Valens Semiconductor Ltd (VLN) 2024 Q3 法說會逐字稿

Good morning. My name is Yoni, and I will be your conference operator today. At this time, I would like to welcome everyone to Valens Semiconductor's third quarter, 2024 earnings conference call and webcast. (Operator Instructions)

早安.我叫 Yoni，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 Valens Semiconductor 2024 年第三季財報電話會議和網路廣播。（操作員說明）

I will now turn the call over to Michal Ben Ari Investor Relations for Valen Semiconductor. Please go ahead.

我現在將把電話轉給 Valen Semiconductor 的投資者關係部 Michal Ben Ari。請繼續。

Thank you, and welcome, everyone, to Valen Semiconductor's third-quarter 2024 earnings call. With me today are Gideon Ben-Zvi, Chief Executive Officer; and Guy Nathanzon, Chief Financial Officer.

謝謝並歡迎大家參加 Valen Semiconductor 的 2024 年第三季財報電話會議。今天與我在一起的有執行長 Gideon Ben-Zvi；和財務長 Guy Nathanzon。

Earlier today, we issued a press release that is available on the Investor Relations section of our website under investors.valens.com. As a reminder, today's earnings call may include forward-looking statements and projections which do not guarantee future events or performance. These statements are subject to the Safe Harbor language in today's press release. Please refer to our Annual Report on Form 20-F filed with the SEC on February 28, 2024, for a discussion of the factors that could cause actual results to differ materially from those expressed or implied. We do not undertake any duty to revise or update such statements to reflect new information, subsequent events, or changes in strategy.

今天早些時候，我們發布了一份新聞稿，您可以在我們網站的投資者關係部分獲取，網址為investors.valens.com。提醒一下，今天的財報電話會議可能包括前瞻性陳述和預測，它們不能保證未來的事件或表現。這些聲明受今天新聞稿中的安全港語言約束。請參閱我們於 2024 年 2 月 28 日向 SEC 提交的 20-F 表格年度報告，以了解可能導致實際結果與明示或暗示的結果存在重大差異的因素的討論。我們不承擔任何修改或更新此類聲明以反映新資訊、後續事件或策略變更的責任。

We will be discussing certain non-GAAP measures on this call, which we believe are relevant in assessing the financial performance of the business, and you can find reconciliations of these metrics within our earnings release.

我們將在本次電話會議上討論某些非公認會計準則指標，我們認為這些指標與評估企業的財務表現相關，您可以在我們的收益報告中找到這些指標的調節表。

With that, I will now turn the call over to Gideon.

現在，我將把電話轉給吉迪恩。

Thank you, Michal. Hello, everyone, and thank you for joining Valen Semiconductor third-quarter 2024 earnings call.

謝謝你，米哈爾。大家好，感謝您參加 Valen Semiconductor 2024 年第三季財報電話會議。

We are pleased to report solid results and strong execution in the third quarter. We are proud to be an industry leader in audio-video and automotive markets. Demand for our high-performance connectivity solutions grew as customers adopted our technology to create cutting-edge products. With this momentum, we exceeded the top end of our revenue guidance.

我們很高興地報告第三季的穩健業績和強勁的執行力。我們很自豪能夠成為影音和汽車市場的行業領導者。隨著客戶採用我們的技術來創造尖端產品，對我們高效能連接解決方案的需求不斷增長。憑藉這一勢頭，我們超出了收入指導的上限。

We advanced our long-term growth strategy with some key accomplishments. These included three new automotive design wins with leading European OEMs and a successful entry into the industrial machine vision market. We push the boundaries of connectivity. Our advanced chipsets empower customers to bring disruptive products to both established and emerging markets. We are very encouraged to see an enthusiastic customer response and rapid adoption of our VS6320 chipset in audio-video applications.

我們推進了長期成長策略並取得了一些關鍵成就。其中包括贏得歐洲領先原始設備製造商的三項新車設計以及成功進入工業機器視覺市場。我們突破連結的界限。我們先進的晶片組使客戶能夠為成熟市場和新興市場帶來顛覆性產品。看到客戶的熱烈響應以及我們的 VS6320 晶片組在音訊視訊應用中的快速採用，我們感到非常鼓舞。

Inventory digestion continues to impact our industry. However, we believe we are emerging from the bottom of the cycle. As such, we are seeing increasing interest in our solutions that will be embedded into products and expected to hit the market in the next few years. We are proactively introducing our new chipsets to existing and new customers where there is strong interest in audio-video, industrial, and machine vision verticals. We expect more design wins over the near and mid-term.

庫存消化繼續影響我們的行業。然而，我們相信我們正在走出週期的底部。因此，我們看到人們對我們的解決方案越來越感興趣，這些解決方案將嵌入到產品中，並預計將在未來幾年內推出市場。我們正在積極向對音頻視頻、工業和機器視覺垂直領域有濃厚興趣的現有和新客戶推出我們的新晶片組。我們預計在近期和中期會有更多設計獲勝。

Moving on to a quick overview of our third-quarter financial performance. We reported revenues of $16 million which exceeded the top end of our guidance. We are pleased that Acroname, the recent acquisition we made in May 2024 contributed $1.6 million of revenue. This was also above the guidance we provided last quarter.

接下來快速概述我們第三季的財務表現。我們報告的收入為 1600 萬美元，超出了我們指導的上限。我們很高興我們在 2024 年 5 月最近收購的 Acroname 貢獻了 160 萬美元的收入。這也高於我們上季度提供的指引。

GAAP gross margin for the third quarter came in at 56.4% and adjusted EBITDA loss was $5.1 million, both beating our guided ranges. Importantly, we have a very strong balance sheet. With $133.1 million of cash and cash equivalents, we are well positioned to continue investing in innovation and exploring strategic M&A that will support long-term growth.

