Coda Octopus Group Inc (CODA) 2025 Q2 法說會逐字稿

Good morning, and welcome to Coda Octopus Group's second quarter fiscal 2025 earnings conference call. My name is Melissa, and I will be your operator today. Before this call, Coda Octopus issued its financial results for the second quarter ended April 30, 2025, including a press release a copy of which will be furnished in a report filed with the SEC and will be available on the Investor Relations section of the company's website.

早上好，歡迎參加 Coda Octopus Group 2025 財年第二季財報電話會議。我叫梅麗莎，今天我將擔任您的接線生。在本次電話會議之前，Coda Octopus 發布了截至 2025 年 4 月 30 日的第二季財務業績，其中包括一份新聞稿，其副本將在提交給美國證券交易委員會的報告中提供，並可在公司網站的投資者關係部分查閱。

Joining us today on the call today from Coda Octopus are it's Chair and CEO, Annmarie Gayle; its interim CFO, Gayle Jardine; and its President of Technology, Blair Cunningham. Following their remarks, we will open the call for questions. Before we begin, Geoff Turner from our Investor Relations team will make a brief introductory statement. Geoff, please go ahead.

今天參加 Coda Octopus 電話會議的有其董事長兼執行長 Annmarie Gayle、臨時財務長 Gayle Jardine 和技術總裁 Blair Cunningham。在他們發言之後，我們將開始提問。在我們開始之前，我們投資者關係團隊的 Geoff Turner 將做一個簡短的介紹性演講。傑夫，請繼續。

Thank you, operator. Good morning, everyone, and welcome to Coda Octopus second quarter fiscal 2025 earnings conference call. Before management begins their formal remarks, we would like to remind everyone that some statements we are making today may be considered forward-looking statements under Securities Law and involve a number of risks and uncertainties.

謝謝您，接線生。大家早安，歡迎參加 Coda Octopus 2025 財年第二季財報電話會議。在管理層開始正式發言之前，我們想提醒大家，我們今天所做的一些聲明可能根據《證券法》被視為前瞻性聲明，並涉及許多風險和不確定性。

As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the Securities and Exchange Commission.

因此，我們提醒您，有許多因素，其中許多是我們無法控制的，可能會導致事件與前瞻性陳述中描述的情況大不相同。有關我們前瞻性陳述的更多詳細風險、不確定性和假設，請參閱我們的收益報告和向美國證券交易委員會提交的公開文件中的揭露內容。

We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as may be required by law.

我們不承擔任何義務或承諾更新前瞻性陳述以反映前瞻性陳述作出之日後發生的情況或事件，除非法律另有規定。

We refer you to our filings with the Securities and Exchange Commission for detailed disclosures and descriptions of our business, as well as uncertainties, and other variable circumstances, including, but not limited to, risks and uncertainties identified in our Form 10-K for the year ended October 31, 2024, and Forms 10-Q for the first and second quarters of our 2025 fiscal year.

請您參閱我們向美國證券交易委員會提交的文件，其中詳細披露和描述了我們的業務、不確定性和其他可變情況，包括但不限於我們在截至 2024 年 10 月 31 日的 10-K 表格和 2025 財年第一季度和第二季度的 10-Q 表格中確定的風險和不確定性。

You may get Coda Octopus' Securities and Exchange Commission filings free by visiting the SEC website at www.sec.gov. I would also like to remind everyone that this call is being recorded and will be available for replay via a link in the Investor Relations section of the Coda Octopus website.

您可以透過造訪美國證券交易委員會 (SEC) 網站 www.sec.gov 免費取得 Coda Octopus 提交的美國證券交易委員會文件。我還想提醒大家，本次電話會議將被錄音，您可以透過 Coda Octopus 網站「投資者關係」版塊的連結重播。

Finally, as a reminder, this is our second quarter fiscal 2025 reporting, and all comparisons are with our second quarter fiscal 2024. Now I will turn the call over to the company's Chair and CEO, Annmarie Gayle. Annmarie?

最後，提醒一下，這是我們的 2025 財年第二季報告，所有比較均與我們的 2024 財年第二季進行比較。現在我將把電話轉給公司董事長兼執行長安瑪莉‧蓋爾 (Annmarie Gayle)。安瑪莉？

Thanks, Geoff, and good morning, everyone. Thank you for joining us for our second quarter fiscal year 2025 earnings call. Despite the challenging global policy environment, our revenue in the second quarter 2025 increased by 31%.

謝謝，傑夫，大家早安。感謝您參加我們的 2025 財年第二季財報電話會議。儘管全球政策環境充滿挑戰，但我們2025年第二季的營收仍成長了31%。

Operating income decreased due to lower gross profit margins from our core business, the Marine Technology business due to more units of hardware sales from Asia, which incurred a higher-than-usual commission costs in conjunction with increased operating costs resulting from the weakening of the US dollar against the British pound and Danish kroner.

營業收入下降是由於我們核心業務海洋技術業務的毛利率下降，原因是來自亞洲的硬體銷售單位增加，產生了高於平常的佣金成本，同時由於美元兌英鎊和丹麥克朗的疲軟導致營運成本增加。

In the second quarter, I am very pleased to see revenue increasing by 31.8%. I would like now to provide some of the key highlights relating to our results of operations in the second quarter. For those who are new to the Coda Octopus story, our business is made up of three discrete business operations. The Marine Technology business, the Marine Engineering businesses, and our recently added Acoustics Sensors and Materials business unit. Within our group, our core business is the Marine Technology business.

第二季度，我很高興看到收入成長了31.8%。現在，我想介紹一些與我們第二季經營業績相關的主要亮點。對於那些不熟悉 Coda Octopus 故事的人來說，我們的業務由三個獨立的業務運營組成。海洋技術業務、海洋工程業務以及我們最近增加的聲學感測器和材料業務部門。在我們集團內，我們的核心業務是海洋技術業務。

This business generates most of our revenue, and in the second quarter, it generated 55.3% of our total consolidated revenue. It is around this business that we are building our growth strategy. The Marine Technology business operates in the subsea market and is home to key disruptive on the water technologies.

這項業務創造了我們的大部分收入，第二季度，它創造了我們總合併收入的 55.3%。我們正在圍繞這項業務制定成長策略。海洋技術業務在海底市場運營，是水上關鍵顛覆技術的所在地。

These technologies are bringing the smartphone revolution on the water by providing a comprehensive real-time information platform which allows our customers to make real-time decisions and also significantly reducing the cost of these operations while increasing safety.

這些技術透過提供全面的即時資訊平台，在水上掀起了智慧型手機革命，使我們的客戶能夠做出即時決策，同時顯著降低這些操作的成本，同時提高安全性。

The specific addressable markets that we operate in are the imaging sonar market and diving market. It is these market segments that our growth strategy is built around, just saying a little bit more about our imaging sonar the Echoscope.

我們經營的具體目標市場是成像聲納市場和潛水市場。我們的成長策略就是圍繞這些細分市場制定的，我們只需稍微介紹一下我們的成像聲納 Echoscope。

The Echoscope is a real-time three-dimensional volumetric imaging sonar that can generate a real-time three-dimensional image under water in zero visibility water conditions. This is widely used in the commercial offshore marine market for a range of underwater applications. A significant part of our annual revenue is derived from the commercial offshore marine market.

Echoscope 是一種即時三維體積成像聲納，可在零能見度水條件下產生水下即時三維影像。這廣泛應用於商業近海船舶市場的各種水下應用。我們每年收入的很大一部分來自商業近海海洋市場。

To achieve the growth that our shareholders want to see for our company, we have to increase our market share for underwater imaging sensors in the defense space.

為了實現股東希望看到的公司成長，我們必須增加我們在國防領域水下成像感測器的市場份額。

There are many ongoing defense programs globally where new classes of underwater vehicles are being adopted. Significant budgets are appropriated for this. The Echoscope's uniqueness of being a single sensor for multiple undersea activities presents a significant advantage over other technologies.

