Velo3D Inc (VELO) 2023 Q3 法說會逐字稿

Good afternoon, and welcome to Velo3D Third Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference call is being recorded. I'll now turn the call over to Mr. Bob Okunski, Vice President of Investor Relations at Velo3D Corporation. Thank you, sir. You may begin.

下午好，歡迎參加 Velo3D 2023 年第三季財報電話會議。 （操作員說明）提醒一下，今天的電話會議正在錄音。現在我將把電話轉給 Velo3D Corporation 投資者關係副總裁 Bob Okunski 先生。謝謝你，先生。你可以開始了。

Thanks, Alicia. I'd like to welcome everyone to our third quarter 2023 earnings conference call. On the call today we will start out with comments from Benny Buller, CEO of Velo3D, who will provide a summary of the quarter as well as an update on certain key strategic priorities for 2023. Following Benny's comments, Bernie Chung, our CFO, will then review our third quarter 2023 financial results and provide our guidance. As a reminder, a replay of this call will be available later today on the Investor Relations page of our website.

謝謝，艾莉西亞。歡迎大家參加我們的 2023 年第三季財報電話會議。在今天的電話會議上，我們將首先聽取Velo3D 執行長Benny Buller 的評論，他將提供本季度摘要以及2023 年某些關鍵策略優先事項的最新情況。在Benny 發表評論後，我們的財務長Bernie Chung 將接著回顧我們 2023 年第三季的財務表現並提供我們的指導。謹此提醒，今天晚些時候，我們網站的投資者關係頁面將提供本次電話會議的重播。

During today's call, we will make forward-looking statements that are subject to various risks and uncertainties that are described in the safe harbor slide of today's presentation, today's press release as well as our 2022 10-K and additional 2023 SEC filings. Please see those documents for additional information regarding those factors that may affect these forward-looking statements. Also, we will reference certain non-GAAP metrics during today's call. Please refer to the appendix of our presentation as well as our today's earnings press release for the appropriate GAAP to non-GAAP reconciliations.

在今天的電話會議中，我們將做出前瞻性聲明，這些聲明受到今天簡報的安全港幻燈片、今天的新聞稿以及我們的2022 年10-K 和其他2023 年SEC 文件中描述的各種風險和不確定性的影響。請參閱這些文件，以了解有關可能影響這些前瞻性陳述的因素的更多資​​訊。此外，我們將在今天的電話會議中參考某些非公認會計準則指標。請參閱我們簡報的附錄以及今天的收益新聞稿，以了解適當的 GAAP 與非 GAAP 調整表。

Finally, to enhance this call, we have also posted a set of PowerPoint slides, which we will reference during the call on the Events and Presentations page of our Investor Relations website. With that, I'd like to turn the call over to Benny Buller, CEO of Velo3D. Benny?

最後，為了增強本次電話會議的效果，我們也發布了一組 PowerPoint 投影片，我們將在電話會議期間在投資者關係網站的活動和簡報頁面上參考這些投影片。說到這裡，我想將電話轉給 Velo3D 執行長 Benny Buller。班尼？

Thanks, Bob. And I'd like to welcome everyone to our third quarter earnings call. Prior to starting our review of the quarter, I would like to provide some context for my upcoming remarks. As we have discussed many times, we firmly believe that we are just beginning to see how additive manufacturing is rapidly changing the way high-value metal parts are produced across many industries. While our ability to capitalize on this opportunity has driven our industry-leading growth over the last 2 years, we now realize that our focus on top line revenue has come at the expense of customer service profitability and cash flow. Essentially, we grew too fast.

謝謝，鮑伯。我歡迎大家參加我們的第三季財報電話會議。在開始回顧本季之前，我想為我即將發表的言論提供一些背景資訊。正如我們多次討論的那樣，我們堅信，我們才剛開始看到增材製造如何迅速改變許多行業高價值金屬零件的生產方式。雖然我們利用這一機會的能力推動了我們在過去兩年中領先業界的成長，但我們現在意識到，我們對營收收入的關注是以犧牲客戶服務獲利能力和現金流為代價的。本質上，我們成長得太快了。

Given the current conditions, we have made a strategic decision to focus our efforts on optimizing free cash flow before resuming our strong growth emphasis. As a result, last month, we initiated a company realignment to reduce costs to rebuild our bookings pipeline and recommit ourselves to ensuring our customers are successful. I'll provide greater detail on these topics later on in my remarks. We strongly believe that this strategic realignment will enable us to achieve sustainable profitability in 2024.

鑑於目前的情況，我們做出了一項策略決策，在恢復強勁成長之前，將重點放在優化自由現金流上。因此，上個月，我們啟動了公司重組，以降低成本，重建我們的預訂管道，並重新致力於確保我們的客戶成功。我將在稍後的發言中提供有關這些主題的更多詳細資訊。我們堅信，這項策略調整將使我們能夠在 2024 年實現可持續獲利。

With that in mind, I would like now to discuss the specifics of our third quarter. Please turn to Slide 3. As we highlighted last quarter, 1 of our key initiatives for the balance of the year was to show measurable progress on improving our free cash flow. Our successful efforts in this area were reflected in our Q3 results as we reduced our sequential free cash burn by more than 30% to $23 million. We expect further quarterly improvement through 2024, given ROE alignment.

考慮到這一點，我現在想討論第三季的具體情況。請參閱投影片 3。正如我們上季度所強調的那樣，我們今年剩餘時間的主要舉措之一是在改善自由現金流方面取得了可衡量的進展。我們在這一領域的成功努力反映在第三季的業績中，我們連續自由現金消耗減少了 30% 以上，達到 2,300 萬美元。鑑於 ROE 一致，我們預計到 2024 年季度業績將進一步改善。

In relation to revenue and bookings, we continue to see solid customer demand for the third quarter as revenue rose 26% year-over-year. However, revenue declined sequentially due to a single delayed shipment at the end of the quarter. Third quarter bookings were $11 million as we saw bookings delays with both new and existing customers. I'll provide greater color on this later on.

在營收和預訂方面，我們繼續看到第三季客戶需求強勁，營收年增 26%。然而，由於本季末的一次發貨延遲，收入環比下降。第三季的預訂量為 1,100 萬美元，因為我們發現新客戶和現有客戶的預訂都出現延遲。稍後我將對此提供更多的色彩。

As a result of our Q3 bookings, we are reducing our fiscal year 2023 revenue guidance to $91 million to $103 million. As I mentioned at the beginning of this call, we have initiated a strategic realignment that we believe is critical for us to achieve our free cash flow and profitability goals in 2024. Some of the key initiatives include: A 40% reduction in cash expenses through the first quarter of next year; the implementation of a new go-to-market strategy to rebuild our bookings pipeline for 2024 deliveries. As a result, we expect the fourth quarter to be a transition quarter as we implement our new initiatives. Given that we expect to see the full benefits of these programs in the first quarter of 2024, we believe we will be in a much stronger position in time 2024 to drive free cash flow and long-term profitability.

