Comtech Telecommunications Corp (CMTL) 2023 Q4 法說會逐字稿

Welcome to Comtech's Fiscal Q4 2023 Earnings Conference Call. As a reminder, this conference is being recorded today, Thursday, October 12, 2023.

歡迎參加 Comtech 2023 年第四季財報電話會議。謹此提醒，本次會議將於今天（2023 年 10 月 12 日星期四）進行錄製。

I would now like to turn the conference over to Mr. Robert Samuels of Comtech. Please go ahead, sir.

現在我想將會議轉交給 Comtech 的 Robert Samuels 先生。請繼續，先生。

Thanks, operator. Good afternoon, everyone, and thanks for taking the time to dial in today. I'm Rob Samuels, Comtech's Head of Investor Relations. Welcome to the Comtech Telecommunications Corp.'s conference call for the fourth quarter fiscal year 2023. Today, I'm here with: Comtech Chairman, President and Chief Executive Officer; Ken Peterman. We're also joined by Mike Bondi, our CFO.

謝謝，接線生。大家下午好，感謝您今天抽空撥電話。我是 Rob Samuels，Comtech 投資人關係主管。歡迎參加 Comtech 電信公司 2023 財年第四季的電話會議。今天，我出席的嘉賓有：Comtech 董事長、總裁兼執行長；肯彼得曼.我們的財務長 Mike Bondi 也加入了我們的行列。

Before we get started today, I'll say that both myself and Ken are always available to answer questions our investors may have. So please get in touch if you want to organize a meeting to talk about the company, our results or our strategy. We also have a detailed discussion of the quarter in our shareholder letter available on our website, and we have also been working to communicate directly about our business and our market between quarters in our blog Comtech Signals.

在我們今天開始之前，我要說的是，我自己和 Ken 都隨時可以回答我們的投資者可能提出的問題。因此，如果您想組織一次會議來討論公司、我們的業績或我們的策略，請與我們聯絡。我們也在網站上的股東信中詳細討論了本季度，並且我們也一直致力於在部落格 Comtech Signals 中直接溝通季度之間的業務和市場。

Finally, let me remind you of the company's safe harbor language. Certain information presented in this call will include but not be limited to, information relating to the future performance and financial condition of the company, the company's plans, objectives and business outlook, and the plans, objectives, and business outlook of the company's management. The company's assumptions regarding such performance, business outlook and plans are forward-looking in nature, and always involve significant risks and uncertainties. Actual results could differ materially from such forward-looking information. Any forward-looking statements are qualified in their entirety by cautionary statements contained in the company's SEC filings.

最後，讓我提醒您公司的安全港語言。本次電話會議中提供的某些資訊將包括但不限於與公司未來業績和財務狀況、公司計劃、目標和業務前景以及公司管理層的計劃、目標和業務前景相關的資訊。本公司對此類業績、業務前景和計劃的假設本質上是前瞻性的，並且始終涉及重大風險和不確定性。實際結果可能與此類前瞻性資訊有重大差異。任何前瞻性陳述均受到該公司提交給美國證券交易委員會的文件中包含的警告性陳述的全面限制。

Now, I'm pleased to introduce the President and Chief Executive Officer of Comtech, Ken Peterman. Ken?

現在，我很高興介紹 Comtech 總裁兼執行長 Ken Peterman。肯？

Thank you, Rob. Hello, everyone, and thanks for joining us today. This call and this quarter represents a significant inflection point for Comtech. It not only marks the close of our FY 2023 fiscal year, but also demonstrates the success and substantial positive momentum we are seeing as a result of our One Comtech transformation.

謝謝你，羅布。大家好，感謝您今天加入我們。這次電話會議和本季代表了 Comtech 的重要轉捩點。這不僅標誌著我們 2023 財年的結束，而且還展示了 One Comtech 轉型所取得的成功和巨大的積極勢頭。

In fiscal 2023, we bought 14 historically siloed businesses together and successfully instituted common practices, tools and processes across our new unified enterprise. We implemented our first ever comprehensive people strategy. We established EVOKE, our innovation foundry and brought on strategic partners who are continuing to work with us to develop and deliver new comprehensive solutions aligned with our vision for smart networks and unique technology convergences that provide our global customers with new forms of connectivity, insights and actionable intelligence that have the potential to fundamentally transform technology landscapes across the globe.

在 2023 財年，我們一起收購了 14 家歷史上孤立的企業，並在我們新的統一企業中成功建立了通用實踐、工具和流程。我們實施了第一個全面的人才策略。我們建立了創新鑄造廠EVOKE，並引入了策略合作夥伴，他們將繼續與我們合作開發和提供新的全面解決方案，這些解決方案符合我們對智慧網路和獨特技術融合的願景，為我們的全球客戶提供新形式的連接、見解和技術。具有可操作性的情報，有可能從根本上改變全球的技術格局。

As I shared during our Investor Day in June, our customers need more than a vendor. They need a technology partner, one who listens and solves the challenges they are facing every day with the foresight to simultaneously position proactively to address the challenges that are looming on their horizon. Over the past 12 months, we've streamlined our business to better align with the emerging market convergences and technology trajectories, which as you've seen over the past few months alone is driving hundreds of millions of dollars in new business opportunities for Comtech. Our global customers ranging from the Department of Defense and emergency service providers to commercial mobile network operators and new satellite service providers. They continue to place their trust in Comtech, and these customers are also recognizing the tremendous value our solutions can deliver to address their toughest challenges.

正如我在六月的投資者日分享的那樣，我們的客戶需要的不僅僅是供應商。他們需要一個技術合作夥伴，能夠傾聽並解決他們每天面臨的挑戰，並且具有遠見，同時積極主動地應對迫在眉睫的挑戰。在過去的12 個月裡，我們精簡了業務，以更好地適應新興市場的融合和技術發展軌跡，正如您在過去幾個月所看到的那樣，這為Comtech 帶來了數億美元的新商機。我們的全球客戶包括國防部和緊急服務提供者、商業行動網路營運商和新衛星服務供應商。他們繼續信任 Comtech，這些客戶也意識到我們的解決方案可以為解決他們最嚴峻的挑戰提供巨大的價值。

This year, we moved proactively, thoughtfully and quickly as a unified enterprise to effectively respond to the increasing pace of change in our end markets to build on our existing products and bring forward new technologies that underpin modern communications and to deliver the kinds of solutions and services our customers really need from us. Based on our accomplishments in fiscal 2023, I believe we have excelled at overcoming the challenges posed by that kind of transformational change. Our progress is reflected in both our financial performance and our positioning within the market for growth next year and beyond. Since the start of our One Comtech journey, we have focused on delivering exceptional results for customers.

今年，我們作為一個統一的企業，積極主動、深思熟慮、快速行動，有效應對終端市場日益加快的變化，以現有產品為基礎，推出支撐現代通信的新技術，並提供各種解決方案和解決方案。客戶真正需要我們提供的服務。根據我們在 2023 財年的成就，我相信我們在克服這種轉型變革帶來的挑戰方面表現出色。我們的進步體現在我們的財務表現和我們在明年及以後成長的市場定位。自 One Comtech 之旅開始以來，我們一直專注於為客戶提供卓越的成果。

Today, through our renewed and unified customer-centric approach, we are leveraging our culture of innovation, differentiated expertise, technology leadership and unique understanding of our customers' needs to position Comtech to lead the way in delivering the blended, hybrid smart-enabled solutions and services that will bring forward smart networks and new technology convergences that can empower a truly connected planet. As we have pursued these strategic goals over the past fiscal year, we have remained focused on the crucial daily work of improving our operations, balance sheet and financial performance. We've made difficult decisions where necessary to empower our teams on the front-line with both the resources they require and the authorities to address our customers' needs. Importantly, we're seeing the results of these efforts every single day.

今天，透過我們更新和統一的以客戶為中心的方法，我們正在利用我們的創新文化、差異化專業知識、技術領先地位和對客戶需求的獨特理解，使Comtech 在提供混合型智慧解決方案方面處於領先地位和服務將推動智慧網路和新技術融合，從而實現真正互聯的地球。在我們在過去的財年中追求這些策略目標的同時，我們仍然專注於改善營運、資產負債表和財務表現的重要日常工作。我們在必要時做出了艱難的決定，為我們的第一線團隊提供所需的資源和權力，以滿足客戶的需求。重要的是，我們每天都看到這些努力的成果。

Our teams are empowered to develop new business capture strategies that align with and address our customers' most difficult challenges, and we're winning large and strategically important contracts that accentuate our technology and thought leadership. We are still providing the products and services that Comtech is known for, and our customers are seeing that we can now be relied upon to bring even more comprehensive value, solve their toughest challenges and apply technology in innovative ways that truly change the game. The updated technology in our next-generation troposcatter family of systems is a great example, which I'll talk more in depth about in just a few minutes.

我們的團隊有權制定新的業務捕獲戰略，以應對和解決客戶最困難的挑戰，並且我們正在贏得具有戰略意義的大型合同，這些合同凸顯了我們的技術和思想領導力。我們仍在提供 Comtech 聞名的產品和服務，我們的客戶看到我們現在可以信賴我們帶來更全面的價值，解決他們最棘手的挑戰，並以真正改變遊戲規則的創新方式應用技術。我們下一代對流層散射系統系列中的更新技術就是一個很好的例子，我將在幾分鐘內更深入地討論這一點。

Our relentless attention to performance improvement has not only expanded adjusted EBITDA margins sequentially every quarter of this fiscal year, but also has given us the space we needed to address strategic questions about the composition of our portfolio and the strength of our balance sheet. Importantly, following a careful review of our current business and product lines and considering the kind of software-defined and solution-based enterprise, our customers need us to be in the future. We identified opportunities to rebalance our segments and ultimately choose to divest our solid-state power amplifier product line. Upon completing this transaction in the short-term, we anticipate using some or all of the net proceeds from this divestiture to meaningfully reduce our outstanding debt, leverage ratio and interest payments.

