Vuzix Corp (VUZI) 2022 Q4 法說會逐字稿

Greetings, and welcome to the Vuzix Fourth Quarter and Full Year ending December 31, 2022, Financial Results and Business Update Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加截至 2022 年 12 月 31 日的 Vuzix 第四季度和全年財務業績和業務更新電話會議。 （操作員說明）提醒一下，正在錄製此會議。

It's now my pleasure to turn the call over to Ed McGregor, Director of Investor Relations at Vuzix. Mr. McGregor, please go ahead.

現在我很高興將電話轉給 Vuzix 投資者關係總監 Ed McGregor。麥格雷戈先生，請繼續。

Good afternoon, everyone, and welcome to Vuzix's Fourth Quarter and 2022 Full Year ending December 31 Financial Results and Business Update Conference Call. With us today are Vuzix's CEO, Paul Travers; and our CFO, Grant Russell.

大家下午好，歡迎來到 Vuzix 截至 12 月 31 日的第四季度和 2022 年全年財務業績和業務更新電話會議。今天和我們在一起的有 Vuzix 的首席執行官 Paul Travers；以及我們的首席財務官 Grant Russell。

Before I turn the call over to Paul, I would like to remind you that on this call, management's prepared remarks may contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements during the question-and-answer session. Therefore, the company claims the protection of the safe harbor for forward-looking statements that are contained in the Private Securities Litigation Reform Act of 1995.

在我把電話轉給保羅之前，我想提醒你，在這次電話會議上，管理層準備好的言論可能包含前瞻性陳述，這些陳述受風險和不確定性的影響，管理層可能會在問題期間做出額外的前瞻性陳述- 和回答會話。因此，公司要求對 1995 年《私人證券訴訟改革法案》中包含的前瞻性陳述提供安全港保護。

Actual results could differ materially from those contemplated by any forward-looking statements as a result of certain factors, including, but not limited to, general economic and business conditions, competitive factors, changes in business strategy or development plans, the ability to attract and retain qualified personnel as well as changes in the legal and regulatory requirements.

由於某些因素，實際結果可能與任何前瞻性陳述所預期的結果存在重大差異，這些因素包括但不限於一般經濟和商業狀況、競爭因素、業務戰略或發展計劃的變化、吸引和保留合格人員以及法律和法規要求的變化。

In addition, any projections as to the company's future performance represent management's estimates as of today, March 1, 2023. Vuzix assumes no obligation to update these projections in the future as market conditions change.

此外，對公司未來業績的任何預測均代表管理層截至 2023 年 3 月 1 日的估計。Vuzix 不承擔在未來隨著市場條件的變化而更新這些預測的義務。

This afternoon, the company issued a press release announcing its final 2022 financial results and filed its 10-K with the SEC. So participants on this call who may not have already done so may wish to look at those documents as the company will provide a summary of the results discussed on today's call.

今天下午，該公司發布了一份新聞稿，宣布了其 2022 年最終財務業績，並向美國證券交易委員會提交了 10-K 報告。因此，可能尚未這樣做的本次電話會議參與者可能希望查看這些文件，因為公司將提供今天電話會議討論結果的摘要。

Today's call may include certain non-GAAP financial measures. When required, reconciliation to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in the company's Form 10-K annual filing at sec.gov, which is also available at www.vuzix.com.

今天的電話會議可能包括某些非 GAAP 財務指標。如有需要，可在公司 sec.gov 上的 10-K 表格年度申報中找到與根據 GAAP 計算和列報的最直接可比財務指標的對賬，該表格也可在 www.vuzix.com 上查閱。

I'll now turn the call over to Vuzix CEO, Paul Travers, who will give an overview of the company's operating results and business outlook. Paul will then turn the call over to Grant Russell, Vuzix's CFO, who'll provide an overview of the company's fourth quarter and full year financial results. Paul will then return to make some closing remarks, after which we'll move on to the Q&A session. Paul?

我現在將電話轉給 Vuzix 首席執行官 Paul Travers，他將概述公司的經營業績和業務前景。然後，Paul 會將電話轉給 Vuzix 的首席財務官 Grant Russell，他將概述公司第四季度和全年的財務業績。然後 Paul 將返回做一些結束語，之後我們將進入問答環節。保羅？

Thank you, Ed. Hello, everyone, and welcome to the Vuzix Q4 and Full Year 2022 Conference Call. On this call, we're going to review our results and recent developments and then give you some perspective on where we see things headed. It bears repeating that the use of augmented reality by most business organizations and, ultimately, consumers remains the wave of the future.

謝謝你，埃德。大家好，歡迎來到 Vuzix Q4 和 2022 年全年電話會議。在這次電話會議上，我們將回顧我們的結果和最近的發展，然後讓您對我們看到的事情的發展方向有一些看法。值得重申的是，大多數商業組織以及最終消費者對增強現實的使用仍然是未來的趨勢。

Despite the technical challenges encountered when making AR glasses and their uneven and unpredictable adoption curve seen to date, most entities around the world are realigning their future strategies around AR glasses with AI. The expected ubiquitous use of AI across applications in areas such as education, e-commerce, health care, communications, defense, security and more that hand the glove with AR smart glasses, examples like visual search, language translation, voice control, the list goes on and on. This marriage of technology will accelerate the need and use cases for lightweight wearable displays.

儘管在製造 AR 眼鏡時遇到了技術挑戰，並且迄今為止看到它們的採用曲線參差不齊且不可預測，但世界上大多數實體都在圍繞 AR 眼鏡與 AI 重新調整其未來戰略。預計 AI 在教育、電子商務、醫療保健、通信、國防、安全等領域的應用程序中無處不在，AR 智能眼鏡的使用範圍更廣，例如視覺搜索、語言翻譯、語音控制、列表等繼續下去。這種技術結合將加速輕型可穿戴顯示器的需求和用例。

Vuzix is an AR smart glasses optics and display engine pioneer. The company was built from the ground up over the last 25 years to deliver on the larger promise of AR and, as such, is well positioned to participate in this emerging market. Vuzix, as a recognized leader in smart glasses, now also offers OEM solutions that utilize Vuzix optics, waveguides and display engines.

Vuzix 是 AR 智能眼鏡光學和顯示引擎的先驅。該公司是在過去 25 年中從頭開始建立的，以實現 AR 的更大承諾，因此，在參與這個新興市場方面處於有利地位。作為智能眼鏡領域公認的領導者，Vuzix 現在還提供利用 Vuzix 光學、波導和顯示引擎的 OEM 解決方案。

Over the next 3 slides, I'd like to first give you some color on our 2022 results, followed by our 2022 achievements, which collectively were significant. This will then allow me to paint the bright picture we see for 2023 and beyond. Speaking of which, our first quarter of 2023 is lining up to be one of our best in a decade in terms of revenue. In fact, based on current Q1 2023 shipments and confirmed orders received to date, we will achieve over $3.5 million in product shipments already exceeding each quarter's revenue in 2022.

在接下來的 3 張幻燈片中，我想首先介紹一下我們 2022 年的成果，然後是我們 2022 年取得的成就，這些成就總體上意義重大。這將使我能夠描繪出我們在 2023 年及以後看到的美好圖景。說到這一點，就收入而言，我們 2023 年第一季度有望成為十年來最好的季度之一。事實上，根據目前 2023 年第一季度的出貨量和迄今為止收到的確認訂單，我們將實現超過 350 萬美元的產品出貨量，這已經超過 2022 年每個季度的收入。

Our overall smart glasses product revenue did decline modestly in 2022 compared to the previous year, primarily due to the challenging macro environment and some customer rollout hiccups, although Blade revenue rose year-over-year as a result of strong customer acceptance of Blade 2. Moreover, Smart Glasses demand for businesses related to our largest key accounts, which are being serviced together with ISVs and directly by Vuzix, also grew with warehousing and logistics and health care remaining 2 of our key market verticals. We were also successful in expanding our sales channel through the addition of numerous new distributors across select markets in 2022.

