Allient Inc (ALNT) 2025 Q1 法說會逐字稿

Good day, and welcome to the Allient Inc. first quarter fiscal year 2025 financial results call. (Operator Instructions) Please note that this event is being recorded.

大家好，歡迎參加 Allient Inc. 2025 財年第一季財務業績電話會議。（操作說明）請注意，本次活動正在錄影。

I would now like to turn the conference over to Craig Mychajluk, Investor Relations. Please go ahead.

現在我將把會議交給投資者關係部的克雷格·米哈伊盧克 (Craig Mychajluk) 主持。請繼續。

Yes. Thank you, and good morning, everyone. We certainly appreciate your time today as well as your interest in Allient. Joining me today are Dick Warzala, our Chairman, President and CEO; and Jim Michaud, our Chief Financial Officer. Dick and Jim will walk you through our first quarter 2025 results, provide a strategic update and share our outlook. We will then open up the call for Q&A.

是的。謝謝大家，大家早安。我們非常感謝您今天抽出時間，也感謝您對Allient的關注。今天與我一同出席的有我們的董事長、總裁兼執行長迪克·沃扎拉，以及我們的財務長吉姆·米肖。迪克和吉姆將帶您了解我們 2025 年第一季的業績，提供策略更新並分享我們的展望。接下來我們將開放問答環節。

You should have a copy of the financial results that were released yesterday after the market closed. If not, you can find it at our website at allient.com, along with the slides that accompany today's discussion.

你應該已經收到昨天股市收盤後發布的財務報告副本。如果找不到，您可以在我們的網站 allient.com 上找到，以及今天討論的幻燈片。

If you're reviewing those slides, please turn to slide 2 for the safe harbor statement. As you are aware, we may make forward-looking statements on this call during the formal discussion as well as during the Q&A. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from what is stated on today's call.

如果您正在查看這些投影片，請翻到第 2 張投影片查看安全港聲明。如您所知，我們可能會在本次電話會議的正式討論環節以及問答環節發表前瞻性聲明。這些聲明適用於未來事件，但未來事件存在風險和不確定性，以及其他可能導致實際結果與今天電話會議上所述內容有重大差異的因素。

These risks and uncertainties and other factors are discussed in the earnings release as well as with other documents filed by the company with the Securities and Exchange Commission. You can find these documents on our website or at sec.gov.

這些風險、不確定性及其他因素在獲利報告中以及公司向美國證券交易委員會提交的其他文件中均有討論。您可以在我們的網站或 sec.gov 上找到這些文件。

I want to point out as well that during today's call, we will discuss some non-GAAP measures, which we believe will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of non-GAAP to comparable GAAP measures in the tables accompanying the earnings release as well as the slides.

我還想指出，在今天的電話會議中，我們將討論一些非GAAP指標，我們認為這些指標對於評估我們的績效是有用的。您不應孤立地看待這些補充資訊的呈現，也不應將其視為按照公認會計原則編制的結果的替代品。我們在隨附獲利報告的表格和投影片中提供了非GAAP指標與可比較GAAP指標的調節表。

So, with that, please turn to slide 3, and I'll turn it over to Dick to begin. Dick?

那麼，請翻到第 3 張投影片，接下來就交給迪克開始吧。迪克？

Thank you, Craig, and welcome, everyone. We began 2025 with solid momentum, delivering meaningful sequential growth across revenue, margins, EBITDA, earnings and cash generation. These results reflect the operational and strategic discipline we've instilled across the company and our commitment to driving long-term value even amid a complex external environment.

謝謝你，克雷格，也歡迎各位。2025 年伊始，我們便取得了強勁的發展勢頭，在營收、利潤率、EBITDA、獲利和現金流方面均實現了顯著的連續成長。這些成果體現了我們在公司內部灌輸的營運和策略紀律，以及我們即使在複雜的外部環境下也致力於創造長期價值的承諾。

As expected, year-over-year comparisons were challenging, particularly due to continued demand softness in the industrial automation and vehicle markets. However, our performance this quarter is a clear indicator that our strategy is gaining traction and that our execution is strengthening.

正如預期的那樣，同比比較面臨挑戰，特別是由於工業自動化和汽車市場的需求持續疲軟。然而，本季的業績清楚地表明，我們的策略正在取得成效，執行力也在不斷增強。

We are building a more resilient and responsive company. Revenue increased 9% sequentially and gross margin expanded 70 basis points to 32.2%, driven both by volume and mix improvement. Operating margin rose 130 basis points sequentially to 6.6% and adjusted EPS increased nearly 50% from quarter 4, reaching $0.46 per share.

我們正在打造一家更具韌性和響應能力的公司。營收季增 9%，毛利率成長 70 個基點至 32.2%，主要得益於銷售量和產品組合的改善。營業利益率較上季成長 130 個基點至 6.6%，調整後每股盈餘較第四季成長近 50%，達到每股 0.46 美元。

Our Simplify to Accelerate NOW program continues to serve as a cornerstone of this transformation, driving efficiency, improving responsiveness and positioning us to scale. It is enabling us to realign resources with demand, improve collaboration across functions and streamline production for both near-term performance and long-term growth.

我們的「簡化以加速」計畫繼續作為這項轉型的基石，提高效率，增強回應能力，並使我們能夠擴大規模。它使我們能夠重新調整資源以適應需求，改善跨職能部門的協作，並簡化生產流程，從而提高近期業績和實現長期成長。

We continue to navigate a dynamic global landscape with focus and agility. The steps we have taken to reinforce operational flexibility are allowing us to act decisively, whether that means strengthening our supply chain, securing alternate sources of supply or managing inflationary pressures.

我們將繼續以專注和敏捷的態度來應對瞬息萬變的全球環境。我們為加強營運靈活性而採取的措施使我們能夠果斷行動，無論是加強供應鏈、確保替代供應來源還是應對通膨壓力。

In parallel, we have taken deliberate steps to reduce exposure to geopolitical risk, especially around tariffs and rare earth magnet sourcing, which has become more complex due to China's export restrictions on high-performance magnets.

同時，我們採取了有意識的措施來降低地緣政治風險，尤其是在關稅和稀土磁鐵​​採購方面，由於中國對高性能磁鐵的出口限制，這變得更加複雜。

I will speak more about our mitigation strategy during my closing remarks. Strategically, we remain aligned with the growth themes shaping our markets; electrification, energy efficiency, automation and infrastructure investment. These are long-term trends, and we believe Allient is well positioned to capitalize on them.

我將在總結發言中詳細介紹我們的緩解策略。從策略來看，我們始終與塑造我們市場的成長主題保持一致：電氣化、能源效率、自動化和基礎設施投資。這些都是長期趨勢，我們相信 Allient 已做好充分準備，能夠從中獲益。

With that, let me turn it over to Jim for a more in-depth review of the financials.