我們對業績改進的不懈關注不僅使本財年每個季度的調整後 EBITDA 利潤率連續擴大，而且還為我們提供了解決有關投資組合構成和資產負債表實力的戰略問題所需的空間。重要的是，在仔細審查我們目前的業務和產品線並考慮軟體定義和基於解決方案的企業類型之後，我們的客戶需要我們在未來成為這樣的企業。我們發現了重新平衡細分市場的機會，並最終選擇剝離我們的固態功率放大器產品線。在短期內完成這項交易後，我們預計將使用此剝離的部分或全部淨收益來有意義地減少我們的未償債務、槓桿率和利息支付。

We're also simultaneously addressing the need to refinance our credit facility, which expires in October 2024. This process is moving forward, and we believe we're headed toward a solution. We have engaged in productive discussions with various potential sources of capital, including our existing preferred shareholders regarding alternative investment structures. We are also in discussions with our existing lenders regarding a short-term amendment and extension of our credit facility, if needed, in the interim, while we move toward completion of a longer-term solution. We anticipate having more to share prior to announcing our first quarter fiscal 2024 results.

我們也同時解決了對將於 2024 年 10 月到期的信貸安排進行再融資的需求。這個過程正在向前推進，我們相信我們正在尋找解決方案。我們與各種潛在資本來源進行了富有成效的討論，包括我們現有的優先股股東對另類投資結構的討論。我們也正在與現有貸款人討論短期修改和延長我們的信貸安排（如果需要），同時我們將逐步完成長期解決方案。我們預計在宣布 2024 財年第一季業績之前會有更多資訊分享。

Overall, I am pleased with the significant progress being made with respect to strengthening our balance sheet. Such efforts, combined with optimizing our cost structure and improving business operations provide a solid foundation as we look ahead to our ongoing transformation in fiscal 2024. Let me emphasize that the initiatives we have launched and the actions we are taking are working. Simply put, the improvements to our business processes and the increased attention to risk management and process discipline as we implement common systems and platforms across our enterprise have significantly enhanced our ability to identify and exploit synergies, increase cross collaboration and optimize business execution across the entire organization.

總的來說，我對加強資產負債表方面取得的重大進展感到高興。這些努力，加上優化我們的成本結構和改善業務運營，為我們展望 2024 財年的持續轉型奠定了堅實的基礎。我要強調的是，我們已經啟動的舉措和正在採取的行動正在發揮作用。簡而言之，隨著我們在整個企業實施通用系統和平台，我們對業務流程的改進以及對風險管理和流程紀律的日益關注，顯著增強了我們識別和利用協同效應、增加交叉協作和優化整個業務執行的能力。組織。

Meanwhile, as I shared moments ago, focusing on the differentiated expertise and the diversity of perspective of our people, collaborating with our customers like never before and leveraging our unique culture of innovation and technology leadership is resulting in our winning significant strategic new business and strengthening our core market positions and enabling us to expand into new market adjacencies in ways that validate that our One Comtech transformation is truly working. Simply put, we're securing significant strategic enduring wins, and I think there's more coming. But for now, let me highlight a few.

同時，正如我之前分享的那樣，專注於我們員工的差異化專業知識和觀點多樣性，以前所未有的方式與客戶合作，並利用我們獨特的創新和技術領先文化，使我們贏得了重要的策略性新業務並加強了我們的實力。我們的核心市場地位，使我們能夠以驗證 One Comtech 轉型真正發揮作用的方式擴展到新的鄰接市場。簡而言之，我們正在取得重大的策略性持久勝利，而且我認為還會有更多勝利。但現在，讓我強調一些。

The award of the Global Field Service Representative contract from the U.S. Army with an expected value of $544 million. The award of the Enterprise Digital Intermediate Frequency Multi-Carrier or EDIM, modem contract from the U.S. Army for $48.6 million plus what we believe could be full rate production potential of over $1 billion based on the U.S. government's prior fielding of the legacy EBEM modem, an award from the U.S. Army for our next-generation troposcatter systems with an initial contract value of $30 million.

美國陸軍授予全球戰地服務代表合約，預計價值 5.44 億美元。美國陸軍授予企業數位中頻多載波（EDIM）調變解調器的全速生產潛力可能超過 10 億美元，美國陸軍授予我們下一代對流層散射系統合同，初始合約價值3000 萬美元。

Building upon our March 2020 contract award to design, deploy and operate a next-generation 911 system for the State of Ohio; $21 million of initial funding on this contract that we believe could be worth approximately $85 million over its lifespan. And being named one of multiple awardees on a Defense Logistics Agency, or DLA, Gateway to Sustainment, indefinite delivery and indefinite quantity, multiple award contract with a ceiling value of $3.2 billion. These are very significant wins that are a direct result of our business optimization initiatives, our improved enterprise-wide synergy and collaboration, our improving business process discipline and a focus on our strategic growth priorities. These wins also validate our progress toward becoming One Comtech, an industry leader in technology, innovation and listening to our customers to create the solutions they most value.

以我們 2020 年 3 月授予的合約為基礎，為俄亥俄州設計、部署和營運下一代 911 系統；該合約的初始資金為 2100 萬美元，我們認為在其生命週期內價值約為 8500 萬美元。並被指定為國防後勤局（DLA）、無限期交付和無限數量、最高價值 32 億美元的多項授予合約的多個獲獎者之一。這些都是非常重大的勝利，是我們的業務優化舉措、改進的企業範圍協同和協作、改進的業務流程規則以及對戰略增長優先事項的關注的直接結果。這些勝利也驗證了我們在成為 One Comtech 方面取得的進展，One Comtech 是技術、創新和傾聽客戶意見以創建他們最重視的解決方案的行業領導者。

Through our GFSR award, with an expected value of $544 million. We have been selected to provide critical ongoing communications and IT infrastructure support for the Army, Air Force, Navy, Marine Corps and NATO, enabling U.S. and coalition forces to maintain robust, resilient and secure connectivity for global all-domain operations. Comtech's professional engineering services, our innovation and our extensive portfolio of blended software-defined, smart-enabled technologies were critical to our success in winning this business, which will help the DoD and coalition partners maintain information advantage in virtually any environment. While currently under protest by the former incumbent, we believe such protest will be resolved in our favor, and we expect the contract to meaningfully contribute to our second half of fiscal 2024 and beyond.

透過我們的 GFSR 獎項，預期價值為 5.44 億美元。我們被選中為陸軍、空軍、海軍、海軍陸戰隊和北約提供關鍵的持續通訊和 IT 基礎設施支持，使美國和聯軍能夠為全球全局行動保持強大、有彈性和安全的連接。 Comtech 的專業工程服務、我們的創新以及我們廣泛的混合軟體定義、智慧技術組合對於我們成功贏得這項業務至關重要，這將幫助國防部和聯盟合作夥伴在幾乎任何環境中保持資訊優勢。雖然目前受到前任負責人的抗議，但我們相信這種抗議將以對我們有利的方式得到解決，我們預計該合約將為我們 2024 財年下半年及以後的業績做出有意義的貢獻。

Separately, we were awarded a $48.6 million contract by the United States Army to deliver -- design and deliver new EDIM modems that support U.S. DoD satellite communications, digitization and modernization programs. Comtech will design, develop, test and deliver EDIM modems and provide hardware, software and sustainment services to support performance enhancements for EDIM solutions over time. Our EDIM modems are designed to support unique U.S. Army and Tri-Service requirements, meaning they can also be used for other branches of the Department of Defense, looking to leverage next-generation SATCOM capabilities.

另外，我們還獲得了美國陸軍價值 4860 萬美元的合同，負責設計和交付支援美國國防部衛星通訊、數位化和現代化項目的新型 EDIM 調製解調器。 Comtech 將設計、開發、測試和交付 EDIM 數據機，並提供硬體、軟體和維護服務，以支援 EDIM 解決方案隨著時間的推移效能增強。我們的 EDIM 數據機旨在支援獨特的美國陸軍和三軍需求，這意味著它們也可用於國防部的其他部門，以利用下一代衛星通訊功能。

Comtech's EDIM modems are expected to replace the Enhanced Bandwidth Efficient Modem or EBEM, currently supporting Army, Navy and Air Force SATCOM users, and it will replace it with an advanced digital and software-defined platform. There are currently tens of thousands of these legacy EBEM modems fielded today, and we expect to see replaced as part of this and related efforts. And we feel that the transition to digital SATCOM architectures offers a meaningful advantage that will encourage our customers to expand EDIM adoption well beyond the current EBEM footprint. We believe this EDIM award also means that Comtech's modems are at the heart of the Department of Defense's move to digitized hybrid satellite network architectures, and it puts us in an [advantaged] competitive position as DoD and coalition force communications capabilities are upgraded and modernized.