全球正在進行許多國防計劃，其中採用了新型水下航行器。為此，我們撥出了大量預算。Echoscope 的獨特之處在於它可以透過單一感測器監測多種海底活動，這比其他技術具有顯著優勢。

It allows the consolidation of the sensor on the vehicle platform by lowering the power consumption and overall vehicle weight without compromising the various missions to be executed. We are launching our next generation of three dimensional sonars imminently.

它可以透過降低功耗和整體車輛重量將感測器整合到車輛平台上，而不會影響要執行的各種任務。我們即將推出下一代三維聲納。

The Nano Gen series. The 3D sonars within our Nano Gen series are a shade bigger than an iPhone. Once launched we will be positioned to address the range of opportunities in the imaging sonar space, removing form factor and pricing barriers.

Nano Gen 系列。我們的 Nano Gen 系列中的 3D 聲納比 iPhone 稍大。一旦推出，我們將致力於解決成像聲納領域的一系列機遇，消除外形和定價障礙。

The Nano Gen series are designed to address the much smaller underwater vehicles, which are now being rapidly adopted for undersea missions in the defense space. Moreover, the Nano Gen series being so small can now be easily worn or carried down by the diver or attach to a robot under water.

Nano Gen 系列專為小型水下航行器而設計，目前此類航行器正迅速應用於國防領域的海底任務。此外，Nano Gen 系列非常小，現在可以由潛水員輕鬆佩戴或攜帶，或安裝在水下的機器人上。

The development of the Nano Gen series is another significant forward in the underwater imaging space and a commendable achievement by our R&D team. Taking the technology and reducing it by two-thirds, we never believed we could achieve this.

Nano Gen系列的開發是水下影像領域的另一個重大進步，也是我們研發團隊的一項值得稱讚的成就。採用這項技術並將其減少三分之二，我們從未相信我們能夠實現這一目標。

Our second key technology is the DAVD, the Diver Augmented Vision Display Systems. The DAVD provides a real-time information platform for diving operations, increasing safety and efficiency. The addressable market for the DAVD includes both the defense and commercial diving sectors. The untethered variant addresses the special forces type of diverse and we believe constitutes the largest addressable market for the technology.

我們的第二個關鍵技術是 DAVD，即潛水員增強視覺顯示系統。DAVD為潛水作業提供了即時資訊平台，提高了安全性和效率。DAVD 的目標市場包括國防和商業潛水領域。不受束縛的變體解決了特種部隊類型的多樣化問題，我們相信這構成了該技術最大的潛在市場。

Now turning to second quarter highlights relating to our core business the Marine Technology business. This business sells its products and solutions worldwide and increased revenue in the second quarter by 10%. Key highlights include 65.5% of revenue generated by this business relates to Echoscope and 34.2% relates to DAVD.

現在來談談與我們的核心業務海洋技術業務相關的第二季亮點。該業務在全球範圍內銷售其產品和解決方案，第二季度收入成長了 10%。主要亮點包括該業務產生的收入中有 65.5% 與 Echoscope 有關，34.2% 與 DAVD 有關。

Hardware sales increased by 65% and were $3.3 million compared to $2 million in second quarter 2024. Hardware sales to Asia rose by approximately 105% and were $2.2 million compared to $1.1 million in second quarter 2024.

硬體銷售額成長了 65%，達到 330 萬美元，而 2024 年第二季為 200 萬美元。對亞洲的硬體銷售額成長了約 105%，達到 220 萬美元，而 2024 年第二季的銷售額為 110 萬美元。

This increase resulted in higher commission costs. Rental assets were significantly underutilized in the second quarter, resulting in lower units of rentals and associated services. This also impacted on the gross profit margins of this business. This reflects to the change in US policy on funding for offshore renewables, which caused many projects to be shelved as reported by Shell, Ørsted, and BT.

這一增長導致佣金成本上升。第二季租賃資產的使用率嚴重不足，導致租賃和相關服務單位減少。這也影響了該業務的毛利率。這反映了美國對海上再生能源資助政策的變化，據殼牌、奧斯特和英國電信報道，這導致許多項目被擱置。

Looking ahead, however, we're seeing an uptick in the utilization of our rental fleet currently and we have a number of ongoing rentals, which are uniquely for longer rental periods for up to one year. I am very excited about this currently.

然而，展望未來，我們目前看到租賃車隊的使用率正在上升，我們有許多正在進行的租賃，這些租賃的獨特之處在於租賃期較長，最長可達一年。我目前對此感到非常興奮。

I want to emphasize that although the gross profit margins of our core business decreased in the second quarter. This is due to an exceptional set of circumstances where a higher commission cost was incurred on sales from Asia.

我想強調的是，雖然第二季我們主要業務的毛利率有所下降。這是由於一系列特殊情況導致來自亞洲的銷售產生了更高的佣金成本。

Now turning to highlights relating to the Marine Engineering business. In the second quarter, our Marine Engineering business revenue increased by 2.3%, along with gross profit margin from 50.7% in the second quarter to 55.5% in the second quarter 2025.

現在來談談與海洋工程業務相關的亮點。2025年第二季度，我們的海洋工程業務收入成長了2.3%，毛利率從第二季的50.7%成長到第二季的55.5%。

This business has long-standing relationships with prime defense contractors and has served the defense market for over 48 years. It is reliant on receiving funding on the Defense Programs. During the second quarter, it saw an increase in the level of inquiries on the Defense Programs and also much more momentum around these inquiries.

該公司與主要國防承包商保持著長期的合作關係，並為國防市場服務了 48 年多。它依賴國防計劃的資金。在第二季度，針對國防計畫的詢問數量增加，而且這些詢問的勢頭也更加強勁。

We also saw an increase in opportunities for direct contracts with the Department of Defense, DoD, which positions this segment to be able to compete for more work packages directly with the DoD, as opposed to exclusively through prime defense contractors. The success of the Marine Engineering business is dependent on increasing the number of Defense Programs that they sell proprietary parts into. The momentum that we're seeing, therefore, is exciting.

我們也看到與國防部（DoD）直接簽訂合約的機會增加，這使得該部門能夠直接與國防部競爭更多的工作包，而不是僅僅透過主要國防承包商。海洋工程業務的成功取決於其向其銷售專有零件的國防項目數量的增加。因此，我們所看到的勢頭是令人興奮的。

With defense budgets increasing globally and real pace being injected into the area, we are excited about this and feel that the group is well positioned.

隨著全球國防預算的增加以及該地區軍事力量的實際擴張，我們對此感到興奮，並認為該集團已做好準備。

Now turning to highlights relating to the newly acquired business unit, Precision Acoustics Limited. In the second quarter, this newly added business unit contributed 18.5% to our consolidated revenue and 13.4% to our operating income.

現在來談談與新收購的業務部門 Precision Acoustics Limited 相關的亮點。第二季度，該新業務部門為我們貢獻了18.5%的合併收入和13.4%的營業收入。

This business unit has added some diversification and resilience to our revenue structure. We continue to be very pleased with this acquisition, which we made in October 2024 and reiterate that it positions the group to collectively respond to larger defense requirements, particularly in the underwater acoustics space. We continue to make our priority to focus on executing against our growth strategy, and in the second quarter, we saw an increase in sales of both the Echoscope and DAVD.

該業務部門為我們的收入結構增添了一些多樣化和彈性。我們對於 2024 年 10 月進行的收購感到非常高興，並重申該收購將使集團能夠共同應對更大的國防需求，特別是在水下聲學領域。我們繼續優先關注執行我們的成長策略，並且在第二季度，我們看到 Echoscope 和 DAVD 的銷量都有所成長。

Blair Cunningham, our President of Technology, who is the market maker for our technologies will be updating you on progress and various milestones around our core technologies. Blair will also be available to answer any questions you may have about our technologies, so please use the opportunity to raise such questions during the Q&A session if you have any. I will now turn the call over to Blair Cunningham.