由於第三季的預訂，我們將 2023 財年的營收指引下調至 9,100 萬美元至 1.03 億美元。正如我在本次電話會議開始時提到的，我們已經啟動了戰略調整，我們認為這對於我們在 2024 年實現自由現金流和盈利目標至關重要。一些關鍵舉措包括：明年第一季；實施新的上市策略，重建我們 2024 年交付的預訂管道。因此，我們預計第四季將成為我們實施新措施的過渡季度。鑑於我們預計將在 2024 年第一季看到這些計劃的全部好處，我們相信到 2024 年，我們將處於更有利的地位，以推動自由現金流和長期盈利能力。

I would now like to highlight our key for strategic initiatives for the fourth quarter. Please turn to Slide 4. First, we have embarked on a significant expense reduction program across the entire company in order to align our cost structure with current business conditions. Second, increased focus on optimizing our inventory and reducing our working capital needs. As a result, we have posted all new inventory procurement. It is important to mention that we have significant inventory on hand, allowing us to supply all the systems we believe we will need to shape in Q4 and Q1. However, we will be much more cautious procuring inventory for production going forward with purchases based on backlog growth instead of forecasts.

我現在想強調我們第四季策略舉措的關鍵。請參閱投影片 4。首先，我們已在整個公司範圍內實施了一項重大費用削減計劃，以使我們的成本結構與當前的業務狀況保持一致。其次，更重視優化庫存和減少營運資金需求。因此，我們已經發布了所有新的庫存採購。值得一提的是，我們手頭上有大量庫存，使我們能夠供應我們認為在第四季度和第一季需要塑造的所有系統。然而，我們將更加謹慎地採購用於生產的庫存，並根據積壓訂單增長而不是預測進行採購。

Third, implementing programs to materially improve customer satisfaction and system performance, which have direct impact on increasing existing customer demand. Finally, we have implemented a number of initiatives to improve our sales execution that we believe will be vital to rebuilding our bookings pipeline.

第三，實施大幅提高客戶滿意度和系統效能的計劃，這對增加現有客戶需求有直接影響。最後，我們實施了一系列措施來改善我們的銷售執行力，我們相信這些措施對於重建我們的預訂管道至關重要。

Let me now provide some specifics around each initiative. Please turn to Slide 5. In relation to reducing expenditures, we expect to lower our total quarterly cash spend by 40% in Q1 '24 compared to Q3 '23. We will accomplish this by lowering cash OpEx and fixed costs. Primary drivers of this reduction include our recently announced 20% head count reduction as well as cost savings associated with our facility consolidation that should be completed by the end of this year. For inventory and working capital spend, we have now paused the purchase of all new inventory as we are shifting to procurement based on current backlog rather than a forecast-based production approach. We will also be conducting a comprehensive inventory review by the end of the year to help us identify any additional changes we need to implement to maximize cash.

現在讓我提供每項舉措的一些細節。請參閱投影片 5。關於減少支出，我們預計 24 年第一季的季度現金支出總額將比 23 年第三季減少 40%。我們將透過降低現金營運支出和固定成本來實現這一目標。這項裁員的主要驅動因素包括我們最近宣布的員工人數減少 20% 以及與我們的設施整合相關的成本節約（該工作將於今年年底完成）。對於庫存和營運資本支出，我們現在已暫停購買所有新庫存，因為我們正在轉向根據當前積壓訂單而不是基於預測的生產方法進行採購。我們還將在年底前進行全面的庫存審查，以幫助我們確定需要實施的任何其他改變，以最大限度地提高現金。

I want to reiterate again that this strategy will not affect our ability to ship products in Q4 and Q1. However, we will procure additional material for Q2 and beyond only once we will have clear buildup of backlog and a reduction in inventory requiring us to procure more material to meet the bookings and backlog demand for H2 '24. Additional programs we have implemented include an ROI-based evaluation of new research and development projects to prioritize our spend to only those projects that meet a certain internal return threshold. Finally, we are optimizing all of our corporate G&A expenses as we look to prudently manage our discretionary spending levels.

我想再次重申，這項策略不會影響我們第四季和第一季的產品出貨能力。然而，只有當我們有明顯的積壓積壓和庫存減少，要求我們採購更多材料以滿足 24 年下半年的預訂和積壓需求時，我們才會為第二季度及以後採購額外的材料。我們實施的其他計劃包括對新研發項目進行基於投資回報率的評估，以便將我們的支出優先考慮到那些滿足特定內部回報閾值的項目。最後，我們正在優化所有企業一般管理費用，因為我們希望謹慎管理我們的可自由支配支出水準。

Next, I'd like to address 1 of the most important initiatives ensuring customer success. This success is critical as it is the primary driver of follow-on orders from existing customers. Please turn to Slide 6. First, some backdrop. We saw significant growth in 2022 as revenue tripled and we more than doubled our customer base. This reflected strong customer demand for our systems as we successfully launched 3 new products in the Sapphire family during the year. However, this rapid growth affected our ability to properly support our base as our customer support organization didn't expand quickly enough to keep pace with our significant installed rep.

接下來，我想談談確保客戶成功的最重要舉措之一。這項成功至關重要，因為它是現有客戶後續訂單的主要驅動力。請翻到幻燈片 6。首先，一些背景。 2022 年，我們實現了顯著成長，收入增加了兩倍，客戶群增加了一倍以上。這反映了客戶對我們系統的強烈需求，我們年內成功推出了 Sapphire 系列的 3 款新產品。然而，這種快速成長影響了我們正確支援我們的基礎的能力，因為我們的客戶支援組織的擴張速度不夠快，無法跟上我們重要的安裝代表的步伐。

We were also impacted by insufficient field service training on the newly released products. This led to issues in the field taking longer than expected to resolve. As a result, we saw a significant drop in customer satisfaction, which led to lower-than-anticipated existing customer demand in bookings in 2023. We have already made multiple changes in our customer support organization to address this issue, and we are seeing early success. For example, we are reallocating resources to grow and strengthen our customer support organization, including adding additional head count and forming a dedicated issue resolution teams to resolve issues quickly. We have also increased investment in our new product training programs to ensure our field service team is up to date on all recent changes.