與上一年相比，我們的整體智能眼鏡產品收入在 2022 年確實有所下降，這主要是由於充滿挑戰的宏觀環境和一些客戶推出的小問題，儘管由於客戶對 Blade 2 的強烈接受，Blade 收入同比增長。此外，與 ISV 一起並由 Vuzix 直接提供服務的我們最大的關鍵客戶相關業務的智能眼鏡需求也在增長，而倉儲和物流以及醫療保健仍然是我們主要的兩個垂直市場。我們還通過在 2022 年在特定市場增加眾多新經銷商成功地擴展了我們的銷售渠道。

Last but not least, our product revenue in 2022 included sharply higher sales of waveguides, several magnitudes greater impact versus 2021 levels. Engineering services sales increased substantially in 2022, rising 250% versus the prior year. We planted a lot of seeds in a short amount of time and witnessed widespread account growth with both existing and new defense customers such as L3Harris as well as on the commercial side. One of the more exciting developments in our OEM business has been around our Ultralite platform and the doors it has already opened, which I'll touch on more shortly.

最後但並非最不重要的一點是，我們 2022 年的產品收入包括波導銷售額的大幅增長，與 2021 年的水平相比，影響要大幾個數量級。工程服務銷售額在 2022 年大幅增長，同比增長 250%。我們在短時間內播下了大量種子，見證了 L3Harris 等現有和新國防客戶以及商業方面的廣泛客戶增長。我們 OEM 業務中最令人興奮的發展之一是圍繞我們的 Ultralite 平台及其已經打開的大門，我將在稍後詳細介紹。

Our competitors are spending literally billions of dollars investing in the future of the AR industry. To get this right and stay ahead, Vuzix needs to invest its precious dollars wisely and remain focused on our success. In 2022, we had a number of noteworthy achievements as an organization as we continue to invest in our core competencies in the future. We made significant advancements in our core technology behind closed doors to our waveguide manufacturing processes at 4 to 5 Vuzix position to play a critical role in an industry that is expected to ultimately represent many billions of dollars of revenue annually from consumer OEMs and the like.

我們的競爭對手正在花費數十億美元投資於 AR 行業的未來。為了做到這一點並保持領先地位，Vuzix 需要明智地投資其寶貴的資金並繼續專注於我們的成功。 2022 年，隨著我們在未來繼續投資於我們的核心競爭力，我們作為一個組織取得了許多值得注意的成就。我們在 4 到 5 個 Vuzix 位置的波導製造工藝閉門造車的核心技術取得了重大進展，在一個行業中發揮了關鍵作用，該行業預計最終將代表消費者 OEM 等每年帶來數十億美元的收入。

Most people have no idea of the value of what we have built here at Vuzix around our waveguide intellectual property and production capabilities. For the broader markets to be successful, waveguide manufacturing in volume and at price points that can meet the market requirements are critical, and Vuzix investments in this area have uniquely positioned us to deliver on this need. This is a cornerstone capability to achieving success in the broader markets. And so far, we have not seen any competitors anywhere close to what Vuzix can currently deliver.

大多數人不知道我們在 Vuzix 圍繞我們的波導知識產權和生產能力所建立的價值。為了在更廣闊的市場取得成功，波導的批量生產和價格點能夠滿足市場需求至關重要，而 Vuzix 在這一領域的投資使我們能夠滿足這一需求。這是在更廣闊的市場取得成功的基石能力。到目前為止，我們還沒有看到任何競爭對手接近 Vuzix 目前可以提供的產品。

As part of our waveguide manufacturing expansion, we entered into a lease for an additional 12,000 square feet of manufacturing space adjacent to our existing plant and kicked off upgrades to our waveguide manufacturing capabilities. This new facility is designed to support our latest waveguide technologies, increase our unit capacity and significantly lower the unit cost to manufacture our waveguides for ourselves and, ultimately, our OEM customers.

作為我們波導製造擴張的一部分，我們簽訂了與現有工廠相鄰的額外 12,000 平方英尺製造空間的租約，並開始升級我們的波導製造能力。這個新設施旨在支持我們最新的波導技術，提高我們的單位產能並顯著降低為我們自己以及最終為我們的 OEM 客戶製造波導的單位成本。

On the micro-display front, we entered into a series of agreements with Atomistic, a France-based firm with a novel material science technology related to the development of next-generation micro light-emitting diodes. The combination of atomistic technology and Vuzix see-through waveguides will ultimately deliver full color high-resolution HD solutions. We formalized within our corporate structure and OEM design and manufacturing group, which offers customers one-stop shopping for their advanced and customized waveguide and display engine solutions needs from design assistance to high-volume, cost-effective production capabilities.

在微型顯示器方面，我們與一家總部位於法國的公司 Atomistic 簽訂了一系列協議，該公司擁有與下一代微型發光二極管開發相關的新型材料科學技術。原子技術和 Vuzix 透視波導的結合最終將提供全彩色高分辨率高清解決方案。我們在我們的公司結構和 OEM 設計和製造集團內正式化，為客戶提供一站式採購，以滿足他們從設計協助到大批量、具有成本效益的生產能力的先進和定制波導和顯示引擎解決方案需求。

We successfully developed and integrated miniature AR imaging systems and transferred this technology from the R&D lab into a functional industrial design and product assembly of the Vuzix Ultralite Smart Glasses OEM platform. The Vuzix Ultralite OEM platform was introduced at CES, and it was an eye-opener for many wire consumer electronics and IT firms at CES due to its sleek holiday fashion forward modular design that is highly customizable and can be supported by hundreds of mobile phone-ready applications out of the box.

我們成功開發和集成了微型 AR 成像系統，並將這項技術從研發實驗室轉移到 Vuzix Ultralite 智能眼鏡 OEM 平台的功能性工業設計和產品組裝中。 Vuzix Ultralite OEM 平台在 CES 上推出，由於其時尚的假日時尚前瞻性模塊化設計高度可定制且可由數百款手機支持，它讓 CES 上的許多有線消費電子和 IT 公司大開眼界-開箱即用的應用程序。

In the fourth quarter, we also acquired MoviyntMoviynt, a revenue-generating SaaS solution provider that supports SAP, traditional handheld hardware used in warehousing as well as Vuzix Smart Glasses. The Moviynt solution has already proven to be very sticky for end customers, which are attracted by the simplicity of use and performance of the offering. The Moviynt acquisition also broadens our go-to-market strategy for customers and ISVs within the warehousing and logistics market verticals.

在第四季度，我們還收購了 MoviyntMoviynt，這是一家創收 SaaS 解決方案提供商，支持 SAP、用於倉儲的傳統手持硬件以及 Vuzix 智能眼鏡。 Moviynt 解決方案已被證明對最終客戶非常有吸引力，他們被該產品的易用性和性能所吸引。對 Moviynt 的收購還拓寬了我們在倉儲和物流市場垂直領域為客戶和 ISV 制定的上市戰略。

On the operational side, we invested in staff and infrastructure to help our company scale and to take advantage of the opportunities at hand in the market. We continue to invest in R&D and advance our Smart Glasses product lines. At CES 2023, we demonstrated specific enterprise use cases for 2 new products, Vuzix Shield and the Vuzix M400C, which were in development during 2022. Finally, on the technology and IP side, we increased our patents and patents pending to 278, up 37 from 241 a year ago.

在運營方面，我們投資於員工和基礎設施，以幫助我們的公司擴大規模並利用手頭的市場機會。我們繼續投資於研發並改進我們的智能眼鏡產品線。在 CES 2023 上，我們展示了 2 款在 2022 年開發的新產品 Vuzix Shield 和 Vuzix M400C 的特定企業用例。最後，在技術和 IP 方面，我們的專利和正在申請的專利增加到 278 項，增加了 37 項從一年前的 241。

Again, our first quarter of 2023 is off to a very strong start, and we're bullish on our full year prospects for 2023 as well as we believe we are well positioned to achieve continuing record revenue from our collective product and OEM engineering services.