我們的技術總裁布萊爾坎寧安 (Blair Cunningham) 是我們技術的市場推動者，他將向您介紹我們核心技術的進展和各個里程碑。布萊爾還將回答您有關我們技術的任何問題，因此如果您有任何問題，請利用這個機會在問答環節中提出。現在我將把電話轉給布萊爾·坎寧安。

Thank you, Annmarie, and good morning, everyone. Today, I want to focus on addressable markets for our technology and to expand on what we're doing to grow the business as shareholders want us to do. I hope this will be helpful to our shareholders.

謝謝你，安瑪麗，大家早安。今天，我想集中討論我們技術的潛在市場，並進一步闡述我們為實現股東期望的業務成長所做的努力。我希望這對我們的股東有所幫助。

The Echoscope, the best market opportunities for scalable growth for our company around the Echoscope lie in the defense space, which is undergoing a major transformation through the deployment of new classes of underwater vehicles, including manned, unmanned surface and fully autonomous platforms. These platforms vary dramatically in size from large vehicles exceeding 85 feet in length and weighing over 85 tons to compact one-person deployable systems.

Echoscope，我們公司圍繞 Echoscope 實現可擴展增長的最佳市場機會在於國防領域，該領域正在透過部署新型水下航行器（包括載人、無人水面和全自動平台）發生重大轉變。這些平台的尺寸差異很大，從長度超過 85 英尺、重量超過 85 噸的大型車輛到緊湊的單人可部署系統。

Despite this diversity, a common requirement across all platforms is the need for reliable underwater vision. This capability is essential for safe and accurate navigation, situational awareness, environmental understanding, data collection, and mission execution. The Echoscope directly addresses these needs by providing high-resolution, real-time 3D imaging and complex underwater environments.

儘管存在這種多樣性，但所有平台的共同要求是需要可靠的水下視覺。這種能力對於安全且準確的導航、態勢感知、環境理解、資料收集和任務執行至關重要。Echoscope 透過提供高解析度、即時 3D 成像和複雜的水下環境直接滿足了這些需求。

The defense sector deploys these underwater vehicles for a range of mission-critical applications, most notably, mine countermeasures or MCM, anti-submarine warfare or ASW, surveillance and reconnaissance and infrastructure protection.

國防部門將這些水下航行器部署到一系列關鍵任務應用中，最顯著的是掃雷或MCM、反潛戰或ASW、監視和偵察以及基礎設施保護。

Currently, the Echoscope is being evaluated for integration into active future defense programs supporting three of these core mission areas, positioning it as a vital enabler in next-generation underwater operations.

目前，Echoscope 正在接受評估，以便將其整合到支持其中三個核心任務領域的未來國防計劃中，使其成為下一代水下作業的重要推動者。

All next-generation defense vehicle programs share a common objective, integrating advanced technologies, and enhanced capabilities thankful to this evolution is the development of smarter vehicles equipped with tools like the Echoscope, a technology that delivers real time, three-dimensional data for informed decision-making. Its versatility across a wide range of defense mission applications support the consolidation of sensor-suite requirements on these platforms.

所有下一代國防車輛計劃都有一個共同的目標，即整合先進技術和增強功能，感謝這一發展，開發出配備 Echoscope 等工具的更智能的車輛，Echoscope 是一種提供實時三維數據以供明智決策的技術。它在廣泛的國防任務應用中的多功能性支援在這些平台上整合感測器套件要求。

A key advantage lies in addressing SWP, which is size, weight, and power constraints by reducing the number of sensors required, the Echoscope helps lower power consumption and overall vehicle weight, directly attributing to extended mission durations. This capability represents a unique and valuable benefit, the Echoscope brings to the defense technology space.

一個關鍵優勢在於透過減少所需的感測器數量來解決 SWP，即尺寸、重量和功率限制，Echoscope 有助於降低功耗和整體車輛重量，直接延長任務時間。這種能力代表了 Echoscope 為國防技術領域帶來的獨特而寶貴的優勢。

To address the full spectrum of underwater vehicles, we have been actively investing in the development of our next-generation 3D sonar technology. We're now on the cusp of launching our Nano-Gen series a compact high-performance product line that represents a significant milestone in our growth strategy designed with minimal form factor, some models in the series are only slightly larger than an iPhone.

為了解決各種水下航行器的問題，我們一直在積極投資開發下一代 3D 聲納技術。我們現在即將推出 Nano-Gen 系列，這是一條緊湊型高性能產品線，代表了我們成長策略的一個重要里程碑，採用極簡外形設計，該系列中的某些型號僅比 iPhone 稍大一些。

This compact size enables seamless integration with a smaller next-generation Underwater Vehicle Programs currently in development. The Nano-Gen series also extend our capabilities into new mission domains. It aligns well with the DAVD, the Diver Augmented Vision Display Program, offering a sonar solution that can be easily hand carried by a diver.

這種緊湊的尺寸使其能夠與目前正在開發的較小的下一代水下航行器項目無縫整合。Nano-Gen 系列也將我們的能力擴展到新的任務領域。它與 DAVD（潛水員增強視覺顯示程序）完美契合，提供潛水員可以輕鬆手持的聲納解決方案。

Additionally, it opens up new opportunities in the robotics market as the miniaturized Echoscope can now be mounted on a variety of robotic platforms regardless of size without compromising performance. Currently, the Echoscope accounts for approximately 80% of our revenue in the Marine Technology business. The Nano-Gen series strengthens this core product line while strategically positioning us to capture emerging segments across defense, commercial, and robotic underwater applications.

此外，它為機器人市場開闢了新的機遇，因為小型化的 Echoscope 現在可以安裝在各種機器人平台上，無論大小，而不會影響性能。目前，Echoscope 約占我們海洋技術業務收入的 80%。Nano-Gen 系列強化了這條核心產品線，同時在戰略上使我們能夠佔領國防、商業和機器人水下應用等新興領域。

The unmanned underwater vehicles or UUV market was valued at $4.8 billion in 2024 and is projected to grow to $11.1 billion by 2030. This growth is being driven by the rising complexity of maritime threats and the increasing demand for cost-effective, low-risk technologies. As a result, remotely operated vehicles or ROVs, and other UUVs are becoming integral to defense strategies around the world.

2024 年無人水下航行器或 UUV 市場價值為 48 億美元，預計到 2030 年將成長到 111 億美元。這種增長是由海上威脅日益複雜以及對具有成本效益、低風險技術日益增長的需求所推動的。因此，遙控潛水器（ROV）和其他 UUV 正成為世界各地國防戰略不可或缺的一部分。

The Echoscope is currently under evaluation in several major defense programs, including those involving next-generation underwater vehicles. Its ability to deliver real-time high-resolution 3D imaging positions it, as a critical enabler for enhanced navigation, threat detection and mission execution across a broad range of maritime operations.

Echoscope 目前正在幾個主要的國防項目中接受評估，其中包括涉及下一代水下航行器的項目。它能夠提供即時高解析度 3D 成像，成為廣泛海上作業中增強導航、威脅偵測和任務執行的關鍵推動因素。

I also mentioned on previous calls, we have developed a Ship Hull Standing Solution. They are multiyear funded defense program with the Echoscope embedded at the core of the system. Ship Hull Standing addresses a significant and persistent challenge, the threat posed by unauthorized apartments such as mines or tracking devices on the hulls of high-value needle assets. This is a global concern with critical implications for security, readiness, and asset protection.

我在之前的電話中也提到過，我們已經開發了船體站立解決方案。它們是一項多年資助的國防計劃，其中 Echoscope 是該系統的核心。船體安全解決了一個重大且持久的挑戰，即高價值船舶船體上未經授權的設施（例如地雷或追蹤裝置）所帶來的威脅。這是一個全球性問題，對安全、準備和資產保護有重要影響。

We believe our solution, which is now undergoing formal evaluation represents the most advanced capability available for this application.