第三季 GAAP 毛利率為 56.4%，調整後 EBITDA 虧損為 510 萬美元，均超出我們的指引範圍。重要的是，我們擁有非常強勁的資產負債表。憑藉 1.331 億美元的現金和現金等價物，我們有能力繼續投資創新並探索支持長期成長的策略併購。

Now I will discuss the trends and opportunities we see in our markets, starting with professional Audio-Video which includes applications such as entertainment, video conferencing, education, and digital signage.

現在，我將討論我們在市場中看到的趨勢和機遇，從專業音訊視訊開始，其中包括娛樂、視訊會議、教育和數位看板等應用。

Since its introduction late last year, the VS6320 has attracted over 50 customers that are developing and launching products for audio-video applications. This is an extremely high adoption rate and is expected to contribute to a record number of customer products that should be launched in the next 9 to 12 months. This validates the chipsets' groundbreaking technology and reflects the market need for reliable, streamlined, and affordable connectivity. We expect initial sales before the end of the year with further ramp-up towards the end of 2025.

自去年年底推出以來，VS6320 已吸引了 50 多家正在開發和推出音訊視訊應用產品的客戶。這是一個極高的採用率，預計將有助於在未來 9 至 12 個月內推出創紀錄數量的客戶產品。這驗證了晶片組的突破性技術，並反映了市場對可靠、簡化且經濟實惠的連接的需求。我們預計今年年底前將實現初步銷售，並在 2025 年底前進一步增加。

One exciting new video conferencing product, the Logitech Extend, is based on our HDBaseT technology. Extend allows Meeting Room users to connect using a single USB-C cable and launch a meeting from a laptop or a mobile device utilizing the room's peripherals. We expect this high-performing, easy-to-use extension solution to fuel demand for advanced Meeting Room solutions.

Logitech Extend 是一款令人興奮的新型視訊會議產品，它基於我們的 HDBaseT 技術。Extend 允許會議室使用者使用單一 USB-C 電纜進行連接，並利用房間的周邊設備從筆記型電腦或行動裝置啟動會議。我們期望這種高效能、易於使用的擴展解決方案能夠刺激對高階會議室解決方案的需求。

Moving on to the machine vision and industrial verticals. Based on market research, the broader machine vision market is expected to reach $7.8 billion by 2029. Factory and warehouse automation combined with more demanding inspection regulations will drive this growth. We anticipate that the TAM for the segment in which we compete can reach $460 million by 2029 and believe we are well positioned to capture a significant market share.

轉向機器視覺和工業垂直領域。根據市場研究，到 2029 年，更廣泛的機器視覺市場預計將達到 78 億美元。工廠和倉庫自動化加上更嚴格的檢驗法規將推動這一成長。我們預計，到 2029 年，我們競爭的細分市場的 TAM 將達到 4.6 億美元，並相信我們有能力佔領重要的市場份額。

Last month, we showcased our innovative solutions for the industrial machine vision market at the VISION trade show in Stuttgart, Germany. VISION is the leading international trade fair for machine vision. This show attracts thousands of visitors from a wide range of industries. I am pleased to report that Valens received outstanding feedback from prospective customers for two of our latest products, our VA7000 CSI-2 extension solution as well as the VS6320 USB 3 extension solution. Both chipsets enhance commonly used interfaces in the industrial market and eliminate the constraints of choosing between expensive long cable connectivity or compromising on short cables with no flexibility to modify the length. Our solution enables the capability and flexibility that machine vision for industrial installation is eager for.

上個月，我們在德國斯圖加特舉行的 VISION 貿易展上展示了我們針對工業機器視覺市場的創新解決方案。VISION 是領先的機器視覺國際貿易展覽會。此次展會吸引了來自各行各業的數千名參觀者。我很高興地報告，Valens 收到了潛在客戶對我們的兩款最新產品（VA7000 CSI-2 擴展解決方案以及 VS6320 USB 3 擴展解決方案）的出色反饋。這兩款晶片組都增強了工業市場中常用的接口，並消除了在昂貴的長電纜連接或妥協於無法靈活修改長度的短電纜之間進行選擇的限制。我們的解決方案實現了工業安裝機器視覺所渴望的功能和靈活性。

We also announced the release of our USB 3 industrial grade extender product. Based on the VS6320 chipset, this product allows vendors to extend their existing portfolio of USB 3 cameras. This is done without any product redesigns providing a ready-to-use solution and significantly decreasing time to market. Currently, we are engaged with leading camera module manufacturers in industrial machine vision.

我們也宣布推出 USB 3 工業級擴展器產品。該產品基於 VS6320 晶片組，允許供應商擴展其現有的 USB 3 相機產品組合。無需重新設計任何產品即可完成此操作，提供即用型解決方案並大幅縮短上市時間。目前，我們正在與工業機器視覺領域領先的相機模組製造商合作。

These OEMs include Teledyne e2v, a global innovator of imaging solutions; FRAMOS, an embedded vision systems leader; and Leopard Imaging, a machine vision camera supplier, among others. We're also excited about Acroname's potential to expand our position in the industrial market. We are very pleased with our progress in the Audio-Video sector. We are confident about our growth potential and are acting to leverage significant opportunities across verticals with focus on industrial machine vision.