Comtech 的 EDIM 數據機預計將取代目前支援陸軍、海軍和空軍衛星通訊用戶的增強型頻寬高效調變解調器或 EBEM，並將替換為先進的數位和軟體定義平台。目前，已有數以萬計的傳統 EBEM 數據機投入使用，我們預計，作為此項工作及相關工作的一部分，它們將會被替換。我們認為，向數位衛星通訊架構的過渡提供了有意義的優勢，將鼓勵我們的客戶將 EDIM 的採用範圍擴大到遠遠超出目前 EBEM 的覆蓋範圍。我們相信，獲得 EDIM 獎項也意味著 Comtech 的調變解調器是國防部轉向數位化混合衛星網路架構的核心，隨著國防部和聯軍通訊能力的升級和現代化，它使我們處於[優勢]競爭地位。

In July, we announced that our market-leading next-generation troposcatter systems were selected by the U.S. Army to support tactical communications and modernization needs in a contract award worth $30 million. Here again, our commitment to innovation and technology leadership drove our success. We believe that our next-generation software-defined troposcatter family of systems represent up to 1,000-fold performance improvement over prior generations. And with the most troposcatter systems deployed in the world today, we are a clear market leader in a technology with a rapidly expanding set of defense and commercial global market applications. Let me take a minute to share just one example of the potential for expanded applications of our next-generation troposcatter systems.

7 月，我們宣布美國陸軍選擇我們市場領先的下一代對流層散射系統來支援戰術通訊和現代化需求，並簽訂了價值 3000 萬美元的合約。在這裡，我們對創新和技術領先地位的承諾再次推動了我們的成功。我們相信，我們的下一代軟體定義的對流層散射系統系列的性能比前幾代產品提高了 1,000 倍。憑藉當今世界上部署的對流層散射系統最多的技術，我們在快速擴展的國防和商業全球市場應用領域中成為了明顯的市場領導者。讓我花一點時間分享我們下一代對流層散射系統擴展應用潛力的一個例子。

Following broad-scale natural disasters such as hurricanes, communications infrastructure is often heavily impacted. As Hurricane Ian, a Category 4 storm made landfall in Southwestern Florida in September 2022, the Federal Communications Commission noted close to 18% of cell sites in Florida were out of service with some counties seeing over 82% of cell sites out of service. This means millions of Floridians lost access to their cell phones, landlines, home Internet, cable or a combination of those, both during and in the aftermath of the storm, not to mention access to 911 emergency life-saving services. Because of these outages, emergency responders could not communicate with their residents in life-threatening situations.

颶風等大規模天災發生後，通訊基礎設施往往受到嚴重影響。隨著 4 級風暴伊恩於 2022 年 9 月在佛羅裡達州西南部登陸，聯邦通信委員會指出，佛羅裡達州近 18% 的蜂窩基地台已停止服務，一些縣超過 82% 的蜂窩基地台已停止服務。這意味著數百萬佛羅裡達人在風暴期間和之後無法使用手機、固定電話、家庭網路、有線電視或這些設備的組合，更不用說使用 911 緊急救生服務了。由於這些中斷，緊急救援人員無法在生命受到威脅的情況下與居民進行通訊。

Now troposcatter is unique, and that it doesn't rely on the purchase of satellite capacity and inclement weather, which can interfere with satellite and microwave signals, doesn't have a negative impact on troposcatter signals at all. In fact, bad weather actually enables troposcatter to perform better. In natural disaster scenarios like Hurricane Ian, our next-generation troposcatter systems hold the potential to provide a new mechanism for States' emergency service providers and global communities to sustain resilient and reliable communications infrastructures when it matters most. This is just one application we're excited about, and we see other potential commercial opportunities for our troposcatter systems as we continue to integrate and expand our capabilities within the portfolio.

現在對流層散射的獨特之處在於，它不依賴購買衛星容量，惡劣天氣會幹擾衛星和微波訊號，根本不會對對流層散射訊號產生負面影響。事實上，惡劣的天氣實際上可以使對流層散射性能更好。在伊恩颶風等自然災害場景中，我們的下一代對流層散射系統有可能為各國緊急服務提供者和全球社區提供新機制，以便在最重要的時候維持彈性和可靠的通訊基礎設施。這只是我們感到興奮的一個應用程序，隨著我們繼續整合和擴展我們的產品組合中的功能，我們看到了我們的對流層散射系統的其他潛在商業機會。

Finally, the U.S. Army troposcatter win also validates our recently instituted capture and pricing process improvements and underpins the value of our cost reduction actions and improved program management discipline. In July 2023, we were very excited to finally have received our long-awaited initial funding of $21 million under our next-generation 911 contract with the State of Ohio. This contract originally awarded to us in March of 2020 has a total expected value of approximately $85 million and is anticipated to start contributing meaningfully to our net sales in fiscal 2025 and beyond.

最後，美國陸軍對流層散射的勝利也驗證了我們最近實施的捕獲和定價流程改進，並鞏固了我們降低成本行動和改進專案管理紀律的價值。 2023 年 7 月，我們非常興奮地終於收到了期待已久的 2100 萬美元初始資金，這是我們與俄亥俄州簽訂的下一代 911 合約的一部分。這份合約最初於 2020 年 3 月授予我們，預計總價值約為 8,500 萬美元，預計將在 2025 財年及以後開始對我們的淨銷售額做出有意義的貢獻。

And finally, in April 2023, Comtech was selected as one of multiple awardees under the Defense Logistics Agency Gateway to Sustainment, indefinite delivery, indefinite quantity multiple award contract with a ceiling value of $3.2 billion. This award enables the U.S. Department of Defense and other U.S. government customers purchase a wide range of our capabilities and services in support of the Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance and Reconnaissance or C5ISR operations.

最後，2023 年 4 月，Comtech 被選為國防後勤局維持門戶、無限期交付、無限數量多重授予合約的多個獲獎者之一，最高價值為 32 億美元。該合約使美國國防部和其他美國政府客戶能夠購買我們廣泛的功能和服務，以支援指揮、控制、電腦、通訊、網路、情報、監視和偵察或 C5ISR 行動。

Taken together, we believe these significant strategic contracts demonstrate Comtech's steadily improving performance across every facet of our business, and we intend to continue winning more strategic and enduring contracts that validate our ability to continue up-tiering our solutions and services to solve some of the toughest networking and communication challenges the world is facing today, as well as addressing the many challenges we anticipate in the future.

總而言之，我們相信這些重要的戰略合約證明了Comtech 在我們業務各個方面的業績穩步提高，我們打算繼續贏得更多戰略性和持久的合同，以驗證我們繼續升級我們的解決方案和服務以解決一些問題的能力。當今世界面臨的最嚴峻的網路和通訊挑戰，以及解決我們預計未來的許多挑戰。

The changes my leadership team has implemented at Comtech over the 2023 fiscal year are creating a significant competitive advantage for us. Today, we're competing on the value we are delivering to our customers in a currency they understand. These recent contracts, I believe, represent only the beginnings of new customer engagements, and it is clear we are establishing valuable long-term partnerships that we intend to continue to expand upon as we look to the future. For our shareholders, it means that Comtech's investments in optimizing operational performance, improving process discipline and applying technology innovation are delivering revenues that create value today. Before I turn to Mike to talk about our results in detail, let me make one last observation about this quarter's financial performance.

我的領導團隊在 2023 財年在 Comtech 實施的變革為我們創造了顯著的競爭優勢。今天，我們的競爭是以客戶理解的貨幣為客戶提供的價值。我認為，這些最近的合約僅代表新客戶合作的開始，很明顯，我們正在建立有價值的長期合作夥伴關係，我們打算在展望未來時繼續擴大這種合作夥伴關係。對我們的股東來說，這意味著 Comtech 在優化營運績效、改善流程紀律和應用技術創新方面的投資正在帶來可創造價值的收入。在我請麥克詳細討論我們的業績之前，讓我先對本季的財務表現進行最後的觀察。

When I first started as CEO a year or so ago, it was clear that maintaining the status quo was not an option. The onus was on Comtech and its leadership to regain the confidence of our investors, and the only way to do that was through accelerating the decisive and total transformation of the organization. For our investors, this transformation is already translating into improved financial performance. I want to be sure to highlight the following as a clear indication, we're on the right path. Over the course of the past 4 quarters, the work we've done at Comtech has resulted in our consolidated net sales increasing sequentially every quarter of the fiscal year. Our adjusted EBITDA margins have also increased sequentially every quarter of the fiscal year.

大約一年前，當我第一次擔任執行長時，很明顯維持現狀不是一個選擇。 Comtech 及其領導層有責任重新贏得投資者的信心，而做到這一點的唯一方法是加速組織的決定性和全面轉型。對於我們的投資者來說，這種轉變已經轉化為財務表現的改善。我想強調以下幾點作為明確的指示：我們走在正確的道路上。在過去的 4 個季度中，我們在 Comtech 所做的工作使我們的合併淨銷售額在本財年每季都持續成長。我們調整後的 EBITDA 利潤率也在本財年每季持續成長。

Structurally, Comtech has undergone a series of thoughtful strategic changes that are beginning to manifest in margin improvement and growth. These encompass all aspects of our business from identifying redundancies within the organization to supply chain management, and implementing key performance indicators to ensure we're meeting our customer commitments, all of which I've spoken about over the past 3 quarters, and we delved into much deeper during our Investor Day in June.

