Velo3D Inc (VELO) 2024 Q1 法說會逐字稿

Good afternoon. Welcome to the Velo3D first-quarter 2024 earnings conference call. (Operator Instructions)

午安.歡迎參加 Velo3D 2024 年第一季財報電話會議。（操作員指令）

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.

提醒一下，今天的電話會議正在錄音。現在我將電話轉給 Velo3D 公司投資者關係副總裁 Bob Okunski 先生。謝謝您，先生。你可以開始了。

Thank you. I'd like to welcome everyone to our first-quarter 2024 earnings conference call. On the call today, we will start out with comments from Brad Kreger, CEO of Velo3D, who will provide a summary of the quarter as well as an update on certain key strategic priorities for 2024. Following Brad's comments, Hull Xu, our CFO, will then review our first-quarter 2024 financial results and provide our guidance.

謝謝。歡迎大家參加我們的 2024 年第一季財報電話會議。在今天的電話會議上，我們將首先聽取 Velo3D 執行長 Brad Kreger 的評論，他將提供本季度的總結以及 2024 年某些關鍵戰略重點的最新情況。在布拉德發表評論之後，我們的財務長 Hull Xu 將審查我們 2024 年第一季的財務表現並提供指導。

As a reminder, a replay of this call will be available later today on the Investor Relations page of our website. 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 2023 10-K and additional 2024 SEC filings. Please see those documents for additional information regarding those factors that may affect these forward-looking statements.

提醒一下，本次電話會議的重播將於今天稍晚在我們網站的投資者關係頁面上提供。在今天的電話會議中，我們將做出前瞻性陳述，這些陳述受今天簡報的安全港幻燈片、今天的新聞稿以及我們的 2023 年 10-K 和其他 2024 年 SEC 文件中所述的各種風險和不確定性的影響。有關可能影響這些前瞻性陳述的因素的更多信息，請參閱這些文件。

Also, we will reference certain non-GAAP metrics during today's call. Please refer to the Appendix of our presentation as well as today's earnings press release for the appropriate GAAP to non-GAAP reconciliation. We've 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.

此外，我們將在今天的電話會議中參考某些非 GAAP 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。我們也發布了一組 PowerPoint 投影片，我們將在投資者關係網站的活動和簡報頁面上的電話會議期間參考這些投影片。

Before we get started, I would like to provide some brief comments related to the strategic review we announced in the fourth quarter. This comprehensive process remains ongoing, and the Board of Directors is in discussions with multiple parties related to maximizing stockholder value.

在我們開始之前，我想就我們在第四季度宣布的戰略評估發表一些簡短的評論。這一全面進程仍在進行中，董事會正在與多方進行討論，以最大化股東價值。

As we announced previously, we do not intend to disclose further developments on the strategic review process until we determine that such a disclosure is appropriate or necessary. As a result, we will not be answering questions on the status of the review during this call.

正如我們之前宣布的那樣，我們不打算披露戰略審查過程的進一步發展，直到我們確定此類披露是適當或必要的。因此，我們不會在此通話中回答有關審核狀態的問題。

With that, I'd like to turn the call over to Brad Kreger, CEO of Velo3D. Brad?

接下來，我想將電話轉給 Velo3D 執行長 Brad Kreger。布拉德？

Thanks, Bob. I'd like to welcome everyone to our first-quarter earnings call. As we mentioned last quarter, we initiated company realignment to reduce costs, rebuild our bookings pipeline, and recommit ourselves to ensuring our customers are successful, while instituting a culture of quality, efficiency, and profitability.

謝謝，鮑伯。歡迎大家參加我們的第一季財報電話會議。正如我們上個季度提到的，我們啟動了公司重組，以降低成本，重建預訂管道，並重新致力於確保客戶的成功，同時建立品質、效率和盈利的文化。

Our Q1 results reflect the continued execution on these priorities as we made significant progress in several key areas with more to come this quarter. Our goal of achieving sustainable profitability by yearend remains unchanged.

我們的第一季業績反映了這些優先事項的持續執行，我們在幾個關鍵領域取得了重大進展，本季也將取得更多進展。我們在年底實現可持續獲利的目標維持不變。

With that in mind, I'd like to discuss the specifics of our first quarter. Please turn to slide 3. Overall, we met our revenue guidance for the quarter and are now seeing the benefits from the new go-to-market strategy we implemented last year. Q1 bookings improved measurably on a sequential basis. And this momentum is carrying over into the second quarter, giving us significant visibility for this quarter.

