(SEDG) 2024 Q1 法說會逐字稿

Hello, and welcome to the SolarEdge conference call for the first quarter ended March 31, 2024. This call is being webcast live on the company's website at www.solaredge.com in the Investors section on the Event 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 2024 年 3 月 31 日的第一季 SolarEdge 電話會議。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 Investor 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, Chloe, and good afternoon, everyone. Thank you for joining us to discuss SolarEdge's operating results for the first quarter ended March 31, 2024, as well as the company's outlook for the second quarter of 2024.

謝謝你，克洛伊，大家下午好。感謝您與我們一起討論 SolarEdge 截至 2024 年 3 月 31 日的第一季營運表現以及該公司 2024 年第二季的展望。

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 first quarter ended March 31, 2024. Ronen will review the financial results for the first quarter, followed by the company's outlook for the second 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 2024 年 3 月 31 日的第一季業績。

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. 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 substitutes for or superior to financial measures prepared in accordance with U.S. GAAP.

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 稀釋每股淨收益，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。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視為根據美國公認會計原則制定的財務措施的替代品或優於其。

Listeners who do not have a copy of the quarter ended March 31, 2024, press release or the supplemental material may obtain a copy by visiting the Investor Relations section of the company's website.

沒有截至 2024 年 3 月 31 日的季度副本、新聞稿或補充資料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。

And I will now turn the call over to Zvi.

我現在將把電話轉給 Zvi。

Thank you, J.B. Good afternoon, and thank you all for joining us on our conference call.

謝謝 J.B. 下午好，謝謝大家參加我們的電話會議。

Starting with highlights of our first quarter results, we concluded the quarter with approximately $204 million in revenue. Revenues from our solar business were approximately $190 million, while revenues from our nonsolar businesses were approximately $14 million. This quarter, we shipped 1.1 million power optimizers, 69,000 inverters and 128-megawatt hour of batteries.

從我們第一季業績的亮點開始，我們本季的營收約為 2.04 億美元。我們的太陽能業務收入約為 1.9 億美元，而非太陽能業務收入約為 1,400 萬美元。本季度，我們出貨了 110 萬個功率優化器、69,000 個逆變器和 128 兆瓦時的電池。

As we have done on previous calls, I will start with the market dynamics we see in the various regions and end markets, our underlying demand in these markets and the implications on sell-through and inventory cleanup. Starting with the U.S. residential segment, as we commented last quarter, we did not expect significant changes in this market as long as interest rates and electricity prices remain at recent levels. As a result, our first quarter results largely reflect traditional seasonality with inverter and optimizer sell-through down 19% quarter-over-quarter.

正如我們在先前的電話會議中所做的那樣，我將從我們在各個地區和終端市場看到的市場動態、我們在這些市場的潛在需求以及對銷售和庫存清理的影響開始。從美國住宅市場開始，正如我們上季度評論的那樣，只要利率和電價保持在近期水平，我們預計該市場不會發生重大變化。因此，我們第一季的業績在很大程度上反映了傳統的季節性因素，逆變器和優化器的銷量較上季下降了 19%。

However, we have seen continued strength in the uptake of our single-phase battery product in the U.S. market, and sell-through of our battery product was up 26% quarter-over-quarter. This strength is coming from California with the accelerating adoption of battery-tied NEM 3.0 systems, as well as Puerto Rico where customers need full backup capability. Our DC coupled solution is particularly well suited for these applications given the incremental energy that is generated when compared with many alternative products.

然而，我們看到我們的單相電池產品在美國市場的採用持續強勁，我們的電池產品的銷售量較上季成長了 26%。這種優勢來自加州和波多黎各，前者加速採用電池連接的 NEM 3.0 系統，後者的客戶需要完整的備援能力。與許多替代產品相比，我們的直流耦合解決方案特別適合這些應用，因為它產生的能量增量。

Moving to U.S. commercial. Sell-through was down 22% from a record fourth quarter, largely due to seasonality. We are encouraged by the trajectory of this market, which is expected to grow this year due, among other reasons, to the continued demand from large enterprise customers who want to standardize their global portfolios on our product. On a year-over-year basis, sell-through of our commercial inverters was up 42% in the U.S.

轉向美國商業。銷售量較創紀錄的第四季下降了 22%，這主要是由於季節性因素。我們對該市場的發展軌跡感到鼓舞，由於大型企業客戶希望在我們的產品上標準化其全球產品組合的持續需求，該市場預計今年將成長。我們的商用逆變器在美國的銷量較去年同期成長了 42%。

Moving to Europe. The market started the year slowly due to a slightly longer-than-usual winter and continued digestion of recent regulatory changes. In residential, sell-through in Europe was seasonally down 19% quarter-over-quarter, with inverters and optimizers down 20% and batteries down 13%. In commercial, sell-through was down 2%, reflecting the relative strength of this market and the good position we have based on the same dynamics that I mentioned when discussing the U.S. commercial market.

搬到歐洲。由於冬季略長於往年且持續消化近期監管變化，市場開年緩慢。在住宅領域，歐洲的銷量環比季節性下降 19%，其中逆變器和優化器下降 20%，電池下降 13%。在商業領域，銷量下降了 2%，反映了該市場的相對實力以及我們基於我在討論美國商業市場時提到的相同動態而擁有的良好地位。

Touching on some of our major markets in Europe. In Germany, the market started the year more slowly than anticipated as declining electricity prices have negatively impacted the economics of solar. There is, however, an expectation that market dynamics will improve given the passing of Solar Package I by the German Parliament 2 weeks ago, which will simplify regulatory requirements on new solar installations. Among other measures in the package are increased feed-in tariffs for commercial installations and incremental support for agri photovoltaic projects, which we expect will increase demand for our products, specifically, given our strengths in these segments.

談到我們在歐洲的一些主要市場。在德國，由於電價下降對太陽能經濟產生了負面影響，今年市場開局速度比預期慢。然而，鑑於德國議會兩週前通過了太陽能一攬子計劃，預計市場動態將會改善，這將簡化對新太陽能裝置的監管要求。該計劃中的其他措施包括提高商業設施的上網電價和增加對農業光伏項目的支持，我們預計這將增加對我們產品的需求，特別是考慮到我們在這些領域的優勢。

In the Netherlands, consumer confidence is recovering slowly following the clarifications around net metering in the fourth quarter, while the market remains at relatively depressed levels compared to recent years. We expect the market to continue to recover slowly, and we are focusing on developing solutions, in particular on the software side that will enable us to gain share in this market. I will expand on some of these initiatives in a moment.

在荷蘭，隨著第四季度淨計量的澄清，消費者信心正在緩慢恢復，但與近年來相比，市場仍處於相對低迷的水平。我們預計市場將繼續緩慢復甦，我們正在專注於開發解決方案，特別是在軟體方面，這將使我們能夠在這個市場中獲得份額。我稍後將詳細介紹其中一些舉措。

In the rest of world, we have not seen significant changes in market dynamics outside of typical seasonality. And our revenues continue to be largely derived from Thailand, Taiwan, South Africa, Australia and Israel.

在世界其他地區，我們沒有看到典型季節性以外的市場動態發生重大變化。我們的收入仍主要來自泰國、台灣、南非、澳洲和以色列。

The aggregation of these trends and dynamics, in particular the slower pace of seasonal pickup in Germany, translated into first quarter sell-through of approximately $440 million, which was slightly below our expectations. The lower level of sell-through resulted in us under-shipping demand by approximately $250 million, at the lower end of the $250 million to $300 million range we anticipated and discussed in our call last quarter.

這些趨勢和動態的綜合，特別是德國季節性回升速度的放緩，轉化為第一季的銷售額約為 4.4 億美元，略低於我們的預期。較低的銷售水準導致我們的出貨需求不足約 2.5 億美元，處於我們上季度電話會議中預期和討論的 2.5 億至 3 億美元範圍的下限。

Taking the first quarter into account and assuming the traditional seasonality patterns and market trends as we see them today would bring us at the end of the year to the lower end of the range of underlying business run rate level that we estimated in our previous call for that period. Our expectation for the second quarter is that sell-through should be up 15% to 20% versus the first quarter, meaning we expect to under-ship demand in the second quarter by approximately $250 million to $300 million.

考慮到第一季並假設我們今天看到的傳統季節性模式和市場趨勢，將使我們在年底達到我們在先前的呼籲中估計的基本業務運行率水平範圍的下限那個時期。我們對第二季的預期是，銷售量應比第一季成長 15% 至 20%，這意味著我們預計第二季的出貨需求將減少約 2.5 億至 3 億美元。

Moving to products. Last month, we announced the acquisition of Wevo, which provides software solutions for C&I EV charging optimization, management for corporate employee charging, fleet charging and charging in apartment buildings. The Wevo solution has already been deployed in Europe, Asia and North America at approximately 1,000 sites, and more than 215,000 charging sessions have been conducted to date on the Wevo platform.

轉向產品。上個月，我們宣布收購Wevo，該公司為工商業電動車充電優化、企業員工充電管理、車隊充電和公寓大樓充電提供軟體解決方案。 Wevo 解決方案已在歐洲、亞洲和北美的約 1,000 個站點部署，迄今已在 Wevo 平台上進行了超過 215,000 次充電會話。

Wevo together with Hark, the energy optimization platform for integrated load control and industrial IoT that we acquired in the second quarter of 2023, augment the SolarEdge C&I energy management platform and together form SolarEdge ONE for C&I. In all, SolarEdge ONE for C&I is an energy management platform that enables PV and asset owners to manage all on-site electrical power and optimizes PV production, storage, EV charging and loads. This is achieved by consolidating internal and external data to make hundreds of intelligent energy decisions on a real-time basis.

Wevo 與我們在 2023 年第二季收購的整合負載控制和工業物聯網的能源最佳化平台 Hark 一起，增強了 SolarEdge C&I 能源管理平台，並共同組成了針對 C&I 的 SolarEdge ONE。總之，SolarEdge ONE for C&I 是一個能源管理平台，使光伏發電和資產所有者能夠管理所有現場電力並優化光伏發電、儲存、電動車充電和負載。這是透過整合內部和外部數據來即時做出數百個智慧能源決策來實現的。

To help explain, I'd like to give a real-world example of how SolarEdge ONE for C&I is being deployed by one real estate company in a way that enables them to benefit from the SolarEdge offering. This real estate company has a portfolio of roughly 150 assets, ranging from supermarkets to logistics centers, cold storage facilities and office buildings. This customer wanted a complete hardware and software solution that will enable them to generate clean and cheap electricity where relevant and optimize energy management, including selling the generated power to tenants and assisting the tenants with their own energy optimization needs.

為了幫助解釋，我想舉一個真實的例子，說明一家房地產公司如何部署 SolarEdge ONE for C&I，從而使他們能夠從 SolarEdge 產品中受益。這家房地產公司擁有約 150 項資產，包括超市、物流中心、冷藏設施和辦公大樓。該客戶想要一個完整的硬體和軟體解決方案，使他們能夠在相關的情況下產生清潔且廉價的電力並優化能源管理，包括將產生的電力出售給租戶並協助租戶滿足自己的能源優化需求。

Given the diversity of the asset portfolio, the combined hardware and software configuration will be optimized per site and application on the basis of the flexibility of our portfolio. In the coming months, we will be deploying PV to approximately 20% of the sites and ONE for C&I to all sites on the basis of a paid subscription. We believe that the rollout of SolarEdge ONE for C&I and the additional features that we will deliver in the coming quarters creates differentiation for our solution that will enable us to capture market share and improve profitability, including through the ability to sell software services that deliver recurring revenue.

