Solaredge Technologies Inc (SEDG) 2024 Q3 法說會逐字稿

(Operator Instructions)

（操作員指令）

Hello and welcome to the Solaredge conference call for the third quarter ended September 30, 2024. 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 [Solar] 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.

您好，歡迎參加截至 2024 年 9 月 30 日的第三季 Solaredge 電話會議。本次電話會議將在公司網站 www.solaredge.com 的活動日曆頁面的投資者部分進行網路直播。本次通話是 [Solar] 的財產，版權歸 Solaredge 所有，保留所有權利，未經 Solaredge 明確書面同意，禁止對本次通話進行任何錄音、複製或傳播。

You may listen to a webcast replay of this call by visiting the event calendar page of the Solaredge investor website. I would now like to turn the call over to JB Lowe, head of investor relations for Solaredge. Please begin.

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直播重播。現在，我想將電話轉給 Solaredge 投資者關係主管 JB Lowe。請開始。

Thank you and good afternoon. Thank you for joining us to discuss Solaredge's operating results for the third quarter ended September 30, 2024 as well as the company's outlook for the fourth quarter of 2024.

謝謝您，下午好。感謝您加入我們討論 Solaredge 截至 2024 年 9 月 30 日第三季的營運業績以及公司對 2024 年第四季的展望。

With me. Today are Ronen and Faier Interim Chief Executive Officer; and Ariel Porat, Chief Financial Officer. Ronen will begin with a brief review of the results for the third quarter ended September 30, 2024. Ariel will review the financial results for the third quarter followed by the company's outlook for the fourth quarter of 2024. We will then open the call for questions.

與我一起。今天是 Ronen 和 Faier 臨時執行長；以及財務長 Ariel Porat。Ronen 將首先簡要回顧截至 2024 年 9 月 30 日的第三季業績。Ariel 將回顧第三季的財務業績，隨後預測該公司 2024 年第四季的前景。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.

請注意，本次電話會議將包含前瞻性陳述，其中涉及風險和不確定性，可能導致實際結果與管理層目前的預期有重大差異。

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.

我們鼓勵您查看我們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美國證券交易委員會提交的文件，以獲得對此類風險和不確定性的更完整描述。

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 US GAAP. The non-GAAP measures 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.

請注意，本簡報描述了某些非公認會計準則指標，包括非公認會計準則淨收入和非公認會計準則每股淨攤薄收益，這些指標並非依照美國公認會計準則編制。本簡報中介紹的非公認會計準則指標是因為我們相信它們為投資者提供了評估和了解公司管理階層如何評估公司經營績效的手段。這些措施的協調可以在我們的收益報告和美國證券交易委員會 (SEC) 文件中找到。

These non-GAAP measures should not be considered in isolation from as substitutes for or superior to financial measures prepared in accordance with US GAAP. Listeners who do not have a copy of the quarter ended September 30, 2024 press release or the supplemental material may obtain a copy by visiting the investor relations section of the company's website.

這些非公認會計準則指標不應被孤立地視為根據美國公認會計準則編制的財務指標的替代品或優於它們。尚未獲得截至 2024 年 9 月 30 日的季度新聞稿或補充資料的聽眾，可以訪問公司網站的投資者關係部分獲取副本。

I will now turn the call over to Ronen.

現在我將電話轉給羅南。

Thank you, JB and thank you for joining our call. As you are well aware, Solaredge is going through a transition 18 months ago, the market and the company were on an accelerating growth trajectory driven by record demand and outlook. Market dynamics changed abruptly leading to high inventory levels both in the channels at its solar age and the recovery from this situation has been longer than we anticipated.

謝謝你，JB，謝謝你加入我們的電話會議。眾所周知，Solaredge 在 18 個月前經歷了轉型，在創紀錄的需求和前景的推動下，市場和公司處於加速成長的軌道上。市場動態突然變化，導致太陽能時代通路的庫存水準高企，而且這種情況的恢復時間比我們預期的要長。

This current situation is challenging and requires us to delve into every aspect of our business and change the trajectory that the company has been trending over the past five quarters. While going through the transition period, we do not lose sight of the many strengths that solar has to offer to the renewable energy market nor of the opportunities that lay ahead of us.

目前的情況充滿挑戰，要求我們深入研究業務的各個方面，改變公司過去五個季度的發展軌跡。在經歷過渡期的同時，我們並沒有忽視太陽能為再生能源市場提供的諸多優勢，也沒有忽略眼前的機會。

So its strengths are many our technology which includes cutting hedge, homegrown software capabilities and cybersecurity positions as well to lead the rapidly changing energy market. This leadership requires relentless innovation in highly sophisticated technologies in order to provide the most advanced robust and cost efficient solutions. In addition, our DC optimized architecture is ideally suited for all segments of the solar market from residential to small scale utility due to its scalability.

因此，它的優勢在於我們的許多技術，包括削減對沖、自主研發的軟體能力和網路安全地位，以引領快速變化的能源市場。這種領導力要求在高度複雜的技術上不斷創新，以提供最先進、最強大且最具成本效益的解決方案。此外，由於其可擴展性，我們的直流優化架構非常適合從住宅到小規模公用事業的太陽能市場的所有部分。

Lastly, our last install base represents a significant opportunity for additional revenues from invertor upgrades to addition of storage EV chargers, integration with heat pumps and software based services, enabling and empowering all of these strengths is our people. We have an extremely dedicated and talented team of innovative thinkers that are passionate about shaping the renewable energy landscape through a proven track record of technological destruction.

最後，我們最後的安裝基礎代表著一個重要的機會，可以透過逆變器升級、增加儲存電動車充電器、與熱泵整合以及基於軟體的服務等方式獲得額外收入，而所有這些優勢的實現和增強都歸功於我們的員工。我們擁有一支極具奉獻精神和才華的創新思想家團隊，他們熱衷於透過經過驗證的技術破壞記錄來塑造再生能源格局。

We believe our opportunities are numerous. The PV market is still in its early stages with relatively low rates of penetration in many areas as demand for energy increases, more sophisticated technological products, offering superior power management, efficient storage solutions and state of the art software for energy management are needed. Our technology excels in all of those applications.

我們相信，我們的機會是無限的。光伏市場仍處於早期階段，許多領域的滲透率相對較低，隨著能源需求的增加，需要更先進的技術產品、提供卓越的電源管理、高效的儲存解決方案和最先進的能源管理軟體。我們的技術在所有這些應用中都表現出色。

In addition, we expect that manufacturing credits that we generate under section 45X will allow us to efficiently compete in the low cost with the low cost products at very attractive margins for us. After we consume the existing inventory, we believe that this advantage will significantly improve our ability to regain share and continue to develop new technologies with lower cost structures.

此外，我們預計，根據第 45X 條產生的製造業信貸將使我們能夠以非常具有吸引力的利潤率在低成本產品方面進行有效競爭。在我們消耗掉現有庫存之後，我們相信這一優勢將顯著提高我們重新獲得份額的能力，並繼續以更低成本結構開發新技術。

In order to capitalize on these trends and address these opportunities. We have identified three major priorities to put us back on a profitable growth trajectory. The first priority is to achieve financial and organizational stability. Second recapture market share and third refocus on our core businesses from a financial stability perspective. Our first and most important objective is free cash flow generation.

為了利用這些趨勢並抓住這些機會。我們確定了三大重點任務，以使我們重回獲利成長軌道。首要任務是實現財務和組織穩定。第二，重新奪回市場份額；第三，從金融穩定的角度重新關注我們的核心業務。我們的首要目標是產生自由現金流。

In order to achieve this, we are taking steps to optimize working capital, reduce spending and boost operational efficiency. Our initial steps have been have already started to positively impact our financial results in the third quarter. Our free cash use was approximately $75 million within our expected range and down significantly from the approximately $140 million used in the second quarter.

為了實現這一目標，我們正在採取措施優化營運資金、減少開支並提高營運效率。我們採取的初步措施已開始對第三季的財務表現產生正面影響。我們的自由現金使用量約為 7,500 萬美元，在預期範圍內，較第二季的約 1.4 億美元大幅下降。

This is despite of our continued investment in growing our US manufacturing footprint, which we expect will be a significant driver of profitability in the years ahead. This quarter, we consumed approximately $95 million of finished goods inventory net. Inventory consumption will continue to be a source of cash in the next few quarters. As the majority of the inventory needed for non US market is already manufactured and paid for. Our intention is to return to an inventory level that is essentially representing 90 inventory days by the end of 2025.

儘管我們持續投資擴大美國製造業足跡，但我們預計這將成為未來幾年獲利能力的重要推動力。本季度，我們淨消耗了約 9,500 萬美元的成品庫存。庫存消耗將在未來幾季繼續成為現金來源。因為非美國市場所需的大部分庫存已經生產並付款。我們的目標是到 2025 年底，庫存水準將恢復到 90 天的水準。

Also as announced this week, we successfully sold for the first -- our 1st 45x credits in the amount of approximately $40 million related to our US production. In the first half of 2024 we generated a higher amount of 45x credits from our manufacturing in Q3 alone and we expect to sell them over the next few months.

另外正如本周宣布的那樣，我們成功出售了第一批 45x 信用額度，價值約 4000 萬美元，與我們在美國的生產有關。2024 年上半年，僅在第三季度，我們就從製造中產生了更高的 45 倍積分，我們預計將在未來幾個月內出售這些積分。

With the recently released treasury clarifications confirming our ability to claim the full $0.11 per watt on DC optimized system. We expect to generate higher volumes of credit in Q4 2024 and in 2025 we are also reiterating our timeline to return to positive cash generation by the first half of 2025 and expect a free cash use in the fourth quarter this year to be within minus $20 million to neutral. Financial stabilization also includes relentless focus on operational efficiency to drive a return to consistent profitability.

最近發布的財政澄清確認了我們有能力對直流優化系統索取每瓦 0.11 美元的全部電費。我們預計2024 年第四季的信貸量將增加，2025 年，我們也重申了我們的時間表，即在2025 年上半年恢復正現金生成，並預計今年第四季度的自由現金使用量將在負2000 萬美元以內轉為中性。財務穩定還包括堅持不懈地專注於營運效率，以推動恢復持續獲利能力。

We've had to make tough decisions at the beginning of the third quarter. Making additional headcount and expense reductions, controlling operation expenses is an ongoing reality. In this current environment, we will continue to take cost saving measures by focusing on core projects, concentrating our global footprint on profitable markets and exiting non-strategic markets and product lines.

我們必須在第三季開始時做出艱難的決定。增加員工、削減開支、控制營運費用是一個持續的現實。在當前環境下，我們將繼續採取節省成本的措施，專注於核心項目，將我們的全球足跡集中在獲利市場，退出非策略市場和產品線。

We will continue renegotiating suppliers and logistic contracts and reducing corporate spending. At the same time, we will continue to invest in the development of new products and new technologies that we believe will drive the company's success in the years to come. Lastly on stability. Our CEO selection process is ongoing and we expect to announce the Board decision before the end of this year.

我們將繼續重新談判供應商和物流合同，並削減企業支出。同時，我們將繼續投資開發新產品和新技術，我們相信這將推動公司未來幾年的成功。最後關於穩定性。我們的執行長選拔過程正在進行中，我們預計將在今年年底前宣布董事會決定。

Our second key priority is recapturing market share our high inventory of European products. Even after the write downs and impairments that will discuss are a result of decrease in European demand and inventory build up in the distribution channels that said this inventory has already been paid for and allowed us to launch aggressive share recapturing measures.

我們的第二個主要任務是重新奪回高庫存的歐洲產品的市場份額。即使在討論減損和減損之後，這也是由於歐洲需求下降和分銷通路庫存增加造成的，這些庫存已經得到付款，並使我們能夠採取積極的份額收回措施。

Last week, we rolled out price reductions and promotions in Europe and international markets which will allow us to better compete and reduce the pricing GAAP with our low cost competitors. We believe that these price levels in conjunction of the 45x manufacturing credits and the rollout of next generation products which will carry significantly improved cost structures will enable us to return to our historic gross margin levels of over 30% once existing inventory is consumed, these price actions are taking a toll in the short term by requiring us to take inventory write down and also by generating lower revenues and gross margins for the next two quarters.

上週，我們在歐洲和國際市場推出了降價和促銷活動，這將使我們能夠更好地與低成本競爭對手競爭並降低定價 GAAP。我們相信，這些價格水準加上 45 倍的製造信用額度以及將顯著改善成本結構的下一代產品的推出，將使我們能夠在現有庫存消耗殆盡後恢復到超過 30% 的歷史毛利率水準。這些措施在短期內產生了負面影響，迫使我們減記庫存，同時也導致未來兩季的營收和毛利率下降。

We expect this period will be defined by continued inventory clearing from our distribution channels, lower seasonal installations and lower shipments to our due to their move towards the policy of higher inventory turns. As such we believe that we will see pickup in the demand as a result of our price reductions and promotion campaigns starting in the second quarter and more meaningfully in the second half of 2025.

我們預計，這段期間的特點將是我們的分銷管道繼續清理庫存，季節性安裝減少，以及由於轉向更高庫存週轉率的政策而導致的出貨量減少。因此，我們相信，隨著我們從第二季開始的降價和促銷活動，需求將會增加，並且在 2025 年下半年會有更顯著的回升。

Our share taking effort is also important as we expect that our new products scheduled to be released in 2025 will enjoy lower cost structures and address the changing needs of the market towards higher installations and higher storage attaches.