考慮到這一點，我想討論一下我們第一季的具體情況。請翻到幻燈片 3。總體而言，我們達到了本季的營收預期，現在正在看到去年實施的新市場策略帶來的好處。第一季的預訂量較上季大幅提升。這種勢頭延續到了第二季度，為我們本季帶來了顯著的可見度。

On the expense side, the successful implementation of our aggressive cost reduction programs over the last six months is yielding results as OpEx declined by 15% versus Q4 in 30% year over year. We remain focused on prudently managing cash and expect quarterly OpEx to continue to trend down for the balance of the year. We completed our shift to a customer-driven model in both sales and support, and we continue to make material progress on improving system reliability in the field. More on that topic later.

在費用方面，我們在過去六個月成功實施的積極的成本削減計劃正在取得成效，營運支出與第四季度相比下降了 15%，年減了 30%。我們將繼續專注於審慎管理現金，並預計今年剩餘季度營運支出將持續呈下降趨勢。我們在銷售和支援方面都完成了向客戶驅動模式的轉變，並在提高現場系統可靠性方面繼續取得實質進展。稍後將對此主題進行更多探討。

Finally, we further expanded our pipeline during the quarter, with a particular emphasis on our core verticals of defense, space, and aerospace. We were pleased to see a strong rebound in our Q1 bookings as our value-based selling approach is gaining traction. Given this success, we believe we have significant visibility to Q2 revenue, achievement, and shipping goals.

最後，我們在本季進一步擴大了我們的產品線，特別強調國防、太空和航空航太等核心垂直領域。我們很高興看到第一季的預訂量強勁反彈，因為我們基於價值的銷售方式正在獲得關注。鑑於這一成功，我們相信我們對第二季的收入、成就和運輸目標具有顯著的預見性。

Specifically, we continue to see recovery in existing customer orders, given our reliability initiatives, with approximately 50% of Q1 bookings coming from our current customers. Additionally, on the new customer front, we increased our footprint in defense with the addition of three new customers in this sector during the quarter. We exited the quarter with $22 million in systems backlog with Q1 bookings totaling $17 million. The majority of which came from our core end markets.

具體而言，鑑於我們的可靠性舉措，我們繼續看到現有客戶訂單的復甦，其中第一季約 50% 的訂單來自我們現有的客戶。此外，在新客戶方面，我們在本季增加了三位國防領域新客戶，擴大了我們在國防領域的業務範圍。本季末，我們的系統積壓訂單金額為 2,200 萬美元，第一季的訂單總額為 1,700 萬美元。其中大部分來自我們的核心終端市場。

As a result of this visibility, we see a sequential revenue growth of more than 30% for the second quarter. Our cost control programs are working well and remain on track to achieve our cost reduction goals for the second quarter.

由於這種可見性，我們預計第二季營收將季成長超過 30%。我們的成本控制計畫進展順利，並有望實現第二季的成本削減目標。

Finally, given the success of our realignment initiatives, along with our rebound in bookings, we remain well positioned to achieve our goal of cash flow breakeven by the end of the year. As we discussed last quarter, we instituted a new go-to-market strategy over the last six months in order to rebuild our bookings momentum. I would now like to highlight some of our completed initiatives that have led to our recent successes as well as a few initiatives we plan on implementing to sustain this momentum.

最後，鑑於我們調整措施的成功以及訂單量的反彈，我們仍然有能力在年底前實現現金流收支平衡的目標。正如我們上個季度所討論的那樣，我們在過去六個月中製定了新的市場進入策略，以重建我們的預訂勢頭。現在，我想重點介紹我們已經完成的一些舉措，這些舉措為我們帶來了最近的成功，以及我們計劃實施的一些舉措，以保持這一勢頭。

Please turn to slide 4. We continue to benefit from our shift to a customer-driven model as the mix between new and existing customers has returned to our historical pattern. While this mix can fluctuate due to timing, we expect this split to remain consistent for the balance of the year.