我們也受到新發布產品現場服務培訓不足的影響。這導致該領域的問題需要比預期更長的時間才能解決。結果，我們看到客戶滿意度大幅下降，導致 2023 年現有客戶預訂需求低於預期。我們已經對客戶支援組織進行了多項更改來解決此問題，並且我們很快就會看到成功。例如，我們正在重新分配資源來發展和加強我們的客戶支援組織，包括增加人員數量和組建專門的問題解決團隊來快速解決問題。我們還增加了對新產品培訓計劃的投資，以確保我們的現場服務團隊了解最新的所有變化。

Finally, we have adjusted our workflows to drive a closer partnership between engineering and our customer support teams in order to quickly identify and address transitions. Our success depends on our customers' success. We are already seeing progress as a result of these changes. For example, in the last 2 months, we have seen a step function improvement in the performance of our new products in the field. Additionally, customer satisfaction is increasing, and we are starting to see a turnaround in demand for systems from existing customers. I can confidently report that our determined actions are yielding results. We will remain focused on ensuring the success of our customers as we look to improve the efficiency and sustainability of our systems to meet the growing means of our customers.

最後，我們調整了工作流程，以推動工程團隊和客戶支援團隊之間建立更緊密的合作關係，以便快速識別和解決過渡問題。我們的成功取決於客戶的成功。我們已經看到這些變化帶來的進展。例如，在過去的兩個月裡，我們看到我們的新產品在該領域的性能得到了階躍功能的改進。此外，客戶滿意度不斷提高，我們開始看到現有客戶對系統的需求出現改善。我可以自信地報告說，我們堅定的行動正在取得成果。我們將繼續專注於確保客戶的成功，同時我們希望提高系統的效率和永續性，以滿足客戶不斷增長的需求。

Moving on to Slide 7. I'd like to highlight what we are doing to improve our bookings success that has lagged forecast over the last 3 quarters. As I just discussed, our bookings growth has been impacted by slower-than-expected existing customer sales this year. Additionally, bookings growth was affected by weaker new customer acquisitions over the same period. We believe the slower pace of new customer bookings is due to a number of factors, including the lack of an effective new customer sales process as well as proof of concept execution. While these issues were offset given our strong existing customer demand last year, they became more pronounced as repeat business declined in 2023. As a result, we made the strategic decision to restructure our sales organization to significantly improve execution and increased bookings. This started with the hiring of Michelle Sidwell as our new EVP of Sales in our effort to build a world-class sales organization.

轉到投影片 7。我想強調我們正在採取哪些措施來提高預訂成功率，而過去 3 個季度的預訂成功率落後於預測。正如我剛才所討論的，我們的預訂成長受到了今年現有客戶銷售低於預期的影響。此外，預訂量成長也受到同期新客戶獲取量疲軟的影響。我們認為，新客戶預訂速度放緩是由於多種因素造成的，包括缺乏有效的新客戶銷售流程以及概念驗證執行。儘管去年我們現有客戶需求強勁，這些問題得到了抵消，但隨著2023 年回頭客業務的下降，這些問題變得更加明顯。因此，我們做出了重組銷售組織的策略決策，以顯著提高執行力並增加預訂量。我們首先聘請米歇爾·西德韋爾 (Michelle Sidwell) 擔任新任銷售執行副總裁，努力打造世界一流的銷售組織。

Michelle brings a wealth of sales experience to the company and has already instituted a new disciplined sales process that is already showing early success. A key part of this process is to refocus our team on markets where we have had significant success in the past. These sectors include space, where we are the leading AM suppliers to many of the top launch companies. Additionally, the opportunity in defense is significant and the addition of the 3 new defense customers earlier this year reflects this potential.

米歇爾為公司帶來了豐富的銷售經驗，並已經制定了新的嚴格的銷售流程，並且已經取得了早期的成功。這個過程的關鍵部分是讓我們的團隊重新專注於我們過去取得巨大成功的市場。這些領域包括太空，我們是許多頂級發射公司的領先積層製造供應商。此外，國防領域的機會巨大，今年稍早新增的 3 個國防客戶也反映了這種潛力。

Finally, leveraging our growing footprint in the aerospace sector. We believe these are the right sectors to be addressing given our experience and significant customer footprint. We are also developing partnerships to expand our reach in certain international markets, as well as potentially partnering to develop new materials and applications. Finally, we are working closely with our customers and internal teams to refine and clarify our value proposition to drive improved sales economics and productivity.

最後，利用我們在航空航太領域不斷成長的足跡。鑑於我們的經驗和重要的客戶足跡，我們相信這些是需要解決的正確領域。我們也正在發展合作夥伴關係，以擴大我們在某些​​國際市場的影響力，並可能合作開發新材料和應用。最後，我們正在與客戶和內部團隊密切合作，完善和闡明我們的價值主張，以推動提高銷售經濟效益和生產力。

In summary, we are pleased with our progress to date. We expect that by combining these sales initiatives with our customer satisfaction focus, we will start to see a rebound in our customers' bookings.

總之，我們對迄今為止的進展感到滿意。我們預計，透過將這些銷售措施與我們對客戶滿意度的關注相結合，我們將開始看到客戶預訂量的反彈。

On Slide 8, we are providing a brief summary of our strategic initiatives that we believe will drive free cash flow and sustainable profitability in 2024. We expect Q4 to be a transition quarter as we execute on our realignment initiatives. Our business is now rightsized for current conditions and our cost reduction programs will result in quarterly cash savings of 40% starting in the first quarter of next year. We have also adjusted our procurement and manufacturing plan to maximize free cash flow. Additionally, our investments in improving our customer service are already showing success, which will drive growth in existing customer sales. And finally, our new go-to-market strategy, disciplined sales process and focus on our strong markets will provide a strong foundation to rebuild our backlog and pipeline for 2024 success.

在投影片 8 中，我們簡要總結了我們的策略性舉措，我們相信這些舉措將在 2024 年推動自由現金流和可持續獲利能力。我們預計第四季將成為我們執行調整措施的過渡季度。我們的業務現已根據當前情況進行了調整，我們的成本削減計劃將從明年第一季開始節省 40% 的季度現金。我們還調整了採購和製造計劃，以最大限度地提高自由現金流。此外，我們在改善客戶服務方面的投資已經取得了成功，這將推動現有客戶銷售的成長。最後，我們新的上市策略、嚴格的銷售流程以及對強大市場的關注將為重建我們的積壓訂單和管道以在 2024 年取得成功奠定堅實的基礎。

In closing, we remain excited about our future opportunity and believe our realignment puts us in a much stronger position to achieve our profitability goal next year.

最後，我們對未來的機會仍然感到興奮，並相信我們的重組將使我們處於更有利的地位，以實現明年的獲利目標。

With that, I would like to turn the call over to Bernie to discuss our financials and provide our guidance. As we announced, Bernie was appointed CFO last quarter and would like to -- and I would like to welcome him to the team. Given his operational and financial experience, he is the right person to help lead us through the next phase of our success. Bernie?