我們相信，目前正在進行正式評估的解決方案代表了該應用程式最先進的功能。

The recent introduction of our Nano-Gen series further enhances this offering, making it more adaptable to small form factor platforms, such as remotely operated vehicles and diver slabs, but are often constrained by payload size and weight.

我們最近推出的 Nano-Gen 系列進一步增強了該產品的功能，使其更能適應小型平台，例如遙控車輛和潛水器板，但通常受到有效載荷大小和重量的限制。

We anticipate receiving initial small volume orders late this year to support broader trials. These early developments will serve as key steps towards accelerating adoption and demonstrating the value of our solution in real-world defense environment.

我們預計將於今年稍後收到首批小批量訂單，以支持更廣泛的試驗。這些早期發展將成為加速採用和展示我們的解決方案在現實國防環境中的價值的關鍵步驟。

DAVD, the other significant pillar of growth is the DAVD. DAVD technology is an advanced augmented reality technology designed to enhance diver's safety, performance, and situational awareness, especially in low visibility and technically challenging environments.

DAVD，另一個重要的成長支柱是DAVD。DAVD 技術是一種先進的擴增實境技術，旨在提高潛水員的安全性、性能和態勢感知能力，尤其是在能見度低且技術難度較高的環境中。

It seamlessly integrates real-time data, on-demand information and Echoscope 3D sonar imagery, projecting these onto the divers field of division through the DAVD augmented reality head-up display. DAVD Tethered Variant is in adoption with the US Navy, and in the second quarter, we had orders for DAVD Systems of over $1.5 million.

它無縫整合了即時資料、按需資訊和 Echoscope 3D 聲納影像，並透過 DAVD 擴增實境平視顯示器將這些資料投射到潛水員的分支區域。DAVD Tethered Variant 正在被美國海軍採用，第二季度，我們收到了價值超過 150 萬美元的 DAVD 系統訂單。

These new systems will be distributed to new commands and thereby increasing the user base for the technology to around 12 Navy commands. This is an important step in the adoption of the technology.

這些新系統將分發給新的指揮部，從而將該技術的用戶群擴大到大約 12 個海軍指揮部。這是該技術應用的重要一步。

As with the increased use in live emissions, this will propel the broader adoption. The DAVD Untethered System, which presents the largest opportunity for the technology is still being evaluated, and following the completion of the DAVD Untethered System developing the Hardening Program by us, under which we delivered key items such as the new generation of HUD in a much smaller form factor and higher resolution, in the first quarter of 2025, we received our first order for 16 Untethered Systems, which is pivotal for the broader adoption of the technology in the defense community.

隨著實時排放的使用增加，這將推動更廣泛的採用。DAVD 無線系統為技術帶來了最大的機遇，目前該系統仍在評估中。在我們完成 DAVD 無線系統強化計畫後，我們交付了關鍵產品，例如體積更小、解析度更高的新一代 HUD。 2025 年第一季度，我們收到了第一份 16 套無線系統的訂單，這對於國防領域更廣泛地採用該技術至關重要。

We will be delivering these systems in our third quarter. For context, in the US alone, there are 14,000 divers within the potential community of users for the Untethered Systems. US Special Forces, DoD, US Army, Marine Corps, the US Coast Guard, first responders, and law enforcement.

我們將在第三季交付這些系統。光是在美國，Untethered Systems 的潛在使用者群體中就有 14,000 名潛水員。美國特種部隊、國防部、美國陸軍、海軍陸戰隊、美國海岸防衛隊、急救人員和執法部門。

If we were to achieve 15% of these years, this would, without modeling for inflation, add approximately $105 million to our revenue over time. This is the US market alone. Recent feedback from several major defense trials of the DAVD confirms the significance and uniqueness of DAVD technology.

如果我們能夠實現其中 15% 的目標，那麼在不考慮通貨膨脹的情況下，隨著時間的推移，我們的收入將增加約 1.05 億美元。這僅僅是美國市場。DAVD 的幾次重大國防試驗的回饋證實了 DAVD 技術的意義和獨特性。

The feedback also emphasized the benefit and criticality of combining the DAVD with Echoscope low-visibility environments again, giving us good insight that the full-scale adoption by user groups is likely to include Echoscope.

回饋也再次強調了將 DAVD 與 Echoscope 低能見度環境相結合的好處和重要性，讓我們很好地認識到用戶群的全面採用很可能包括 Echoscope。

In keeping with this, in this year alone, we have five DAVD related development projects, where various other sensors are being integrated in DAVD to ensure that all US defense sensors used by the various missions are available in the DAVD.

為此，僅在今年，我們就有五個與 DAVD 相關的開發項目，其中各種其他感測器被整合到 DAVD 中，以確保各個任務所使用的所有美國國防感測器都可以在 DAVD 中使用。

We believe we have created DAVD solution ecosystem, which is well-positioned to serve the global defense and commercial diving market. One of our key milestones for this year is the adoption of the DAVD Diver Augmented Vision Display Technology for foreign navies, expanding is used beyond the US Navy. We are making strong progress towards this goal.

我們相信我們已經創建了 DAVD 解決方案生態系統，它能夠很好地服務全球國防和商業潛水市場。我們今年的一個重要里程碑是外國海軍採用了 DAVD Diver 增強視覺顯示技術，並將其應用範圍擴展到美國海軍之外。我們正在朝著這一目標邁進。

In the second quarter, we showcased the DAVD System at the Special Operations Command, so-called annual conference and exhibition, where it was demonstrated to multiple foreign major delegations.

第二季度，我們在特種作戰司令部年度會議和展覽會上展示了 DAVD 系統，並向多個外國主要代表團進行了演示。

Importantly, the event also brought us in direct engagement with leading defense diving equipment manufacturers, who play a critical role in the successful integration of DAVD into broader diving systems. These demonstrations and discussions mark a significant step in advancing international awareness, validation, and future adoption of the data technology.

重要的是，這項活動也使我們直接與領先的國防潛水設備製造商進行了接觸，他們在 DAVD 成功融入更廣泛的潛水系統方面發揮關鍵作用。這些演示和討論標誌著數據技術的國際認知、驗證和未來應用邁出了重要一步。

Additionally, in the quarter, I personally laud our team in a live administration of the DAVD system to a foreign navy, conducted in collaboration with a local law enforcement dive units. An existing customer of both the Echoscope and our UIS underwater imaging system.

此外，在本季度，我個人讚揚我們的團隊與當地執法潛水部隊合作，向外國海軍現場實施 DAVD 系統。Echoscope 和我們的 UIS 水下成像系統的現有客戶。

This demonstration not only highlighted the operational value of DAVD, but also reinforced the benefit of a seamless integration with the Echoscope. Second demonstration with this Navy is already scheduled where DAVD and the Echoscope will be deployed during a live operational mission to showcase their combined capabilities in a real-world environment.

此次展示不僅突顯了 DAVD 的運作價值，還強調了與 Echoscope 無縫整合的優勢。與海軍的第二次演示已經安排好了，DAVD 和 Echoscope 將在實戰任務中部署，以在現實環境中展示它們的綜合能力。

This particular navy holds significant influence within the European Defense caucus and manages a centralized procurement budget covering the navy, army, special forces and coast guard equivalent, making it a strategically important partner in our international expansion. I will turn the call over to Annmarie and I will be available to take questions during the Q&A session.

這支海軍在歐洲國防核心小組中擁有重要影響力，並管理涵蓋海軍、陸軍、特種部隊和海岸警衛隊的集中採購預算，使其成為我們國際擴張中具有戰略意義的合作夥伴。我會將電話轉給 Annmarie，我將在問答環節回答問題。

Thank you, Blair. Let me now turn the call over to our Interim CFO, Gayle Jardine, to take you through our financials for the second quarter 2025 before I provide my closing remarks. Gayle?