同樣，我們 2023 年第一季度的開局非常強勁，我們看好 2023 年的全年前景，並且我們相信我們有能力從我們的集體產品和 OEM 工程服務中實現持續創紀錄的收入。

As our business expands, the revenue-generating opportunities are growing with it. We are seeing increased deployments in warehousing and logistics, expanding health care from existing ISVs and multiple new customers, further engagements with blue-chip customers early in their deployment cycles, further expansion of our sales channel in specific regions, increased SaaS revenue from our Moviynt acquisition, additional and larger engagements from defense firms, paths to production for multiple U.S. defense firms, signing of new agreements by OEM and white label firms, development of contracts and initial deployments of Ultralite-based products and more.

隨著我們業務的擴展，創收機會也隨之增加。我們看到倉儲和物流部署增加，現有 ISV 和多個新客戶擴大醫療保健，在部署週期早期與藍籌客戶進一步合作，進一步擴大我們在特定地區的銷售渠道，增加來自 Moviynt 的 SaaS 收入收購、國防公司的更多和更大的參與、多家美國國防公司的生產途徑、原始設備製造商和白標公司簽署新協議、合同的製定和基於 Ultralite 的產品的初始部署等等。

The formalization of our OEM design and manufacturing platform in 2022 helped streamline our OEM efforts to respond to RFIs, or request for inputs, and formal RFQs, request for quotes, for our waveguide-based solutions and, in most cases, display engines to go with them.

我們的 OEM 設計和製造平台在 2022 年的正式化有助於簡化我們的 OEM 工作，以響應 RFI，或輸入請求，以及正式的 RFQ、報價請求，用於我們基於波導的解決方案，在大多數情況下，還包括顯示引擎跟他們。

To deliver on the growing needs for waveguides for these OEM programs and Vuzix's own products, our new and expanded manufacturing facility will bolster advanced capabilities from metrology to capacity. The facility will focus on the advancement of higher index materials, advanced glass substrates and unique formulation technologies, all designed to further address Vuzix and our OEM customer needs. Vuzix, with our manufacturing operations located in Greater Rochester, New York, is well positioned to ultimately be a key supplier to prime defense contractors in needs of waveguides and wearable display technology for a variety of applications.

為了滿足這些 OEM 項目和 Vuzix 自己的產品對波導不斷增長的需求，我們新建和擴建的製造工廠將增強從計量到產能的先進能力。該設施將專注於更高指數材料、先進玻璃基板和獨特配方技術的進步，所有這些都旨在進一步滿足 Vuzix 和我們的 OEM 客戶的需求。 Vuzix 的製造業務位於紐約州大羅徹斯特，最終有望成為主要國防承包商的主要供應商，滿足各種應用對波導和可穿戴顯示技術的需求。

The current geopolitical environment also bolsters the need for U.S.-based suppliers such as Vuzix to offer solutions for outfitting U.S. defense forces along with their humvees and aircraft with heads-up display, optics and waveguide technology that are made in the U.S.A. We believe our OEM offerings will help Vuzix foster business relationships with key defense contractors that will continue to yield follow-on and new OEM programs over the course of 2023 and beyond.

當前的地緣政治環境也促使 Vuzix 等美國供應商需要提供解決方案，為美國國防部隊及其悍馬和飛機配備美國製造的平視顯示器、光學器件和波導技術。我們相信我們的 OEM產品將幫助 Vuzix 與主要國防承包商建立業務關係，這些承包商將在 2023 年及以後繼續產生後續和新的 OEM 計劃。

As mentioned briefly, the Vuzix Ultralite Smart Glasses OEM platform was introduced at CES, and it captured the attention of everyone who saw it. The ability to pack compelling AR technology inside a fashionable industrial design was unexpected until Vuzix made it happen. These glasses were unheard of until now and are appealing to broad market players ranging from the fashion and sports brands to some of the largest Internet search and social media companies out there.

如前所述，Vuzix Ultralite 智能眼鏡 OEM 平台在 CES 上推出，吸引了所有看到它的人的注意。在 Vuzix 實現之前，將引人注目的 AR 技術融入時尚工業設計的能力是出乎意料的。這些眼鏡直到現在還聞所未聞，吸引了從時尚和運動品牌到一些最大的互聯網搜索和社交媒體公司的廣泛市場參與者。

At CES, we showcased a variety of ultralight smart glasses models, ranging from single-color frames, multicolored frames and sunglass versions, the ability for white label or co-brands to customize the Ultralite Smart Glasses OEM platform and turn our design into SKUs as very exciting for the AR, AI smart glasses marketplace. There are multiple critical characteristics that are needed to be successful in the broader markets, and the Vuzix Ultralite platform was designed to cover them all.

在 CES 上，我們展示了多款超輕智能眼鏡型號，包括單色鏡框、多色鏡框和太陽鏡版本，白標或聯名品牌可以定制 Ultralite 智能眼鏡 OEM 平台，並將我們的設計轉化為 SKU 作為AR、AI 智能眼鏡市場非常令人興奮。要在更廣泛的市場取得成功，需要具備多個關鍵特徵，而 Vuzix Ultralite 平台旨在涵蓋所有這些特徵。

64% of the population wears glasses. This must be addressed for the Smart Glasses category to be successful, and Vuzix has IP around prescription-based waveguides that we feel should be able to drop right into the current supply chain for prescriptions. People won't wear glasses that are heavier than 50 grams, and the Vuzix Ultralite platform comes in at approximately 35 grams. People want and need to have choices.

64% 的人口戴眼鏡。要使智能眼鏡類別取得成功，必須解決這個問題，而 Vuzix 擁有基於處方的波導的 IP，我們認為應該能夠將其直接放入當前的處方供應鏈中。人們不會戴重於 50 克的眼鏡，而 Vuzix Ultralite 平台的重量約為 35 克。人們想要並且需要有選擇。

Think about picking out your last pair of prescription glasses or sunglasses. Some people spend hours of time on this endeavor. The Ultralite platform as a platform is designed to be tooled into as many different SKUs as our OEM partners can imagine. People are vain and need fashion-forward glasses, too. There is no way around this. Our Ultralite platform is near indistinguishable from conventional fashion glasses.

考慮挑選最後一副處方眼鏡或太陽鏡。有些人在這項工作上花費數小時。 Ultralite 平台作為一個平台被設計成可以加工成我們的 OEM 合作夥伴所能想像到的盡可能多的不同 SKU。人們很虛榮，也需要時尚前衛的眼鏡。沒有辦法解決這個問題。我們的 Ultralite 平台與傳統時尚眼鏡幾乎沒有區別。

Think about the AR competitors today. Nobody is clamoring to wear a hollow lens or magic leap down the street as a fashion statement, and a one-size-fits-all pair of glasses just doesn't appeal to the broader markets. People need multi-day battery life, and the Ultralite delivers up to 2 days of operation on a single charge. The AR Smart Glasses must deliver a compelling experience and plug and play with the smartphone as an accessory. And here, again, the Ultralite is designed to integrate right into the messaging systems of a smartphone. And with the available SDK, we expect many cool applications will be in the offing.

想想今天的 AR 競爭對手。沒有人吵著要戴空心鏡片或在街上變魔術作為一種時尚宣言，而且一副萬能的眼鏡對更廣泛的市場沒有吸引力。人們需要多天的電池續航時間，而 Ultralite 一次充電可提供長達 2 天的運行時間。 AR 智能眼鏡必須提供引人入勝的體驗，並作為配件與智能手機即插即用。在這裡，Ultralite 再次被設計為直接集成到智能手機的消息系統中。有了可用的 SDK，我們預計許多很酷的應用程序即將問世。

Vuzix Ultralite delivers an array of information to the heads-up display of wearers wirelessly, including turn-by-turn navigation, language transcription, language translation powered by Google, text notifications. And with the addition of AI for visual search and more, the application space becomes endless. Again, the AR Smart Glasses market has been waiting for a breakthrough in the industrial design to deliver compelling technology that is low weight and a form factor that everyone can appreciate, and the Vuzix Ultralite platform delivers just that.