我們的份額爭奪努力也很重要，因為我們預計我們計劃於 2025 年發布的新產品將享有更低的成本結構，並滿足市場對更高安裝和更高儲存附件不斷變化的需求。

This brings us to our third key priority which is we focus on our core solar and storage businesses. We are strategically evaluating our business units, product portfolio and geographical presence and intend to focus on areas where we see long term potential for profitability and have a distinct competitive advantage. We've already taken some steps along these lines.

這就引出了我們的第三個關鍵任務，即專注於我們的核心太陽能和儲存業務。我們正在從策略上評估我們的業務部門、產品組合和地理分佈，並打算專注於那些我們認為具有長期獲利潛力和獨特競爭優勢的領域。我們已經朝著這個方向採取了一些措施。

First, just last month, we divested our automation machines business that was acquired as part of the SMRE acquisition in 2019 and we will continue to evaluate both core and non core assets for further rationalized cost and improve profitability.

首先，就在上個月，我們剝離了 2019 年收購 SMRE 時獲得的自動化機器業務，我們將繼續評估核心和非核心資產，以進一步合理化成本並提高獲利能力。

Second, we've already standardized our North American residential portfolio to a single skew that will serve all system sizes which has resulted in more streamlined manufacturing process and improved efficiencies across supply chain logistics, inventory management and service.

其次，我們已將北美住宅產品組合標準化為單一傾斜，以滿足所有系統規模的需求，從而簡化了製造流程並提高了供應鏈物流、庫存管理和服務的效率。

We intend to extend this [skew] simplification to our European and international businesses as we roll out our next generation products starting next year. Lastly, the suite of next generation products that we intend to roll out within the next several years are keenly focused on our core competencies of solar storage and energy management solution.

當我們從明年開始推出下一代產品時，我們打算將這種簡化擴展到我們的歐洲和國際業務。最後，我們計劃在未來幾年內推出的下一代產品套件將重點放在我們的核心競爭力：太陽能儲存和能源管理解決方案。

This will be the first residential solar and storage product line extension that solar has undertaken in several years and will represent a further leap in our leading edge PV and battery storage technology from both cost and reliability aspects. These next generation products and those that will follow them will all be designed to be manufactured on our proprietary automated assembly lines which will reduce labor costs and increase quality.

這將是太陽能幾年來首次進行的住宅太陽能和儲能產品線擴展，並將代表我們領先的光伏和電池儲能技術在成本和可靠性方面的進一步飛躍。這些下一代產品以及後續產品都將在我們專有的自動裝配線上生產，這將降低勞動力成本並提高品質。

We are extremely focused on the execution of these important activities and I'm confident that these priorities of financial stability, recapturing market share and focus on the core will be the key drivers in storage, recovery and return to profitability.

我們極度專注於這些重要活動的執行，我相信，財務穩定、重新奪回市場份額和關注核心等優先事項將成為儲存、恢復和恢復盈利的關鍵驅動力。

I will now turn to review the results of our third quarter of 2024.

現在我將回顧我們 2024 年第三季的業績。

We concluded the quarter with approximately $261 million in revenue revenues from our solar business were approximately $248 million. While revenues from our non solar businesses were approximately $13 million. This quarter, we shipped 1.85 million power optimizers, 58,000 inverters and 189 megawatt hour batteries.

本季結束時，我們的太陽能業務收入約為 2.61 億美元，其中約 2.48 億美元。而我們的非太陽能業務的收入約為 1,300 萬美元。本季度，我們出貨了 185 萬台功率優化器、58,000 台逆變器和 189 兆瓦時電池。

Our sell through for the quarter was approximately $450 million down 13% from the second quarter. Primarily a result of promotions implemented at the beginning of the second quarter on a megawatt basis, sell through of our products were similar to the second quarter, moving on to the regions.

本季我們的銷售額約為 4.5 億美元，較第二季下降 13%。主要是由於第二季初以兆瓦為單位實施的促銷活動，我們產品的銷售量與第二季相似，並轉移到各個地區。

Our US business continued to strengthen as we saw in the second quarter as sell through in the US residential space grew 8% quarter-over-quarter in the US Commercial segment sell through was up 15% underscoring the competitive advantages that we have in rooftop CNI through the scalability of our product which we believe will only be enhanced once we begin shipping domestically produced commercial inverters in Q1 2025.

正如我們在第二季度看到的那樣，我們的美國業務繼續增強，美國住宅領域的銷售額環比增長了8%，美國商業領域的銷售額增長了15%，凸顯了我們在屋頂CNI 方面的競爭優勢透過我們產品的可擴展性，我們相信，一旦我們在 2025 年第一季開始出貨國產商用逆變器，這種可擴展性就會增強。

As expected inventory channels in the United States were largely normalized by the end of the third quarter. In Europe, the market continue to be weak as we have been describing since the beginning of the year, sell through for our residential products on a dollar basis was down 34% while commercial fell through was down 26% mainly a result of our promotions here, we are focused on continuing to clear the channel through price reductions and promotions.

正如預期的那樣，美國的庫存管道在第三季末已基本恢復正常。在歐洲，市場持續疲軟，正如我們自今年年初以來一直描述的那樣，我們的住宅產品銷售額按美元計算下降了34%，而商業產品銷售額下降了26%，這主要是由於我們在這裡進行的促銷活動，我們專注於透過降價和促銷來繼續清理管道。

As I discussed about moving to operations in our Austin Texas facility, we manufactured over 500 megawatts of single phase inverters in the third quarter and expect to increase this space meaningfully in the fourth quarter. Given the substantial demand for domestic content products. Our Florida facility continues to rent and is on track to reach production capacity of 2 million domestic optimizers per quarter in Q1 2025. We also intend to start producing commercial inverters and optimizers as well as domestic residential batteries in Q1 '25 to summarize my remarks.

正如我所討論的轉移到我們位於德克薩斯州奧斯汀的工廠的運營時，我們在第三季度生產了超過500 兆瓦的單相逆變器，並預計在第四季度這一產量將大幅增加。鑑於對國產產品的龐大需求。我們在佛羅裡達的工廠繼續租賃，預計在 2025 年第一季達到每季 200 萬台國內優化器的生產能力。總結一下我的發言，我們還打算在 25 年第一季開始生產商用逆變器和優化器以及家用電池。

We are all well aware of the challenges the market and our situation have laid in front of us. However, we are confident that our continued efforts and focus on execution will allow us to get back on a trajectory of profitable growth and we will continue to update you on our progress in this direction.

我們都清楚知道市場和我們所面臨的挑戰。然而，我們相信，我們的持續努力和對執行的關注將使我們回到獲利成長的軌道，我們將繼續向您通報我們在這個方向上的進展。

I will now hand the call over to Ariel. Ariel, please.

我現在將電話交給 Ariel。請叫我艾莉兒。

Thank you very much, Ronen and good afternoon, everyone this quarter. My first as a CFO of Solaredge was characterized by a thorough analysis of the company's financial situation and its assets and liabilities in relation to our business outlook.

非常感謝 Ronen，本季的各位下午好。我擔任 Solaredge 財務長的第一項工作就是徹底分析公司的財務狀況及其資產和負債，並結合我們的業務前景。

As Ronen mentioned, the first of our three priorities is financial stability. Specifically, our top objective within this priority is to work towards positive free cash flow generation and profitable growth. I am extremely pleased that we were able to announce yesterday, our first sale of 45x advanced manufacturing production tax credits in consideration for approximately $40 million net of discounts and fees.

正如羅南所說，我們的三大優先事項中，首要的就是金融穩定。具體來說，我們在這項優先事項中的首要目標是努力產生積極的自由現金流和獲利成長。我非常高興我們昨天能夠宣布首次出售 45 倍先進製造業生產稅收抵免，扣除折扣和費用後價值約為 4000 萬美元。

The liquidity provided by the sales of these credits will enhance our cash position. Further strengthening our balance sheet on the side of expenses we have and will continue to focus on reducing costs and reach our non GAAP OpEx target of $100 million to $105 million per quarter by the beginning of 2025 and put ourselves on a path to continue to reduce expenses even further.

這些信貸銷售所提供的流動性將增強我們的現金狀況。在費用方面，我們進一步加強了資產負債表，並將繼續專注於降低成本，到 2025 年初實現每季 1 億至 1.05 億美元的非 GAAP 營運支出目標，並走上繼續降低成本的道路。更多。

Before reviewing the results of the third quarter, I would like to address the impairment and write downs of various assets that significantly impacted our financials this quarter. This was the result of a thorough analysis of the current economic value of our assets as required by GAAP due to the significant difference between the book value of our assets and the company's market cap due to the sustained decline in our stock price. The result of this review was an impairment and write-down in the amount of $1.03 billion, which impacted many line items of the company's P&L and balance sheet.

在回顧第三季的業績之前，我想先談談對我們本季財務狀況產生重大影響的各類資產的減損和減記。這是由於我們股價持續下跌導致我們的資產帳面價值與公司市值之間存在巨大差異，因此根據 GAAP 的要求對我們資產的當前經濟價值進行徹底分析的結果。這次審查的結果是減損和減記 10.3 億美元，影響了公司損益表和資產負債表的許多項目。

I will start with the inventory. This quarter, we wrote down $612 million of inventory, of which $536 million is related to our solar business and $76 million is related to our non-solar business. This is a result of our assessment of the outlook for various markets, price reductions, and promotions taken as part of the market share recapture initiative as well as other steps taken to focus on core markets and product lines.

我先從庫存開始。本季度，我們減記了 6.12 億美元的庫存，其中 5.36 億美元與我們的太陽能業務有關，7,600 萬美元與我們的非太陽能業務有關。這是我們對各個市場前景的評估、為奪回市場份額而採取的降價和促銷措施以及為關注核心市場和產品線而採取的其他措施的結果。

These write-downs fall into the following categories: first, excess inventory, we no longer expect to sell due to lower demand in the European region, which we continue to see in this quarter; second, the accelerated increase in demand for domestic content, which came sooner than anticipated and has reduced demand for some products in our inventory; third, raw materials related to the above-mentioned SKUs; fourth, partial write-downs of certain SKUs due to the pricing reductions and promotions that we implemented in Europe as we now anticipate selling below cost.

這些減記分為以下幾類：首先，過剩庫存，由於歐洲地區需求下降，我們不再預期出售，這種情況在本季度繼續出現；第二，對國產產品的需求加速成長，比預期的要早，減少了我們庫存中一些產品的需求；第三，與上述SKU相關的原料；第四，由於我們在歐洲實施的降價和促銷活動，某些 SKU 被部分減記，因為我們現在預計以低於成本的價格銷售。

Separately, we also took a $47 million charge related to non-cancelable raw material orders. The next item is long-lived assets. For the solar business, we took a write-down of $94 million, primarily due to the retirement of machinery, which is no longer in use following a reduction in manufacturing. These machines are highly specialized, so their salvage value is assumed to be zero or close to zero. In the energy storage business, we took an impairment of $113 million on manufacturing assets as a result of the continued lower utilization of Sella 2 and lack of certainty around future orders.

另外，我們也承擔了與不可取消的原物料訂單相關的4,700萬美元的費用。下一個項目是長期資產。對於太陽能業務，我們減記了 9,400 萬美元，主要是由於機器退役，由於製造量減少，這些機器不再使用。這些機器高度專業化，因此它們的殘值被認為是零或接近零。在能源儲存業務方面，由於 Sella 2 的利用率持續較低以及未來訂單缺乏不確定性，我們對製造資產提列了 1.13 億美元的減損。

Next, on intangibles. We wrote off $28 million of various other intangible assets and certain investments since based on our assessment, the carrying value on our books was higher than the fair market value.

接下來談談無形資產。我們註銷了 2800 萬美元的其他無形資產和某些投資，因為根據我們的評估，帳面價值高於公平市場價值。

Lastly, on deferred tax assets. We believe there is uncertainty as to when we will be able to utilize certain of our net operating losses, credit carryforwards, and other deferred tax assets. Therefore, we have recorded a valuation allowance in the amount of $131 million against deferred tax assets, for which we have concluded it is more likely than not that they will not be realized.

最後，關於遞延稅項資產。我們認為，尚不確定何時能夠利用某些淨營業虧損、信用結轉和其他遞延稅務資產。因此，我們針對遞延所得稅資產提列了 1.31 億美元的估值準備，並且我們得出結論，這些資產很可能不會實現。

Now, I will go into the quarterly results. Total revenues for the third quarter were $260.9 million. Revenues from our solar segment, which include the sale of PV-attached residential and commercial batteries were $247.5 million. Solar revenues from the US this quarter amounted to $128.7 million, representing 52% of our solar revenues. Solar revenues from Europe amounted to $78.9 million representing 32% of our seller revenues. International markets, solar revenues amounted to $39.9 million, representing 16% of our total solar revenues.

現在，我將介紹季度業績。第三季總收入為2.609億美元。我們太陽能部門的收入（包括光伏住宅和商業電池的銷售）為 2.475 億美元。本季來自美國的太陽能收入為 1.287 億美元，占我們太陽能收入的 52%。來自歐洲的太陽能收入達到 7,890 萬美元，占我們賣方收入的 32%。國際市場，太陽能收入達 3,990 萬美元，占我們太陽能總收入的 16%。

On a megawatt basis, we shipped 341 megawatts to the United States, 191 megawatts to Europe, and 318 megawatts to the international markets for approximately 850 megawatts of total shipments. 67% of total megawatt shipments this quarter were commercial and utility products and the remaining 33% were residential.