從結構上看，Comtech 經歷了一系列深思熟慮的策略變革，這些變革開始體現在利潤率的改善和成長上。這些涵蓋了我們業務的各個方面，從確定組織內的裁員到供應鏈管理，以及實施關鍵績效指標以確保我們履行客戶承諾，所有這些我在過去三個季度中都談到過，我們深入研究了在六月的投資者日期間進行更深入的探討。

During our Investor Day, both Maria Hedden, our COO; and Mike Bondi, our CFO, detailed multiple initiatives that we are implementing to drive operational efficiencies wherever we can. For those of you that may have missed the Investor Day, you can find the full presentation and video on the Investor page of our website. And we noted that not only did we identify opportunities ahead of us that would benefit our top line, we believe we can achieve annual double-digit sales growth over time, with significant opportunities to simultaneously drive enduring margin improvement. We are confident that while sales will grow, our margins will grow faster.

在我們的投資者日期間，我們的營運長 Maria Hedden；我們的財務長 Mike Bondi 詳細介紹了我們正在實施的多項舉措，以盡可能提高營運效率。對於那些可能錯過了投資者日的人，您可以在我們網站的投資者頁面上找到完整的簡報和影片。我們指出，我們不僅發現了我們面前有利於我們收入的機會，而且相信隨著時間的推移，我們可以實現年度兩位數的銷售成長，並有重大機會同時推動利潤率的持久提高。我們相信，在銷售額成長的同時，我們的利潤率也會成長得更快。

Now let me turn to Mike to talk about our results in detail. Mike?

現在讓我請麥克詳細談談我們的結果。麥克風？

Thanks, Ken. For Q4 fiscal 2023, we recorded $148.8 million of consolidated net sales, of which $94.2 million were reported in our Satellite and Space Communications segment, and $54.6 million were reported in our Terrestrial and Wireless Networks segment. Consolidated fourth quarter sales represented a 9.2% increase over last quarter and our seventh consecutive quarterly increase. Compared to the year ago quarter, our consolidated Q4 fiscal 2022, net sales increased $21.8 million or 17.2%, reflecting higher net sales in both of our segments.

謝謝，肯。 2023 財年第四季度，我們的綜合淨銷售額為 1.488 億美元，其中衛星和太空通訊部門報告了 9,420 萬美元，地面和無線網路部門報告了 5,460 萬美元。第四季綜合銷售額比上一季成長 9.2%，是我們連續第七個季度成長。與去年同期相比，我們的 2022 財年第四季合併淨銷售額增加了 2,180 萬美元，即 17.2%，反映出我們兩個部門的淨銷售額均有所增加。

Consolidated net sales for fiscal 2023 were $550 million, of which $337.8 million were related to our Satellite and Space Communications segment and $212.2 million were reported in our Terrestrial and Wireless Networks segment. Consolidated gross margins for Q4 and the fiscal year 2023 were 32.7% and 33.5%, respectively; and 35.9% and 37% in the comparable periods of the prior year. The 32.7% we achieved this past quarter reflects a sequential increase from the 31.7% reported in the third quarter of fiscal 2023. Such changes reflect an increase in net sales and overall product mix changes, primarily driven by higher net sales of our troposcatter and SATCOM solutions to U.S. government and international customers in our Satellite and Space Communications segment, including performance on our next-generation troposcatter terminals for the U.S. Marine Corps, and VSAT equipment for the U.S. Army.

2023 財年的合併淨銷售額為 5.5 億美元，其中 3.378 億美元與我們的衛星和太空通訊部門相關，2.122 億美元與我們的地面和無線網路部門相關。第四季和 2023 財年的綜合毛利率分別為 32.7% 和 33.5%；上年同期分別成長35.9%和37%。我們上一季實現的32.7% 與2023 財年第三季的31.7% 相比連續成長。此類變化反映了淨銷售額的成長和整體產品組合的變化，這主要是由我們的對流層散射和衛星通訊淨銷售額的增加所推動的我們在衛星和太空通訊領域為美國政府和國際客戶提供解決方案，包括為美國海軍陸戰隊提供的下一代對流層散射終端以及為美國陸軍提供的 VSAT 設備。

Operating income in Q4 of fiscal 2023 was $1.1 million compared to an operating loss of $2.1 million in Q4 of fiscal 2022. Such operating income reflects higher net sales reported during the quarter as well as the benefits from profit improvement and lean initiatives implemented during the second half of fiscal 2023. This marks our first quarter of GAAP operating income since Q4 of fiscal 2021. And the more impressive part is, that we achieved this all while still incurring incremental expenses associated with our One Comtech transformation and restructuring activities. We think it is important to take a quick second out to thank all of our customers, suppliers, and most importantly, employees who made this happen.

2023 財年第四季的營業收入為110 萬美元，而2022 財年第四季的營業虧損為210 萬美元。這一營業收入反映了本季報告的淨銷售額增加以及第二季度實施的利潤改善和精益計劃帶來的收益。2023 財年的一半。這標誌著我們自2021 財年第四季以來的第一季GAAP 營業收入。更令人印象深刻的是，我們實現了這一切，同時仍產生與One Comtech 轉型和重組活動相關的增量費用。我們認為，重要的是要快速感謝我們所有的客戶、供應商，最重要的是，感謝讓這一切發生的員工。

As explained in more detail and reconciled in our Form 10-K filed earlier today, we utilized a non-GAAP measure that we refer to as adjusted EBITDA. During Q4 fiscal 2023, adjusted EBITDA was $18.9 million, a 51.2% sequential increase from Q3 fiscal 2023. As a percentage of net sales, adjusted EBITDA was 12.7%, an improvement from the 9.2% we achieved in Q3 fiscal 2023. For the full year, adjusted EBITDA was 9.7%, an increase from the 8.1% we achieved last year. Adjusted EBITDA margin in the more recent period reflects higher net sales and the benefit of our One Comtech lean initiatives implemented in the second half of fiscal 2023, offset in part by a lower gross profit percentage due to shifts in the mix of solutions delivered in 2023.

正如今天早些時候提交的 10-K 表格中更詳細解釋和核對的那樣，我們採用了非 GAAP 衡量標準，我們將其稱為調整後 EBITDA。 2023 財年第四季，調整後EBITDA 為1,890 萬美元，比2023 財年第三季季增51.2%。佔淨銷售額的百分比，調整後EBITDA 為12.7%，比2023 財年第三季的9.2 % 有所改善。今年，調整後 EBITDA 為 9.7%，高於去年的 8.1%。近期調整後的EBITDA 利潤率反映了更高的淨銷售額以及我們在2023 財年下半年實施的One Comtech 精益計劃的好處，但由於2023 年交付的解決方案組合發生變化而導致毛利率下降，部分抵消了這一影響。

Overall, our consolidated Q4 net sales and adjusted EBITDA were ahead of our guidance provided last quarter, and we're pleased to have well exceeded our targets, particularly in light of a macro environment that remains challenging and all while undergoing one of the most comprehensive transformations in this company's history. Despite these business conditions and resulting challenges and although we anticipate some variability from time-to-time as we move through our One Comtech transformational change.

總體而言，我們的第四季度綜合淨銷售額和調整後的EBITDA 超出了我們上季度提供的指導，我們很高興遠遠超出了我們的目標，特別是考慮到仍然充滿挑戰的宏觀環境，同時正在經歷最全面的影響之一該公司歷史上的轉變。儘管存在這些業務狀況和由此帶來的挑戰，儘管我們預計在 One Comtech 轉型變革過程中會不時出現一些變化。

For our first quarter of fiscal 2024, we are targeting consolidated net sales to sequentially increase approximately 1% to 4% and for our consolidated adjusted EBITDA margin to range between 11% and 13%. Such targets reflect our assumptions regarding the timing of and performance on orders from the U.S. Army for VSAT equipment as well as the timing of and our performance on our recently awarded $544 million GFSR contract, which, as Ken mentioned earlier, has been protested by the prior service provider. And while we expect a near-term close, such targets also do not assume any divestiture at this time due to the uncertain closing date of the transaction.

對於 2024 財年第一季，我們的目標是綜合淨銷售額連續成長約 1% 至 4%，綜合調整後 EBITDA 利潤率在 11% 至 13% 之間。這些目標反映了我們對美國陸軍VSAT 設備訂單的時間表和履行情況的假設，以及我們最近授予的5.44 億美元GFSR 合約的時間表和履行情況，正如Ken 之前提到的，該合約遭到了美國陸軍的抗議。之前的服務提供者。雖然我們預計近期會完成交易，但由於交易完成日期不確定，目前此類目標也不會進行任何剝離。

Now let me return the call back over to Ken. Ken?

現在讓我把電話回給肯。肯？

Thanks, Mike. Before we take your questions, I want to say that I'm excited about the momentum we are building as we progress on our One Comtech journey. Going forward, I'm excited that we're already realizing significant strategic wins and material results that stem directly from our actions. Our implementation of standard tools, procedures and process discipline across the enterprise have been a key driving factor in the improvements we are seeing in our balance sheet and our performance. We have examined everything from supply chains to contract terms, and the outcomes are evident in the results you're seeing today.

謝謝，麥克。在回答您的問題之前，我想說，我對我們在 One Comtech 之旅中不斷取得的進展感到興奮。展望未來，我很高興我們已經實現了直接源自於我們行動的重大戰略勝利和物質成果。我們在整個企業內實施標準工具、程序和流程紀律是我們資產負債表和績效改善的關鍵驅動因素。我們檢查了從供應鏈到合約條款的所有內容，結果在您今天看到的結果中顯而易見。

The impact of our cost reduction actions cannot be overemphasized and as difficult as those actions were, they have resulted in a leaner, more agile organization where we are able to identify opportunities and prosecute them in a much faster and more efficient manner than ever before. Our ability to draw from all parts of the business to gather, talent and expertise is one of the many advantages of our One Comtech transformation, advantages that will further increase shareholder value as we hone these abilities over the coming months and years.