因此，我想將電話轉給伯尼，討論我們的財務狀況並提供我們的指導。正如我們宣布的那樣，伯尼上季度被任命為首席財務官，我想歡迎他加入團隊。鑑於他的營運和財務經驗，他是幫助帶領我們邁向下一階段成功的合適人選。伯尼？

Thanks, Benny. Welcome, everyone, before getting started. I want to say how excited I am to be joining the executive team. I see a significant opportunity in front of us and looking forward to working with the team to bring about the changes needed to really showcase Velo3D's value.

謝謝，班尼。歡迎大家，在開始之前。我想說的是，我對加入執行團隊感到多麼興奮。我看到我們面前有一個重要的機會，並期待與團隊合作，帶來真正展示 Velo3D 價值所需的改變。

Moving on to our quarterly financial performance, please turn to Slide 10. Third quarter revenue of $24.1 million was slightly below our Q3 guidance range due primarily to a delayed system shipment. Compared to Q2, Q3 year sale revenues declined slightly due to the shipment delay and lower transfer pricing resulting from mix.

接下來是我們的季度財務業績，請參閱投影片 10。第三季營收為 2,410 萬美元，略低於我們第三季的指導範圍，這主要是由於系統出貨延遲。與第二季相比，由於出貨延遲以及混合導致的轉讓定價較低，第三季銷售收入略有下降。

Transaction pricing. Recurring and service revenue for the quarter rose sequentially to $2.4 million. On a year-over-year basis, year of sale revenue was up 31% from $16.5 million, and recurring and service revenue was in line at $2.4 million. Gross margin for the quarter was 7.2% and down sequentially. This decline was driven by reduced system volumes as well as a lower average selling price due to product mix and higher inventory adjustments. We expect gross margin to recover in Q4 with further quarterly expansion through the end of 2024. This improvement will be driven by an expected improvement in ASPs as we will benefit from a shift back in our product mix to a higher percentage of higher-priced Sapphire XC shipments, improved efficiency in our manufacturing operations, and a reduction in bill material costs as we receive more materials under new long-term lower cost supply contracts. We will also benefit from increased volumes, and the investments we have made will drive labor and production efficiency. We expect labor overhead and other factory costs to decline as a percentage of revenue in 2024.

交易定價。該季度的經常性收入和服務收入較上季成長至 240 萬美元。與去年同期相比，年度銷售收入從 1,650 萬美元成長了 31%，經常性收入和服務收入維持在 240 萬美元。本季毛利率為 7.2%，較上一季下降。這一下降的原因是系統銷售減少以及產品組合和庫存調整增加導致的平均售價降低。我們預計毛利率將在第四季度恢復，並在 2024 年底實現季度擴張。這一改善將由平均售價的預期改善推動，因為我們將受益於產品組合轉向更高比例的高價藍寶石XC 發貨，提高了我們製造業務的效率，並且隨著我們根據新的長期低成本供應合約收到更多材料，帳單材料成本降低。我們也將受益於產量的增加，我們所做的投資將提高勞動力和生產效率。我們預計 2024 年勞動力管理費用和其他工廠成本佔收入的比例將下降。

Non-GAAP operating expenses for the quarter, which excludes stock-based compensation, were $20 million, down approximately 10% sequentially. The decrease in operating expenses was primarily driven by a $2.6 million reduction in research and development as we rationalized a number of new product development programs. Specifically on this basis, R&D expenses declined to $9.8 million. G&A rose $1 million, primarily related to our realignment and sales and marketing was stable. As Benny mentioned, we expect overall costs to decline 40% through Q1 '24.

本季非 GAAP 營運費用（不含股票薪酬）為 2,000 萬美元，較上一季下降約 10%。營運費用的減少主要是因為我們對一些新產品開發計畫進行了合理化，導致研發費用減少了 260 萬美元。在此基礎上，研發費用下降至 980 萬美元。 G&A 增加了 100 萬美元，主要與我們的調整以及銷售和行銷穩定有關。正如 Benny 所提到的，我們預計到 2024 年第一季度，整體成本將下降 40%。

GAAP net loss for the quarter was $17.1 million, including a noncash gain of approximately $8.7 million related to changes in the fair value of our warrants, earn-out and debt derivative liabilities. On a non-GAAP basis, which excludes this loss in stock-based compensation expense, net loss was $18.9 million. And adjusted EBITDA for the quarter, excluding the same items, was a loss of $16.3 million. Finally, as Benny mentioned, bookings for the quarter was $11 million.

本季 GAAP 淨虧損為 1,710 萬美元，包括與我們的認股權證、獲利和債務衍生負債公允價值變動相關的約 870 萬美元非現金收益。以非公認會計準則計算，不包括股票補償費用損失，淨虧損為 1,890 萬美元。該季度調整後的 EBITDA（不包括相同項目）為虧損 1,630 萬美元。最後，正如 Benny 所提到的，該季度的預訂量為 1,100 萬美元。

We have instituted a number of initiatives to drive free cash flow improvement. I wanted to briefly discuss our recent success in this area. Please turn to Slide 11. This chart breaks out our cost structure by operating costs as well as fixed manufacturing and service costs. As you can see, we have made significant progress in improving free cash flow as we materially reduced our overall cost in Q3. This improvement was primarily driven by lower operating costs, which declined by more than 30% sequentially as we saw the initial benefits of our efficiency initiatives that we implemented over the last 6 months.

我們制定了多項措施來推動自由現金流的改善。我想簡要討論一下我們最近在這一領域取得的成功。請參閱投影片 11。此圖表按營運成本以及固定製造和服務成本細分了我們的成本結構。正如您所看到的，我們在改善自由現金流方面取得了重大進展，因為我們在第三季大幅降低了整體成本。這項改善主要是由於營運成本降低所致，營運成本較上月下降了 30% 以上，因為我們看到了過去 6 個月實施的效率措施的初步效益。

Looking forward, we expect a similar decline on a percentage basis in the fourth quarter, given our realignment followed by additional savings in the first half of 2024. As a result, we believe we will achieve free cash flow breakeven, excluding financings in the second quarter of next year. Finally, we exited the quarter with $72 million in cash and investments. Given our free cash flow improvement success to date, we firmly believe we have more than enough liquidity to achieve our profitability goal in 2024.

