(SEDG) 2023 Q4 法說會逐字稿

Hello, and welcome to the SolarEdge Conference Call for the Fourth Quarter and Year Ended December 31, 2023. This call is being webcast live on the company's website at www.solaredge.com in the Investors section on the Events' Calendar page. 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.

您好，歡迎參加截至 2023 年 12 月 31 日的第四季和年度 SolarEdge 電話會議。本次電話會議將在公司網站 www.solaredge.com 活動日曆頁面投資者部分進行網路直播。本通話是 SolarEdge 的專有財產和版權，保留所有權利，未經 SolarEdge 明確書面同意，禁止錄製、複製或傳播本通話。您可以造訪 SolarEdge 投資者網站的活動日曆頁面，收聽本次電話會議的網路廣播重播。

I would now like to turn the call over to J.B. Lowe, Head of Investor Relations for SolarEdge. Please begin.

我現在想將電話轉給 SolarEdge 投資者關係主管 J.B. Lowe。請開始。

Thank you, and good afternoon. Thank you for joining us to discuss SolarEdge's operating results for the fourth quarter and full year ended December 31, 2023, as well as the company's outlook for the first quarter of 2024.

謝謝你，下午好。感謝您與我們一起討論 SolarEdge 截至 2023 年 12 月 31 日的第四季和全年營運業績，以及公司 2024 年第一季的展望。

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 Fourth quarter and full year ended December 31, 2023, Ronen will then review the financial results for the Fourth quarter and full year, followed by the company's outlook for the First quarter of 2024. We will then open the call for questions.

今天與我在一起的有執行長茲維·蘭多 (Zvi Lando)；和財務長 Ronen Faier。 Zvi 首先將簡要回顧截至 2023 年 12 月 31 日的第四季度和全年業績，然後 Ronen 將回顧第四季度和全年財務業績，然後是公司對 2024 年第一季的展望。然後我們將開始提問。

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, the slides posted on our website ahead of this call today and our filings with the SEC for a more complete description of such risks and uncertainties.

請注意，本次電話會議將包括前瞻性陳述，這些陳述涉及可能導致實際結果與管理階層目前預期有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、今天電話會議之前在我們網站上發布的幻燈片以及我們向 SEC 提交的文件，以更完整地描述此類風險和不確定性。

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 because we believe that they provide investors with the means of evaluating and understanding how the company's management evaluates the company's operating performance.

請注意，本簡報描述了某些非 GAAP 衡量標準，包括非 GAAP 淨利潤和非 GAAP 每股稀釋淨收益，這些衡量標準並非根據美國 GAAP 制定。本簡報中介紹了非公認會計準則衡量標準，因為我們相信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績效的方法。

Reconciliation of these measures can be found in our earnings release, presentation and SEC filings. These non-GAAP measures should not be considered in isolation from, as a substitute for, or superior to financial measures prepared in accordance with U.S. GAAP. Listeners who do not have a copy of the quarter ended December 31, 2023 press release or the supplemental material may obtain a copy by visiting the Investor Relations section of the company's website.

這些措施的協調可以在我們的收益發布、演示和 SEC 文件中找到。這些非公認會計原則措施不應孤立地考慮、替代或優於根據美國公認會計原則制定的財務措施。沒有截至 2023 年 12 月 31 日的季度新聞稿或補充資料副本的聽眾可以透過造訪公司網站的投資者關係部分取得副本。

Now I'll turn the call over to Zvi.

現在我將把電話轉給 Zvi。

Thank you, J.B. Good afternoon, and thank you all for joining us on our conference call today. Starting with highlights of our Fourth quarter results. We concluded the quarter with approximately $316 million in revenue. Revenues from our solar business were approximately $282 million, while revenues from our non-solar businesses were approximately $33 million. This quarter, we shipped 2.2 million power optimizers and 74,000 inverters. This quarter, we also shipped 133-megawatt hours of batteries.

謝謝 J.B. 下午好，謝謝大家參加今天的電話會議。首先是我們第四季業績的亮點。本季我們的營收約為 3.16 億美元。我們的太陽能業務收入約為 2.82 億美元，而非太陽能業務收入約為 3,300 萬美元。本季度，我們出貨了 220 萬個功率優化器和 74,000 個逆變器。本季度，我們也售出了 133 兆瓦時的電池。

As reflected in our Fourth quarter results and in the First quarter guidance released today, we continue to face challenges from general market dynamics as well as the inventory levels of our products in the channels due to the abrupt slowdown in demand in the second half of 2023. That said, we undershipped end market demand by approximately $200 million during the fourth quarter.

正如我們第四季度業績和今天發布的第一季度指引所反映的，由於 2023 年下半年需求突然放緩，我們繼續面臨總體市場動態以及渠道中產品庫存水平的挑戰也就是說，第四季度我們的出貨量比終端市場需求少了約2 億美元。

As we did on our last earnings call, we will share details of fourth quarter sell-through data in several of our major regions and end markets and provide an update on our outlook for the normalization of inventory levels and return to revenue growth.

正如我們在上次財報電話會議上所做的那樣，我們將分享我們幾個主要地區和終端市場的第四季度銷售數據的詳細信息，並提供我們對庫存水平正常化和恢復收入增長的展望的最新資訊。

Starting in Europe. Following the unprecedented surge in demand for solar and storage products seen in 2022 and early 2023, the recent combination of increased product availability and an unforeseen tapering of demand has led to elevated inventory levels across Europe.

從歐洲開始。繼 2022 年和 2023 年初太陽能和儲存產品需求出現前所未有的激增之後，最近產品供應量的增加和需求的意外減少導致整個歐洲的庫存水準上升。

As it relates to demand across our residential products, sell-through on a dollar basis in Europe in the Fourth quarter was down approximately 35% quarter-over-quarter. Sell-through of our residential inverters and optimizers was down 39%, while sell-through of our residential batteries was down 16%.

由於這與我們住宅產品的需求有關，第四季度歐洲的美元銷售量較上季下降了約 35%。我們的住宅逆變器和優化器的銷量下降了 39%，而住宅電池的銷量下降了 16%。

This decline from the third quarter to the fourth quarter is more pronounced than the 10% to 15% seasonal decline we typically see in Europe in the fourth quarter, largely due to early onset of winter, combined with the market dynamics in Europe, associated with high interest rates and regulatory issues and uncertainties in some countries.

第三季到第四季的下降比我們在歐洲第四季通常看到的 10% 到 15% 的季節性下降更為明顯，這主要是由於冬季提前到來，再加上歐洲的市場動態，一些國家的高利率以及監管問題和不確定性。

Looking past the winter season, we expect a more positive environment in the European residential market. In Germany, regulatory policy remains quite favorable despite the recent headline news about renewable subsidy cuts, which do not impact residential solar. In fact, a portion of the subsidies that were eliminated were caps on electricity prices that were put in place to protect the consumers from soaring energy costs seen in 2022. The elimination of these caps is expected to result in higher electricity prices for the German consumer in 2024, improving the return on investment for solar installations.

展望冬季，我們預期歐洲住宅市場的環境將更加積極。在德國，儘管最近出現了有關再生能源補貼削減的頭條新聞，但監管政策仍然相當有利，這不會影響住宅太陽能。事實上，取消的部分補貼是電價上限，旨在保護消費者免受 2022 年能源成本飆升的影響。取消這些上限預計將導致德國消費者的電價上漲到2024年，提高太陽能裝置的投資回報率。

In Austria, the fourth quarter was abnormally weak as the market paused in anticipation of the elimination of the solar VAT tax, which came into effect on January 1 of this year. We expect this market to accelerate in the coming quarters now that customers can benefit from lower cost solar.

在奧地利，第四季度異常疲軟，因為市場預期今年 1 月 1 日生效的太陽能增值稅將被取消。我們預計該市場將在未來幾季加速發展，因為客戶可以從成本較低的太陽能中受益。

Moving to the Netherlands. Following the first half of 2023 that saw installation rates nearly 50% above 2022 levels, the market by the fourth quarter fell more than 50% from peak levels due to uncertainty around the Dutch election and potential policy changes in net metering. While the recent decision by the Dutch Senate to keep net metering in place for the foreseeable future, relieves some of the uncertainty in the market, questions remain as to the eventual policy around net metering. Therefore, while we believe the market will likely react positively, it remains to be seen if it will return to 2022 levels.

搬到荷蘭。繼 2023 年上半年安裝率比 2022 年水準高出近 50% 後，由於荷蘭大選的不確定性和淨計量方面潛在的政策變化，到第四季度市場較峰值水準下降了 50% 以上。儘管荷蘭參議院最近決定在可預見的未來保持淨計量，緩解了市場的一些不確定性，但圍繞淨計量的最終政策仍然存在疑問。因此，雖然我們認為市場可能會做出積極反應，但是否會回到 2022 年的水平仍有待觀察。

This decision, however, will slow down the transition of the Netherlands to a battery market. We are well positioned for a solar-only Netherlands market as well as for the transition to battery and self-consumption that will take place in a few years' time.

然而，這項決定將減緩荷蘭向電池市場的轉型。我們已經為純太陽能市場以及幾年後向電池和自用能源的過渡做好了準備。

I will have more to say on the specific products that we have introduced to capitalize on our market-leading position in the Netherlands in a moment. Considering these country-specific dynamics and typical seasonal patterns, we think European residential installations will bottom in the first quarter and improve thereafter.

稍後我將詳細介紹我們為利用我們在荷蘭市場領先地位而推出的具體產品。考慮到這些國家特定的動態和典型的季節性模式，我們認為歐洲住宅安裝量將在第一季觸底，然後有所改善。

Moving to our European commercial business. Sell-through in the fourth quarter was down approximately 40% quarter-over-quarter. The European commercial market was down in the second half of 2023 for similar reasons as the market as a whole. We are more optimistic about the potential growth of the commercial market due to seasonality, the expected rise in electricity prices as well as regulatory support for both Agri-PV, renewable energy communities and solar on multi-dwelling units or MDUs, in certain countries on the continent.

轉向我們的歐洲商業業務。第四季的銷量較上季下降約 40%。歐洲商業市場在 2023 年下半年下滑，原因與整個市場類似。由於季節性、電價的預期上漲以及某些國家對農業光伏、可再生能源社區和多住宅單元或 MDU 太陽能的監管支持，我們對商業市場的潛在增長更加樂觀。大陸。

Moving to the U.S. residential market. Dynamics here are relatively unchanged from what we witnessed in the second half of 2023, namely a significant slowdown in installations in California due to the rollover of NEM 2.0.and continued slow growth in the uptake of NEM 3.0 and in the rest of the country, slowness in markets with lower electricity prices.

轉向美國住宅市場。這裡的動態與我們在 2023 年下半年看到的情況相對沒有變化，即由於 NEM 2.0 的延期，加州的安裝量顯著放緩。而 NEM 3.0 和該國其他地區的採用量持續緩慢增長，電價較低，市場成長緩慢。

Sell-through of our residential products in the U.S. in the fourth quarter was down 8%, with inverter and optimizer sell-through down 12% and battery sell-through up 43% as more customers realize the benefit of our DC-coupled storage architecture.

隨著越來越多的客戶認識到我們的直流耦合儲存架構的優勢，第四季度我們在美國的住宅產品銷量下降了8%，其中逆變器和優化器銷量下降了12%，電池銷量成長了43% 。

We do not expect significant changes in the residential market dynamics in the U.S. until such time as interest rates decline. In addition, the market should improve as installers are able to benefit from the various incentives offered by the IRA. The commercial market in the U.S. continues to be the most positive segment from a growth perspective. In fact, commercial sell-through in the U.S. was up 22% quarter-over-quarter to hit a record high.

我們預計，在利率下降之前，美國住宅市場動態不會發生重大變化。此外，由於安裝商能夠從 IRA 提供的各種激勵措施中受益，市場應該會有所改善。從成長的角度來看，美國的商業市場仍然是最積極的部分。事實上，美國的商業銷量較上月成長 22%，創下歷史新高。

Given the continued drive towards Net Zero carbon emissions by enterprises, our new product introductions, which serve broader portions of this market and the expected benefits from the availability of our IRA eligible products, we expect a positive 2024 for the U.S. C&I market as a whole, and for us as a leader in this market.

鑑於企業持續推動淨零碳排放、我們推出的新產品服務於該市場更廣泛的部分，以及我們的 IRA 合格產品的可用性的預期收益，我們預計整個美國工商業市場將在 2024 年實現積極增長，以及我們作為這個市場的領導者。

Moving to the rest of the world. We do not see dramatic shifts in overall revenue over the next several quarters outside of typical seasonality. We continue to see good potential in Australia, Taiwan and Thailand, where a rapid shutdown requirements for commercial rooftops was recently put in place.

搬到世界其他地方。除了典型的季節性因素外，我們認為未來幾季的整體收入不會發生巨大變化。我們繼續看到澳洲、台灣和泰國的良好潛力，這些國家最近推出了商業屋頂快速關閉的要求。

Moving now to our current expectation for the inventory clearing pace. In the fourth quarter, sell-through from our distributor customers was slightly below $500 million indicating that we undership demand by approximately $200 million.

現在轉向我們目前對庫存清理速度的預期。第四季度，我們經銷商客戶的銷售額略低於 5 億美元，顯示我們的出貨量不足約 2 億美元。

Considering the market dynamics that we have discussed as well as normal seasonality patterns, we expect to reach an underlying business run rate of $600 million to $650 million in the second half of the year. Our expectation for the first quarter is that sell-through should be flat to slightly down versus the fourth quarter, meaning we expect to undership demand in the first quarter by approximately $250 million to $300 million.

考慮到我們已經討論過的市場動態以及正常的季節性模式，我們預計下半年的基本業務運作率將達到 6 億至 6.5 億美元。我們對第一季的預期是，銷售量應與第四季持平或略有下降，這意味著我們預計第一季的需求將減少約 2.5 億至 3 億美元。

Looking ahead, we expect underlying demand to improve in the second and third quarter, given typical seasonal improvements and market dynamics discussed earlier. Therefore, we expect to undership less in each successive quarter after Q1 until inventory in the channels have normalized by year-end.

