Silicom Ltd (SILC) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Silicom First Quarter 2023 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. You should have all received, by now, the company's press release. If you have not received it, please contact Silicom's Investor Relations team at EK Global Investor Relations at 1 (212) 378-8040 or view it in the News section of the company's website, www.silicom-usa.com. I would now like to hand over the call to Mr. Kenny Green of EK Global Investor Relations. Mr. Green, would you like to begin, please?

女士們，先生們，謝謝你們的支持。歡迎參加 Silicom 2023 年第一季度業績電話會議。 （操作員說明）提醒一下，正在錄製此會議。到現在為止，你們應該都收到了公司的新聞稿。如果您還沒有收到，請致電 1 (212) 378-8040 聯繫 EK Global Investor Relations 的 Silicom 投資者關係團隊，或在公司網站 www.silicom-usa.com 的新聞部分查看。我現在想把電話轉給 EK 全球投資者關係部的 Kenny Green 先生。格林先生，請問您要開始了嗎？

Thank you, operator. I would like to welcome all of you to Silicom's First Quarter 2023 Results Conference Call. Before we begin, I would like to draw your attention to the following safe harbor statement. This conference call contains projections or other forward-looking statements regarding future events or the future performance of the company. These statements are only predictions and may change as time passes. Silicom does not assume any obligation to update that information. Actual events or results may differ materially from those projected, including as a result of Silicom's increasing dependence for substantial revenue growth on a limited number of customers in the evolving cloud-based SD-WAN, NFV and Edge markets.

謝謝你，運營商。歡迎大家參加 Silicom 2023 年第一季度業績電話會議。在我們開始之前，我想提請您注意以下安全港聲明。本次電話會議包含有關未來事件或公司未來業績的預測或其他前瞻性陳述。這些陳述只是預測，可能會隨著時間的推移而改變。 Silicom 不承擔任何更新該信息的義務。實際事件或結果可能與預測的事件或結果存在重大差異，包括由於 Silicom 在不斷發展的基於雲的 SD-WAN、NFV 和邊緣市場中越來越依賴有限數量的客戶來實現可觀的收入增長。

The speed and extents to which solutions are adopted by these markets, the likelihood that Silicom rely increasingly on customers which provide solutions in these evolving markets, resulting in an ever increasing dependence on a smaller number of larger customers; difficulty in commercializing and marketing of Silicom's products and services; maintaining and protecting brand recognition; protection of intellectual property; competition; disruptions to manufacturing; sales and marketing; development and customer support activities; the impact of the war in the Ukraine; rising inflation; rising interest rates; volatile exchange rates and commodities prices as well as any continuing or new effects resulting from the COVID-19 pandemic and the global economic uncertainty, which may impact customer demand through their exercising greater caution and selectivity with their short-term IT investment plans as well as other factors discussed in our annual report on Form 20-F and other documents filed by the company that may be subsequently filed by the company from time to time with the Securities and Exchange Commission.

這些市場採用解決方案的速度和程度，Silicom 越來越依賴在這些不斷發展的市場中提供解決方案的客戶的可能性，導致越來越依賴少數大客戶； Silicom 的產品和服務難以商業化和營銷；維護和保護品牌知名度；知識產權保護；競賽;製造中斷；銷售和營銷;開發和客戶支持活動；烏克蘭戰爭的影響；通脹上升；利率上升；波動的匯率和商品價格以及 COVID-19 大流行和全球經濟不確定性導致的任何持續或新影響，這可能會影響客戶需求，因為他們在短期 IT 投資計劃以及我們在 20-F 表格年度報告和公司提交的其他文件中討論的其他因素，這些文件隨後可能由公司不時向美國證券交易委員會提交。

In addition, following the company's disclosure of certain non-GAAP financial measures in today's earnings release, such non-GAAP financial measures will be discussed during this call. Such non-GAAP measures are used by management to make strategic decisions, forecast, future results and evaluate the company's future and current performance. Management believes that the presentation of these non-GAAP financial measures are useful to investors' understanding and assessment of the company's ongoing core operations and prospects for the future. Unless otherwise stated, it should be assumed that financials discussed in this conference call will be on a non-GAAP basis. Non-GAAP financial measures disclosed by management are provided as additional information to investors in order to provide them with an alternative method for assessing our financial condition and operating results. These measures are not in accordance with or a substitute for GAAP. A full reconciliation of non-GAAP to GAAP financial measures are included in today's earnings release, which you can find on Silicom's website.