以兆瓦計算，我們向美國運送了 341 兆瓦，向歐洲運送了 191 兆瓦，向國際市場運送了 318 兆瓦，總出貨量約為 850 兆瓦。本季兆瓦總出貨量中 67% 為商業和公用事業產品，其餘 33% 為住宅產品。

In the third quarter, we shipped 189 megawatts hour of batteries with a majority shipped to Europe and international markets. As a result of the pricing decreases and promotions we implemented earlier this year, ASP per watt, excluding battery revenues, was $0.203, a 5% decrease from $0.214 last quarter. Our blended ASP per kilowatt hour on all PV attached batteries was $317 this quarter, down from $371 in the previous quarter. This decrease is largely due to additional price reductions and promotions as well as geographic mix shift.

第三季度，我們出貨了 189 兆瓦時的電池，其中大部分是運往歐洲和國際市場。由於我們今年稍早實施的價格下降和促銷活動，不包括電池收入的每瓦平均售價為 0.203 美元，比上一季的 0.214 美元下降了 5%。本季度，我們所有光伏電池每千瓦時的綜合平均售價為 317 美元，低於上一季的 371 美元。下降的主要原因是進一步降價和促銷以及地理組合轉變。

Revenues this quarter from our non-solar businesses, comprising our energy storage and all other segments amounted to $13.1 million. Consolidated GAAP gross margin for the quarter was a negative 269.2% compared to negative 4.1% in the previous quarter driven by the large impairment charge taken this quarter. Non-GAAP consolidated gross margin this quarter was negative 265.4% compared to 0.2% in the previous quarter, driven by the large impairment charge taken this quarter.

本季度，我們非太陽能業務（包括能源儲存和所有其他部門）的收入為 1,310 萬美元。本季綜合 GAAP 毛利率為負 269.2%，而上季為負 4.1%，原因是本季提列了大額減損準備。本季非公認會計準則綜合毛利率為負 265.4%，而上季為 0.2%，主要由於本季提列了較大額度的減損準備。

On a non-GAAP basis, operating expenses for the third quarter were $116.3 million compared to $114.8 million in the previous quarter. The quarter-over-quarter increase was largely related to bad debt expense recorded as part of our asset impairment analysis. At a normalized level of bad debt accrual, our operating expenses would have been approximately $108 million. As mentioned by Ronen, we will work to continue to push our expenditures down while still allowing significant resources for new product developments.

以非美國通用會計準則計算，第三季營業費用為 1.163 億美元，上一季為 1.148 億美元。環比成長主要與我們資產減損分析中記錄的壞帳費用有關。在壞帳提列的正常水準下，我們的營運費用約為 1.08 億美元。正如 Ronen 所說，我們將繼續努力降低開支，同時仍將大量資源用於新產品開發。

GAAP operating loss for the quarter was [$1.09 billion] compared to an operating loss of $160.2 million in the previous quarter. Non-GAAP operating loss for the quarter was $801.1 million compared to a non-GAAP operating loss of $114.3 million in the previous quarter. GAAP net loss was $1.2 billion or $117 million, excluding the impact of write-downs and impairments compared to a GAAP net loss of $130.8 million in the previous quarter.

本季 GAAP 營業虧損為 10.9 億美元，而上一季的營業虧損為 1.602 億美元。本季非公認會計準則營業虧損為 8.011 億美元，而上一季非公認會計準則營業虧損為 1.143 億美元。GAAP 淨虧損為 12 億美元（或 1.17 億美元），不包括減損和減損的影響，而上一季 GAAP 淨虧損為 1.308 億美元。

Our non-GAAP net loss was $874.3 million or $125 million, excluding the impact of write-downs and impairments compared to a non-GAAP net loss of $101.2 million in the previous quarter. GAAP net loss per share was $21.13 for the third quarter compared to $2.31 in the previous quarter. Non-GAAP net loss per share was $15.33 compared to $1.79 in the previous quarter.

我們的非公認會計準則淨虧損為 8.743 億美元或 1.25 億美元，不包括減損和減損的影響，而上一季的非公認會計準則淨虧損為 1.012 億美元。第三季每股 GAAP 淨虧損為 21.13 美元，上一季為 2.31 美元。非公認會計準則每股淨虧損為 15.33 美元，而上一季為 1.79 美元。

Turning now to the balance sheet. As of September 30, 2024, cash, cash equivalents, bank deposits, restricted bank deposits, and investments were approximately $740 million. Net of debt, this amount was approximately $53 million. This quarter, cash used in operating activities was $64 million. Free cash flow for the quarter was a use of $75 million. AR net decreased this quarter to $239.4 million compared to $295.6 million last quarter. As a result, we brought down DSOs from 153 days in the second quarter to 129 days in the third quarter. Our inventory level, net of reserves, was at approximately $800 million compared to $1.5 billion in the previous quarter. This figure is, of course, inclusive of the $612 million in impairments we took in inventory.

現在來看看資產負債表。截至 2024 年 9 月 30 日，現金、現金等價物、銀行存款、受限銀行存款及投資約為 7.4 億美元。扣除債務後，該金額約為 5,300 萬美元。本季經營活動所用現金為 6,400 萬美元。本季自由現金流使用量為 7,500 萬美元。本季應收帳款淨額下降至 2.394 億美元，而上季為 2.956 億美元。結果，我們將 DSO 從第二季的 153 天減少到第三季的 129 天。我們的庫存水準（扣除儲備）約為 8 億美元，而上一季為 15 億美元。當然，這個數字包括了我們在庫存中計入的 6.12 億美元減損損失。

Turning to our guidance for the fourth quarter of 2024. We are guiding revenues to be within the range of $180 million to $200 million. We expect non-GAAP gross margin to be within the range of negative 4% to 0% including approximately 1,000 basis points of net IRA benefit. We expect our non-GAAP operating expenses to be within the range of $103 million to $108 million.

談到我們對 2024 年第四季的指導。我們預計營收將在 1.8 億美元至 2 億美元之間。我們預計非 GAAP 毛利率將在負 4% 至 0% 之間，其中包括約 1,000 個基點的淨 IRA 收益。我們預計非公認會計準則下的營業費用將在 1.03 億美元至 1.08 億美元之間。

Revenues from the solar segment are expected to be within the range of $170 million to $190 million. Gross margin from the solar segment is expected to be within the range of 0% to 3%, including approximately 1,050 basis points of net IRA benefit. In the fourth quarter, we expect our free cash flow will be within the range of negative $20 million to neutral.

預計太陽能部門的收入將在 1.7 億美元至 1.9 億美元之間。太陽能部門的毛利率預計在 0% 至 3% 之間，其中包括約 1,050 個基點的淨 IRA 收益。第四季度，我們預期自由現金流將在負2,000萬美元至中性之間。

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

我現在將把電話轉給接線員，以便回答問題。

Brian Lee, Goldman Sachs.

高盛的布萊恩李 (Brian Lee)。

I had a couple. First off, on the new price reductions and the asset revaluation, it seems like that's a little bit more steep than we had been anticipating. So I know, Ronen, you had talked about last quarter, you can exceed I think it was $550 million in revenue when inventory normalizes by 3Q '25. That was the view last quarter. Given the pricing and just the promotional activity, sell-through obviously is much lower than that right now. Can you speak to what the cadence is of this new level and whether that $550 million is still in play for later 2025?

我有幾個。首先，就新的降價和資產重估而言，這似乎比我們預期的要高一些。所以我知道，Ronen，你上個季度談到過，當庫存在 2025 年第三季恢復正常時，你的收入可以超過 5.5 億美元。這是上個季度的觀點。考慮到定價和促銷活動，銷量顯然比現在低得多。您能否談談這一新境界的節奏，以及這 5.5 億美元是否仍在 2025 年下半年使用？

So I think that you know when, especially today after the results of the actions last night, I think that we understand that we are living now in a little bit of more of a volatile world. If you look at the US, the US for us was good in Q2. I think Q3, we expect it, by the way, to continue and be good. But with the recent developments here in the United States, it's very hard to see and to understand what will be the market's looking like in the next year. So here, I would say that while we did see an improvement, I think that this has become a little bit unclear.

所以我認為，特別是在今天昨晚行動的結果公佈之後，我認為我們明白我們現在所處的世界變得更加動盪。如果你看看美國，你會發現美國第二季的表現對我們來說是不錯的。順便說一句，我認為第三季的表現將會持續良好。但隨著美國最近的發展，很難預見和了解明年的市場狀況。因此，我想說，雖然我們確實看到了改善，但我認為這變得有點不清楚。

When it comes to Europe, Europe is definitely, as we see today is continue to decline. It is not actually strengthening. And we believe that we may see this decline continuing into 2025. And as such, for us to commit to a number, given the fact that volumes may change, political stances are taking a very large, I would call it, impact on the market as it's going to look in the near term. And the fact that, as you mentioned, we did increase our prices, but also, by the way, launched some of the promotions that we did throughout the last quarter. I think that will be very hard for us to commit to such a number and the timing of this amount.

說到歐洲，正如我們今天所看到的，歐洲肯定正在繼續衰落。這實際上並沒有加強。我們相信這種下降趨勢可能會持續到 2025 年。因此，對我們來說，考慮到數量可能會發生變化，政治立場對市場產生了非常大的影響，我認為這在短期內就會發生。事實上，正如您所說，我們確實提高了價格，而且順便說一下，我們還推出了上個季度實施的一些促銷活動。我認為，我們很難承諾這樣的數字和時間。

At the same time, we do believe that the actions that we've taken will allow us to continue and especially, as we said, towards the second quarter of '25 to increase the revenues again because we are helping with those prices, the channels to be clear, slightly quicker than even anticipated. We do believe, and we also got feedback from the last price reductions and promotions from our distributors that they believe that this is something that can improve share. But again, the extent and timing, I think, today is hard to predict.

同時，我們確實相信，我們所採取的行動將使我們能夠繼續增加收入，特別是正如我們所說的，到 2025 年第二季度，我們將再次增加收入，因為我們正在幫助這些價格、管道更確切地說，比預期的還要快一些。我們確實相信，而且我們也從經銷商最近的降價和促銷中得到了反饋，他們認為這可以提高市場份額。但我認為，今天很難預測其程度和時間。

Maybe just a quick follow-up, and I'll pass it on. So just based on your comments, it sounds like you're inferring that obviously, the Q4 guide is down for revenue, but it sounds like Q1 would be down again and then Q2 is when it starts to pick back up sequentially. If that's the right cadence to expect, can you speak to -- you under shipped by about close to $200 million this quarter. What's the expectations over the next few quarters?

也許只是一個快速的跟進，然後我就會傳遞它。因此，僅根據您的評論，聽起來您推斷，顯然第四季度的收入指南會下降，但聽起來第一季的收入會再次下降，然後第二季的收入會開始連續回升。如果這是正確的預期節奏，您能否談談——本季您的出貨量大約少了近 2 億美元。未來幾季的預期是什麼？

And then on market share specifically, it sounds like you're acknowledging there's some share last year. How much of that is also playing into the declines you're seeing over the next few quarters? And are you expecting on the 2Q pickup that's when you start to see share gains? Is that the base case view?

然後具體到市場份額，聽起來你承認去年有一定的份額。其中有多少因素也會對未來幾季的下滑產生影響？您是否預期第二季的業績回升將帶來股價上漲？這是基本情況觀點嗎？

So first of all, Brian, actually, we do not expect Q1 to be necessarily lower than Q4. What we see in Q4 is, first of all, the impact of the fact that we have reduced our prices while we will not see an immediate impact on the quantities that are going to be sold. You would like to assume that there is some elasticity of demand to the pricing and usually lower pricing should bring the demand up. But Q4 is usually characterized with, first of all, seasonality impact of going into winter, also for many of our distributors, this is the time for their -- being a private company, this is the time that they released their annual reports in Europe, these are reports that are made public even for private companies sometimes. And that means that they would like to reduce inventories.

所以首先，布萊恩，實際上，我們並不認為第一季的業績一定會低於第四季。首先，我們在第四季看到的是降低價格的影響，但不會對銷售數量產生直接影響。您可能認為需求對定價具有一定彈性，通常較低的定價會提高需求。但第四季度通常的特點是，首先是進入冬季的季節性影響，對於我們的許多分銷商來說，這是他們作為一家私營公司在歐洲發布年度報告的時候。這些報告。這意味著他們希望減少庫存。

So therefore, I would say that Q4, for us, I believe, is mentioning -- sorry, is similizing a little bit of a lower point because we are taken the toll of the price decreases, but we don't see any of the impact. I would also add to this, by the way, that we took a little bit of assumptions here about, again, what would be also the amount and composition of inventories that some of the distributors would like to hold at the end of the year. So we believe that we should see stabilization, if not even increase in Q1, simply because we believe that there will be some impact to the price reductions that we did in the past.

因此，我認為第四季度對我們來說是值得關注的——抱歉，這是一個略低的點，因為我們受到了價格下降的影響，但我們沒有看到任何影響。順便說一句，我還要補充一點，我們在這裡做了一些假設，同樣，一些分銷商希望在年底持有的庫存數量和組成是多少。因此，我們認為，我們應該看到第一季的穩定，甚至成長，因為我們相信這會對我們過去的降價產生一些影響。

Now moving forward to where we are on share. While in the US, it's relatively easy, you have Wood McKinsey, and we need to look at their charts and I think that we can see what's the results. In Europe -- and by the way, and it's not always accurate because you see also past data sometimes changing, but I think it's directionally right. In Europe, it's very hard to measure this.