請翻到幻燈片 4。隨著新舊客戶比例恢復到歷史水平，我們繼續受益於向客戶驅動模式的轉變。雖然這種組合可能會因時間而波動，但我們預計這種分配在今年餘下時間內將保持一致。

As part of our new strategy, we instituted several programs to simplify and improve our fundamental sales processes. These include initiatives focused on improving pipeline qualification, along with leveraging our value-based approach versus a pure technology sell.

作為新策略的一部分，我們制定了多項計劃來簡化和改進我們的基本銷售流程。這些舉措包括專注於提高管道資格，以及利用基於價值的方法而不是純粹的技術銷售。

As a result, we saw a significant improvement in our win rate for the first quarter. Additionally, we've also narrowed our customer focus to those markets where we've had significant success. These include the space and aerospace sectors, but more importantly, increasing our footprint in defense, a market that we remain very excited about.

結果，我們看到第一季的勝率顯著提高。此外，我們還將客戶重點縮小到我們已取得重大成功的市場。其中包括太空和航空航太領域，但更重要的是，增加我們在國防領域的足跡，我們對這個市場仍然感到非常興奮。

Again, we see a huge opportunity in defense in areas such as hypersonics and legacy part production. We have been and continue to be in discussions with the DoD leadership about how we can be a leader in their transition to AM.

我們再次看到了高超音速和傳統零件生產等領域在國防領域的巨大機會。我們一直在與國防部領導層討論如何成為向 AM 過渡的領導者。

Looking forward, we are investing the resources required to fuel new market expansion by leveraging our experience in sectors such as space to open new application areas in both aerospace and defense. We are also exploring new pricing and packaging models to drive growth while reducing overall production costs by improving our manufacturing and installation efficiency.

展望未來，我們將利用我們在太空等領域的經驗，投入所需的資源來推動新市場的擴張，開闢航空航太和國防領域的新應用領域。我們也正在探索新的定價和包裝模式來推動成長，同時透過提高製造和安裝效率來降低整體生產成本。

Finally, we started a program working directly with the supply chain of key defense primes to better position the company as a long-term trusted partner to our defense customers. This has already paid off as we continue to receive orders related to the $825 billion Defense Spending Bill, which was approved in late March.

最後，我們啟動了一項直接與主要國防原材料供應鏈合作的計劃，以便更好地將公司定位為國防客戶的長期可信賴的合作夥伴。這項舉措已獲得回報，我們不斷收到與三月底批准的 8,250 億美元國防開支法案相關的訂單。

While we're excited about the growth potential given our go-to-market changes, these efforts will not come to fruition without executing on our internal realignment initiatives to position the company for success. I'd like to briefly provide an update on the 2024 strategic priorities we laid out.

雖然我們對市場變化帶來的成長潛力感到興奮，但如果不執行內部調整計畫來為公司的成功奠定基礎，這些努力就無法實現。我想簡要介紹一下我們所製定的 2024 年策略重點的最新情況。

Please turn to slide 5. We continue to execute on our quality enhancements as we saw a 40% sequential improvement in both days to install and labor related to our XC installation efforts. This was made possible through the success of key initiatives that we launched in the second half of last year, focused on improving the quality of our printers and streamlining installation processes.

請翻到投影片 5。我們繼續加強品質改進，我們發現與 XC 安裝工作相關的安裝和人工時間都連續提高了 40%。這是得益於我們去年下半年推出的關鍵舉措的成功，這些舉措的重點是提高印表機品質和簡化安裝流程。

We are most proud of the customer experience and success improvements we've accomplished in the first quarter. We accelerated the rollout of reliability upgrades to the field and established a regular cadence of providing reliability improvement updates to our customers. Additionally, our pipeline continues to fill with qualified leads as we've started to rebuild our backlog exiting the first quarter at $22 million. This success demonstrates our customers value our technology and that we are successfully addressing the reliability issues in the field.

我們最自豪的是第一季取得的客戶體驗和成功改進。我們加快了可靠性升級在現場的推廣，並建立了定期向客戶提供可靠性改進更新的節奏。此外，隨著我們開始重建第一季末 2,200 萬美元的積壓訂單，我們的管道繼續充滿合格的潛在客戶。這一成功表明我們的客戶重視我們的技術，並且我們成功解決了該領域的可靠性問題。

Finally, to reiterate, we further reduced our cost structure by 30% year over year and remain confident that we see a clear, executable path to cash flow breakeven in the second half of 2024.