接下來，我將把發言權交給吉姆，讓他對財務狀況進行更深入的分析。

Thank you, Dick, and good morning, everyone. I am starting on slide 5. First quarter revenue was $132.8 million, down 9% year-over-year due to the anticipated demand softness in the vehicle and industrial markets, compounded by an unfavorable $1.8 million FX impact.

謝謝你，迪克，大家早安。我從第5張投影片開始。第一季營收為 1.328 億美元，年減 9%，原因是汽車和工業市場預期需求疲軟，再加上 180 萬美元的不利匯率影響。

On a sequential basis, revenue decreased $10.8 million or 9%, reflecting solid execution and improving momentum in targeted areas like power quality and defense programs. Sales to US customers represented 52% of revenue compared with 58% in Q1 last year, with continued contributions from Europe, Canada and Asia Pacific.

與上一季相比，營收減少了 1,080 萬美元，降幅為 9%，反映出在電力品質和國防項目等目標領域，公司執行力強勁，發展勢頭不斷增強。與去年第一季的 58% 相比，美國客戶的銷售額佔總收入的 52%，歐洲、加拿大和亞太地區持續做出貢獻。

Breaking down our results further, let's take a closer look at how each of our key market sectors performed year-over-year. Aerospace and defense saw a 25% increase, reflecting timing of key defense and space program deliverables. We are actively pursuing several promising opportunities in the defense sector, which we anticipate will contribute to continued growth in the future.

為了進一步分析我們的結果，讓我們仔細看看每個主要市場板塊的年比表現。航空航太和國防領域成長了 25%，反映了關鍵國防和航太專案交付的時間表。我們正在積極尋求國防領域的幾個有前景的機遇，我們預計這些機會將有助於我們在未來持續成長。

Medical remained steady with strength in surgical equipment and tools and mobility solutions. Industrial markets were mixed with our power quality solutions for HVAC and data center infrastructure generating solid growth. However, our total industrial market sales were down largely due to reduced demand in industrial automation.

醫療業務維持穩定，外科設備、工具和行動解決方案領域表現強勁。工業市場表現不一，但我們為暖通空調和資料中心基礎設施提供的電力品質解決方案實現了穩健成長。然而，由於工業自動化需求下降，我們的工業市場總銷售額大幅下降。

Vehicle revenue declined 34%, in line with expectations, reflecting both continued softness in power sports demand and our intentional shift from lower-margin programs as we focus on high value -- higher value, managing enhancing applications aligned with our long-term strategy.

車輛收入下降了 34%，符合預期，這不僅反映了動力運動需求的持續疲軟，也反映了我們有意從低利潤項目轉向高價值項目——更高價值、管理增強型應用，以符合我們的長期策略。

Let's move to slide 6 for the composition of our revenue over the trailing 12 months, along with the key catalysts driving these changes. The industrial sector is our largest market, contributing 47% of the trailing 12-month sales. This market was primarily driven by strong demand for power quality solutions as well as growth in material handling and semiconductor equipment.

讓我們來看看第 6 張投影片，了解過去 12 個月的收入組成，以及推動這些變化的關鍵因素。工業領域是我們最大的市場，佔過去 12 個月銷售額的 47%。該市場的主要驅動力是市場對電能品質解決方案的強勁需求，以及物料搬運和半導體設備的成長。

Industrial automation sales slowed significantly over the past year as inventory levels and new projects have reset across the industry. Similar to the quarter, vehicle demand remained under pressure, particularly due to shifting recreational spend trends in powersports.

過去一年，由於整個行業的庫存水準和新項目數量都發生了變化，工業自動化銷售明顯放緩。與上一季類似，車輛需求仍然承壓，尤其是由於動力運動休閒消費趨勢的變化。

While we saw stronger sales in surgical-related products, our medical market was down 2% on a trailing 12-month basis due to softness in pump-related products. The aerospace and defense growth reflects variability, driven by contract award and government budget cycles combined with long lead times.

儘管外科相關產品的銷售額有所增長，但由於泵浦相關產品銷售疲軟，我們的醫療市場在過去 12 個月中下降了 2%。航空航太和國防領域的成長反映了其波動性，這種波動性是由合約授予和政府預算週期以及較長的交付週期共同造成的。

Finally, our distributor channel, while smaller, showed modest growth, representing 5% of total sales over the trailing 12-month period. The diversity of our end markets continues to be a foundational strength of the Allient model. This broad market reach, combined with our global customer base helps mitigate volatility in any single area and enables us to allocate resources where we see the greatest return.

最後，我們的分銷管道雖然規模較小，但實現了適度成長，在過去 12 個月中佔總銷售額的 5%。我們終端市場的多角化一直是Allient模式的基礎優勢。這種廣泛的市場覆蓋範圍，加上我們的全球客戶群，有助於降低任何單一領域的波動性，並使我們能夠將資源分配到我們認為回報最大的地方。

As shown on slide 7, gross margin was 32.2%, down just 10 basis points compared with the same period last year despite lower year-over-year volume. Sequentially, gross margin expanded 70 basis points and was driven by higher volume, better mix and continued implementation of our lean toolkit across the organization. Importantly, this marks the third consecutive quarter of gross margin expansion, up a total of 230 basis points since our low point in Q2 2024.

如投影片 7 所示，毛利率為 32.2%，儘管年比銷量下降，但與去年同期相比僅下降了 10 個基點。毛利率環比增長 70 個基點，這得益於銷售增長、產品組合優化以及在整個組織內持續實施精益工具包。重要的是，這標誌著毛利率連續第三個季度擴張，自 2024 年第二季低點以來，毛利率累計增加了 230 個基點。

Moving to slide 8. On a year-over-year basis, operating income was down due to lower volume and restructuring charges of $1.5 million versus minimal charges last year. In fact, when looking at operating expenses as a percentage of sales, restructuring and business realignment costs from the recent quarter contributed 90 basis points to the total 160 basis point increase. The remaining impact was largely reduced operating leverage on lower sales volume.

切換到第8張投影片。與去年同期相比，營業收入下降，原因是銷售減少以及重組費用為 150 萬美元，而去年同期費用極低。事實上，如果以銷售額的百分比來衡量營運費用，那麼最近一個季度的重組和業務調整成本就貢獻了 90 個基點，使總增幅達到了 160 個基點。其餘影響主要體現在銷售量下降導致的經營槓桿作用降低。

Sequentially, though, we saw a 60-basis point improvement in the operating cost ratio as we benefited from operating leverage, cost discipline and the impact of our Simplify to Accelerate NOW program. As a result, operating income for the quarter was $8.8 million, with operating margin at 6.6%, up 130 basis points from Q4.

但從長遠來看，由於營運槓桿、成本控制以及我們的「簡化以加速」計劃的影響，我們的營運成本率改善了 60 個基點。因此，本季營業收入為 880 萬美元，營業利潤率為 6.6%，比第四季成長了 130 個基點。

Slide 9 highlights our bottom-line results, showing continued sequential improvements. I do want to call out that while our debt declined, our interest rate -- interest expense increased approximately $247,000 in the quarter. This was primarily driven by higher interest rates. The biggest driver was the expiration of two favorable interest rate swaps in December. They were replaced with a new swap at a higher rate, still competitive for the current market, but not as low as before.