現在繼續討論我們的分享內容。而在美國，這相對容易，有伍德麥肯錫，我們需要看看他們的圖表，我想我們就能看到結果是什麼。在歐洲——順便說一句，它並不總是準確的，因為你會看到過去的數據有時會發生變化，但我認為它的方向是正確的。在歐洲，衡量這一點非常困難。

So it's hard for us to say whether it's a share loss issue rather than simply the fact that we hear from almost every market in which we are participating that the size of the market itself actually goes down. So here, I do not know what to attribute it to. But I do believe that, again, this is something that plays a major role in where we see our numbers.

因此，我們很難說這是否是份額損失的問題，而僅僅是因為我們從幾乎每個我們參與的市場都聽說，市場規模本身實際上正在下降。所以在這裡，我不知道該將其歸因於什麼。但我確實相信，這對我們看到的數字起著重要作用。

Going into Q2, we believe that the things that we will start to see is, first of all, again, that the volumes will start to pick up because we believe that there is -- and we heard from our customers that there is elasticity of demand to the prices. They believe that the prices as they are right now. Plus, by the way, the promotions that we give. That are more of a limited time offers that we give on the purchase of new products actually helped the channels clear the inventory a little bit quicker.

進入第二季度，我們相信我們將開始看到的事情是，首先，再次，銷量將開始回升，因為我們相信 - 我們從客戶那裡聽說，需求對價格的影響。他們認為價格目前就是這樣的。順便說一下，另外我們還提供促銷活動。我們在購買新產品時提供的限時優惠實際上有助於渠道更快地清理庫存。

So while we undershipped the market, we know approximately what was the number in Q3. Again, it's hard for us, given all of these impact of seasonality of inventory turns of pricing to really estimate what will be under shipping in the next few quarters. What we do expect, though, by the way, is that actually the pace of the channel clearing will increase because of the higher competitiveness of our products due to the lower prices.

因此，雖然我們的出貨量不足，但我們大致知道第三季的數字。再次，考慮到庫存週轉率和定價的季節性影響，我們很難真正估計未來幾季的運輸量。順便說一句，我們確實預計，由於價格較低導致我們的產品競爭力增強，渠道清理的速度實際上將會加快。

So here, simply, I would say, more than giving a direction what we basically say is that there are a lot of moving parts in a market that is already a little bit turbulent. And therefore, it's hard for us to give numbers moving forward or try to be a little more scientific, I would say, in the way that we're trying to measure those markets.

因此，在這裡，我想說的是，我們不僅僅給出一個方向，我們基本上是說，在一個已經有點動盪的市場中，有很多活動因素。因此，我們很難給出未來的數字，或試圖以更科學的方式衡量這些市場。

Colin Rusch, Oppenheimer.

奧本海默的科林拉什 (Colin Rusch)。

As you target getting back to breakeven on a cash flow basis, can you give us some of the assumptions that you're working with from a megawatt basis, OpEx, and gross margin perspective, just to give us a sense of -- or magnitude of how much business you'll be doing and what that margin profile looks like?

當您的目標是在現金流量基礎上實現收支平衡時，您能否從兆瓦基礎、營運支出和毛利率的角度給我們一些假設，只是為了讓我們了解一下——或者說規模？將開展多少業務以及利潤狀況如何？

So while we cannot give the actual percentages because simply, they're changing very much based on the amounts that we're selling in each and every market, the composition of each and every market products between those inventories that we haven't done. And also, by the way, again, the gross margin that's going to be determined from those ones because, for example, if you sell batteries, this is much lower gross margins than inverters. It's not something that we do, but I'll try to give you at least a direction around it.

因此，雖然我們無法給出實際百分比，因為它們會根據我們在每個市場銷售的數量、我們尚未完成的庫存之間每個市場產品的組成而發生很大變化。順便說一下，毛利率再次由這些因素決定，因為例如如果你銷售電池，它的毛利率比逆變器低得多。這不是我們要做的事情，但我會嘗試至少為你提供一個方向。

Far and foremost, the most important thing is that when you look today and if you'd say that roughly 50% of our business is coming from non-US market, that means that this is an inventory that already exists. So by taking the sales that we have or revenue that we have every quarter in the non-US market, just take the gross margin and assume that it comes from inventory. And here, you have the first source of our cash intake. That's, by the way, in the last quarter, we said that we approximately consumed $95 million of inventory. So as you saw that operating expenses were lower, this by itself is covering. And if you saw that -- or if you see in our guidance that next quarter margin will be approximately zero, even at zero margin, you're plus/minus covering the operating expenses.

最重要的是，當你今天看，如果你說我們大約 50％ 的業務來自非美國市場，這意味著這是一個已經存在的庫存。因此，透過計算我們每季在非美國市場的銷售額或收入，就得到毛利率，並假設它來自庫存。這就是我們的現金收入的第一個來源。順便說一下，我們說上個季度我們消耗了大約 9500 萬美元的庫存。正如您所看到的，營運費用較低，這本身就是一種彌補。如果您看到了這一點——或者如果您在我們的指導中看到下一季的利潤率將接近零，那麼即使是零利潤率，您也會增加/減少營運費用。

The other aspect that we're looking, and I think that we're happy to announce yesterday is the fact that we're able now to start selling our IRA credits. So we did sell already $40 million of IRA credits. These are credits that were accumulated until the first half.

我們正在考慮的另一個方面，我想我們昨天很高興地宣布，我們現在可以開始出售我們的 IRA 積分了​​。因此我們確實已經出售了4000萬美元的IRA信用額。這些都是到上半場為止所累積的學分。

As we mentioned on the call, we have a similar or actually higher number if you take the $0.11 number for Q3. So now we're working to sell this one. So I think that the cadence of starting to sell IRA credit, let's say, a quarter or two quarters after they're being actually accumulated. And the fact that at least half of our business will come from inventory that is already paid for and exists on our balance sheet is something that by itself should cover the operating expenses and will allow us to generate cash flow.

正如我們在電話會議中提到的那樣，如果以第三季的 0.11 美元計算，我們的數字將會類似甚至更高。因此，我們現在正在努力銷售這件產品。因此，我認為開始出售 IRA 信用的節奏是，比方說，在實際累積之後的一個季度或兩個季度。事實上，我們的業務至少有一半來自已付款並存在於資產負債表上的庫存，這本身應該可以覆蓋營運費用，並使我們能夠產生現金流。

And lastly, by the way, because we talk about free cash flow and not just operating cash flow, We've -- I think, very much materialized most of our investments needed in the US in order to grow. So also, capital expenditures are going to be low. So these three things, almost zero capital expenditures, sale of IRA credits and usage of inventory should get us there irrelated almost to the level of OpEx.

最後，順便說一下，因為我們談論的是自由現金流而不僅僅是經營現金流，我認為，我們已經實現了在美國實現成長所需的大部分投資。因此，資本支出也將處於較低水準。因此，這三件事，幾乎為零的資本支出、IRA 信用的銷售和庫存的使用應該可以讓我們達到這一目標，幾乎與營運支出的水平無關。

And then how quickly can you start bringing in new products into the portfolio and starting to sell them?

那麼您多快可以開始將新產品引入產品組合併開始銷售它們？

So they are expected to be introduced during the course of next year. But the order that we're going to basically introduce them is that, first of all, we will introduce our 20-kilowatt inverter for the 3-phase inverter for the German and Austrian market that is growing very rapidly. But more important, by the way, it's growing most rapidly in the 15- to 30-kilowatt installation sizes, which is exactly where this inverter is aiming at.

因此預計它們將於明年推出。但我們推出這些產品的順序基本上是這樣的：首先，我們將推出針對成長非常迅速的德國和奧地利市場的 20 千瓦三相逆變器。但更重要的是，15至30千瓦的安裝規模成長最快，這正是此逆變器的目標市場。

The second one will be our second-generation battery that will enjoy better cost structure. It's a modular battery that is designed to work with our new invertors, very much simplifying the installation, very cost-effective from the fact that it is based on LFP sales. And therefore, this will be a month or two or three -- about a quarter after the introduction of the first inverter. And then, by the way, our US fourth generation inverter that will come towards the end of the year. So everything will come during the next year.

第二個是我們的第二代電池，它將具有更好的成本結構。它是一種模組化電池，旨在與我們的新逆變器配合使用，大大簡化了安裝，而且由於它基於 LFP 銷售，因此非常具有成本效益。因此，這將是第一個逆變器推出後的一個月、兩個月或三個月——大約一個季度之後。順便說一下，我們的美國第四代逆變器將於今年底上市。所以一切都會在明年到來。

The pace of introduction is very much dependent on two things. One is how quickly we can ramp up the manufacturing for those products. We will usually start to manufacture them as the NPI units in our Sella 1 factory, but then expecting them to our other factories worldwide. And then how quickly we're able to really ramp up production using the fact that we're also going to use our automated assembly lines to make those products. And this is also relatively new for us doing inverter may change a little bit.

引入的步伐很大程度取決於兩件事。一是我們能多快提高這些產品的產量。我們通常會在我們的 Sella 1 工廠開始生產它們作為 NPI 單元，然後將它們運送到我們全球的其他工廠。然後，由於我們將使用自動裝配線來生產這些產品，因此我們能夠多快地提高產量。而且這個對於我們做逆變器來說也是比較新的，可能會有一點點的變化。

But I would assume that over the course of next year, you will start to see first shipments of all of these products. I would say that most of our statements related to next year's cash generation at least, are not related to those new products. So basically, we're relatively conservative in our financial planning around them. We don't take a lot of impact or expected impact from them. But I can say that this is a great focus for us to make sure that these products are coming out on time, automatedly, manufactured and I think that these are very good products for the market as we see it developing.

但我認為，明年你就會看到所有這些產品的首批出貨。我想說的是，我們大多數與明年現金產生有關的報表至少與這些新產品無關。所以基本上，我們對他們的財務規劃相對保守。我們不會受到它們太大的影響或預期的影響。但我可以說，這對我們來說是一個非常重要的焦點，以確保這些產品能夠按時、自動化、製造出來，我認為，隨著市場的不斷發展，這些都是非常好的產品。

Mark Strouse, JPMorgan.

摩根大通的馬克‧斯特勞斯 (Mark Strouse)。

A follow-up to Colin's question there on cash flow. Can you just give us an update now that the convert is current how you're thinking about refinancing, repaying that. Is the goal to demonstrate your improvement in cash flow, potentially wait as long as possible to get better terms. Is there anything you're looking to tactically do sooner? And then just a real quick follow-up. On the 45x tax credit transfer, are you able to talk about the net pricing that you received on that, maybe just in general terms, if nothing else low to mid-90s maybe?

這是對柯林關於現金流問題的後續回答。現在轉換已經完成，您能否向我們更新最新情況，以及您如何考慮再融資和償還貸款？目標是證明您的現金流有所改善，可能等待盡可能長的時間以獲得更好的條款。您希望盡快採取什麼戰術行動嗎？然後只是一個非常快速的後續行動。關於 45 倍稅收抵免轉移，您能否談談您收到的淨價格，也許只是一般性條款，如果沒有其他的話，可能在 90 年代中期？

Sorry. Can you please just repeat that, sorry, I lost my train of thought. Can you repeat only the first part of the question?

對不起。你能再說一次嗎，抱歉，我思路中斷了。你能只重複問題的第一部分嗎？

Yes, of course, Ronen. The first part was now that the convertible debt is (multiple speakers).

是的，當然，羅南。第一部分是現在可轉換債務（多位發言者）。

Sorry. I lost my train of thought. So first of all, from a convert return, I'll take this and Ariel will take the sale of credit. On the convert, our intention is very simple. We have the money, we have financed the old convert or at least part of it by new convert, which means -- and we repurchased a large portion or at least half of the old convert already.

對不起。我失去了思路。因此，首先，從轉換回報來看，我將獲得這部分收益，而 Ariel 將獲得信用銷售。在轉換上，我們的目的非常簡單。我們有錢，我們已經為舊的皈依者提供了資金，或者至少是部分新的皈依者提供了資金，這意味著——我們已經回購了舊皈依者的大部分或至少一半。

So the way that we look at it right now is that we will wait until September when the converts are maturing. We have the money, we set it aside, we're not going to use it or not intend to use it. It is still yielding a very nice result for us from an interest income. So our strategy here is simply use the money invested until it needs to be repaid. Once it's going to be repaid, we will do so, and we don't see any issue with this.

因此，我們現在的想法是，我們將等到九月份，然後皈依者已經成熟。我們有錢，我們把它存起來，我們不會使用它，也不打算使用它。它仍然為我們帶來了非常好的利息收入。因此，我們的策略是簡單地使用投資的資金直到需要償還為止。一旦需要償還，我們就會償還，我們認為這沒有任何問題。

Ariel, would you like to address the 45x?

阿里爾，你想談談 45x 嗎？

Sure. Thanks Mark. Yeah. Basically, we sold -- we got roughly $40 million net charges, and we sold it for mid-90s, give or take.

當然。謝謝馬克。是的。基本上，我們賣掉了它——我們獲得了大約 4,000 萬美元的淨費用，而且我們以 90 年代中期的價格賣掉了它，大約如此。

Andrew Percoco, Morgan Stanley.

摩根士丹利的安德魯‧佩科科 (Andrew Percoco)。

I do want to just come back to pricing point for a second. I guess in your prepared remarks, you discussed a few different drivers here. I heard some promotions, I heard that you're planning on selling below cost to clear out some of this inventory in Europe. But then I also heard you're trying to regain some market share and compete with some of your low-cost competitors in the European region.