最後，重申一下，我們進一步將成本結構年減了 30%，並堅信在 2024 年下半年我們將看到一條清晰、可執行的現金流收支平衡路徑。

Before turning the call over to Hull for financials, I wanted to highlight some of the recent manufacturing and customer successes we've had and why customers continue to choose Velo3D's technology for their AM needs.

在將電話轉給赫爾詢問財務狀況之前，我想重點介紹我們最近在製造和客戶方面取得的一些成功，以及為什麼客戶繼續選擇 Velo3D 技術來滿足他們的 AM 需求。

Please turn to slide 6. On the left, we internally designed and built a turbo fan for demonstration purposes to highlight our ability to print parts with significant low angles and overhangs without support, something our competitors have a difficult time matching. This part was built on a Sapphire XC in aluminum and is one of the largest CP1 AM parts ever built in this material. This part was done as a single piece in less than three days as compared to traditional casting processes that could take weeks or months while also requiring significant upfront investment and typically yielding lower results.

請翻到幻燈片 6。在左側，我們內部設計並製造了一個渦輪風扇，用於演示目的，以突出我們在沒有支撐的情況下打印具有明顯低角度和懸垂的部件的能力，這是我們的競爭對手難以匹敵的。該部件採用鋁製 Sapphire XC 製造，是有史以來用這種材料製造的最大的 CP1 AM 部件之一。與需要數週或數月時間的傳統鑄造過程相比，該部件作為一個整體在不到三天的時間內完成，同時還需要大量的前期投資，並且通常產生的結果也較低。

In the middle, we are highlighting our leading position in heat exchanger production as our technology is particularly well suited for the complex nature of these parts. For example, one of our partners, a large semiconductor equipment company, is using our technology to produce heat exchangers for use in next-generation AI chip production.

其中，我們強調了我們在熱交換器生產方面的領先地位，因為我們的技術特別適合這些零件的複雜性。例如，我們的合作夥伴之一，一家大型半導體設備公司，正在使用我們的技術生產用於下一代AI晶片生產的熱交換器。

Finally, on the right, we went head-to-head with other AM companies in a surfacing trial for hypersonic ramjet. By printing this part at our system, the customer was able to reduce the cost by $20,000 and significantly reduced their lead time from six weeks to just days. On the competitive front, we were able to achieve this result three times faster than our closest competitor and with the highest surface quality across all participants in the trial.

最後，在右側，我們與其他 AM 公司在高超音速沖壓發動機表面試驗中展開了正面交鋒。透過在我們的系統上列印該零件，客戶能夠減少 20,000 美元的成本，並將交貨時間從六週顯著縮短至僅幾天。在競爭方面，我們能夠以比最接近的競爭對手快三倍的速度實現這一結果，並且在試驗的所有參與者中擁有最高的表面質量。

In closing, I'm very encouraged with the progress we've achieved so far and remain excited about our future opportunities. While there is still a lot of work to be done, we firmly believe we have turned the corner and we are in a much stronger position to achieve our 2024 goals.

最後，我對我們迄今的進展感到非常鼓舞，並對我們未來的機會感到興奮。儘管還有很多工作要做，但我們堅信我們已經渡過了難關，我們更有能力實現我們的 2024 年目標。

With that, I would like to turn the call over to Hull to discuss our financials and provide our guidance. Hull?

說到這裡，我想把電話轉給赫爾，討論我們的財務狀況並提供指導。赫爾？

Thanks, Brad. Before reviewing our financial results, I wanted to say how excited I am to be part of the Velo3D team and share the reasons why I joined Velo3D at this juncture. As I took some time between my last job and joining Velo3D, I did some thinking as to what I was looking for in my next adventure.

謝謝，布拉德。在回顧我們的財務結果之前，我想說我很高興成為 Velo3D 團隊的一員，並分享我在這個時刻加入 Velo3D 的原因。在上一份工作和加入 Velo3D 之間有一段時間，我思考了一下自己在下一次冒險中要尋找什麼。

I was looking for a company with leading-edge technology and products, serving markets that are ready to adopt and have high demand for this technology. I was also looking for a company with a professional management team wanting to grow the business at a rapid pace. I believe I found it in Velo.