展望未來，鑑於典型的季節性改善和前面討論的市場動態，我們預計第二季和第三季的潛在需求將有所改善。因此，我們預計第一季之後每季的出貨量都會減少，直到年底通路庫存恢復正常。

With our expectations on reduced revenue levels over the course of 2024, we have made and continue to implement several measures to align our cost structure with a projected business outlook, including a 16% reduction in our workforce that we announced last month, closure or capacity reductions across our manufacturing base and exiting from certain lines of business.

鑑於我們對2024 年收入水準下降的預期，我們已經制定並繼續實施多項措施，以使我們的成本結構與預計的業務前景保持一致，包括我們上個月宣布的員工人數減少16%、關閉或產能我們的製造基地進行裁員並退出某些業務線。

Through these actions, we made sure not to impact our R&D activities in the development of future products that will enable us to maintain our strong position in this market, which we remain optimistic about over the mid and long term. Ronen will discuss the financial impact of these measures in his remarks.

透過這些行動，我們確保不會影響我們在未來產品開發中的研發活動，這將使我們能夠保持在這個市場的強勢地位，我們對此在中長期保持樂觀。羅南將在演講中討論這些措施的財務影響。

Moving on to operations. We have reduced our manufacturing footprint globally. At the same time, we continue to ramp manufacturing at our U.S. facility where we shipped over 90 megawatts of energy hub inverters in the fourth quarter. We expect to manufacture over 200 megawatts in the first quarter and to hit the quarterly manufacturing run rate of 500 megawatts in the second quarter.

繼續進行操作。我們減少了全球的製造足跡。同時，我們繼續提高美國工廠的生產能力，第四季度我們交付了超過 90 兆瓦的能源中心逆變器。我們預計第一季的產量將超過 200 兆瓦，第二季的季度產量將達到 500 兆瓦。

Additionally, we are on target to begin producing optimizers and commercial inverters at the second contract manufacturing location with small quantities expected in the second quarter, and significant volumes in the third quarter.

此外，我們的目標是在第二個合約製造基地開始生產優化器和商用逆變器，預計第二季少量生產，第三季大量生產。

Moving on to products. We have recently begun commercial shipments of 3 new products that address market segments that we did not previously serve and that we expect to have positively contribute to our business in 2024 and beyond. Starting with the recent announcement of the commissioning of the first U.S. installation of our 330-kilowatt inverter at the 1 megawatt Ground Mount project in California, following initial installations in Europe and Asia.

轉向產品。我們最近開始商業運輸 3 種新產品，這些產品解決了我們以前沒有服務過的細分市場，我們預計這些產品將在 2024 年及以後為我們的業務做出積極貢獻。繼歐洲和亞洲首次安裝之後，我們最近宣佈在加州 1 兆瓦地面安裝專案中首次在美國安裝我們的 330 千瓦逆變器。

This inverter is coupled with our new H1300 [2:1] Power Optimizer. This is our first optimizer equipped with high-frequency DC power line communication technology, which allows communication with large number of optimizers for Ground Mount applications as well as improved remote software upgrade capabilities. We are excited about this product and its application in the community solar and Agri-PV markets, and we'll continue to ramp production for further deliveries in 2024 to U.S., Europe and Asia.

此逆變器與我們的新型 H1300 [2:1] 功率優化器結合。這是我們首款配備高頻直流電力線通訊技術的最佳化器，可與地面安裝應用的大量優化器進行通信，並改進了遠端軟體升級功能。我們對該產品及其在社區太陽能和農業光伏市場的應用感到興奮，我們將繼續提高產量，以便在 2024 年向美國、歐洲和亞洲進一步交付。

Second, in the fourth quarter, we delivered to customers in South Africa, the first shipment of our 102 kilowatt-hour commercial backup battery. This represents an entirely new business opportunity for rooftop and ground-mount solar with applications across many geographies and customers. We intend to roll out the product to multiple European countries in the coming quarters as we certify the products in various region.

第二，第四季度，我們向南非客戶交付了第一批102千瓦時商用備用電池。這代表了屋頂和地面安裝太陽能的全新商機，其應用遍及許多地區和客戶。隨著我們在各個地區對產品進行認證，我們計劃在未來幾季將該產品推廣到多個歐洲國家。

Third, our tracker product continues to gain momentum. To date, we have installed approximately 37 megawatts and have already confirmed orders for approximately 110 additional megawatts that are scheduled to be installed this year.

第三，我們的追蹤器產品持續保持強勁勢頭。迄今為止，我們已安裝約 37 兆瓦，並已確認訂單，計劃今年將安裝約 110 兆瓦。

This tracker is optimized for installations unconstrained and sloped terrains, eliminating the need for costly grading and construction, and as such, is well suited for community solar and agri-PV. The trackers come with advanced software that is designed to optimize production, predict weather changes, maximized by facial gains and respond to remote commands.

該追蹤器針對無約束和傾斜地形的安裝進行了優化，無需昂貴的平整和施工，因此非常適合社區太陽能和農業光伏。這些追蹤器配備了先進的軟體，旨在優化生產、預測天氣變化、最大化臉部增益以及響應遠端命令。

Each of these 3 products by themselves and in combination allow us to provide our customers with an optimized solution for multiple special outdoor applications like floating solar, community solar, carports, agri-PV and others.

這 3 種產品本身以及組合使我們能夠為客戶提供多種特殊戶外應用的最佳化解決方案，例如浮動太陽能、社區太陽能、車棚、農業光伏等。

Let's talk about software. We have been talking about SolarEdge ONE for residential since its launch at Intersolar last year and have been consistently releasing new features into the market. One very topical example of SolarEdge ONE's benefit is currently taking place in the Netherlands.

我們來談談軟體。自從去年在 Intersolar 上推出以來，我們一直在談論住宅用 SolarEdge ONE，並不斷向市場發布新功能。 SolarEdge ONE 優勢的一個非常熱門的例子目前正在荷蘭發生。

In the last year, many utilities in the Netherlands have adopted negative rate policies in which at certain times, consumers who export power into the grid are penalized for the power they are exporting. To alleviate this, we introduced the negative rate optimization feature that through integration to the energy markets, knows when export rates turn negative, and automatically stops export of energy and maximizes consumption from the grid, providing customers with incremental savings.

去年，荷蘭許多公用事業公司採取了負利率政策，在某些時候，向電網輸出電力的消費者會因其輸出的電力而受到懲罰。為了緩解這個問題，我們引入了負利率優化功能，透過與能源市場的整合，了解出口利率何時變為負數，並自動停止能源出口並最大限度地提高電網消耗，為客戶提供增量節省。

Beyond the Netherlands, this capability has already been rolled out to Belgium, Sweden and Poland and will be rolled out to additional countries on an as-needed basis. As it's a cloud-enabled solution, this feature can serve our entire legacy fleet as well as new installations of residential and C&I systems. Since launching the feature late in 2023, over 9,000 customers have registered for it, and there have been more than 70 events in the last 3 months where customers have saved money using the feature.

除荷蘭之外，該功能已推廣到比利時、瑞典和波蘭，並將根據需要推廣到其他國家。由於它是一個支援雲端的解決方案，因此該功能可以為我們的整個舊機隊以及新安裝的住宅和 C&I 系統提供服務。自 2023 年底推出該功能以來，已有 9,000 多名客戶註冊，並且在過去 3 個月內，已有 70 多場活動讓客戶使用該功能省錢。

Another important software feature that we are in the process of field testing is Dynamic Rate Optimization. Dynamic Rates are complex energy trading methods where utilities publish the electricity imports and export rates every day for the next 24 hours, which change dynamically throughout the day.

我們正在進行現場測試的另一個重要軟體功能是動態速率優化。動態費率是複雜的能源交易方法，公用事業公司每天發布未來 24 小時內的電力進口和出口費率，該費率全天動態變化。

The SolarEdge ONE energy optimization algorithm imports the rates from the utility company and optimizes PV production, energy storage and energy consumption to maximize homeowner savings. Through the strength of the algorithm team that we have built in our R&D group, we aim to provide a best-in-class energy management software suite in order to generate maximum savings for our customers through our simple and user-friendly interface.

SolarEdge ONE 能源優化演算法從公用事業公司匯入費率，並優化光伏發電、能源儲存和能源消耗，以最大限度地提高房主的節省。憑藉我們在研發團隊中建立的演算法團隊的實力，我們的目標是提供一流的能源管理軟體套件，以便透過我們簡單且用戶友好的介面為我們的客戶帶來最大程度的節省。

I will now hand it over to Ronen.

現在我將把它交給羅南。

Thank you, Zvi, and good afternoon, everyone. The market situation, which resulted in lower revenue levels in the fourth quarter and in the next quarter creates various anomalies in our financials, which I would address today. For a full comparison between our financial results for the quarter and the same quarter last year, please refer to the press release issued today and to the supplemental materials posted in our Investor Relations section on our website.

謝謝你，Zvi，大家下午好。市場狀況導致第四季和下一季的營收水準下降，導致我們的財務狀況出現各種異常情況，我今天將對此進行解決。有關本季與去年同期財務業績的完整比較，請參閱今天發布的新聞稿以及我們網站投資者關係部分發布的補充資料。

Total revenue for the Fourth quarter were $316 million. Revenues from our solar segment, which includes the sales of batteries were $282.4 million. Solar revenues from the United States this quarter were $112.8 million, representing 40% of our solar revenues. Solar revenues from Europe were $120.5 million representing 43% of our solar revenues. Rest of the world, solar revenues were $49.1 million, representing 17% of our total solar revenues.

第四季總營收為 3.16 億美元。我們太陽能部門的收入（包括電池銷售）為 2.824 億美元。本季來自美國的太陽能收入為 1.128 億美元，占我們太陽能收入的 40%。來自歐洲的太陽能收入為 1.205 億美元，占我們太陽能收入的 43%。在世界其他地區，太陽能收入為 4,910 萬美元，占我們太陽能總收入的 17%。

On a megawatt basis, we shipped 283 megawatts to the United States, 335 megawatts to Europe and 283 megawatts to the rest of the world for just over 900 megawatts of total shipments. 61% of the megawatt shipments this quarter were commercial products with the remaining 39% residential. In the fourth quarter, we shipped 133-megawatt hour of our residential and commercial batteries, with the majority shipped to Europe.

以兆瓦計算，我們向美國運送了 283 兆瓦，向歐洲運送了 335 兆瓦，向世界其他地區運送了 283 兆瓦，總出貨量略高於 900 兆瓦。本季 61% 的兆瓦出貨量是商業產品，其餘 39% 是住宅產品。第四季度，我們運送了 133 兆瓦時的住宅和商業電池，其中大部分是運往歐洲。

From a product perspective and as a result of the high 3-phase channel inventory in the German-speaking countries, this quarter, our shipment was heavily skewed to single-phase batteries that are manufactured using the Samsung cells and that carry significant lower margins.

從產品角度來看，由於德語國家三相通路庫存較高，本季我們的出貨量嚴重偏向使用三星電池製造的單相電池，且利潤率明顯較低。

In the fourth quarter, due to inventory imbalances in the distribution channels, we shipped higher portion of optimizers to inverters. As a result, ASP per watt this quarter, excluding battery revenues, was $0.236, a 44% increase from $0.164 in the last quarter, while the typical ratio of inverters to optimizers is 1:24, the ratio this quarter was 1:30.

第四季度，由於分銷通路庫存不平衡，我們向逆變器出貨的優化器比例增加。因此，本季每瓦的平均售價（不含電池收入）為0.236 美元，比上季度的0.164 美元增長了44%，而逆變器與優化器的典型比例為1:24，本季的比例為1:30。

In general, our unit prices were largely unchanged this quarter. Our battery ASP per kilowatt hour was $403 this quarter, down from $475 per kilowatt hour in the previous quarter. The decrease is largely due to an inclusion of our first shipment of our commercial battery, which carry a lower ASP per kilowatt hour as well as the previously announced price decreases on our residential batteries.

整體而言，本季我們的單價基本上沒有變化。本季我們的電池平均售價為每千瓦時 403 美元，低於上一季每千瓦時 475 美元。下降的主要原因是我們的第一批商用電池（其每千瓦時的平均售價較低）以及先前宣布的住宅電池價格下降。

Revenues this quarter from our non-solar businesses, comprising of energy storage and all other segments were $33.5 million. Following the discontinuation of our LCV business, this revenue is mostly attributed to our energy storage division.

本季我們的非太陽能業務（包括能源儲存和所有其他業務）的收入為 3,350 萬美元。在我們的輕型商用車業務終止後，該收入主要來自我們的儲能部門。

Consolidated GAAP gross margin for the quarter was a negative 17.9% compared to positive 19.7% in the prior quarter, largely due to our discontinued operations and restructuring activities. Non-GAAP consolidated gross margin this quarter was 3.3% compared to 20.8% in the prior quarter.

本季綜合 GAAP 毛利率為負 17.9%，而上一季為正 19.7%，主要是由於我們停止營運和重組活動。本季非 GAAP 綜合毛利率為 3.3%，上一季為 20.8%。

Gross margin for the solar segment was 4% compared to 24% in the prior quarter. This amount includes 210 basis points of IRA benefit. Given that the low revenue environment creates various anomalies in our margin structure, I would like to spend a few minutes addressing the main drivers of our gross margin and the impact on the current and next quarter's margin level. This breakdown will provide more detail than we typically disclose, and we will provide this additional color on our quarterly earnings calls as long as the current situation persists.