展望未來，考慮到我們的調整以及2024 年上半年的額外節省，我們預計第四季度的百分比也會出現類似下降。因此，我們相信我們將實現自由現金流盈虧平衡（不包括第二季度的融資）明年一個季度。最後，我們在本季結束時獲得了 7,200 萬美元的現金和投資。鑑於迄今為止我們自由現金流改善的成功，我們堅信我們有足夠的流動性來實現 2024 年的獲利目標。

Before turning to guidance, I would like to review the onetime costs associated with our realignment strategy as well as additional cash -- Q4 cash flow highlights. Please turn to Slide 12. We now expect severance costs related to our recent workforce reduction to be in the range of $1 million to $2 million, down slightly from our previous estimates. As Benny mentioned, we are in the process of consolidating our office and manufacturing footprint into a single facility at our headquarters in Fremont, California. Completion is expected by the end of the year. As a result, we expect to incur a noncash charge in the range of $2 million to $3 million. We will also begin our annual fiscal inventory review this quarter as well as reviewing our inventory valuation methodology.

在轉向指導之前，我想回顧一下與我們的調整策略以及額外現金相關的一次性成本——第四季度現金流亮點。請參閱投影片 12。我們目前預計與近期裁員相關的遣散費將在 100 萬至 200 萬美元之間，略低於我們先前的估計。正如班尼所提到的，我們正在將我們的辦公室和製造基地整合到加州弗里蒙特總部的一個工廠中。預計今年底完工。因此，我們預計將產生 200 萬至 300 萬美元的非現金費用。我們也將在本季開始年度財務庫存審查，並審查我們的庫存估值方法。

Additional Q4 cash flow highlights include a onetime cash inflow in the range of $3 million to $6 million resulting from a lease termination as a customer has decided to buy out its existing lease. Additionally, earlier this year, we announced the partnership with PhysicsX, which included a seed investment. As a result of their recent funding round, we elected to redeem our $3 million investment while maintaining our partnership. Finally, we expect fourth quarter cash usage in the range of $15 million to $18 million, including onetime payments for severance and facility consolidations.

第四季現金流的其他亮點包括由於客戶決定買斷現有租賃而終止租賃而產生的一次性現金流入 300 萬至 600 萬美元。此外，今年早些時候，我們宣布與PhysicsX 建立合作夥伴關係，其中包括種子投資。由於他們最近一輪融資，我們選擇贖回 300 萬美元的投資，同時維持我們的合作關係。最後，我們預計第四季現金使用量將在 1,500 萬美元至 1,800 萬美元之間，包括一次性支付遣散費和設施整合費用。

I'd now like to provide our outlook for Q4 and fiscal year 2023. Please turn to Slide 13. As we mentioned, we expect Q4 to be a transition quarter as we execute on our realignment initiatives. We expect fourth quarter 2023 revenue to be in the range of $15 million to $27 million and gross margin to be in the range of 5% to 17% excluding nonrecurring items. Non-GAAP OpEx will be in the range of $15 million to $18 million, down from $20 million in Q3 as we start to see the initial benefits from our realignment. Our updated full year 2023 guidance is as follows: we now expect revenue to be in the range of $91 million to $103 million. We expect gross margin for the year to be in the range of 9% to 12%. Non-GAAP operating expenses in the range of $78 million to $81 million.

我現在想提供我們對第四季度和 2023 財年的展望。請參閱幻燈片 13。正如我們所提到的，我們預計第四季度將是一個過渡季度，因為我們將執行我們的調整計劃。我們預計 2023 年第四季的營收將在 1,500 萬美元至 2,700 萬美元之間，毛利率將在 5% 至 17% 之間（不包括非經常性項目）。隨著我們開始看到重組帶來的初步效益，非 GAAP 營運支出將從第三季的 2,000 萬美元下降到 1,500 萬美元至 1,800 萬美元。我們更新後的 2023 年全年指引如下：我們現在預計收入將在 9,100 萬美元至 1.03 億美元之間。我們預計全年毛利率在 9%至 12%之間。非 GAAP 營運費用在 7,800 萬美元至 8,100 萬美元之間。

In conclusion, we are focused on executing our realignment strategy with a clear path to profitability through improvements in operating efficiency, margins and cash flow. Our strong balance sheet and improving cash flow gives us significant runway to achieve sustainable profitability in 2024.

總之，我們專注於執行我們的重組策略，透過提高營運效率、利潤和現金流來制定清晰的獲利途徑。我們強勁的資產負債表和不斷改善的現金流為我們在 2024 年實現可持續盈利提供了重要途徑。

With that, I'd now like to turn the call over for questions. Operator?

至此，我現在想轉接電話詢問問題。操作員？

(Operator Instructions) Our first question comes from the line of Brian Drab with William Blair.

（操作員說明）我們的第一個問題來自 Brian Drab 和 William Blair 的線路。

Regarding the macro backdrop and the financing challenges that your customers are probably having. Can you talk about how much of an impact is that having on sales and the extended sales cycles that you're seeing versus, I guess, you're pointing out some execution issues and I need to change the go-to-market strategy. And the point I guess I'm getting at is just how -- can you give us more confidence that changes that you're making in this environment will actually lead to this improvement in the pipeline?

關於宏觀背景和您的客戶可能面臨的融資挑戰。您能否談談這對銷售和您所看到的延長的銷售週期有多大影響，我想您指出了一些執行問題，我需要改變進入市場的策略。我想我要表達的重點是——您能否讓我們更有信心，您在這種環境中所做的改變實際上會帶來管道的改進？

So it's the easiest excuses in the world for a CEO to blame the economy for what's happening. But I actually don't see the signs of that, right? So when we look at the vast majority of our customers and the customers we are working with, they are generally well financed. And this is not a driver -- a major driver in kind of procurement decisions or delays or capital budgets. When we buy -- when we sell, sorry, to contract manufacturers, it's a slightly different story with contract manufacturers. Those general have to finance the systems in general, many of them. And those are a little more or, I would say, cautious and we wanted to see demand before they make decisions.

因此，對執行長來說，將發生的事情歸咎於經濟是世界上最簡單的藉口。但我實際上沒有看到任何跡象，對嗎？因此，當我們觀察絕大多數客戶以及與我們合作的客戶時，他們通常資金充足。這不是一個驅動因素——採購決策或延遲或資本預算的主要驅動因素。抱歉，當我們購買時——當我們出售給合約製造商時，情況與合約製造商略有不同。那些將軍必須為整個系統提供資金，其中有很多。這些都比較謹慎，或者我想說的是，我們希望在做出決定之前看到需求。

So I would say that under contract manufacturers, there's clearly more conservatism right now. But in the big picture, I don't think that that's a driver -- kind of a dominant driver in our dynamics right now. We don't see that as the driver in the deals we are talking and the customers we are discussing and the opportunities we are seeing. That's not the #1 driver.