我一直在尋找一家擁有領先技術和產品的公司，服務那些準備採用該技術且對該技術有高需求的市場。我也在尋找一家擁有專業管理團隊並希望快速發展業務的公司。我相信我在 Velo 找到了它。

With any new technology being turned into successful products, there's always a period of growing pain. I believe the current Velo team has identified the challenges and are actively addressing them. While only being here a few weeks, I'm already impressed with the Velo team's dedication, focus, and desire to make this company a successful and profitable enterprise.

任何新技術在轉化為成功的產品的過程中，總是會經歷一段成長的煩惱。我相信目前 Velo 團隊已經認識到了挑戰並正在積極應對。雖然只在這裡待了幾個星期，但 Velo 團隊的奉獻精神、專注力以及將公司打造為成功且盈利的企業的願望已經給我留下了深刻的印象。

I'm looking forward to helping Brad and the team execute on our realignment initiatives. As Brad mentioned, we are making significant progress in a number of areas, and I'm encouraged with our success to date. While there is still a lot of work to do, I believe we have turned the corner and are now well on our way to achieve our 2024 plan.

我期待著幫助布拉德和團隊執行我們的調整計劃。正如布拉德所說，我們在許多領域都取得了重大進展，我對迄今為止的成功感到鼓舞。雖然還有很多工作要做，但我相信我們已經渡過了難關，並且正在順利實現我們的 2024 年計劃。

Moving on to our quarterly financial performance. Please turn to slide 8. First-quarter revenue was $10 million, up significantly from Q4 '23 and in line with our guidance. The sequential improvement was entirely driven by increased shipments as we started to benefit from our new go-to-market strategy that was implemented in Q4 of '23.

接下來是我們的季度財務表現。請翻到第 8 張投影片。第一季的營收為 1,000 萬美元，較 23 年第四季大幅成長，符合我們的預期。連續的成長完全是由出貨量增加所推動的，因為我們開始受益於我們於 23 年第四季實施的新的市場進入策略。

Gross margin for the first quarter was negative 29% and primarily due to lower fixed cost absorption. We expect positive gross margin in the second quarter given increased system shipments, improvement in our balance of material costs, and ongoing benefits from our new long-term supply contracts.

第一季的毛利率為負29%，主要由於固定成本吸收較低。由於系統出貨量增加、材料成本平衡改善以及新的長期供應合約的持續收益，我們預計第二季的毛利率將為正值。

We also made significant progress in reducing our operating cost structure in the first quarter as non-GAAP OpEx declined 15% sequentially to $14 million, excluding the costs and charges related to our realignment initiatives. The decrease in operating expenses reflects a reduction in all expense categories and savings related to our realignment initiatives.

我們在第一季也取得了重大進展，在降低營運成本結構方面取得了重大進展，非 GAAP 營運支出環比下降 15% 至 1,400 萬美元（不包括與我們的重組計劃相關的成本和費用）。營運費用的減少反映了所有費用類別的減少以及與我們的重組措施相關的節省。

Specifically, R&D expense has declined by $4.8 million, G&A declined $2.1 million, and sales and marketing was down slightly compared with last quarter. We expect OpEx to decline by over 10% in the second quarter with additional quarterly reduction for balance of the year.

具體而言，研發費用下降了 480 萬美元，一般及行政費用下降了 210 萬美元，銷售和行銷費用與上一季相比略有下降。我們預計第二季營運支出將下降 10% 以上，今年餘下的季度營運支出還將進一步下降。

GAAP net loss for the quarter was $28.3 million, including a non-cash charge of approximately $3.1 million related to changes in the fair value of our warrants and earn-out liabilities. On a non-GAAP basis, which excludes these non-cash charges and stock-based comp, net loss was $20.2 million. Adjusted EBITDA for the quarter, excluding the same items, was negative $11.7 million.

本季的 GAAP 淨虧損為 2,830 萬美元，其中包括與認股權證和獲利負債公允價值變動相關的約 310 萬美元的非現金費用。以非公認會計準則計算，不包括這些非現金費用和股票補償，淨虧損為 2,020 萬美元。不包括相同項目，本季調整後 EBITDA 為負 1,170 萬美元。

As we discussed, we expect to see a positive gross margin in the second quarter with continued improvement as we go through the year. I want to briefly reiterate the four key drivers we highlighted last quarter that will drive this improvement.