第 9 張投影片重點介紹了我們的最終結果，顯示出持續的連續改進。我想指出的是，雖然我們的債務減少了，但我們的利率——本季利息支出增加了約 247,000 美元。這主要是由較高的利率所驅動的。最大的驅動因素是12月份兩項有利的利率互換到期。它們被一種利率更高的新互換利率所取代，雖然在當前市場上仍然具有競爭力，但不如以前那麼低了。

We also saw an increase compared to the prior year first quarter in the rates we are paying under our credit agreement related to the amendment made last fall. On a positive note, the benchmark interest rate we are tied to SOFR came down year-over-year, which helped offset some of the increase.

與去年同期相比，由於去年秋季進行的修訂，我們根據信貸協議支付的利率也有所上升。從正面的方面來看，我們與SOFR掛鉤的基準利率較去年同期下降，這有助於抵銷部分成長。

As for our results, net income was $3.6 million or $0.21 per diluted share compared with $3 million or $0.18 per diluted share in the prior period. Adjusted net income rose to $7.6 million or $0.46 per share, up from $0.31 in Q4. Adjusted EBITDA was $17.5 million or 13.2% of revenue, up 160 basis points sequentially. These gains reflect our improving mix and the structural efficiencies we have been driving.

至於我們的業績，淨收入為 360 萬美元，即每股攤薄收益 0.21 美元，而上一時期淨收入為 300 萬美元，即每股攤薄收益 0.18 美元。經調整後的淨收入增至 760 萬美元，即每股 0.46 美元，高於第四季的 0.31 美元。調整後 EBITDA 為 1,750 萬美元，佔營收的 13.2%，季增 160 個基點。這些收益反映了我們不斷改善的產品組合以及我們一直在推動的結構性效率提升。

Turning to cash generation and our balance sheet on slides 10 and 11. Operating cash flow was $13.9 million, up 52% from last year's first quarter and up 12% over the sequential fourth quarter due to improved working capital. We ended the first quarter with $47.8 million in cash, an increase of 32% since year end 2024. As a result, our net debt decreased by $13.6 million, bringing it to $174.4 million.

接下來，我們將討論第 10 和 11 頁的現金流量產生和資產負債表。由於營運資金改善，營運現金流為 1,390 萬美元，比去年第一季成長 52%，比第四季環比成長 12%。第一季末，我們持有現金 4,780 萬美元，比 2024 年底成長了 32%。因此，我們的淨債務減少了 1,360 萬美元，降至 1.744 億美元。

Our leverage ratio, which we calculate as net debt divided by trailing 12-month adjusted EBITDA, improved to 2.91 times. This was down from 3.01 times at the end of December. Our bank-defined leverage ratio, which excludes certain items like foreign cash, came in at 3.56 times at quarter end, and we will remain in full compliance with our debt covenants.

我們的槓桿率（我們用淨債務除以過去 12 個月的調整後 EBITDA 計算）改善至 2.91 倍。這一數字低於 12 月底的 3.01 倍。截至季末，我們銀行定義的槓桿率（不包括某些項目，如外國現金）為 3.56 倍，我們將繼續完全遵守我們的債務契約。

These results are aligned with the three core financial priorities we have outlined for 2025. First, inventory management remains a top priority. We continue to drive improvements as our inventory turns improved sequentially from 2.7 at the end of 2024 to 3.1 at March 2025 by reducing inventory levels through tighter planning, better alignment with customer demand and focused execution in our supply chain. These efforts resulted in freeing up cash and improving cycle efficiency while still ensuring product availability for customers.

這些結果與我們為 2025 年制定的三個核心財務優先事項相一致。首先，庫存管理仍然是重中之重。我們透過更嚴格的計劃、更好地與客戶需求保持一致以及在供應鏈中集中執行，降低了庫存水平，從而持續推動改進，庫存週轉率從 2024 年底的 2.7 提高到 2025 年 3 月的 3.1。這些努力釋放了現金流，提高了週期效率，同時也確保了客戶的產品供應。

Number two, cost discipline remains embedded in our operations. Through the Simplify to Accelerate NOW initiative and broader lean manufacturing efforts, we continue to identify and remove inefficiencies across the enterprise. These actions are continuing not just to improve profitability, but to better cash conversion as well, whether through lower overhead, streamlined operations or smarter procurement.

第二，成本控制仍然是我們營運中不可或缺的一部分。透過「簡化以加速」計劃和更廣泛的精益生產努力，我們不斷發現並消除企業內部的低效之處。這些措施不僅是為了提高獲利能力，也是為了更好地轉換現金流，無論是透過降低管理費用、簡化營運或更智慧的採購。

Lastly, strengthening our balance sheet by reducing debt is a critical initiative of our financial strategy. The $13.6 million sequential reduction in net debt reflects higher operating cash flow and prudent capital allocation. As we progress through 2025, we expect to continue reducing debt, creating more flexibility for reinvestment and strategic execution.

最後，透過減少債務來加強我們的資產負債表是我們財務策略的關鍵舉措。淨債務環比減少 1,360 萬美元，反映了更高的經營現金流和審慎的資本配置。隨著我們邁入 2025 年，我們預計將繼續減少債務，從而為再投資和策略執行創造更大的靈活性。

Capital expenditures were $1.1 million for the quarter, and we still anticipate capital spend of $10 million to $12 million for the full year 2025.

本季資本支出為 110 萬美元，我們仍預期 2025 年全年資本支出為 1,000 萬美元至 1,200 萬美元。

With that, if you advance to slide 12, I will now turn the call back over to Dick.

這樣，如果您翻到第 12 張投影片，我現在就把電話轉回給迪克。

Thank you, Jim. We saw solid order momentum across key solution areas in the quarter. Total orders increased 17% sequentially and 13% year-over-year, primarily driven by strength in HVAC applications for data centers and A&D programs. This translated into a heavy book-to-bill ratio -- a healthy book-to-bill ratio of 1.04 times.

謝謝你，吉姆。本季度，我們在關鍵解決方案領域看到了強勁的訂單成長動能。總訂單季增 17%，年增 13%，主要得益於資料中心和航空航太及國防項目 HVAC 應用的強勁成長。這意味著訂單出貨比很高——達到了健康的 1.04 倍訂單出貨比。

Backlog was up 3% sequentially. And while we continue to manage through foreign exchange pressures and customer inventory realignment, underlying demand across our core growth areas remains constructive. As we look ahead, our focus is clear, executing on our strategic road map with precision and agility. We recognize that the external environment remains fluid; geopolitical, regulatory and economic uncertainties persist; but Allient is built for resilience.