這些 OEM 包括 Teledyne e2v（全球影像解決方案創新者）； FRAMOS，嵌入式視覺系統領導者；以及機器視覺相機供應商 Leopard Imaging 等。我們也對 Acroname 擴大我們在工業市場地位的潛力感到興奮。我們對音頻視頻領域的進展感到非常滿意。我們對自己的成長潛力充滿信心，並正在採取行動，利用以工業機器視覺為重點的垂直產業的重大機會。

To this end, Valens is conducting strategic organizational changes within the Audio-Video business unit. Audio-Video business is transitioning to Cross Industry Business encompassing verticals including Audio-Video, Industrial, Machine Vision, and Medical. To facilitate our growth strategy the Cross Industry Business Unit will also include a transition in leadership. We're confident that these changes will enable us to achieve our goals in these new high-growth markets.

為此，Valens 正在音訊視訊業務部門內進行策略性組織變革。影音業務正向跨產業業務轉型，涵蓋影音、工業、機器視覺和醫療等垂直領域。為了促進我們的成長策略，跨行業業務部門還將包括領導層的過渡。我們相信，這些變化將使我們能夠在這些新的高成長市場中實現我們的目標。

As part of this change and after over a decade, Gabi Shriki will be stepping down as Head of Audio-Video Business. Gabi has been instrumental in establishing and growing the Audio-Video business from the ground up and has played a pivotal role in positioning Valens as the unrivalled leader in professional Audio-Video connectivity. On behalf of the Valens team, I would like to thank Gabi for his outstanding dedication and vast contributions to the company. The new Head of Cross Industry Business whose name will be disclosed at a later date will join Valens starting February 16, 2025. Gabi will remain at Valens for a period of time to facilitate a smooth transition.

作為這項變革的一部分，十多年後，Gabi Shriki 將辭去音訊視訊業務主管的職務。Gabi 在從頭開始建立和發展音訊視訊業務方面發揮了重要作用，並在將 Valens 定位為專業音訊視訊連接領域無與倫比的領導者方面發揮了關鍵作用。我謹代表 Valens 團隊感謝 Gabi 對公司的傑出奉獻和巨大貢獻。新任跨產業業務主管將於 2025 年 2 月 16 日起加入 Valens，其姓名將於稍後公佈。加比將留在瓦倫斯一段時間，以促進平穩過渡。

Next, I'll talk about Automotive. We are thrilled to have achieved three design wins with leading European OEMs this quarter. The OEMs are expected to begin integrating our VA7000 chipsets into certain vehicle models starting in 2026 with further acceleration in 2027 and 2028. Automotive OEMs take a measured approach when introducing new safety critical ADAS features. They often integrate them into limited vehicle models first before deploying across broader vehicle line-ups.

接下來我要談談汽車。我們很高興本季與歐洲領先的 OEM 廠商取得了三項設計勝利。預計 OEM 廠商將從 2026 年開始將我們的 VA7000 晶片組整合到某些車型中，並在 2027 年和 2028 年進一步加速。汽車 OEM 在引入新的安全關鍵 ADAS 功能時採取謹慎的方法。他們通常首先將其整合到有限的車型中，然後再部署到更廣泛的車型系列中。

We believe these wins show that our superior technology is advancing the MIPI A-PHY global standard for high-performance connectivity. Importantly, we believe this position us for future design wins with other OEMs looking to adopt this standard. Furthermore, we believe these design wins should strengthen our partnerships with leading Tier-1 suppliers who have more evidence of our superior technology. We remain confident that additional Tier-1s will promote our solutions as the preferred connectivity standard for their other OEM customers.

我們相信這些勝利表明我們的卓越技術正在推進 MIPI A-PHY 全球高性能連接標準。重要的是，我們相信這一點將使我們在未來的設計中贏得其他希望採用該標準的 OEM 廠商的青睞。此外，我們相信這些設計勝利應該會加強我們與領先的一級供應商的合作關係，他們有更多證據證明我們的卓越技術。我們仍然相信，更多的一級供應商將推廣我們的解決方案，使其成為其他 OEM 客戶的首選連接標準。

Since the announcement, we have received many questions as to why we can't disclose the names of the OEMs. It is common practice in the automotive industry for OEMs to avoid revealing the technology inside their cars at least until the start of production. This is also true for Tier-2 suppliers like us who need to protect the OEM customers' development of new technologies which is an important competitive advantage to them. Our goal over the next 12 to 24 months is to support the recent design wins and to receive new wins. We currently have several evaluation processes with multiple OEMs in various stages.

自從公告發布以來，我們收到了很多關於為什麼我們不能透露原始設備製造商名稱的問題。汽車行業的常見做法是，原始設備製造商至少在開始生產之前避免透露其汽車內部的技術。對於像我們這樣的二級供應商也是如此，他們需要保護 OEM 客戶的新技術開發，這對他們來說是一個重要的競爭優勢。我們未來 12 到 24 個月的目標是支持最近的設計成果並獲得新的成果。目前，我們與處於不同階段的多個原始設備製造商有多個評估流程。

I would like to take this opportunity to thank Gideon Kedem, Head of our Automotive Business for his instrumental role in securing these three pivotal design wins. As he prepares to retire at the end of 2024, we would like to recognize his dedication and success in positioning Valens as a key player in Automotive connectivity. Gideon Kedem's tenure at Valens has been marked by exceptional leadership, dedication, and an unwavering focus on advancing our automotive business. I would like to thank Gideon Kedem for waiting with his personal retirement plans until achieving his goal of securing new design wins for Valens.