正如我們所討論的，我們預計第二季的毛利率將為正，並且全年將繼續改善。我想簡要重申我們在上個季度強調的推動這項改善的四個關鍵驅動因素。

Please turn to slide 9. First, we're just starting to benefit from our bond cost reduction initiatives that we started in Q4. We have identified and started to implement approximately 25 separate programs to lower our Sapphire XC costs by more than 30% by the end of the year.

請翻到第 9 張投影片。首先，我們剛開始受惠於第四季啟動的債券成本降低措施。我們已經確定並開始實施大約 25 個獨立計劃，以便在年底前將 Sapphire XC 成本降低 30% 以上。

Second is our continued product mix shift to our larger format, higher-priced Sapphire XC systems at a reduced bond cost. We have also added programs to improve the monetization of our maintenance and parts recurring revenue streams as well as expanding our consumable business such as power sales.

第二是我們的產品結構繼續轉向更大尺寸、更高價格的 Sapphire XC 系統，同時降低債券成本。我們還增加了一些計劃，以提高維護和零件經常性收入流的貨幣化，並擴大電力銷售等消耗品業務。

Third is just becoming more operationally efficient in the factory. This will be accomplished through improved overhead cost absorption as we scale system volume in addition to leveraging our new supply agreement in a shift to utilizing a higher number of system subassemblies.

第三是工廠的營運效率更加提升。這將透過提高間接成本吸收來實現，因為我們可以擴大系統容量，此外還可以利用新的供應協議來使用更多數量的系統子組件。

Finally, improving field support efficiency, which is directly tied to customer system reliability. While this has been a drag on gross margins for the past couple of quarters, we firmly believe the changes we have made in our service organization will minimize the impact in the near-term, while allowing us to expand margins in the second half of the year.

最後，提高現場支援效率，這與客戶系統的可靠性直接相關。雖然這在過去幾季拖累了毛利率，但我們堅信，我們在服務組織中所做的變革將在短期內將影響降到最低，同時使我們能夠在下半年提高利潤率。

On slide 10, we are providing some additional detail in our operating expense reduction initiatives. As we highlighted, we have significantly reduced our cost structure over the last six months and expect this to continue to trend down for the balance of the year. We expect Q2 OpEx to decline by more than 10% as we see continued benefits from a more efficient spend in our sales and marketing and G&A functions with additional reductions in R&D given our product roadmap. Finally, we are also evaluating additional cost reduction measures.

在第 10 張幻燈片中，我們提供了有關營運費用削減措施的一些更多細節。正如我們所強調的，我們在過去六個月中大幅削減了成本結構，預計今年餘下時間這一趨勢將繼續下降。我們預計第二季的營運支出將下降 10% 以上，因為我們看到，在我們的產品路線圖下，我們的銷售和行銷以及 G&A 職能部門的更有效的支出將持續帶來收益，而研發費用將進一步減少。最後，我們也正在評估額外的成本削減措施。

Now I'd like to provide our outlook for fiscal year 2024. Please turn to slide 11. As mentioned, we expect sequential quarterly improvement in revenue, margin, and operating expenses in 2024 as we start to benefit from our realignment initiatives. For Q2, we expect sequential revenue growth of greater than 30%.

現在，我想提供我們對 2024 財年的展望。請翻到第 11 張投影片。如上所述，隨著我們開始受益於重組舉措，我們預計 2024 年收入、利潤率和營運費用將逐季改善。對於第二季度，我們預計連續收入成長將超過 30%。

Our full-year 2024 guidance is as follows: we expect revenue to be in the range of $80 million to $95 million, gross margin improvements for the balance of the year was gross margin of approximately 30% in the fourth quarter of 2024, non-GAAP operating expenses in the range of $40 million to $50 million.

我們對 2024 年全年的預期如下：我們預計營收在 8,000 萬美元至 9,500 萬美元之間，全年毛利率改善，2024 年第四季毛利率約為 30%，非 GAAP 營業費用在 4,000 萬美元至 5,000 萬美元之間。

In conclusion, we are focused on executing our realignment of strategies with a clear path to profitability through improvements in operating efficiency, margin, and cash flow. We continue to believe that we are well on our way to achieve sustainable profitability as we exit 2024.