我確實想稍微回到定價問題上。我想，在您準備好的發言中，您已經討論了幾個不同的驅動因素。我聽說了一些促銷活動，我聽說你們計劃以低於成本的價格出售以清理歐洲的一些庫存。但後來我也聽說你們正試圖重新獲得一些市場份額並與歐洲地區的一些低成本競爭對手競爭。

And I guess I'm just trying to get a sense for how much of this pricing reduction is one time just to clear the inventory and to get to a point where your run rate and where your sell-through is? And how much of it is structural in nature where you need to be more competitive on price to be able to sustain your market share in that region and if it's the latter, what does that mean for go-forward margins in the European market, if you have to structurally take down your price to stay competitive?

我想我只是想了解一下，這次降價有多少只是為了清理庫存，並達到你的運行率和銷售率？其中有多少是結構性的，你需要在價格上更具競爭力，才能維持你在該地區的市場份額，如果是後者，這對歐洲市場的未來利潤率意味著什麼，如果你必須結構性地降低價格以保持競爭力嗎？

So first of all, let me explain what are the prices and what are the promotions because I think that, that's part of the answer itself. During the -- actually, since the end of 2019, actually, our prices went up. They went up because of the fact that we started to see tariffs in the United States then came COVID with all of the shipping expenses and then came component shortages. And actually, we saw close to 20%, 25% increase in our prices over four years.

所以首先，讓我解釋一下價格是多少以及促銷是什麼，因為我認為這就是答案本身的一部分。實際上，自 2019 年底以來，我們的價格實際上已經上漲了。價格上漲的原因是，我們開始看到美國的關稅，然後是新冠疫情以及所有的運輸費用，然後是零件短缺。實際上，四年來我們的價格上漲了近 20% 到 25%。

While, by the way, the cost structure has not changed significantly, I would call it, on a permanent basis because during the -- we did see that during the component shortages, prices of components went up, but they went down again. And this will be very important for our margins in the future.

順便說一句，成本結構並沒有發生重大變化，我會稱之為永久性變化，因為在——我們確實看到，在零件短缺期間，零件價格上漲，但隨後又下降了。這對我們未來的利潤來說非常重要。

So what we're basically doing is that price decreases that we're doing are actually decreasing the long-term prices on a more permanent basis because we will need to go back to the levels of the, I would say, pre-COVID prices that we used to see in the market. By the way, a lot of our competitors, especially in Europe already did so, hence, a relatively large gap that was opened between our pricing and theirs.

因此，我們基本上正在做的是，我們正在進行的價格下降實際上是在更持久地降低長期價格，因為我們需要回到疫情之前的價格水平我們以前在市場上經常見到的。順便說一句，我們的許多競爭對手，特別是在歐洲的競爭對手已經這樣做了，因此，我們的定價與他們的定價之間存在相對較大的差距。

And promotions will be usually a a spot discounts that we give on the purchase of new products that are aimed at helping our distributors to sell their inventory. So for example, we had the [BWISE] optimized discount or I would call it promotion on optimizers because we knew that our distributors have a lot of inverters and they needed to buy optimizers. So by buying cheaper optimizers, it helps them to be more competitive and clear.

促銷通常是我們在購買新產品時提供的現貨折扣，旨在幫助我們的經銷商銷售庫存。例如，我們有 [BWISE] 優化折扣，或者我稱之為優化器促銷，因為我們知道我們的分銷商有很多逆變器，他們需要購買優化器。因此，透過購買更便宜的優化器，可以幫助它們提高競爭力和清晰度。

So when I look now at the pricing trajectory and where we are. If I take everything that we did, and I'm talking Andrew, on an overall basis, I will then break it a little bit between Europe and the United States. But if I look at the combination of my pricing and promotion in '24 over '23, we're talking about high single digits to a low double digits or low-teens in the overall impact. While I would say that in Europe, you see double digits in most cases. And in the US, you see either none or very small or low single digits. So again, on average, we're talking about high single digits to low teens when it comes to prices in '24 over '23.

因此，當我現在查看定價軌跡以及我們所處的位置時。如果我把我們所做的一切，以及我對安德魯的評價，從整體上看，我會將其分為歐洲和美國兩個部分。但是，如果我將 24 年的定價和促銷與 23 年進行比較，我們會發現整體影響是從高個位數到低兩位數或低十位數。但我想說的是，在歐洲，大多數情況下都是兩位數。而在美國，這個數字不是為零，就是非常少，或是低個位數。因此，就平均值而言，當談到 2024 年與 2023 年相比的價格時，我們談論的是高個位數到低十位數的變化。

Of this amount, I would say that if you need to roughly understand. I would say that the price decreases are within this, as we say, mid high range single digits, and everything beyond this, meaning to go to the high single digit or the low teens are promotions. So if you take the permanent nature, it's still within the high single-digit number that we gave.

關於這個量，我想說一下如果你需要大致了解的話。我想說的是，價格下降幅度在我們所說的中高個位數範圍內，而超出這個範圍的所有價格，也就是高個位數或低個位數，都是促銷。因此，如果考慮永久性，它仍然在我們給出的高個位數之內。

When we look in the future, by the way, we expect this to continue. So again, if we look into '25 pricing over '24, our assumption that we'll see mid-high single digits in overall price reductions without taking into account any promotions, and this will be something that we will continue to see. Here, again, Europe will be double digits while US actually may even go up a little bit because we are moving more towards domestic content, and we see that prices of domestic content are usually slightly higher than products made in the US that are not domestic content.

順便說一句，展望未來，我們預計這種情況將會持續下去。因此，如果我們再研究一下 2025 年與 2024 年的定價，我們假設在不考慮任何促銷活動的情況下，整體價格將出現中高個位數的降幅，而且這種情況還會繼續發生。再次強調，歐洲的漲幅將達到兩位數，而美國實際上甚至可能略有上漲，因為我們正更多地轉向國內產品，而且我們發現國內產品的價格通常略高於美國製造的非國內產品內容。

And maybe to launch that into my next question. You mentioned refocusing to core markets. And I know there's a lot of added uncertainty here with the election now behind us. But I guess, how do you see or how do you view your core markets? You've grown into Europe pretty meaningfully over the last few years and has become a majority of your market share, your revenue concentration. Do you see that shifting back to the US, just given I think the value that local installers have for domestic manufacturing and how that probably continues under the new administration? Or are you still committed to the European market still being a majority of your business?

也許我可以將此作為我下一個問題的引子。您提到重新關注核心市場。我知道，隨著選舉結束，這裡的不確定性也隨之增加。但我想，您如何看待您的核心市場？過去幾年來，你們在歐洲的業務發展相當顯著，佔據了你們大部分的市場份額，也是你們的收入集中點。您是否認為這種趨勢會轉向美國？或者您仍然致力於讓歐洲市場成為您業務的主要部分？

So I'll start by saying that both the European and the US markets are going to be very significant for us in the coming years. And I would say that they are equally important, even though I think that you will see a little bit of shift between the two. First of all, you mentioned the new administration and when we were preparing even for this call and we talked about what can happen after elections, we just remember that actually, that was the previous Trump administration was the best time for Solar in the United States. We did see that the Solar market grew, and we saw a very nice extension. And even if I'm not mistaken, the ITC was extended under the Trump administration as well.

因此，我首先要說的是，未來幾年歐洲和美國市場對我們來說都將非常重要。我想說它們同樣重要，儘管我認為你會看到兩者之間有一點轉變。首先，你提到了新政府，當我們準備這次電話會議時，我們談到了選舉後會發生什麼，我們只記得，實際上，那是前川普政府，是美國太陽能產業的最佳時機。我們確實看到太陽能市場在成長，而且看到了非常好的延伸。即使我沒有記錯的話，ITC 在川普政府時期也得到了延長。

So I think that the dynamics that we see right now in the United States and if you combine it with the weakness that we see in Europe, will increase at least in the short term, the weight that we put on the U.S. market given the fact that this is, at least now, a growing market, becoming more and more healthy market, and I think that, of course, for the long term, as we've mentioned in some of our meetings and meetings with investors, we truly believe that investments in US infrastructure will be needed and electricity prices will increase which means that it will be a good market in the long term.

因此，我認為，如果將美國目前的情況與我們在歐洲看到的疲軟結合起來，至少在短期內，我們將加強對美國市場的重視，因為至少現在，這是一個不斷增長的市場，變得越來越健康，我認為，當然，從長遠來看，正如我們在與投資者的一些會議和會議上提到的那樣，我們確實相信美國基礎設施需要投資，電價也會上漲，這意味著從長遠來看這將是一個好的市場。

When we look at Europe, we believe that what we see in Europe is I would say temporary, I don't know for how long temporary but temporarily lower prices because we do see that because of gas prices, because of some of the European governments trying to rearrange the grid after having so much solar, there is a little bit of a thinking process that is happening there.

當我們觀察歐洲時，我們認為我們在歐洲看到的是暫時的，我不知道會持續多久，但暫時的低價，因為我們確實看到這種情況，因為汽油價格，因為一些歐洲政府在擁有如此多的太陽能之後，嘗試重新安排電網，需要進行一些思考過程。

But even after all of these changes, we cannot ignore the fact that when you look at Germany, when you look at other European markets, even by the way, the Dutch market that is suffering so much, you look at anything between six to eight years of payback on investment, which is still a very good investment, or I would call it a reasonable investment to make. So I would say that we are committed to both markets we will put efforts in both of them. In the short term, I see better US market or more leaning towards the US market than European, but I'm not sure that this is going to be something that will prevail for many years to come.

但即使在所有這些變化之後，我們也不能忽視這樣一個事實：當你看看德國，看看其他歐洲市場，順便說一下，即使是遭受重創的荷蘭市場，你也會看到 6 到 8多年的投資回報，這仍然是一項非常好的投資，或者我會稱之為合理的投資。所以我想說，我們致力於這兩個市場，我們將在這兩個市場上付出努力。短期內，我認為美國市場比歐洲市場更好或更傾向於美國市場，但我不確定這種情況是否會在未來許多年內持續存在。

Philip Shen, ROTH Capital Partners.

羅仕證券 (ROTH Capital Partners) 的 Philip Shen。

Just wanted to follow up on some of the under shipment comments. Can you give us a sense for what the under shipment was in Q3, what you expect it to be in Q4? And then if you can share what it could be in '25, that would be great.

只是想跟進一些有關發貨不足的評論。您能否告訴我們第三季的出貨量不足的情況以及您預計第四季的出貨量不足的情況？如果你能分享一下 25 年的情況，那就太好了。

So I'll start from Q3. As we mentioned on the prepared remarks, since we sold about $450 million of point-of-sale data compared to about $240 million that we shipped. The math is relatively clear.

因此我將從 Q3 開始。正如我們在準備好的評論中提到的那樣，我們銷售了約 4.5 億美元的銷售點數據，而我們發貨的數據約為 2.4 億美元。數學相對清晰。

Moving forward, this is a little bit more complicated because, again, first of all, the price decreases that we're doing are not allowing us to really measure what will be the undershipment because how do you measure it against the oil prices, the new prices and what is it?

展望未來，情況會稍微複雜一些，因為首先，價格的下降讓我們無法真正衡量出貨不足的情況，因為如何以油價來衡量呢？

And second, and we do not yet know what will be the impact of the promotions and the price decreases that we did on the pace of clearing the channels, especially by the way, again, at the beginning of '25 because again, in '24, we do believe that we will not see substantial increase in purchasing from us or selling out because of the seasonality.

其次，我們還不知道促銷和降價對清理管道的速度會產生什麼影響，尤其是在 25 年初，因為在『 24，我們確實相信，由於季節性原因，從我們這裡購買的商品或銷售量不會大幅增加。

So I would say that we still believe that we'll see by the second half of next year European channels being in a much healthier situation than they were, but I'm not sure that we are able, right now, at least, to quantify it in a reliable manner.

因此，我想說，我們仍然相信，到明年下半年，歐洲通路的狀況將比以前更加健康，但我不確定我們至少現在是否能夠以可靠的方式對其進行量化。

And then coming back to prices, our checks over the past week suggests that the EU list price that you guys sell in to your customers or to your customers was reduced by 20% to 30%, depending on the product. And in talking to some of your customers, it sounds like they don't necessarily think that it might -- that it will increase demand much and so the reason why is because there's still so much channel inventory in Europe where prices -- you can get that pricing today.

然後回到價格問題，我們過去一周的檢查表明，你們向客戶銷售的歐盟標價降低了 20％ 到 30％，具體取決於產品。在與一些客戶交談時，他們似乎不認為這可能會大幅增加需求，原因是歐洲仍有大量渠道庫存，價格——你可以今天就獲取該價格。

So if you're an installer, you can actually get that price or if you're a distributor, you can also get that price because you can buy from another peer. And so I know you addressed this, Ronen, a bit in your remarks you're not sure what demand, stimulus this might be but just wanted to understand if you are -- like how much channel inventory is there remaining you think, in Europe? And then if the demand stimulus is not that effective, might you need a write-down -- not write-down, but rather lower your price into the European market again? And if so, what timing might that be?