謝謝你，布萊爾。現在，讓我將電話轉給我們的臨時財務長蓋爾賈丁 (Gayle Jardine)，讓她向大家介紹我們 2025 年第二季的財務狀況，然後再做最後的總結。蓋爾？

Thank you, Annmarie, and good morning, everyone. Let me take you through our second quarter fiscal 2025 financial results. For reference, all income statement comparisons are with second quarter fiscal 2024 and all figures are in US dollars.

謝謝你，安瑪麗，大家早安。讓我帶您了解我們 2025 財年第二季的財務表現。作為參考，所有損益表比較均與 2024 財年第二季進行，所有數字均以美元為單位。

Starting with revenue. In the second quarter of 2025, we recorded total revenue of $7.0 million compared to $5.3 million in the second quarter of 2024, an increase of 31.8%. Our core business, the Marine Technology business generated revenue of $3.9 million compared to $3.5 million, a 10% increase for the second quarter 2024.

從收入開始。2025 年第二季度，我們的總營收為 700 萬美元，而 2024 年第二季為 530 萬美元，成長了 31.8%。我們的核心業務——海洋技術業務，創造了 390 萬美元的收入，而 2024 年第二季的收入為 350 萬美元，成長了 10%。

Our Acoustic Sensors and Materials business, which was added to our group in October 2024, recorded revenue of $1.3 million. Our Marine Engineering business, Services business, generated revenue of $1.84 million compared to $1.80 million, representing a 2.3% increase over the second quarter of 2024.

我們的聲學感測器和材料業務於 2024 年 10 月併入我們的集團，收入達 130 萬美元。我們的海洋工程業務、服務業務創造了 184 萬美元的收入，而去年同期為 180 萬美元，比 2024 年第二季成長 2.3%。

Our total consolidated net revenue increased by 31.8%. The newly added business Precision Acoustics, added 18.5% to our consolidated revenue in the second quarter. Moving on to gross profit and margin.

我們的合併淨收入總額成長了31.8%。新增業務精密聲學，為我們第二季的綜合收入增加了18.5%。繼續討論毛利和利潤率。

In the second quarter of 2025, we generated gross profit of $4.5 million compared to $3.7 million in the second quarter of 2024. Consolidated gross margin was 64.1% versus 70.2% in the second quarter of last year.

2025 年第二季度，我們的毛利為 450 萬美元，而 2024 年第二季為 370 萬美元。綜合毛利率為 64.1%，去年第二季為 70.2%。

In our Marine Technology business, gross margin decreased 67.7% in the second quarter of 2025 compared to 80.2% in 2024, reflecting higher commission costs attributed to increased sales in Asia, for hardware in conjunction with the lower utilization of our rental assets, therefore, reducing rental income and associated services.

在我們的海洋技術業務中，2025 年第二季的毛利率較 2024 年的 80.2% 下降了 67.7%，這反映了由於亞洲銷售額增加導致的硬體佣金成本上升，加上我們的租賃資產利用率較低，從而減少了租金收入和相關服務。

The Acoustic Sensors and Materials business realized gross margin of 65.4% and we expect, on an annualized basis, this to be between 59% and 60% depending on the mix of sales. Our Marine Engineering business gross margin increased to 55.5% in the second quarter of 2025 versus 50.7% in the second quarter of 2024, again, reflecting the mix of engineering projects during the second quarter of this year.

聲學感測器和材料業務的毛利率為 65.4%，我們預計，以年率計算，該利率將在 59% 至 60% 之間，具體取決於銷售組合。我們的海洋工程業務毛利率從 2024 年第二季的 50.7% 上升至 2025 年第二季的 55.5%，這再次反映了今年第二季工程項目的組合。

Now moving on to our operating expenses. Total operating expenses for the second quarter of 2025 increased to $3.4 million compared to $2.4 million in the second quarter of 2024. The main factors for the increase in total operating expenses, with the addition of Precision Acoustics into the group, which added 29.5% to these costs and the weakening of the US dollar against British pound and Danish kroner, which impacted on these costs once translated into US dollars from the base of currencies for reporting purposes.

現在談談我們的營運費用。2025 年第二季的總營運費用從 2024 年第二季的 240 萬美元增加至 340 萬美元。總營運費用增加的主要因素是，集團增加了 Precision Acoustics，使這些成本增加了 29.5%，並且美元兌英鎊和丹麥克朗走弱，一旦將這些成本從基礎貨幣轉換為美元用於報告目的，就會對這些成本產生影響。

Our selling, general and administrative costs in the second quarter of 2025 totaled $2.7 million, an increase of 47.4% from $1.8 million in second quarter of 2024, reflecting the addition of the new business unit into the group, and the exchange rate adjustment charges.

我們 2025 年第二季的銷售、一般和行政費用總計 270 萬美元，較 2024 年第二季的 180 萬美元增長 47.4%，反映了新業務部門加入集團以及匯率調整費用。

As a percentage of revenue, our selling, general and administrative costs for the second quarter of 2025 was 38.8%, compared to 34.7% in the prior year quarter. Operating income in the second quarter of 2025 was $1.1 million compared to $1.4 million in the second quarter of 2024, a decrease of 19.5%.

作為收入的百分比，我們 2025 年第二季的銷售、一般和行政費用為 38.8%，而去年同期為 34.7%。2025 年第二季的營業收入為 110 萬美元，而 2024 年第二季為 140 萬美元，下降了 19.5%。

Operating margin was 15.5% compared to 25.4% in the second quarter of 2024, which we attribute to the increase in cost of revenue and total operating expenses for the reasons explained earlier.

營業利潤率為 15.5%，而 2024 年第二季為 25.4%，我們將其歸因於前面解釋過的收入成本和總營運費用的增加。

Pretax income in the second quarter of 2025 was $1.3 million, compared to $1.6 million in the second quarter of 2024. Net income after tax in the second quarter of 2025 was $0.9 million or $0.08 per diluted share, compared to $1.4 million or $0.13 per diluted share in the second quarter of 2024.

2025 年第二季的稅前收入為 130 萬美元，而 2024 年第二季的稅前收入為 160 萬美元。2025 年第二季稅後淨收入為 90 萬美元或每股稀釋後 0.08 美元，而 2024 年第二季稅後淨收入為 140 萬美元或每股稀釋後 0.13 美元。

Looking now at our balance sheet. As of April 30, 2025, we had $24.5 million in cash and cash equivalents on hand and no debt. This represents an increase of $2 million from October 31, 2024, with the comparable figure, $22.5 million.

現在來看看我們的資產負債表。截至 2025 年 4 月 30 日，我們手頭上有 2,450 萬美元的現金和現金等價物，沒有債務。這意味著比 2024 年 10 月 31 日增加了 200 萬美元，而同期的數字為 2,250 萬美元。

Finally, to summarize the financial impact in the current quarter of the introduction of our new Acoustic Sensors and Materials business into the group, they contributed 18.5% total revenue in the quarter, and the gross profit margin was $0.8 million or 65.4%. That completes my financial summary. Now let me turn the call back over to Annmarie for her closing remarks. Thank you.

最後，總結我們新的聲學感測器和材料業務引入集團對本季的財務影響，它們為本季度貢獻了 18.5% 的總收入，毛利率為 80 萬美元，即 65.4%。我的財務摘要到此結束。現在，讓我將電話轉回給 Annmarie，請她作最後發言。謝謝。

Thank you, Gayle. I am very pleased with the increase in revenue in the second quarter 2025. Although the gross profit margins of our core business decreased, I consider this exceptional for the reasons explained earlier. The weakening of the US dollar also resulted in higher operating costs being translated into US dollars by our foreign subsidiaries.

謝謝你，蓋爾。我對2025年第二季營收的成長感到非常高興。雖然我們核心業務的毛利率有所下降，但我認為這是例外，原因如上所述。美元的疲軟也導致我們的海外子公司將更高的營運成本轉換為美元。

These two factors resulted in lower income and earnings per share. We continue to work to create stable long-term shareholder value and execute against our strategy to grow the business, which is our single biggest priority as a group. We are also very pleased with the broader progress that we're making on the DAVD program. The DAVD is the subject of various ongoing trials and limited use on live missions.