此外，繼公司在今天的收益發布中披露了某些非 GAAP 財務措施後，將在本次電話會議期間討論此類非 GAAP 財務措施。管理層使用此類非 GAAP 衡量標準來做出戰略決策、預測、未來結果以及評估公司的未來和當前績效。管理層認為，這些非 GAAP 財務指標的列報有助於投資者了解和評估公司持續的核心業務和未來前景。除非另有說明，否則應假定本次電話會議中討論的財務數據將基於非公認會計原則。管理層披露的非 GAAP 財務指標作為附加信息提供給投資者，以便為他們提供評估我們財務狀況和經營業績的替代方法。這些措施不符合或替代公認會計原則。非 GAAP 與 GAAP 財務指標的全面對賬包含在今天的收益發布中，您可以在 Silicom 的網站上找到。

With us on the line today are Mr. Liron Eizenman, President and CEO; and Mr. Eran Gilad, CFO. Liron will begin with an overview of the results followed by Eran, who will provide the analysis of the financials. We will then turn the call over to the question-and-answer session. And with that, I would now like to hand the call over to Liron. Liron, please go ahead.

今天和我們一起在線的有總裁兼首席執行官 Liron Eizenman 先生；和首席財務官 Eran Gilad 先生。 Liron 將首先概述結果，然後 Eran 將提供財務分析。然後，我們會將電話轉入問答環節。有了這個，我現在想把電話交給 Liron。 Liron，請繼續。

Thank you, Kenny. I would like to welcome all of you to our financial results conference call discussing our first quarter 2023 results. We are very happy to report on a great start to 2023. We grew our first quarter revenues, seasonally the weakest quarter of the year to $37.2 million, representing a 16% increase over the first quarter of last year. Our continued year-over-year growth is all the more impressive against the background of a more challenging environment with ongoing component shortages in some cases and an uncertain economic environment.

謝謝你，肯尼。歡迎大家參加我們的財務業績電話會議，討論我們 2023 年第一季度的業績。我們很高興地報告 2023 年的良好開端。我們第一季度的收入增長到 3720 萬美元，比去年第一季度增長 16%，這是一年中季節性最弱的季度。在更具挑戰性的環境、某些情況下持續存在的組件短缺和不確定的經濟環境的背景下，我們持續的同比增長更加令人印象深刻。

For Silicom, the strong operating leverage within our business model allowed the revenue growth to translate into accelerated profit growth, demonstrated by 41% growth in operating income to $4.8 million and highlighted by the improved operating margins at 12.8% this quarter versus 10.5% in the first quarter of last year. The continued success led to our 73rd quarter of uninterrupted profitability, and we reported first quarter earnings per share, up 38% year-over-year to $0.61 per diluted share.

對於 Silicom 而言，我們業務模式中強大的運營槓桿使收入增長轉化為利潤加速增長，營業收入增長 41% 至 480 萬美元，本季度營業利潤率提高至 12.8%，高於上一季度的 10.5%。去年第一季度。持續的成功使我們在第 73 個季度實現了不間斷的盈利，我們報告了第一季度每股收益，同比增長 38% 至攤薄後每股收益 0.61 美元。

Our success in the quarter emphasizes the continued robust and broad interest across all our target markets, especially for our Edge products. It showcases the market's recognition of the distinct value proposition that we at Silicom have cultivated over many years. It is built on our high-performance offering, dependable delivery, rapid customization and unparalleled support capabilities. Our achievements underscore the clear market demand for our innovative products and solutions.

我們在本季度的成功強調了我們所有目標市場的持續強勁和廣泛的興趣，尤其是對我們的 Edge 產品。它展示了市場對我們 Silicom 多年來培養的獨特價值主張的認可。它建立在我們的高性能產品、可靠的交付、快速定制和無與倫比的支持能力之上。我們的成就凸顯了市場對我們創新產品和解決方案的明確需求。

Looking at our balance sheet strength, we continue to improve our cash position, which currently stands above $53 million with no debt. Our strong cash position is a key strategic asset and enables us to capitalize quickly on opportunities. In today's market, especially, it also provides us with a significant competitive advantage, enabling sufficient working capital to serve our customers better and attract new customers.