積壓訂單季增3%。儘管我們仍在應對外匯壓力和客戶庫存調整，但我們核心成長領域的潛在需求仍保持良好勢頭。展望未來，我們的重點很明確，那就是精準、靈活地執行我們的策略路線圖。我們認識到外部環境仍然瞬息萬變；地緣政治、監管和經濟方面的不確定性仍然存在；但 Allient 具備強大的韌性。

Our diverse customer base, global manufacturing footprint and deep engineering expertise position us to respond decisively and adapt with confidence. Our Simplify to Accelerate NOW program is playing a central role in enabling operational leverage, aligning our business more closely with evolving customer needs and positioning us for sustained value creation.

我們多元化的客戶群、全球製造佈局和深厚的工程技術專長使我們能夠果斷應對並充滿信心地進行調整。我們的「簡化加速」計畫在實現營運槓桿、使我們的業務更緊密地與不斷變化的客戶需求保持一致以及使我們能夠持續創造價值方面發揮著核心作用。

For 2025, we are targeting an additional $6 million to $7 million in annualized cost reductions with benefits expected to begin materializing later this year. At the same time, we are taking proactive steps to address the shifting global trade environment, specifically evolving tariff policies and the restrictions on magnet exports from China.

到 2025 年，我們的目標是每年額外節省 600 萬至 700 萬美元的成本，預計收益將於今年稍後開始顯現。同時，我們正在採取積極措施應對不斷變化的全球貿易環境，特別是不斷變化的關稅政策以及對中國磁鐵出口的限制。

Given the mitigation strategies in place and those in progress, we believe our exposure is manageable, although it will require a strong focus from our team. To provide perspective, while our annual spend on China-sourced magnets is currently less than $8 million per year, only a small subset of approximately $1.5 million of that is impacted by the new restrictions due to the heavy rare earth materials.

鑑於已實施和正在進行的緩解策略，我們認為我們的風險敞口是可控的，儘管這需要我們團隊的高度重視。為了讓大家有個概念，雖然我們每年從中國進口磁鐵的支出目前不到 800 萬美元，但只有大約 150 萬美元的支出受到重稀土材料新限制的影響。

We have implemented a multipronged mitigation strategy that includes partnering with suppliers outside restricted jurisdictions, actively managing export licensing requirements, increasing safety stock to protect against extended lead times, leveraging our global manufacturing footprint to ensure continuity, and most importantly, advancing motor technologies that significantly reduce or eliminate rare earth content without compromising performance. This proactive and disciplined approach not only protects continuity of supply, it strengthens customer trust, particularly in critical and regulated markets.

我們實施了一項多管齊下的緩解策略，包括與受限司法管轄區以外的供應商合作、積極管理出口許可證要求、增加安全庫存以防止交貨時間延長、利用我們的全球製造佈局來確保連續性，最重要的是，推進電機技術，在不影響性能的前提下，顯著減少或消除稀土含量。這種積極主動、嚴謹自律的做法不僅可以保障供應的連續性，還能增強客戶的信任，尤其是在關鍵且受監管的市場中。

From a tariff perspective, we don't expect a material impact going forward. In Q1, the effect of evolving tariff policies was minimal. Thanks to our global footprint and prior steps to align local manufacturing with local sales, we estimate that incremental tariff-related costs could be approximately $3 million at the high end for the remainder of the year, before any mitigation efforts. These efforts will primarily focus on a combination of passing costs through to customers and supply chain optimization.

從關稅角度來看，我們預期未來不會產生實質影響。第一季度，不斷變化的關稅政策的影響微乎其微。由於我們擁有全球佈局，並且之前已採取措施使本地製造與本地銷售保持一致，我們估計，在採取任何緩解措施之前，今年剩餘時間內與關稅相關的額外成本最高可達約 300 萬美元。這些努力將主要集中在將成本轉嫁給客戶和優化供應鏈兩方面。

Across the markets we serve, we are seeing signs that customer inventory adjustments are nearing completion. As we move toward mid-year, we expect to see greater demand stability and improved order flow, supported by both emerging growth opportunities and favorable long-term macro trends.

在我們服務的市場中，我們看到客戶庫存調整即將完成的跡象。隨著年中臨近，我們預計需求將更加穩定，訂單量將有所改善，這得益於新興的成長機會和有利的長期宏觀趨勢。

Internally, we remain steadfast in our operating discipline, focus on cash generation and commitment to debt reduction, all while continuing to invest in the capabilities that define Allient as a long-term partner of choice in motion, controls and power technologies.

在公司內部，我們始終堅持營運紀律，專注於現金流的創造和債務的削減，同時繼續投資於各項能力，使 Allient 成為運動、控制和電力技術領域的長期首選合作夥伴。

Our goal is unchanged; sustainable, profitable growth that delivers value to our customers, our employees and our shareholders. And with the foundation we have built and the momentum we are carrying, we are confident in our path forward.

我們的目標始終如一：實現可持續的、獲利性的成長，為我們的客戶、員工和股東創造價值。憑藉我們已經打下的基礎和我們正在取得的進展，我們對未來的道路充滿信心。

With that, operator, let's open the line for questions.

好了，接線員，我們現在開始接受提問。

(Operator Instructions) And your first question today will come from Greg Palm with Craig-Hallum.

（操作說明）今天您的第一個問題將來自 Craig-Hallum 公司的 Greg Palm。

Congrats on the better results here. I'd love to just start with maybe a little bit more sort of a picture on the environment, both from a demand and supply and maybe you can weave in a little bit more about tariffs. But are you -- what are you seeing quarter-to-date? Any change in demand? Any hesitancy just given some of the news headlines and the tariffs and all that stuff?

恭喜你取得了更好的成績。我想先從環境的角度，包括需求和供給兩方面，更詳細地介紹一下，或許可以再談談關稅問題。但是，你——你從本季至今看到了什麼？需求有改變嗎？鑑於一些新聞標題、關稅等等，你還有什麼猶豫嗎？

Sure. So let's start with demand, Greg, your first question here. And I would tell you that we've seen very positive signs here at the start of the quarter. Demand is continuing. And given -- if it continues in the fashion, it is, we'll definitely see some incremental growth. The uncertainty with tariffs and agreements, I think if we're understanding correctly, there is an announcement today between the UK and US. I think that will be a positive sign. And as others begin to follow, I think stability will really help us sustain our momentum as we go forward.

當然。那麼，格雷格，讓我們先從需求問題開始，這是你的第一個問題。我可以告訴大家，本季初我們已經看到了非常正面的跡象。需求持續存在。而且，如果這種趨勢持續下去（確實如此），我們肯定會看到一些漸進式的成長。我認為，由於關稅和協議方面的不確定性，如果我們理解正確的話，英國和美國今天將發布一項聲明。我認為那將是一個積極的信號。隨著其他人開始效仿，我認為穩定性將真正幫助我們保持前進的勢頭。

Tariffs, we're working through them. And I think as we've provided numbers out there and our exposure for the rest of the year and at the high end of about $3 million, we talked about mitigation strategies, which would be to pass those costs on. That's our intent. And also looking at alternative sources of supply. We had started a process several years ago to localize supply chains and to build local and we're continuing down that path. We think it's a wise move now, and it will continue into the future.