我想藉此機會感謝我們的汽車業務主管 Gideon Kedem 在確保這三項關鍵設計勝利方面所發揮的重要作用。在他準備於 2024 年底退休之際，我們對他的奉獻精神和將 Valens 定位為汽車互聯領域關鍵參與者的成功表示認可。Gideon Kedem 在 Valens 的任期內表現出卓越的領導力、奉獻精神以及堅定不移地致力於推進我們的汽車業務。我要感謝 Gideon Kedem 等待他的個人退休計劃，直到實現為 Valens 贏得新設計的目標。

After laying the foundation for future success, he's now ready to pass on the leadership of the Automotive Business. Effective January 1, 2025, Adar Segal will assume the role as Head of Automotive Business. Adar joins Valens with over 20 years of expertise in technology-driven sales, complex deal structures, and partnerships across multiple high tech industries. We're confident in his ability to drive our automotive strategic growth. Gideon Kedem will remain at Valens for a period of time to facilitate a smooth transition.

在為未來的成功奠定基礎後，他現在已準備好交接汽車業務的領導權。自 2025 年 1 月 1 日起，Adar Segal 將擔任汽車業務主管。Adar 加入 Valens 後，在技術驅動型銷售、複雜交易結構以及跨多個高科技行業的合作夥伴關係方面擁有 20 多年的專業知識。我們對他推動我們汽車策略成長的能力充滿信心。吉迪恩·凱德姆將留在瓦倫斯一段時間，以促進平穩過渡。

Turning to our first-generation automotive chipsets, the VA6000, business with our legacy automotive customer Mercedes Benz remains on track. In the trucking segment, we're making progress in field trials with Stoneridge.

談到我們的第一代汽車晶片組 VA6000，與我們的傳統汽車客戶梅賽德斯奔馳的業務仍處於正軌。在卡車運輸領域，我們與 Stoneridge 的現場試驗取得了進展。

Turning to a brief update on the MIPI A-PHY standard. We are pleased that A-PHY is gaining wider adoption beyond OEMs. For example, Continental, a leading global automotive supplier, introduced an 8-megapixel camera that deploys MIPI A-PHY's connectivity, further expanding the A-PHY ecosystem within the automotive industry. Also, companies in test and measurement systems are using Valens' chipsets in their connectivity solutions. Recently, the MIPI Alliance highlighted the large and rapidly growing ecosystem supporting A-PHY technology.

接下來是 MIPI A-PHY 標準的簡短更新。我們很高興 A-PHY 得到了 OEM 以外的更廣泛的採用。例如，全球領先的汽車供應商大陸集團推出了一款部署 MIPI A-PHY 連接性的 800 萬像素攝影機，進一步擴展了汽車產業內的 A-PHY 生態系統。此外，測試和測量系統公司也在其連接解決方案中使用 Valens 的晶片組。最近，MIPI 聯盟強調了支持 A-PHY 技術的龐大且快速成長的生態系統。

Currently, 32 companies are developing products based on this standard according to public announcements. We're excited to see meaningful progress in our automotive business. This is a vast long-term opportunity with an expected TAM of $4.5 billion per year by 2029.

據公告顯示，目前已有32家公司正在開發基於該標準的產品。我們很高興看到我們的汽車業務取得有意義的進展。這是一個巨大的長期機遇，預計到 2029 年每年 TAM 將達到 45 億美元。

With that, I will turn the call to Guy to discuss our financial performance in more detail.

接下來，我將致電蓋伊，更詳細地討論我們的財務表現。

Thank you, Gideon. I'll start with our third-quarter of 2024 results and then provide our outlook for the fourth-quarter and full year of 2024.

謝謝你，吉迪恩。我將從 2024 年第三季的業績開始，然後提供我們對 2024 年第四季和全年的展望。

We achieved quarterly revenues of $16 million, exceeding our guidance of between $14.7 million to $15.4 million, of which Acroname contributed $1.6 million, exceeding our guidance of $1.2 million to $1.4 million. This compares to revenues of $13.6 million in the second quarter of 2024 and $14.2 million in the third quarter of 2023.

我們實現了 1,600 萬美元的季度收入，超出了 1,470 萬美元至 1,540 萬美元的指導，其中 Acroname 貢獻了 160 萬美元，超出了 120 萬美元至 140 萬美元的指導。相較之下，2024 年第二季的營收為 1,360 萬美元，2023 年第三季的營收為 1,420 萬美元。

The Audio-Video segment including Acroname contributed $9.4 million or approximately 60% of total revenues, and automotive contributed $6.6 million or approximately 40% of total revenues this quarter. This compares to Audio-Video revenues of $8.1 million and automotive revenues of $5.5 million, representing 60% and 40% of total revenues respectively in the second quarter of 2024 and $9.7 million of Audio-Video and Automotive revenues of $4.5 million, representing 70% and 30% of total revenue respectively in the third quarter of 2023.

本季度，包括 Acroname 在內的音訊視訊業務貢獻了 940 萬美元，約佔總收入的 60%，汽車業務貢獻了 660 萬美元，約佔總收入的 40%。相較之下，2024 年第二季度，音訊視訊收入為810 萬美元，汽車收入為550 萬美元，分別佔總收入的60% 和40%；音訊視訊和汽車收入為970 萬美元，佔450 萬美元，佔70% 2023年第三季分別佔總營收的30%和30%。

Third quarter 2024 gross profit was $9 million compared to $8.3 million in the second quarter of 2024, and compared to $8.3 million in the third quarter of 2023. Third-quarter 2024 gross margin was 56.4% compared to our guidance of range between 52% and 53%. This compared to 61.4% in the second quarter of 2024 and compared to 58.9% in the third quarter of 2023. On a segment basis, our audio-video growth margin was 70.2% and automotive gross margin was 37% compared to 75.4% and 40.9% respectively in the second quarter of 2024 and 75.8% and 21.6% respectively in the third quarter of 2023.