太陽能業務的毛利率為 4%，而上一季為 24%。該金額包括 210 個基點的 IRA 福利。鑑於低收入環境在我們的利潤結構中造成了各種異常，我想花幾分鐘時間討論我們毛利率的主要驅動因素以及對當前和下一季利潤水準的影響。這種細分將提供比我們通常披露的更多細節，只要當前情況持續存在，我們就會在季度收益電話會議上提供這種額外的顏色。

The first layer of gross margin is what we define as direct gross margin, which is the difference between the price paid by our customers and our direct costs paid to our contract manufacturers. This part of the gross margin is affected by the prices in which we sell our products, the customer, the product and the geographic mix and the cost of components and other manufacturing costs. This margin layer is not dependent on revenue level but is only dependent on price, cost and mix.

第一層毛利率就是我們定義的直接毛利率，也就是我們的客戶支付的價格與我們支付給合約製造商的直接成本之間的差額。這部分毛利率受到我們銷售產品的價格、客戶、產品和地理組合以及零件成本和其他製造成本的影響。此利潤層不依賴收入水平，而僅依賴價格、成本和組合。

In the fourth quarter, direct margin was 970 basis points lower than the third quarter, a direct result of a typically high portion of large customers within our mix that enjoy volume discounts and a very high portion of our single-phase batteries that are based on Samsung cells purchased under prices that prevailed in the battery cell market in 2022. These were offset by IRA incentives on products we made in the United States. We expect to recover most of this gross margin in Q1 due to product and customer mix changes.

第四季的直接利潤率比第三季低 970 個基點，這是由於我們的組合中大部分大客戶享受批量折扣以及我們的單相電池中很大一部分基於三星電池的採購價格與2022 年電池市場的主流價格相同。這些價格被IRA 對我們在美國製造的產品的激勵措施所抵消。由於產品和客戶組合的變化，我們預計第一季將恢復大部分毛利率。

Total gross margins are achieved by adding additional cost of goods sold or other COGS to the direct costs. O-COGS are not directly related to the product volumes sold in this quarter. Some O-COGS are variable, such as shipment costs and tariffs and warranty accrual on a newly sold product and some are not variable, such as warranty expenses on our existing fleet, manufacturing and support departments and contract manufacturers chargers.

總毛利率是透過在直接成本中添加額外的銷售成本或其他銷貨成本來實現的。 O-COGS 與本季銷售的產品量沒有直接關係。有些 O-COGS 是可變的，例如新銷售產品的運輸成本、關稅和保固應計費用，有些則不可變，例如我們現有車隊、製造和支援部門以及合約製造商充電器的保固費用。

In the fourth quarter, we lowered our O-COGS by approximately 50% on an absolute dollar basis, the greater decline in revenue on an absolute basis led us to these economies of scale that had negative impact of 930 basis points on our fourth quarter solar gross margins. By means of example, we lowered our production and support departments costs by 12% on an absolute basis in Q4. And yet, these costs accounted for 670 basis points negative impact compared to the third quarter on gross margin due to lower revenue.

在第四季度，我們將O-COGS 按絕對美元計算降低了約50%，以絕對美元計算的收入下降幅度更大，導致我們產生了規模經濟，對我們第四季度的太陽能產生了930 個基點的負面影響毛利率。例如，我們在第四季將生產和支援部門的成本絕對降低了 12%。然而，由於收入下降，與第三季相比，這些成本對毛利率造成了 670 個基點的負面影響。

Another example is warranty expenses in accrual, which were 49% lower on an absolute dollar basis in Q4 and yet accounted for 200 basis points negative impact on gross margins due to the lower revenue. Although we further expect reduction in the absolute dollar value spending in the first quarter of 2024, the lower guided revenues will continue to negatively impact our gross margins. This phenomenon is expected to reverse throughout the year as channel inventories clear out.

另一個例子是應計保固費用，以絕對美元計算，第四季度該費用下降了 49%，但由於收入下降，對毛利率產生了 200 個基點的負面影響。儘管我們進一步預期 2024 年第一季的絕對美元價值支出將減少，但較低的指導收入將繼續對我們的毛利率產生負面影響。隨著渠道庫存的清理，這一現象預計將在全年得到扭轉。

Gross margin for our non-solar segment was negative 2.2%, an improvement from negative 23.9% last quarter, a result of higher revenues from our energy storage division and better utilization of Sella 2 factory. On a non-GAAP basis, operating expenses for the fourth quarter were $118.3 million compared to $128 million in the prior quarter. This reduction is predominantly related to reimbursements of salaries of Israeli employees that entered the reserve service as well as lower accrual for doubtful accounts and additional savings.

我們的非太陽能部門的毛利率為負 2.2%，較上季度的負 23.9% 有所改善，這是由於我們的能源儲存部門收入增加以及 Sella 2 工廠利用率提高所致。以非公認會計準則計算，第四季營運費用為 1.183 億美元，上一季營運費用為 1.28 億美元。這項減少主要與報銷進入預備役的以色列僱員的工資以及呆帳應計額和額外儲蓄的減少有關。

As announced in the beginning of the year, during the fourth quarter of 2023 and the first quarter of 2024, we took significant cost reduction measures including a reduction of 16% of our workforce. We expect our non-GAAP operating expenses to stabilize in the second quarter of 2024, and once the full impact of those cost savings is realized, we would expect operating expenses to range between approximately $112 million to $117 million a quarter, while we continue to seek further efficiencies in all of our operations.

正如年初所宣布的，在 2023 年第四季和 2024 年第一季度，我們採取了重大成本削減措施，包括裁員 16%。我們預計我們的非 GAAP 營運支出將在 2024 年第二季穩定下來，一旦實現這些成本節約的全部影響，我們預計每季營運支出將在約 1.12 億美元至 1.17 億美元之間，同時我們將繼續尋求我們所有營運的進一步效率。

This quarter, we also incurred significant discontinuation and restructuring costs in our GAAP results. As mentioned in the previous call, upon the termination of our agreement with Stellantis, we have exited the light commercial vehicle business. The Stellantis contract termination generated an inventory write-off of $36.2 million and additional discontinuation costs of $0.8 million.

本季度，我們的 GAAP 業績也產生了大量的停產和重組成本。如同先前的電話會議中所提到的，在我們與 Stellantis 的協議終止後，我們已經退出了輕型商用車業務。 Stellantis 合約終止造成 3,620 萬美元的庫存沖銷和 80 萬美元的額外停產成本。

In addition, as previously reported, we discontinued our manufacturing in Mexico and reduced our manufacturing levels in China. Our GAAP results for the fourth quarter include $23.2 million of restructuring expenses, the majority of which relates to contract manufacturer charges and equipment retirement costs.

此外，正如先前報導的，我們停止了在墨西哥的生產，並降低了在中國的生產水準。我們第四季的 GAAP 業績包括 2,320 萬美元的重組費用，其中大部分與合約製造商費用和設備報廢成本有關。

GAAP operating loss for the quarter was $237.6 million compared to an operating loss of $16.7 million in the previous quarter. Non-GAAP operating loss for the quarter was $107.8 million compared to an operating profit of $23.1 million in the previous quarter. Non-GAAP financial income for the quarter was $30 million compared to a non-GAAP financial loss of $7.4 million in the previous quarter.

本季 GAAP 營運虧損為 2.376 億美元，而上一季營運虧損為 1,670 萬美元。本季非 GAAP 營運虧損為 1.078 億美元，而上一季營運利潤為 2,310 萬美元。本季非 GAAP 財務收入為 3,000 萬美元，而上一季非 GAAP 財務虧損為 740 萬美元。

Our non-GAAP tax benefit was $25.5 million compared to a non-GAAP tax expense of $46.6 million in the previous quarter. Our non-GAAP tax rate for the year was 27%, and we expect it to decline over the next several years. GAAP net loss for the fourth quarter was $162.4 million compared to a GAAP net loss of $61.2 million in the previous quarter. Our non-GAAP net loss was $52.5 million compared to a non-GAAP net loss of $30.1 million in the previous quarter.

我們的非 GAAP 稅收優惠為 2,550 萬美元，而上一季的非 GAAP 稅收支出為 4,660 萬美元。我們今年的非公認會計準則稅率為 27%，我們預計未來幾年稅率會下降。第四季 GAAP 淨虧損為 1.624 億美元，而上一季 GAAP 淨虧損為 6,120 萬美元。我們的非 GAAP 淨虧損為 5,250 萬美元，而上一季的非 GAAP 淨虧損為 3,010 萬美元。

GAAP net diluted loss per share was $2.85 for the fourth quarter compared to $1.08 in the previous quarter. Non-GAAP net diluted loss per share was $0.92 compared to $0.55 in the previous quarter.

第四季 GAAP 攤薄後每股淨虧損為 2.85 美元，上一季為 1.08 美元。非 GAAP 攤薄後每股淨虧損為 0.92 美元，上一季為 0.55 美元。

As Zvi discussed we expect to reach an underlying business run rate of $600 million to $650 million in the second half of the year, and we expect the process of inventory normalization to last until the end of this year. We continue to expect that at the revenue level of $600 million to $650 million a quarter, consolidated non-GAAP gross margins would return to 30% to 32% including approximately 500 basis points of benefit from IRA manufacturing tax credits and operating profit margins would return to 11% to 14% after implementing cost reduction activities.

正如 Zvi 所討論的，我們預計下半年的基本業務運行率將達到 6 億至 6.5 億美元，並且我們預計庫存正常化的過程將持續到今年年底。我們繼續預計，在每季6 億至6.5 億美元的收入水準下，綜合非GAAP 毛利率將恢復到30% 至32%，其中包括IRA 製造業稅收抵免帶來的約500 個基點的收益，營業利益率將恢復實施成本削減活動後，成本降至 11% 至 14%。

Turning now to our balance sheet. As of December 31, 2023, cash, cash equivalents, bank deposits, restricted bank deposits and investments were $1.3 billion. Net of debt, this amount was $634.7 million. This quarter, cash used in operating activities was $140 million. This cash utilization is a direct result of 2 main factors: First, we have extended payment terms to certain customers. As a result, our DSO increased from 149 days in the third quarter to 265 days in the fourth quarter.

現在轉向我們的資產負債表。截至2023年12月31日，現金、現金等價物、銀行存款、受限銀行存款及投資為13億美元。扣除債務後，這筆金額為 6.347 億美元。本季經營活動使用的現金為1.4億美元。這種現金利用率是兩個主要因素的直接結果：首先，我們延長了某些客戶的付款期限。因此，我們的 DSO 從第三季的 149 天增加到第四季的 265 天。

Second, our inventory level increased significantly to the abrupt slowdown in demand. Our inventory days increased from 169 days in the third quarter to 386 days in the fourth quarter. We expect to see a slight increase in inventory levels in the first quarter as we ramp our U.S. manufacturing, which, along with the lower guided revenues will result in higher inventory days. This trend of increased inventory days is expected to begin to reverse in the second quarter of 2024 once revenues returned to growth and as we manufacture less products. We did not buy back share in this fourth quarter, and we expect to start executing our $300 million stock repurchase program in the first quarter of 2024.

其次，我們的庫存水準大幅增加導致需求突然放緩。我們的庫存天數從第三季的169天增加到第四季的386天。隨著我們擴大美國製造業，我們預計第一季庫存水準將略有增加，加上指導收入較低，將導致庫存天數增加。一旦收入恢復成長並且我們生產的產品減少，預計這種庫存天數增加的趨勢將在 2024 年第二季開始逆轉。我們沒有在第四季回購股票，我們預計將在 2024 年第一季開始執行 3 億美元的股票回購計畫。

Accounts receivable net decreased this quarter to $622.4 million compared to $939.5 million last quarter. As of December 31, our inventory level, net of reserve, was at $1.4 billion compared to $1.2 billion in the prior quarter. The increase is solely attributed to higher finished goods inventories, a result of the abrupt slowdown in shipments, offset by a decrease in raw material inventory.

本季應收帳款淨額從上季的 9.395 億美元減少至 6.224 億美元。截至 12 月 31 日，我們的庫存水準（扣除準備金）為 14 億美元，而上一季為 12 億美元。這一增長完全歸因於出貨量突然放緩導致成品庫存增加，但被原材料庫存減少所抵消。

Turning to our guidance as discussed in our earnings release for the first quarter of 2024. We are guiding revenues to be within the range of $175 million to $215 million. We expect non-GAAP gross margins to be within the range of negative 3% to positive 1%, including 850 basis points of IRA benefit. We expect our non-GAAP operating expenses to be within the range of $122 million to $130 million.

轉向我們在 2024 年第一季收益發布中討論的指導。我們指導收入在 1.75 億美元至 2.15 億美元之間。我們預計非 GAAP 毛利率將在負 3% 至正 1% 的範圍內，其中包括 850 個基點的 IRA 福利。我們預計我們的非 GAAP 營運費用將在 1.22 億美元至 1.3 億美元之間。

Revenues from the solar segment are expected to be within the range of $160 million to $200 million. Gross margins from the solar segment is expected to be within the range of 1% to 5%, including 900 basis points of IRA benefits.

太陽能部門的收入預計在1.6億到2億美元之間。太陽能業務的毛利率預計在 1% 至 5% 之間，其中包括 900 個基點的 IRA 福利。

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

我現在將把電話轉給接線員以供提問。

(Operator Instructions). Our first question comes from Andrew Percoco with Morgan Stanley.

（操作員說明）。我們的第一個問題來自摩根士丹利的安德魯佩科科。

So maybe just kind of starting out on the margins here. Apologies if I missed all the numbers, but I think you mentioned about 970 basis points or so of impact from volume-driven price discounts and some battery mix shift. Can you maybe just kind of reiterate or go over those numbers again in terms of how much you expect to come back in the first quarter and then maybe the cadence beyond the first quarter in terms of the back half of the year where you expect to get and how you get there?

所以也許只是從邊緣開始。如果我錯過了所有數字，我深表歉意，但我認為您提到了銷量驅動的價格折扣和一些電池組合變化帶來的大約 970 個基點左右的影響。您是否可以重申或再次回顧這些數字，即您預計第一季的回報率，然後可能是第一季之後的節奏，即您預計下半年的回報率如何到達那裡？

Sure, and thanks for the question. So first of all, to explain a little bit, again, the term of the direct gross margins and then what are the impact. In general, there is a price that we charge our customers and this price has not changed dramatically in the first quarter, as we mentioned before, other than batteries where we started to increase costs, as previously mentioned.