鑑於資產組合的多樣性，我們將根據投資組合的靈活性，對每個網站和應用程式的組合硬體和軟體配置進行最佳化。在接下來的幾個月中，我們將在付費訂閱的基礎上將 PV 部署到大約 20% 的站點，並將 ONE for C&I 部署到所有站點。我們相信，面向C&I 的SolarEdge ONE 的推出以及我們將在未來幾季提供的附加功能將為我們的解決方案帶來差異化，使我們能夠佔領市場份額並提高盈利能力，包括透過銷售可提供經常性服務的軟體服務的能力收入。

On our last earnings call, we also announced the first shipments of our commercial outdoor battery solution. This new commercial battery will be a key piece of the hardware solution that is managed and optimized by ONE for C&I, along with our C&I inverters, EV chargers and energy meters. We recently began taking orders for our commercial battery in Italy, and we'll be rolling the product out to additional markets across Europe and the rest of the world in the coming quarters.

在我們上次的財報電話會議上，我們也宣布了我們的商用戶外電池解決方案的首批出貨。這種新型商用電池將成為 ONE 為 C&I 管理和優化的硬體解決方案的關鍵部分，以及我們的 C&I 逆變器、電動車充電器和電錶。我們最近開始在義大利接受商用電池的訂單，我們將在未來幾季將該產品推向歐洲和世界其他地區的其他市場。

At Intersolar next month, we will be showing an additional commercial DC coupled storage system optimized for indoor applications, which is a common application in some European markets, with shipments planned for early next year.

在下個月的 Intersolar 展會上，我們將展示一款針對室內應用而優化的額外商用直流耦合儲存系統，這是一些歐洲市場的常見應用，計劃於明年初發貨。

Continuing with C&I, an additional angle to broadening our addressable market in this space is pushing into the multidwelling unit or MDU market. The MDU space is a relatively untapped market that is gaining regulatory support in various countries and is taking the first steps on its decarbonization journey.

繼續C&I，擴大我們在這一領域的潛在市場的另一個角度是進入多住宅單元或MDU市場。 MDU 領域是一個相對尚未開發的市場，正在獲得各國監管支持，並正在邁出脫碳之旅的第一步。

This market will require comprehensive portfolio level solutions that incorporate PV batteries, EV chargers, heat pumps and energy management capabilities. We aim to be a leading provider of hardware and software solutions that will bring the energy transition to these type of buildings where roughly 50% of people in the OECD live.

該市場將需要綜合的產品組合級解決方案，其中包含光伏電池、電動車充電器、熱泵和能源管理功能。我們的目標是成為硬體和軟體解決方案的領先供應商，為經合組織中約 50% 的人口居住的此類建築帶來能源轉型。

To broaden our exposure to this space, we recently made investments and signed commercial partnerships with 2 software companies in the MDU space, Ivy Energy based in California and AMPEERS based in Munich, Germany. Both Ivy and AMPEERS provide software solutions to help large real estate owners design and implement plans to decarbonize their multidwelling portfolios and harvest the benefits of smart renewable energy solutions.

為了擴大我們在這一領域的業務範圍，我們最近與 MDU 領域的兩家軟體公司（位於加州的 Ivy Energy 和位於德國慕尼黑的 AMPEERS）進行了投資並簽署了商業合作夥伴關係。 Ivy 和 AMPEERS 都提供軟體解決方案，幫助大型房地產業主設計和實施計劃，使其多住宅投資組合脫碳，並獲得智慧再生能源解決方案的好處。

Energy management is also an important enabler in the residential space, and we continue to roll out new features for SolarEdge ONE for residential. Last month, we added a dynamic rate optimization feature, and we have approximately 1,500 users enrolled across the Netherlands and the U.K. We will be rolling out this new capability to additional countries, including Belgium, Sweden, Poland and Germany in the coming months.

能源管理也是住宅空間的重要推動者，我們持續為住宅推出 SolarEdge ONE 的新功能。上個月，我們新增了動態費率優化功能，在荷蘭和英國約有1,500 名用戶註冊。 。

The dynamic rate capability joins the Negative Rate Optimization tool we added to SolarEdge ONE for residential last year in the Netherlands. We have 10,000 sites enrolled in Negative Rate Optimization as of today and have mitigated 162 negative rate events since launching the product in the fourth quarter of 2023. We will continue to roll out additional features in the coming months that will help us maintain our technological leadership and gain market share in the residential space.

動態費率功能加入了我們去年在荷蘭住宅 SolarEdge ONE 中新增的負費率最佳化工具。截至目前，我們已有10,000 個網站註冊了負利率優化，自2023 年第四季推出該產品以來，已緩解了162 起負利率事件。於我們保持技術領先地位並獲得住宅領域的市場份額。

As the reliance on software increases and given that residential and commercial PV systems are connected directly to the utility grid, cybersecurity is of critical importance. Over the past few quarters, we have increased our investment and activity on cybersecurity capabilities and certifications. And we will continue to ensure that we are at the forefront of this topic in our industry, in particular as regulations are being drafted and implemented in multiple jurisdictions.

隨著對軟體的依賴增加，並且考慮到住宅和商業光伏系統直接連接到公用電網，網路安全至關重要。在過去的幾個季度中，我們增加了對網路安全能力和認證的投資和活動。我們將繼續確保我們處於行業中這一主題的前沿，特別是在多個司法管轄區起草和實施法規的情況下。

Let's talk now about new residential products. At Intersolar in a few weeks, we will be displaying our next-generation, large-capacity, 3-phase inverter for the European residential market that is expected to be released early next year. This new 20-kilowatt inverter is optimized for the larger rooftops and system sizes that we are increasingly seeing in the German-speaking countries where the increased need for electricity and self-consumption is leading consumers to utilize all roof surfaces and increase system sizes.

現在我們來談談新的住宅產品。幾週後，我們將在 Intersolar 展會上展示面向歐洲住宅市場的下一代大容量三相逆變器，預計將於明年初發布。這款新型20 千瓦逆變器針對較大的屋頂和系統尺寸進行了優化，我們在德語國家越來越多地看到這種情況，這些國家對電力和自耗的需求不斷增加，導致消費者利用所有屋頂表面並增加系統尺寸。

As historically our products have been optimized for larger PV plus storage residential systems, this solution will further enhance our differentiation in this segment. This new inverter is based on silicon carbide power switches to drive better efficiencies and will incorporate improved safety and installability features as well.

由於歷史上我們的產品已針對大型光伏+儲存住宅系統進行了最佳化，因此該解決方案將進一步增強我們在該領域的差異化。這款新型逆變器基於碳化矽電源開關，可提高效率，並將改善安全性和可安裝性。

To complement this next-generation inverter, we are also developing our next-generation residential battery. This battery will be based on a single platform that will unite our single-phase and 3-phase platforms into one. We will elaborate more on this and other new products in the pipeline for the residential North American market on our next earnings call. These new products will help drive down cost per watt and deliver improved installability to our customers, saving them precious time on site.

為了補充這種下一代逆變器，我們也正在開發下一代住宅電池。該電池將基於單一平台，將我們的單相和三相平台合而為一。我們將在下一次財報電話會議上詳細介紹該產品以及北美住宅市場正在開發的其​​他新產品。這些新產品將有助於降低每瓦成本，並為我們的客戶提供更好的可安裝性，從而節省他們寶貴的現場時間。

In parallel to the products above, which are to be released in the coming quarters, we continue to ramp and see growing demand for the products we released over the last few quarters. On our tracker product, there were approximately 100 megawatts that have been installed, are in the process or are in the process of installation, and confirmed orders for approximately 60 additional megawatts that are scheduled to be installed this year. On our 330-kilowatt TerraMax inverter, we recently received an order and began installation of a 20-megawatt floating PV project.

與上述將在未來幾季發布的產品同時，我們繼續加大力度，並看到對我們在過去幾季發布的產品的需求不斷增長。在我們的追蹤器產品上，大約有 100 兆瓦已安裝、正在安裝或正在安裝，並已確認訂單計劃今年安裝約 60 兆瓦。在我們的 330 千瓦 TerraMax 逆變器上，我們最近收到了一份 20 兆瓦浮動光伏專案的訂單並開始安裝。

Moving to operations. In our Austin, Texas facility, we manufactured approximately 250-megawatts of single-phase inverters in the first quarter and are on target to meet the 500-megawatt manufacturing run rate in the second quarter. Additionally, in the second quarter, we will begin shipments of optimizers and commercial inverters from our second U.S. contract manufacturing facility located in Florida.

轉向營運。在德州奧斯汀工廠，我們第一季生產了約 250 兆瓦的單相逆變器，並計劃在第二季度實現 500 兆瓦的生產運作率。此外，在第二季度，我們將開始從位於佛羅裡達州的第二家美國合約製造工廠出貨優化器和商用逆變器。

Also on the operational side, in the North American market, we plan to consolidate our product portfolio around an 11.4-kilowatt, made-in-the-U.S. inverter and 650-watt optimizer platform. The initiative will reduce both the number of hardware platforms and the number of SKUs across our North American portfolio.

同樣在營運方面，在北美市場，我們計劃圍繞 11.4 千瓦、美國製造的產品鞏固我們的產品組合。逆變器和 650 瓦優化器平台。該計劃將減少我們北美產品組合中的硬體平台數量和 SKU 數量。

This will result in a more streamlined manufacturing process and improve efficiencies across supply chain, logistics, inventory management and services. Following the consolidation to a single platform, all new inverters will come pre-equipped with PCS, which means customers can install much more PV while avoiding costly main panel upgrades.

這將導致製造流程更加簡化，並提高供應鏈、物流、庫存管理和服務的效率。整合到單一平台後，所有新逆變器都將預先配備 PCS，這意味著客戶可以安裝更多的光伏發電，同時避免昂貴的主面板升級。

In closing, our first quarter results were aligned with our expectation of inventory clearing and typical seasonality. As we enter spring when installations historically tend to rise, we expect channel inventory to continue to decline and revenues to improve. In parallel, we are focused on the suite of new products that we plan to release in the next several quarters to position ourselves for the next growth cycle in our industry.

最後，我們第一季的業績符合我們對庫存清理和典型季節性的預期。隨著我們進入春季，歷史上安裝量往往會上升，我們預計渠道庫存將繼續下降，收入將改善。同時，我們專注於計劃在未來幾季發布的一系列新產品，為行業的下一個​​成長週期做好準備。

I will now hand it over to Ronen.

現在我將把它交給羅南。

Thank you, Zvi. Good afternoon, everyone.

謝謝你，茲維。大家下午好。

Total revenues for the first quarter were $204.4 million. Revenues from our solar segment, which includes the sales of PV attached residential and commercial batteries, were $190.1 million. Total revenues from the United States this quarter were $65.3 million, representing 34% of our solar revenues. Solar revenues from Europe were $85.7 million, representing 45% of our solar revenues. Rest of the world solar revenues were $39.1 million, representing 21% of our total solar revenues.

第一季總營收為 2.044 億美元。我們太陽能部門的收入為 1.901 億美元，其中包括光伏附加住宅和商業電池的銷售。本季來自美國的總收入為 6,530 萬美元，占我們太陽能收入的 34%。來自歐洲的太陽能收入為 8,570 萬美元，占我們太陽能收入的 45%。世界其他地區的太陽能收入為 3,910 萬美元，占我們太陽能總收入的 21%。

On a megawatt basis, we shipped 226 megawatts to the United States, 443 megawatts to Europe and 276 megawatts to the rest of the world for just under 950 megawatts of total shipments. As in the fourth quarter of 2023, this quarter, the geographical mix of our revenues is mainly a result of the inventory situation in the channel and is not necessarily representing the installation rates, competitive environment or long-term trends. 68% of the megawatt shipments this quarter were commercial products and the remaining 32% were residential.

