what you read and see in the market, it's not something that I can say that we've seen a clear indication in the first quarter. What is generally discussed and related to the IRA, advantages that go to the TPOs. And this has been a market segment that historically, we have been strong in and made some announcements recently and continue to strengthen and build those relationships further.

這絕對更多的是基於你在市場上所讀和所見的預期，我不能說我們在第一季度看到了明確的跡象。通常與 IRA 討論和相關的是 TPO 的優勢。從歷史上看，這是一個細分市場，我們一直很擅長並最近發布了一些公告，並繼續加強和進一步建立這些關係。

Okay. And then just on the C&I growth, maybe -- just -- could you just talk to more trends of how quickly that's growing relative to residential? And just -- is it something that -- any trends that you're seeing in C&I in particular relative to just overall economics of solar.

好的。然後就 C&I 的增長而言，也許——只是——你能談談更多關於它相對於住宅的增長速度有多快的趨勢嗎？只是——它是不是——你在 C&I 中看到的任何趨勢，特別是與太陽能整體經濟相關的趨勢。

Yes, actually, just related to some of the previous questions about the C&I market in Europe. So while we were discussing the other -- with the other questions, I pulled up some data. So an interesting data point will be that our point-of-sale data from our distribution channels in Europe grew from the fourth quarter to the first quarter by 40%. And from the third quarter to the fourth quarter of '22 by 25% almost.

是的，實際上，只是與之前有關歐洲工商業市場的一些問題有關。因此，當我們討論其他問題時，我提取了一些數據。因此，一個有趣的數據點是，我們來自歐洲分銷渠道的銷售點數據從第四季度到第一季度增長了 40%。並且從 22 年的第三季度到第四季度幾乎減少了 25%。

So we're -- these are the type of accelerating factors we're seeing for the growth of the C&I market in Europe. Again, this is a data point related to how much our distributors are selling to installers and EPCs in the C&I market in Europe. So the dynamic is positive and strong over there.

所以我們 - 這些是我們看到的歐洲 C&I 市場增長的加速因素類型。同樣，這是一個與我們的分銷商向歐洲 C&I 市場的安裝商和 EPC 銷售量相關的數據點。所以那裡的動態是積極和強大的。

Also, again, in the U.S. we didn't grow significantly quarter-over-quarter in megawatt shipments in C&I, but the general assessment in the market is that the expectation is for a stronger year-over-year growth in C&I in the U.S. market compared to residential.

同樣，在美國，我們的 C&I 兆瓦出貨量環比沒有顯著增長，但市場的普遍評估是，預期美國 C&I 的同比增長會更強勁。市場與住宅相比。

So when we look at the 3 geographies that we typically consider of U.S., Europe and Rest of World, we are seeing a momentum of accelerated growth for C&I. And it relates to everything that we discussed in terms of corporates, but as well as the broad adoptions and push.

因此，當我們審視我們通常考慮的美國、歐洲和世界其他地區的 3 個地區時，我們看到了 C&I 加速增長的勢頭。它涉及我們在企業方面討論的所有內容，但也涉及廣泛的採用和推動。

France just passed a legislation that mandate solar installations on car parks. And that regulation is being adopted by other European countries. So you also see a range of government legislations in different countries encouraging growth in the C&I market. So when we collect all of these indicators together, that's where we conclude that this market has good momentum and they're going to grow at a relatively fast rate.

法國剛剛通過了一項立法，要求在停車場安裝太陽能。該法規正在被其他歐洲國家採用。因此，您還會看到不同國家/地區的一系列政府立法鼓勵 C&I 市場的增長。因此，當我們將所有這些指標收集在一起時，我們就可以得出這個市場勢頭良好並且將以相對較快的速度增長的結論。

And it does appear that there are no further questions at this time. I would now like to turn it back to CEO, Zvi Lando.

現在看來確實沒有其他問題了。我現在想把它轉回首席執行官 Zvi Lando。

Thank you. So in summary, we are pleased with our results this quarter, which demonstrates the advantages of our strong position across diverse markets and applications. And so I want to thank you for joining us on our call today, and have a good evening.

謝謝。因此，總而言之，我們對本季度的業績感到滿意，這證明了我們在不同市場和應用領域的強勢地位的優勢。因此，我要感謝您今天加入我們的電話會議，祝您晚上愉快。

This does conclude today's program. Thank you for your participation. You may disconnect at any time, and have a wonderful evening.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接，度過一個美好的夜晚。