CPS Technologies Corp (CPSH) 2025 Q2 法說會逐字稿

Good morning, everyone, and welcome to CPS Technologies second quarter earnings call. (Operator Instructions)

大家早安，歡迎參加 CPS Technologies 第二季財報電話會議。（操作員指示）

It is now my pleasure to turn the floor over to your host, Chuck Griffith of CPS Technologies. Chuck, the floor is yours.

現在我很高興將發言權交給主持人，CPS Technologies 的 Chuck Griffith。查克，現在輪到你了。

Thank you, Jenny, and good morning, everyone. Today, I'm joined by Brian Mackey, our President and CEO, and we look forward to discussing our second quarter results with you. But first, Chris Witty, our Investment Relations adviser, will provide a brief safe harbor statement. Chris?

謝謝你，珍妮，大家早安。今天，我與我們的總裁兼執行長 Brian Mackey 一起期待與您討論我們的第二季業績。但首先，我們的投資關係顧問 Chris Witty 將提供一份簡短的安全港聲明。克里斯？

Thanks, Chuck, and good morning, everyone. Before we begin the business portion of today's call, I would like to point out that statements in this conference call that are not strictly historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and should be considered as subject to the many uncertainties that exist in CPS' operations and environment.

謝謝，查克，大家早安。在我們開始今天電話會議的業務部分之前，我想指出的是，本次電話會議中非嚴格歷史性的陳述屬於《1995 年私人證券訴訟改革法案》所定義的前瞻性陳述，應被視為受 CPS 運營和環境中存在的許多不確定因素的影響。

These uncertainties include, but are not limited to, the ongoing conflicts in Ukraine and Israel, other geopolitical events, economic conditions, market demands and competitive factors. Such factors could cause actual results to differ materially from those in any forward-looking statement. Additional information can be found in our filings with the SEC.

這些不確定因素包括但不限於烏克蘭和以色列持續的衝突、其他地緣政治事件、經濟狀況、市場需求和競爭因素。這些因素可能導致實際結果與任何前瞻性聲明中的結果有重大差異。更多資訊請參閱我們向美國證券交易委員會提交的文件。

Now I will turn the call over to Brian to offer his perspective on the quarter, after which Chuck will review the financial results in greater detail. Brian?

現在我將把電話轉給 Brian，讓他提供他對本季的看法，之後 Chuck 將更詳細地回顧財務結果。布賴恩？

Thanks, Chris, and good morning, everyone. I'm pleased to announce that for the second consecutive quarter, we have established a new quarterly revenue record for the company at $8.1 million for Q2. Not only is this up quite significantly year-over-year, but it represents 8% growth sequentially from the first quarter of this year.

謝謝，克里斯，大家早安。我很高興地宣布，我們連續第二季創下了公司季度收入新高，第二季營收達到 810 萬美元。這不僅比去年同期大幅成長，而且比今年第一季環比成長了 8%。

We continue to execute across our various products and are focused on fulfilling strong demand for the remainder of this year and beyond. We're on track for our best revenue year ever, and as I'll explain further in a moment, are dedicated to also improving our overall bottom line results.

我們將繼續執行我們的各種產品，並專注於滿足今年剩餘時間及以後的強勁需求。我們有望實現有史以來最好的營收年度，正如我稍後將進一步解釋的那樣，我們也致力於提高我們的整體獲利業績。

We're excited by that aspect -- by all aspects of our operating environment, including ongoing strong demand, increased defense spending, a growing portfolio of marketable technologies often created with external funding and a highly capable team with a demonstrated ability to address our customers' material science challenges.

我們對此感到興奮——我們的營運環境的各個方面，包括持續強勁的需求、增加的國防開支、通常由外部資金創造的不斷增長的適銷對路的技術組合，以及一支能夠解決客戶材料科學挑戰的高能力團隊。

I'll now turn the call over to Chuck to provide further details about our financial results, after which I will provide some additional perspective. Chuck?

現在我將把電話轉給查克，讓他提供有關我們財務表現的更多細節，之後我將提供一些額外的觀點。查克？

Thanks, Brian. We're very pleased with our second quarter -- second consecutive strong quarter of 2025, which is further evidence of our effective approach to growing CPS. The company's revenue for the quarter totaled a record $8.1 million compared with $5.0 million in Q2 of fiscal 2024, an increase of 61%. In the year-over-year comparison, most of the variance was driven by strong customer demand, combined with our improved ability to increase manufacturing output, including the addition of a third shift of production. We continue to broaden the company's core product offerings with new and existing customers, and we anticipate continued strong revenue results.

謝謝，布萊恩。我們對第二季感到非常滿意——這是 2025 年連續第二季表現強勁，這進一步證明了我們有效發展 CPS 的方法。該公司本季的營收總計創紀錄地達到 810 萬美元，而 2024 財年第二季的營收為 500 萬美元，成長了 61%。與去年同期相比，大部分差異是由強勁的客戶需求以及我們提高製造產量的能力所驅動，包括增加了第三班次的生產。我們將繼續向新舊客戶提供更廣泛的公司核心產品，並預計公司的收入將繼續保持強勁成長。

We reported a gross profit in the second quarter of $1.3 million or approximately 16.5% of sales compared with a gross loss of $0.2 million last year. The increase was due to the higher revenue and greater manufacturing efficiencies. While pleased with the much improved margins year-over-year, we remain focused on growing our profitability going forward.