以兆瓦計算，我們向美國運送了 226 兆瓦，向歐洲運送了 443 兆瓦，向世界其他地區運送了 276 兆瓦，總出貨量略低於 950 兆瓦。與2023年第四季一樣，本季我們營收的地域組合主要是通路庫存狀況的結果，不一定代表安裝率、競爭環境或長期趨勢。本季 68% 的兆瓦出貨量為商業產品，其餘 32% 為住宅產品。

In the first quarter, we shipped 128-megawatt hour of our residential batteries, with the majority shipped to the United States where we see steady growth in installation rates. Similar to last quarter, there was a large portion of shipments of single-phase batteries that are manufactured using our inventory of higher cost sales that carries significantly lower gross margins.

第一季度，我們運送了 128 兆瓦時的住宅電池，其中大部分運送到美國，我們看到那裡的安裝率穩定成長。與上季類似，很大一部分單相電池的出貨量是使用我們的高成本銷售庫存製造的，而毛利率明顯較低。

In the first quarter, due to the continued inventory imbalances in the distribution channels, we shipped a higher ratio of inverters to optimizers. As a result, average selling price per watt this quarter, excluding battery revenues, was $0.172, a 27% decrease from $0.236 last quarter. While the typical ratio of inverters to optimizers is 1 to 24 -- 1 inverter to 24 optimizers, the ratio this quarter was 1 inverter to 16 optimizers.

第一季度，由於分銷通路庫存持續失衡，我們向優化器出貨的逆變器比例較高。因此，本季每瓦平均售價（不含電池收入）為 0.172 美元，比上季的 0.236 美元下降了 27%。雖然逆變器與優化器的典型比例為 1 比 24——1 個逆變器比 24 個優化器，但本季的比例為 1 個逆變器比 16 個優化器。

This quarter, we initiated some price decreases in targeted regions and products in order to help our distribution channel partners reach balanced levels of their inventory, which will be reflected in our financials starting next quarter. Our battery ASP per kilowatt hour was $383 this quarter, down from $403 per kilowatt hour in the previous quarter. The decrease is largely due to the previously announced price decreases on our residential batteries, offset by mix changes between our commercial and residential batteries.

本季度，我們對目標地區和產品進行了一些降價，以幫助我們的分銷通路合作夥伴達到庫存平衡水平，這將反映在我們下季度開始的財務數據中。本季我們的電池平均售價為每千瓦時 383 美元，低於上一季每千瓦時 403 美元。下降的主要原因是先前宣布的住宅電池價格下降，但被我們的商業和住宅電池之間的組合變化所抵消。

Revenues this quarter from our nonsolar business, comprising of our energy storage and all other segments, were $14.1 million. Following the discontinuation of our LCV business, this revenue is mostly attributed to our energy storage division and is following the seasonal pattern of this industry, which sees higher revenues in the back end of the year.

本季我們的非太陽能業務（包括能源儲存和所有其他部門）的收入為 1,410 萬美元。在我們的輕型商用車業務終止後，該收入主要歸因於我們的儲能部門，並遵循該行業的季節性模式，該行業在年底的收入將更高。

Consolidated GAAP gross margins for the quarter was a negative 12.8% compared to negative 17.9% in the prior quarter, as last quarter included higher charges from discontinued operations and restructuring activities. Non-GAAP consolidated gross margin this quarter was negative 6.5% compared to positive 3.3% in the prior quarter. This amount includes 450 basis points of net IRA benefit. Gross margin for the solar segment was negative 3.5% compared to positive 4% in the prior quarter.

本季綜合 GAAP 毛利率為負 12.8%，而上一季為負 17.9%，原因是上一季因終止經營和重組活動而產生的費用增加。本季非 GAAP 綜合毛利率為負 6.5%，上一季為正 3.3%。該金額包括 450 個基點的 IRA 淨收益。太陽能業務的毛利率為負 3.5%，而上一季為正 4%。

Similar to the last quarter, I would like to give some additional color on the movement of our gross margin given the continued environment of depressed revenues. As a reminder, the first layer of our gross margin, which we define as direct gross margin, is the difference between the price paid by our customers and our direct costs paid to our contract manufacturers. This margin layer is not dependent on revenue level, but only on product and geographical mix.

與上個季度類似，鑑於收入持續低迷的環境，我想對我們的毛利率變動進行一些額外的說明。提醒一下，我們毛利率的第一層，我們定義為直接毛利率，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。此利潤層並不取決於收入水平，而僅取決於產品和地理組合。

In the first quarter, direct gross margin was relatively similar to what we saw in the fourth quarter. We had initially anticipated a reversal of the negative impact of product mix of our Q4 2023 revenues. However, the continued adoption of our lower-margin, single-phase battery in the United States significantly exceeded our expectations and continued to weigh on our direct gross margins in Q1, offsetting the margin benefit from less revenues derived from customers benefiting from volume pricing.

第一季的直接毛利率與第四季的情況相對相似。我們最初預期產品組合對 2023 年第四季營收的負面影響將會逆轉。然而，我們在美國繼續採用利潤率較低的單相電池，大大超出了我們的預期，並繼續影響我們第一季的直接毛利率，抵消了受益於批量定價的客戶收入減少帶來的利潤率收益。

As a reminder, the single-phase batteries, sold mainly in the United States, utilize battery cells we purchased at higher prices. And once those cells are consumed, our next battery generation will allow the return to our target margin on the residential battery product.

提醒一下，主要在美國銷售的單相電池使用的是我們以較高價格購買的電池芯。一旦這些電池被消耗掉，我們的下一代電池將使住宅電池產品恢復到我們的目標利潤率。

The second layer of expenses that make up our gross margin, which we define as other costs of goods sold or OCOGS are not directly related to product volumes sold and are largely but not entirely fixed costs. In the first quarter, we lowered our non-GAAP other COGS by roughly 21% on an absolute dollar basis. But the relatively higher decline in revenues led to these economies of scale that had a negative impact of 750 basis points on our first quarter solar gross margins.

構成我們毛利率的第二層費用，我們將其定義為銷售商品或 OCOGS 的其他成本，與銷售的產品數量沒有直接關係，並且很大程度上但不完全是固定成本。第一季度，我們將非 GAAP 其他銷貨成本以絕對美元計算降低了約 21%。但收入相對較大的下降導致了這些規模經濟，對我們第一季太陽能毛利率產生了 750 個基點的負面影響。

On the positive side in OCOGS, we continue to see a steady improvement in our warranty costs and reduced accrual rates in relation to the sale of new products. This is a result of our transition to use certain automotive-grade components as well as other activities that improve our installed base resilience. We've also seen, as a result of lower revenues, significantly lower shipment costs.

從 OCO​​GS 積極的一面來看，我們繼續看到保固成本穩步改善，並降低了與新產品銷售相關的應計費用。這是我們轉向使用某些汽車級組件以及其他提高我們安裝基礎彈性的活動的結果。我們也看到，由於收入下降，運輸成本也顯著降低。

This quarter, we also increased our accruals for obsolete inventory by approximately $9 million. Our absolute inventory accrual policy applied to our unnaturally high inventory level requires us to continue and evaluate risks of inventory obsolescence and to take the needed actions. It is important to note that the accrual by itself doesn't mean that the inventory is obsolete, but rather reflects a higher probability of such obsolescence. We are diligently working on reducing and utilizing our inventory levels of both finished goods and raw materials.

本季度，我們還將過時庫存的應計費用增加了約 900 萬美元。我們的絕對庫存應計政策適用於我們異常高的庫存水平，要求我們繼續評估庫存過時的風險，並採取必要的行動。值得注意的是，應計本身並不意味著庫存已過時，而是反映了此類過時的可能性較高。我們正在努力減少和利用成品和原材料的庫存水準。

Gross margin for our nonsolar segment was negative 47.2%, down from negative 2.2% last quarter, a result of seasonally lower sales in our nonsolar storage business and low utilization of Sella 2 factory. The first quarter typically marks the seasonally lowest quarter of our storage business, and we expect improved revenues and margins in the coming quarters.

我們的非太陽能業務部門的毛利率為負 47.2%，低於上季的負 2.2%，這是由於我們的非太陽能儲存業務銷售額季節性下降以及 Sella 2 工廠利用率較低的結果。第一季通常是我們儲存業務季節性最低的季度，我們預計未來幾季的收入和利潤率將有所改善。

On a non-GAAP basis, operating expenses for the first quarter were $109.2 million compared to $118.3 million in the prior quarter. Our OpEx was lower due to -- than our guided range, largely due to onetime items. We continue to anticipate operating expenses to stabilize at a range of $112 million to $117 million, including the impact of our workforce reduction we implemented in the first quarter. And we will continue to push for our expenditures to go down while allowing significant resources for our technology and new product development.

以非公認會計準則計算，第一季營運費用為 1.092 億美元，上一季營運費用為 1.183 億美元。我們的營運支出低於我們的指導範圍，主要是由於一次性項目。我們繼續預計營運費用將穩定在 1.12 億至 1.17 億美元之間，其中包括我們在第一季實施的裁員的影響。我們將繼續努力減少支出，同時為我們的技術和新產品開發提供大量資源。

GAAP operating loss for the quarter was $173.7 million compared to an operating loss of $237.6 million in the previous quarter. Non-GAAP operating loss for the quarter was $122.5 million compared to an operating loss of $107.8 million in the previous quarter.

本季 GAAP 營運虧損為 1.737 億美元，而上一季營運虧損為 2.376 億美元。本季非 GAAP 營運虧損為 1.225 億美元，而上一季營運虧損為 1.078 億美元。

Operating loss from the solar segment was $110.4 million this quarter compared to an operating loss of $93.9 million in the previous quarter. And operating loss from our nonsolar segment was $12.1 million this quarter compared to an operating loss of $13.9 million in the previous quarter.

本季太陽能部門的營運虧損為 1.104 億美元，而上一季的營運虧損為 9,390 萬美元。本季我們非太陽能部門的營運虧損為 1,210 萬美元，而上一季的營運虧損為 1,390 萬美元。

Non-GAAP financial expense for the quarter was $4.8 million compared to a non-GAAP financial income of $29.8 million in the previous quarter. Our non-GAAP tax benefit was $18.7 million this quarter compared to a non-GAAP tax benefit of $25.5 million in the previous quarter. Our non-GAAP tax rate for the quarter was 15%, and we expect it to climb back towards 20% as the business returns to profitability.

本季非 GAAP 財務費用為 480 萬美元，上一季非 GAAP 財務收入為 2,980 萬美元。本季我們的非 GAAP 稅收優惠為 1,870 萬美元，而上一季的非 GAAP 稅收優惠為 2,550 萬美元。我們本季的非 GAAP 稅率為 15%，隨著業務恢復獲利，我們預計稅率將回升至 20%。

GAAP net loss for the first quarter was $157.3 million compared to a GAAP net loss of $162.4 million in the previous quarter. Our non-GAAP net loss was $108.6 million compared to a non-GAAP net loss of $52.5 million in the previous quarter. GAAP net diluted loss per share was $2.75 for the first quarter compared to $2.85 in the previous quarter. Non-GAAP net diluted loss per share was $1.90 compared to $0.92 in the previous quarter.