Vuzix Ultralite 以無線方式向佩戴者的平視顯示器提供一系列信息，包括逐嚮導航、語言轉錄、由谷歌提供支持的語言翻譯、文本通知。而隨著視覺搜索等AI的加入，應用空間變得無窮無盡。同樣，AR 智能眼鏡市場一直在等待工業設計的突破，以提供引人注目的技術，重量輕，外形尺寸每個人都能欣賞，而 Vuzix Ultralite 平台正是提供了這一點。

As a result of all of the above, we are now engaged with a number of consumer electronics and fashion brands focused on the Ultralite OEM platform. Although it can take time for all these OEM projects to move into production programs, contributions to the top line are expected to ramp over the balance of this year as programs from consumer OEM customers alongside U.S. and allied defense, homeland security customers come online and move through the process.

由於上述所有原因，我們現在與許多專注於 Ultralite OEM 平台的消費電子產品和時尚品牌進行了合作。儘管所有這些 OEM 項目都需要時間才能進入生產計劃，但隨著消費者 OEM 客戶以及美國和盟國國防、國土安全客戶的計劃上線並轉移，預計對收入的貢獻將超過今年的平衡通過這個過程。

The underlying trend towards enterprise-wide rollouts from numerous key Fortune 100 accounts is a very exciting development for Vuzix and the enterprise smart glasses industry in general. Industry awareness of smart glasses and enterprise is pervasive. Customers are committing to deploying smart glasses-based solutions across their company, and we're very bullish about the growth of our enterprise business in 2023.

許多重要的財富 100 強客戶在企業範圍內推出的潛在趨勢對於 Vuzix 和整個企業智能眼鏡行業來說是一個非常令人興奮的發展。智能眼鏡和企業的行業意識無處不在。客戶承諾在整個公司部署基於智能眼鏡的解決方案，我們非常看好 2023 年企業業務的增長。

Unlike some of the Carl Sagan-esque market research reports predicting more stars than grains of sand on the beach, Deloitte, one of the world's largest and most respected professional services firms, has been in the trenches working with enterprise organizations as they look to wearable technologies to solve problems in supply chain and elsewhere. In their 2022 research report, they expect 75% of enterprise organizations over the next 5 years will be adopting wearable and mobile technology, something Vuzix is finally starting to see firsthand.

與一些卡爾薩根式的市場研究報告預測的星星多於沙灘上的沙粒不同，德勤作為世界上最大和最受尊敬的專業服務公司之一，一直在與企業組織合作，因為他們希望可穿戴設備解決供應鍊和其他地方問題的技術。在他們的 2022 年研究報告中，他們預計未來 5 年內 75% 的企業組織將採用可穿戴和移動技術，Vuzix 終於開始親眼目睹這一點。

A case in point, just yesterday, Ryder Systems, Inc., commonly known as Ryder, who specializes in fleet management, supply chain management and transportation management, started an ad campaign that aired on CNBC during Squawk Box and other shows. This ad was about their approach to ever better their name's slogan and how important it was for their customers' experience. It was great to see them showcasing the Vuzix M400 as a cornerstone for the advanced technology around their e-commerce and inventory management solutions.

一個典型的例子是，就在昨天，專門從事車隊管理、供應鏈管理和運輸管理的 Ryder Systems, Inc.（俗稱 Ryder）發起了一場廣告活動，該活動在 Squawk Box 和其他節目期間在 CNBC 播出。這則廣告是關於他們改善其名稱口號的方法，以及它對客戶體驗的重要性。很高興看到他們展示 Vuzix M400 作為圍繞其電子商務和庫存管理解決方案的先進技術的基石。

Vuzix Smart Glasses are going to work across enterprise and a multitude of environments and configurations, whether it's health care where we have customers deploying the Vuzix Blade, M400 and M4000s as their go-to device of choice to warehousing and logistics and Industry 4.0. We recently standardized the operating system level across our family of smart glasses with the general availability of Android 11 operating system for the Vuzix Blade, Vuzix M400, Vuzix M4000 and the Vuzix Shield. The advancement to Android 11 enables a variety of key benefits, including increased security, improved user experience, easier integration with a variety of third-party mobile device management, software packages and enablement of advanced Android features within third-party apps. And as you might imagine, Vuzix has, in development, several next-generation Smart Glasses solutions that will keep us at the forefront of the competition.

Vuzix 智能眼鏡將適用於企業以及多種環境和配置，無論是醫療保健領域，我們的客戶都將 Vuzix Blade、M400 和 M4000s 作為他們首選的倉儲和物流以及工業 4.0 設備。最近，隨著適用於 Vuzix Blade、Vuzix M400、Vuzix M4000 和 Vuzix Shield 的 Android 11 操作系統的全面上市，我們對智能眼鏡系列的操作系統級別進行了標準化。升級至 Android 11 可帶來多種關鍵優勢，包括提高安全性、改善用戶體驗、更輕鬆地與各種第三方移動設備管理、軟件包集成以及在第三方應用程序中啟用高級 Android 功能。正如您想像的那樣，Vuzix 正在開發多種下一代智能眼鏡解決方案，這些解決方案將使我們始終處於競爭的前沿。

During Q4 2022, Vuzix closed the acquisition of Moviynt, a SaaS-based SAP solution provider, which is now a Vuzix's-owned company. As previously mentioned, Moviynt's warehouse workflow solution and architecture are unique and that it does not require an online connection or middle-ware to operate.

2022 年第四季度，Vuzix 完成了對基於 SaaS 的 SAP 解決方案提供商 Moviynt 的收購，後者現在是 Vuzix 旗下的公司。如前所述，Moviynt 的倉庫工作流解決方案和架構是獨一無二的，不需要在線連接或中間件即可運行。

The core Moviynt team brings more than 40 years of experience related to SAP system-level architecture, mobility, project management and implementation of SAP software suites. The Moviynt solution was developed in a close collaboration with a very large aerospace and defense customer and is currently deployed in numerous of their locations across the U.S., Europe and has recently gone live in Canada as well.

Moviynt 核心團隊在 SAP 系統級架構、移動性、項目管理和 SAP 軟件套件實施方面擁有 40 多年的經驗。 Moviynt 解決方案是與一個非常大的航空航天和國防客戶密切合作開發的，目前部署在他們在美國、歐洲的許多地點，最近也在加拿大上線。

The Moviynt solution is currently supporting handheld scanners and mobile phones, which represent a logical transition to Vuzix Smart Glasses. We see this as a significant market opportunity to support traditional warehousing hardware, and our plan is to introduce Vuzix Smart Glasses as an upgrade for hands-free picking into these environments. Strategically, we believe that Moviynt's underlying technology and architecture can be packaged into APIs that could be used by Vuzix ISVs and the likes to enhance their current software offerings and help expand existing markets and open up new markets for Smart Glasses across warehousing and logistics.

Moviynt 解決方案目前支持手持掃描儀和手機，這代表了向 Vuzix 智能眼鏡的合理過渡。我們認為這是支持傳統倉儲硬件的重要市場機會，我們的計劃是推出 Vuzix 智能眼鏡作為這些環境中免提揀選的升級。從戰略上講，我們相信 Moviynt 的底層技術和架構可以打包成 API，Vuzix ISV 等可以使用這些 API 來增強他們當前的軟件產品，幫助擴大現有市場，並為智能眼鏡在倉儲和物流領域開闢新市場。

In terms of moving into revenue generation, we expect a low to mid 7-figure revenue contribution in 2023 with good gross margins and minimal impact on our net operating costs.