2024 年第三季的毛利為 900 萬美元，而 2024 年第二季的毛利為 830 萬美元，2023 年第三季的毛利為 830 萬美元。2024 年第三季毛利率為 56.4%，而我們的指引範圍為 52% 至 53%。相比之下，2024 年第二季為 61.4%，2023 年第三季為 58.9%。以細分市場來看，我們的影音毛利率為70.2%，汽車毛利率為37%，而2024年第二季分別為75.4%及40.9%，2023年第三季分別為75.8%及21.6% 。

The increase in the Automotive gross margin compared to the third quarter of 2023 was due to improvement in our chip costs. The decrease in Audio-Video growss margin was due to product mix shift and lower fixed cost absorption. Non-GAAP gross margin was 60.7% compared to 64.5% in the second quarter of 2024, and compared to 61.1% in the third quarter of 2023. Operating expenses in the third quarter of 2024 totaled $21.3 million compared to $17.8 million at the end of the second quarter of 2024, and compared to $21.3 million in the third quarter of 2023.

與 2023 年第三季相比，汽車毛利率的成長是由於我們的晶片成本的改善。音訊視訊成長利潤率的下降是由於產品結構的轉變和固定成本吸收的降低。非 GAAP 毛利率為 60.7%，而 2024 年第二季為 64.5%，2023 年第三季為 61.1%。2024 年第三季的營運費用總計為 2,130 萬美元，而 2024 年第二季末的營運費用為 1,780 萬美元，2023 年第三季的營運費用為 2,130 萬美元。

Research and Development expenses totaled $10.3 million compared to $10 million in the second quarter of 2024, and compared to $13.4 million in the third quarter of 2023. SG&A expenses were $10.7 million compared to $7.8 million in the second quarter of 2024 and compared to $7.9 million in the third quarter of 2023. The increase was mainly driven by a $2.2 million expenses due to a certain batch production incident.

研發費用總計 1,030 萬美元，而 2024 年第二季為 1,000 萬美元，2023 年第三季為 1,340 萬美元。SG&A 費用為 1,070 萬美元，而 2024 年第二季為 780 萬美元，2023 年第三季為 790 萬美元。這一增長主要是由於某批生產事故導致的 220 萬美元費用所致。

The third quarter of 2024 GAAP net loss was $10.4 million versus a net loss of $8.9 million recorded in the second quarter of 2024 and versus a net loss of $12.5 million recorded in the third quarter of 2023. Adjusted EBITDA in the third quarter of 2024 was a loss of $5.1 million compared to the guidance range of a loss between $6.8 million and $6.3 million. This compared to adjusted EBITDA loss of $5.2 million in the second quarter of 2024 and $8.8 million in the third quarter of 2023.

2024 年第三季 GAAP 淨虧損為 1,040 萬美元，而 2024 年第二季淨虧損為 890 萬美元，2023 年第三季淨虧損為 1,250 萬美元。2024 年第三季調整後 EBITDA 虧損 510 萬美元，而指引虧損範圍為 680 萬美元至 630 萬美元。相較之下，2024 年第二季調整後 EBITDA 損失為 520 萬美元，2023 年第三季調整後 EBITDA 損失為 880 萬美元。

GAAP Loss per share for the third quarter of 2024 was $0.10 compared to GAAP loss per share of $0.08 for the second quarter of 2024, and compared to $0.12 for the third quarter of 2023. Non-GAAP loss per share in the third quarter of 2024 was $0.03 compared to a loss per share of $0.04 in the second quarter of 2024, and compared to $0.08 in the third quarter of 2023. The main difference between GAAP and Non-GAAP loss per share was due to stock-based compensation, depreciation and amortization, and to a certain batch production incident expenses.

2024 年第三季的 GAAP 每股虧損為 0.10 美元，而 2024 年第二季的 GAAP 每股虧損為 0.08 美元，2023 年第三季的 GAAP 每股虧損為 0.12 美元。2024 年第三季的非 GAAP 每股虧損為 0.03 美元，而 2024 年第二季的每股虧損為 0.04 美元，2023 年第三季的每股虧損為 0.08 美元。公認會計原則和非公認會計原則每股虧損的主要差異是由於股票補償、折舊和攤銷以及某些批量生產事件費用造成的。

We ended the third quarter of 2024 with strong balance sheet with cash, cash equivalents, and short-term deposits totaling $133.1 million and no debt. This compared to $130.6 million at the end of the second quarter of 2024 and $142 million at the end of 2023. Our working capital at the end of the quarter was $136.1 million compared to $142.3 million at the end of the second quarter of 2024 and $158.8 million at the end of 2023. Our inventory as of September 30, 2024 was $11.7 million, down versus $14.1 million on June 30, 2024, and $13.8 million on December 31, 2023.