看看我們的資產負債表實力，我們繼續改善我們的現金狀況，目前沒有債務超過 5300 萬美元。我們強大的現金狀況是一項關鍵的戰略資產，使我們能夠迅速把握機遇。特別是在今天的市場上，它還為我們提供了顯著的競爭優勢，使我們有足夠的營運資金更好地為我們的客戶服務並吸引新客戶。

Furthermore, it allows us to share the reward of our continued profitability and cash generation with our shareholders. In light of this, today, the Board of Directors authorized a new 1 year share repurchase plan allowing Silicom to purchase up to $15 million worth of our ordinary shares in the market.

此外，它使我們能夠與股東分享我們持續盈利和產生現金的回報。有鑑於此，今天，董事會批准了一項新的 1 年期股票回購計劃，允許 Silicom 在市場上購買價值高達 1500 萬美元的普通股。

Our successful sales efforts in recent quarters have resulted in an impressive roster of design wins, which continue to grow. During the quarter, we announced new design wins, highlighting Edge units for SD-WAN, SASE and Unified Communication use cases. And this underlines our growing estimate of the total addressable market for our Edge products, our primary growth engine today.

我們在最近幾個季度的成功銷售努力帶來了令人印象深刻的設計勝利名單，而且還在繼續增長。在本季度，我們宣布了新的設計勝利，重點介紹了用於 SD-WAN、SASE 和統一通信用例的邊緣單元。這突顯了我們對 Edge 產品的總潛在市場的不斷增長的估計，這是我們今天的主要增長引擎。

In January, we announced a new design win from a leading SD-WAN vendor, a Fortune 500 company with global presence. They selected the customized version of one of our 5G integrated high-runner Edge networking products for its unique features and flexible connectivity. Our selection by this SD-WAN leader after an extensive search and negotiation process, confirms our value proposition and is another proof point of the significant growth potential we see in our Edge product family.

1 月，我們宣布贏得一家領先的 SD-WAN 供應商的新設計，該供應商是一家全球知名的財富 500 強公司。他們選擇了我們的一款 5G 集成高跑邊緣網絡產品的定製版本，因為它具有獨特的功能和靈活的連接性。經過廣泛的搜索和談判過程，我們被這位 SD-WAN 領導者選中，確認了我們的價值主張，並且是我們在 Edge 產品系列中看到的巨大增長潛力的另一個證明。

A few weeks later, in February, we announced a design win with a new customer, a leading Unified Communication solution provider for one of our customized Edge Compute boards. The Board will be integrated into the customer's advanced UCPE platform, providing them with added functionality, including support for virtual network functions.

幾週後，即 2 月，我們宣布贏得了一位新客戶的設計，這是一家領先的統一通信解決方案提供商，為我們的定制邊緣計算板之一提供服務。該板將集成到客戶的高級 UCPE 平台中，為他們提供附加功能，包括對虛擬網絡功能的支持。

Orders totaling $2.5 million have been placed to date with some products already delivered. And later in February, we secured a new design win for our innovative Edge networking product with a top secure access service Edge vendor. This was our second significant win in the high-growth SASE market during a period of 6 months.

迄今為止，已經下達了總計 250 萬美元的訂單，其中一些產品已經交付。 2 月下旬，我們與頂級安全訪問服務邊緣供應商一起為我們的創新邊緣網絡產品贏得了新設計。這是我們在 6 個月內在高速增長的 SASE 市場中取得的第二個重大勝利。

The initial deployment order will be delivered during the first half of 2023, and we are further collaborating with that customer on a wireless Edge networking solution to support additional use cases, which has the potential to expand and grow our business with them into additional areas. Those recent wins demonstrate that our momentum in Edge networking is now broadening well beyond the SD-WAN space, with growing interest from customers, seeking enhanced performance and flexibility for the next-generation networks.

初始部署訂單將於 2023 年上半年交付，我們正在與該客戶進一步合作開發無線邊緣網絡解決方案，以支持更多用例，這有可能將我們與他們的業務擴展和發展到更多領域。這些最近的勝利表明，我們在邊緣網絡方面的勢頭現在已經遠遠超出了 SD-WAN 領域，客戶越來越感興趣，尋求下一代網絡的增強性能和靈活性。

Our unique value proposition, including the broadest portfolio of Edge networking offerings, attractive price points exceptional customization capabilities as well as our close working relationship with Intel is compelling for all types of market players, not just solution vendors but also telco, service providers and more. As I mentioned, the success we have seen in recent months has led us to increase our internal expectations of the overall Edge market potential for Silicom.