當然，謝謝你的提問。首先，再次解釋一下直接毛利率這個術語以及其影響是什麼。一般來說，我們向客戶收取一個價格，正如我們之前提到的，除了我們開始增加成本的電池之外，這個價格在第一季沒有太大變化。

The second part, of course, is the cost that we pay to our contract manufacturers. And this is also, by the way, something that's relatively fixed, given the cost of bill of material and manufacturing costs with our contract manufacturers. So when we look at the first level of this direct gross margin, the only difference that we have when you have a certain level of revenues is what is the amount of customers that has -- or at the size of the customer that have different volume discounts, that's number one.

當然，第二部分是我們支付給合約製造商的成本。順便說一句，考慮到我們合約製造商的物料清單成本和製造成本，這也是相對固定的。因此，當我們查看直接毛利率的第一個水平時，當您擁有一定的收入水平時，我們唯一的區別是擁有的客戶數量是多少，或者俱有不同數量的客戶規模折扣，這是第一。

And number two, which was actually a little bit more important and influential this quarter is what is the mix of our products. So the first thing I would say that with -- of these 970 basis points loss of gross margin compared to the previous quarter, a lot of it is actually related to the fact that our portion of single phase batteries were much higher than in the previous quarters.

第二，本季實際上更重要和更有影響力的是我們的產品組合。因此，我首先要說的是，與上一季相比，毛利率損失了 970 個基點，其中很大一部分實際上與我們的單相電池份額遠高於上一季有關。宿舍。

Now we need to remember that these are batteries that we manufacture based on cells that we acquired from Samsung. It's an agreement that we signed at the very end of 2021. At that time, by the way, NMC battery prices skyrocketed and as a result of this and since this was related also to the raw materials index during the war in Ukraine in 2022. Those prices went up dramatically. And that means that today, when we're selling batteries, single-phase batteries made on these Samsung cells, our gross margins are very, very low.

現在我們需要記住，這些電池是我們基於從三星購買的電池製造的。這是我們在2021年底簽署的協議。順便說一下，當時NMC電池價格飛漲，因此，這也與2022年烏克蘭戰爭期間的原材料指數有關。這些價格急劇上漲。這意味著今天，當我們銷售電池、用這些三星電池製造的單相電池時，我們的毛利率非常非常低。

The second thing that happened is that actually in this oversupply environment, some of the customers that managed well their inventories and were able to either grow and actually need products to maintain their growth were large customers with very strong buying power. And therefore, in general, these will be customers that usually will be, I would say, less than 20% of the overall revenue. This quarter, they were like 60% or 70% sometimes of the overall revenues. Again, these are just numbers by means of example. So that was the second part.

發生的第二件事是，實際上在這種供過於求的環境下，一些庫存管理良好、能夠成長並且實際上需要產品來維持成長的客戶是購買力非常強的大客戶。因此，總的來說，這些客戶通常佔總收入的比例不到 20%。本季度，它們有時佔總收入的 60% 或 70%。再次強調，這些只是舉例的數字。這就是第二部分。

But I would still say that the biggest difference was, first of all, coming from the batteries and then from the customers. So I hope it helped on that side.

但我仍然想說，最大的區別首先來自電池，然後來自客戶。所以我希望它在這方面有所幫助。

What happens next quarter. So next quarter, 2 things are happening. The first thing is that across the mix of products that we expect to see and customers, we will see a little bit less of these very large customers with lower gross margins simply because of the fact that, again, they have right now what they need.

下個季度會發生什麼。所以下個季度，將會發生兩件事。首先，在我們期望看到的產品和客戶組合中，我們會看到毛利率較低的大型客戶會減少一些，這僅僅是因為他們現在擁有他們所需要的東西。

And the second thing is that the overall portion of the single-phase batteries will most likely be slightly lower compared to what we saw this quarter. And that means that we expect the majority of this 970 basis points to come back, not all of them, but the majority.

第二件事是，與我們本季看到的相比，單相電池的整體比例很可能會略低。這意味著我們預計 970 個基點中的大部分都會回歸，不是全部，而是大部分。

I will add up with one important thing, Andrew, and I think that it will maybe be a thing that we will discuss over this call. The situation that we see today, as mentioned by Zvi, is that the channels are very much filled with inventories because of all of the dynamics that Zvi has mentioned.

安德魯，我會補充一件重要的事情，我認為這可能是我們在這次電話會議中討論的事情。正如 Zvi 所提到的，我們今天看到的情況是，由於 Zvi 提到的所有動態，頻道中充滿了庫存。

And what we do see is that today, customers are not buying a typical order from SolarEdge as they used to do before of [ex-inverters and ex-optimizers]. In some cases, these customers are stop buying, and they buy only those things that you see. And this is why you sometimes see a little bit of an abnormal situation where a customer is buying only inverters because they have too much optimizers.

我們確實看到，如今，客戶不再像以前那樣從 SolarEdge 購買典型訂單（前逆變器和前優化器）。在某些情況下，這些客戶會停止購買，他們只購買您看到的東西。這就是為什麼有時你會看到一些異常情況，即客戶只購買逆變器，因為他們有太多的優化器。

This quarter, actually, it was the other way around. We saw a lot of customers buying more inverters and optimizers. Sometimes -- sorry, more optimizers than usual at the ratio of inverters. We may see, as we mentioned this quarter that the 3-phase batteries in the German countries are relatively heavy on the channel inventory. But once they start to be clear, then we will see higher purchases of these products that enjoy very nice gross margins.

事實上，本季情況恰恰相反。我們看到很多客戶購買了更多的逆變器和優化器。有時 - 抱歉，在逆變器的比例上，優化器比平常更多。我們可能會看到，正如我們本季提到的，德國國家的三相電池在通路庫存上相對較多。但一旦它們開始變得清晰，我們就會看到這些毛利率非常高的產品的購買量增加。

So I would say that the cadence of coming back to the level that we saw before is mostly related to the stabilization of the inventory situation in the channel, which, again, we expect to see in the second half of the year because then we will start to see back that the level of inventories is normalized and you see a little bit more, I would call it, reasonable or natural ratios of products.

因此，我想說，回到我們之前看到的水平的節奏主要與渠道中庫存狀況的穩定有關，我們預計將在今年下半年看到這一情況，因為那時我們將開始看到庫存水平已經正常化，你會看到更多一點，我稱之為合理或自然的產品比率。

Great. That's super helpful. And then maybe just as one follow-up question on demand. It sounds like you're still bullish on European demand acceleration beyond the first quarter, both for residential and commercial, but still somewhat more muted and negative on the U.S. outlook for 2024.

偉大的。這非常有幫助。然後可能只是按需提出的一個後續問題。聽起來您仍然看好第一季之後歐洲住宅和商業需求的加速成長，但對美國 2024 年的前景仍然較為溫和和負面。

Can you maybe just help us bridge the gap there? What's driving the demand in Europe? Is it just purely power price driven? Is it energy security driven? Because it seems like the macro environment is somewhat similar in both geographies. I'm just curious what gives you more confidence in the medium-term outlook in Europe?

你能幫我們彌補那裡的差距嗎？是什麼推動了歐洲的需求？只是純粹的電價驅動嗎？是能源安全驅動的嗎？因為這兩個地區的宏觀環境似乎有些相似。我只是好奇是什麼讓您對歐洲的中期前景更有信心？

Yes, Frank, we tried specifically actually to break it down to 4 segments, if you will, residential in Europe, commercial in Europe and residential in the U.S. and commercial in the U.S. So in Europe, I don't know if the word is bullish, but we believe that there will be growth from the rates that we were in the fourth quarter and in the first quarter, primarily based on seasonality and historical breakdown of installations and revenue in Europe between the various quarters.

是的，弗蘭克，如果你願意的話，我們實際上特別嘗試將其分為 4 個部分：歐洲的住宅、歐洲的商業、美國的住宅和美國的商業。所以在歐洲，我不知道這個詞是否是看漲，但我們相信，第四季和第一季的成長率將會有所成長，這主要是基於季節性以及歐洲各季度之間安裝量和收入的歷史細目。

And that, combined with some of the regulatory clarifications that we mentioned. Both of these elements together in our mind, translate to the fact that from the first quarter and on, there will be a gradual improvement in installation rates and clearing of inventory and eventually of revenue in Europe.

再加上我們提到的一些監管澄清。在我們看來，這兩個因素結合在一起，轉化為這樣一個事實：從第一季起，歐洲的安裝率和庫存清理以及最終的收入將逐步改善。

And this is true for both segments, residential and commercial. Overall, the expectation is for stronger growth in commercial than in residential related to market dynamics and some of the enterprise push for decarbonization. That relates to Europe. And in the U.S., we see a very different pattern between residential and commercial. And that we've been seeing already.

對於住宅和商業這兩個領域都是如此。總體而言，由於市場動態和一些企業推動脫碳，預計商業領域的成長將強於住宅領域。這與歐洲有關。在美國，我們看到住宅和商業之間有非常不同的模式。我們已經看到了。

So as I mentioned, commercial from an installation rate and sell-through point of view is continuing to grow. It grew significantly in the fourth quarter compared to the third quarter, and we are, at record, historical levels from that perspective in terms of sell-through by our distributors, there's still time until the inventory clears and that begins to translate into revenue for us.

正如我所提到的，從安裝率和銷售量的角度來看，商業廣告正在持續成長。與第三季相比，第四季的銷售額顯著成長，從經銷商的銷售量來看，我們處於創紀錄的歷史水平，庫存清理還有時間，並開始轉化為我們收入。

But we are relatively optimistic about continued growth in the commercial market in the U.S. Again, a lot of it is driven by enterprise, module prices and at some point, also availability of IRA product that I mentioned, we will begin to deliver in Q2 and deliver in volumes in Q3. So that is the source of why we expect a positive trajectory on C&I in the U.S.

但我們對美國商業市場的持續成長相對樂觀。同樣，這很大程度上是由企業、模組價格以及在某些時候以及我提到的IRA 產品的可用性所推動的，我們將在第二季度開始交付，第三季批量交付。這就是我們預期美國工商業將出現積極發展軌跡的原因。

And the residential in the U.S. is the segment where we are less optimistic about growth, at least in the short term, and expect the market to continue to be a bit slow with gradual trends of people realizing how to sell and operate within a NEM 3.0 environment in California. And we see this slow growth trajectory in that regard.

美國的住宅是我們對成長不太樂觀的領域，至少在短期內是如此，並且預計市場將繼續保持緩慢，因為人們逐漸意識到如何在 NEM 3.0 中進行銷售和運營加州的環境。我們在這方面看到了緩慢的成長軌跡。

And availability of IRA products later in the year and especially installers and TPOs learning how to construct their business such that they can benefit from the IRA, and that should help push the market forward a bit in the later part of the year. But this segment out of the 3 is the one that we see as more stagnant.

IRA 產品將在今年稍後上市，尤其是安裝商和 TPO 會學習如何建立自己的業務，以便能夠從 IRA 中受益，這應該有助於推動市場在今年下半年向前發展。但我們認為這三個部分中的這一部分更為停滯。

In Europe, we see gradual growth in Resi and commercial. And in the U.S., we expect continued growth on commercial. All of this, again, from the perspective of installation rates and point of sale that will eventually clear the inventory and result in our revenues as well with our expectations.

在歐洲，我們看到 Resi 和商業逐漸成長。在美國，我們預計商業業務將持續成長。所有這一切，再次從安裝率和銷售點的角度來看，最終將清理庫存並帶來我們的收入以及我們的預期。

Our next question comes from Philip Shen with ROTH MKM.

我們的下一個問題來自 ROTH MKM 的 Philip Shen。

I wanted to explore your capital plan a bit more. I think you, guys, were talking about the potential for a buyback and I think your cash and net debt is roughly $600-plus million. It seems like you may have burned $200-ish million in Q4, if the macro remains challenged through the first half of this year, could you guys be in a situation where you need to raise capital? Can you talk about your plan to manage the liquidity dynamics in general and how much cash you would like to maintain on balance sheet.

我想進一步探討一下你們的資本計畫。我想你們正在談論回購的可能性，我認為你們的現金和淨債務大約是 6 億多美元。看起來你們第四季可能已經燒掉了2億美元左右，如果今年上半年宏觀經濟仍然面臨挑戰，你們是否會面臨需要籌資的情況？您能否談談您管理流動性動態的總體計劃以及您希望在資產負債表上保留多少現金。

Sure. So in general, cash flow from operation this quarter was, as mentioned, about $140 million. And as usual, you also have a little bit of capital expenditures. When we look into the next year, let's first of all, try to understand the cash dynamics, and then I'll discuss the capital allocations. We're basically going into a few quarters where quarterly revenues will be lower than the cash -- sorry, the AR balance that we have right now, which is approximately $700 million of AR balances which we will collect them. We collect them slower than we want, given the fact that, again, some of our customers are seeing difficulties, but we're confident in our ability to collect those.

當然。因此，如上所述，總的來說，本季的營運現金流約為 1.4 億美元。像往常一樣，你還有一點資本支出。當我們展望明年時，我們首先嘗試了解現金動態，然後我將討論資本配置。我們基本上會進入幾個季度，季度收入將低於現金——抱歉，我們現在擁有的應收帳款餘額，大約是 7 億美元的應收帳款餘額，我們將收取這些餘額。我們收集它們的速度比我們想要的要慢，因為我們的一些客戶再次遇到了困難，但我們對我們收集這些資訊的能力充滿信心。

The second thing that will happen is, of course, the fact that since we're sitting in such a large inventory levels, these are products, of course, that are not expected to be replaced over the very near future. For example, in our optimizers, we've just started our fourth-generation selling of this product this year. These are products that usually do not have shelf life.