第一季 GAAP 淨虧損為 1.573 億美元，而上一季 GAAP 淨虧損為 1.624 億美元。我們的非 GAAP 淨虧損為 1.086 億美元，而上一季的非 GAAP 淨虧損為 5,250 萬美元。第一季 GAAP 攤薄後每股淨虧損為 2.75 美元，上一季為 2.85 美元。非 GAAP 攤薄後每股淨虧損為 1.90 美元，上一季為 0.92 美元。

Turning now to the balance sheet. As of March 31, 2024, cash, cash equivalents, bank deposits, restricted bank deposits and the investments were approximately $950 million, which we expect to be the lowest cash point for this year. Net of debt, this amount is approximately $316 million.

現在轉向資產負債表。截至2024年3月31日，現金、現金等價物、銀行存款、受限銀行存款和投資約為9.5億美元，我們預計這將是今年的最低現金點。扣除債務後，這筆金額約為 3.16 億美元。

This quarter, cash used in operation activities was $217 million. This cash utilization is a result of the inventory buildup and the associated vendor payments related to the manufacture -- inventory manufacturing. We believe that in the first quarter, we completed the adjustment of our manufacturing commitments to the required level amid our current inventory position.

本季經營活動所用現金為2.17億美元。這種現金利用率是庫存累積以及與製造（庫存製造）相關的供應商付款的結果。我們相信，在第一季度，我們在當前庫存狀況下完成了將製造承諾調整至所需水準。

As of March 31, our inventory level net of reserve was at $1.55 billion compared to $1.44 billion in the prior quarter. Our average inventory days increased from 386 days in the fourth quarter to 619 days in the first quarter. The cash flow used for manufacturing was partially offset by a significant reduction in accounts receivables as we continue to make collections from customers despite lengthened payment terms.

截至 3 月 31 日，我們的庫存水準（扣除準備金）為 15.5 億美元，而上一季為 14.4 億美元。我們的平均庫存天數從第四季的 386 天增加到第一季的 619 天。儘管付款期限延長，但我們仍繼續向客戶收款，因此應收帳款大幅減少部分抵銷了用於製造的現金流量。

Accounts receivable net decreased this quarter to $404.4 million compared to $622.4 million last quarter. As a result, we brought down DSO from 265 days in the fourth quarter to 220 days in the first quarter.

本季應收帳款淨額從上季的 6.224 億美元減少至 4.044 億美元。因此，我們將 DSO 從第四季的 265 天減少到第一季的 220 天。

As part of our $300 million share repurchase program authorized by our Board of Directors in the fourth quarter of 2023, this quarter, we repurchased 506,000 shares of our common stock for an average gross purchase price of $65.67 per share for a total approximately $33 million. Further shares purchases continued in April, and we will continue to responsibly implement the program based on our cash flow development and expectations.

作為董事會於 2023 年第四季授權的 3 億美元股票回購計畫的一部分，本季我們回購了 506,000 股普通股，平均總購買價為每股 65.67 美元，總額約為 3,300 萬美元。 4 月繼續進行進一步的股票購買，我們將根據現金流的發展和預期繼續負責任地實施該計劃。

Turning to guidance for the second quarter of 2024. We are guiding revenues to be within the range of $250 million to $280 million. We expect non-GAAP gross margin to be within the range of negative 4% to 0%, including approximately 350 basis points of net IRA benefit. We expect our non-GAAP operating expenses to be within the range of $116 million to $120 million. Revenues from the solar segment are expected to be within the range of $225 million to $255 million. Gross margins from our solar segment is expected to be within the range of negative 3% to positive 1%, including approximately 420 basis points of net IRA benefit.

轉向 2024 年第二季的指引。我們預計非 GAAP 毛利率將在負 4% 至 0% 的範圍內，其中包括約 350 個基點的 IRA 淨收益。我們預計我們的非 GAAP 營運費用將在 1.16 億美元至 1.2 億美元之間。太陽能部門的收入預計在2.25億美元至2.55億美元之間。我們太陽能部門的毛利率預計將在負 3% 到正 1% 的範圍內，其中包括約 420 個基點的 IRA 淨收益。

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

我現在將把電話轉給接線員以供提問。接線員，請說。

(Operator Instructions) And we'll move first to Andrew Percoco with Morgan Stanley.

（操作員說明）我們先請摩根士丹利的安德魯‧佩科科 (Andrew Percoco) 發言。

I guess just to start out here on margin guidance, obviously, a lot to unpack. But if I just look at the first quarter, your revenue actually was somewhat in line with your guidance, but margins missed. And my understanding is it was mostly related to mix shift, I guess, a lack of reversal in mix shift that you were expecting following the fourth quarter.

我想只是從保證金指導開始，顯然，還有很多東西要解開。但如果我只看第一季度，你的收入其實在某種程度上符合你的指導，但利潤率卻低於預期。我的理解是，這主要與混合轉變有關，我猜，混合轉變缺乏您所期望的第四季度之後的逆轉。

So can you just give us a sense for what you're expecting for the remainder of 2024 beyond just the second quarter and whether or not you're comfortable in your prior guidance in terms of your ability to get back to the 30% range by the end of the year?

那麼，您能否告訴我們您對 2024 年第二季度之後剩餘時間的預期，以及您是否對之前的指導感到滿意，認為您有能力在 2024 年恢復到 30% 的範圍年底？

Sure, Andrew, and thank you for the question. So I'll start by saying that we're still playing the rule of small numbers relatively. And just to explain it a little bit, in general, the amount of batteries that we planned when we guided for our gross margin was a certain level that was exceeded by approximately $15 million of additional battery sales that we did not anticipate just given the fact that the demand for our battery -- single-phase batteries in the United States is better than we expected.

當然，安德魯，謝謝你的提問。所以我首先要說的是，我們仍然相對地遵循小數字規則。稍微解釋一下，一般來說，我們在指導毛利率時計劃的電池數量達到了一定水平，超出了約 1500 萬美元的額外電池銷售額，這是我們沒有預料到的事實美國對我們的電池——單相電池的需求比我們預期的要好。

And the entire result is actually related to the difference of the margin of having more batteries at a very low margin compared to where we planned it. Had it been a regular quarter at the regular business level, this would be very minimal effect. But at this revenue level, it's relatively large.

整個結果實際上與我們以非常低的利潤擁有更多電池的利潤與我們的計劃相比的差異有關。如果這是常規業務層面的常規季度，那麼影響將非常小。但就這個收入水準來說，已經是比較大了。

Now in essence, it's a little bit of a zero-sum game because all of these batteries are based on battery cells that we've already acquired, are already in our inventory, and it's just a question of how quickly we consume it. So by definition, if we sell a lot of more of them right now, we will sell less of them next year when we're going to basically consume all of them. So it's just a shift of the margin.

從本質上講，這有點像零和遊戲，因為所有這些電池都是基於我們已經購買的電池，已經在我們的庫存中，問題只是我們消耗它的速度有多快。因此，根據定義，如果我們現在出售更多的產品，那麼明年我們基本上將消耗掉所有這些產品時，我們將出售更少的產品。所以這只是邊際的變化。

In general, what we are doing, and this is already baked into the second quarter gross margin guidance, we are assuming a slightly higher battery sales than we initially anticipated when we started the year. So for -- at the beginning, it's already there. And the second thing is, of course, that given the very small revenues that we have and we assume that they will grow towards the end of the year, we assume that any impact in that size of difference in mix will be very, very minimal. So no change in our, I would call it, stabilized margin projection.

總的來說，我們正在做的事情已經納入第二季毛利率指引中，我們假設電池銷量略高於我們年初時的最初預期。所以對於──一開始，它就已經存在了。當然，第二件事是，考慮到我們的收入非常小，而且我們假設它們將在年底前成長，我們假設這種組合差異的影響將非常非常小。因此，我們的（我稱之為穩定的利潤率預測）沒有改變。

Understood. Okay, that's helpful. But I guess as a follow-up to that, can you maybe bridge that to cash flow expectations for the year and maybe how you're thinking about liability management? I think you have a debt maturity next year to think about. So how are you thinking about that as it relates to cash flow expectations this year and liability management?

明白了。好的，這很有幫助。但我想作為後續行動，您能否將其與今年的現金流預期以及您如何考慮負債管理聯繫起來？我認為你需要考慮明年的債務到期情況。那麼，您如何看待這一點，因為它與今年的現金流量預期和負債管理有關？

Sure. So of course, cash is, especially in these times of very low revenue, is one of the major items that we're keeping our eyes on. And as I mentioned in my prepared remarks, we expect this quarter to be actually the lowest cash point for the year.

當然。因此，現金當然是我們關注的主要項目之一，尤其是在收入非常低的時期。正如我在準備好的發言中提到的，我們預計本季實際上將是今年現金的最低點。

The main reason for the position that we're here right now is the fact that, well, we did see the revenues declining already when we guided for Q4. And then for Q1, you still have commitments for inventory procurement and also for manufacturing towards your contract manufacturers. And that means that during the first quarter, we still manufactured more than we actually sold. And this, of course, results in the fact that we are -- we had to pay for the inventory and we had to pay our vendors.

我們現在所處位置的主要原因是，當我們為第四季度提供指導時，我們確實看到收入已經下降。然後，在第一季度，您仍然對合約製造商有庫存採購和製造的承諾。這意味著在第一季度，我們的製造量仍然多於實際銷售量。當然，這導致我們必須支付庫存費用，並且必須向供應商付款。

What happens in the second quarter is that this phenomenon is actually reversing. We are going to start selling more than our actual manufacturing. And actually, we're going to utilize the inventory that is just $1.55 billion of cash sitting in the form of products. And once we're going to start reversing those, we expect the gross -- the cash to start to be generated again.

第二季度發生的情況是，這種現象實際上正在扭轉。我們將開始銷售超過我們實際製造的產品。實際上，我們將利用僅以產品形式存在的 15.5 億美元現金庫存。一旦我們開始扭轉這些局面，我們預計毛額——現金將再次開始產生。

So we already expect to see cash generation in Q2. And we're going to see intensified generation into Q3 and Q4, where not just that we will have higher revenues, we will also have higher utilization of the inventory.

因此，我們已經預計第二季會產生現金。我們將看到第三季和第四季的發電量加強，不僅我們將獲得更高的收入，而且我們的庫存利用率也將更高。

And one -- by the way, just to complete on the convertible bond, currently, of course, these amounts, we treat them as debt, they're out of the money. We treat them as debt. We take -- we work under the assumption that these are moneys that will have to be refunded to the debt holders. And as such, we simply make sure that all of our cash positions are not taking them into account and something that we can use.

順便說一句，只是為了完成可轉換債券，目前，當然，這些金額，我們將它們視為債務，它們已經沒錢了。我們將它們視為債務。我們假設這些資金必須退還給債務持有人。因此，我們只是確保我們所有的現金頭寸都沒有考慮到它們以及我們可以使用的東西。

And we'll take our next question from Brian Lee with Goldman Sachs.

我們將回答高盛布萊恩李 (Brian Lee) 提出的下一個問題。

I jumped on the call late, so I apologize if you already addressed this, Ronen, but can you update us on sort of what you're seeing in the pricing environment? Are you taking any new actions in the U.S.? I know in the past, you've been saying the U.S. pricing situation is pretty stable.

我很晚才接到電話，所以如果你已經解決了這個問題，我深表歉意，Ronen，但你能向我們介紹一下你在定價環境中看到的最新情況嗎？您在美國有什麼新的行動嗎？我知道您過去一直說美國的定價情況相當穩定。

And then in Europe, in the past, you said mid- to high-single-digit price declines are what you're planning to implement. Have you implemented those already? Do you see any more actions potentially being needed in terms of pricing in Europe given the market dynamics out there? And then I have a follow-up.