我們獨特的價值主張，包括最廣泛的邊緣網絡產品組合、極具吸引力的價格點、卓越的定制能力以及我們與英特爾的密切合作關係，吸引了所有類型的市場參與者，不僅是解決方案供應商，還有電信、服務提供商等.正如我所提到的，我們在最近幾個月看到的成功讓我們提高了對 Silicom 整體邊緣市場潛力的內部預期。

This is based on the strong momentum we see in the sector as well as our Silicom's key position as the go-to technology partner in this accelerating Edge networking market. More recently, a few weeks ago, a Tier 1 U.S.-based cybersecurity vendor awarded us 2 NIC designs -- 2 NIC design wins for an advanced encryption offload acceleration card and an FPGA SmartNIC demonstrating that our traditional product lines NICs and server adapters continue to play an important role in our growth. Our products will be integrated into the customers' next-generation solutions, helping secure and optimize networks and applications for [10] customers, which are some of the world's largest organizations.

這是基於我們在該行業看到的強勁勢頭，以及我們的 Silicom 在這個加速發展的邊緣網絡市場中作為首選技術合作夥伴的關鍵地位。最近，幾週前，一家位於美國的一級網絡安全供應商授予我們 2 個 NIC 設計——2 個 NIC 設計贏得高級加密卸載加速卡和 FPGA SmartNIC，證明我們的傳統產品線 NIC 和服務器適配器繼續在我們的成長中扮演著重要的角色。我們的產品將集成到客戶的下一代解決方案中，幫助保護和優化 [10] 客戶的網絡和應用程序，這些客戶是世界上一些最大的組織。

Our customer plans to ramp up deployment in the second half of 2023 with fast deployment starting next year in 2024. Our impressive roster of design wins with the world's leading vendors attest to the innovation of our technology across the board. Our broad portfolio, our unique full service package and our reputation as the go-to source for performance-enhancing solutions, they affirm our strategy of offering a diverse range of products that addresses our customers' critical needs and emphasizes the ongoing relevance of our traditional product lines in driving our growth.

我們的客戶計劃在 2023 年下半年加快部署，並從明年 2024 年開始快速部署。我們令人印象深刻的設計名單贏得了世界領先的供應商，證明了我們的技術全面創新。我們廣泛的產品組合、我們獨特的全方位服務包以及我們作為性能增強解決方案的首選來源的聲譽，它們肯定了我們提供多樣化產品以滿足客戶關鍵需求的戰略，並強調了我們傳統的持續相關性推動我們增長的產品線。

Looking at our design win pipeline, as we move through 2023, it remains exceptionally solid and broad. Today, we can see significant promise with some of the potential design wins at advanced stages of the discussion, which could accelerate our revenue growth in the coming years. To highlight and provide some color on some of the potential wins we are working on. First, a Tier 1 cybersecurity leader is considering the use of a few of our innovative feature-reach products that we develop and continue developing as an expansion of our product lines.

看看我們的設計獲勝管道，隨著我們進入 2023 年，它仍然非常穩固和廣泛。今天，我們可以在討論的後期階段看到一些潛在的設計獲勝的巨大希望，這可能會在未來幾年加速我們的收入增長。突出顯示我們正在努力的一些潛在勝利並提供一些顏色。首先，一級網絡安全領導者正在考慮使用我們開發並繼續開發的一些創新功能產品，作為我們產品線的擴展。

We believe that we are well positioned as one of the only vendors in the world with core competencies and capabilities to develop those products for this customer. Furthermore, those advanced products will increase our competitiveness and further enable us to win additional business with other customers. Second, a prominent SD-WAN vendor is interested in adopting our Edge products as their next-generation SD-WAN platform. Third, a service provider is interested in utilizing our low-end Edge CPE for a new use case, which will enable them to deliver new features to their customers and reduce internal overruns. While a few of those projects still require more design and testing activities in the coming months, we expect the deployments will begin towards the end of 2023 and in 2024.