在創收方面，我們預計 2023 年的收入貢獻將達到 7 位數的中低水平，毛利率良好，對我們的淨運營成本的影響最小。

I'd like to now pass the call over to Grant for his financial review. Grant?

我現在想把電話轉給格蘭特進行財務審查。授予？

Thank you, Paul. As Ed mentioned, the 10-K we filed this afternoon with the SEC offers a detailed explanation of our annual financials. So I'm just going to provide you with a bit of color on some of the full year as well as quarterly numbers.

謝謝你，保羅。正如埃德所說，我們今天下午向美國證券交易委員會提交的 10-K 報告對我們的年度財務狀況進行了詳細解釋。因此，我只想為您提供一些全年和季度數字的顏色。

For the year ended December 31, 2022, Vuzix reported $11.8 million in total revenues as compared to $13.2 million for the prior year, a decrease of 10% year-over-year. Sales of engineering services for the year increased 250% to $1.3 million from $0.4 million. Smart Glass revenues decreased 18% compared to the prior year due to larger volume sales discounts, negative foreign exchange comparatives and to expand spend lower unit volumes.

截至 2022 年 12 月 31 日止年度，Vuzix 報告的總收入為 1180 萬美元，而去年同期為 1320 萬美元，同比下降 10%。本年度工程服務銷售額從 40 萬美元增長 250% 至 130 萬美元。 Smart Glass 收入較上年下降 18%，原因是銷量折扣較大、外匯比較負數以及擴大支出較低的單位銷量。

For the 3 months ended December 31, 2022, Vuzix reported $2.9 million in total revenues versus $3.3 million in the prior year's fourth quarter. Current economic uncertainties and continued geopolitical tensions, we feel, resulted in the deferrals of some customer purchases in Q4.

在截至 2022 年 12 月 31 日的三個月中，Vuzix 報告的總收入為 290 萬美元，而去年第四季度為 330 萬美元。我們認為，當前的經濟不確定性和持續的地緣政治緊張局勢導致一些客戶推遲了第四季度的採購。

For the full year ended December 31, 2022, there was an overall gross profit of $1.5 million or 13% as compared to $1.6 million or 12% for 2021. The improved gross profit percentage was a result of decreased depreciation and amortization expense in 2022 versus 2021, as more of our current manufacturing equipment became fully depreciated and an 8% expense reduction in unapplied manufacturing overheads.

截至 2022 年 12 月 31 日的全年，總毛利為 150 萬美元或 13%，而 2021 年為 160 萬美元或 12%。毛利率提高的原因是 2022 年的折舊和攤銷費用較 2022 年有所減少2021 年，我們現有的更多製造設備已完全折舊，未應用的製造間接費用減少 8%。

Research and development expenses for 2022 rose 9% to $12.7 million as compared to $11.7 million for the 2021 period. The increase was largely due to a rise of $0.6 million in external development expenses, primarily related to our Blade 2 and Shield Smart Glasses and a $0.4 million increase in wage costs due to additional personnel hired in 2022.

與 2021 年的 1170 萬美元相比，2022 年的研發費用增長了 9%，達到 1270 萬美元。增加的主要原因是外部開發費用增加了 60 萬美元，這主要與我們的 Blade 2 和 Shield 智能眼鏡有關，以及由於 2022 年僱用了更多人員而導致的工資成本增加了 40 萬美元。

Sales and marketing costs for all of 2022 rose 32% to $8.1 million from $6.1 million in 2021, an increase attributable to a $1.7 million rise in wage expense due to headcount increases and a $0.4 million increase in trade show expenses.

2022 年全年的銷售和營銷成本從 2021 年的 610 萬美元增長 32% 至 810 萬美元，增加的原因是員工人數增加導致工資支出增加 170 萬美元，以及貿易展覽費用增加 40 萬美元。

General and admin expenses for the 2022 decreased 7% to $21 million as compared to $22.5 million for the 2021 period. The decrease was primarily due to a $1.3 million decrease in noncash stock-based compensation, primarily related to the company's LTIP, which was implemented in the first quarter of 2021.

與 2021 年期間的 2250 萬美元相比，2022 年的一般和管理費用下降 7% 至 2100 萬美元。減少的主要原因是基於非現金股票的薪酬減少了 130 萬美元，這主要與公司於 2021 年第一季度實施的 LTIP 相關。

For the full year ended December 31, 2022, the net loss was $40.8 million or $0.64 per share as compared to $40.4 million or a loss of $0.66 per share for the full year of 2021.

截至 2022 年 12 月 31 日全年，淨虧損為 4080 萬美元或每股虧損 0.64 美元，而 2021 年全年淨虧損為 4040 萬美元或每股虧損 0.66 美元。

Now for some balance sheet highlights. Our cash position as of December 31, 2022, was $72.6 million, and we had a net working capital position of $76 million. Net cash flows used in operating activities was $24.5 million for the year ended December 31, 2022, as compared to $27 million for 2021, a reduction of $2.5 million.

現在來看一些資產負債表的亮點。截至 2022 年 12 月 31 日，我們的現金頭寸為 7260 萬美元，我們的淨營運資金頭寸為 7600 萬美元。截至 2022 年 12 月 31 日止年度，用於經營活動的現金流量淨額為 2450 萬美元，與 2021 年的 2700 萬美元相比減少了 250 萬美元。

Cash used for investing activities in 2022 was $21.2 million, up significantly from $4.9 million in the prior year. The increase was primarily a function of the strategic investments we made in our future, including $16.3 million related to our technology license with Atomistic and $2.3 million related to the acquisition of Moviynt. We also invested $1.7 million for fixed assets in 2022 that included manufacturing equipment and product mold tooling.

2022 年用於投資活動的現金為 2120 萬美元，大大高於上一年的 490 萬美元。增加的主要原因是我們對未來進行的戰略投資，包括與 Atomistic 的技術許可相關的 1630 萬美元和與收購 Moviynt 相關的 230 萬美元。我們還在 2022 年投資了 170 萬美元用於固定資產，其中包括製造設備和產品模具。

We will continue to make investments to drive our development and growth in 2023, including over $5 million for the purchases of fixed assets, primarily around expanding and improving our waveguide manufacturing capabilities.

我們將繼續進行投資以推動我們在 2023 年的發展和增長，包括超過 500 萬美元用於購買固定資產，主要圍繞擴大和提高我們的波導製造能力。

During the year ended December 31, 2022, the company repurchased 464,672 shares of our common stock at an average cost of $4.32 with the bulk of these purchases taking place in Q4.

在截至 2022 年 12 月 31 日的一年中，公司以平均 4.32 美元的成本回購了 464,672 股普通股，其中大部分回購發生在第四季度。

Looking forward to the balance of 2023, we are confident we have the resources to execute on our business plan and further invest in our future.

展望 2023 年，我們相信我們有足夠的資源來執行我們的業務計劃並進一步投資於我們的未來。

With that, I would like to turn the call back over to Paul.

有了這個，我想把電話轉回給保羅。

Thanks, Grant. Vuzix investments in our future are paying off in spades. We have diversified our product portfolios. And with our waveguide products hitting the market, we have formalized our OEM group, and they are opening up multiple new revenue streams for the company. More and more enterprise organizations are embracing wearable technology, and 2023 will see this momentum accelerate. And as Grant just said, we have all the resources we need to execute on our plans.

謝謝，格蘭特。 Vuzix 對我們未來的投資正在獲得回報。我們已經使我們的產品組合多樣化。隨著我們的波導產品投放市場，我們正式組建了 OEM 團隊，他們正在為公司開闢多個新的收入來源。越來越多的企業組織正在採用可穿戴技術，2023 年這一勢頭將加速。正如格蘭特剛才所說，我們擁有執行計劃所需的所有資源。

With that, I'd like to turn the call back over to the operator for Q&A.