當然，將發生的第二件事是，由於我們的庫存水平如此之高，這些產品當然預計不會在不久的將來被替換。例如，在我們的優化器中，我們今年才剛開始銷售該產品的第四代。這些產品通常沒有保質期。

And therefore, we expect to see that a lot of our revenues in 2024 will be continued to be sold from the inventory that we currently carry, where the manufacturing that we will do will come mostly in the U.S. for IRA purposes. We want, of course, to capitalize on these benefits. And second is in other places because we want to maintain our manufacturing capability for the next year.

因此，我們預計 2024 年我們的大部分收入將繼續從我們目前持有的庫存中出售，我們將主要在美國進行製造，用於 IRA 目的。當然，我們希望利用這些好處。其次是在其他地方，因為我們希望明年能保持我們的製造能力。

By this, the result should be is that 2024 is going to be most likely a year in which we are going to generate a substantial amount of cash, at least, I would say, from the second quarter once all of these trends will start to reverse.

By this, the result should be is that 2024 is going to be most likely a year in which we are going to generate a substantial amount of cash, at least, I would say, from the second quarter once all of these trends will start to反向.

So in that sense, we do expect that our cash flow will raise again, and it will be, unfortunately, when you're not growing so rapidly, the, I would say, working capital needs are usually less pronounced.

因此，從這個意義上說，我們確實預計我們的現金流將再次增加，不幸的是，當你成長不那麼快時，我想說，營運資金需求通常不太明顯。

The second part is when it comes to the capital allocation is the fact that we will not execute the plan as long as we do not feel very comfortable with the cash position that we have. We feel very comfortable today that acquiring SolarEdge shares by the company is a good use of cash of the company. We will do it in a very, I would call it, measured way to make sure that we are matching the pace of our purchasing of stock to the pace of our cash generation in order to make sure that we're not running if something goes bad into a problem.

第二部分是在資本配置方面，只要我們對現有的現金狀況感到不太滿意，我們就不會執行該計劃。今天我們感到非常放心，收購該公司的 SolarEdge 股票是對公司現金的良好利用。我們將以一種非常謹慎的方式來做這件事，以確保我們購買股票的速度與現金產生的速度相匹配，以確保如果出現問題我們不會運行壞成問題了。

And in any case, of course, we are going to be very, I would say, concise on how we're going to continue and generate the cash flow from the inventory and customers.

當然，無論如何，我想說，我們將非常簡潔地說明我們將如何繼續並從庫存和客戶中產生現金流。

So I think that right now, we do not see that we will need to raise capital. I believe that we will actually generate a little bit more capital. And we believe that buying stock, our shares is the right solution.

所以我認為現在我們不需要籌集資金。我相信我們實際上會產生更多的資本。我們相信買股票、我們的股票是正確的解決方案。

I will just end with one more thing, and this is the CapEx spending. The general trend is that since we're reducing manufacturing footprint, of course, we will invest much less in capital expenditures related to our manufacturing capacity increase as we did in the past.

最後我還要講一件事，那就是資本支出。總的趨勢是，由於我們正在減少製造足跡，當然，我們將像過去那樣減少與製造能力增加相關的資本支出的投資。

So for example, some of the activities that we're ramping right now in the United States, can be supported by equipment that we have already purchased by testing equipment that was already built and is now being mobilized from other factories.

例如，我們現在在美國開展的一些活動可以得到我們已經購買的設備的支持，這些設備是透過測試已經建造的設備來支援的，這些設備現在正在從其他工廠調動。

So all in all, we see low usage of cash, high generation of cash and a very measured and responsible purchase of shares, which we still believe that at this time is a good use of our money.

總而言之，我們看到現金使用率低，現金產生量高，以及非常謹慎和負責任地購買股票，我們仍然認為目前這是對我們資金的良好利用。

Thanks for all that color. Shifting over to the demand outlook -- demand outlook in Q4, it was -- sorry, $500 million in Q4. And now you're saying back half $600 million to $650 million. Can you talk about the year-over-year growth? It shouldn't really be seasonal because we're really comparing Q4 '24 to Q4 '23?

感謝所有這些顏色。轉向需求前景—第四季的需求前景，抱歉，第四季為 5 億美元。現在你說的是 6 億至 6.5 億美元的一半。您能談談年成長情況嗎？它不應該是季節性的，因為我們真的是在比較 24 年第 4 季和 23 年第 4 季？

And then also, when you get to that level of revenue again. What do you expect the new gross margin outlook to be on that $625 million at midpoint, excluding IRA and also with IRA?

然後，當你再次達到那個收入水準時。您對 6.25 億美元中位數（不包括 IRA 和包含 IRA 的情況）的新毛利率前景有何預期？

So first of all, I'll start from describing the, I would call it, revenue environment between the 2 Q4s and then I'll answer the margin. As we mentioned in the prepared remarks, we saw that the Q4 sellout from or sell-through from our channels being approximately $500 million, which, by the way, based on our estimates, was actually even below the installation rates that happened throughout '24. We do understand that -- sorry, Q4 '23, we do understand that 2 things are happening and especially when we look into the beginning of the year.

因此，首先，我將從描述（我稱之為）兩個第四季之間的收入環境開始，然後我將回答利潤率。正如我們在準備好的評論中提到的，我們看到我們管道的第四季度銷售量或直銷額約為5 億美元，順便說一句，根據我們的估計，這實際上甚至低於整個2024 年的安裝率。我們確實了解——抱歉，23 年第 4 季度，我們確實了解正在發生兩件事，尤其是當我們展望今年年初時。

The first thing is that we saw a decline in the installation rates in the fourth quarter of '23 towards the end of the year, which is something that is usually happening because of the overall holiday season and the fact that actually winter in Europe started relatively early this year and was relatively strong.

首先，我們看到 23 年第四季的安裝率在接近年底時有所下降，這是通常會發生的事情，因為整個假期季節以及歐洲實際上冬季相對開始的事實今年年初，表現相對強勁。

And therefore, our belief is that throughout the year, first of all, the fact that you will see seasonality in Europe going back at least in the second and third quarter is something that we expect to increase the underlying demand that we saw compared to Q4. And since we are under-shipping to the channel at this point of time, we will simply have to eventually adjust into these, I would call it, installation levels that we see.

因此，我們相信，在全年中，首先，您將看到歐洲的季節性至少在第二季和第三季回升，我們預計與第四季相比將增加我們看到的潛在需求。由於目前我們向通路的出貨量不足，我們最終只需要適應這些（我稱之為）我們看到的安裝水準。

And this is why if we sold $500 million of sell-through and a higher installation, when we look at the markets one by one, we believe that we'll see at least, if not higher installation rates at the end of '24. And by the way, this is not including new products that Zvi mentioned, that are not baked into our plans, such as the commercial batteries, such as the trackers, such of the 330-kilowatt inverters. So we feel very much confident on this when we're looking at market by market.

這就是為什麼如果我們賣出 5 億美元的銷售量和更高的安裝率，當我們一一審視市場時，我們相信我們至少會在 24 年底看到更高的安裝率。順便說一句，這不包括Zvi提到的新產品，這些新產品沒有納入我們的計劃，例如商用電池，例如追蹤器，例如330千瓦逆變器。因此，當我們逐個市場進行考察時，我們對此非常有信心。

Once we are going to go through this year, what will happen is that we expect that we will eat the majority of the inventory or excess inventory that is in the channel, which we, by the way, at least at Q4 estimated about a quarter and a half worth of inventory, excess inventory sitting in the channel. And what we will see is that as the installation rates are continuing, our under-shipping will go down quarter-by-quarter until, again, we believe that at the end of the fourth quarter, they will be relatively minimal.

一旦我們要經歷今年，將會發生的事情是，我們預計我們將吃掉渠道中的大部分庫存或過剩庫存，順便說一句，我們至少在第四季度估計約為四分之一一半的庫存，多餘的庫存坐在渠道裡。我們將看到的是，隨著安裝率的持續增長，我們的出貨量將逐季度下降，直到我們再次相信，到第四季末，出貨量將相對最小。

So that's how we view the trends that we see. And again, these are based on discussions that we had with our customers, analysis of historical trends that we saw seasonality and market-by-market, also from political and other regulatory environment.

這就是我們如何看待我們所看到的趨勢。同樣，這些都是基於我們與客戶的討論、對季節性和逐個市場的歷史趨勢的分析，以及政治和其他監管環境的分析。

Gross margins in this situation. So when it comes to the gross margin, as I mentioned in the prepared remarks, we expect that once we're back to $600 million to $650 million of revenue a quarter, we should be at 30% to 32% gross margins, which already include 500 basis points of IRA benefit. And the way to get there is actually twofold. One, of course, is our regular product gross margin that will not change significantly from a cost point of view because of the high inventories, and we actually bake in a small ASP erosion throughout the year.

在這種情況下的毛利率。因此，說到毛利率，正如我在準備好的發言中提到的那樣，我們預計，一旦我們每季的收入恢復到6 億至6.5 億美元，我們的毛利率應該為30% 至32%，這已經包括 500 個基點的 IRA 福利。到達那裡的方法實際上是雙重的。當然，我們的常規產品毛利率不會因庫存高而從成本角度發生重大變化，而且我們實際上全年平均售價略有下降。

So we expect actually here that the costs will be relatively flat but price is going a little bit down, but we will see a much more normalized distribution between geographies and between customers. And therefore, product margins will go back a little bit.

因此，我們實際上預計成本將相對持平，但價格會略有下降，但我們將看到地區之間和客戶之間的分佈更加標準化。因此，產品利潤率將略有回升。

The second thing is this O-COGS part that we discussed in the past. And here, first of all, the combination of our cost-saving measures taken in Q1 when it comes to reduction in force. The closure of Mexico and reduction of China, coupled with a lot of work that we did in the quality of product front, starting from changing components in our products, to automotive-grade components that already shows a lower, of course, failure rates and therefore, requires lower cost of service of warranty and also lower warranty accruals and also a little bit of fixes that we did to our existing fleet when it comes to software that also reduces this amount.

第二件事是我們過去討論過的O-COGS部分。首先，我們在第一季採取的削減成本措施的組合。墨西哥的關閉和中國的減少，再加上我們在產品品質方面所做的大量工作，從改變產品中的組件開始，到已經表現出較低故障率的汽車級組件，因此，需要較低的保修服務成本和較低的保固應計費用，以及我們在軟體方面對現有機隊所做的一些修復，以減少這一金額。

So we expect to see even compared to the last time that we were at $600 million, a little bit of a lower fixed cost O-COGS as we saw before. So these will be the drivers that we currently see when we aim again being at 30% to 32% at $600 million to $650 million of revenues.

因此，我們預計，與上次的 6 億美元相比，我們之前看到的固定成本 O-COGS 會稍微降低一些。因此，當我們再次瞄準 6 億至 6.5 億美元收入的 30% 至 32% 時，這些將是我們目前看到的驅動因素。

Our next question comes from Brian Lee with Goldman Sachs.

我們的下一個問題來自高盛的布萊恩李。

Ronen, I apologize. I'm going to kind of beat the dead horse a little bit here. But a follow-up to Phil's question. So if we bridge, I know you gave a lot more gross margin clarity than you typically do, and it sounds like you'll do that for the next couple of quarters, but it sounds like there's 900 plus basis points -- direct 900 basis points plus of some of the other COGS. So given where you're guiding to for Q1, basically like flattish gross margin, you've got like 1,800 basis points you've spoken to.

羅南，我道歉。我要在這裡稍微打敗一下死馬。但菲爾問題的後續。因此，如果我們進行橋接，我知道您比通常情況下提供了更多的毛利率清晰度，聽起來您將在接下來的幾個季度中這樣做，但聽起來有900 多個基點- 直接900基點點加上一些其他銷貨成本。因此，考慮到您對第一季的指導，基本上就像毛利率持平一樣，您已經談到了大約 1,800 個基點。

What is the remaining bridge to get to the 30% to 32%? I guess that's where I'm struggling with because there's -- you've identified about 20 percentage points. Where does the other thousand basis points come from? And then just as a follow-up to that would be, previously, you talked about 500 basis points included for IRA credit. That was before the [45x] clarity on optimizers being applicable for [$0.11] came out in December. So has your view changed there? Or did you always embed $0.11 as your base case to you? Just trying to understand all the puts and takes, but definitely the bridge to the final 30% to 32%.

到達 30% 到 32% 的剩餘橋樑是什麼？我想這就是我正在努力解決的問題，因為您已經確定了大約 20 個百分點。另外一千個基點從哪裡來？作為後續行動，之前您談到了 IRA 信用包含 500 個基點。那是在 12 月針對適用於 [0.11 美元] 的優化器的 [45x] 明確性發布之前。那你的看法有改變嗎？或者您總是將 0.11 美元作為您的基本情況？只是想了解所有的看跌和看跌，但絕對是通往最終 30% 到 32% 的橋樑。

Okay. I'll try, at least, Brian. So I'll start from the second part, which is easy. As we said all along, our assumption was that we will get the $0.11 when it comes to optimizers. And therefore, our 500 basis points is already assuming that we will reach the capacity of inverters that we want to reach, which is 500 megawatts a quarter and a certain level of optimizers, which is, by the way, approximately 1 million optimizers a quarter that we expect to have this run rate by the end of Q3. So this is something that was already baked in the same projections that we gave.

好的。至少我會嘗試，布萊恩。所以我將從第二部分開始，這很簡單。正如我們一直所說的，我們的假設是，當涉及到優化器時，我們將獲得 0.11 美元。因此，我們的 500 個基點已經假設我們將達到我們想要達到的逆變器容量，即每季度 500 兆瓦和一定水平的優化器，順便說一下，每季度大約有 100 萬個優化器我們預計到第三季末就能達到這個運行率。所以這已經在我們給出的相同預測中得到了體現。

Actually, when it comes to the bridge to the 30% to 32%, the 2 things that you will see as we believe is that, first of all, on the product gross margin, you will see very modest increase after Q1. Again, Q1 is already going to recover a lot of this 930 basis points that we lost. And this is because of the more balanced mix of products that you will see. So actually, on the direct gross margin, you do not expect a lot. The thing that you should expect a lot is actually the O-COGS part. And I will do it very simple.