我們相信，作為世界上僅有的幾家擁有為該客戶開發這些產品的核心競爭力和能力的供應商之一，我們處於有利地位。此外，這些先進產品將提高我們的競爭力，並進一步使我們能夠贏得與其他客戶的更多業務。其次，一家著名的 SD-WAN 供應商有興趣採用我們的邊緣產品作為他們的下一代 SD-WAN 平台。第三，服務提供商有興趣將我們的低端邊緣 CPE 用於新用例，這將使他們能夠向客戶提供新功能並減少內部超支。雖然其中一些項目在未來幾個月仍需要更多的設計和測試活動，但我們預計部署將在 2023 年底和 2024 年開始。

Our growth strategy was always built on winning more and more design wins and adding them to our growing roster of design wins. This is how we increase our revenue and market share, further cementing our position as an industry leader. The above projects are just examples of our healthy and quality pipeline of potential future design wins.

我們的增長戰略始終建立在贏得越來越多的設計勝利並將它們添加到我們不斷增長的設計勝利名單上。這就是我們增加收入和市場份額的方式，進一步鞏固了我們作為行業領導者的地位。上述項目只是我們未來潛在設計獲勝的健康和優質管道的例子。

All in all, Silicom today remains positioned as a key player in our industry, and we continue to be increasingly excited about the opportunities that lay ahead of us. In terms of guidance for the second quarter, we projected our revenue for the second quarter of 2023 will range between $38 million and $39 million. While we are mindful of possible headwinds from a weaker global macroeconomic environment and outlook, we are very pleased to provide this guidance, which at the midpoint of the range represents 13% year-over-year revenue growth over the second quarter of 2022 and a solid double-digit year-over-year growth for the first half of 2023.

總而言之，今天的 Silicom 仍然是我們行業的主要參與者，我們繼續對擺在我們面前的機會感到越來越興奮。在第二季度的指導方面，我們預計 2023 年第二季度的收入將在 3800 萬美元至 3900 萬美元之間。雖然我們注意到全球宏觀經濟環境和前景疲軟可能帶來的不利因素，但我們很高興提供這一指導意見，該指導意見處於該範圍的中點，代表 2022 年第二季度收入同比增長 13%，並且2023 年上半年實現兩位數的穩健同比增長。

In summary, we are very happy to report a strong start to 2023 with solid year-over-year revenue growth with increased growth at the bottom line. Our success is built on diverse and significant interest from our target markets particularly for our innovative Edge products and showcases that the market appreciation of our unique value proposition, including high-performance offerings, reliable delivery and exceptional support capabilities. the exceptionally solid interest from new and existing customers for our latest solutions indicates that the total addressable market for our Edge networking product is larger than we initially estimated and underlies our expectations for the long-term growth.

總而言之，我們很高興地報告 2023 年開局強勁，收入同比穩步增長，利潤增長加快。我們的成功建立在目標市場對我們創新的 Edge 產品的多樣化和顯著興趣的基礎上，並表明市場對我們獨特的價值主張的認可，包括高性能產品、可靠的交付和卓越的支持能力。新客戶和現有客戶對我們最新解決方案的濃厚興趣表明，我們邊緣網絡產品的總潛在市場比我們最初估計的要大，這也是我們對長期增長的預期的基礎。

We maintain an impressive roster of top-tier customers and design wins, many of which are in the initial ramp-up phase. Additionally, our robust pipeline of future design wins holds further significant and accelerated growth potential for us.

我們保持著令人印象深刻的頂級客戶和設計勝利名冊，其中許多處於初始提升階段。此外，我們強大的未來設計獲勝渠道為我們帶來了進一步顯著和加速的增長潛力。

With that, I will now hand over the call to Eran for a detailed review of the quarter results. Eran, please go ahead.

有了這個，我現在將把電話交給 Eran，讓他詳細審查季度業績。伊蘭，請繼續。

Thank you, Liron, and hello, everyone. Revenues for the first quarter of 2023, were $37.2 million, up 16% compared with revenues of $32.1 million as reported in the first quarter of last year. Our geographical revenue breakdown over the last 12 months were as follows: North America, 76%; Europe and Israel, 19%; Far East and rest of the world, 5%.