有了這個，我想把電話轉回給接線員進行問答。

(Operator Instructions) Our first question is coming from Matt VanVliet from BTIG.

（操作員說明）我們的第一個問題來自 BTIG 的 Matt VanVliet。

I guess, first on Paul. The comment you made around a couple of the hiccups with some rollouts with customers, I wanted to maybe get a little more detail there. I know Grant mentioned some geopolitical issues maybe having some impact, but wanted to hear maybe more details on what those hiccups have been and maybe, more importantly, sort of how things have trended over the last 2 months in relation to some of those or they're just delays or you're still working on some of those deals and then how that maybe impacted the pipeline, which sounds positive, but just curious on maybe what impacts you estimate some of those issues had on the forward pipeline as well.

我想，首先是保羅。你圍繞與客戶的一些推出的幾個小問題發表的評論，我想在那裡獲得更多細節。我知道格蘭特提到了一些地緣政治問題可能會產生一些影響，但我想听聽更多關於這些問題的細節，也許更重要的是，過去 2 個月與其中一些問題或它們相關的事情的趨勢如何只是延遲，或者你仍在處理其中一些交易，然後這可能會如何影響管道，這聽起來是積極的，但只是好奇你估計其中一些問題對正向管道也有什麼影響。

Yes. So the fourth quarter, when you're in the logistics industry, where you're moving boxes around, it's not a good time to actually be potentially putting hiccups in your supply chain. And a lot of these deployments are brand new, but they're just getting started. In some cases, they're actually rolling out. They're in multiple places. But some of the companies that we work with were like, look, we're going to wait until the first quarter to do this and the second quarter. So there's part of the reason why Q1 is as strong as it is. Some of that happened, but some of that got pushed also after Q2, quite frankly, is -- it doesn't look bad either for Vuzix. Everything is kind of coming along nicely.

是的。因此，第四季度，當您在物流行業中四處移動箱子時，實際上並不是在供應鏈中打嗝的好時機。許多這些部署都是全新的，但它們才剛剛開始。在某些情況下，它們實際上正在推出。他們在多個地方。但是與我們合作的一些公司就像，看，我們要等到第一季度和第二季度再做。所以這也是 Q1 如此強大的部分原因。其中一些發生了，但坦率地說，其中一些也在第二季度之後被推動——對於 Vuzix 來說看起來也不錯。一切都進展順利。

The other thing, it's just the world was, in the fourth quarter with the markets going the way they were, people worried about making sure that they had capital availability and stuff. They were just decisions that pushed things a little bit. It's not lost business at all into the contrary. Guys like Ryder and the like, I mean these guys are -- they're just moving forward. It's strictly timing-related.

另一件事，就是這個世界，在第四季度市場按照他們的方式發展，人們擔心確保他們有可用的資本和其他東西。它們只是一些推動事情發展的決定。相反，它根本沒有失去生意。像 Ryder 之類的人，我的意思是這些人 - 他們只是在前進。這與時間嚴格相關。

Okay. That's helpful. And then when you look at the potential of the OEM business, in particular, the waveguide component of that, as you talked about large consumer electronic companies and other tech companies, I guess, how should we think about maybe over the longer term what the potential mix of business between OEM sort of component manufacturing versus full complete shipped glasses coming from Vuzix? If you have kind of a general thought or a couple of different scenarios, I would love to hear that.

好的。這很有幫助。然後當你看到 OEM 業務的潛力，特別是其中的波導組件時，當你談到大型消費電子公司和其他科技公司時，我想，從長遠來看，我們應該如何考慮OEM 類組件製造與來自 Vuzix 的完整運輸眼鏡之間的潛在業務組合？如果您有一般的想法或幾個不同的場景，我很想听聽。

And I guess, for the -- wrapped within that, have the large scale sort of layoffs and cutbacks at some of these large tech companies -- and they've talked about maybe concentrating on what more of their core business looks like today. Is that impacting the potential for the OEM business to grow over the next couple of years?

我猜，因為——其中一些大型科技公司進行了大規模裁員和裁員——他們已經討論過可能會專注於他們今天更多的核心業務。這是否會影響 OEM 業務在未來幾年的增長潛力？

First on the latter, I personally think there was a lot of hiring that was overdone during the pandemic period. I will say that it's made maybe some opportunities for Vuzix an acquisition of new talent a little bit. I don't believe that those -- letting people go at her Vuzix. In fact, in some cases, less staff mean they have to be more efficient. So in those areas where they're letting people go that are part of the supply chain and stuff, we're seeing the need for our products starting to grow. So kind of a mixed bag there. But primarily, I think it helps Vuzix.

首先關於後者，我個人認為在大流行期間有很多招聘是過度的。我會說，這可能為 Vuzix 提供了一些獲得新人才的機會。我不相信那些 - 讓人們去她的 Vuzix。事實上，在某些情況下，更少的員工意味著他們必須提高效率。因此，在他們讓人們離開的那些領域，這些領域是供應鍊和其他東西的一部分，我們看到對我們產品的需求開始增長。那裡有點魚龍混雜。但主要是，我認為它有助於 Vuzix。

As far as the mix between product OEM solutions versus pieces and parts, I have to say that the reason why we built Ultralite is so we could have a platform that it could then get rebuilt into -- you might imagine a bunch of different brands. I mean you go into a sunglass hut today, right? There's 500 different pairs of sunglasses out there. And so this platform most likely is going to be with somebody else's plastics and brand on it. And they have these look and feel that they all have. They're very proud of the brands that they've built. So those guys are going to be buying pieces and parts from Vuzix. And -- but these guys aren't software companies. They don't know how to make electronics. They don't know how to make waveguides. This whole idea of an integrated waveguide with a prescription, these are all things that Vuzix brings to the table.

至於產品 OEM 解決方案與零件和零件之間的混合，我不得不說我們構建 Ultralite 的原因是我們可以擁有一個平台，然後可以將其重建到 - 你可能會想像到一堆不同的品牌。我的意思是你今天去一個帶太陽鏡的小屋，對吧？那裡有 500 副不同的太陽鏡。所以這個平台很可能會使用其他人的塑料和品牌。他們擁有這些他們都擁有的外觀和感覺。他們為自己打造的品牌感到非常自豪。所以那些人會從 Vuzix 購買零部件。而且——但這些人不是軟件公司。他們不知道如何製造電子產品。他們不知道如何製作波導。帶有處方的集成波導的整個想法，這些都是 Vuzix 帶來的東西。

So the pieces and parts won't just be a waveguide. It's probably going to be a bunch of stuff in there. Some of it will be licensed, and some of it is literally going to be us supplying into the supply chain.

所以這些零件不僅僅是波導。裡面可能會有一堆東西。其中一些將獲得許可，其中一些實際上將由我們供應到供應鏈中。

Now in some cases, we have folks that we're talking to right now that want their white label brand on what we're doing. They love it just -- they don't even want changes to it, maybe just subtle things, like a nose bridge or something. And in those cases, we're talking reasonably high numbers, but that's something that is really a white label Vuzix product that has their name on it. And those numbers could be significant, but I don't think they can be anything like it's going to be when you're in this supply chain for prescription glasses, and it's just part of turning that crank. There are billions of glasses sold annually.

現在在某些情況下，我們現在正在與之交談的人希望他們的白標品牌在我們正在做的事情上。他們只是喜歡它——他們甚至不想改變它，也許只是一些細微的東西，比如鼻樑之類的。在那些情況下，我們談論的是相當高的數字，但這實際上是一個帶有他們名字的白標 Vuzix 產品。這些數字可能很重要，但我認為它們不會像你在這個處方眼鏡的供應鏈中那樣，而這只是轉動曲柄的一部分。每年售出數十億副眼鏡。

And in order to be in the broad markets -- and by the way, I didn't mean to throw magic leap or (inaudible) under the bus there. It's just kind of obvious, right? They're great big, heavy things. People aren't going to wear them to the beach and enjoy out and catching a suntan. You need glasses that fit the world today. And that's what this platform is all about.