然後在歐洲，過去您曾說過計劃實施中高個位數的價格下降。您已經實施這些了嗎？鑑於歐洲的市場動態，您認為歐洲在定價方面是否需要採取更多行動？然後我有一個後續行動。

Sure, Brian, and thanks for the question. So actually, we have already started to implement price reductions in various forms this quarter. I would divide them to 2. The first one are price reductions that we've implemented to our batteries, and this is something that is done across the board and across the products. And this just simply means that you buy today batteries at a lower price than you used to.

當然，布萊恩，謝謝你的提問。所以實際上我們這個季度已經開始實施各種形式的降價了。我將它們分為兩部分。這僅僅意味著您現在以比以前更低的價格購買電池。

In other regions, what we're trying to do is actually to make our price reductions a little bit more effective in the way that they help our customers because we need to remember that some of our customers are sitting on a large amount of inventories. And sometimes if you are reducing prices, those loyal customers of yours or channels that have a lot of inventory are in an inferior position to someone that's just entering the market or has less inventory and, therefore, being a little bit damaged by this. And this is something that, of course, we don't want to do.

在其他地區，我們想做的實際上是讓我們的降價更加有效，以幫助我們的客戶，因為我們需要記住，我們的一些客戶擁有大量庫存。有時，如果你降低價格，那些擁有大量庫存的忠實客戶或通路就會比剛進入市場或庫存較少的人處於劣勢，因此會受到一點損害。當然，這是我們不想做的事情。

So what we are doing is that we are trying to match various price reductions or initiatives to help those -- for example, in Europe today, we see that we have lower ratio of optimizers in the channel compared to inverters. That means that our channels will have to buy more optimizers. What we basically did is that we have temporarily reduced the price of our optimizers in those regions in order to make sure that when our distributor is buying those optimizers, he basically gets them at the lower price. He can sell, by the way, the entire system at the lower price. And this is -- we are not just allowing them to get a better pricing, we also help them to get rid of some of the inventory that they have. And by this, we are accelerating the inventory clearing.

因此，我們正在做的是，我們正在嘗試配合各種降價或舉措來幫助這些人——例如，在今天的歐洲，我們發現與逆變器相比，我們頻道中優化器的比例較低。這意味著我們的頻道將不得不購買更多的優化器。我們基本上所做的是，我們暫時降低了這些地區優化器的價格，以確保當我們的經銷商購買這些優化器時，他基本上能以較低的價格獲得它們。順便說一句，他可以以較低的價格出售整個系統。我們不僅讓他們獲得更好的定價，我們還幫助他們擺脫一些庫存。以此，我們正在加速庫存清理。

So we definitely do this. We're very flexible in the way that we do it. We put a lot of thought about how to not just use -- have the reduction amount, but how to use it properly. And yes, we're doing it in every region separately. In the U.S., I must say that we don't see a lot of this right now because as we mentioned before, again, the environment is relatively stable.

所以我們肯定會這樣做。我們的做法非常靈活。我們花了很多心思思考如何不僅使用減少量，而且還考慮如何正確使用它。是的，我們正在每個地區分別進行這項工作。在美國，我必須說，我們現在還沒有看到很多這樣的情況，因為正如我們之前提到的，環境相對穩定。

Okay. That's helpful. And then I know there's been a lot of focus on the gross margins here. I guess I'm a little surprised that with revenue pickup in 2Q, the gross margin guidance isn't improving a bit more. I know there's a lot of like volume and fixed cost drivers or absorption drivers that ultimately are going to be a big part of the gross margin ramp back up.

好的。這很有幫助。然後我知道這裡的毛利率受到了很多關注。我想我有點驚訝的是，隨著第二季營收的回升，毛利率指引並沒有進一步改善。我知道有很多類似的銷售和固定成本驅動因素或吸收驅動因素最終將成為毛利率回升的重要組成部分。

So I guess 2 questions here. What actions are you taking to kind of get back to that target of 25 to 27 ex IRA, if that's still the appropriate target? And is there anything that maybe you've been surprised by or is more challenging than you thought and isn't getting you maybe a gross margin uplift on better volumes here in the very near term?

所以我想這裡有兩個問題。如果這仍然是適當的目標，您將採取哪些行動來回到 25 至 27 個前愛爾蘭共和軍的目標？有沒有什麼事情可能會讓您感到驚訝，或者比您想像的更具挑戰性，並且在短期內不會讓您在銷量增加的情況下提高毛利率？

Sure. So first of all, no surprises here from our side given the fact that we still expect to see gross margins where we said all along they will be towards the end of the year. So we don't see change in the end target.

當然。首先，鑑於我們仍然預期毛利率將達到我們一直所說的到年底的水平，因此我們對此並不感到驚訝。因此，我們認為最終目標不會改變。

The 2 main differences that you see right now compared to maybe a quarter ago is that, one, the rate of selling our residential batteries in the U.S. is a little bit quicker than we thought. And again, when you have relatively limited revenues, you just dilute the margins by very low-margin products, and that's the result here. By the way, again, it's a zero-sum game because the quicker we are consuming them, that means that margin will recover in '25 when we completely get rid of those batteries. So that's the easier part.

與一個季度前相比，您現在看到的兩個主要差異是，第一，我們在美國的住宅電池銷售速度比我們想像的要快一點。再說一次，當你的收入相對有限時，你只會透過利潤率極低的產品來稀釋利潤，這就是結果。順便說一句，這又是一場零和遊戲，因為我們消耗它們的速度越快，這意味著當我們完全擺脫這些電池時，利潤將在 25 年恢復。這是更容易的部分。

The second part is actually related to regular seasonal effect that we see every year. Usually, in the second and third quarter, because of summer, we see a little bit of a higher spending on actual warranty expenses. You see more, first of all, replacement of units. It's easier to go on the roof to replace units, and sometimes you see a little bit of a higher failure rate during the summer. So here, really, it's a combination of faster battery sales and no surprises with the overall OCOGS, again, our target -- long-term target remains exactly the same.

第二部分實際上與我們每年看到的常規季節性效應有關。通常，在第二和第三季度，由於夏季，我們會看到實際保固費用的支出增加。首先，你會看到更多的單位更換。在屋頂上更換設備更容易，有時您會發現夏季的故障率較高。因此，實際上，這是電池銷售加快和整體 OCOGS 不出意外的結合，我們的目標——長期目標仍然完全相同。

And we'll move next to Philip Shen with ROTH Capital Partners.

接下來我們將邀請到羅仕資本合夥人 (ROTH Capital Partners) 的 Philip Shen。

The first one is a follow-up on pricing. Ronen, our checks suggest you guys may be launching or may have launched recently a new promotion in the European resi segment, which is to buy -- when you buy a kilowatt, you get an optimizer free. So wondering if you could comment on the specifics around that promotion. Our sense is it's across Europe. Our sense is it's -- it will last from May 1 to September 1. And so just curious if you can talk about the dynamics there.

第一個是定價的後續行動。 Ronen，我們的檢查表明，您可能正在或最近在歐洲 Resi 領域推出了一項新的促銷活動，即購買——當您購買一千瓦時，您將獲得免費的優化器。所以想知道您是否可以評論一下該促銷活動的具體細節。我們的感覺是整個歐洲都是如此。我們的感覺是，它將持續從 5 月 1 日到 9 月 1 日。 所以我很好奇你是否能談談那裡的動態。

And then from an inventory standpoint, it seems like there might be still a year left of inventory for the European resi segment. This might slow things down from a channel clearing standpoint because the distributors will get a coupon to then have to buy more optimizers or at least more product. And so given that dynamic, when do you think the European channel can clear and if you agree that it might be a little bit slower now?

然後從庫存的角度來看，歐洲樹脂產業的庫存似乎還剩下一年。從通路清理的角度來看，這可能會減慢速度，因為分銷商將獲得優惠券，然後必須購買更多優化器或至少更多產品。因此，考慮到這種動態，您認為歐洲管道什麼時候可以暢通？

So first of all, the initiative that you mentioned, Phil, is exactly to my last answer is exactly one of the tools that we're taking. What we basically saw here is that we see higher ratio of inverters to optimizers within our channels in Europe. A result of the fact that at the very beginning of '23, we had the problem to provide inverters. Everyone ordered so many and then the slowdown in the market came in.

首先，菲爾，你提到的倡議正是我最後一個答案的一部分，也是我們正在採取的工具之一。我們在這裡基本上看到的是，我們在歐洲的頻道中看到逆變器與優化器的比例更高。這是因為在 23 年初，我們在提供逆變器方面遇到了問題。每個人都訂購了這麼多，然後市場放緩了。

And what we have identified is that whether they like it or not, a lot of the distributors will have to buy quite a lot of optimizers. This will be a necessity for them. And had we just decided to reduce prices across the board of all of our products, that means that they would not really benefit from this price decrease given the fact that what they need is optimizers.

我們發現，無論他們喜歡與否，許多經銷商都將不得不購買大量優化器。這對他們來說是必要的。如果我們只是決定全面降低所有產品的價格，這意味著他們不會真正從降價中受益，因為他們需要的是優化器。

So the initiative around optimizers was very easy, let's help our distributors exactly where they need it because they will have to buy. And by allowing them to buy cheaper optimizers because basically giving one on every kilowatt under this initiative means that they need, I don't know, like 4 instead of 5, but that basically means that now they can sell a full system with an inverter that they have a little bit quicker. So these kind of initiatives are simply helping to clear the inventory a little bit faster.

因此，圍繞優化器的舉措非常簡單，讓我們幫助我們的分銷商準確地滿足他們的需要，因為他們必須購買。透過允許他們購買更便宜的優化器，因為基本上在該計劃下每千瓦提供一個意味著他們需要，我不知道，例如4 個而不是5 個，但這基本上意味著現在他們可以銷售帶有逆變器的完整系統他們有一點快一點。因此，這些舉措只是有助於更快地清理庫存。

As of the time and time to clear, this is very much different between various distributors. And actually, it's also very much different sometimes between various products with those distributors. I can tell you that some of the distributors, for example, that ordered a lot of commercial inverters, just given the fact that we didn't have enough in '23, have many -- maybe too many of them. And one other distributor that didn't order so much have a little bit of lack of those inverters.

截至澄清時間和時間，這在各個經銷商之間有很大不同。事實上，有時這些經銷商的各種產品之間也有很大差異。我可以告訴你，例如，一些分銷商訂購了很多商用逆變器，但考慮到我們在 23 年沒有足夠的逆變器，他們已經訂購了很多——也許太多了。而另一家沒有訂購這麼多的經銷商則缺少這些逆變器。

In average, what we do see, we see a much long -- lower, sorry, inventory levels that reflect 1 year. And we believe that as the year will continue, we will see gradual runoff of some of the products from the shelves. And not just that one day across the board, all products will be finished. So we will continue to see gradual increase in revenues, gradual increase in shipment and gradual clearing of the inventories. But again, we do not expect, in most of the cases, to see a year worth of inventory in total on the shelves in Europe.

平均而言，我們所看到的，我們看到的是長期的——抱歉，庫存水平較低，反映了一年的情況。我們相信，隨著這一年的繼續，我們將看到一些產品逐漸從貨架上消失。而且不只是有一天，所有產品都會完成。因此，我們將繼續看到收入逐漸增加、出貨量逐漸增加以及庫存逐漸出清。但同樣，在大多數情況下，我們預計歐洲貨架上的庫存總量不會達到一年的水準。

Okay. Shifting over to a housekeeping question here on the Q2 guide. Can you talk to us about what you expect the ratio of inverters and optimizers to be in Q2?