所以我想說，在合約製造商的領導下，現在顯然更加保守。但從大局來看，我不認為這是一個驅動因素——目前我們動態中的一種主導驅動因素。我們並不認為這是我們正在談論的交易、我們正在討論的客戶以及我們看到的機會的驅動因素。那不是第一名司機。

Okay. And is the -- I'm trying to sort through the comments that you made regarding the go-to-market and how you're improving that. But is part of it that customers -- like existing customers needed more help and support before they'd be okay buying the second machine? Is that part of the dynamic?

好的。我正在嘗試整理您關於進入市場的評論以及您如何改進這一點。但是，客戶（例如現有客戶）是否需要更多幫助和支援才能購買第二台機器？這是動態的一部分嗎？

Yes. Some of them is the second machine, some of them is the fourth machine, right? In general, we have seen in the last year, a pretty sharp drop in the performance of our systems in a lot of customers. And we basically did a pretty serious shakeup in how we support customers. As we saw the decline, if you recall, historically, about 50% of the revenue, give or take, was coming from existing customers. We have seen a pretty sharp decline in that in the last few quarters, and this was really strictly related to customer dissatisfaction because we performed poorly there, a lot of systems took tremendously longer to install than we planned and the customer plan a lot of systems, they are uptime and yield was lower than we thought was possible -- that we demonstrated was possible in other customers. So we have to take it very seriously and kind of took a lot of actions to improve how we execute in the field.

是的。有的是二號機，有的是四號機，對吧？總的來說，我們在去年看到許多客戶的系統效能急劇下降。我們基本上對支援客戶的方式進行了相當大的調整。正如我們所看到的下降一樣，如果您還記得，從歷史上看，大約 50% 的收入（無論給予或接受）來自現有客戶。在過去的幾個季度中，我們看到這一數字大幅下降，這確實與客戶的不滿密切相關，因為我們在那裡表現不佳，許多系統的安裝時間比我們計劃的要長得多，而且客戶規劃了許多系統，它們的正常運作時間和產量比我們想像的要低——我們在其他客戶中證明了這是可能的。因此，我們必須非常認真地對待它，並採取了許多行動來改進我們在該領域的執行方式。

And we have a lot of indicators that we already start to show us after about, I would say, 6 weeks or so that we have been doing this -- that this is showing very concrete fruit. So I'm very optimistic that -- and we are always starting to see customers that we're very disappointed by us earlier coming back and having discussions about procurement of more missions. So I can see this highly standing on this.

我們有很多指標，我想說，在我們這樣做大約六週後，我們已經開始向我們展示——這正在顯示出非常具體的結果。因此，我非常樂觀地認為，我們總是開始看到客戶對我們早些時候回來討論採購更多任務感到非常失望。所以我可以看到這一點的高度重視。

Brian, this is Bernie. Let me just add a little more color to the go-to-market initiatives because I think that customer experience is definitely very important to us. But in addition to us improving our customer experience, and that would be for the [mix] sale -- multiple systems for those customers -- the recent addition of Michelle said, well, she bring a very [diligent] approach back to our sales force. And 1 thing, too, is we're going to focus on our partnerships, so we signed recently with SPOT to really help us expand our networking for sales. So this is kind of a big part of the sales growth that we're going to bring back to our pipeline, right?

布萊恩，這是伯尼。讓我為上市計畫添加更多色彩，因為我認為客戶體驗對我們來說絕對非常重要。但除了我們改善客戶體驗之外，這將是為了[混合]銷售——為這些客戶提供多個系統——最近加入的米歇爾說，她為我們的銷售帶來了一種非常[勤奮]的方法力量。還有一件事是我們將專注於我們的合作夥伴關係，因此我們最近與 SPOT 簽署了協議，以真正幫助我們擴展我們的銷售網絡。所以這是我們將帶回我們的銷售管道的銷售成長的很大一部分，對吧？

So with these opportunities out there, especially in defense, and we're doing a lot more market research to understand where those opportunities are going -- and we've kind of realigned our teams to focus on those opportunities.

因此，有了這些機會，特別是在國防領域，我們正在做更多的市場研究，以了解這些機會的去向——我們已經重新調整了我們的團隊，以專注於這些機會。

Okay. And then just 1 follow-up further on Benny, what you're saying about the performance of the machines. I just want to make sure I'm clear. It's really not -- my impression is it's not an issue with -- like a core issue or a fundamental issue with the technology, it's more the issue is setting up the machine, getting it stabilized at the customer site.

好的。然後，對班尼進行進一步的 1 次跟進，以了解您所說的有關機器性能的情況。我只是想確保我說清楚了。這實際上不是——我的印像是這不是一個問題——就像技術的核心問題或基本問題一樣，問題更多的是設定機器，讓它在客戶現場保持穩定。

Yes, correct. And the way we actually identified the core things that we wants to focus on is the time that it takes us to resolve issues that happen in the field. And this time has escalated a lot. It grew very steeply in the last year. And we are -- we took actions to dramatically reduce that. And I thought -- I kind of touched upon this a little bit in my presentation. There is a lot of new products that we put together. We expanded a lot of the installed base, both of customers and systems while we didn't hire enough customer support people and we didn't have the opportunity to train them on the new products. So a lot of the repairs, a lot of the troubleshooting when things were happening.

是，對的。我們實際上確定我們想要關注的核心問題的方式是我們解決該領域發生的問題所需的時間。而且這次已經升級很多了。去年它成長非常迅速。我們採取了行動來大幅減少這種情況。我想——我在演講中稍微談到了這一點。我們整合了許多新產品。我們擴大了許多客戶和系統的安裝基礎，但我們沒有聘請足夠的客戶支援人員，也沒有機會對他們進行新產品培訓。因此，當事情發生時，需要進行大量的維修和故障排除。

We are just taking too long and sometimes mistakes were made in the repair, and that would prolong the time that it takes to bring the system back and that applies both to when the system is shipping, right? And the initial installation as well as if something happens after installation, it just was taking too long to fix and that is where we see the dramatic improvement. And that's kind of where we identified as we think that where we can make the biggest impact because we have seen with customers and systems that were maintained properly and were operated properly, very good results and identical systems scattered around -- between other customers performed much, much poorer.

我們只是花了太長時間，有時在修復過程中出現了錯誤，這會延長恢復系統所需的時間，這也適用於系統發貨時，對嗎？初始安裝以及安裝後發生的情況，修復起來都需要很長時間，而這正是我們看到顯著改進的地方。這就是我們認為我們可以產生最大影響的地方，因為我們已經看到，客戶和系統得到正確的維護和正確的操作，非常好的結果，並且分散在其他客戶之間的相同系統表現得很好，更窮了。

And we have seen in the last few weeks that when we properly maintain them, when we properly brought the knowledge to fix them, they started to transform fantastic. So yes, this is not a product problem. It is, I would say, kind of an organizational commitment to fixing issues quickly in the field.