我們的成本削減行動的影響怎麼強調都不為過，儘管這些行動非常困難，但它們使我們的組織變得更加精簡、更加敏捷，我們能夠比以往更快、更有效率地發現機會並抓住機會。我們能夠從業務的各個部門收集人才和專業知識，這是我們 One Comtech 轉型的眾多優勢之一，隨著我們在未來幾個月和數年磨練這些能力，這些優勢將進一步增加股東價值。

Customers as well are also already benefiting from these actions as we are increasingly able to turn our attention to more thoughtful and comprehensive customer engagement and collaboration strategies to win new business as valued partners with innovative, more comprehensive solutions. Our new business capture processes will continue to improve and enable us to enter new markets by combining technologies from within our existing portfolio as well as engaging with EVOKE partners to create truly cutting-edge innovative capabilities where the end solution is a far greater customer value than any of the individual parts.

客戶也已經從這些行動中受益，因為我們越來越能夠將注意力轉向更周到、更全面的客戶參與和協作策略，以透過創新、更全面的解決方案作為有價值的合作夥伴贏得新業務。我們的新業務捕獲流程將繼續改進，並使我們能夠透過結合現有產品組合中的技術以及與EVOKE 合作夥伴合作來進入新市場，以創建真正尖端的創新能力，其中最終解決方案的客戶價值遠遠大於任何單獨的部分。

Today, Comtech is preparing itself for a world where there is not only value in building platforms and services to handle the geometrically increasing amounts of information that the modern world creates, but also able to capture, analyze and act on the information they carry in the near real time. Creating new insights, intelligence and smart networks that will change the way we think about connectivity, deliver substantially more customer value and empower a truly connected world. Everything we have done and are doing to create a one Comtech business machinery and culture is being done to put our company on a durable growth trajectory that I believe will sustain for years to come. We are all looking forward to 2024.

今天，Comtech 正在為這樣一個世界做準備：建立平台和服務來處理現代世界所創造的幾何級數增長的資訊不僅有價值，而且能夠捕獲、分析它們所攜帶的資訊並採取行動。接近即時。創造新的見解、情報和智慧網絡，這將改變我們對連結的思考方式，提供更多的客戶價值，並賦能真正互聯的世界。我們為創建統一的 Comtech 商業機制和文化所做的一切和正在做的一切都是為了讓我們的公司走上持久的成長軌道，我相信這種成長軌道將在未來幾年持續下去。我們都期待著2024年。

With that, let me take any questions you may have.

那麼，讓我回答您可能有的任何問題。

(Operator Instructions) We'll move first to Joe Gomes with Noble Capital.

（操作員說明）我們首先請來 Noble Capital 的喬·戈麥斯 (Joe Gomes)。

Good afternoon. Congrats on the quarter. So just maybe you could give us, first off, a little bit more detail to what was behind the fourth quarter outperformance. As you mentioned, you guys had projected 2% to 4% sequential revenue growth, it came in over 9%, you projected adjusted EBITDA margin of 9.5% to 10.5%, and it came at 12.7%, phenomenal results. And I just wonder, if you could give us a little more color as to what drove that?

午安.恭喜本季。因此，也許您可以先向我們提供更多有關第四季度表現出色背後的細節。如你所提到的，你們預期營收將較上季成長 2% 至 4%，結果超過 9%，調整後 EBITDA 利潤率為 9.5% 至 10.5%，結果達到 12.7%，這是驚人的結果。我只是想知道，你能否給我們更多的資訊來解釋是什麼推動了這一點？

Sure, Joe. I'll take that first piece. Certainly, coming into the quarter, we had our eyes set on executing on our lean initiatives. So certainly, when we're talking about adjusted EBITDA margins, clearly, I think you're seeing the benefits of those actions taken now in the second half of the year. That's definitely driving the bottom line. And in terms of also just the fielding schedules of our customers and the backlog we've been building throughout the year, giving us a nice foundation, we were able to draw upon that in the quarter. So, a lot of things clicked this quarter.

當然，喬。我會拿走第一塊。當然，進入本季度，我們著眼於執行精益計劃。因此，當然，當我們談論調整後的 EBITDA 利潤率時，顯然，我認為您會看到今年下半年採取的這些行動的好處。這絕對是推動獲利的因素。就我們客戶的部署時間表和我們全年積壓的訂單而言，這為我們奠定了良好的基礎，我們能夠在本季度利用這一點。因此，本季發生了很多事情。

Okay. Great. And on the $544 million contract, again, congrats on winning that, eventough it is currently under protest. You mentioned you thought it would start to contribute in the second half of fiscal 2024. Can you give us any kind of insight as to what -- when you say meaningful, what that could possibly mean to the top line? And on the margins on that contract in line with higher or lower than kind of the corporate average margins?

好的。偉大的。對於價值 5.44 億美元的合同，再次祝賀您贏得了這份合同，儘管目前該合約正受到抗議。您提到您認為它將在 2024 財年下半年開始做出貢獻。當您說有意義時，您能否給我們一些見解，說明這對營收可能意味著什麼？該合約的利潤率是否高於或低於公司平均利潤率？

Joe, on the revenue profile for the contract, as we were saying in our prepared remarks, certainly, we have to be mindful of the timing of getting started on that. So when that thing gets fully up and ramped up with all the positions. It's going to be a pretty sizable increase on an annual basis. Going back in time, we had a similar contract, and I would say we kind of use it as a proxy.

喬，關於合約的收入狀況，正如我們在準備好的發言中所說，當然，我們必須注意開始的時間。因此，當這個事情完全啟動並隨著所有位置的增加而增加時。每年將會有相當大的成長。回顧過去，我們有一份類似的合同，我想說我們有點用它作為代理。

Joe, this is Ken. I would also say that while there's a protest in play, that's a pretty routine practice for this particular customer, in this particular market segment, so we're not overly concerned about that. And this task order was awarded on an existing contract vehicle we have with the U.S. Army, which leverages a 10-year $5.1 billion Global Tactical Communications Systems II or GTACS II IDIQ contract. The reason I mention that is because it's one of the reasons we're excited about the G2S IDIQ contract that we have with a ceiling of $3.2 billion because these are the kind of contract vehicles that enable this kind of business to flow to us, especially in a dynamic geopolitical environment with sudden and dynamic demand potential.

喬，這是肯。我還想說，雖然有抗議，但對於這個特定的客戶來說，在這個特定的細分市場中，這是一種非常常規的做法，所以我們並不過分擔心這一點。該任務訂單是根據我們與美國陸軍現有的合約車輛授予的，該合約車輛利用了為期 10 年、價值 51 億美元的全球戰術通訊系統 II 或 GTACS II IDIQ 合約。我之所以提到這一點，是因為這是我們對上限為 32 億美元的 G2S IDIQ 合約感到興奮的原因之一，因為這些合約工具使此類業務能夠流向我們，尤其是在動態的地緣政治環境中，具有突然且動態的需求潛力。

And one last one for me, I'll get back in queue. On the sale of the Power Systems unit, can you give us any kind of color on what that could mean in terms of the revenue and adjusted EBITDA that was related to that business? And is there -- is that kind of it, in terms of potential sales? Or do you continue to look at some other aspects of the Comtech business that might not fit in with the new One Comtech?

最後一件事是我的，我會重新排隊。關於出售電力系統部門，您能否給我們一些解釋，說明這對與該業務相關的收入和調整後 EBITDA 意味著什麼？就潛在銷售而言，是這樣的嗎？或者您會繼續關注 Comtech 業務的一些其他方面，這些方面可能不適合新的 One Comtech？

Joe, I'll take the first part of that question. And then I think on the strategy going forward, I'll hand it over to Ken. I think in terms of the sizing of this transaction, we won't comment on how much revenue and EBITDA, but you could get a sense for it based on the size of the purchase price, relatively speaking. And in terms of the impact to fiscal '24, obviously, we were subject to customary closing conditions. We're expecting the close to be in the short-term. But again, given the timing being a little unknown, it's hard to really decipher what the adjustment would be to the forecast. But I would say at this point, that's probably all we're going to say on the transaction today.

喬，我將回答這個問題的第一部分。然後我會考慮下一步的策略，我會把它交給肯。我認為就這筆交易的規模而言，我們不會評論多​​少收入和 EBITDA，但相對而言，你可以根據購買價格的大小來了解它。就對 24 財年的影響而言，顯然我們受到了慣例成交條件的約束。我們預計收盤價將在短期內完成。但同樣，鑑於時間有點未知，很難真正解讀預測的調整內容。但我想說的是，這可能是我們今天要說的關於交易的全部。

Joe, commenting on the strategic portfolio management activity. This particular business, which is really a solid business. It didn't have a lot of synergy with other parts of our business. It didn't have a lot of synergy with our technology road maps and that kind of thing. So that kind of a portfolio management decision, while it's difficult to make, I think it's the right decision for all concerned.

喬評論策略性投資組合管理活動。這項特殊的業務，確實是一項紮實的業務。它與我們業務的其他部分沒有太多協同作用。它與我們的技術路線圖之類的東西沒有太多的協同作用。因此，這種投資組合管理決策雖然很難做出，但我認為這對所有相關人員來說都是正確的決定。

Now our portfolio management is something that we're beginning to do on a continuum. It's a part of any business, management and executive leadership team operations were involved in dynamic market convergences, technology inflections; and I think that while we don't have anything to say on that, okay, and I'm not forecasting anything. I think portfolio management is something that we have a responsibility to do on a continuing basis. That's all I mean to say.