為了進入廣闊的市場——順便說一下，我並不是要在公共汽車下進行魔法飛躍或（聽不清）。這很明顯，對吧？它們是又大又重的東西。人們不會穿著它們去海灘享受外出曬黑的樂趣。您需要適合當今世界的眼鏡。這就是這個平台的全部意義所在。

And then one more -- forward a little bit, our comment is in the defense side of the business. In those cases, it's going to be engines, waveguides and sometimes modules. I don't think you'll see Vuzix selling a full-up solution because it's going to be part of what some of the large defense contractors part of their systems that they're supplying into the U.S. defense markets.

然後還有一個 - 向前一點，我們的評論是在業務的防禦方面。在那些情況下，它將是引擎、波導，有時還有模塊。我認為您不會看到 Vuzix 出售完整的解決方案，因為它將成為一些大型國防承包商向美國國防市場供應的系統的一部分。

That's a long-winded answer. There's a lot of stuff going on around our OEM side of our business. Quite frankly, in the long run, this could be the tail wag in the dog at Vuzix. I mean our product business is doing well. It's growing, but you could really see some significant growth coming out of this side of our business in the comparison. I mean we see billions in the enterprise. So you get the point anyway.

這是一個冗長的答案。我們業務的 OEM 方面發生了很多事情。坦率地說，從長遠來看，這可能是 Vuzix 的搖尾巴。我的意思是我們的產品業務做得很好。它在增長，但在比較中你真的可以看到我們業務的這一方面出現了一些顯著的增長。我的意思是我們在企業中看到了數十億美元。所以無論如何你明白了。

Yes. No, very helpful. And then, Grant, quickly one question on Moviynt. You talked about a 7-figure contribution in '23. What kind of growth does that represent? Or how much revenue was allocated to that pre acquisition? And just kind of making sure we understand what you guys are bringing to the table there.

是的。不，非常有幫助。然後，格蘭特，快速提出一個關於 Moviynt 的問題。您在 23 年談到了 7 位數的貢獻。這代表著什麼樣的成長？或者分配給該預購的收入有多少？只是要確保我們了解你們帶來了什麼。

Just one sec. I mean, last year, they did 200,000. 70,000 of it was when they were part of Vuzix. Next year, we're looking at a couple of million dollar contribution from them. I mean, over the last several years, they've been in a developing mode working with their customers, and they're getting ready for some deployment. So it should be a nice contributing factor next year.

就一秒鐘。我的意思是，去年，他們做了 200,000 次。其中 70,000 是在他們屬於 Vuzix 的時候。明年，我們期待他們提供數百萬美元的捐款。我的意思是，在過去的幾年裡，他們一直處於與客戶合作的開發模式，並且他們正在為一些部署做好準備。所以明年它應該是一個很好的貢獻因素。

It means 2023, by the way, for next year. We're also doing that a little bit here.

順便說一句，這意味著明年是 2023 年。我們在這裡也做了一點。

Sorry.

對不起。

Yes, it's okay, Grant.

是的，沒關係，格蘭特。

Next question is coming from Christian Schwab from Craig-Hallum.

下一個問題來自 Craig-Hallum 的 Christian Schwab。

So just I appreciate the color on the different product revenue opportunities, modules, just waveguides or product sales. Ex the acquisition, what type of product sales growth rate should we be thinking about? Is the target broad range in '23?

所以我很欣賞不同產品收入機會、模塊、波導或產品銷售的顏色。除了收購，我們應該考慮什麼樣的產品銷售增長率？ 23 年的目標範圍廣泛嗎？

I think we're going to see a fairly consistent move through 2023 where each quarter should be the previous quarter. And we'll have, I think, a really nice 2023. In 2024, I think it's going to start to kick in to overdrive because that's where all these guys start rolling out on the OEM side especially, that really starts rolling out into the market. But I will also say our expectations on the product side, we've been working for a long time with some of these folks in supply chain. And in that side of the business, I mean, we're talking about many thousands of units worth of deployment. So I mean, '23, 50%, I guess, would be an easy way to...

我認為到 2023 年我們將看到相當一致的變化，每個季度都應該是上一季度。我認為，我們將擁有一個非常美好的 2023 年。到 2024 年，我認為它將開始超速行駛，因為那是所有這些人開始在 OEM 方面推出的地方，尤其是真正開始推出到市場。但我也會說我們對產品方面的期望，我們已經與供應鏈中的一些人合作了很長時間。在業務的那方面，我的意思是，我們正在談論價值數千個單位的部署。所以我的意思是，'23, 50%，我想，這將是一個簡單的方法......

Okay. Okay. Fabulous. And then as we begin to ramp and get ready for these other potential OEM type of ramp, should we expect engineering services to have a good year in '23? Or am I thinking about that wrong?

好的。好的。極好。然後，當我們開始爬坡並為這些其他潛在的 OEM 類型的爬坡做好準備時，我們是否應該期望工程服務在 23 年取得好成績？還是我想錯了？

The bulk of the revenues, I think, is going to be choppy because that's the nature of engineering revenues, right? I mean you're doing something, you do a lot of work, you deliver in a quarter, and then they're evaluating. And then the quarter and half later, you're rolling on the next piece just trying to get into production. So the -- but we have a bunch of those things that are happening, Christian. So I would suggest that you'll see continued choppy growth, but it will get bigger and bigger over time, upwards of 100% to 200%.

我認為，大部分收入會起伏不定，因為這是工程收入的本質，對吧？我的意思是你正在做某事，你做了很多工作，你在一個季度內交付，然後他們正在評估。然後在四分之一半之後，您將開始下一個作品，只是想投入生產。所以 - 但我們有很多正在發生的事情，克里斯蒂安。所以我建議你會看到持續的波動增長，但隨著時間的推移它會越來越大，超過 100% 到 200%。

Okay. Well, that's perfect. And then my last question, kind of given that back-of-the-envelope outlook for revenue and the capital investments we're making, what should we -- what is the fair assessment that we should assume for cash burn this year?

好的。好吧，那太完美了。然後我的最後一個問題，考慮到收入的粗略前景和我們正在進行的資本投資，我們應該如何——我們應該對今年的現金消耗做出什麼樣的公平評估？

It should be similar to '22, I think.

我認為它應該類似於'22。

It shouldn't be any worse between -- our plan is to be better than lose less cash than...

兩者之間應該不會更糟——我們的計劃是比損失更少的現金更好……

I'm sorry, forgive me, 20% because the revenue size is climbing.

對不起，請原諒我，20%，因為收入規模正在攀升。

I mean we're still making some big investments in 2023, as mentioned on the call, regarding expansion of our waveguide capabilities and manufacturing. And if you dig into the K, there are some further investments we're making related to our Atomistic technology licenses.

我的意思是，正如電話中提到的，我們仍在 2023 年進行一些大投資，以擴大我們的波導能力和製造。如果你深入研究 K，我們正在進行一些與 Atomistic 技術許可相關的進一步投資。

Next question is coming from Jim McIlree from Dawson James.

下一個問題來自 Dawson James 的 Jim McIlree。

In the K, you talked about the Atomistic agreement being, I don't know, amended or changed. And my question is what was the genesis of that? And then secondly, does that change the cash obligations or timing that you have with Atomistic?

在 K 中，你談到原子協議正在被修改或更改，我不知道。我的問題是它的起源是什麼？其次，這是否會改變您與 Atomistic 的現金義務或時間安排？

It really doesn't. I mean I think we've got a bit more of a window on one piece of it, but for the most part, it doesn't change anything. There's no extra cash needed. It's just -- there was a way for us to get some more technology that we could bring onboard, and we thought that, that was important. So we made some modifications around it to do that.