在過去的幾周里，我們已經看到，當我們正確維護它們時，當我們正確地運用知識來修復它們時，它們開始發生奇妙的變化。所以是的，這不是產品問題。我想說，這是一種在現場快速解決問題的組織承諾。

Our next question comes from Jim Ricchiuti with Needham & Company.

我們的下一個問題來自 Needham & Company 的 Jim Ricchiuti。

This is actually Chris Grenga on for Jim. You noted the sequential mix shift, and I'm just curious what visibility you have into that -- that mix shifting back towards more XC machines going forward and what kind of confidence you have around the XC becoming a larger part of the mix in the quarters ahead?

這實際上是克里斯·格倫加 (Chris Grenga) 替吉姆 (Jim) 配音的。你注意到了順序混合轉變，我只是好奇你對此有什麼看法——混合轉向未來更多的 XC 機器，以及你對 XC 成為混合中更重要的一部分有什麼樣的信心未來幾個季度？

Yes. So we have partial confidence in that, right? The general trend we have seen is that the Sapphire XC on newer systems becoming a dominant part of our products. When we see a lot of the opportunities we are engaged now the XCs dominating our opportunity space. But there is also demand for Sapphire and until you have solid bookings. It's difficult to predict how it's going to be. So I wouldn't necessarily overstate our confidence on the mix. The mix could be different. We do see long term that the Sapphire XC is selling more.

是的。所以我們對此有一定的信心，對嗎？我們看到的總體趨勢是較新系統上的藍寶石 XC 成為我們產品的主導部分。當我們看到很多機會時，我們現在就參與其中，XC 主導了我們的機會空間。但對藍寶石也有需求，直到您有足夠的預訂為止。很難預測事情會怎樣。所以我不一定會誇大我們對混合的信心。混合可能會有所不同。從長遠來看，我們確實看到藍寶石 XC 的銷量會更高。

I do want to mention something because we didn't -- it wasn't probably super clear from that, but some of the systems that we sold last quarter were used systems at the discounted prices. So because they were used systems, they have pretty old systems that were used. So that was 1 of the reasons for the lower gross margin, generally Sapphire systems, even though they are lower price, they actually have pretty good gross margin.

我確實想提一件事，因為我們沒有——這可能不是很清楚，但我們上季度銷售的一些系統是以折扣價使用的系統。因為他們是二手系統，所以他們使用的系統相當舊。所以這是毛利率較低的原因之一，一般來說藍寶石系統，雖然價格較低，但實際上毛利率還是不錯的。

So the mix is not necessarily the driving issue. The driving issue was that volume was generally lower. And then the adjustments in the inventory are -- contributed to the cost. We can -- as you can understand, if you take the fixed cost of production, the fixed COGS and you amortize that over less systems that affects your gross margin in a negative way.

因此，混合不一定是驅動問題。最主要的問題是成交量普遍較低。庫存的調整也會影響成本。我們可以—如您所理解的，如果您採用固定生產成本、固定銷貨成本，並透過較少的系統來攤銷，這會對您的毛利率產生負面影響。

Got it. And with the go-to-market realignment you had mentioned the end markets that you intend to double down and focus on, to the extent you could, could you elaborate a little bit on the demand environment for each of the end markets? And maybe what drivers you're seeing in terms of what drivers are creating more urgency for customers to adopt this technology, use these machines and also maybe discuss the demand environment by geography, what you're seeing in North America versus Europe?

知道了。在進入市場的調整中，您提到了您打算在可能的範圍內加倍努力和關注的終端市場，您能否詳細說明一下每個終端市場的需求環境？也許您看到了哪些驅動因素，哪些驅動因素讓客戶更迫切地採用這項技術、使用這些機器，也許還可以討論按地理位置劃分的需求環境，您在北美和歐洲看到了什麼？

Yes. So we still operate vastly mostly in North America, right? So our footprint in North America is much, much stronger in most of the business we are driving is still coming from North America. So a lot of that is kind of extremely North America tilted what we are seeing. And so, space and launch programs, specifically launch and specifically turbo machinery and rocket engines is what's driving a lot of our demand in space. And then engines and new engine components in hypersonics is 1 of the main drivers for our demand in defense. These are the 2 most [all-best] specific that I can mention. And the ability to produce high-quality parts with tremendous complexity very quickly at very large sizes and with a lot of details. That's really what allows -- what enables our customers in their programs and that what drives the demand for those.

是的。所以我們的業務大多仍集中在北美，對吧？因此，我們在北美的足跡要強大得多，我們推動的大部分業務仍然來自北美。因此，我們所看到的情況在很大程度上是與北美極度傾斜的。因此，太空和發射計劃，特別是發射，特別是渦輪機械和火箭發動機，推動了我們對太空的大量需求。高超音速引擎和新引擎零件是我們國防需求的主要驅動力之一。這是我能提到的最[所有最好]的兩個。並且能夠非常快速地生產尺寸非常大且具有大量細節的高品質零件。這才是真正讓我們的客戶能夠參與他們的計劃以及推動對這些計劃的需求的原因。

Got it. And do you have any insight into the utilization trends of the installed base? And how -- I guess, how that's evolved in recent quarters?

知道了。您對已安裝基礎的使用率趨勢有什麼了解嗎？我想，最近幾季是如何演變的？

I do, but I will not share that. As you can imagine, we are a public company, but we are operating in an environment with competitors.

我願意，但我不會分享。正如您可以想像的那樣，我們是一家上市公司，但我們是在一個有競爭對手的環境中運營的。

Our next question comes from Jacob Stephan with Lake Street Capital Markets.

我們的下一個問題來自 Lake Street Capital Markets 的 Jacob Stephan。

I just kind of want to focus on the quarter. So what kind of verticals are you seeing where orders are more, I guess, retailers are more reluctant to get the product and what, obviously, aerospace was a strength in the quarter, but where are you seeing kind of push out into the right?

我只是想關注本季。那麼，你看到什麼樣的垂直行業訂單更多，我猜，零售商更不願意獲得產品，顯然，航空航天是本季度的優勢，但你在哪裡看到了向右推的趨勢？

So I would say that a lot of the places where we started to engage with customers in applications that we have not proven yet -- value are places that take longer. And these are basically a lot of the segments that we didn't touch upon in this -- as kind of areas of focus. So these are areas where our footprint is very preliminary, usually 1 system, maybe 2 systems. And until we have demonstrated traction in those, we can expect longer sales cycles for those markets.