關稅問題，我們正在努力解決。我認為，正如我們已經公佈的數據以及我們今年剩餘時間的風險敞口（最高約為 300 萬美元）一樣，我們也討論了緩解策略，即把這些成本轉嫁出去。這就是我們的意圖。同時，也在尋找其他供應來源。幾年前，我們啟動了供應鏈本地化和本地化建設進程，我們將繼續沿著這條道路前進。我們認為這是一個明智的舉措，未來也會繼續如此。

With regard to the challenge that we're facing immediately, that is the high rare earth magnets and the content that we have. And that is definitely a focused effort. There are many actions occurring in the supply chain. Some of them are going to take longer than others to be implemented. But I think our team is doing a great job in understanding what the challenge is there and making sure that we keep our customers supplied, many different areas that we're working on there to mitigate that.

就我們目前面臨的挑戰而言，那就是我們擁有的稀土磁鐵及其含量。這絕對是一項有針對性的努力。供應鏈中發生許多環節。有些措施的實施所需時間會比其他措施更長。但我認為我們的團隊在理解面臨的挑戰以及確保客戶持續獲得供應方面做得非常出色，我們正在許多不同的領域開展工作來緩解這項挑戰。

So I would tell you that all signs are positive and we're very encouraged about the continuation of our Simplify to Accelerate NOW, driving out cost while simplifying our organization and being much more responsive to our customers.

因此，我可以告訴大家，所有跡像都是積極的，我們對「簡化以加速」計劃的繼續推進感到非常鼓舞，該計劃旨在降低成本，同時簡化我們的組織，並能更好地響應客戶的需求。

Who knows what ends up happening with trade deals and tariff rates and whatnot. But how do you think you are positioned versus the market versus some of your competitors? I'm just -- I'm curious, just given your scale, the footprint, the localization efforts that you talked about, I mean, is there a chance that you end up winning business in an environment like this?

誰也不知道貿易協定、關稅稅率等等最終會如何收場。但您認為自己在市場和一些競爭對手中處於什麼位置？我只是——我很好奇，考慮到你們的規模、業務範圍以及你們所談到的本地化努力，我的意思是，在這種環境下，你們最終贏得業務的機會有多大？

Certainly. And because of our footprint that we already have and some of the opportunities that are presented to us, I think we're in a pretty good position in some cases where we have already resourced and/or are producing product in the US or North America that puts us in a pretty good position.

當然。由於我們已經擁有的業務規模以及擺在我們面前的一些機遇，我認為在某些情況下，我們已經在美國或北美擁有資源和/或正在生產產品，這使我們處於相當有利的地位。

So, we think there are opportunities, and we think that, that will help drive some growth. Again, there's challenges as well, and we talked about that. But I do think our team is really well focused. I can't speak for our competitors as far as what their actions are. They haven't told me lately what they're doing. But I will say that we focus on what we can do. And I'm confident that our team is really doing everything necessary and what they need to do to make sure that we protect our customers and we continue to drive growth.

所以，我們認為存在機遇，我們認為這將有助於推動成長。當然，也存在一些挑戰，我們也討論過這個問題。但我認為我們的團隊目標非常明確。我無法代表我們的競爭對手發言，也無法評價他們的行動。他們最近都沒告訴我他們在做什麼。但我想說的是，我們會專注於我們能做的事情。我相信我們的團隊正在盡一切必要努力，確保我們保護客戶並繼續推動成長。

Yes. I guess maybe a different way to look at it is, are you seeing any more like inbound interest activity from either current customers with new applications or even new customers in total?

是的。我想或許可以換個角度來看，您是否看到現有客戶的新申請或新客戶數量增加？

Yes. In new applications, new customers, existing applications, where we may have lost some of the business based upon pricing and foreign content that is now being presented to us again to take another look at. So all of those activities are ongoing right now. And there's some -- and I won't get into the details of some of them, but there's some pretty exciting ones that are moving very, very fast.

是的。在新的應用程式、新的客戶、現有的應用程式中，我們可能因為定價和外國內容而失去了一些業務，現在這些內容又重新擺在我們面前，需要我們重新審視。所以所有這些活動目前都在進行中。還有一些項目——我不會詳細介紹其中一些，但其中一些非常令人興奮，發展速度非常非常快。

Your next question today will come from Gerry Sweeney with ROTH Capital.

今天下一個問題將來自 ROTH Capital 的 Gerry Sweeney。

Really just one question and maybe it fits to just overall strategy as well. And I apologize, I jumped on a touch late. But in the prepared remarks, you talked about the vehicle business and shift away from lower margin, sort of higher revenue-related work to higher-margin opportunities.

其實只有一個問題，或許也跟整體策略有關。很抱歉，我來晚了一點。但在事先準備好的演講稿中，您談到了汽車業務，以及從利潤率較低、收入較高的相關工作轉向利潤率更高的機會。

Does this underscore maybe a larger shift that's going to go on in the vehicle space? I mean, historically, some of that business was some of your older, more mature business, lower margins and less maybe systems oriented, for lack of a better word. But just curious what's going on there over the longer term?

這是否預示著汽車領域即將發生更大的轉變？我的意思是，從歷史上看，其中一些業務是比較老舊、比較成熟的業務，利潤率較低，而且可能不太注重系統性（暫且這麼說吧）。但我很好奇，從長遠來看，那裡會發生什麼事？

Sure. So I will say this to you, is that if we go back in time, as we announced the wins that we had in the vehicle markets, and we said that those would replace existing business that we had for when we acquired a primary supplier to that market and that we would correct some of the margin challenges that we had, and it has absolutely done that.

當然。所以我要告訴大家的是，如果我們回顧過去，就像我們宣佈在汽車市場取得的成功一樣，我們當時說過，這些成功將取代我們收購該市場主要供應商後所擁有的現有業務，並且我們將糾正我們面臨的一些利潤率挑戰，而事實也的確如此。

So, the old business that was not favorable, in some cases, negatives, margins or profitability have converted to a reasonable return based upon the market we're serving. We also have made a conscious decision in the company and changes have occurred that says we are no longer chasing high-volume automotive applications that we would consider could be -- or could be considered commoditized. If there's a specialty application that fits what we offer and the margins are acceptable to us, then we will pursue it.

因此，過去那些不太有利（在某些情況下甚至是虧損）、利潤率或盈利能力不佳的業務，已經根據我們所服務的市場轉化為合理的回報。公司也做出了一個有意識的決定，並進行了一些改變，那就是我們不再追求我們認為可能已經商品化的大批量汽車應用。如果某個特殊應用符合我們提供的服務範圍，且利潤率在我們可接受的範圍內，那麼我們就會去嘗試。

But so, some of the past investments that we had to make in that marketplace are pretty heavy, and they take years before you start to realize any benefit from it, and we're out of it. It's just a decision we made, and it's done. Now, I will say that we're very pleased with our current customer base and the applications that we're on. We believe we bring some specialty capabilities and knowledge there, and that's where we want to focus. That's more us than what the other markets were.