現在，我們開始連續進行投資組合管理。它是任何業務、管理和執行領導團隊營運的一部分，涉及動態的市場整合、技術變化；我認為雖然我們對此沒有什麼可說的，但我不會做出任何預測。我認為投資組合管理是我們有責任持續進行的事情。這就是我想說的話。

Really appreciate it. And again, congrats on the quarter.

真的很感激。再次恭喜本季。

And we'll move next to Greg Burns with Sidoti.

我們將與西多蒂一起轉到格雷格·伯恩斯旁邊。

Just to follow up on the GFSR contract and what you're contemplating in your guidance. Are you -- is that -- is none of that in the guidance for 1Q? And if for whatever reason it closes or starts earlier than you expect there might be some upside, is that how we should be...?

只是為了跟進 GFSR 合約以及您在指南中考慮的內容。第一季的指導中沒有這些內容嗎？如果出於某種原因它比您預期的更早關閉或開始，可能會有一些好處，那麼我們應該是這樣的......？

Yes. I would -- Greg, on Q1, I would say you could think of it as very nominal or anything at this point, just given the timing of the award and what's happening.

是的。我會 - 格雷格，在第一季度，我想說你可以認為它是非常名義上的或任何東西，只要考慮到頒獎的時間和正在發生的事情。

Okay. And then you didn't mention any update on what's going on with your LEO customer? Are they progressing? Are you getting closer to seeing production orders for them? Like what's the outlook for that in fiscal '24?

好的。然後您沒有提及有關您的 LEO 客戶的最新情況？他們有進步嗎？您是否越來越接近看到它們的生產訂單？ 24 財年的前景如何？

Yes. In terms of the timing for that, Greg, certainly, we're tracking our progress alongside where the customer wants us to be and where they are on their schedule. I would say at this point in time, no major changes to our outlook for production orders. I think if we get an order, it would be for the next couple of months of deliveries. So I wouldn't expect multiple orders, it might be one large order to work from. In terms of the specific timing though, I can't comment on today.

是的。就時間安排而言，格雷格，當然，我們正在追蹤我們的進度以及客戶希望我們達到的目標以及他們的日程安排。我想說，目前我們的生產訂單前景沒有重大變化。我想如果我們收到訂單，那將是接下來幾個月的交貨期。所以我不會期望有多個訂單，這可能是一個大訂單。但就具體時間而言，我今天無法發表評論。

The only thing. This is Ken, the only thing we can say, I think, is that it is progressing on the time line that we expected.

唯一的事情。這是肯，我認為我們唯一能說的是，事情正在按照我們預期的時間線進展。

Okay. And then, in terms of the EDIM modem opportunity, are you -- is that a sole source contract? Or are there multiple vendors that are supplying these modems? And when you think about the conversion of the upgrade opportunity there, is there an upgrade cycle that goes on there? Or an end of life kind of to these EBEM modems? Like how should we think about that broader opportunity beyond the first $48 million order that you got?

好的。然後，就 EDIM 調變解調器機會而言，這是唯一來源合約嗎？或者是否有多個供應商提供這些調變解調器？當您考慮升級機會的轉換時，是否存在升級週期？或者這些 EBEM 數據機的生命週期即將結束？例如，除了您收到的第一個 4800 萬美元訂單之外，我們應該如何考慮更廣泛的機會？

Well, the EDIM contract, which is the acronym EDIM, okay, is a kind of a successor contract to the EBEM, E-B-E-M contract that was led in 2003. The 2003 contract had a development -- design development phase along the lines of this current EDIM one, and then it resulted in significant fielded quantities, I believe, tens of thousands, perhaps more than 40,000 of the legacy modems were fielded, okay, over the period of 2003 to say today. Okay, this is a single award program to Comtech.

嗯，EDIM 合同，縮寫為 EDIM，是 2003 年推出的 EBEM、E-B-E-M 合同的後繼合同。2003 年的合同有一個開發——設計開發階段，與當前的合同類似。EDIM 之一，然後它導致大量部署部署，我相信，從2003 年到今天，已經部署了數萬個，也許超過40,000 個傳統數據機。好的，這是 Comtech 的單一獎勵計劃。

We do have a major subcontractor in iDirect that provides an interference excision capability that has real value in this environment because this is a modem that could be looked at as 8 modems in 1, and has a significant size weight power advantage over the modems that it's replacing. And it implements next-generation waveforms to enable really to help realize -- DoD to realize its vision of multi-network connectivity over multiple diverse networks simultaneously. So, this modem could easily be viewed. We're really excited about this contract, and I think it holds a potential for tens of thousands of production deliveries as a follow-on. But yes, it's a single award contract.

我們在iDirect 中確實有一個主要分包商，它提供了乾擾消除功能，該功能在此環境中具有真正的價值，因為這是一種可以視為1 合8 個調製解調器的調製解調器，並且比它所使用的調變解調器具有顯著的尺寸重量功率優勢。更換。它實現了下一代波形，以真正幫助國防部實現同時在多個不同網路上實現多網路連接的願景。所以，這個調變解調器很容易被檢視。我們對這份合約感到非常興奮，我認為作為後續合同，它有可能交付數萬件產品。但是，是的，這是一份單一的獎勵合約。

Okay, great. And then lastly, can you talk about cash flow this quarter? Looks like you built up a little bit of working capital. So, how should we think about cash conversion as we go into fiscal '24?

好的，太好了。最後，您能談談本季的現金流嗎？看來您累積了一些營運資金。那麼，當我們進入 24 財年時，我們應該如何考慮現金轉換？

Joe -- sorry, Greg, on cash flows from ops, I would say, we're taking positive cash flows for the quarter. Certainly, we're always subject to the timing of collections of large receivables. So, I would say, in terms of quantifying a specific number, it's definitely going to be a stronger cash flow than you saw in Q4. And in terms of for the full year, again, not quoting a specific number for the full year and giving full year guidance, but I would say we're going to start returning to more pre-COVID levels of cash generation. And just being mindful, too, in terms of the CapEx and free cash flow, our CapEx targets for this year are around $15 million and probably more skewed towards the first half of the year, but pretty even throughout the year.

喬 - 抱歉，格雷格，關於營運現金流，我想說，我們本季的現金流為正。當然，我們總是受到大額應收帳款催收時間的限制。因此，我想說，就量化具體數字而言，現金流肯定會比第四季更強勁。就全年而言，再次強調，沒有引用全年的具體數字並給出全年指導，但我想說，我們將開始恢復到新冠疫情前的現金生成水平。還要注意的是，就資本支出和自由現金流而言，我們今年的資本支出目標約為 1500 萬美元，可能更傾向於上半年，但全年基本持平。

And we'll move next to Mike Crawford with B. Riley Securities.

接下來我們將請 B. Riley 證券公司的 Mike Crawford 來演講。

Ken. Ken, you're talking about your One Comtech initiative, and I'm wondering if you can give us a progress update on one component that I think is not complete yet, and that's this assessment you're doing regarding centralized supply chain operations and management?

肯. Ken，您正在談論您的 One Comtech 計劃，我想知道您是否能為我們提供一個我認為尚未完成的組件的最新進展，這就是您正在對集中供應鏈運營進行的評估，以及管理？

Mike, by the way, it's good to have you on the call. Let me say first that I think our One Comtech organization had 2 initiatives -- 2 is for is, okay. The first one is to bring the organization together, eliminate redundancy, streamline operations, streamline decision making, and a part of that was, enabled a significant cost reduction. Second part of that enabled us, you can think of the centralized supply chain management operations, engineering, technology, development, so that we looked across our enterprise and we did things once, we did it collaboratively, and we did it collectively in a way that supported our enterprise collaborative strategy, okay?

麥克，順便說一下，很高興你能來電。首先我要說的是，我認為我們的 One Comtech 組織有 2 項舉措——2 是為了是，好吧。第一個是將組織整合在一起，消除冗餘，簡化運營，簡化決策，其中一部分是顯著降低成本。第二部分使我們能夠想到集中的供應鏈管理營運、工程、技術、開發，以便我們縱觀整個企業，我們只做一次事情，我們協作完成，並且我們以某種方式集體完成這支持了我們的企業協作策略，好嗎？

Supply chain was certainly part of that. We speak now with one voice. We've gone through all of our contracts with respect to identifying opportunities to implement more constructive contract management. We've looked across our supply chain, and we're implementing supply chain actions to try to speak with one voice, speak with an amplified voice and garner the value from that, okay?

供應鏈當然是其中的一部分。我們現在用同一個聲音說話。我們已經審查了所有合同，以確定實施更具建設性的合約管理的機會。我們已經審視了我們的供應鏈，我們正在實施供應鏈行動，試圖用一個聲音說話，用放大的聲音說話，並從中獲取價值，好嗎？

Now the other thing is, I think also it gives us an opportunity to look at facilities and perhaps look at consolidating facilities. So clearly, this kind of an action of bringing the organization together. We've picked some low-hanging fruit, but it is a long process that's going to last really probably well more than another year. We plan -- we always plan for our discovery phase to last about 10 or 11 months. We actually got through it perhaps a little ahead of that. And then we plan for our implementation phase to implement the actions that came out of that discovery process. We had always planned for that to take 20 to 28 months, and we are operating inside that time line. So we're on track. There is much yet to do.