謝謝你，Liron，大家好。 2023 年第一季度的收入為 3720 萬美元，與去年第一季度報告的 3210 萬美元相比增長了 16%。我們過去 12 個月的地域收入細分如下：北美，76%；歐洲和以色列，19%；遠東和世界其他地區，5%。

During the last 12 months, we had one 10-plus-percent customer and our top 3 customers together accounted for about 30% of our revenues. I will be presenting the rest of the financial results on a non-GAAP basis, which excludes the noncash compensation expenses in respect of options and RSUs granted to directors, officers and employees, acquisition-related adjustments as well as lease liabilities, financial income.

在過去的 12 個月裡，我們有一個 10% 以上的客戶，我們的前 3 大客戶合計占我們收入的 30% 左右。我將在非 GAAP 基礎上呈現其餘財務結果，其中不包括授予董事、高級職員和員工的期權和 RSU 的非現金補償費用、與收購相關的調整以及租賃負債、財務收入。

For the full reconciliation from GAAP to non-GAAP numbers, please refer to the press release we issued earlier today. Gross profit for the first quarter of 2023 was $11.9 million, representing a gross margin of 32% and compared to gross profit of $11.1 million or gross margin of 34.5% in the first quarter of 2022. The variance in the gross margin is a function of the specific product mix sold in the quarter and -- in the quarter and remains in line with the expected range of our gross margin guidance of between 32% and 36%.

有關從 GAAP 到非 GAAP 數字的完整調節，請參閱我們今天早些時候發布的新聞稿。 2023 年第一季度的毛利潤為 1190 萬美元，毛利率為 32%，而 2022 年第一季度的毛利潤為 1110 萬美元或毛利率為 34.5%。毛利率的差異是以下因素的函數本季度和本季度銷售的特定產品組合與我們毛利率指導的預期範圍 32% 至 36% 保持一致。

Operating expenses in the first quarter of 2023 were $7.1 million below $7.7 million reported in the first quarter of 2022. Operating income for the first quarter of 2023 was $4.8 million, an increase of 41% compared to operating income of $3.4 million as reported in the first quarter of 2022.

2023 年第一季度的營業費用為 710 萬美元，低於 2022 年第一季度報告的 770 萬美元。2023 年第一季度的營業收入為 480 萬美元，比報告中報告的營業收入 340 萬美元增長 41% 2022 年第一季度。

Net income for the quarter was $4.2 million, an increase of 38% compared to $3 million in the first quarter of 2022. Earnings per diluted share in the quarter were $0.61. This is a year-over-year increase of 38% compared with EPS of $0.44 as reported in the first quarter of last year.

本季度淨收入為 420 萬美元，與 2022 年第一季度的 300 萬美元相比增長 38%。本季度攤薄後每股收益為 0.61 美元。與去年第一季度報告的每股收益 0.44 美元相比，同比增長 38%。

Now turning to the balance sheet. As of March 31, 2023, the company's cash, cash equivalents and marketable securities totaled $53.5 million with no debt or $7.92 per outstanding share.

現在轉向資產負債表。截至 2023 年 3 月 31 日，公司的現金、現金等價物和有價證券總計 5350 萬美元，無債務或每股流通股 7.92 美元。

That ends my summary. I would like to hand back over to the operator for question-and-answer session. Operator?

我的總結到此結束。我想交回接線員進行問答環節。操作員？

(Operator Instructions) The first question is from Alex Henderson of Needham & Company.

（操作員說明）第一個問題來自 Needham & Company 的 Alex Henderson。

Congratulations on the good print. The conditions are obviously challenging out there. A number of companies have been struggling to make their numbers or sustain the momentum in their numbers. And obviously, that's not the case for you guys, which is impressive. I was hoping you could talk a little bit about the predictability of your backlog. There's obviously companies that have backlog that are in systems that are generally pretty solid to the extent that people rarely double order systems. But on the other side of the coin when it comes to subassembly components and customer on-prem gear that's -- for the Edge, it's a little bit dicier environment. Some of the service providers, in particular, have a poor track record of managing their inventory.

祝賀你的好印刷品。那裡的條件顯然具有挑戰性。許多公司一直在努力創造業績或維持業績增長勢頭。顯然，你們不是這種情況，這令人印象深刻。我希望您能談一談積壓工作的可預測性。很明顯，有些公司有積壓的系統，這些系統通常非常可靠，以至於人們很少重複訂購系統。但在硬幣的另一面，當涉及到組件組件和客戶預置設備時，對於 Edge 來說，它的環境有點不確定。特別是一些服務提供商在管理庫存方面的記錄不佳。

So can you talk a little bit about the degree to which you see your backlog of business, your visibility to the orders being different than as I just described it. I think you guys have some noncancelable provisions and may have a little bit better visibility on some of the systems than some of the Edge guys. Can you talk a little bit about that, please?