所以我想說，我們開始在尚未證明價值的應用程式中與客戶互動的許多地方都是需要更長的時間。這些基本上是我們在本文中沒有涉及的許多部分——作為重點領域。因此，這些是我們的足跡非常初步的領域，通常是 1 個系統，也可能是 2 個系統。在我們展示這些市場的吸引力之前，我們可以預期這些市場的銷售週期會更長。

Okay. And then I just want to touch on the guidance real quick. Obviously, Q4 guidance, the range is roughly $12 million. What could give us more confidence in hitting that high end? And what could be some factors that would kind of push the number to the low end.

好的。然後我只想快速談談指引。顯然，第四季指引範圍約為 1200 萬美元。什麼可以讓我們更有信心達到這高端？哪些因素可能會將這一數字推至低端。

Jacob, this is Bernie. We definitely have a path to get to our high end of our range, and that's our focus. With our -- going back to our go-to-market, there's a lot of things that we're doing that are going to help us get that next level of engagement of our customers and simple things as when we put a quote out there, we'll put an option to purchase a second machine, right? So we can build get into their project plan to see their future development. We're not trying to be shortsighted with just 1 sale. And so by just doing simple actions like that, it's making our part of the sales cycle and part of their projects with our customers to really engage. And that's where we're trying to bring the customer experience and value to these guys. And that's -- that's where it takes time. And obviously, we've had some hiccups on that, but we are continuing to focus on those areas that we do well in to get those customers to actually come through of those orders.

雅各布，這是伯尼。我們絕對有一條途徑可以達到我們的高端產品，這就是我們的重點。回到我們的市場推廣，我們正在做的很多事情將幫助我們提高客戶的參與度，以及一些簡單的事情，例如我們在那裡提供報價，我們會選擇購買第二台機器，對吧？所以我們可以把他們的專案計畫納入進去，看看他們未來的發展。我們並不是短視地只做一筆銷售。因此，只需執行這樣的簡單操作，就可以使我們成為銷售週期的一部分以及他們與客戶的專案的一部分，從而真正參與其中。這就是我們努力為這些人帶來客戶體驗和價值的地方。這就是——這就是需要時間的地方。顯然，我們在這方面遇到了一些問題，但我們將繼續專注於我們擅長的領域，以讓這些客戶真正完成這些訂單。

Okay. And maybe just kind of 1 last 1 here. When you think about the new inventory kind of alignment strategy, when you think about new orders coming in, does that affect essentially the build time or the shipment time, or is there kind of precautions that you've taken to assemble some of the basic parts? Or tell me kind of just walk us through that.

好的。也許這裡只是 1 最後 1。當您考慮新的庫存類型調整策略時，當您考慮收到新訂單時，這是否會實質上影響構建時間或發貨時間，或者您是否採取了某種預防措施來組裝一些基本的產品？部分？或告訴我，引導我們完成這個過程。

Yes, sure. So -- we have, as I mentioned, the inventory to build what we think we need to ship in Q4 and Q1, right? Here and there, we might find that we lack some material 5%, 10% of an existing office system. And of course, we are going to buy what we need in order to be able to build that. So it's really important to understand that the kind of built to order applies to buy material to order, not to start procurement -- not to start actually the production machine. Once we have the material, there is absolutely no reason for us not to start building it because we have the people, we have the material. So we absolutely are going to start building it.

是的，當然。因此，正如我所提到的，我們擁有庫存來建立我們認為需要在第四季度和第一季發貨的產品，對嗎？時不時地，我們可能會發現現有辦公室系統缺少5%、10%的材料。當然，我們將購買我們需要的東西，以便能夠建造它。因此，了解按訂單生產的類型適用於按訂單購買材料，而不是開始採購，而不是實際啟動生產機器，這一點非常重要。一旦我們有了材料，我們絕對沒有理由不開始建造它，因為我們有人才，有材料。所以我們絕對要開始建造它。

And the machines we are building are actually dependent on the forecast. What we are saying is that we are not going to buy additional material based on a top-down revenue plan that we had in the past of down forecast of machines that we will need to ship in future quarters where you basically look at that and you say, well, in order to be able to ship this amount of revenue, this amount of machine, I need to buy material now. We basically say, well, let's say that we actually ship material. Let's see that we build backlog that the inventories start dropping as we see those indicators, then we start making assessment when we need to buy more material, right? So basically not -- we are not making a commitment to buy material before we actually see the growth of backlog and the depletion of inventory that warrants that.

我們正在建造的機器實際上取決於預測。我們想說的是，我們不會根據過去自上而下的收入計劃購買額外的材料，我們過去對未來幾個季度需要運送的機器進行了向下預測，你基本上會看到這一點，然後你比如說，為了能夠運送這麼多的收入、這麼多的機器，我現在需要購買材料。我們基本上會說，好吧，假設我們實際上運送了材料。讓我們看看，當我們看到這些指標時，我們建立了積壓庫存開始下降，然後當我們需要購買更多材料時我們開始進行評估，對嗎？所以基本上不會——在我們真正看到積壓訂單的增長和庫存的耗盡之前，我們不會做出購買材料的承諾。

So at this moment, this doesn't affect our ability to deliver the lead times. But it could be that come Q3 next year or can come Q2 next year, it will affect the lead time on some of our systems, right, not all of them, but some flavors of our systems. That definitely could be 1 of the outcomes of that coming Q2 or Q3 next year.

因此，目前這並不影響我們交付交貨時間的能力。但明年第三季或明年第二季可能會出現，這將影響我們某些系統的交付時間，對，不是全部，而是我們系統的某些風格。這絕對可能是明年第二季或第三季的結果之一。

That's helpful. I appreciate the color.

這很有幫助。我很欣賞它的顏色。

And when this will be the case, we will know that that's the case, right? So -- and we'll be talking about this. I think you'll have the signals from what we report to recognize.

當這種情況發生時，我們就會知道情況就是這樣，對吧？所以——我們將討論這個。我想你會從我們報告的內容中得到識別的信號。

(Operator Instructions) There are no further questions. I would like to turn the floor back over to Benny for closing remarks.

（操作員說明）沒有其他問題。我想請本尼發表結束語。

Thank you, everyone, for joining our call. I'd like to summarize the strategic move that we have done rightsizing our operations and our company to a much more sustainable growth that gives us much more time to build the foundations and to grow profitably from that moment. So thank you so much for the call and looking forward to answer any more questions. Thank you.

謝謝大家加入我們的電話會議。我想總結一下我們為實現更永續的成長而調整營運規模和公司規模所採取的策略舉措，這使我們有更多的時間來打下基礎並從那時起實現獲利成長。非常感謝您的來電，並期待回答更多問題。謝謝。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。