好的。轉向第二季指南中的內務管理問題。您能告訴我們您預計第二季逆變器和優化器的比例是多少嗎？

So we do not give it yet simply because of the fact that, again, we haven't shipped in. And in those numbers, every small difference is -- or shipment is making a big difference. In general, we do expect to see a higher ratio of optimizers to inverters this quarter and, I would say, even in the upcoming quarters. So I would say that we expect it to be higher than the normal 1 to 24. But again, it's a very volatile environment, so I will not be surprised that there is a little bit of diversion here. But directionally, more than 1 to 24 or 24 to 1.

所以我們還沒有給出它，只是因為我們還沒有發貨。總的來說，我們確實預計本季優化器與逆變器的比例會更高，我想說，即使在接下來的幾季也是如此。所以我想說，我們預計它會高於正常的 1 到 24。但方向上，不只1比24或24比1。

We'll move next to Mark Strouse with JPMorgan.

我們將轉到摩根大通的馬克·斯特勞斯 (Mark Strouse) 旁邊。

So outside of the pandemic years, just kind of looking back over your history, we've kind of thought about your ability to bring down your cost per watt kind of in the mid- to high-single digits or so. Looking forward to learning more about the new products you have coming out. But just kind of curious, if you can talk generally, should we expect the efficiency improvements, the cost declines to kind of be in line with that versus kind of a step-function change that you can talk about?

因此，在大流行年之外，只要回顧一下您的歷史，我們就會考慮您將每瓦成本降低到中高個位數左右的能力。期待更多了解您推出的新產品。但只是有點好奇，如果你能籠統地談談，我們是否應該期望效率的提高、成本的下降與你可以談論的階躍功能變化相一致？

Yes, Mark, thanks for the question. And I think you gave the answer yourself. So typically, in the -- over the life of a product or generation of a product, we are able to reduce costs roughly at the rate that average prices decline in the market, so kind of a 10% per year. And then we're able to take a larger step cost reductions when we move to new generations.

是的，馬克，謝謝你的提問。我想你自己已經給了答案。因此，通常情況下，在產品或產品世代的生命週期中，我們能夠大致以市場平均價格下降的速度降低成本，大約每年 10%。然後，當我們轉向新一代時，我們就能夠更大幅度地降低成本。

And especially when we're moving to higher-capacity generations because one of the advantages of our architecture is that on the module-level electronics, the cost per watt is kind of fixed, but on the inverter side, we're able to reduce the cost per watt with larger inverters. And when the market goes to larger systems, that enables a cost reduction.

尤其是當我們轉向更高容量的世代時，因為我們架構的優勢之一是在模組級電子設備上，每瓦成本是固定的，但在逆變器方面，我們能夠降低較大的逆變器每瓦成本。當市場轉向更大的系統時，成本就會降低。

So generally speaking, at a very high level, if you look at our next-generation 3-phase inverter that I was discussing, that will enable a step-function reduction in cost per watt compared to the current generation inverter for that size of an installation in the range of 30% to 50% in the shift between generations compared to the annual rate, if you will, of about 10%. Is that clear enough, Mark?

因此，一般來說，在非常高的水平上，如果您看看我正在討論的下一代三相逆變器，與該尺寸的當前一代逆變器相比，這將實現每瓦成本的階梯函數降低。馬克，說得夠清楚了嗎？

Yes. Yes, that's very helpful. Look forward to seeing that. And then just a quick follow-up, Ronen. Just going back to the low-margin, single-phase batteries, are you able to quantify what that inventory looks like? You said 2025 clearing a couple of times now. I'm just curious, I mean with the crystal ball you have now, do you think that it's [in '25] or later in the years? Any color you have there would be great.

是的。是的，這非常有幫助。期待看到這一點。然後是快速跟進，Ronen。回到低利潤的單相電池，您能夠量化庫存情況嗎？你已經說過好幾次2025年了。我只是很好奇，我的意思是，用你現在擁有的水晶球，你認為它是在[25年]還是幾年後？你有任何顏色都會很棒。

Thanks, Mark. And first of all, by the way, looking at the industry performance in the last few quarters, crystal balls are not easy here. But in general, the way that we look at it is this is basically a product that is based on around 1 gigawatt that we acquired from Samsung. And here, actually, we expected it always to be basically ending, if you remember in the history, around the end of this year. Now of course that, all in all, the industry is a little bit slower than it used to be, we believe that we will enter this market with this inventory into 2025, and that will be the year that we believe that we'll see some replacement with our new products.

謝謝，馬克。首先，順便說一句，看看最近幾季的行業表現，水晶球在這裡並不容易。但總的來說，我們看待它的方式基本上是基於我們從三星購買的約 1 吉瓦的產品。事實上，如果你還記得歷史的話，我們預計它總是會在今年年底左右基本結束。當然，現在，總而言之，這個行業比以前要慢一些，我們相信我們將在 2025 年以這個庫存進入這個市場，那將是我們相信我們會看到的一年一些替換我們的新產品。

Now the question here is going to be a combination of 2 things. One is, again, to continue to see how the market adopts the product. And second will be when do we expect the product to be ready, and Zvi will talk about it in the next call. But we will make sure that we're basically continuing with this product as much as needed in order to make sure that we have no product gap.

現在這裡的問題將是兩件事的結合。一是繼續觀察市場對產品的接受程度。其次是我們預計產品何時準備就緒，Zvi 將在下次電話會議中討論。但我們將確保我們基本上根據需要繼續使用該產品，以確保我們沒有產品差距。

The one thing I would say is that right now, it's not just the fact that we're selling these batteries a little bit faster than the others, it's also the fact that the 3-phase batteries that are enjoying much better margins in Europe, right now, the sales for them are relatively low given the situation in Europe.

我要說的一件事是，現在，這不僅是我們銷售這些電池比其他電池快一點的事實，而且是三相電池在歐洲享有更高利潤的事實，目前，考慮到歐洲的情況，它們的銷售量相對較低。

So when we look at the improvement of gross margins related to batteries into the end of this year and beginning of next year, it's not just how quickly we're clearing this, which is, of course, an important factor, but it's also what portion of these batteries are within the overall residential batteries we sell. Right now, this portion is very high. So all in all, middle of '25, we believe that will be gone with this inventory.

因此，當我們看到今年年底和明年初與電池相關的毛利率的改善時，我們不僅僅關註解決這個問題的速度，這當然是一個重要因素，但這也是我們的目標。我們銷售的整顆住宅電池。目前來看，這個比例非常高。總而言之，到 25 年中期，我們相信這種庫存將會消失。

And we'll take our next question from Colin Rusch from Oppenheimer.

我們將回答奧本海默的科林拉什 (Colin Rusch) 提出的下一個問題。

With the product redesigns and evolution, can you give us a sense of how much cost you feel like you could take out? And how important is that to the margin trajectory that you guys are talking about getting back to a normalized level?

隨著產品的重新設計和發展，您能告訴我們您認為可以節省多少成本嗎？對於你們所說的回到正常水準的利潤軌跡有多重要？

Yes, Colin, thanks for the question. I think first, the -- and Ronen will correct me, the margin projections that Ronen was discussing before were not dependent on the new product that we will be releasing because the volumes, when we're looking at the rest of this year, the volumes of the new products will not be impacting dramatically the financials.

是的，科林，謝謝你的提問。我認為首先，羅南會糾正我，羅南之前討論的利潤預測並不依賴我們將要發布的新產品，因為當我們考慮今年剩餘時間時，銷售新產品的數量不會對財務產生重大影響。

As I was alluding before, it varies from one -- from different products. You take a battery, the cost is very strongly dominated by the cells. So when you move from a current generation to a next generation, you're dependent on cell prices, you can become more efficient on the mechanics and the power electronics, but your potential for cost reduction is, at the end of the day, limited. When you're talking about the next generation of inverter, new components and efficiencies, the potential for step-function reduction in cost is much more significant.

正如我之前提到的，它因產品而異。如果使用電池，成本很大程度取決於電池。因此，當你從當前一代轉向下一代時，你依賴電池價格，你可以在機械和電力電子方面變得更加高效，但歸根結底，你降低成本的潛力是有限的。當您談論下一代逆變器、新組件和效率時，階躍函數降低成本的潛力更加顯著。

So as I was referring before to the new 3-phase inverter, taking into account when looking at the installation size that we're targeting for that inverter, so the segment of a large residential installation, we will be able to serve with a solution that is probably in the range of about 50% lower cost per watt of the inverter compared to serving that application with current generation inverters.

正如我之前提到的新型三相逆變器，在考慮該逆變器的目標安裝尺寸時，考慮到大型住宅安裝的部分，我們將能夠提供解決方案與當前一代逆變器的應用相比，逆變器每瓦的成本可能降低約50%。

That is not necessarily the cost reduction that will be achieved for every size of installation, but for the target -- and that's how we do the design, for a target size and application that we think is going to be the main driver in the market. And for that point, we optimize the cost. And like I say on the power electronics and the generational move, we can be in the range of reducing the cost per watt of 30% to 50%.

這不一定是每種安裝尺寸都能實現的成本降低，而是針對目標——這就是我們的設計方式，針對我們認為將成為市場主要驅動力的目標尺寸和應用。為此，我們優化了成本。就像我在電力電子和換代移動方面所說的那樣，我們可以將每瓦成本降低 30% 到 50%。

That's helpful, guys. And with the emergence of virtual power plants, both at the residential level, but more importantly at the commercial level, and some of the software investments that you guys have made, can you talk a little bit about your ability to monetize that and how quickly the evolution of those offerings are -- what the cadence of that evolution is and your ability to really get it embedded in with some of your customers, particularly on the commercial level?

這很有幫助，夥計們。隨著虛擬發電廠的出現，無論是在住宅層面，但更重要的是在商業層面，以及您們所做的一些軟體投資，您能談談您將其貨幣化的能力以及速度嗎？演變是——這種演變的節奏是什麼，以及您將其真正融入某些客戶的能力，特別是在商業層面？

So I would separate indeed between the -- VPP or virtual power plant is one application of grid services that is today more prevalent in residential than it is in commercial. And we are able to monetize a subscription as long as the VPP program is active. I don't remember off the top of my head the number of batteries or residential systems that we have today under some form of a VPP. It is not huge. Otherwise, we would have probably been able to report a much better margin because of 100% margin flow of cash. But VPP is growing. The growth rate is not huge. And when it happens, we can generate revenue from it.

因此，我確實將 VPP 或虛擬發電廠分開，它是電網服務的一種應用，目前在住宅中比在商業中更普遍。只要 VPP 計劃處於活動狀態，我們就可以透過訂閱獲利。我根本不記得我們今天在某種形式的 VPP 下擁有的電池或住宅系統的數量。它並不大。否則，由於 100% 的利潤率現金流，我們可能能夠報告更好的利潤率。但 VPP 正在成長。成長幅度並不大。當它發生時，我們可以從中創造收入。

The other software capabilities that we enable in residential, for the most part, are not generating any type of revenue. Commercial is a different story. What we are offering there is much, much broader than a virtual power plant. It provides more value, and it's a wide range of capabilities from energy efficiency, load management, et cetera. And there, we expect to be able to have a higher ratio of -- or a high -- relatively high ratio of software services and recurring revenue generation, but it will be a process. It's something that we'll be rolling out gradually, and it will grow gradually. So again, I don't see it having a big impact on our numbers in the next 24 months, but it is something that in the long run will be a source of high-margin revenue.

我們在住宅中啟用的其他軟體功能在很大程度上不會產生任何類型的收入。商業則是另一回事。我們在那裡提供的服務比虛擬發電廠要廣泛得多。它提供了更多價值，並且具有從能源效率、負載管理等方面的廣泛功能。在那裡，我們期望能夠擁有更高的軟體服務和經常性收入的比例，或者說相對較高的比例，但這將是一個過程。我們將逐步推出它，並且它會逐漸增長。再說一次，我認為它不會對我們未來 24 個月的數字產生重大影響，但從長遠來看，這將成為高利潤收入的來源。

We'll move next to Austin Moeller with Canaccord.