這兩個因素導致每股收入和收益下降。我們將繼續努力創造穩定的長期股東價值，並執行我們的業務成長策略，這是我們集團的最大優先事項。我們也對 DAVD 計劃取得的更廣泛進展感到非常高興。DAVD 目前正在接受各種試驗並在實戰任務中有限使用。

As part of this, recent trials were conducted by a major body responsible for assessing the readiness of the technology for deployment. This trial concluded that the DAVD technology is significant and unique.

作為其中的一部分，負責評估該技術部署準備的主要機構最近進行了試驗。此試驗的結論表明，DAVD 技術具有重要意義且獨特。

It also concluded that combining DAVD with our three-dimensional sonar Echoscope makes it unique for diving operations. As part of this recognition, we see the galvanization of different development programs.

研究還得出結論，將 DAVD 與我們的三維聲納 Echoscope 相結合，使其在潛水作業中獨樹一幟。作為這種認識的一部分，我們看到了不同發展計劃的推動。

We are under contract for five developments currently where other sensors that this community use is now being integrated in the DAVD ecosystem. These are strong indicators that this is the technology of choice for future diving operations in the defense space.

我們目前正在簽訂五項開發合同，其中該社區使用的其他感測器現在正在整合到 DAVD 生態系統中。這些強有力的跡象表明這是未來國防領域潛水作業的首選技術。

A key milestone, which we are focused on achieving this fiscal year is adoption of the DAVD by foreign navies, and this is progressing well. We will also continue to prosecute our M&A strategy in fiscal year 2025 and although we have put on hold the acquisition, which we were working on until the global policy environment has stabilized. I want to emphasize that we have not abandoned our M&A strategy.

我們本財政年度重點要實現的一個重要里程碑是外國海軍採用 DAVD，目前進展順利。我們也將在 2025 財年繼續推行我們的併購策略，儘管我們已暫停收購，但我們正在努力等到全球政策環境穩定下來。我想強調的是，我們並沒有放棄併購策略。

We're simply focusing on navigating the policy environment and ensuring that our decisions are sound for our shareholders. Through our strategy, we aim to pivot the revenue model of the Marine Technology business to a multiyear multi-sales model as we have started to see with a DAVD product line.

我們只是專注於駕馭政策環境並確保我們的決策對股東來說是合理的。透過我們的策略，我們旨在將海洋技術業務的收入模式轉變為多年多銷售模式，正如我們在 DAVD 產品線中看到的那樣。

To conclude, we would like to thank our shareholders for their continued support. We're now happy to answer any questions. Operator?

最後，我們要感謝股東們的持續支持。我們現在很樂意回答任何問題。操作員？

(Operator Instructions)

（操作員指示）

Brian Kinstlinger, Alliance Global Partners.

布萊恩金斯特林格 (Brian Kinstlinger)，Alliance Global Partners 成員。

During the last earnings call, Annmarie, you said, given the uncertainty in global trade, there was a standstill by customers as it relates to your Marine Products business. And so you thought revenue would be back-end loaded this fiscal year. First, what changed that led to the stronger-than-expected second quarter demand from Marine products? Did orders pull forward quicker than expected? Or is it staying more broadly, sorry, that's changed from a demand perspective?

安瑪麗，在上次財報電話會議上，您說，鑑於全球貿易的不確定性，與你們的海洋產品業務相關的客戶出現了停滯。所以您認為本財年的收入將會是後端加載的。首先，有什麼變化導致第二季海洋產品需求強於預期？訂單的進度是否比預期的快？或者說，它保持得更廣泛，抱歉，從需求角度來看，它改變了？

Thank you very much for your question. Look, what we're seeing in the -- our core business, the Marine Technology business is really, really strong inquiries around our Echoscope technology particularly on the outright purchase side.

非常感謝您的提問。你看，我們在我們的核心業務——海洋技術業務中看到的是，圍繞我們的 Echoscope 技術的詢問確實非常強烈，特別是在直接購買方面。

So I think we saw really strong level of inquiries from Asia in particular, and that continues on the hardware side. Also, we also saw a strong pickup around the DAVD program, and we had in the quarter, $1.2 million worth of DAVD sales.

因此，我認為我們看到了來自亞洲的詢問量非常強勁，而且這種趨勢在硬體方面也持續存在。此外，我們也看到 DAVD 計畫強勁回升，本季我們的 DAVD 銷售額達到 120 萬美元。

The one thing that we saw, which was the real sort of downturn in inquiries from European developers in the second quarter, but we're now seeing that moving forward and more rentals going ahead in the third quarter. So overall, I think what we're seeing strong level of inquiries right across the piece, that's the Marine Technology business and our Engineering businesses.

我們看到的一個現像是，第二季度來自歐洲開發商的諮詢量確實有所下降，但現在我們看到這種趨勢正在向前發展，第三季租賃量有所增加。所以總的來說，我認為我們看到的整個領域的詢問量都很強勁，即海洋技術業務和我們的工程業務。

Great, and then did you share the expected timing, the new Nano Echoscope release? I think you talked about back-end trials. And then can you discuss how this new release addresses customer feedback and could lead to increased adoption in use cases?

太好了，那麼您有沒有分享一下新 Nano Echoscope 的預計發佈時間？我認為您談論的是後端試驗。然後，您能否討論一下這個新版本如何解決客戶回饋以及如何增加用例的採用率？

Well, First of all, we're really on the cusp of releasing Nano, Blair Cunningham, our President of Technology had significant trials with Nano, I think, the end of this month, for a critical defense program. So after those trials are concluded, we would expect to really make an announcement to our customer base. We'd like to see how those trials go.

嗯，首先，我們真的即將發布 Nano，我們的技術總裁布萊爾坎寧安 (Blair Cunningham) 已經對 Nano 進行了重要的試驗，我想，是在本月底，為了一項重要的國防計劃。因此，在這些試驗結束後，我們希望向我們的客戶群發佈公告。我們想看看這些試驗的進展。

But Blair will talk more about this, but what Nano addresses is really the smaller classes of underwater vehicles. So the introduction of this new generation into the mix allows our business to address the full expense of the requirements that we see in the market from very large underwater vehicles, to very, very small. So I think this positions the company nicely for addressing the full market.

但布萊爾會更多地談論這一點，但 Nano 真正關注的是較小級別的水下航行器。因此，引入新一代產品使我們的業務能夠滿足市場上從大型水下航行器到小型水下航行器的所有需求。所以我認為這將為公司應對整個市場提供良好的定位。

And in addition to that, we have, for example, the diver taking down currently the Echoscope, which is it's a bit sizable. So this now removes that and Nano allows because it's a shade bigger than the I sold, you can easily wear the Echoscope today and also robotics, really where you've got the small robotics platform, again a new application for our technology given the form factor.

除此之外，例如，我們還有潛水員目前正在取下 Echoscope，它的體積相當大。所以現在這個問題就解決了，Nano 比我賣的要大一點，所以你今天可以輕鬆佩戴 Echoscope，還有機器人技術，實際上你有一個小型機器人平台，考慮到外形尺寸，這對我們的技術來說又是一個新應用。

So we are pretty excited about this. And as I said, the launch date will be after trials in June, the end of June, where Blair will be leading our team with the trials with our US Navy customer's fleet.

所以我們對此感到非常興奮。正如我所說，下水日期將在六月的試驗之後，也就是六月底，屆時布萊爾將帶領我們的團隊與美國海軍客戶的艦隊一起進行試驗。

Great. And then as it relates to your five development programs, can you help range or provide a range of sizes for the different opportunities of what these might address and help us with time line for these development programs that might be evaluated and turning to the next phase?

偉大的。然後，由於它與您的五個發展計劃相關，您能否幫助確定這些計劃可能解決的不同機會的範圍或提供一系列規模，並幫助我們制定可能評估並進入下一階段的發展計劃的時間表？

Blair, can you just talk a little bit please about the development programs that we're working on just in terms of the broad sensor requirements?