但是，我們過去在該市場上的一些投資相當大，需要數年時間才能開始從中獲得任何收益，而我們已經退出了那個市場。這只是我們所做的一個決定，已經決定了。現在，我想說，我們對目前的客戶群和我們正在進行的應用都非常滿意。我們相信我們能為那裡帶來一些專業能力和知識，而這正是我們想要重點關注的領域。這比其他市場更能代表我們。

Going off of memory, several years ago, I think you won some programs that sort of ramped up for a couple of years. I think they're more European or Eastern European based and they kind of trend down. Hearing what you're saying is programs are going well, running through, but you're going to pursue less of those programs in the future and focus more on...

憑記憶，幾年前，我想你贏得了一些項目，這些項目在接下來的幾年裡發展壯大。我認為它們更多地以歐洲或東歐為基地，而且呈下降趨勢。聽你這麼說，你的專案進展順利，正在按部就班地進行，但你未來會減少參與這些項目，把更多精力放在…

Yes, what I would say is this. Yes. So, existing programs where we have -- we bring something to the table in terms of the value, and it's not, as I said, commoditized. We absolutely will continue to support our customer base and we'll move forward on those and continue to support those as we go forward. What we're not doing anymore is those are long-term high investment in.

是的，我想說的是…是的。所以，在現有的項目中，我們能夠帶來價值，而且正如我所說，它不是商品化的。我們一定會繼續支持我們的客戶群體，我們將繼續與他們保持聯繫，並在未來的發展中繼續為他們提供支援。我們現在不再做的是那些需要長期高投資的項目。

Upfront high investment.

前期投入較高。

Upfront high investment in terms of design, capital investment, and you've got to be prepared two, and three and four years in advance before you start delivering any product and starting to see any return on that. Our business has changed and the dynamics of our business that has changed says to us that -- Look, let's focus our efforts where we truly bring additional value and more value, and it doesn't require that high upfront investment and waiting long periods of time before you start to see a return and hope that there aren't any changes that are occurring in that market.

前期在設計和資本投入方面需要大量投資，而且你必須提前兩到三年甚至四年做好準備，才能開始交付任何產品並開始看到任何回報。我們的業務發生了變化，業務動態的變化告訴我們——聽著，讓我們把精力集中在真正能帶來額外價值和更多價值的地方，這不需要高額的前期投資，也不需要等待很長時間才能看到回報，更不需要祈禱市場不會發生任何變化。

And I think as we've seen over the past, there's always something that disrupts it and always pushes it to the right. But fortunately, I think we're in a good spot right now. We've got a good balance of leveraging the capabilities that that brings to us. We like the volume because it gives us enough core unit volume to be competitive and to leverage that into some of our other markets that the margins can be appreciably higher. So, it is correct. I mean, it's a definite shift. It's been going on for the last year, and we're really focused on it.

而且我認為，正如我們過去所看到的，總是會有一些事情擾亂它，並且總是把它推向右邊。但幸運的是，我認為我們現在處境不錯。我們已經很好地平衡瞭如何利用它所帶來的能力。我們喜歡這樣的銷量，因為它為我們提供了足夠的核心產品銷量，使我們能夠保持競爭力，並利用這種競爭力拓展到其他一些市場，從而獲得更高的利潤率。所以，答案是正確的。我的意思是，這絕對是一種轉變。這件事已經持續一年了，我們一直非常關注它。

I suspect as that shift continues, I mean that -- I mean, that's going to help margins and other returns on assets and things like that. Is that fair to assume?

我懷疑隨著這種轉變的持續，我的意思是——我的意思是，這將有助於提高利潤率和其他資產回報率等等。這樣的假設合理嗎？

Yes, it's fair. That's fair.

是的，這很公平。這很合理。

I lied, I had two questions, sorry. Easy one, on inventory turns -- I think it should be. Inventory was 2.7 times, you highlighted 3.1 times. I forget exactly where you were a couple of years ago, but the world has certainly changed in terms of supply chain, tariffs, all that stuff. But what would maybe aspirational target? Where do you think you could get to on inventory turns if 3.1 times is, that may be the answer.

我撒謊了，我其實有兩個問題，對不起。關於庫存週轉率，這很簡單——我認為應該是這樣。庫存量是原來的 2.7 倍，您標記了 3.1 倍。我記不清你幾年前的具體位置了，但就供應鏈、關稅等等方面而言，世界肯定已經改變了。但理想的目標可能是什麼呢？你認為如果庫存週轉率為 3.1 倍，那麼庫存週轉率可以達到多少？這或許就是答案。

Well, I think we want to continue to obviously improve on the 3.1 times. I think as you can appreciate, what we might pause on is, what steps might we have to take in the supply chain in collaboration with our customers to manage the short-term noise that the current geopolitical and trade policies are.

嗯，我認為我們顯然希望繼續改進，並爭取在 3.1 秒的基礎上更進一步。我想您應該能理解，我們可能需要停下來思考的是，為了應對當前地緣政治和貿易政策帶來的短期波動，我們需要在供應鏈中與客戶合作採取哪些措施。

So I think we're very well poised to continue to improve that number, but I'm a little bit cautious only because of -- we might have to take some steps to make some investment in inventory in collaboration with our customer base in order to -- just to manage the short term.

所以我認為我們完全有能力繼續提高這個數字，但我還是有點謹慎，因為——我們可能需要與客戶群合作，採取一些措施對庫存進行一些投資，以便——僅僅是為了應對短期問題。

Okay. That's fair. I mean, probably low-hanging fruit has been taken. This is -- there's probably opportunity, but it takes some planning, maybe a little bit of strategic investment, et cetera, to move it to the next levels?

好的。這很合理。我的意思是，可能容易得手的成果已經被摘取了。這或許蘊藏著機遇，但需要一些規劃，或許還需要一些策略性投資等等，才能提升到更高層次？

Right.

正確的。

(Operator Instructions) And your next question today will come from Orin Hirschman with AIGH Investment Partners.

（操作員說明）您今天的下一個問題將來自 AIGH 投資夥伴公司的 Orin Hirschman。

Congratulations on all the progress, especially in a difficult environment. You mentioned some very specific numbers in terms of how much you consume the rare earth elements that go for the magnets for your motors. And you mentioned some of the mitigation strategies that you have. I guess my question is that one number of $8 million or the $1.5 million number, what does that translate into?