截至 2024 年第三季度，我們的資產負債表強勁，現金、現金等價物及短期存款總計 1.331 億美元，無負債。相較之下，2024 年第二季末為 1.306 億美元，2023 年末為 1.42 億美元。截至本季末，我們的營運資本為 1.361 億美元，而 2024 年第二季末為 1.423 億美元，2023 年末為 1.588 億美元。截至 2024 年 9 月 30 日，我們的庫存為 1,170 萬美元，低於 2024 年 6 月 30 日的 1,410 萬美元和 2023 年 12 月 31 日的 1,380 萬美元。

Now, I would like to provide our guidance for the fourth quarter and full year 2024. We expect fourth quarter revenues to be in the range of $16 million to $16.3 million. We expect gross margins for the fourth quarter to be in the range of 58% to 62%, and we expect Adjusted EBITDA loss in the fourth quarter to be in the range of $4.9 million to $4 million. For the full year 2024, we expect revenue to be in the range of $57.2 million to $57.5 million. Gross margins are expected to be in the range of 58% to 60%. And adjusted EBITDA loss is expected to be in the range of $22.3 million to $21.4 million.

現在，我想提供我們對 2024 年第四季和全年的指導。我們預計第四季營收將在 1,600 萬美元至 1,630 萬美元之間。我們預計第四季度的毛利率將在 58% 至 62% 之間，我們預計第四季度調整後 EBITDA 損失將在 490 萬美元至 400 萬美元之間。2024 年全年，我們預計收入將在 5,720 萬美元至 5,750 萬美元之間。毛利率預計在58%至60%之間。調整後的 EBITDA 損失預計在 2,230 萬美元至 2,140 萬美元之間。

I'll now turn the call back to Gideon for his closing remarks before opening the call for Q&A.

現在，我將把電話轉回給吉迪恩，讓他作結束語，然後再開始問答電話。

Thank you, Guys. Valens Semiconductor is a strong position to grow across our target markets with our industry-leading technology and fortress balance sheet. We look forward to executing our long-term strategy and restoring growth and profitability.

謝謝你們，夥計們。Valens Semiconductor 憑藉著業界領先的技術和堡壘般的資產負債表，在我們的目標市場中擁有強大的發展優勢。我們期待執行我們的長期策略並恢復成長和獲利能力。

As a reminder, we are hosting our first ever Investor Day in Midtown New York next week on Tuesday, November 12, at noon. At this event, we will discuss our enhanced strategic plans and long-term financial objectives, our expanded go-to market strategy focused on high-growth industries and applications. We will also be demonstrating our advanced technology and sharing video testimonials from leading customers and partners. If you're interested in attending, please email Michal at investors@valens.com.

謹此提醒，我們將於下週 11 月 12 日星期二中午在紐約市中心舉辦首屆投資者日活動。在本次活動中，我們將討論我們增強的策略計畫和長期財務目標，以及我們專注於高成長產業和應用的擴大的市場進入策略。我們還將展示我們的先進技術並分享來自領先客戶和合作夥伴的影片推薦。如果您有興趣參加，請發送電子郵件至 Investors@valens.com 與 Michal 聯繫。

Before opening the call for questions. I want to express my gratitude to the entire Valens team for their ongoing commitment and dedication.

在開始提問之前。我要對整個 Valens 團隊的持續承諾和奉獻表示感謝。

With that, I will now open the call for your questions. Operator.

現在我將開始電話詢問大家的問題。操作員。

(Operator Instructions)

（操作員說明）

Suji Desilva, Roth Capital.

蘇吉·德西爾瓦，羅斯資本。

So Gideon, the visibility here -- or Guy, the visibility here with the inventories being worked down, do you feel you're at a point now where you can shift to demand to consumption again, starting in '25 or certain pockets of inventory still remain to be worked down.

所以，吉迪恩，這裡的可見性，或者蓋伊，這裡的可見性，隨著庫存的減少，你是否覺得現在可以從 25 年或某些庫存開始，再次從需求轉向消費？ 。

First, thank you, Suji. And I want to thank everyone that after such an interesting day, you found the time and hearing us. I guess, we cannot compete the interest that you have in news, and I do appreciate that you still decided to devote your time for this earnings call. And the answer is, yes, the visibility is improving. And I believe that it's improving because of several reasons.

首先，謝謝你，蘇吉。我要感謝大家，在度過瞭如此有趣的一天之後，你們抽出時間來聽我們的講話。我想，我們無法與您對新聞的興趣競爭，我非常感謝您仍然決定投入時間參加本次財報電話會議。答案是，是的，可見度正在提高。我相信，由於多種原因，情況正在改善。

One of them is the sales cycle has shrunk. We are -- the time to order chips is not as bad as we had in the past during the COVID that the supply chain went up at least sometimes to 40 weeks, and it's not the case anymore. On the other hand, we have no interest. So a lot of the purchaser having consideration that zero interest is over. So there are pros and cons in the change of the mannerism of making an order.

其中之一是銷售週期縮短。我們——訂購晶片的時間並不像過去在新冠疫情期間那麼糟糕，供應鏈有時至少會延長到 40 週，但現在情況已經不再是這樣了。另一方面，我們沒有興趣。因此，許多買家認為零利率已經結束。所以改變下單方式有利也有弊。

Yeah, we feel that we have some visibility of recovering the market. We don't give yet the whole forecast for where it is, but we invite everyone to come next week to our, I think, very interesting Investor Day, maybe better competition to the news that the one we can bring today. And I'll be happy to elaborate more then. I hope it answered you, Suji.