現在另一件事是，我認為這也給了我們一個機會來研究設施，或許可以考慮整合設施。很明顯，這是一種將組織凝聚在一起的行動。我們已經取得了一些容易實現的目標，但這是一個漫長的過程，很可能會持續比一年還要長的時間。我們計劃—我們總是計劃我們的發現階段持續約 10 或 11 個月。事實上，我們可能提前一點就完成了它。然後我們計劃我們的實施階段來實施發現過程中產生的行動。我們一直計劃需要 20 到 28 個月的時間，並且我們正在該時間範圍內開展工作。所以我們步入正軌。還有很多事情要做。

And then sort of related, I was hoping you could share some key components, like I don't know, maybe a dynamic cloud platform of your strategy to become more of a system solutions provider.

然後，與此相關的是，我希望您能分享一些關鍵組件，就像我不知道的那樣，也許是您的策略的動態雲端平台，以成為更多的系統解決方案提供者。

So that's really the other side of the coin of the discussion that we just had about consolidating or centralizing the 14 silo businesses into 2 segments and applying some central oversight and leadership in terms of enterprise-wide actions.

因此，這實際上是我們剛剛討論的關於將 14 個孤島業務合併或集中為 2 個部分，並在企業範圍內的行動方面應用一些中央監督和領導的討論的另一面。

The second -- the other side of that coin is consolidating our businesses like this enables us to collaborate more effectively and it enables us to offer customers subsystems, systems and services solutions that the individual silos could not do alone, okay? And I think that, first of all, that's -- one thing is that, that's what our customers are asking from us. They're asking for more comprehensive systems and service solutions by bringing the technologies, products and capabilities and even the people expertise from across our enterprise together to be able to bring them our comprehensive solutions.

第二個——硬幣的另一面是整合我們的業務，這樣我們就能更有效地協作，讓我們能夠為客戶提供各個孤島無法單獨完成的子系統、系統和服務解決方案，好嗎？我認為，首先，有一件事是，這就是我們的客戶對我們的要求。他們要求更全面的系統和服務解決方案，將我們整個企業的技術、產品和能力，甚至人員的專業知識結合在一起，以便能夠為他們提供全面的解決方案。

Now the customers are asking us for that. And in this construct, we're able to deliver that. So I think that, that is -- and by the way, typically, in the systems and services market segments, the financial return is much greater. Profitability is much greater. So we're working steadily to move and up-tier our systems and services capabilities in that regard. We're making really good progress along those lines. And I think this GFSR contract and some of the other ones are an example of that.

現在客戶向我們提出這樣的要求。在這個結構中，我們能夠實現這一點。所以我認為，順便說一下，通常在系統和服務細分市場中，財務回報要高得多。獲利能力要大得多。因此，我們正在穩步努力移動和提升我們在這方面的系統和服務能力。我們在這些方面取得了非常好的進展。我認為這份 GFSR 合約和其他一些合約就是一個例子。

Okay. Great. And then one final question for me is it's nice to see your Terrestrial and Wireless segment margin back over 20%, where it used to be fairly consistently. And I'm wondering if it's mostly just job cuts there or what else does at play? And if you think that's sustainable?

好的。偉大的。對我來說，最後一個問題是，很高興看到你們的地面和無線業務利潤率回升到 20% 以上，而以前的水平相當穩定。我想知道這主要是因為裁員還是有其他原因？如果您認為這是可持續的？

Yes. I think, again, it's going to come down to one Comtech lean initiatives taken. I think you're starting to see the benefit of those actions and certainly getting more work in-house like with Ohio and just kind of building that base of business up and ramping up PSAPs on the systems will certainly give us a better economies of scale, leveraging the infrastructure for supporting that business. So, I think you're seeing both of those kind of happening in this Q4 period.

是的。我再次認為，這將歸結為 Comtech 所採取的一項精實舉措。我認為您已經開始看到這些行動的好處，並且肯定會像俄亥俄州那樣在內部開展更多工作，並且只是建立業務基礎並在系統上增加 PSAP 肯定會給我們帶來更好的規模經濟，利用基礎設施來支援該業務。所以，我認為您會在第四季度看到這兩種情況的發生。

And we'll move next to Lance Vitanza with TD Cowen. And it looks like Lance may have withdrawn himself.

接下來我們將與 TD Cowen 一起討論 Lance Vitanza。看來蘭斯可能已經退出了。

(Operator Instructions) And it does appear -- oh, we do have a follow-up from Greg Burns with Sidoti.

（操作員說明）它確實出現了——哦，我們確實有格雷格·伯恩斯（Greg Burns）和西多蒂（Sidoti）的後續報道。

I just wanted to follow up on the margin question just on the -- at the consolidated level. You got back to that, we're close to 13% this quarter, I guess, guiding to 12% at the midpoint. So kind of back to where we were and I think where you were targeting in the near term. So, how should we think about the business from here? Is this a good level? Or is there a next phase of the One Comtech initiative that maybe where you could see margins going higher from here?

我只是想在合併層面上跟進保證金問題。回到那個問題，我想本季我們的成長率接近 13%，中間值指引為 12%。回到我們原來的位置，我認為你們近期的目標是什麼。那麼，我們該如何思考這裡的業務呢？這是一個很好的水平嗎？或者 One Comtech 計劃的下一階段您可能會看到利潤率會更高嗎？

Greg, on that -- good question. Certainly, as we're looking at the full year and looking at the lean initiatives, we do expect certainly the RIF actions taken last year, that's going to be sort of foundational in each of the quarters. But as we go throughout the quarters, as Ken just alluded to, we have supply chain initiatives, facility initiatives, common tools and platform initiatives, and we're starting to see those getting engaged and driving some of the results in our outlook. So, I would say each quarter you'll see probably progressively better bottom-line margins as the year progresses.

格雷格，關於這個問題——好問題。當然，當我們展望全年並專注於精實舉措時，我們確實預計去年採取的 RIF 行動將成為每個季度的基礎。但正如肯剛剛提到的，隨著我們整個季度的發展，我們有供應鏈計劃、設施計劃、通用工具和平台計劃，我們開始看到這些計劃的參與並在我們的前景中推動了一些結果。因此，我想說，隨著時間的推移，每個季度您都會看到利潤率可能逐漸提高。

I think, we're setting our sights higher than where we are today. We're not satisfied with the 12.7% in Q4. Certainly, we want to continue to do better. We had always said as a target, we wanted to get back to at least the 14% we were doing before COVID and then exceed that. So, I think with the trajectory that we're on, I think, we have line of sight for that.

我認為，我們的目標比今天更高。我們對第四季的 12.7% 並不滿意。當然，我們希望繼續做得更好。我們一直說，作為一個目標，我們希望至少恢復到新冠疫情之前的 14%，然後超過這個數字。所以，我認為按照我們目前的軌跡，我們有能力實現這一點。

In the first quarter, in terms of our guidance, and I think, Joe asked the question earlier about sort of the margin profile of some of these new contract wins. I think just given the fielding schedules of the Army and what we're seeing -- being expected of us for deliveries in Q1, I would say, probably our margins are probably going to be slightly down from Q4, what we just reported, but then progressively throughout the year with the mix that we're seeing it would get back to the more historical levels say in the mid-30% range. So, overall, I think it's the lean initiatives and they are going to help drive it up from here. I don't think this is where we want to stay. I think, we still have more to do.

在第一季度，就我們的指導而言，我認為喬早些時候提出了有關這些新合約中的一些利潤狀況的問題。我認為，考慮到陸軍的部署時間表以及我們所看到的情況——預計我們將在第一季度交付，我想說，我們的利潤率可能會比我們剛剛報告的第四季度略有下降，但然後，隨著我們看到的混合情況，全年將逐步回到歷史水平，即 30% 左右的範圍內。所以，總的來說，我認為這是精益舉措，它們將幫助推動它從這裡開始。我不認為這是我們想待的地方。我想，我們還有更多的事情要做。

I'll also offer market perspective on that. I think that you're all aware, we're in a very dynamic geopolitical situation globally. And sometimes that imparts sudden changes in mix because the customers in those situations can place sudden orders and they may need something differently than what they planned on needing maybe 6 months or so ago. So that kind of dynamic and volatility is favorable in a macro sense to our top line, but it can introduce variability in mix that was anticipated.

我也會就此提供市場觀點。我想你們都知道，全球地緣政治局勢非常活躍。有時，這會帶來組合的突然變化，因為在這種情況下，客戶可能會突然下訂單，他們需要的東西可能與他們大約 6 個月前計劃需要的東西不同。因此，從宏觀意義上講，這種動態和波動對我們的營收是有利的，但它可能會帶來預期的組合變化。

And we do have Lance Vitanza with TD Cowen back in queue.

我們確實有 Lance Vitanza 和 TD Cowen 回到隊列中。

I apologize for the technical difficulty a second ago. But congrats on the quarter and I did just have a couple of questions. I wanted to actually go back. I think Joe had asked about the outperformance in the quarter, and you had talked about the lean initiatives. But with respect to the revenues, in particular, the outperformance there, would you say that, that was most notable in either of your 2 segments? Or was that sort of better-than-expected revenue growth? Was that more broad-based?