因此，如果您是安裝人員，您實際上可以獲得該價格，或者如果您是分銷商，您也可以獲得該價格，因為您可以從其他同行購買。所以我知道你提到了這一點，Ronen，你不確定這可能是什麼需求，刺激，但只是想了解你是否——比如你認為歐洲還剩下多少渠道庫存？那麼，如果需求刺激不是那麼有效，你是否需要減記──不是減記，而是再次降低你進入歐洲市場的價格？如果會的話，那會是什麼時候？

So the answer is complex because it involves a lot of I would say assumptions about behaviors and also, I would call it trends that you may see within the distributors themselves. And I'll try to elaborate a little bit on this. So first of all, on the price decreases that we did, I think that the numbers that you're having is actually including both price decreases and promotions that we did. So some of them of a shorter term and some of them are going to be permanent. But as we said, yes, it's the double digits, at least in Europe. So on that front, that's definitely the case.

所以答案很複雜，因為它涉及很多關於行為的假設，而且我稱之為你可能在分銷商身上看到的趨勢。我將嘗試對此進行稍微詳細的闡述。首先，關於我們所實施的降價措施，我認為您所獲得的數字實際上包括了我們實施的降價和促銷措施。因此，有些協議的期限較短，有些則是永久性的。但正如我們所說，是的，這個數字是兩位數，至少在歐洲是如此。從這個方面來看，情況確實如此。

Again, I do not know what the channel check said, but since everything was done last week, I believe that whatever the channels are reporting one week in November to already estimate the impact of the price decrease may be a little low but from what we at least heard from those that we consulted with, and these were the large players prior to doing this, they believe that this is something that will allow us to take the share. And we'll simply need to see how it is going to work moving forward.

再次，我不知道頻道檢查說了什麼，但由於一切都是上週完成的，我相信無論管道在 11 月的一周報告什麼，已經估計價格下跌的影響可能有點低，但從我們至少從我們諮詢過的人那裡聽說，這些都是在這樣做之前的大公司，他們相信這將使我們能夠佔據市場份額。我們只需要看看它將如何向前發展。

We believe that we will see actually the channel clearing accelerating due to these price promotions and -- price decreases and promotions because in some cases, the promotions that we're doing are actually allowing the channels to take the excess inventory they have and actually cleared a little bit faster by averaging prices that they have already today with products that they need to buy anyway because of the fact that they miss either optimizers or batteries or something else, and therefore, reducing the overall cost of the systems that they have.

我們相信，由於這些價格促銷和降價以及促銷，我們實際上會看到渠道清理速度加快，因為在某些情況下，我們所做的促銷實際上允許渠道吸收他們擁有的過剩庫存並實際清理掉通過將他們今天已有的價格與他們無論如何都需要購買的產品（因為他們缺少優化器或電池或其他東西）進行平均，可以稍微快一點，從而降低他們所擁有的系統的總成本。

And at least again, from the first impressions that we're getting, there should be an impact. I do not know yet. Again, it's only a week since we did it. As I promised, of course, we will report I would tend to believe that there is some elasticity of demand to prices that we will see coming. But we'll simply have to wait and see.

至少從我們得到的第一印象來看，應該會有影響。我還不知道。再說一次，我們這樣做才一週時間。當然，正如我承諾的那樣，我們將報告我傾向於相信我們將看到價格出現一定的需求彈性。但我們只需拭目以待。

And to the later part of your question, if we see that for some reason, this is something that is not working. We'll find a way to make it work. At the end, we are a significant player in this market. We are at least a technology provider that this market required our solutions. And I believe that you can always find the right price to be there. Again, my feeling is that we are already at the right place.

對於你問題的後半部分，如果我們發現由於某種原因，這是行不通的。我們會找到辦法讓它發揮作用。最後，我們是這個市場的重要參與者。我們至少是這個市場需要我們的解決方案的技術提供者。我相信你總是能找到合適的價格。再次，我的感覺是我們已經處於正確的位置。

Julien Dumoulin-Smith, Jefferies.

朱利安‧杜穆蘭‧史密斯 (Julien Dumoulin-Smith)，傑富瑞 (Jefferies

Maybe just a follow-up on some of the commentary here and just ask it more explicitly. How do you think about the decision tree given the cost that's contemplated to stay in some of these markets? I know you've been talking about some of the merits and paybacks. But can you elaborate specifically as you think about the potential for further cost cuts below that $100 million level? Is there a potential to pull back and re-entrench entirely from certain geographies as you think about not just the incremental value of selling an incremental unit here, but rather the fixed cost of being in a given country or whatnot, re-entrenching if you will. Or what are other avenues of cost reduction beyond that $100 million as you think about run rating into '25?

也許只是對這裡的一些評論進行跟進，並更明確地提出問題。考慮到留在這些市場所需的成本，您如何看待決策樹？我知道你一直在談論一些優點和回報。但您能否具體闡述將成本進一步削減至 1 億美元以下的可能性？是否有可能從某些地區完全撤出並重新站穩腳跟，因為你考慮的不僅僅是在這裡銷售增量單位的增量價值，而是在特定國家或其他方面的固定成本，如果你重新站穩腳跟將要。或者，當您考慮將運行評級提高到 25 年時，除了 1 億美元之外，還有哪些途徑可以降低成本？

Sure. So Julien, first of all, all the assumptions are right. This is the way that we look at the markets. But I'm starting from even a different point. Other than looking at the market, the inventory and the profit that we can make in this market, we also look at what is the requirement of this market from our other resources because sometimes the fact is that you can see a market that is relatively healthy, and that you can get relatively good return, but it's not a large market in the overall picture, but still it takes, for example, R&D resources in order to make sure that this product actually complies with the regulations in this market. And the ability to certify it and the ability to continue with the pace of changing certification. So I would say that it's not always just looking at the profitability of this market is also how much effort and the alternative costs it takes from us.

當然。所以朱利安，首先，所有的假設都是正確的。這就是我們看待市場的方式。但我是從不同的角度出發的。除了專注於市場、庫存和我們可以在這個市場賺取的利潤之外，我們還會關注這個市場對我們的其他資源的需求，因為有時你會發現一個相對健康的市場，並且可以獲得相對較好的回報，但從整體上看，這不是一個很大的市場，但仍然需要例如研發資源來確保該產品確實符合這個市場的法規。以及對其進行認證的能力和跟上認證變化步伐的能力。所以我想說，我們不僅要看這個市場的獲利能力，還要看我們為此付出了多少努力和多少替代成本。

Looking at the decision tree. Decision tree will be very simple. First of all, we are looking at whether a market is or was profitable over the last few quarters. And we analyzed what was the reason for this result? Is it something that is related to more of a permanent reasoning? Or is it something that is more related to something specific that happened in this market. If a market is a market where we don't see any future profitability coming, we will pull out of this market. Of course, we will do it in a way that is allowing our customers to continue to get service and to get service and to get all of the support that is needed, but we will not sell new products.

查看決策樹。決策樹將會非常簡單。首先，我們要觀察一個市場在過去幾季是否有獲利。而我們分析了造成這種結果的原因是什麼？它是否與更持久的推理有關？或者它與這個市場發生的具體事情更相關。如果我們看不到某個市場未來會帶來任何獲利，我們就會退出該市場。當然，我們會採取允許客戶繼續獲得服務和獲得所需的所有支援的方式來做到這一點，但我們不會銷售新產品。

If it is a market that is already profitable. We see what is the magnitude of the profitability compared to the overall effort that we do there. So we may see a market that has, for example, double the margin than another market, but it's a very, very small market where the potential is not large while the resources that we need to put there from R&D or something will be too large, and therefore, we decided to pull back from this market. So losing market first, then we'll come markets where the potential profit over time is not similar to the amount of resources that we need to look at.

如果這是一個已經獲利的市場。我們看到與我們在那裡所做的整體努力相比，獲利能力的大小是多少。例如，我們可能會看到一個市場的利潤率是另一個市場的兩倍，但這是一個非常非常小的市場，潛力不大，而我們需要從研發或其他方面投入的資源會太大因此，我們決定退出這個市場。因此，先失去市場，然後我們就會進入那些隨著時間的推移潛在利潤與我們需要考慮的資源數量並不相似的市場。

Another thing that we do, by the way, is not just looking at the geographies themselves, but also at product lines. And we did the same, by the way, in some of the write-offs that we did this quarter because we looked at some products that we understand that this is a product that is not a relatively profitable or that it's a product where we are comparing it to the other offerings that we see in the market, especially in the long term and the pricing that we expect to see there long term, we believe that because of either installability, exact size of the product, the installation method is not very attractive. So this is also something that we're doing.

順便說一下，我們所做的另一件事是不僅關注地理位置本身，還關注產品線。順便說一句，我們在本季度進行的一些註銷中也做了同樣的事情，因為我們查看了一些產品，我們知道這些產品不是相對盈利的產品，或者我們與市場上其他產品相比，尤其是從從長期來看，以及我們預期的長期定價，我們認為，由於可安裝性、產品的確切尺寸、安裝方法都不是很好吸引人的。這也是我們正在做的事情。

And the last thing I would say is that we're also looking at products and we are discontinuing products where we see that they have too many permutations and too many SKUs because this is something that is impacting our supply chain, our manufacturing. And it also, by the way, impacts the way that our distributors are holding their inventory because it's becoming very complicated for them to have many SKUs. So this is also something that we're looking.

我想說的最後一件事是，我們也在審視產品，我們正在停產那些排列組合過多、SKU 過多的產品，因為這會影響我們的供應鏈和製造業。順便說一句，這也影響了我們的經銷商持有庫存的方式，因為擁有許多 SKU 對他們來說變得非常複雜。這也是我們正在尋找的東西。

I must say that we are going very thoroughly and Ariel and the team, together with our sales team did a lot of work in the third quarter to go product by product, country by country, offering by offering and optimize this. And I think that eventually, you will see us in a fewer markets but markets that are bigger and more profitable in the long term, and it can enjoy mutual resource investment when we're developing new generation of products in those markets.

我必須說，我們正在非常徹底地進行，Ariel 和團隊以及我們的銷售團隊在第三季度做了很多工作，逐個產品、逐個國家、逐個產品地進行研究並進行優化。我認為，最終你會看到我們進入更少的市場，但從長期來看，這些市場更大、更有利可圖，當我們在這些市場開發新一代產品時，我們可以享受共同的資源投資。

Joseph Osha, Guggenheim.

古根漢的約瑟夫‧奧沙。

Looking first at the fourth quarter, I am trying to understand how much of the sequential revenue decrease that you're talking about in solar is coming from volume versus price. Can you give us some rough sense as to what you feel like the megawatt volume comp might look like Q3 to Q4? And then I have another question.

首先看第四季度，我想了解您所說的太陽能產業連續收入下降有多少是來自於數量而非價格。您能否大致告訴我們，您認為第三季至第四季的兆瓦量比較如何？我還有一個問題。

So first of all, Joe, part of it is -- I would say that part of what you see, first of all, is not even coming from volume of, I would call it, product in the long term, but rather the fact that we had a relatively high portion of batteries that were sold in Q3 where given the fact that the battery is the more complicated product to hold, especially when you go into the less busy season of winter, Usually, the distributors do not want to hold a lot of batteries. So the first thing that we actually see in Q4 compared to Q3 is that we will sell less battery compared to other products.

首先，喬，部分原因是——我想說，你首先看到的部分甚至不是來自長期產品的數量，而是事實我們在第三季度銷售的電池佔比較高，因為電池是比較複雜的產品，尤其是在冬季不太繁忙的季節，通常情況下，分銷商不願意持有很多電池。因此，與第三季度相比，我們在第四季度實際看到的第一件事是，與其他產品相比，我們的電池銷售量會有所下降。

And again, this is something that we believe will recover in the next quarter. I would say that if I need to rank them without breaking exactly the impact of each and every one of them, I would say that the first element will be actually the price decrease. As mentioned in one of the previous questions and especially in Europe, we did double-digit decreases in pricing. And that means that this is even selling the same volumes will take about -- if you'll take 50% of the business coming from Europe and international market.

我們相信，這一情況將在下個季度恢復。我想說，如果我需要對它們進行排名，而不詳細分析它們各自帶來的影響，那麼我會說第一個因素實際上是價格下降。正如前面的一個問題中所提到的，特別是在歐洲，我們的價格出現了兩位數的下降。這意味著，即使銷售相同的銷量，也需要大約——如果你將 50% 的業務來自歐洲和國際市場。

I assume 20%, let's say, decrease and decrease it from the last quarter, you already see a relatively large amount that is going down from Q3 to Q4. So that will be the first one and the biggest one. The next one will be the battery shipment, as we said before, and then the last thing will be the fact that this is a -- we're going into winter. And we feel that at least in this environment, we were not trying to push too hard or help too much to take products outside of the regular holding pattern during winter. So that will be, I would say, the majority of the impact.

我假設比上一季減少 20%，您已經看到從第三季到第四季有相對較大的下降幅度。因此這將是第一個也是最大的一個。正如我們之前所說，下一個將是電池發貨，最後一件事是——我們即將進入冬季。我們覺得，至少在這種環境下，我們不會試圖過度推銷或提供過多幫助，以使產品擺脫冬季的常規持有模式。所以我想說，這將是大部分的影響。

And then my second question, this has been asked about a couple of times already. So you've got this convert coming up. Yes, you have the money theoretically to pay it back if you continue liquidating inventory and so forth. But it's happening right at the same time where you're planning to spool your business back up and where presumably it will become user of working capital rather than a generator of working capital again. So my question to you is why on earth do you want to take that risk of ending up short on cash in the second half of next year versus placing the business on a firmer footing financially now?