是的，我們覺得我們有一定的恢復市場的能力。我們還沒有給出整體預測，但我們邀請大家下週參加我們的，我認為，非常有趣的投資者日，也許比我們今天帶來的消息有更好的競爭。然後我很樂意詳細說明。我希望它能回答你，蘇吉。

Yes, that's very helpful. We look forward to that. And then the Acroname acquisition. Can you talk about how that integration is going and what the end market initial traction there is? And more interestingly, the industrial machine vision, what's the design cycle there? How quickly can new programs be won and ramped?

是的，這非常有幫助。我們對此充滿期待。然後是 Acroname 收購。您能否談談整合的進展以及終端市場的初步吸引力是什麼？更有趣的是，工業機器視覺的設計週期是怎麼樣的呢？新計畫的贏得和推廣要多快？

Yeah, a lot of the sales of Acroname are ad hoc. A lot of them are like someone needs, and it simply goes to the Internet and makes an order, very, very different than the process that we have. And the main surprise that we have with Acroname is we have no surprises. It looks like everything that we saw in the due diligence seems to be very transparent.

是的，Acroname 的許多銷售都是暫時的。其中許多就像有人需要的那樣，它只是進入互聯網並下訂單，這與我們的流程非常非常不同。Acroname 最大的驚喜是我們沒有驚喜。看起來我們在盡職調查中看到的一切似乎都非常透明。

I think I hope it's both sides. I hope they're also -- they feel the same with us. I think they are. And the -- it looks as promised. And -- they have some sales which are B2B and are more kind of, as you said, an order, but the rest are simply they need -- the customer makes an order of 5 or 10 or whatever, sometimes more, and press the button and get it after some days.

我想我希望雙方都是如此。我希望他們也和我們有同樣的感覺。我認為他們是。而且——看起來就像承諾的那樣。而且 - 他們有一些 B2B 銷售，正如你所說，更像是訂單，但其餘的只是他們需要 - 客戶下訂單 5 或 10 或其他，有時更多，然後按按鈕並在幾天后獲得它。

This is the kind of the Acroname sales cycle, so it's not typical. It's very different than the semiconductor industry.

這是 Acroname 的銷售週期，因此並不典型。這與半導體產業有很大不同。

Okay. That's helpful. And then switching to auto on the OEM wins, just a clarification here. Are these programs, the three you've discussed, are they EV-only programs? Or are these across a platform of EV, hybrid, traditional combustion? Any color there would be helpful.

好的。這很有幫助。然後在 OEM 獲勝時切換到汽車，這裡只是澄清一下。您討論的這三個項目是純電動車專案嗎？或者這些是跨電動車、混合動力、傳統的燃燒平台嗎？任何顏色都會有幫助。

Well, there is no difference in ADAS in EV and non-EV. And even the electromagnetic influence of EV car in our case is not so different. So for us, it doesn't matter. And if we look, for instance, in what we do with Mercedes for many years, it goes both for the S and C and E-Series and the same as the EQ series, and it's the same.

嗯，電動車和非電動車的 ADAS 沒有區別。在我們的案例中，甚至連電動車的電磁影響也沒有那麼不同。所以對我們來說，這並不重要。例如，如果我們看看我們多年來對梅賽德斯所做的事情，我們會發現 S、C 和 E 系列都是如此，EQ 系列也是如此，而且都是一樣的。

So the EV is not any distinguish for us in the OEM, it's the same. It's ADAS. And ADAS is -- people in gasoline and EV cars want to be protected in the same way, and the OEMs want to protect in the same way.

因此，EV 對於我們 OEM 來說沒有任何區別，它是相同的。這是高級駕駛輔助系統。ADAS 是——汽油車和電動車中的人們希望以同樣的方式受到保護，原始設備製造商也希望以同樣的方式提供保護。

And then last question, I'll switch on. For Guy, perhaps, the gross margin trend here, what is the expectation going into '25? Is it mix driven? Or are there gross margin tailwinds? Any color there would be helpful.

最後一個問題，我將打開。對蓋伊來說，也許，這裡的毛利率趨勢，對 25 年的預期是什麼？是混合驅動的嗎？或者毛利率有提升嗎？任何顏色都會有幫助。

Okay. Suji, great to meet you again. So we do not provide specific guidance at this point for the gross margin for the future. What I can say that typically our gross margin are impacted by the ratio between the revenue coming from the audio-video and the automotive. There is significant difference of the gross margin between these two business units as well as the level of the revenues due to the fixed costs. So this is the main principle that will be relevant for the future as well.

好的。蘇吉，很高興再次見到你。因此，我們目前不為未來的毛利率提供具體指引。我可以說，我們的毛利率通常受到影音收入和汽車收入之間比率的影響。由於固定成本的原因，這兩個業務部門的毛利率以及收入水準有顯著差異。因此，這是與未來相關的主要原則。

Kevin Cassidy, Rosenblatt.

凱文·卡西迪，羅森布拉特。

Congratulations on the strong results. During the quarter, did you have any 10%-plus customers? And maybe my follow-on question is going to be with the all-new designs in your pipeline, do you see this changing? Or are you expecting this to be a broad-based growth? Or is there going to be a few customers that will lead the way?

祝賀取得了優異的成績。本季度，您是否有超過 10% 的客戶？也許我的後續問題將是關於您管道中的全新設計，您認為這種情況會改變嗎？或者您預計這是一個基礎廣泛的成長？或是會有一些客戶帶路？

Sorry, can you repeat the question? It was -- I hear this quite rough, if you can repeat the questions, please for me?

抱歉，您能重複這個問題嗎？這是——我聽得很粗糙，如果你能幫我重複這些問題嗎？

Sure. Did you have any customers that were more than 10% of revenue during the quarter?