實際上，當涉及到 30% 到 32% 的過渡時，我們相信您會看到兩件事：首先，在產品毛利率方面，您將在第一季之後看到非常溫和的成長。同樣，第一季已經將我們損失的 930 個基點中的大部分恢復過來。這是因為您將看到更加平衡的產品組合。所以實際上，對於直接毛利率，你不會期望太多。您最應該期待的實際上是 O-COGS 部分。我會做得非常簡單。

If assuming that this number will be, just by means of example, $100 million in Q1 divided by $200 million of revenues, this is 50% gross margin impact. Just imagine that now we're moving into $600 million revenue. You need to take this 50% and divide it by 3. And here comes approximately -- 33% of gross margins that are just added. So that's the whole story.

舉例來說，如果假設該數字為第一季的 1 億美元除以 2 億美元的收入，則毛利率影響為 50%。試想一下，現在我們的收入將達到 6 億美元。您需要將這 50% 除以 3。這大約是剛剛添加的毛利率的 33%。這就是整個故事。

And to make it even more, I think easy to explain is that we've built our cost structure to support the company that is relatively diverse from a segment point of view, product point of view, serving complicated segments such as C&I, for example, and that means that we have a relatively heavier costs associated with this kind of a company that we've built.

更重要的是，我認為很容易解釋的是，我們已經建立了成本結構來支持從細分市場角度、產品角度來看相對多樣化的公司，例如為 C&I 等複雜細分市場提供服務，這意味著我們建立的這類公司的成本相對較高。

Once you reduce in revenues, even if you are reducing some of these costs, unless you reduce them exactly by the same level that you reduce your revenues, you see the P&L impact. And when you're working in such a small revenue basis as you see right now, the impact of gross margin is simply huge.

一旦收入減少，即使您減少了其中一些成本，除非您減少的成本與收入減少的水平完全相同，否則您會看到損益影響。當你在如此小的收入基礎上工作時，你現在看到的，毛利率的影響簡直是巨大的。

So again, most of the bridge economies of scale even without changing costs on our fixed cost, most of the bridge going to 30%, 32% will come simply economies of scale.

所以再說一遍，大多數橋樑的規模經濟即使不改變我們固定成本的成本，大多數橋樑也會達到30%、32%，只是規模經濟。

Appreciate that. Okay. Makes sense. One more for me, and I'll pass it on, and this one is maybe a little bit nitpicking. But I think last quarter, you said you were talking about like a $600 million to $700 million revenue quarterly view, end of this year, kind of when you normalize. Now you're saying $600 million to $650 million.

感謝。好的。說得通。再給我一份，我會把它轉達，而這個可能有點挑剔。但我認為上個季度，您說您正在談論 6 億至 7 億美元的季度營收，到今年年底，也就是您正常化的時候。現在你說的是 6 億到 6.5 億美元。

Is there something embedded in your updated view here in 3 months, share loss, pricing? It just seems like something's downticked a bit on a number in a range that may not have the most precision to begin with. So just trying to understand, one, has something changed? And 2, how much, I guess, confidence visibility on the $600 million to $650 million not maybe changing again going forward?

您在 3 個月後的更新視圖中是否嵌入了一些內容：份額損失、定價？看起來好像在一個範圍內的數字上有些東西被降低了一點，而這個範圍一開始可能不是最精確的。所以只是想了解，一，有什麼改變嗎？ 2，我猜，6 億至 6.5 億美元的信心能見度有多少可能不會再次改變？

Okay. So I think that when we said it's $600 million to $700 million, this is, if you remember, based on sell-through levels that we saw in Q3, and we assume that this is the level. Throughout this quarter, we did a lot of work going deeper into our channels to understand what's happening there, looking at installation rates, dissecting almost every country by the various trends that we see there. And talking, by the way, to a lot of the installers to actually understand exactly what they see as well, which was one of the things that we did a little bit less prior to this period. And we simply were able to get the things a little bit more accurate.

好的。因此，我認為，當我們說是 6 億至 7 億美元時，如果您還記得的話，這是基於我們在第三季度看到的銷售水平，並且我們假設這就是這個水平。在整個本季度，我們做了很多工作，深入我們的管道，了解那裡發生的事情，查看安裝率，根據我們看到的各種趨勢剖析幾乎每個國家。順便說一句，與許多安裝人員交談，以真正準確地了解他們所看到的內容，這是我們在此期間之前做得較少的事情之一。我們只是能夠讓事情變得更準確一些。

Our next question comes from Kashy Harrison with Piper Sandler.

我們的下一個問題來自 Kashy Harrison 和 Piper Sandler。

So just first one for me. Can you provide us with a, maybe a detailed walk on how we get from $500 million of sell-through in 4Q '23 to the $600 million to $650 million that you're talking about by the middle of the year. And then can you also give us a sense of what the total dollar of product that you're attempting to destock from the channel is with as much detail as you can, if possible? And I have a follow-up.

所以對我來說只是第一個。您能否向我們詳細介紹我們如何從 23 年第四季的 5 億美元銷售額增加到您所說的年中 6 億至 6.5 億美元。然後，如果可能的話，您能否盡可能詳細地告訴我們您試圖從通路中清倉的產品總金額是多少？我有一個後續行動。

So Kashy, first of all, the move from $500 million, $650 million and towards the second half of the year is mostly related to seasonality impacts that we see. And again, in some cases, a little bit of analysis of the market. So we went through and looked at how seasonality looked in Europe, by the way, prior to COVID and the war in Ukraine, you wouldn't believe it, but there were a little bit of a normal year.

因此，Kashy 首先，從 5 億美元、6.5 億美元到下半年的變動主要與我們看到的季節性影響有關。再次，在某些情況下，需要對市場進行一些分析。因此，我們仔細研究了歐洲的季節性情況，順便說一句，在新冠疫情和烏克蘭戰爭之前，你可能不會相信，但確實有一些正常的年份。

And when we looked at normal years, we usually saw an increase of about 17%, 20% from Q1 to Q2 and about 15% from Q2 to Q3. And by this, you simply see how the market is behaving. So that's the first thing that we did.

當我們觀察正常年份時，我們通常會看到增幅約為 17%，第一季到第二季增幅約為 20%，第二季到第三季增幅約為 15%。透過這個，您可以簡單地看到市場的表現。這就是我們做的第一件事。

Then we looked into the level that we see right now in Q4 and a little bit into January. What's happening in the Netherlands where we know that there was a little bit of a shift in the market. So we simply went one by one, and we looked to the United States and what are the levels that we see here, how the sell-through behaves.

然後我們研究了第四季和一月份的水平。我們知道荷蘭正在發生的事情，市場發生了一些變化。因此，我們只是一一進行了研究，我們看看美國，我們在這裡看到的水平是多少，銷售表現如何。

And we simply did it one by one. We added to this information coming from other sources. We have a software called Designer that allows installers to design systems with our homegrown product. We've looked at how many new designs were made in the past, how many of them were turned into real installations and what is the level that we see right now. So we took this into account. So we actually consolidated various sources of data, historical and current in order to get to this point.

我們只是一一做了。我們添加了來自其他來源的資訊。我們有一個名為 Designer 的軟體，允許安裝人員使用我們自主研發的產品設計系統。我們研究了過去有多少新設計，其中有多少變成了實際裝置，以及我們現在看到的水平。所以我們考慮到了這一點。因此，為了達到這一點，我們實際上整合了歷史和當前的各種資料來源。

I forgot the second part of your question. So please, a dollar of inventory that we expect to clear. So in that sense, as we mentioned before, when we see the sell-through of about $500 million in the fourth quarter, as we mentioned, based on this, we assume that there is about a quarter and half worth of excess inventory sitting in the channel. We believe that we'll clear as mentioned by Zvi, $200 million to $250 million in the first quarter. And from then, it's going to be gradually declining towards the end of the year. It's not going to be exactly linear, but it's going to decline towards the end of the year, we will still see a small amount in Q4. So that's basically our assumption.

我忘了你問題的第二部分。因此，我們希望清理一美元的庫存。因此，從這個意義上說，正如我們之前提到的，當我們看到第四季度的銷售額約為5 億美元時，正如我們所提到的，基於此，我們假設大約有四分之一半的過剩庫存存在這個頻道。我們相信，正如 Zvi 所提到的，我們將在第一季清除 2 億至 2.5 億美元。從那時起，到年底它將逐漸下降。它不會完全呈線性，但會在年底前下降，我們在第四季度仍會看到少量。這基本上就是我們的假設。

Thank you for all that detail. Really appreciate it. And then my follow-up question. So OpEx, post the tough restructurings, it's declining to, I think, you said $115 million at midpoint, and that's down from 12% -- that's down about 12%, I think, from 3Q at $130 million. But if we look at the change in revenues, though, you're saying sell-through of $600 to $650 million, which is down maybe 34% from the sell-in at $990 million. And so I guess my question is, what's behind the reluctance to more aggressively attack the operating cost structure?

謝謝你提供的所有細節。真的很感激。然後是我的後續問題。因此，在經歷了艱難的重組之後，我認為營運支出正在下降至您所說的中點1.15 億美元，這比12% 下降了——我認為比第三季度的1.3 億美元下降了約12% 。但如果我們看看營收的變化，就會發現銷售額為 6 億至 6.5 億美元，比銷售額 9.9 億美元下降了 34%。所以我想我的問題是，不願意更積極地攻擊營運成本結構的背後是什麼？

I think it's -- we use the $600 million to $650 million as an indicator of the trajectory. But we believe it's a transitional point and we are developing products and Ronen mentioned as well that even in that number of the $600 million to $650 million, we are not including products that we already released and will be generating revenue during 2024 albeit not with the dramatic impact on the overall number of 2024.

我認為，我們使用 6 億至 6.5 億美元作為軌跡指標。但我們認為這是一個過渡點，我們正在開發產品，Ronen 也提到，即使在6 億至6.5 億美元的數字中，我們也不包括我們已經發布的產品，並將在2024 年期間產生收入，儘管不包括對2024年的總數產生巨大影響。

So this is a transitionary point which we size the company for and are taking a lot of actions in order to be able to grow past that in the mid-term based on how we see the industry evolving and how we see our portfolio evolving in order to do that.

因此，這是一個過渡點，我們根據我們對行業發展的看法以及我們對我們的投資組合的看法，對公司規模進行了調整，並採取了很多行動，以便能夠在中期超越這一點。要做到這一點。

Our next question comes from Mark Strouse with JPMorgan.

我們的下一個問題來自摩根大通的馬克·斯特勞斯。

So a lot of focus on near term, and I appreciate all the numbers. I wanted to go back to the risk, though, I think on the last call, you had talked about kind of trying to protect your ability to -- if the market rebounds quickly, you wanted to be in a position to meet that demand and not airship and some of the other things that we've dealt with over the last several years.

因此，我們非常關注近期，我很欣賞所有的數字。不過，我想回到風險問題上，我想在上次電話會議上，您談到了試圖保護自己的能力——如果市場迅速反彈，您希望能夠滿足這種需求，並且不是飛艇和我們過去幾年處理過的其他一些事情。

The reduction in force, though, I mean, does that signal any kind of structural changes that you're looking out kind of over the medium-term? And then also kind of as a follow-up, is there any detail that you can provide as far as the reduction in force, the impact on resi versus C&I, U.S. versus Europe, kind of by market, by geography, anything you can provide on the reduction in force.

不過，我的意思是，兵力的減少是否預示著您在中期內所期望的任何結構性變化？然後，作為後續行動，您是否可以提供任何細節，例如減少兵力、對 Resi 與 C&I、美國與歐洲的影響，按市場、按地理位置，以及您可以提供的任何資訊關於力量的減少。

I think it correlates also to my answer to the previous question. Of course, the reduction in force was not uniform across the departments and the operations of the company. So we were very determined not to impact significantly our R&D capability to maintain strong presence in the regions and in terms of being close to the customers and being able to service them properly in a manufacturing infrastructure that we believe can meet the needs in the near future and be flexible to grow beyond that. So all of that was part of the assessment and the methodology that we implemented.

我認為這也與我對上一個問題的回答有關。當然，公司各部門和營運部門的裁員情況並不統一。因此，我們決心不顯著影響我們的研發能力，以保持在該地區的強大影響力，並在貼近客戶並能夠在我們相信可以滿足不久的將來滿足需求的製造基礎設施中為他們提供適當的服務方面並靈活地超越這一點。因此，所有這些都是我們實施的評估和方法的一部分。

And I would say even on even a more positive note, on a net number, more R&D people are working today on new product development than did a year ago, when a big part of them were working on component replacements and adjusting other things related to supply chain constraint.

我想說，即使是從更積極的角度來看，從淨數字來看，今天從事新產品開發的研發人員比一年前有更多，當時他們中的很大一部分致力於零部件更換和調整與供應鏈約束。

So in that regard, actually, I think we're in a better situation today. We did, as mentioned, discontinued some projects in the area of e-mobility. We discontinued some other peripheral projects in the broader solar and energy market and are very, very concentrated on residential and commercial and having an offering of a complete solution from everything that has to do with generation, storage and consumption, everything from inverters, batteries, EV chargers, water heaters, et cetera. So that, we believe, is where we see the future and we're investing the resources.

所以在這方面，實際上，我認為我們今天的情況更好。正如前面提到的，我們確實停止了電動車領域的一些專案。我們停止了更廣泛的太陽能和能源市場中的一些其他外圍項目，並且非常非常專注於住宅和商業，並提供完整的解決方案，涵蓋與發電、儲存和消費有關的一切，從逆變器、電池、電動車充電器、熱水器等。因此，我們相信，這就是我們看到未來並投資資源的地方。

Our next question comes from Colin Rusch with Oppenheimer.