布萊爾，您能否就廣泛的傳感器要求簡單談談我們正在進行的開發項目？

Yeah, sure. Thank you, Brian, again, for the question. Yes, the five programs are really taking the DAVD system either to support existing equipment or integrating that existing equipment in or in one particular case, it's for a completely new application, which is a kind of saturation -- deep saturation dive suit. So all the biggest market opportunity still remains the untethered space. And really, I would say, probably three or four of those programs all relate to integration with untethered additional dive equipment.

是的，當然。再次感謝 Brian 提出的問題。是的，這五個項目實際上都是利用 DAVD 系統來支援現有設備或整合現有設備，或者在某種特定情況下，它用於一種全新的應用，即一種飽和——深飽和潛水服。因此，最大的市場機會仍然是不受束縛的空間。實際上，我想說，這些項目中大概有三到四個都與不受束縛的附加潛水設備的整合有關。

So it's all for the benefit of that really the US Navy, in particular, along with all the foreign navies, they all use different, what we call UBAs, or underwater breathing apparatus equipment. So we have to then, one of the key parts of DAVD is, providing a hands-free information on typical lifeline information that they would have from this breathing apparatus.

因此，這一切都是為了美國海軍的利益，特別是與所有外國海軍一樣，他們都使用不同的、我們稱之為 UBA 或水下呼吸器設備。因此，我們必須，DAVD 的關鍵部分之一就是，提供關於他們可以從該呼吸器中獲得的典型生命線資訊的免持資訊。

So how do we integrate that, bring that into DAVD, provide the alerts and the real-time information in the hands-free environment. So a lot of the programs around. They've seen the interest in DAVD, they now want that to work with the existing equipment they have, and that really largely that's I would say that's three or four of the programs that we're actively working on at the moment. So think about it as a product adoption necessity as a work to get the equipment in the hands of those divers, that's correct.

那麼我們如何將其整合，納入 DAVD，並在免持環境中提供警報和即時資訊。周圍有很多這樣的程序。他們已經看到了人們對 DAVD 的興趣，現在他們希望將其與他們現有的設備配合使用，而這實際上在很大程度上就是我所說的我們目前正在積極開展的三到四個項目。因此，可以將其視為產品採用的必要性，作為將設備交到潛水員手中的工作，這是正確的。

So the one thing to just add on, Brian, there is to remember that all of the sensors that they're using for diving currently is relevant, but what we have to do if they're going to adopt DAVD, is to bring that within the DAVD world. So I think that for us, this is very positive because what it's really seeing is that DAVD is our choice. So we now need to bring all our sensors within that ecosystem.

因此，布萊恩，需要補充的一點是，要記住，他們目前用於潛水的所有感測器都是相關的，但如果他們要採用 DAVD，我們要做的就是將其納入 DAVD 世界。所以我認為對我們來說，這是非常積極的，因為我們真正看到的是 DAVD 是我們的選擇。所以我們現在需要將所有感測器納入該生態系統。

And we're really seeing a galvanization around that to ensure that all of the sensors that are being used by all different community of users are now being brought into the DAVD world, and we are extremely excited about it.

我們確實看到了這方面的積極進展，以確保所有不同用戶群體所使用的感測器現在都被帶入 DAVD 世界，我們對此感到非常興奮。

Okay. And then you talked about the next-generation underwater vehicles and the progress Coda is making in securing -- sorry, can you talk about the progress Coda is making and securing design wins? And maybe lay-out any milestones or timing we should watch out for? I think we've been we've talked about this opportunity for a little bit, maybe size the range of opportunities in all the different vehicles, what it might look like if you did win a production order?

好的。然後您談到了下一代水下航行器以及 Coda 在確保設計成功方面取得的進展——抱歉，您能談談 Coda 在確保設計成功方面取得的進展嗎？也許可以列出我們應該注意的里程碑或時間？我想我們已經討論過這個機會一段時間了，也許可以衡量一下所有不同車輛中的機會範圍，如果你真的贏得了生產訂單，它會是什麼樣子？

Well, it's very difficult for us to really give numbers. What we are seeing really to the market is that we've got various programs of different state of, if you like, maturity for these underwater vehicles. But really, the important thing, Brian, is it's making sure that we continue this journey of getting new programs, the ones that are ongoing and are being evaluated by -- from -- directly by the US Navy or with prime defense contractors, the technology is already part of that broader program. And so that program is dependent on final evaluation, where does this program go?

嗯，我們很難真正給出數字。我們在市場上真正看到的是，我們針對這些水下航行器製定了各種處於不同成熟度階段的項目。但實際上，布萊恩，重要的是確保我們繼續這一獲得新項目的旅程，這些項目正在進行中，並由美國海軍或主要國防承包商直接評估，這些技術已經成為該更廣泛項目的一部分。那麼該計劃取決於最終評估，那麼該計劃將走向何方？

So what we see is a proliferation of programs where the Echoscope is a contender because they are looking to integrate the Echoscope onto those platforms. So whilst I can't say categorically I'm seeing there's a big market out there.

因此，我們看到 Echoscope 成為眾多項目的競爭者，因為他們希望將 Echoscope 整合到這些平台上。因此，雖然我不能明確地說，但我看到那裡有一個很大的市場。

And I think that the Echoscope -- just that this final report, which i was assessing the readiness of DAVD talked about the uniqueness of the Echoscope technology for -- on special awareness under water and object detection that this is the most advanced technology for that purpose.

我認為 Echoscope——就在這份最終報告中，我正在評估 DAVD 的準備情況，討論了 Echoscope 技術的獨特性——在水下特殊感知和物體探測方面，這是用於此目的的最先進的技術。

So these programs can be slow, but what we're seeing within, for example, the DAVD program, we're seeing pull-through Echoscope sales there. And for the other programs that we've been following for some years, we're seeing additional units being bought in the program slowly moving forward.

因此，這些項目可能會進展緩慢，但我們在 DAVD 等項目中看到，Echoscope 的銷售正在加速。對於我們多年來一直關注的其他項目，我們看到該項目中購買的額外單位正在緩慢推進。

So until like budgets are appropriated and the -- some of these evaluations are concluded, we're still waiting. But we know that some program look very, very profiting for the business, but we still have to wait for, first of all, award and still have to wait for the valuation process to be completed, whether it be directly with the prime defense contractor program or the Navy directly.

因此，在預算得到撥付並且一些評估完成之前，我們仍在等待。但我們知道，有些項目看起來對企業來說非常有利可圖，但我們仍然必須等待，首先，必須等待授予，仍然必須等待評估過程完成，無論是直接與主要國防承包商項目還是直接與海軍簽訂。

But we have to make sure the key point that we're not missing opportunities. And so the job of the team is to make sure that the Echoscope is part of the program that's being considered for adoption. And that's the work that we're doing.

但我們必須確保關鍵點，即我們不會錯過機會。因此，該團隊的工作是確保 Echoscope 成為正在考慮採用的計劃的一部分。這就是我們正在做的工作。

Okay. Last question I have, a numbers question. Your business is lumpy for sure at times. But you had previously expected to have a back-end loaded year, especially as it relates to marine products. Do you still expect the third and fourth quarter to be your two strongest quarters of the year? Or did some of that change given the upside in the second quarter?

好的。我的最後一個問題是數字問題。您的業務有時肯定會遇到困難。但您之前曾預計今年將是後端負載年，特別是與海洋產品相關的部分。您是否仍預計第三季和第四季將成為今年表現最強勁的兩個季度？或者考慮到第二季的上行趨勢，這種情況是否發生了一些變化？

Well, I think that overall, we expect the Marine Technology business to continue to improve in the way that receive this. Look, I'm very excited about the rental opportunities that we're seeing. We're seeing a good level of utilization of our rental pool, which is always very exciting for business. We also see lots of opportunities from Asia for hardware sales. So I see very much that the third quarter and our fourth quarter will be within the balance of what our Q2 numbers look like for the Marine Technology business.