總之，我們專注於執行策略調整，透過提高營運效率、利潤率和現金流，明確獲利途徑。我們依然相信，在 2024 年結束時，我們將順利實現可持續盈利。

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

說完這些，我想把電話轉給提問者。操作員？

(Operator Instructions) James Ricchiuti, Needham & Company.

（操作員指示）James Ricchiuti，Needham & Company。

Hi, good afternoon. So you're suggesting a significant improvement in gross margin, I guess, getting to a positive gross margin Q2, and that's at around $13 million or so of revenue. So what I'm trying to understand is what are some of the levers that are going to generate that kind of improvement? Is it -- I mean, will you get enough manufacturing absorption to get to a breakeven gross margin or for those revenues?

嗨，下午好。所以我想你的意思是毛利率會大幅提高，第二季的毛利率會達到正值，也就是收入大約是 1,300 萬美元左右。所以我想了解的是，哪些槓桿可以帶來這種改善？是的——我的意思是，您是否會獲得足夠的製造業吸收量以實現收支平衡的毛利率或那些收入？

Yeah. Hi, Jim. This is Hull. Yes, that is the plan. As we fill out the factory floor, some of the fixed costs will be absorbed by more system shipments. That will help on the gross margin side. So yeah, you're exactly right.

是的。你好，吉姆。這是赫爾。是的，這是計劃。隨著我們填滿工廠車間，部分固定成本將被更多的系統出貨量所吸收。這將有助於提高毛利率。是的，你完全正確。

And you can get that kind of improvement just even with -- still, I would say, sequentially, it's a healthy level improvement in gross margin, but you're still at a relatively low level. So it's just coming from manufacturing absorption. Are there some other components to that? It's just puzzling to me when I look at where you ended up coming in at gross margin for Q1.

即使如此，你仍然可以獲得這樣的改善——不過，我想說，從連續來看，毛利率取得了健康的水平改善，但仍然處於相對較低的水平。所以它只是來自製造業的吸收。還有其他因素嗎？當我看到您第一季的毛利率最終是多少時，我感到很困惑。

Yeah. And as we build more systems, we are able to utilize some of the less expensive inventories that we have on hand that also help on the margin side. So more system shipment is overall much better for us.

是的。隨著我們建立更多的系統，我們能夠利用一些手頭上較便宜的庫存，這也有助於提高利潤。因此，總體而言，更多的系統出貨對我們來說是更好的。

Okay, okay. And wondering how we should think about cash burn in the current quarter. Any color you could provide?

好的，好的。想知道我們應該如何考慮本季的現金消耗。您能提供什麼顏色嗎？

So OpEx for the last quarter was -- non-GAAP OpEx was $14 million unchanged. We expect about 10% reduction sequentially.

因此，上一季的營運支出 - 非 GAAP 營運支出保持不變，為 1400 萬美元。我們預計將季減約 10%。

Okay. I'll join the queue. Thank you.

好的。我會加入隊列。謝謝。

Brian Kinstlinger, Alliance Global Partners.

聯盟全球合作夥伴 (Alliance Global Partners) 的 Brian Kinstlinger。

Yes, hi. This is Matthew on for Brian. Thanks for taking our questions today.

是的，你好。這是馬修為布萊恩主持的節目。感謝您今天回答我們的問題。

Sure.

當然。

Can you quantify a little bit more widely the improvement in printing machine downtime at your installed base over the last six months? And are the majority of your customers now evaluating purchasing new systems? And then one more, like in that same vein, can you comment specifically on whether you're seeing a return in demand from your largest customer from 2022 which dropped down in 2023?

您能否更廣泛地量化過去六個月內您安裝的印刷機停機時間的改善？您的大多數客戶現在是否正在評估購買新系統？再問一個問題，同樣地，您能否具體評論一下，您是否看到您最大客戶的需求從 2022 年開始回升，而 2023 年則有所下降？

Sure. So in terms of customer reliability, if we don't provide details on specifics of numbers, what I could say is we've made material improvements for our customers, right? And so when we're talking to our customers and they're looking at placing orders for additional systems, they're typically looking at being able to achieve with their existing systems the throughput and uptime and utilization values that meet their economic models for originally purchasing the system.