當然。您是否有任何客戶佔本季營收的 10% 以上？

Guy will take this one.

蓋伊會接受這個。

So no, the simple answer is no.

所以不，簡單的答案是否定的。

Okay. And then my follow-on question is with your design pipeline that you have, do you see this changing? Are there certain customers that would be growing faster? Or do you expect this to be a broad-based growth?

好的。然後我的後續問題是您的設計流程，您認為這種情況會改變嗎？是否有某些客戶會成長得更快？或者您預計這將是一個基礎廣泛的成長？

Are you referring to the automotive customers or to the audio-video customers?

您指的是汽車客戶還是影音客戶？

Both, your total revenue. Is there going to be one customer that leads the way?

兩者都是您的總收入。是否會有一位客戶帶路？

Well, definitely no. The difference between the sales in audio-video and automotive are the difference of climbing on the mountain and climbing on a reef and it's -- in automotive, every deal is a huge deal, takes a long time. It's a climb cliff. And then it's a big cliff. And mountain it step by step, another account and another account.

嗯，絕對不是。音像行業和汽車行業的銷售之間的區別就像爬山和爬礁石的區別，在汽車行業，每筆交易都是一筆大交易，需要很長時間。這是一個攀爬懸崖。然後就是一個大懸崖。一步一步往山上走，又一個帳又一個帳。

So every time we have an OEM, it will influence in the future as a significant percentage like can be 5%, 7%, whatever percent of the revenues at once. It's not step by step. While in the audio-video and the industrial, the customers are in the magnitude between whatever, $1 million and $5 million. So they are never a big percentage as they can be in automotive. It's very much belongs to the characteristic of the customer, whether it's automotive or not.

因此，每次我們擁有 OEM 時，它都會對未來產生很大的影響，例如可以是 5%、7%，無論是佔收入的百分比。這不是一步一步來的。在影音和工業領域，客戶規模在 100 萬美元到 500 萬美元之間。因此，它們所佔的比例從來都不像汽車產業那麼大。這在很大程度上屬於客戶的特徵，無論是否是汽車。

But as far as we see in the long term, there are no risk of being company dependent in a single customer in the coming years. I hope never.

但從長遠來看，未來幾年公司不存在依賴單一客戶的風險。我希望永遠不會。

(Operator Instructions) Dustin Fowler, Oppenheimer.

（操作員說明）達斯汀·福勒，奧本海默。

This is Dustin on for Rick Schafer. I just had one quick question. On the call, I think you said Stoneridge is on track. Can you just remind us on the timing and the opportunity size there?

我是達斯汀 (Dustin) 替補瑞克謝弗 (Rick Schafer)。我只有一個簡單的問題。在電話中，我想你說斯通里奇正在步入正軌。您能提醒我們時機和機會大小嗎？

Thank you for the question. And actually, it's an excellent question. You help me by asking me this question, and I'm thankful. This was a long shot with Stoneridge, and it took a long time to do -- to start the pilot and to make the pilot and to generate forecast and so forth. But we've been patient.

謝謝你的提問。事實上，這是一個很好的問題。你問我這個問題幫助了我，我很感激。對於斯通里奇來說，這是一個遙遠的目標，並且花了很長時間來完成——啟動試點、進行試點並產生預測等等。但我們一直很有耐心。

And it seems like that the truck industry, it will never be as big as the regular automotive industry, but the truck industry will reward us. And Stoneridge made a very successful pilot, and the customers were very happy with the results and the feature. It's a very important feature for a truck driver. And we believe that although it took time, and we see in automotive world, the world -- although it takes time is probably an initial of every sentence. But although it took time, it is going to be a fruitful market for us, and I'm happy we stick to it, and we'll see results.

卡車行業似乎永遠不會像普通汽車行業那麼大，但卡車行業會給我們帶來回報。Stoneridge 進行了一次非常成功的試點，客戶對結果和功能非常滿意。對於卡車司機來說，這是一個非常重要的功能。我們相信，儘管需要時間，我們在汽車世界中看到，這個世界——儘管需要時間可能是每句話的首字母。儘管這需要時間，但這對我們來說將是一個富有成效的市場，我很高興我們堅持下去，我們會看到結果。

Furthermore, we have now achieved the 700R, which is suitable for further features specifically for the truck industry. And we consider it, and we'll speak about it next week in the investor event, we see the truck industry as a real segment. So please come and hear in a week from us the details that I believe will be -- you find very interesting.

此外，我們現在已經實現了 700R，它適用於專門針對卡車行業的更多功能。我們會考慮這一點，我們將在下週的投資者活動中討論這一點，我們將卡車行業視為一個真正的細分市場。因此，請在一周後來聽聽我們的詳細信息，我相信您會發現非常有趣。

There are no further questions at this time. Mr. Ben-Zvi, would you like to make your concluding statement?

目前沒有其他問題。Ben-Zvi 先生，您願意做總結發言嗎？

Yes, I would. And I want to thank again all for your continued interest in Valens, and we hope you will be joining our Investor Day in New York next week. And I wish you have a great day, and I guess it's going to be an interesting day for all. So all the best, and goodbye.

是的，我會的。我想再次感謝大家對 Valens 的持續關注，我們希望您能參加下週在紐約舉行的投資者日。我祝您度過愉快的一天，我想這對所有人來說都將是有趣的一天。祝一切順利，再見。

Thank you. This concludes the Valens Semiconductor results conference call. Thank you for your participation. You may go ahead and disconnect.

謝謝。Valens Semiconductor 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線。