我對剛才的技術困難表示歉意。但恭喜這個季度，我確實有幾個問題。我真的很想回去。我認為喬曾詢問過本季度的優異表現，而您也談到了精益計劃。但就收入而言，特別是那裡的出色表現，您是否認為這在您的兩個細分市場中最引人注目？還是營收成長好於預期？這是否具有更廣泛的基礎？

I think it's going to be in our Satellite and Space Communications segment for sure. They had a pretty strong quarter when it came to deliveries of troposcatter and SATCOM solutions. We're delivering items off to the U.S. Marine Corps, VSAT equipment for the Army, solid state microwave, high-power amplifiers were also pretty strong this quarter. And so, that definitely was giving us a good contribution in Q4.

我認為它肯定會出現在我們的衛星和太空通訊領域。在對流層散射和衛星通訊解決方案的交付方面，他們的季度表現相當強勁。我們正在向美國海軍陸戰隊交付物品，陸軍的 VSAT 設備、固態微波、高功率放大器本季也相當強勁。因此，這無疑給我們在第四季做出了很好的貢獻。

Great. Okay. So on the Army contract, I think you mentioned during the Q&A that there was a prior contract that could offer some clues as to how this one might look when it ramps. My question is, does the GDSR (sic) [GFSR] contract, does that have a specific targeted lifetime in terms of years? And if so, could you discuss that? If it doesn't have a specific lifetime, maybe you could just remind us how long that prior contract you were thinking about, how long that wound up rent running?

偉大的。好的。因此，關於陸軍合同，我想您在問答中提到，之前有一份合同可以提供一些線索，說明該合同在升級時會是什麼樣子。我的問題是，GDSR（原文如此）[GFSR] 合約是否有具體的目標壽命（以年為單位）？如果是這樣，您能討論一下嗎？如果它沒有特定的生命週期，也許您可以提醒我們您考慮的先前合約有多長，租金運行需要多長時間？

When I was talking about the prior contract, I was talking about EDIM and EBEM the 2 modem contracts, and that's on the production tail, I don't think that's what I'm talking about here. You mentioned GFSR, right?

當我談論先前的合約時，我談論的是 EDIM 和 EBEM 這 2 個調製解調器合同，這是關於生產尾部的，我認為這不是我在這裡談論的內容。您提到了 GFSR，對吧？

Yes.

是的。

Yes, I think the way to -- yes, the GFSR contract, I think the way to think about it is it's close to a 5-year type contract. Once you get up running at full scale, it could be several hundred positions that the Army is looking to field globally. And so, those fielding plans will be set once we get going. In the first quarter or 2, it's going to be still ramping up mode. But certainly, it's going to be a meaningful annual contribution. If you just take -- just carving up the $544 million over like 5 years.

是的，我認為——是的，GFSR 合同，我認為考慮它的方式是它接近 5 年期合約。一旦全面啟動，陸軍可能會在全球部署數百個職位。因此，一旦我們開始行動，這些部署計劃就會被制定。在第一季或第二季度，它仍將處於加速模式。但可以肯定的是，這將是一項有意義的年度貢獻。如果你只是拿——只需在五年內瓜分這 5.44 億美元。

Yes.

是的。

Perfect. Now, that's exactly what I was looking for. And then on the Ohio 911 contract $85 million total, $21 million, I think you received, I guess, as a prepayment in July. And I assume that then that you probably booked that as deferred revenue or it's a prepaid amount, so that's going to create some noncash EBITDA in fiscal '25 when you actually start recognizing that. Is that right? And maybe just talk a little bit about going forward, what the differential between the timing of the future cash inflows versus future revenue recognition if there is going to be continued differences there?

完美的。現在，這正是我一直在尋找的。然後，在俄亥俄州 911 合約中，總計 8500 萬美元，我認為您在 7 月收到了預付款，其中 2100 萬美元。我假設您可能將其記為遞延收入或預付金額，因此當您真正開始認識到這一點時，這將在 25 財年創造一些非現金 EBITDA。是對的嗎？也許只是談談未來，如果存在持續的差異，未來現金流入的時間與未來收入確認之間的差異是什麼？

Sure. Lance, on this particular contract, the $21 million was the initial funding that was signed into the budget at the end of July. So in terms of cash flow, I don't believe there was anything meaningful on that initial funding. What we're going to do now is start the design work and getting ready to architect the platform for the state. And so, that's why it's not going to generate meaningful revenues right away. It's something that we'll design, we'll get sign-off from the customer and then we'll start building the platform. And once we get the platform ready to go live, that's when the revenue will kick in, and that's when we'll start amortizing the asset that we're creating for this particular project.

當然。蘭斯，在這份特殊合約中，2,100 萬美元是 7 月底簽署到預算中的初始資金。因此，就現金流而言，我認為初始資金沒有任何意義。我們現在要做的是開始設計工作並準備為國家建立平台。因此，這就是為什麼它不會立即產生有意義的收入。這是我們將設計的東西，我們將得到客戶的認可，然後我們將開始建立平台。一旦我們準備好平台上線，收入就會開始增加，我們就會開始攤銷我們為這個特定項目創建的資產。

The contract is in an initial period of 2 years and then it has options through 2031.

該合約的初始期限為 2 年，之後有直至 2031 年的選擇權。

Got it. And then just last one for me. Could you talk a little bit about how EVOKE has sort of played out in terms of development since the Investor Day? I know obviously, the broader story there, which I think is pretty exciting. I'm just wondering if there's been any update that you can speak to?

知道了。然後是我的最後一個。您能否談談自投資者日以來 EVOKE 在開發方面的進展？我顯然知道那裡有更廣泛的故事，我認為這非常令人興奮。我只是想知道是否有任何更新可以告訴您？

We're getting continual and deeper engagement with our EVOKE partners. They're part of the collaborative working sessions we have with certain customers. To give you a little light on this, typical -- in our history satellite -- we think of satellite communications mostly as geospatial satellites, and they acquired their ground infrastructure by buying boxes and then stacking them together. And then the boxes basically stayed in place for the 15- to 20-year life of the satellite.

我們正在與 EVOKE 合作夥伴進行持續、更深入的接觸。它們是我們與某些客戶舉行的協作工作會議的一部分。為了讓您了解這一點，在我們歷史上的衛星中，典型的衛星通訊主要是地理空間衛星，它們透過購買盒子然後將它們堆疊在一起來獲得地面基礎設施。然後這些盒子在衛星 15 到 20 年的使用壽命內基本上保持在原位。

New space at low Earth orbit is very different, because the satellites have to exert energy and propellant just to stay in orbit because the gravitational pull is so much greater at low Earth orbit. So those satellites typically only have a life of 4 or 5 years, okay? So low Earth orbit satellite service providers don't want to buy hardware like the geo satellite providers did where they buy the hardware one time and live with it statically for 20 years. What they want is a ground infrastructure partner that can be largely cloud native that can evolve with them, because they have the opportunity to replace their entire satellite constellation every 4 or 5 years. In fact, they have to do that.

低地球軌道的新空間非常不同，因為衛星必須施加能量和推進劑才能留在軌道上，因為低地球軌道的引力要大得多。所以這些衛星的壽命通常只有 4 到 5 年，好嗎？因此，低地球軌道衛星服務供應商不想像地球衛星提供者那樣購買硬件，他們購買一次硬體並靜態使用 20 年。他們想要的是一個主要是雲端原生的地面基礎設施合作夥伴，可以與他們一起發展，因為他們有機會每 4 或 5 年更換一次整個衛星星座。事實上，他們必須這麼做。

So they move from Gen 1 to Gen 2 to Gen 3, every 5 years or so. So they need a ground infrastructure partner that has an integrated solution that's virtualized. And that's where our -- that's where frankly, bringing our 14 silos together to be 2 segments, our new Satellite and Space segment has the organic capability to support a large degree of that kind of value proposition for those low Earth service satellite providers. But then we need partners in order to augment our organic capability in certain areas and those partners are playing an important role in our ability to be long-term partners and build long-term relationships with LEO satellite providers at both the Communications and Geospatial domains.

因此，他們每 5 年左右就會從第 1 代遷移到第 2 代，再到第 3 代。因此，他們需要一個擁有虛擬化整合解決方案的地面基礎設施合作夥伴。這就是我們的——坦白說，將我們的14 個孤島合併為2 個部分，我們新的衛星和太空部門擁有有機能力，可以在很大程度上支持那些近地服務衛星提供者的此類價值主張。但我們需要合作夥伴來增強我們在某些​​領域的有機能力，這些合作夥伴在我們成為長期合作夥伴並與通訊和地理空間領域的低地球軌道衛星提供者建立長期關係的能力方面發揮著重要作用。

And it does appear that there are no further questions at this time.

目前看來確實沒有其他問題了。

Thanks, Ken, Mike, and thanks to everyone for dialing in today. As Ken said, there are additional details about our strategy and performance available in our investor letter and SEC filings, and we'll provide ongoing insights in Signals. And as a reminder, we intend to be as responsive as we can with investors going forward. So, for anyone with questions, please reach out directly and let's connect.

謝謝肯、麥克，也謝謝大家今天撥電話。正如 Ken 所說，我們的投資者信函和 SEC 文件中提供了有關我們策略和業績的更多詳細信息，我們將在 Signals 中提供持續的見解。提醒一下，我們打算在未來盡可能地回應投資人的需求。因此，對於任何有疑問的人，請直接聯繫我們並進行聯繫。

This concludes our fourth quarter call. We thank you for your continued support.

我們的第四季電話會議到此結束。我們感謝您一直以來的支持。

This does conclude today's program. Thank you for your participation. You may disconnect at any time. Have a wonderful evening.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連線。祝您有個美好的夜晚。