我的第二個問題已經被問過好幾次了。因此，您已經獲得了這個轉換。是的，從理論上講，如果您繼續清算庫存等等，您就有足夠的錢來償還。但它恰好發生在您計劃重新啟動業務的同時，並且大概它將再次成為營運資金的使用者而不是營運資金的產生者。所以我想問您，為什麼您願意冒著明年下半年資金短缺的風險，而不是現在就讓企業在財務上站穩腳跟？

So it's a combination of several things. The first one is the fact that we do see already that the amounts of the amount of IRA credits that we're accumulating on a quarterly basis is increasing. And the confidence that we have after the last treasury regulations that came out and the fact that we were able to sell, we believe that with the sale of those credits, together with cleaning the inventory, even by the way, after paying the convert back is something that will leave us with enough, I would call it, working capital to continue and grow the business.

所以它是多種因素的結合。首先，我們確實已經看到，我們按季度累積的 IRA 信用額度正在增加。我們對上一次財政法規出台後的信心以及我們能夠出售的事實，我們相信，透過出售這些信貸，以及清理庫存，甚至在償還轉換後這將給我們留下足夠的營運資金來繼續發展業務。

At the same time, I would say that well, this is what we plan to do right now. I think that we have enough time until the convert time comes. And if we need, we will change our plans here. At this stock price, it's this expectation of our business at the amount of credits that we believe that we can sell right now, we believe that it will not be necessary.

同時，我想說，這就是我們現在計劃要做的事。我認為在轉換時刻到來之前我們還有足夠的時間。如果需要的話，我們會在這裡改變我們的計劃。在這樣的股價下，根據我們對目前可以出售的信用額度的預期，我們認為這是不必要的。

And I think that for the sake of shareholders, for the sake of stock price and dilution that may be taken by doing or taking another convertible debt or issuing stock at this point, I think that it doesn't necessarily serve for the benefit of the shareholders. But Again, I would say that we will -- as we did in the past, we will be very financially sound planning our cash balances moving forward especially towards growth that we expect to see happening, I believe, in the latter part of 2025.

我認為，為了股東的利益，為了股價的利益，為了此時此刻透過發行或承擔另一筆可轉換債務或發行股票而可能帶來的稀釋，我認為這不一定符合公司的利益。但我再說一遍，我們會像過去一樣，在財務上非常穩健地規劃我們的現金餘額，特別是朝著我們預計在 2025 年下半年實現的成長方向發展。

Christine Cho, Barclays.

巴克萊銀行的 Christine Cho。

I just have one, but I wanted to talk about the timing finally enacting the price cuts, especially in Europe. The backdrop there has been pretty challenged for a while and you've held off on actual price cuts there, even though your competitors continue to cut pricing, as you mentioned, and I -- although you've done different kinds of promotions.

我只有一個問題，但我想談談最終實施降價的時機，特別是在歐洲。一段時間以來，那裡的背景一直很嚴峻，儘管您的競爭對手繼續降價，但您一直沒有實際降價，正如您所說，儘管您已經進行了不同類型的促銷。

So curious if your price cuts was driven by this accounting review that was sparked by your book value being higher than market value or if it was something else? And I hate to be backward looking, but if you knew back then what you know now, would you have taken the price cuts earlier? Or do you think the outcome would have been the same regardless?

很好奇，你們的降價是否是由於這次會計審查導致的，而​​這次審查是由於你們的帳面價值高於市場價值，還是有其他原因？我不願意回顧過去，但如果您當時知道現在的情況，您會更早降價嗎？還是您認為無論怎樣結果都會是一樣的？

I'll start by saying that I would like -- even wearing my previous hat to think that accounting will not be the thing or the reason to drive business decisions, but basically to reflect them. But I would say that here, even looking at the hindsight, I'm not sure that the timing to do these price cuts were much before we did them. We already started to do price cuts actually in the second quarter but these were mostly promotions rather than price cuts.

首先我想說的是，即使以我以前的視角來看，我也認為會計不是推動商業決策的因素或原因，而基本上是反映商業決策。但我想說的是，即使事後看來，我也不確定這些降價的時機是否在我們實施這些降價之前。實際上，我們在第二季就已開始降價，但主要是促銷，而不是降價。

We simply looked at how the market is developing and we believe at least at that time that by allowing to do the promotions, we will be able to help the distributors to get rid of inventory because once you're cutting prices, it is something that helps newcomers to the market, but it doesn't help your distributors that have a lot of inventory because once you cut prices, they immediately have inventory that's worth a little bit less.

我們只是觀察了市場的發展情況，我們相信至少在那時，透過允許進行促銷，我們將能夠幫助分銷商清除庫存，因為一旦你降價，這就是這可以幫助新進入者進入市場，但對擁有大量庫存的經銷商沒有幫助，因為一旦你降價，他們的庫存價值就會立即降低。

And that means that, by the way, sometimes they need to write it off, and that means that sometimes their financing that's coming from bank and based on the valuation of their inventories being damaged. And therefore, we felt at least until recently that by providing promotions that do not let those distributors to take this a heat was the right thing to do.

順便說一句，這意味著有時他們需要將其註銷，這意味著有時他們的融資來自銀行，並基於其庫存受損的估價。因此，至少直到最近我們才認為，提供促銷活動讓那些經銷商不承受壓力是正確的做法。

I would say that at least when I took the interim CEO position Ariel came in, I spent a little bit more time together with our sales team, together with our customers. And we decided together with our management and board that we would like to start pushing inventory a little bit quicker right now, given the fact that we believe that those promotions that we did were, I would say, helpful but not meaningful enough to push this inventory out.

我想說，至少在我接任 Ariel 的臨時執行長職位時，我花了更多時間與我們的銷售團隊和客戶在一起。我們與管理層和董事會共同決定，現在開始加快庫存增長速度，因為我們認為我們所做的那些促銷活動雖然有幫助，但意義不足以推動這一增長。

And we also, by the way, we're not very keen maybe to start a little bit of a -- events where we're reducing prices, our competitor reducing prices, and it's basically endless. So we waited to see how the market is stabilizing before we start to do so. I don't think today that the result would have been significantly different had we started to reduce the prices in Q1 and Q2.

順便說一句，我們也不太熱衷於發起一些活動，在這些活動中，我們自己降低價格，我們的競爭對手也降低價格，這樣的活動基本上是無休止的。因此，我們等待觀察市場如何穩定下來，然後再開始這樣做。我今天認為，如果我們在第一季和第二季開始降低價格，結果不會有顯著不同。

I think that we would basically be at a similar, I would call it, price or price levels eventually, whether we did it yes or no. I think that we did see the undershipping and we did see the fact that the channels were able to clear significantly amount of inventory already using the previous promotion. And we felt that this is what we need to do now in this price cuts simply to help the distributors and push a little bit more because we felt that what we did before was basically not helping anymore.

我認為，我們最終基本上會處於相似的價格或價格水平，無論我們是否這樣做。我認為我們確實看到了出貨量不足的情況，也確實看到了通路能夠利用先前的促銷清理大量庫存的事實。我們認為，我們現在需要做的就是透過降價來幫助分銷商，並加大力度，因為我們覺得我們之前所做的基本上不再有幫助了。

And I would add to this now the last factor, and this is something that at least became clear for us in the last few weeks. And this is the fact that even compared to where we saw Europe two quarters ago, Europe is continuing to decline. And that means that the fact that Europe is declining and the fact that you see that your distributors are trying to hold less inventories, we felt that this is the right time.

我現在要補充最後一個因素，這至少是我們在過去幾週變得清晰起來的一點。事實是，即使與兩個季度前的歐洲相比，歐洲仍在繼續下滑。這意味著，歐洲經濟正在衰退，你看到你的經銷商試圖減少庫存，我們認為現在是正確的時機。

So in short, I would say that I'm not sure that doing it before would be much better for us I think that the way that we did it help at least for the distributors not to realize large losses, from the inventory that they held and to at least get rid of it at prices that were closer to what they paid for where they're bought, which is very important for them. We know that. And we feel that we did it now simply because of the fact that we have a little bit more of a fresh look and taking into account new considerations.

簡而言之，我想說的是，我不確定之前的做法是否對我們更有利，但我認為我們的做法至少有助於分銷商避免因持有的庫存而遭受巨額損失並且至少以更接近其購買價格的價格出售，這對他們來說非常重要。我們知道這一點。我們覺得我們現在這樣做只是因為我們有了更新穎的眼光並考慮了新的因素。

Kashy Harrison, Piper Sandler.

卡西·哈里森，派珀·桑德勒。

So I have two questions. My first question, just given your sell-through in Q3 of about $450 million, your commentary that Europe has the potential to decline next year, uncertainty surrounding the US market, market share risk from Tesla in the US given CPO leverage. Why aren't you taking more aggressive actions to reduce OpEx? If you're essentially going back to pre-COVID pricing, at least in Europe, why aren't we going back to pre-COVID OpEx?

我有兩個問題。我的第一個問題是，鑑於你們第三季的銷售額約為4.5 億美元，你所說的歐洲明年有可能下滑，美國市場存在不確定性，考慮到CPO 槓桿率，特斯拉在美國的市佔率面臨風險。為什麼你們不採取更積極的措施來降低營運支出？如果基本上要回到新冠疫情之前的定價，至少在歐洲是這樣，那麼為什麼我們不回到新冠疫情之前的營運支出呢？

So I'll start by saying that, as mentioned in the prepared remarks and both Ariel and mine, we are continuing to do these OpEx reductions. We do it in the form of, again, looking at the markets in which we operate, whether they are profitable or not, whether we should be there product lines where we continue to develop them or not and looking at every other expense that we do. So by definition Kashy, to your question, we continue and we will continue to reduce OpEx because this is something that is needed.

因此，我首先要說的是，正如 Ariel 和我在準備好的演講中所提到的，我們將繼續削減這些營運支出。我們這樣做的方式是，再次審視我們營運的市場，看看它們是否獲利，我們是否應該繼續開發這些產品線，並審視我們所做的每一項其他費用。所以根據 Kashy 的定義，對於你的問題，我們會繼續並且將繼續降低營運支出，因為這是必要的。

At the same time, I would say that we need to make sure that the future of this company will come from new products that we need to develop and new technologies that we need to roll. At least on the residential side, for a long time did not release new products to the market. We have now in, I would call it, advanced stages, three new products that are coming to this market that we believe have a lot of strength, both to allow us taking share in segments of the market that today were not very strong in especially the very large installations in the (technical difficulty) region, which is still, by the way, even though Europe is reducing. This is a growing segment so we want to be there.

同時，我想說，我們需要確保公司的未來來自於我們需要開發的新產品和我們需要推出的新技術。至少在住宅方面，很久沒有向市場推出新產品。現在，我們進入了後期階段，有三款新產品即將進入這個市場，我們認為它們有很大的優勢，既能讓我們佔據目前還不是很強大的細分市場的份額，尤其是該地區的超大型設施（技術難度較高），順便說一句，儘管歐洲正在減少，但這一數字仍在下降。這是一個正在成長的領域，因此我們希望參與其中。

And second is to make sure that we are able to refresh and to come with products with a better growth, with a better cost structure. So we will continue to reduce OpEx. This is going to be an ongoing mission to go back to pre-COVID OpEx, I'm not sure if it's completely possible, but we will try to aim to be or to get as close as we can to this. But this will be something that we will do in a very, I would call it, careful manner just to make sure that all of the products and all of the initiatives that we believe that will have a lot of benefits in '25 and especially when the market will go back to growth will not be eliminated by doing so.

第二是確保我們能夠更新並推出具有更好成長和更優成本結構的產品。因此我們將繼續降低營運支出。這將是一項持續的任務，要回到 COVID 之前的 OpEx，我不確定這是否完全可能，但我們會盡力實現或盡可能接近這一目標。但我們會非常謹慎地做這件事，以確保所有我們認為將在2025年帶來許多好處的產品和舉措，尤其是當市場將恢復成長，並且不會被消除。

And then just my follow-up. I want to go back to your response to Joe's question earlier on the Q3 to Q4. What I'm trying to understand is how to explain the $80 million quarter-over-quarter decline. I would have thought that if you're no longer destocking within the US, there should be some uplift as you close that gap between whatever that sell-through, sell-in spread was. So can you help us understand why that isn't at the very least offsetting the decline that we're seeing in some of these in batteries or from the pricing side?

接下來就是我的後續行動。我想回到你之前對喬關於第三問題至第四問題的回答。我想了解如何解釋 8000 萬美元的季度環比下降。我原本以為，如果不再在美國境內去庫存，那麼隨著銷售和進貨價差的縮小，銷量應該會有所提升。那麼，您能否幫助我們理解，為什麼這至少不能抵消我們在電池或價格上看到的下滑？

So I'll start by, first of all, product that we shipped and then I'll talk about pricing. We had large battery shipments in Q3. And we do not these battery shipments going into Q4, mostly because of the fact that batteries have a a shelf life, plus the fact that it's a product that it's very expensive to store, very expensive to hold and you see that at the end of the year, your distributors trying to minimize inventory as much as they can both for reporting purposes, but also they do not want to take the financial liability because they know that for them, unless it's a relatively mild winter, they will start to see a lot of installation mostly happening in March.