恭喜你們取得的所有進展，尤其是在如此艱難的環境下。您提到了一些非常具體的數字，說明您消耗了多少用於製造馬達磁鐵的稀土元素。您也提到了一些您採取的緩解策略。我想問的是，800萬美元或150萬美元這兩個數字，分別代表什麼？

I know it's not exact -- you don't have an exact number. But does it translate into $100 million of motors, $50 million of motors? What is that little amount of material or not maybe not such a small amount of material translate into, in terms of having to protect sales, if there is a metric that you could give us?

我知道這並不精確——你沒有一個確切的數字。但這能轉化為價值 1 億美元的電機，或價值 5,000 萬美元的電機嗎？如果要保護銷售額，那麼這點材料（或者說，也許不算少的材料）意味著什麼？能否提供一個衡量標準？

Yes, fair question. I think a couple of things just to point out is that we have the granularity on that because we have a team that's been assigned to that, been doing a great job of making sure that we fully understand what the potential impact may be. We can set priorities in the proper manner and we can set the mitigation strategies down the road. So this is a complete collaboration.

是的，問得好。我想指出兩點：我們之所以能夠細緻入微地了解情況，是因為我們專門安排了一個團隊負責這項工作，他們做得非常出色，確保我們充分了解可能產生的潛在影響。我們可以合理地設定優先事項，並制定未來的緩解策略。所以這是一次全面的合作。

I mean it gets back to -- and we've had a number of acquisitions. So, we have a significant supply base and some of it -- it's fragmented and it's small in some cases. So, if we truly take a look at the numbers, I mean, as it spreads across different markets, the value of the magnets within an application can change dramatically.

我的意思是，這要追溯到——我們已經進行了一系列收購。所以，我們擁有龐大的供應基礎，但其中一些——它很分散，在某些情況下規模較小。所以，如果我們仔細研究這些數據，就會發現，隨著磁鐵在不同市場的普及，其在應用上的價值可能會發生巨大變化。

So, to give you a number, and I'll give you, let's just call it an average number, so you get a feel for the impact. But typically -- and that's typically, and this can, the range can vary a lot. Let's say 20% of the cost of goods sold could be in magnet cost. And if you got $1.5 million that we're talking about, you can do the math on that.

所以，為了給你一個數字，我給你一個，我們姑且稱之為平均值，這樣你就能感受到它的影響。但通常情況下——而且通常情況下，這個範圍可能會有很大的變化。假設銷售成本的 20% 是磁鐵成本。如果你有150萬美元，也就是我們說的這150萬美元，你可以自己算算。

We're talking $7.5 million, $8 million in sales at a cost of goods sold level, translate into a gross margin and sales. Without me giving you exact numbers, I think you can do the math and you can kind of figure that out. But what's most important is what you pointed out is that the granularity we have gives us the opportunity now to really go attack this. And I just have to compliment our internal teams who worked hard at this.

我們說的是 750 萬美元到 800 萬美元的銷售額，以銷售成本計算，轉換為毛利率和銷售額。我不給你確切的數字，但我相信你可以自己算算，應該要明白是怎麼回事。但最重要的是，正如你所指出的，我們現在所掌握的精細程度讓我們有機會真正著手解決這個問題。我還要特別表揚一下我們內部為此付出辛勤努力的團隊。

This happens -- unfortunately, in my career, this happens every six or seven years. We see, magnet prices, if you go back in time, there's no secret, China bought the market. and they dropped -- the prices dropped drastically. You go back 20 years ago, they dropped drastically. And once China owned the market, they started to increase prices, and they increased them dramatically.

這種情況時有發生──不幸的是，在我的職業生涯中，這種情況每六、七年就會發生一次。我們可以看到，磁鐵價格，如果你回顧過去，這並非秘密，中國收購了市場。然後價格暴跌。20年前，它們的數量急劇下降。一旦中國掌控了市場，他們就開始提高價格，而且漲幅非常大。

And then you had to pay upfront. I mean, if you didn't commit to paying upfront immediately, you would not have a source of supply. And every six or sevenyears, we kind of go back through this cycle again. And that's why it's very important for us and we'd already taken mitigation strategies to design those materials out where possible, okay, and or to find other sources of supply.

而且你還得預付。我的意思是，如果你不立即預付貨款，你就沒有貨源。每隔六、七年，我們就會再次經歷這個循環。所以對我們來說，這一點非常重要，我們已經採取了緩解策略，盡可能地在設計中消除這些材料，或尋找其他供應來源。

As the prices have increased, it's opened the opportunities for more suppliers around the world. And this time was a little bit different. Not was it just a pricing challenge, it became, could you even get them, and a supply challenge with a threat of not supplying magnets. And the magnets and there are certain selected areas of China that says, they will not ship magnets in defense applications to the US, okay?

隨著價格上漲，這為世界各地的更多供應商創造了機會。但這次情況略有不同。這不僅是價格上的挑戰，而是能否買到磁鐵的挑戰，以及供應可能出現的磁鐵短缺問題。還有磁鐵，中國某些特定地區表示，他們不會向美國出口用於國防用途的磁鐵，懂嗎？

I don't want you to think this is just a US issue either. This time, it's applied around the world. So even our sources or our companies that manufacture product around in other regions besides the US and North America are impacted with these tariffs or this -- the restriction of shipping. They're further asking for more information, and all companies in our business are facing the same challenge and same concern about wanting to know what the applications are, the end use and show pictures of what we're doing.

我也不希望你們認為這只是美國的問題。這一次，它在全球範圍內應用。因此，即使是我們在美國和北美以外的其他地區生產產品的供應商或公司也會受到這些關稅或運輸限制的影響。他們還要求提供更多信息，我們行業的所有公司都面臨著同樣的挑戰和同樣的擔憂，那就是想知道這些應用是什麼，最終用途是什麼，以及展示我們正在做的事情的圖片。

Now, I don't have a great deal of faith that that's going to stay within our suppliers and that there may be some reach in and do that. So there's a significant long-term risk and there's a reach in now that we're moving fast and we'll move -- continue to move fast. But the data we have shows us where we have to focus, right?

現在，我不太相信這件事會一直由我們的供應商負責，可能會有人插手去做。所以有重大的長期風險，而且現在我們行動迅速，並將繼續快速行動，這會帶來一定的風險。但我們掌握的數據已經告訴我們應該把重點放在哪裡，對吧？

Okay. And just going back to follow up on the last question, just my second question is, just in terms of the recreational vehicles, those type of vehicles, how much of that your business is still involved there roughly from a revenue perspective, if you could say? And does it bottom here? Does it feel like it's bottoming? Is something that you're eventually going to exit? I apologize if I'm not more familiar with the strategy there.

好的。回到上一個問題，我的第二個問題是，就休閒車輛這類車輛而言，從收入角度來看，貴公司目前在該領域還有多少業務？它會在這裡觸底嗎？感覺像是觸底了嗎？這是你最終會退出的事情嗎？如果我對那方面的策略不太熟悉，請見諒。

No, I wouldn't say we -- so let's clarify, we call recreational vehicle market and so forth as off-road vehicles. I mean our vehicle market is made up of several different field of applications, as I would call it. And when we talk about automotive per se and you talk about recreational vehicles, there are two specific areas.