我們的下一個問題來自科林·魯什和奧本海默。

With the change in volumes and looking at your component sourcing, can you talk a little bit about any adjustments that we should be thinking about in terms of actual component costs and volume breaks going the other way on you, guys, as you take volumes down and how that might reverse as you get through the balance of this year and into next year?

隨著產量的變化以及您的組件採購，您能談談我們應該考慮的任何調整嗎？在實際組件成本和產量中斷方面，夥計們，當您降低產量時，我們應該考慮哪些調整？當你度過今年剩餘時間並進入明年時，這種情況可能會如何逆轉？

So first of all, Colin, I'll start by the fact that given the inventory levels that we see right now. A lot of the costs will not change this year because if you take the inventory levels and expected revenues, you'll see that we're pretty much covered for this year. And of course, we will continue to manufacture in the U.S. to enjoy IRA and maintain other areas. So I don't expect a short-term situation here.

首先，科林，我將從考慮到我們目前看到的庫存水平這一事實開始。今年很多成本都不會改變，因為如果你考慮庫存水準和預期收入，你會發現今年我們幾乎已經涵蓋了。當然，我們將繼續在美國生產，以享受 IRA 並維持其他地區。所以我預計不會有短期狀況。

When it comes to the components themselves, first of all, we have some strategic components and strategic component manufacturers with whom we have agreements. With all of them we discussed the terms of the agreement and how to move forward. I think that most of the discussion is more on timing of consumption of volumes rather than pricing right now because we thought also when component prices spiked during COVID, usually, this will be more related to overall, I would say, global trends rather than the volumes that we're consuming, yes or no.

說到零件本身，首先我們有一些戰略零件以及與我們有協議的戰略零件製造商。我們與他們所有人討論了協議條款以及如何前進。我認為，大多數討論更多的是關於消費量的時間安排，而不是現在的定價，因為我們還認為，當零部件價格在新冠疫情期間飆升時，通常，這將與總體趨勢更相關，我想說的是，全球趨勢而不是我們消耗的數量，是或否。

So I do not expect to see a lot of changes there. There is always, by the way, a little bit of a change to the cost per unit in manufacturing because the more units you manufacture usually, that goes down, but at least when it comes to the level that we see, what we try to do is to reduce manufacturing locations instead of maintaining many locations and reduce the volumes in each one of them. So this is something that is relatively also going to be staying flat. So no major changes are expected in the very near future.

所以我預計不會有太多變化。順便說一句，製造過程中的單位成本總是會發生一些變化，因為通常製造的單位越多，成本就會下降，但至少當談到我們看到的水平時，我們試圖要做的就是減少製造地點，而不是維持許多地點，並減少每個地點的產量。因此，這相對而言也會保持平穩。因此，預計在不久的將來不會發生重大變化。

Excellent. And then with your sales team, given suppressed levels of sales. Obviously, you, guys, have had a really effective sales team historically. Can you talk about any sort of retention metrics that you're having to engage in? Or are you giving folks a little bit bigger geographies to work with? How is that team changing shape and incentivized going forward?

出色的。然後考慮到銷售水平受到抑制，與您的銷售團隊合作。顯然，你們，夥計們，歷史上一直擁有一支非常有效率的銷售團隊。您能談談您必須參與的任何類型的保留指標嗎？還是你為人們提供了更大的工作地域？該團隊如何改變形態並激勵前進？

Yes. So can I also -- in one of the previous questions, our global sales force was less impacted by the reduction in force because we wanted to keep the strong sales force that we have and the strong links to the customers that we have. And I think that, that by itself buys some level of loyalty and motivation.

是的。我也可以 - 在先前的問題之一中，我們的全球銷售隊伍受到人員減少的影響較小，因為我們希望保持我們擁有的強大銷售團隊以及與我們擁有的客戶的牢固聯繫。我認為，這本身就可以帶來一定程度的忠誠度和動力。

Our sales force to a large extent, has been with us for a long time and is very experienced in the industry and very experienced with the company to understand that cycles take place and have optimism about the continuation of the cycle to the other side of it.

我們的銷售人員在很大程度上已經在我們身邊工作了很長時間，在行業和公司方面都有豐富的經驗，能夠理解週期的發生，並對週期的延續持樂觀態度。 。

And together with that, we are making sure that they are properly incentivized for the work that is maybe a bit more difficult now than in a bullish market. But I think we're happy with the level of engagement and motivation and optimism that we see across the sales force in the various geographies.

同時，我們正在確保他們得到適當的激勵，以從事現在可能比牛市更困難的工作。但我認為我們對不同地區銷售人員的參與度、積極性和樂觀態度感到滿意。

Our next question comes from Christine Cho with Barclays.

我們的下一個問題來自巴克萊銀行的 Christine Cho。

My first question, how do you determine how to undership every quarter? I think you mentioned that you're going to continue to undership through year-end, just less in the subsequent quarters. But why not just front load that and not undership? And then with the forecast that you discussed in your trajectory of revenue improvement, how do you factor in potential market share losses or gains and any pricing decreases that you might look to do as we move through the year?

我的第一個問題，你如何確定每季的出貨量不足？我想你有提到過，到年底你將繼續減少出貨量，只是在接下來的幾季減少。但為什麼不直接裝載而不是裝載呢？然後，根據您在收入改善軌跡中討論的預測，您如何考慮潛在的市場份額損失或收益，以及您在這一年中可能希望採取的任何定價下降措施？

Yes. So the first part of the question is actually, it's more the customers determine that than we determine that. And Ronen mentioned, because of the breadth of our product, even though we talk about a lot of inventory in the channel, there are various products that are still either in high demand or in some way short, and a lot of the revenue is driven from those. So we're not trying to push on to the customers' product that they have and don't need. We're responding to their needs, either in anticipation of something that's going to happen in the market or as their inventories decline for specific product lines.

是的。所以問題的第一部分其實是，更多的是客戶決定的，而不是我們決定的。 Ronen 提到，由於我們產品的廣度，儘管我們談論渠道中有大量庫存，但仍有各種產品要么需求量大，要么在某種程度上短缺，並且很大一部分收入是由從那些。因此，我們並不是試圖向客戶推銷他們擁有但不需要的產品。我們正在響應他們的需求，無論是預期市場上將發生的事情，還是隨著他們特定產品線的庫存下降。

In our modeling and plans, we obviously have a lot of focus on share and believe that we're taking actions that will enable us to gain share. We did not factor anything dramatic in that regard into our assumptions when looking at the projected sell-through numbers that we gave.

在我們的建模和計劃中，我們顯然非常關注份額，並相信我們正在採取的行動將使我們能夠獲得份額。在查看我們給出的預期銷售數據時，我們沒有將任何戲劇性的因素納入我們的假設中。

Our next question comes from Julien Dumoulin-Smith with Bank of America.

我們的下一個問題來自美國銀行的 Julien Dumoulin-Smith。

This is Cameron Lochridge on for Julien. Can you, guys, hear me okay?

我是朱利安的卡梅倫·洛奇里奇。夥計們，你們能聽我說嗎？

Yes, we do.

是的，我們願意。

Awesome. So I just wanted to come back actually to the last question on pricing, kind of how you see that evolving, particularly in Europe with the inventory challenges that's taking place over there. Either from a competitive standpoint, how are you seeing competitors behave? And how does the pricing strategy evolve for you, guys, kind of as the year progresses in Europe?

驚人的。所以我實際上想回到關於定價的最後一個問題，你如何看待定價的演變，特別是在歐洲，那裡正在發生庫存挑戰。從競爭的角度來看，您如何看待競爭對手的行為？隨著歐洲這一年的進展，夥伴們，你們的定價策略是如何演變的？

So I'll start from what we see and then what it means for us. First of all, we do see an intense -- intensifying, I would say, pricing environment in Europe right now. The fact is that, as mentioned, everyone is trying to push their volumes to try to grab some share. And we do see that across the board, at least when it comes to Chinese string inverters prices are going down, sometimes a little bit more than we used to see in the past. Now the channels are starting to clear inventories, then prices can play a little bit of a part.

因此，我將從我們所看到的開始，然後討論它對我們意味著什麼。首先，我們確實看到歐洲目前的定價環境正在加劇。事實上，正如前面提到的，每個人都在努力提高銷量，以搶佔一些份額。我們確實看到，至少在中國組串式逆變器方面，價格正在全面下降，有時比我們過去看到的要低。現在渠道開始清理庫存，那麼價格就可以發揮一點作用。

When it comes to us, we will need to adjust prices along this year. And as we've mentioned, we expect to see prices going down across the board in, I would say, mid- to high single digit this year. Not all of it is going to be in the same continent or not on the same product, but in general.

對我們來說，今年我們需要調整價格。正如我們所提到的，我們預計今年價格將全面下降，幅度為中高個位數。並非所有這些都會發生在同一大陸或不在同一產品上，但總的來說。

But the other side that still plays a very important part is actually the fact that what is the offering that is provided. Because today, the offering that we provide is considered to be a premium product, comes from the software capabilities from the abilities to respond to dynamic charges. The fact that we can make a lot of changes to our software over the air, over time and change the product capabilities in relation to what we see in the market, our DC capital batteries. And therefore, we have certain benefits that allows us to continue to maintain our premium position.

但另一方面仍然發揮著非常重要的作用，實際上是所提供的產品是什麼。因為今天，我們提供的產品被認為是優質產品，來自於響應動態費用的軟體功能。事實上，隨著時間的推移，我們可以透過無線方式對我們的軟體進行大量更改，並根據我們在市場上看到的直流資本電池來改變產品功能。因此，我們有一定的優勢，使我們能夠繼續保持我們的優質地位。

So we're not completely immune to price reductions that will happen in this market. At the same time, at least what we see right now is not something that necessitates a very big change in our pricing strategy.

因此，我們並不能完全免受這個市場將發生的降價的影響。同時，至少我們現在所看到的情況並不需要對我們的定價策略進行很大的改變。

Our next question comes from Corinne Blanchard with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Corinne Blanchard。

Most of it have been already talked about, but maybe if you can try to talk a little bit more about the competition, especially in the U.S. We definitely have heard over the last 6 months increased competition coming from Tesla. There are some of your peers as well have some contracts expiring, so that could give you with some advantage. So maybe if you can talk a little bit about the dynamic here in terms of competition in the U.S.

其中大部分內容已經討論過，但也許您可以嘗試更多地討論競爭，尤其是在美國。在過去 6 個月中，我們肯定聽說特斯拉的競爭加劇。您的一些同事也有一些合約即將到期，因此這可能會給您帶來一些優勢。那麼也許您可以談談美國競爭方面的動態。

Yes, it's a competitive environment and always has been, we don't sense a big shift in the competitive environment in the U.S., at least not right now. We know that new products are coming in. And I'm sure there are good products coming. There are a good string inverters available already in the market.

是的，這是一個競爭環境，而且一直都是如此，我們沒有感覺到美國的競爭環境發生了重大轉變，至少現在沒有。我們知道新產品即將推出。而且我確信會有好的產品即將推出。市面上已經有很好的組串逆變器。

Today, the North American market had for many years now, understanding and tendency towards module-level electronics and all of the benefits of that and in terms of energy harvest, safety, et cetera. So we expect that, that will still be the main philosophy in the North American market. And so far, we don't see a strong shift in another direction. But that said, in Europe, there is a good offering of string inverters. And we elaborated before on the competitive environment, environment over there. So more competition is coming in, and it's becoming more challenging, but we're very comfortable with the quality of our offering and its differentiation.

如今，北美市場多年來一直對模組級電子產品及其在能量收集、安全等方面的所有好處有了解和趨勢。所以我們預計，這仍然是北美市場的主要理念。到目前為止，我們還沒有看到另一個方向的強烈轉變。但話雖如此，在歐洲，有許多組串逆變器可供選擇。我們之前詳細闡述了那裡的競爭環境、環境。因此，更多的競爭即將到來，並且變得更具挑戰性，但我們對我們產品的品質及其差異化感到非常滿意。

Our next question comes from Joseph Osha with Guggenheim Partners.

我們的下一個問題來自古根漢合夥人公司的約瑟夫‧奧沙。

Two questions. First, you've talked a lot about what you expect to happen in the U.S. relative to Europe as the year progresses. So as you think about the $600 million and $650 million run rate. I'm wondering how we should think about that breaking down Europe versus the U.S. and also perhaps commercial versus residential?

兩個問題。首先，您已經談論了很多關於隨著時間的推移，您預計美國相對於歐洲會發生什麼。當你考慮 6 億美元和 6.5 億美元的運行率。我想知道我們應該如何考慮歐洲與美國以及商業與住宅的分裂？

Joe, can you please repeat the question?

喬，你能重複這個問題嗎？

Let's -- as we think about Q4 and the $600 million to $650 million you've talked about, how much of that do you think might be in Europe versus the U.S. today? And how do you think that breakdown might look in terms of residential versus commercial market?

讓我們想想第四季度以及您談到的 6 億至 6.5 億美元，您認為今天歐洲與美國的金額有多少？您認為住宅市場與商業市場的區隔如何？

Yes. I think. We -- resi versus commercial, as we said, we anticipate commercial to grow at a higher rate than residential. So we've typically been on a megawatt basis in recent quarters, roughly 50-50 between the two. We expect that looking at the trajectory into 2024 that the ratio on a megawatt basis, which is very different, of course, than the revenue basis will lean a bit more towards commercial.

是的。我認為。正如我們所說，我們——住宅與商業相比，我們預計商業的成長速度將高於住宅。因此，最近幾季我們通常以兆瓦為單位，兩者之間大約是 50-50 兆瓦。我們預計，從 2024 年的軌跡來看，以兆瓦為基礎的比率（當然，這與收入基礎有很大不同）將更傾向於商業化。

In terms of the ratio of U.S. to Europe, so as I mentioned, we expect mild growth in the 2 segments in Europe on residential and commercial. And we expect stronger growth in North American commercial and some level of stagnation in North America residential. So overall, I think relative to Q4, we do expect Europe to be a bigger portion of our sell-through and eventually revenue going into '24.