它真的沒有。我的意思是我認為我們在它的一部分上有更多的窗口，但在大多數情況下，它不會改變任何東西。不需要額外的現金。只是 - 我們有辦法獲得更多可以帶入船上的技術，我們認為這很重要。所以我們圍繞它做了一些修改來做到這一點。

And so the change was around getting the additional technologies. Is that right?

所以變化是圍繞獲得額外的技術。是對的嗎？

Yes. That's 100%.

是的。那是 100%。

Got it. And so when does that investment -- that partnership with Atomistic, when does that turn into a product -- or a revenue-generating product?

知道了。那麼，這種投資——與 Atomistic 的合作夥伴關係，何時會轉化為產品——或創收產品？

That's a good question, Jim. Let me say that between now and when it does, there should be a lot of data points that we're going to be able to share along the way. I've been saying that, but things are starting to come together now. We're, knock on wood, about ready to file the intellectual property pieces on the stuff that we need to do. And we'll be able to share a whole lot more coming up. I will say that they are doing around some other things that we're also doing. It may bring revenue generation sooner rather than later. But there's a lot in the air that I'd rather not talk about just yet on this one.

這是個好問題，吉姆。讓我說，從現在到它發生的時間，應該有很多數據點，我們將能夠在此過程中共享。我一直這麼說，但現在事情開始走到一起了。我們敲木頭，準備就我們需要做的事情提交知識產權文件。我們將能夠分享更多即將到來的內容。我會說他們正在做一些我們也在做的其他事情。它可能會早日帶來創收。但是空氣中有很多我不想在這個問題上談論的東西。

Okay. So is it reasonable then to think that this is a 20 -- let's put it this way, not a 2023 impact.

好的。那麼認為這是 20 年的影響是否合理——讓我們這樣說，而不是 2023 年的影響。

Correct.

正確的。

Next question is coming from Jack Vander Aarde from Maxim Group.

下一個問題來自 Maxim Group 的 Jack Vander Aarde。

I appreciate the update. It was great. It was also great to -- I was at CES this year, so it was great to test out your latest products and the new platform at CES. A couple of questions. I was wondering about the multiple OEM purchase orders you announced in early January of this year. There's a press release with the 3 defense firms and the one commercial customer. I know you mentioned some of those orders were at least partially shipped in 2022, and I think the rest would be in 2023.

感謝更新。太好了。這也很棒——我今年參加了 CES，所以很高興在 CES 上測試你們的最新產品和新平台。幾個問題。我想知道您在今年 1 月初宣布的多個 OEM 採購訂單。有 3 家國防公司和一個商業客戶的新聞稿。我知道你提到其中一些訂單至少部分在 2022 年發貨，我認為其餘訂單將在 2023 年發貨。

But just a couple of related questions here. Could you give any more color around maybe the size of these deals or just relative -- if you can't give -- talk about the size of the deals themselves, maybe just talk about how much percentage-wise shipped and was recognized in the fourth quarter versus what you expect in the first quarter of '23? And then are these shipments included at least $3.5 million of product revenue you've locked in, in the first quarter?

但這裡只有幾個相關問題。你能不能給這些交易的規模更多的顏色，或者只是相對 - 如果你不能給出 - 談談交易本身的規模，也許只是談論多少百分比明智的發貨並在第四季度與您對 23 年第一季度的預期相比？那麼這些出貨量是否包括您在第一季度鎖定的至少 350 萬美元的產品收入？

There's precious level versus of defense revenues in that $3.5 million, there's precious level. Not all of it shipped in the fourth quarter either, though. These are programs that will contribute throughout 2023. And the size of them range from $50,000 to $200,000 to $300,000 kinds of numbers.

與 350 萬美元的國防收入相比，這是一個寶貴的水平，這是一個寶貴的水平。不過，並非所有產品都在第四季度發貨。這些計劃將在整個 2023 年做出貢獻。它們的規模從 50,000 美元到 200,000 美元到 300,000 美元不等。

Got you. Okay. That's helpful. And then it sounds like there is a follow-on and expansion order opportunity for, I guess, for all 4 of these particular customers.

明白了好的。這很有幫助。然後聽起來好像有一個後續和擴展訂單的機會，我猜，對於所有這 4 個特定客戶。

Yes. And by the way, the 4 is -- we have a reasonably large number of defense companies that are coming to Vuzix either buying our standard waveguides and engines or having us build custom waveguides and engines for them. And we anticipate that this number will -- it'll -- I don't know if this account number will grow, I expect it will but more so the amount of business that we're doing with these customers will grow through '23.

是的。順便說一下，4 是——我們有相當多的國防公司來到 Vuzix，要么購買我們的標準波導和引擎，要么讓我們為他們構建定制波導和引擎。我們預計這個數字會 - 它會 - 我不知道這個帳號是否會增長，我預計它會增長，但更多的是我們與這些客戶開展的業務量將在 23 年前增長.

Okay. Great. And then just another follow-up question on the acquisition of Moviynt. Aside from a strategic perspective, which is it's a great addition, it looks like -- it sounds like it's also a low 7-figure revenue contributor to 2023. Can you maybe just -- I know analysts asked a question on this, but can you just maybe talk about the seasonality of that business and particularly what you expect in the first quarter from that?

好的。偉大的。然後是關於收購 Moviynt 的另一個後續問題。從戰略角度來看，這是一個很好的補充，它看起來——聽起來它對 2023 年的收入貢獻也很低，只有 7 位數。你能不能——我知道分析師就此提出了一個問題，但可以您可能只是談論該業務的季節性，特別是您對第一季度的期望？

It's not really very seasonal. This is SaaS-based revenue. Once you start billing, it's a quarterly revenue stream that comes in. So I don't think it is seasonal at all, frankly. It does take time to implement in a new facility. So there'll be engineering components that we will build for upfront. And those things come and go over time, but it's engineering services and then SaaS-based revenues that just keep rolling.

這不是很季節性。這是基於 SaaS 的收入。一旦你開始計費，它就是一個季度收入流。所以我認為它根本不是季節性的，坦率地說。在新設施中實施確實需要時間。因此，我們將預先構建一些工程組件。隨著時間的推移，這些事情來來去去，但它是工程服務，然後是基於 SaaS 的收入一直在滾動。

Jack, just to elaborate a little bit more on that. These guys have been -- every single place they've installed their stuff in has been a success. In fact, not just a success, it's replacing many of the things that are in those facilities. And as they grow, the number of customers we expect to fully ramp through this year, that helps, not just this year. This is the beginnings, I think, of a -- I mean you know how big supply chain is. I mean the a number of companies that could utilize this thing is pretty significant.

傑克，我想詳細說明一下。這些人已經 - 他們安裝他們的東西的每個地方都取得了成功。事實上，不僅僅是成功，它正在取代這些設施中的許多東西。隨著他們的增長，我們預計今年將全面增加客戶數量，這不僅在今年有所幫助。我認為這是一個開始——我的意思是你知道供應鏈有多大。我的意思是，可以利用這個東西的公司數量非常多。

Thank you. We reach the end of our question-and-answer session. I'd like to turn the floor over to Paul for any further or closing comments.

謝謝。我們的問答環節結束了。我想請 Paul 發表任何進一步或結束評論。

Thank you, Kevin. I would like to thank everyone for your interest and participation on today's call. We look forward to speaking with you again in May when we report our Q1 2023 quarterly results. Have a nice afternoon, everybody. Thanks again.

謝謝你，凱文。我要感謝大家對今天電話會議的關注和參與。我們期待在 5 月份報告 2023 年第一季度季度業績時再次與您交談。大家下午好再次感謝。

Thank you. That does conclude today's teleconference webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議網絡廣播到此結束。此時您可以斷開線路，度過美好的一天。感謝您今天的參與。