我們將帶著 Canaccord 前往 Austin Moeller 旁邊。

Just my first question here, do you see any potential changes to tariffs or legislation coming that could benefit U.S.-made inverters and batteries similar to the recent change for bifacial panels?

我的第一個問題是，您是否認為關稅或立法可能會發生任何潛在的變化，這可能有利於美國製造的逆變器和電池，類似於最近雙面面板的變化？

Beyond the IRA, if you can help clarify the question?

除了 IRA 之外，您是否可以幫助澄清這個問題？

The recent change was with tariff rules.

最近的變化是關稅規則。

Yes, we're not aware of anything. I think that said, the adoption of -- an increased use of bifacial panels is a good thing for module-level power electronics providers because the incremental added harvest by module-level power electronics from a bifacial panel is more significant than from a regular panel, but that's completely a sidenote related to that regulation. We're not aware of anything cooking of a similar nature in the space that we operate in.

是的，我們什麼都不知道。我認為，增加雙面面板的使用對於模組級電力電子供應商來說是一件好事，因為雙面面板的模組級電力電子產品所帶來的增量收益比普通面板更重要，但這完全是與該法規相關的旁注。我們不知道在我們經營的空間內有任何類似性質的烹飪。

Okay. And just given that interest rates remain high, what trends have you started to see in core U.S. markets like California around leasing arrangements for rooftop solar?

好的。鑑於利率仍然居高不下，您在加州等美國核心市場開始看到圍繞屋頂太陽能租賃安排的哪些趨勢？

So I think the general expectation for increase of lease versus loan is evident in the market. Again, it's not a black and white in a complete switch, but we see that dynamic ourselves as well, as well as the entrance of new lease providers because of that trend and because of the tendency or the benefits that the IRA creates for third-party ownership. So that is definitely evident, and it is more evident in the battery markets like California and Puerto Rico.

因此，我認為市場上對租賃相對於貸款增加的普遍預期是顯而易見的。再說一次，這並不是一個完全的黑白分明的轉變，但我們自己也看到了這種動態，以及新的租賃提供者的進入，因為這種趨勢以及 IRA 為第三方創造的趨勢或利益——當事人所有權。所以這絕對是顯而易見的，而且在加州和波多黎各等電池市場上更為明顯。

And we'll take our next question from Kashy Harrison with Piper Sandler.

我們將回答 Kashy Harrison 和 Piper Sandler 提出的下一個問題。

And apologies if this was covered as I joined late, but I was wondering if you could just share your thoughts on the forward trajectory of the nonsolar business? It looks like you lost roughly $12 million in Q1, I believe, or just under $50 million annualized. Cell manufacturing is becoming a little bit more competitive. And so I'm just wondering how you think about the path to either getting towards breakeven operating income or selling the business or shutting it down and just focusing on the core solar business.

如果由於我加入較晚而涵蓋了這一點，我深表歉意，但我想知道您是否可以分享您對非太陽能業務前進軌蹟的想法？我相信，第一季您損失了大約 1200 萬美元，或者年化損失略低於 5000 萬美元。電池製造的競爭正變得更加激烈。因此，我只是想知道您如何看待實現盈虧平衡營業收入或出售業務或關閉業務並專注於核心太陽能業務的途徑。

Sure, Kashy, and thanks for the question. So in general, I'll start by maybe a little bit of dynamics, but then go into the heart of the question itself. From a dynamic point of view, usually, the storage market, especially the market in which our storage division is active, is very much been back of the year loaded with revenues. And that means that, usually, you see very low Q1 and relatively strong Q4. And in general, we do expect to see growth in the revenues and activity of this segment. So therefore, at least directionally, losses related to the storage division should go down as we move forward towards the second half of the year, not a lot in the first half, but more in the second half.

當然，卡什，謝謝你的提問。因此，總的來說，我將從一些動態開始，然後深入問題本身的核心。從動態的角度來看，通常情況下，儲存市場，尤其是我們儲存部門活躍的市場，今年的收入非常豐厚。這意味著，通常情況下，您會看到第一季非常低，而第四季度則相對強勁。總的來說，我們確實預期該細分市場的收入和活動將會成長。因此，至少在方向上，隨著我們進入下半年，與儲存部門相關的損失應該會下降，上半年不會很多，但下半年會更多。

Now directionally about the segment itself, I think that there are 2 areas of the segment that we need to look at. The first one is having a segment that is concentrated in making storage weather control collected to solar or not. And this is something that we see very great advantage of having these kind of capabilities. Even if we're selling batteries that are not collected to PV, the knowledge, the development and the technology that we're developing there is helpful for us. And we will continue to see multiple applications where you see storage without solar.

現在就細分市場本身而言，我認為我們需要關注該細分市場的兩個領域。第一個是有一個部分集中在使儲存天氣控制收集或不收集到太陽能。我們看到擁有此類功能的巨大優勢。即使我們銷售的電池不是收集到光伏發電的，我們在那裡開發的知識、開發和技術對我們也是有幫助的。我們將繼續看到多種無需太陽能的儲存應用。

By the way, just as an anecdote, we sell today sometimes residential batteries without a PV just for backup. So in general, having this kind of an asset is something that we see a great value in. And here, we invest. It's basically a segment that is developing product. And like every developing product, it takes a while.

順便說一句，正如軼事一樣，我們今天有時會出售沒有光伏的住宅電池，只是為了備用。所以總的來說，擁有這種資產是我們認為非常有價值的東西。它基本上是一個正在開發產品的部門。就像每個正在開發的產品一樣，這需要一段時間。

The second part of the segment is actually owning the cell manufacturing that we have in Sella 1. As we mentioned -- Sella 2, sorry. As we mentioned before, our next generation of residential batteries will not use NMC cells given the dynamics in the market to have LFP Chinese cells that are so cheap. We cannot compete with those, and therefore, we understand that these cells will not be used in our residential batteries. However, there are niche applications that are very much suitable for NMC. And these niche applications are, first of all, large enough to cover much more than what we have today in Sella 2. And they're actually very nicely profitable areas.

該部門的第二部分實際上擁有我們在 Sella 1 中擁有的電池製造能力。正如我們之前提到的，考慮到中國磷酸鋰電池如此便宜的市場動態，我們的下一代住宅電池將不會使用 NMC 電池。我們無法與這些電池競爭，因此，我們知道這些電池不會用於我們的住宅電池。然而，有一些小眾應用非常適合 NMC。首先，這些利基應用程式足夠大，涵蓋的範圍比我們今天 Sella 2 中的應用程式要多得多。

So in general here, again, we are developing the right products. We are moving towards selling more and more products into these niches that are related to frequency regulations and control -- spinning control. And we will see, over time, the overall, I believe, profitability coming from this segment. It's just a matter of how quickly we're able to utilize Sella 2 and, of course, how quickly we develop the product.

因此，總的來說，我們再次開發正確的產品。我們正在努力向這些與頻率調節和控制（旋轉控制）相關的領域銷售越來越多的產品。我相信，隨著時間的推移，我們將看到該領域的整體獲利能力。這只是我們能夠多快利用 Sella 2 的問題，當然，還有我們開發產品的速度有多快。

So right now, we see value of having this segment. We see value in developing the technology. And of course, like everything that we do in our business, we have to evaluate it from time to time, and we will continue to do this.

所以現在，我們看到了這個細分市場的價值。我們看到了開發該技術的價值。當然，就像我們在業務中所做的一切一樣，我們必須不時對其進行評估，並且我們將繼續這樣做。

I appreciate that, Ronen. Very helpful. And then just a quick follow-up. I think you mentioned $950 million of cash as the low point for the year. Can you just walk us through some of the drivers to increasing that cash balance for the rest of the year given that operating income should be negative still?

我很感激，羅南。很有幫助。然後進行快速跟進。我想你提到 9.5 億美元的現金是今年的最低點。鑑於營業收入仍為負數，您能否向我們介紹今年剩餘時間增加現金餘額的一些驅動因素？

Of course. I think that the main reason for where we are today is the fact that it takes a while -- when you are a manufacturer, at least large volumes, it takes a while to stop manufacturing and to adjust it to the levels of selling that you see; by the way, as it's painfully hard to grow the manufacturing capabilities into where you want them to be.

當然。我認為我們今天所處的主要原因是需要一段時間——當你是製造商時，至少是大批量生產，需要一段時間才能停止製造並將其調整到你的銷售水平。順便說一句，因為將製造能力提高到您想要的水平是非常困難的。

And that means that over the fourth and the first quarter -- fourth quarter of '23 and first quarter of '24, we -- it took us a while to break this train of manufacturing and to basically adjust the manufacturing layers other than what happens in the U.S. because in the U.S., we'll manufacture as much as we can to the level of inventory. But this is something that already ended.

這意味著在第四季度和第一季度 - 23 年第四季度和 24 年第一季度，我們 - 我們花了一段時間才打破這種製造流程，並基本上調整製造層，而不是發生什麼在美國，因為在美國，我們將盡可能生產以滿足庫存水準。但這是已經結束的事情了。

So we manufactured more than we sold. That means that we need to pay to our vendors for either component or for the manufacturing itself. And this is something that continued into Q1 and will, by the way, continue slightly into Q2. What happens in the meantime? First of all, we are collecting on our customer balances, and we did a very good quarter when it comes to collection. We will continue to do this in Q2.

所以我們生產的產品比銷售的產品多。這意味著我們需要向供應商支付組件或製造本身的費用。這種情況一直延續到第一季度，順便說一句，也會稍微延續到第二季​​。在此期間會發生什麼？首先，我們正在收集客戶餘額，在收集方面我們季度表現非常好。我們將在第二季度繼續這樣做。

And now most of the new sales that we're doing outside of the United States are going to be revenues coming from inventories that we already have and already paid for. And this is the thing that will start to turn the cash flow to be positive. Since in Q2, we will still see some payments related to the manufacturing in Q1, we will see cash generation that will be in Q2 lower than in Q3. And from Q3, Q4, we expect to be in a relatively strong cash flow generation both, by the way, on the operating, but also much less spending on CapEx or anything else.

現在，我們在美國境外進行的大部分新銷售收入將來自我們已經擁有並已支付的庫存。這將開始使現金流轉為正數。由於在第二季度，我們仍會看到一些與第一季製造相關的付款，因此我們將看到第二季的現金產生量將低於第三季。從第三季、第四季開始，我們預計現金流量將相對強勁，不僅在營運方面，而且在資本支出或其他方面的支出也會減少。

(Operator Instructions) We'll move next to Jordan Levy with Truist.

（操作員指示）我們將與 Truist 一起移動到 Jordan Levy 旁邊。

It's Henry on for Jordan here. Just to start, can you just dig a little bit deeper into the -- some of the pacing we can expect to see around the inventory reduction kind of over the next few quarters?

亨利替補喬丹登場。首先，您能否更深入地了解我們預計在接下來的幾個季度中會看到的庫存減少的一些節奏？

Can you just -- I didn't hear it will well, sorry?

你能不能──抱歉，我沒聽清楚？

Yes. Can you hear me?

是的。你聽得到我嗎？

Yes, now I do.

是的，現在我知道了。

Yes. Just to start, can you give a little more into some of the pacing we can expect around the inventory reduction over the next few quarters?