嗯，我認為總的來說，我們預計海洋技術業務將繼續以這種方式改善。看，我對我們看到的租賃機會感到非常興奮。我們看到租賃池的利用率很高，這對企業來說總是非常令人興奮的。我們也看到亞洲有很多硬體銷售機會。因此，我非常確信，第三季和第四季的海洋科技業務數據將與第二季持平。

(Operator Instructions)

（操作員指示）

John Deysher, Pinnacle Value Fund.

約翰‧戴舍爾 (John Deysher)，Pinnacle Value Fund。

I was just curious on the gross margin percentage, it's still very attractive for the company as a whole, 64%, 65%. Should we model that percentage for the back half of the year? Or how should we think about the overall gross margin for the balance of the year? Is it staying the same, going up, going down and for what reasons?

我只是對毛利率百分比感到好奇，對於整個公司來說，它仍然非常有吸引力，64％，65％。我們是否應該為下半年建立該百分比的模式？或者我們應該如何考慮今年餘下時間的整體毛利率？它是保持不變、上升、下降，原因是什麼？

The gross profit margins for our Marine Technology business is very low. It's very, very unusual. If I'm not mistaken, I think, Gayle, I mean, gross profit margins for that business. Same time last year was at 76% compared to 65%. Is that right?

我們的海洋技術業務的毛利率非常低。這非常非常不尋常。如果我沒記錯的話，蓋爾，我想，我的意思是該業務的毛利率。去年同期這一比例為 76%，而去年同期這一比例為 65%。是嗎？

It was just over 70%.

剛好超過 70%。

Yeah. So that 70% is typically what we would expect the margins to be. So we would expect for the rest of the year, margins to go up. I think this quarter was an exceptional quarter for the reasons I explained, which was we had a concentration of sales from Asia. What that means generally is that your selling via your agent network and then incurring commission costs.

是的。因此，70% 通常是我們預期的利潤率。因此，我們預計今年剩餘時間內利潤率將會上升。我認為本季是一個特殊的季度，原因我已經解釋過了，那就是我們的銷售集中在亞洲。這通常意味著您透過代理商網路進行銷售，然後產生佣金成本。

So that was one factor. But that was further compounded by the fact that we had a single sale that triggered a much higher percentage commission because of the multiples on that order. So we expect that to be an outlier. So we expect margins to be much stronger.

這是一個因素。但事實是，我們只有一筆銷售，由於訂單數量較多，因此佣金百分比要高得多，這使得情況更加複雜。所以我們預期這是一個異常值。因此我們預計利潤率將會更高。

In the marine technology and how about the --

在海洋技術方面--

In the Marine Technology business, yes. But -- well, Precision Acoustics, this range is between 57% to 65%. It will be some -- it depends really there on the mix of sales and the Marine Engineering business, I think that there again, we don't expect margins to really change dramatically because then it really depends on their mix of seals generally.

在海洋技術業務方面，是的。但是——嗯，Precision Acoustics，這個範圍在 57% 到 65% 之間。這將是一些 - 它實際上取決於銷售和海洋工程業務的組合，我認為，我們不希望利潤率真正發生巨大變化，因為它實際上取決於他們的密封件組合。

Okay. So those two are going to be steady. That's good to know. And on the SG&A side, is there any reason to think that, for the business as a whole, that percentage might come down. I think it's up a little bit from 1 year ago, the SG&A percentage?

好的。所以這兩個將會很穩定。知道這一點很好。從銷售、一般及行政費用 (SG&A) 方面來看，是否有理由認為，對於整個企業而言，該百分比可能會下降？我認為銷售、一般及行政費用百分比與一年前相比有所上升？

Gayle, did you want to talk to that?

蓋爾，你想談談這個嗎？

Yeah, I can do. Yes, our SG&A percentage this quarter was impacted by a couple of different factors. One of it being the exchange rate ranges that we're seeing in the business. And we are about 65% of our revenue and cost or 55% of revenue, 65% of our cost comes from the entities that are not in the USA. So we have some impact of exchange rate ranges in there. And we also have added in the position of Acoustic business. And we also have some noncash equivalent impact this quarter as well.

是的，我可以。是的，本季我們的銷售、一般及行政費用百分比受到幾個不同因素的影響。其中之一就是我們在業務中看到的匯率範圍。我們約 65% 的收入和成本，或 55% 的收入、65% 的成本，都來自美國以外的實體。因此，我們對那裡的匯率範圍有一些影響。而我們也增加了聲學業務的職位。本季我們也有一些非現金等價物的影響。

If you look at the non-cash element that was quite a lot the -- loss my chain of thought there. Apologies. The noncash charge has increased significantly. So it was the amortization in Power, and the non-cash charges for depreciation, for stock-based compensation and the exchange rate variances.

如果你看非現金元素，你會發現其中有相當多的東西——我的思路就中斷了。抱歉。非現金費用大幅增加。因此，這是電力攤銷，以及折舊、股票薪資和匯率差異的非現金費用。

So in the current quarter, the noncash items as a component of SG&A was 24.7% or about $670,000 compared to 0.3% or only a $6,000 gain in the previous quarter. So that swing had an impact in this quarter here. As we don't know what the exchange is going to do going forward, but we have to be expecting that the US dollar is going to continue to weaken against the pound and the kroner.

因此，在本季度，作為銷售、一般和行政費用組成部分的非現金項目為 24.7% 或約 670,000 美元，而上一季為 0.3% 或僅增加 6,000 美元。因此，這種波動對本季產生了影響。由於我們不知道匯率未來會如何變化，但我們必須預期美元兌英鎊和克朗將繼續走弱。

Okay. So it sounds like we should model SG&A as a percentage of sales, about the same as the first half for the back half. Is that fair?

好的。因此，聽起來我們應該將銷售、一般及行政費用 (SG&A) 建模為銷售額的百分比，與上半年和下半年的百分比大致相同。這樣公平嗎？

Or just slightly lower, yes.

或者只是稍微低一點，是的。

Slightly lower. Okay, fine. That's good. And then I guess my final question is the announcement in third quarter, we expect to deliver 16 that the Untethered Systems, which is good. What kind of revenue contribution might that generate?

稍微低一點。好的，好的。那挺好的。然後我想我的最後一個問題是第三季的公告，我們預計將交付 16 個 Untethered Systems，這很好。這會產生什麼樣的收入貢獻？

Can we talk about that when we get there? I mean the order just so we know last was $800,000. We're hoping that we are going to be delivering all 16 units in the third quarter. So if we do, it will be around $800,000.

我們到了那裡可以再談這個嗎？我的意思是，我們知道最後的訂單是 80 萬美元。我們希望能夠在第三季交付全部 16 台設備。如果我們這樣做的話，費用大約是 80 萬美元。

Okay. Do you have a contract for delivery of 16, it's just a question of timing?

好的。您是否有 16 份交付合同，這只是時間問題嗎？

Yeah, we are under contract, but our production facilities getting the items ready for delivery in the third quarter. So we already have a firm contract for that. It's just a question of delivering those.

是的，我們已經簽訂了合同，但我們的生產設施已準備好在第三季交付產品。因此，我們已經有一個確定的合約。這只是一個交付的問題。

And anything that's not delivered in Q3 would be delivered in Q4?

第三季未交付的產品會在第四季交付嗎？

Yeah, certainly. But of course, we're hoping to deliver all 16 units in the third quarter.

是的，當然。但當然，我們希望在第三季交付全部 16 台。

Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Ms. Gayle any final comments.

謝謝。女士們、先生們，我們的問答環節到此結束。我將把最後的發言權交還給蓋爾女士。

Thank you for joining our call today and for your interest in our company. Have a great day. Thank you.

感謝您今天參加我們的電話會議並對我們公司的關注。祝你有美好的一天。謝謝。

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

謝謝。今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與。