那麼，您能否談談您看到業務積壓的程度，您對訂單的可見性與我剛才描述的不同。我認為你們有一些不可取消的規定，並且在某些系統上的可見性可能比某些 Edge 人員要好一些。你能談談嗎？

Sure, sure. So first of all, thank you for the warm words. And you're right. I mean the way that we conduct our business is such that, indeed, orders are not cancelable. And we are talking a lot with our customers to understand their inventory positions and their plans going forward. And we do not believe that we're in a situation of double booking or risk to those orders. And in general, when we're looking at Q2 with the guidance that we provided, it's obviously based on the orders that we have and the orders that we expect to get. So we feel comfortable with that number. And in general, we see that maybe a summary to your question, we don't see a huge risk with the backlog that we have right now.

一定一定。所以首先，謝謝你的溫暖話語。你是對的。我的意思是我們開展業務的方式確實是訂單不可取消。我們正在與客戶進行大量交談，以了解他們的庫存狀況和他們未來的計劃。而且我們不認為我們處於重複預訂或這些訂單風險的情況。總的來說，當我們根據我們提供的指導來看待第二季度時，它顯然是基於我們擁有的訂單和我們期望獲得的訂單。所以我們對這個數字感到滿意。總的來說，我們看到這可能是對您問題的總結，我們現在沒有看到積壓的巨大風險。

Can you talk a little bit about how visible it is going into the back half? I know you don't want to offer guidance for the back half at this point. But do you have visibility into the second half of the year? And is it consistent with normal trends? How should we think about moving into the back half of the year?

你能談談它進入後半部分的可見度嗎？我知道您現在不想為後半部分提供指導。但是你對今年下半年有了解嗎？它是否符合正常趨勢？我們應該如何考慮進入下半年？

Currently, we do not provide the guidance for the second half of the year. Traditionally, we always give 1 quarter ahead, and we're doing the same now. So we don't have much to add on that right now.

目前，我們不提供下半年的指導。傳統上，我們總是提前一個季度，現在我們也在做同樣的事情。所以我們現在沒有太多要補充的。

Okay. And then can you talk a little bit about your approach to hedging? What extent you're hedged against forward-looking and the like? The shekel obviously has been quite weak as a result of political turmoil.

好的。然後你能談談你的套期保值方法嗎？您在多大程度上對沖了前瞻性等因素？由於政治動盪，謝克爾顯然已經相當疲軟。

The effect of the shekel or the dollar was quite mild this quarter. It was a positive effect, but it's very marginal numbers.

本季度謝克爾或美元的影響相當溫和。這是一個積極的影響，但這是非常微不足道的數字。

Just adding to that, we're not hedging. We've never done it, and we're not hedging against the shekel.

除此之外，我們沒有對沖。我們從來沒有這樣做過，我們也沒有對沖謝克爾。

(Operator Instructions)

（操作員說明）

There are no further questions at this time. Before I ask Mr. Eizenman to go ahead with his closing statement, I would like to remind participants that a replay of this call will be available by tomorrow on Silicom's website, www.silicom-usa.com.

目前沒有其他問題。在我請 Eizenman 先生繼續他的閉幕詞之前，我想提醒與會者，明天之前可以在 Silicom 的網站 www.silicom-usa.com 上看到這次電話會議的重播。

Mr. Eizenman, would you like to make your concluding statement?

Eizenman 先生，您要作總結髮言嗎？

Thank you, operator. Thank you, everybody, for joining the call and for your interest in Silicom. We look forward to hosting you on our next call in 3 months' time. Good day.

謝謝你，運營商。感謝大家加入電話會議並感謝您對 Silicom 的關注。我們期待在 3 個月後的下一次電話會議上接待您。再會。

Thank you. This concludes Silicom's First Quarter 2023 Results Conference Call. Thank you for your participation. You may go ahead and disconnect.

謝謝。 Silicom 2023 年第一季度業績電話會議到此結束。感謝您的參與。您可以繼續並斷開連接。