是的。首先，您能否進一步介紹我們預計未來幾季庫存減少的一些節奏？

Sure. So in general, and I think it also relates to how we see the inventory clearing over time, it's actually [anticipating], but it's also the ratio of how much of the inventory we're using. Because right now, first of all, in the last 2 quarters, our sales into the United States were higher compared to the rate of sales into Europe over the last few quarters, again, because of the channel inventory there.

當然。所以總的來說，我認為這也與我們如何看待隨著時間的推移庫存清理有關，它實際上是[預期]，但它也是我們使用的庫存量的比率。因為現在，首先，在過去兩個季度中，我們在美國的銷售額高於過去幾季在歐洲的銷售額，這也是因為那裡的通路庫存。

So that means that if we are manufacturing in the United States almost everything that we sell in the United States, the pacing of the inventory clearing is a little bit slower. Once we will start to see Europe growing again and because of the fact that most of the European inventory is already manufactured, the pace is going to grow.

因此，這意味著，如果我們在美國生產幾乎所有在美國銷售的產品，那麼庫存清理的速度就會變慢。一旦我們開始看到歐洲再次成長，並且由於大部分歐洲庫存已經製造完畢，成長速度將會加快。

When it comes to the pace itself of finishing this kind of inventory, I would assume that of the finished good inventory that we started the year with, approximately 2/3 will be cleared towards the end of the year. And of course, here, the pace is going to be dependent on how quickly the market recovers. But of what we had at the end of the year as finished goods, about 2/3 will be clearing this year. And you can linearly take it from like Q2 towards the end of the year in order to get there because this is the assumption that we take.

當談到完成此類庫存的速度本身時，我認為在我們年初的成品庫存中，大約 2/3 將在年底被清理。當然，在這裡，速度將取決於市場復甦的速度。但在我們年底的成品中，大約 2/3 將在今年清算。您可以從第二季到年底線性地實現這一目標，因為這是我們採取的假設。

Awesome. And then just a quick follow-up from me. Outside of California and Puerto Rico, which you all had mentioned, were there any other main U.S. regions that stood out to you all from a demand perspective on battery sales this quarter? Or has demand been relatively steady state in the rest of the country?

驚人的。然後是我的快速跟進。除了你們提到的加州和波多黎各之外，從本季電池銷售的需求角度來看，美國還有其他主要地區表現突出嗎？或者該國其他地區的需求處於相對穩定的狀態？

Yes, there wasn't -- other than Hawaii, but Hawaii is a different story, I can't think of a state that has as high an attach rate as the 2 states that you mentioned. But there is definitely an increase at some level of battery take-up also in Arizona and also, to some extent, in Texas probably.

是的，除了夏威夷之外沒有，但夏威夷是一個不同的故事，我想不出有哪個州的附加率像你提到的兩個州那麼高。但亞利桑那州的電池使用量肯定會增加，在某種程度上，德州的電池使用量也可能增加。

We'll take our next question from Vikram Bagri with Citi.

我們將回答花旗銀行 Vikram Bagri 的下一個問題。

I just wanted to follow up on the sell-through guidance that you gave for second quarter. I believe you said 15% to 20% up in 2Q. We're in the middle of the quarter, I was wondering like if you can highlight some markets where you're seeing the strength. I imagine some markets are growing faster than that rate and some markets are sort of underperforming relative to that rate. If you can identify markets where you're seeing that level of strength and some markets where you're not seeing the impact of the promotions and price reductions that you've implemented?

我只是想跟進您為第二季度提供的銷售指導。我相信你說第二季成長 15% 到 20%。我們正處於本季度中期，我想知道您是否可以重點介紹一些您看到實力的市場。我認為有些市場的成長速度比這個速度快，而有些市場相對於這個速度表現不佳。您是否可以確定哪些市場表現出如此強勁的實力，哪些市場您沒有看到所實施的促銷和降價措施的影響？

Yes, thanks for the question. First of all, it's very multidimensional because we're talking about the split between geographies as well as between segments. Now added onto that, really, sell-through by our distributors is not online data. So the fact that we're into the quarter, it doesn't mean we have that much information in front of us. It gets accumulated a bit later.

是的，謝謝你的提問。首先，它是多維的，因為我們談論的是地域之間以及細分市場之間的分裂。現在補充一點，實際上，我們經銷商的銷售量並不是線上數據。因此，我們進入本季度這一事實並不意味著我們面前有那麼多資訊。稍後就會累積起來。

I can say that there are some countries in Europe that are showing faster growth rates right now, Italy, Switzerland. As I mentioned before, Germany was a bit slow. The expectation is that it will begin to pick up because this legislation went through just a week ago, and those are probably just from specific data that I've seen.

我可以說，歐洲有一些國家現在的成長率更快，像是義大利、瑞士。正如我之前提到的，德國有點慢。預計它將開始回升，因為這項立法剛剛在一周前通過，而這些可能只是來自我看到的具體數據。

I would say that Italy and Switzerland stand out a bit. And probably also commercial is showing, in some cases, faster growth in -- and this data is a combination of how we track the installation rate and sell-through. So although it's -- we're a little bit more than 1 month into the quarter, I don't think there's a lot of definitive information that we can give on this topic probably other than what I mentioned that is more evident is -- are the countries that I referred to.

我想說義大利和瑞士比較突出。在某些情況下，商業可能也顯示出更快的成長——而這些數據是我們追蹤安裝率和銷售率的組合。因此，儘管本季已經過去 1 個多月了，但我認為除了我提到的更明顯的資訊之外，我們無法就這個主題提供很多明確的資訊——是我提到的國家。

Great. And on a related note, Zvi, you mentioned gaining market share through more innovation and more features in SolarEdge ONE software, particularly in C&I side and also on residential side going forward. We only see that R&D line item, which is $300 million on an annual basis. Could you talk about how you plan on gaining market share going forward, both in U.S. and Europe? Is the strategy to be differentiated on software side? Or there are more innovations on the hardware side that are upcoming that we don't fully appreciate?

偉大的。在相關說明中，Zvi，您提到透過 SolarEdge ONE 軟體的更多創新和更多功能來獲得市場份額，特別是在工商業方面以及未來的住宅方面。我們只看到研發項目，每年 3 億美元。您能否談談您計劃如何在美國和歐洲獲得市場份額？軟體方面的策略是否要差異化？或者硬體方面還有更多我們尚未充分認識到的創新即將到來？

No, thanks for the question. And hardware has been our bread and butter for years, and our expertise or the expertise of our R&D team in power electronics is a significant differentiator for the company. So it's definitely a core priority for us.

不，謝謝你的提問。多年來，硬體一直是我們的麵包和黃油，我們的專業知識或我們的研發團隊在電力電子方面的專業知識是公司的一個顯著差異化因素。所以這絕對是我們的核心優先事項。

And as I mentioned, I gave the example in my prepared remarks of the next-generation 3-phase large inverter for the European market that is targeting a growing segment. And there, we definitely plan and are in route to differentiation on the basis of hardware with the traditional factors in mind of efficiency, cost and the -- all of the capabilities around the interaction between the battery and the inverter.

正如我所提到的，我在準備好的發言中舉了一個例子，介紹針對歐洲市場的下一代三相大型逆變器，該逆變器的目標是不斷增長的細分市場。在那裡，我們肯定會計劃並正在以硬體為基礎實現差異化，同時考慮到效率、成本以及圍繞電池和逆變器之間相互作用的所有功能。

So that and a lot of the things that I didn't refer to in this conversation around safety that is coming from the optimizers where we are constantly introducing more unique safety features and, again, completely on the basis of our hardware infrastructure and capability.

因此，我在這次關於安全的對話中沒有提到的很多事情都來自優化器，我們不斷引入更多獨特的安全功能，並且完全基於我們的硬體基礎設施和功能。

That said, and when you refer to the R&D investments, definitely, the ratio of software to hardware investment today is different than it was 4 or 5 years ago. And software takes a bigger portion because it is much more important to the customers from a world that used to be based on feed-in tariff where it just mattered how much you -- electricity you deliver into the grid to a world today that is much more complex and self-consumption-oriented, which creates again another opportunity for differentiation, which we are focused on.

也就是說，當你提到研發投資時，毫無疑問，今天的軟體與硬體投資的比率與四、五年前不同。軟體佔據了更大的份額，因為它對於過去以上網電價為基礎的世界的客戶來說更為重要，在當今的世界中，重要的是你向電網輸送的電力有多少。消費為導向，這再次創造了另一個我們關注的差異化機會。

So we are definitely taking a balanced approach between the 2. But in historical perspective, it means that we're doing more in software today than we did in the past because we were always very heavily invested on the hardware side.

因此，我們肯定會在兩者之間採取平衡的方法。

We'll take our next question from Christine Cho with Barclays.

我們將回答巴克萊銀行 Christine Cho 提出的下一個問題。

I just had one question. Last quarter, with respect to gross margins, you mentioned batteries were -- the single-phase batteries were a reason for the drag on gross margin similar to this quarter. But you had also mentioned that you had a higher percentage of customers with discounts and that you expected for it to revert back. You didn't mention anything about customer mix this quarter. So just curious if you did see it revert back or was it pretty consistent with what you saw in 1Q -- or I'm sorry, last quarter.

我只有一個問題。上個季度，關於毛利率，您提到電池是——單相電池是毛利率受到拖累的一個原因，與本季類似。但您也提到，享受折扣的客戶比例較高，您預計折扣會恢復。您沒有提到本季度有關客戶組合的任何內容。所以只是好奇你是否確實看到它恢復了或者它與你在第一季看到的情況是否非常一致 - 或者我很抱歉，上個季度。

No, it's actually -- Christine, thank you for your question. It's actually, I mentioned in my prepared remarks, we did see that we saw lower ratio of customers that are -- that enjoy the volume discounts, and this was actually offsetting -- this benefit was offsetting of the additional batteries that we shipped above what we actually planned. So definitely, yes, this was the case.

不，實際上是——克里斯汀，謝謝你的問題。事實上，我在準備好的發言中提到，我們確實看到我們看到享受批量折扣的客戶比例較低，這實際上抵消了 - 這種好處抵消了我們運送的額外電池高於我們實際上是計劃好的。所以毫無疑問，是的，情況就是這樣。

The surprise here actually was not the change in mix that we did not anticipate. We anticipated this one. Surprise was actually simply selling more batteries, which I think was a little bit of a good thing, at least commercially.

這裡的驚喜其實並不是我們沒有預料到的組合變化。我們預料到了這一點。驚喜實際上只是銷售更多的電池，我認為這是一件好事，至少在商業上是如此。

Do you expect continued improvement on the percent -- the customer mix or no, it's back to normal in 1Q?

您是否預計百分比會持續改善—客戶組合是否會在第一季恢復正常？

I would say that it's relatively normal. The only thing I would say is, again, it's a very -- a small numbers game. And everyone that will give us a surprising -- a large customer that will come with the surprising order simply because he needs something may change it a little bit in those numbers. But in general, we do expect that the ratio that we see right now is the more normal compared to what we saw before.

我想說這是比較正常的。我唯一要說的是，這又是一場非常小的數字遊戲。每個會帶給我們驚喜的人——一個大客戶，僅僅因為他需要一些東西，就會帶來令人驚訝的訂單，那麼這些數字可能會有所改變。但總的來說，我們確實預計現在看到的比率比之前看到的更正常。

And it does appear that there are no further questions at this time. I would now like to turn it back to Zvi for any closing remarks.

目前看來確實沒有其他問題了。現在我想請 Zvi 發表結束語。

Thank you, operator. And thank you, everyone, for joining us on our call today. Have a good evening. Thank you.

謝謝你，接線生。感謝大家今天加入我們的電話會議。祝你晚上愉快。謝謝。

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

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接，並度過一個美好的夜晚。