就美國與歐洲的比例而言，正如我所提到的，我們預計歐洲的住宅和商業兩個領域將出現溫和成長。我們預計北美商業將出現更強勁的成長，而北美住宅將出現一定程度的停滯。因此，總的來說，我認為相對於第四季度，我們確實預計歐洲將在我們的銷售量和最終收入中佔據更大的比例，進入 24 年。

And closer to how it was in the majority of '23, where Europe was a much higher portion than North America. So Q4 was a bit different. We think that going into continuation of the year, the ratio of Europe will increase relative to the ratio of the U.S. and the ratio of commercial will increase slightly compared to residential.

更接近 23 年大部分時間的情況，歐洲所佔比例遠高於北美。所以第四季有點不同。我們認為，進入今年，歐洲相對於美國的比例將有所上升，商業相對於住宅的比例將略有上升。

Our next question comes from Tristan Richardson with Scotiabank.

我們的下一個問題來自豐業銀行的特里斯坦·理查森。

Appreciate all the commentary. A lot has been asked and answered. But maybe just curious, dialing into Europe a little bit. Can you talk about maybe where the Netherlands has been for you historically as a component of Europe? And then where you see that going in the $600 million to $650 million, particularly as we are sort of in limbo in terms of what happens long term from a policy perspective?

感謝所有評論。已經提出了很多問題並得到了答案。但也許只是好奇，稍微了解一下歐洲。您能談談荷蘭作為歐洲的一個組成部分在歷史上對您的定位嗎？那麼，您認為 6 億至 6.5 億美元的金額在哪裡，特別是從政策角度來看，我們在長期發生的情況方面處於不確定狀態？

Yes. The Netherlands is -- I think, it's well known that it was a very strong market for us historically. Actually, just as a reference point, I think we have an installed base of more than 800,000 -- more than 800,000 residential homes in the Netherlands that have a SolarEdge system on them.

是的。我認為，荷蘭歷史上對我們來說是一個非常強大的市場，這是眾所周知的。實際上，作為一個參考點，我認為我們在荷蘭擁有超過 800,000 個安裝基數——超過 800,000 個住宅安裝了 SolarEdge 系統。

And we believe that someday and maybe that day after the -- after the ruling of last week is a bit further out there than we thought originally, many of these 800,000 homes will have a SolarEdge battery added to the SolarEdge solar system that already exists. So the Netherlands is a very significant stronghold for us and has been a good market for us and kind of on par to Germany, in terms of the size of business for us, although very different in scale and size of the market.

我們相信，有一天，也許是上週的裁決之後的那一天，這比我們最初想像的要遠一些，這 80 萬戶家庭中的許多家庭將在現有的 SolarEdge 太陽能係統中添加 SolarEdge 電池。因此，荷蘭對我們來說是一個非常重要的據點，一直是一個很好的市場，就我們的業務規模而言，與德國相當，儘管市場規模和規模有很大不同。

We mentioned -- I mentioned in the prepared remarks, the -- compared to the baseline that existed in 2022, during the surge in demand, the Netherlands for us, increased installation rates by about 50% in the early part of 2023 and then declined from there, 50% to be about, I think, 20% or 30% below the 2022 run rate -- is the installation run rate in the Netherlands right now.

我們提到——我在準備好的發言中提到——與 2022 年的基線相比，在需求激增期間，荷蘭對我們來說，在 2023 年初安裝率增加了約 50%，然後下降我認為，從那時起，荷蘭目前的安裝運行率將比2022 年的運行率低50% 左右，即20% 或30%。

And it's -- as I said, earlier, we believe that the ruling which was not to overturn net metering right now, is overall positive, but it doesn't really give very strong long-term clarity to the market. So I think people will go from saying, "I don't want solar" or "you maybe don't need solar because I'm not going to get net metering" to saying, "okay, I'll have net metering for the near future".

正如我之前所說，我們認為目前不推翻淨計量的裁決總體上是積極的，但它並沒有真正為市場帶來非常強烈的長期清晰度。因此，我認為人們會從說「我不需要太陽能」或「你可能不需要太陽能，因為我不會獲得淨計量」到說「好吧，我將獲得淨計量」不久的將來」。

It maybe makes sense to put solar, but it's hard to say if this really is going to drive a surge in the market. We think it's going to improve but maybe not quickly to the level of 2022 and definitely not to the level of 2023. So it's still a strong and good market, and we also see already an uptick in battery adoption, but it is lower than what it used to be in 2022 for us and definitely of the peak of 2023.

投入太陽能也許是有意義的，但很難說這是否真的會推動市場激增。我們認為它會有所改善，但可能不會很快達到2022 年的水平，也絕對不會達到2023 年的水平。因此，這仍然是一個強勁而良好的市場，我們也看到電池採用率已經有所上升，但低於2022 年的水平。對我們來說，這是 2022 年，而且肯定是 2023 年的頂峰。

Our next question comes from Ameet Thakkar with BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場的 Ameet Thakkar。

Just 1 question for me. I just wanted to come back to, I guess, the comments earlier on the kind of expectation of free cash flow for entering 2024. I think the expectation was that 4Q was going to be positive free cash flow. And I was just kind of wondering if you could kind of maybe pick a part like was it an expected increase in finished goods inventory or changes in payment terms on the AR balance that caused you, guys, to kind of deviate from that and kind of push that out a little bit further in 2024 with respect to free cash flow generation?

只是問我 1 個問題。我想我只是想回到之前關於進入 2024 年自由現金流預期的評論。我認為預期是第四季度將出現正自由現金流。我只是想知道你們是否可以選擇一個部分，例如成品庫存的預期增加或應收帳款餘額付款條件的變化，導致你們，夥計們，有點偏離這一點，在2024 年自由現金流生成方面是否會進一步推遲？

Sure. So I think it's the combination of the 2. I'll start by the fact that we needed to extend payment terms. Sometimes we want it. Sometimes we had to extend the payment terms to our customers. We do understand that some of our customers are -- do experience a lot of, I would call it, cash difficulties right now because of the fact that if sell-through is lower, they also collect a little bit lower.

當然。所以我認為這是兩者的結合。我將從我們需要延長付款條件的事實開始。有時我們想要它。有時我們必須向客戶延長付款期限。我們確實明白，我們的一些客戶現在確實經歷了很多，我稱之為現金困難，因為如果銷售量較低，他們的收入也會降低一點。

The way that we work, by the way, with large customers give us a little bit more confidence in the ability to collect those. But I would say that sometimes -- we wanted sometimes we were forced to collect a little bit slower. One interesting phenomenon was that some customers, it's end of the year, they need to present their financials. They simply chose to pay instead of the 30th of December. On the third of January, we have those as well. So that was the first part.

順便說一句，我們與大客戶的合作方式讓我們對收集這些客戶的能力更有信心。但我想說的是，有時我們希望有時我們被迫收集得慢一點。一個有趣的現像是，有些客戶，到了年底，他們需要展示他們的財務狀況。他們只是選擇付款，​​而不是 12 月 30 日。一月三日，我們也有這些。這是第一部分。

The second part was, again, the inventory buildup. We had about $200 million of inventory buildup that happened. We -- in addition, of course, to the inventory buildup that we saw in Q -- in Q4, we usually pay to our vendors in average within 60 days. So not only that we paid for the inventory buildup that happened in Q4, we paid quite a lot for some of the buildup that happened in Q3 into the sales of Q4, they did not materialize eventually.

第二部分同樣是庫存累積。我們的庫存累積了大約 2 億美元。當然，除了我們在第四季度看到的庫存累積之外，我們通常在平均 60 天內向供應商付款。因此，我們不僅為第四季度發生的庫存累積支付了費用，還為第三季度發生的一些庫存累積支付了相當多的費用，這些累積進入了第四季度的銷售，但它們最終並未實現。

So the combination of the 2 was the end result of what we saw. And I think that it's mostly the very abrupt stop of revenues -- or sorry, reduction in revenues, coupled with the customers, I would call it, inability to pay where needed.

所以這兩者的結合就是我們所看到的最終結果。我認為這主要是收入的突然停止——或者抱歉，收入減少，加上客戶，我稱之為，無法在需要時付款。

Our next question comes from Austin Moeller with Canaccord.

我們的下一個問題來自 Canaccord 的 Austin Moeller。

My first question here, what is the attach rate that you're currently seeing for home batteries with inverters in the U.S. versus in Europe?

我的第一個問題是，您目前在美國和歐洲看到的帶有逆變器的家用電池的連接率是多少？

So it obviously varies significantly by country. So Germany attach rates remain in the 80% to 90%. Well, in Italy, I'm working off of memory here. So -- but it's in the range of 40% to 50% -- 50%. And then as I said before, in the Netherlands, it's up 10%. If we take these as representative markets in the U.S. -- in Europe, excuse me.

因此，不同國家的情況顯然差異很大。所以德國的附加率維持在80%到90%。嗯，在義大利，我在這裡憑著記憶工作。所以——但它在 40% 到 50%——50% 的範圍內。正如我之前所說，在荷蘭，它上漲了 10%。如果我們將這些作為美國和歐洲的代表性市場，請原諒。

In the U.S., it also varies, of course, by market. So in California, overall attach rates right now is about 40% to 50%. But that splits, of course, between some of the remaining NEM 2.0 installations that don't necessarily take a battery and the NEM 3.0 that do take a batteries. We mentioned that the sell-through of batteries in the U.S. was up 40-something percent in the fourth quarter. So you can assume that the majority of this is going to California and the attach rate is gradually increasing.

當然，在美國，它也因市場而異。因此，在加州，目前的整體附加率約為 40% 至 50%。當然，這會分為一些剩餘的 NEM 2.0 安裝（不一定需要電池）和 NEM 3.0 安裝（需要電池）。我們提到第四季度美國電池銷量成長了 40% 左右。因此，您可以假設其中大部分都流向加利福尼亞州，並且附加率正在逐漸增加。

In the other states in the U.S., it's fairly low. I would, again, off memory, it's probably in the range of between 10% to 15% or so.

在美國其他州，這一比例相當低。再一次，根據記憶，它可能在 10% 到 15% 左右的範圍內。

Our next question comes from Vikram Bagri with Citi.

我們的下一個問題來自花旗集團的 Vikram Bagri。

I apologize, but I wanted to ask one more question about the long-term revenue outlook. Zvi, I think, you mentioned the outlook assumes some market gains. I was wondering if you can highlight the markets where you see market share in opportunity and what the strategy will be to capture that market share? And it doesn't sound like the second half assumes any inventory restocking, but I wanted to clarify, fourth quarter, sort of the outlook $600 million to $650 million does not assume any inventory restocking in any way? And then I have a follow-up.

我很抱歉，但我想再問一個關於長期收入前景的問題。 Zvi，我認為，您提到前景假設市場有所上漲。我想知道您是否可以重點介紹您認為有機會獲得市場份額的市場以及捕獲該市場份額的策略是什麼？聽起來下半年並沒有假設任何庫存補貨，但我想澄清一下，第四季度，6億至6.5億美元的前景並不假設任何庫存補貨？然後我有一個後續行動。

On the first question, I think I discussed, there is the topic of new segments that we have entered that we previously didn't serve at all. And obviously, there, every shipment is a market share gain. And the Ground Mount, now that we're shipping 300-kilowatt inverters, we're gaining market share. And the same is in trackers, and same elsewhere. From a revenue perspective, the scale is not huge, and we also didn't include it in the assumptions.

關於第一個問題，我想我討論過，我們已經進入了我們以前根本沒有服務過的新細分市場的主題。顯然，每一次出貨都會帶來市場佔有率的成長。至於地面安裝，現在我們正在運送 300 千瓦逆變器，我們正在贏得市場份額。追蹤器也是如此，其他地方也是如此。從收入角度來看，規模並不大，我們也沒有將其納入假設。

In the core markets, share gains are obviously much more incremental. We didn't -- we don't give specific numbers or expectations or market. We have plans. We didn't bake them into the assumptions on the sell-through trajectory. Leading on into revenue trajectory.

在核心市場，份額的成長顯然要大得多。我們沒有——我們沒有給出具體的數字、預期或市場。我們有計劃。我們沒有將它們納入銷售軌跡的假設中。進入收入軌道。

Vikram, can you clarify again the second question just to make sure that we understand it correctly?

Vikram，您能否再次澄清第二個問題，以確保我們正確理解它？

I was asking the outlook for fourth quarter, $600 million to $650 million does not assume any inventory restocking in any way. I believe it does not, but I wanted to clarify.

我問的是第四季的前景，6億至6.5億美元不假設任何庫存補貨。我相信事實並非如此，但我想澄清一下。

It assumes that the distribution channel will be by then at the balanced inventory level that they typically want to maintain that historically is somewhere in the range of 60 to 90 days of inventory is what our experience is that most distributors and channels want to hold. So that is kind of what we modeled -- again a bit variations on countries and regions and products, if that is what -- if that helps with the question.

它假設分銷管道屆時將處於他們通常希望維持的平衡庫存水平，歷史上的庫存水平在 60 到 90 天的庫存範圍內，這是我們的經驗是大多數分銷商和渠道希望保持的水平。這就是我們建模的內容——國家、地區和產品的一些變化，如果是的話——如果這有助於解決這個問題。

We have no further questions at this time. I now return control of the conference back over to the presenters.

目前我們沒有進一步的問題。我現在將會議的控制權交還給演示者。

Okay. Just wanted to thank everyone for joining us on the call today, and have a good evening. Thank you.

好的。只是想感謝大家今天加入我們的電話會議，祝大家晚上愉快。謝謝。

This concludes today's teleconference. You may now disconnect your lines. Thank you for participating.

今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。