首先，我將介紹我們運送的產品，然後討論定價。我們的第三季電池出貨量很大。我們沒有預測第四季度的電池出貨量，主要是因為電池有保質期，而且電池的存儲成本非常高，持有成本也非常高，到了第四季度末，你會發現今年，你的分銷商會盡量減少庫存，一方面是為了報告的目的，另一方面他們也不想承擔財務責任，因為他們知道，除非今年冬天相對溫和，否則他們會開始看到很多安裝工作主要發生在三月。

So if you're a European, and by the way, most of the battery shipments that were up in Q3 were in Europe, and most of the battery down shipments that we see in Q4 are in Europe for that reason. Why would someone -- if they know that they have batteries in inventory, they can get it within five or six days, hold inventory for two months, especially when it's such an expensive product. So that's the first thing that they do. They simply bought a lot of batteries in Q3, they consume it in Q4, they remain with low inventory by the end of the year, and they start buying again in Q1. So that's the first thing.

如果你是歐洲人，順便說一句，第三季大部分電池出貨量上升都在歐洲，因此，我們看到第四季大部分電池出貨量下降也在歐洲。為什麼有人會——如果他們知道他們有庫存電池，他們可以在五到六天內拿到貨，並保存庫存兩個月，尤其是當它是一種如此昂貴的產品時。這是他們做的第一件事。他們只是在第三季度購買了大量電池，在第四季度消耗掉了，到年底庫存仍然很低，然後在第一季又開始購買。這是第一件事。

The second thing is that, again, because of the reduction of the prices and because of the fact that usually our revenues are more tilted towards the end of the quarter. If you take a business, let's say that Europe was approximately this quarter around $100 million. So just take $100 million, reduce the price, but let's say, again, 20%, you'll see about $20 million that is going away from the same shipments even though the quantities are exactly the same. So these will be the two major areas.

第二件事是，同樣是因為價格降低，也因為我們的收入通常更傾向季度末。如果你以一家企業為例，假設本季歐洲的營業額約為 1 億美元。因此，只要拿出 1 億美元，降低價格，但我們再假設 20%，你就會看到，儘管數量完全相同，但同樣的發貨量中大約有 2000 萬美元的貨源流失。因此這將是兩個主要領域。

And again, the last thing which is less influential, but it's also important. We deliberately let you know nature takes its course here clearing the inventory. It's end of year, it's going into the more of the seasonal slowdown. I think that it's a good time to make sure that our distributors are fastly going to these high inventory turns policy that they would like to see.

最後一點影響較小，但也很重要。我們特意讓你知道，這裡清理庫存是自然而然的事。已經到了年底了，市場正進入季節性衰退階段。我認為現在是確保我們的經銷商快速採用他們希望看到的高庫存週轉政策的好時機。

Dimple Gosai, Bank of America.

美國銀行的 Dimple Gosai。

So a couple of questions. Just going back to the makeup of the inventory write-down, right? To what extent can we expect further write-downs? And in what scenario could we realize a higher value than what was written off, right? That's the first part of the question.

有幾個問題。只是回到庫存減記的構成，對嗎？我們還能預期到多大程度的進一步減記？在什麼情況下我們才能實現比註銷更高的價值呢？這是問題的第一部分。

And the second part, when I try to think about that inventory write-down, how do I square or think about the proportion that it relates to domestic adds versus inventory that just didn't get sold in Europe, right? The US component and the European component (inaudible).

第二部分，當我試圖思考庫存減記時，我該如何平衡或思考它與國內增加的庫存與未在歐洲售出的庫存之間的比例，對嗎？美國部分和歐洲部分（聽不清楚）。

So first of all, from an inventory write-down, I'll start by saying -- and please direct me if I'm not answering all of your aspects of the question but we do not expect -- the inventory rentals that we did, we believe, are what is needed, and we do not expect to see more of those inventory write-downs in the solar division. Now the write-downs were basically a result of the following aspects.

首先，從庫存減記開始，我首先要說的是——如果我沒有回答你問題的所有方面，請告訴我，但我們並不期望——我們所做的庫存租金，我們相信，這是所需要的，並且我們預計太陽能部門不會再出現更多的此類庫存減記。目前的減損主要有以下幾個方面的原因。

First of all, we do see that at least in the European market, the demand that we see because of the fact that European is going down a little bit, the demand that we see is a little bit slower than we anticipated. And as such, we decided to at least to see that inventories that we do not expect to sell within a certain period, we decided to basically write off because as time goes by and prices are changing, we may not see these inventories are going away. This is basically what we call a inventory absence. It means that it's not that we're reducing the cost of it, but we're reducing the -- we're assuming that it will be obsolete.

首先，我們確實看到，至少在歐洲市場，由於歐洲經濟下滑，我們看到的需求比我們預期的要慢。因此，我們決定至少將那些我們預計在一定時期內不會出售的庫存基本註銷，因為隨著時間的推移和價格的變化，我們可能不會看到這些庫存消失。這基本上就是我們所說的庫存缺失。這意味著我們並不是在降低它的成本，而是在降低——我們假設它會被淘汰。

The second part, again, are units of inventory that we expect not to continue to actively promote because they provide less of value to the customer, given the prices that we see today, competitive offers that they have in these specific sizes of installations or simply the fact that we start to see that in some places, maintaining those inventory sales will require higher certification and support costs. So this is something that we also do.

第二部分，同樣，是我們預計不會繼續積極推廣的庫存單位，因為它們為客戶提供的價值較低，考慮到我們今天看到的價格，他們在這些特定規模的安裝中提供的競爭性報價，或者只是事實上，我們開始看到，在某些地方，維持這些庫存銷售將需要更高的認證和支援成本。所以這也是我們所做的事情。

And then comes the fact that, as you mentioned, indeed, in the US, we see a very fast move towards consumption of domestic content compared to what we thought will be the case. We did see some of the TPOs already dictating that starting in Q4, they will not take any nondomestic content product and that means that if we saw that we have two or three quarters maybe to get rid of inventory, now we see that this may be a little bit shorter.

事實是，正如您所說，在美國，與我們的想像相比，我們看到國內內容消費的轉變非常快。我們確實看到一些TPO 已經規定從第四季度開始，他們將不再接受任何非國內產品，這意味著，如果我們看到我們可能有兩個或三個季度的時間來清理庫存，那麼現在我們看到這可能是短一點。

I would say that -- we feel that what we see today -- and all of these, by the way, are again, issues related to obsolescence. I would say that on the cost down or selling below cost, the only items that we needed to reduce the cost where we do not think that there is obsolescence of inventory were related to the batteries because here in batteries, we do see, and especially in Europe that the competitive pricing is far more higher.

我想說的是——我們覺得我們今天看到的——順便說一下，所有這些，都是與過時相關的問題。我想說的是，在降低成本或低於成本銷售方面，我們需要降低成本的唯一項目是電池，因為在電池領域，我們確實看到，尤其是在歐洲，競爭性定價要高得多。

So again, we feel that the impact of the domestic content was, I would say, relatively large, but not even half of everything that we did here. I think that most of the write-down came from obsolescence and not the fact that we're going to sell below cost. And looking at the prices and the prices that we believe that will prevail, we feel comfortable with the amount of inventory that we wrote off.

因此，我們再次認為，國內內容的影響相對較大，但還不及我們在這裡所做的一切的一半。我認為大部分減記是由於產品陳舊過時，而不是因為我們要以低於成本的價格出售。透過查看價格以及我們認為將會占主導地位的價格，我們對核銷的庫存數量感到滿意。

Vikram Bagri, Citi.

花旗銀行的維克拉姆‧巴格里 (Vikram Bagri)

We saw the announcement of "drastic price reductions with immediate effect on (technical difficulty) products but the announcement was pretty recent from some of your distributors. It sounds like pricing went down by 20%. One clarification on that, does the $450 million sell-through in 3Q reflects the full impact of this pricing, it sounds like it does not.

我們看到了「大幅降價」的公告，這些降價產品立即生效，但這是你們一些分銷商最近才發布的公告。聽起來價格下降了 20%。需要澄清的是，第三季 4.5 億美元的銷售額是否反映了這項定價的全部影響？

And then on related to the same topic, I believe you previously retained enough manufacturing capacity to generate about $1 billion of quarterly revenues. How much capacity are you maintaining now I'm trying to understand what level of revenues do you need to generate mid-20% gross margins? And what levers can you pull to get there, especially given your comments about Europe still declining, pricing being a headwind in 2025 versus 2024 once again.

然後關於同一主題，我相信您之前保留了足夠的製造能力來創造約 10 億美元的季度收入。您現在維持的產能是多少？您可以使用哪些手段來實現這一目標，尤其是考慮到您所說的歐洲仍在衰退，而定價在 2025 年與 2024 年相比將再次成為逆風。

On the same topic, same question on OpEx. Ronen, you mentioned there are a lot of uncertainties around OpEx and putting a target there. Going back to prewar levels of OpEx is somewhat tough. How are you thinking about OpEx given the revenue outlook is uncertain. Is there like a target as a percentage of revenues? Is there a target in terms of head count? Is there a target? How are you thinking about like OpEx target? And how do you get there?

關於同一主題，關於 OpEx 的相同問題。Ronen，您提到圍繞營運支出以及設定目標存在許多不確定性。回到戰前的營運支出水準有些困難。鑑於收入前景不確定，您如何考慮營運支出？是否有一個收入百分比的目標？在人數方面有目標嗎？有目標嗎？您如何考慮 OpEx 目標？那你怎麼去那裡呢？

Well, I think I'll try to shorten my response as we -- as I look at the time. Basically, to your question, we didn't -- the price reductions that you mentioned were not reflected all of them in Q3. Of course, we had price reductions and promotions in Q3 as Ronen mentioned, but the price reduction -- the big ones, price reductions and promotions in Europe were actually launched only last week. So of course, they're not reflected in the Q3 numbers.

好吧，我想我會嘗試縮短我的回答，因為我看了看時間。基本上，對於您的問題，我們沒有——您提到的降價並沒有全部反映在第三季。當然，正如羅南所提到的，我們在第三季度進行了降價和促銷，但降價——歐洲的大型降價和促銷實際上是上週才開始的。因此當然，它們沒有反映在第三季的數據中。

And Vikram, it becomes back to the manufacturing footprint and looking ahead, we no longer have the $1 billion capacity. When we did the $1 billion capacity, it's included Mexico that no longer exist. It included China that is almost nonexistent right now, it includes Vietnam that is still existing, but we basically separate until we see a growth in inventories. We had a factory in Europe that we are basically no longer using or not our factory, but the third party factory, and we have Sella 1, which we still use by the way, for NPI and other areas. So in that sense, we do not longer have the infrastructure for $1 billion.

維克拉姆 (Vikram) 又回到了製造足跡，展望未來，我們不再擁有 10 億美元的產能。當我們實現 10 億美元的產能時，其中包括不再存在的墨西哥。其中包括目前幾乎不存在的中國，也包括仍然存在的越南，但我們基本上將其分開，直到我們看到庫存成長。我們在歐洲有一家工廠，現在基本上不再使用了，或者說不是我們的工廠，而是第三方工廠，我們還有Sella 1，順便說一下，我們仍然在使用它，用於新產品導入和其他領域。從這個意義上來說，我們不再擁有價值 10 億美元的基礎設施。

I would say that being at approximately 20% gross margin, very much going to be determined by the percentages of how much we're going to sell in Europe compared to the United States because this is also very much impacting the IRA benefit that we're going to get. So I would say that I believe that 20% gross margin could be achieved. If we discussed it before at the $550 million, this is something that should be at a lower number.

我想說，毛利率大約是 20%，這很​​大程度上取決於我們在歐洲的銷售量與在美國的銷售量之比，因為這也對我們的 IRA 福利產生了很大影響。 。因此我相信可以實現20%的毛利率。如果我們之前討論的是 5.5 億美元，那麼這個數字應該會更低。

Again, giving the number exactly is hard because of the mix that I do not know right now. And when we're looking at OpEx, again, we're still trying to understand how the market looks like, and we'll be able to be, I believe, a little bit smarter once we see how things are developing in the US and Europe, but I would say that, of course, as a company, we need to be in the course of '25 to reach at a certain point to a level of OpEx that is bringing us to be breakeven, if not profitable. So again, this is something that we look, but I'm not sure that I have a number right now.

再說一遍，由於我現在不知道混合情況，所以很難給出準確的數字。當我們再次審視營運成本時，我們仍在試圖了解市場狀況，我相信，一旦我們看到美國的情況如何發展，我們就能變得更聰明一些和歐洲，但我想說，當然，作為一家公司，我們需要在25年內達到一定的營運支出水平，即使不能獲利，也能達到收支平衡。所以，這是我們要看的東西，但我現在不確定是否有一個確切的數字。

And it appears that we have reached our allotted time for questions. I will now turn the program back to CEO, Ronen Faier for any additional or closing remarks.

看起來我們的提問時間已經到了。現在，我將節目交還給執行長 Ronen Faier，請他發表任何補充或結束語。

Thank you very much. So I would like to thank all of you for joining our call today. We know that the solar market has always been interesting, and I think that over the last few days, it's been more interesting we stay very committed to bringing the company back to its growth trajectory. We're very focused on the measures that we're taking, we're happy to explain them today, and we'll be happy to continue informing and updating you all on the progress of our journey. Thank you very much, and have a good and safe evening.

非常感謝。因此，我要感謝大家今天參加我們的電話會議。我們知道太陽能市場一直很有趣，我認為在過去的幾天裡，它變得更加有趣，我們始終致力於讓公司重回成長軌道。我們非常關注我們正在採取的措施，我們很高興今天解釋這些措施，我們也很樂意繼續向大家通報和更新我們旅程的進展。非常感謝，祝您有個愉快、安全的夜晚。

This does conclude today's presentation. Thank you for your participation. You may disconnect at any time.

今天的演講到此結束。感謝您的參與。您可以隨時斷開連線。