不，我不會說我們——所以讓我們澄清一下，我們把休閒車市場等等稱為越野車。我的意思是，我們的汽車市場是由幾個不同的應用領域組成的，我姑且這麼稱呼它。當我們談論汽車本身，談到休閒車輛時，有兩個具體的領域。

In addition to that, we're in buses, we're in trucks, we're in construction, we're in marine, we're in rail and so forth, okay? So I would say this to you that the recreational vehicle, which as we talk -- as we say that, the recreational vehicle is also made up of vehicles that are used in industrial and commercial space. It's the same vehicles that -- or same core vehicle as you'll see at the side of the road, you'll see in construction projects, you'll see in large facilities, so -- on golf courses, et cetera.

除此之外，我們還在公車上、卡車上、建築工地上、海運業、鐵路等等行業工作，懂嗎？所以我想對你們說的是，休閒車輛，正如我們所說，休閒車輛也包括用於工業和商業領域的車輛。它和你在路邊、建築工地、大型設施、高爾夫球場等地看到的車輛，或者說核心車輛是一樣的。

So, I would tell you that there is a piece of that, that's not consumer-based. And maybe, if I give you a number of 40% to 50%, that would be pretty accurate. There is also defense applications for that. So we're not exiting it. We can compete there. We can certainly compete in a level and fair fight, okay?

所以，我想說的是，其中有一部分並非基於消費者。或許，如果我給的數字是 40% 到 50%，那就相當準確了。它還有國防方面的應用。所以我們不會退出。我們可以在那裡競爭。我們當然可以在公平的競爭中一較高下，好嗎？

We have -- I'm very confident in our team and we've come up with -- we kind of led the changeover from -- into power steering on those vehicles, and we are the innovators and the early, and enjoyed the early part of that business. And of course, as it's grown, competitions come in. So, we recognize where we are. And I would just say to you, if -- sometimes the circumstances are beyond our control. If a company is willing to accept no profit to buy the business, then we're not, okay? We're not. We're not in the business to just do things for the sake of doing them. We're in the business to make a profit.

我對我們的團隊非常有信心，我們率先實現了從無轉向到動力轉向的轉變，我們是創新者和先行者，並且享受了這項業務的早期階段。當然，隨著它的發展，競爭也隨之而來。所以，我們清楚自己所處的位置。我只想對你們說，有時候情況是我們無法控制的。如果一家公司願意不獲利收購這家企業，那我們就不會收購，懂嗎？我們不是這樣。我們從事這個行業不是為了做事而做事。我們做生意是為了獲利。

And I think as time goes on, especially what we see happening in the market today, I think we have certainly an opportunity to compete. And remembering half of that business is industrial and commercial, not just consumer-based.

我認為隨著時間的推移，尤其是在我們今天看到的市場情況下，我們肯定有機會參與競爭。還要記住，其中一半的業務是工業和商業，而不僅僅是消費品業務。

Does it feel like the consumer part of it has bottomed or?

感覺消費者的需求部分已經觸底了嗎？

Yes. You might be better off asking the manufacturers themselves. They do have reports that come out and they talk about their market share and what they see happening. And I think if I can just go ahead and restate some of what we've heard is that there's challenges. I mean that they're having challenges. And there was an over demand, the demand during COVID that really peaked.

是的。你最好直接問製造商。他們會發布報告，談論他們的市場份額以及他們觀察到的發展趨勢。我想我可以重申我們聽到的一些內容，那就是存在一些挑戰。我的意思是，他們面臨挑戰。而且當時需求過剩，新冠疫情期間的需求更是達到了高峰。

And now people have the vehicles and consumer spending is a little bit more cautious and typically, you would see upgrades. And I think if the sentiment about these long-term prospects in the economy and so forth go well, you'll see it return. You'll see it start to come back. But I think that there's -- listen to the conference calls, if you will, of the major suppliers in those markets, and I think that's kind of what they're saying. There's caution there. But I think there's optimism as well that we'll come back.

現在人們都擁有了車輛，消費支出也更加謹慎，通常情況下，你會看到車輛升級換代的情況。我認為，如果人們對經濟的長期前景等看法良好，它就會回歸。你會看到它開始恢復的。但我認為──如果你聽這些市場主要供應商的電話會議，你會發現他們大概就是這個意思。這裡面蘊含著謹慎。但我認為大家也都樂觀地認為我們會回來的。

Your next question today will come from Robert Van Voorhis with Vanatoc Capital Management.

今天的下一個問題將來自 Vanatoc Capital Management 的 Robert Van Voorhis。

Great quarter. Just sort of a quick, I would say, boring question, and maybe it's better for Jim. But can you just comment on, as revenue starts to ramp, as we're coming out of this period, what kind of operating leverage do we expect? Is there going to be a lot of -- lot more investment in SG&A to compensate for that? My assumption is probably not, but I just thought I would ask.

很棒的季度。這只是個簡短的、或許有點無聊的問題，也許對吉姆來說會更好。但是，隨著收入開始成長，我們即將走出這段時期，您能否談談我們預期的經營槓桿會是什麼樣的？為了彌補這部分損失，是否會在銷售、管理及行政費用上投入更多資金？我猜可能不是，但我還是想問。

Yes. No, obviously, we're very focused on our Simplify to Accelerate NOW. That's going to continue into the very near-term. And so, our focus is on what we said. We're looking to continue to manage our debt. We'll make strategic investments, as I mentioned before, in inventory where we think it's appropriate. But our goal is to continue to manage our cash flow and allocate it appropriately as we see fit during the rest of 2025.

是的。不，顯然，我們現在非常專注於「簡化以加速發展」。這種情況在短期內還會持續。因此，我們的重點在於我們所說的話。我們希望繼續控制債務。正如我之前提到的，我們會對我們認為合適的地方進行策略性庫存投資。但我們的目標是在 2025 年剩餘的時間裡繼續管理現金流，並根據我們的判斷進行適當分配。

That concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想把會議交還給管理階層，請他們作總結發言。

Thank you, everyone, for joining us on today's call and for your interest in Allient. We will be participating in the Craig-Hallum Institutional Investor conference on May 28 in Minneapolis and then the Virtual Northland Growth Conference on June 25.

感謝各位參加今天的電話會議，也感謝各位對Allient的關注。我們將於 5 月 28 日在明尼阿波利斯參加 Craig-Hallum 機構投資者會議，然後在 6 月 25 日參加虛擬北地增長會議。

Otherwise, as always, please feel free to reach out to us at any time, and we look forward to talking to you all again after our second quarter 2025 results. Thank you for your participation, and have a great day.

此外，一如既往，歡迎隨時與我們聯繫，我們期待在 2025 年第二季業績公佈後再次與大家交流。感謝您的參與，祝您有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。