當然。因此，就客戶可靠性而言，如果我們不提供具體數字的詳細信息，我可以說我們已經為客戶做出了實質性的改進，對嗎？因此，當我們與客戶交談時，他們正在考慮訂購額外的系統，他們通常希望能夠利用現有系統來實現符合他們最初購買系統的經濟模型的吞吐量、正常運行時間和利用率值。

And so I think what we're seeing is we're helping customers get to that point where their models are valid and they feel comfortable that making additional investments will continue to deliver that kind of result.

因此，我認為我們看到的是，我們正在幫助客戶達到他們的模型有效的程度，並且他們感到放心，透過額外的投資將繼續帶來這樣的結果。

Got it. Great. Thank you. And then -- yeah, yeah, thank you.

知道了。偉大的。謝謝。然後——是的，是的，謝謝你。

I'll add one thing on the customer service side. We've been able to address more issues than they come up. So I mean that's definitely a good trend, right?

我將在客戶服務方面補充一點。我們能夠解決的問題比它們出現的數量還要多。所以我認為這絕對是一個好趨勢，對吧？

Yeah, all right. Thanks very much. And then one more, just a similar question as it relates to government purchasing. On this end, we thought the concern was reliability and the contract to reevaluate when that's fixed. Can you provide any updates related to the government product evaluation or any ongoing testing in that vein or any communication?

嗯，好的。非常感謝。還有一個類似的問題，涉及政府採購。在這方面，我們認為關注的是可靠性，並在問題解決後重新評估合約。您能否提供與政府產品評估或任何正在進行的此類測試相關的最新消息或任何溝通資訊？

So in terms of government spending, the way that comes to us is typically indirectly. So you have a number of government program, hypersonics and various programs coming through defense. And these are ultimately being serviced by the defense clients and the defense primes are leveraging contract manufacturers in most cases that are the customers utilizing our technology.

因此就政府支出而言，我們所獲得的資金通常都是間接的。所以，有許多政府計劃、高超音速計劃和各種國防計劃。這些最終由國防客戶提供服務，大多數情況下，國防主要利用合約製造商，而這些製造商是使用我們技術的客戶。

So if you look at customers like Mears that we added at the end of last quarter, that's directly tied to defense and supporting defense primes and ultimately government spending. But again, it's coming to us kind of indirectly through that supply chain. So I'm not sure if that kind of addresses your question, but I think the valuations being are ultimately being done by contract manufacturers who are guided to us or directed to us by, again, the primes and the government programs.

因此，如果您查看我們在上個季度末增加的像米爾斯 (Mears) 這樣的客戶，您會發現這與國防和支持國防主要項目以及最終的政府支出直接相關。但同樣，它是透過供應鏈間接地到達我們手中的。所以我不確定這是否回答了你的問題，但我認為估值最終是由合約製造商完成的，他們受到主要政府和政府計劃的指導或指示。

Okay, got it.

好的，明白了。

I think, additionally, our effort has been paying off, right? You saw that we announced three new customers just in the defense sector.

此外，我認為我們的努力已經獲得了回報，對嗎？您看到我們宣布了國防領域的三個新客戶。

And this is an area where we are pretty seeing a lot of traction, right? It's a unique market. Defense is clearly ramping up, and it's something we see as a tailwind for us throughout 2024 and going forward.

這是我們看到很多發展的領域，對嗎？這是一個獨特的市場。防禦能力顯然正在增強，我們認為這對我們在 2024 年及未來的發展來說是一個順風。

All right. Thank you for the color, guys.

好的。謝謝你們的顏色，夥伴們。

Thank you. Ladies and gentlemen, this will conclude our question-and-answer session. And I'd like to turn the call back to Brad Kreger for closing remarks.

謝謝。女士們、先生們，我們的問答環節到此結束。我想請布拉德克雷格 (Brad Kreger) 作最後發言。

Thank you. Yeah. I want to thank everybody for attending and look forward to meeting with you again at the end of next quarter.

謝謝。是的。我要感謝大家的參加，並期待下季末再次與大家見面。

I continue to be very optimistic for the balance of 2024. Quite pleased with the progress we've made in the first quarter. And again, with the secular tailwinds from defense behind us, we are well-positioned to achieve our plan for 2024. So thanks again.

我對 2024 年的平衡仍然非常樂觀。我們對第一季的進展感到非常滿意。而且，在國防方面的長期推動下，我們已準備好實現 2024 年的計畫。再次感謝。

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

今天的會議到此結束。現在您可以斷開您的線路。感謝您的參與。