我們報告第二季的毛利為 130 萬美元，約佔銷售額的 16.5%，而去年的毛虧損為 20 萬美元。成長的原因是收入增加和製造效率提高。雖然我們對利潤率同比大幅提高感到滿意，但我們仍將重點放在提高未來的獲利能力上。

We believe the coming quarters will show the results of our efforts to further improve manufacturing efficiencies, increase capacity utilization and bolster return on assets. Selling, general and administrative expenses totaled $1.2 million in the second quarter versus $1.1 million in the prior year period.

我們相信，未來幾季將會展現我們進一步提高製造效率、增加產能利用率和增強資產報酬率的努力的成果。第二季銷售、一般及行政開支總計 120 萬美元，去年同期為 110 萬美元。

We continue to manage our costs even while ramping up production output and investing for growth. The company posted an operating profit of about $137,000 in the second quarter compared with an operating loss of approximately $1.3 million last year, and we reported net income of just over $100,000 or $0.01 per share versus a net loss of about $0.9 million or $0.07 per share in Q2 of fiscal 2024.

我們在提高產量和投資成長的同時，仍繼續控製成本。該公司第二季的營業利潤約為 137,000 美元，而去年的營業虧損約為 130 萬美元；我們報告的淨收入略高於 10 萬美元或每股 0.01 美元，而 2024 財年第二季的淨虧損約為 90 萬美元或每股 0.07 美元。

Turning to the balance sheet. We ended the quarter with $2.4 million of cash and $1.0 million in marketable securities versus $3.3 million in cash and $1.0 million in marketable securities at the end of 2024. Of more significance is that our cash and marketable securities increased by almost $0.5 million from the end of Q1 2025 to the end of Q2 2025.

轉向資產負債表。本季末，我們持有 240 萬美元現金和 100 萬美元有價證券，而 2024 年底，我們持有 330 萬美元現金和 100 萬美元有價證券。更重要的是，從 2025 年第一季末到 2025 年第二季末，我們的現金和有價證券增加了近 50 萬美元。

Trade accounts receivable totaled $5.6 million as of June 28, 2025, versus $4.9 million as of December 28, 2024. Inventories rose to $5.2 million at the end of the second quarter as we produced more to meet our customers' growing demand compared with $4.3 million at the start of the fiscal year.

截至 2025 年 6 月 28 日，貿易應收帳款總額為 560 萬美元，而截至 2024 年 12 月 28 日為 490 萬美元。由於我們生產了更多產品來滿足客戶日益增長的需求，庫存在第二季末上升至 520 萬美元，而本財年初的庫存為 430 萬美元。

Turning to the liability side. Payables and accruals totaled $4.3 million at the end of the second quarter versus $4.0 million at the end or as of December 28, 2024.

轉向責任方面。第二季末應付款項及應計款項總額為 430 萬美元，而 2024 年 12 月 28 日末為 400 萬美元。

Now Brian will provide a more in-depth discussion of the period.

現在，布萊恩將對這段時期進行更深入的討論。

Thanks, Jeff. We are in the middle of CPS' best revenue year ever, but we also know that even better days lie ahead. Manufacturing capacity has increased dramatically over the last several quarters in response to increased demand. New technologies are being brought to market, and we continue to land new development contracts as we develop innovative solutions to real-world problems. As previously announced, we recently won our fourth new SBIR development contract of the year, continuing our partnership with the US.

謝謝，傑夫。我們正處於 CPS 有史以來最好的收入年度，但我們也知道，未來會更好。過去幾個季度，為了滿足不斷增長的需求，生產能力大幅提升。新技術正在被推向市場，我們在為現實世界的問題開發創新解決方案的同時，也不斷獲得新的開發合約。正如之前宣布的那樣，我們最近贏得了今年第四份新的 SBIR 開發合同，繼續與美國保持合作。

Navy to support next-generation defense solutions. This particular Phase 1 SBIR with funding from the US Navy is focused on reducing the weight of the Amphibious Combat Vehicle, or ACV, a vital transport platform for the US Marine Corps operations. This is a six-month award worth $140,000 with an optional six-month extension at the end of the period of performance worth another $100,000.

海軍支援下一代防禦解決方案。這個由美國海軍資助的第一階段 SBIR 重點是減輕兩棲戰車（ACV）的重量，ACV 是美國海軍陸戰隊作戰的重要運輸平台。這是一項為期六個月、價值 14 萬美元的獎勵，在履行期結束時可選擇延長六個月，價值再增加 10 萬美元。

Given our expertise in advanced composites and engineering, we will be evaluating various vehicle components such as hatches, armors, suspensions, et cetera, to identify opportunities for redesign with lightweight alternatives to improve fuel efficiency, buoyancy and operational range. This evaluation is applicable to all variants of the ACV whose designs have significant overlap of their constituent parts.

鑑於我們在先進複合材料和工程方面的專業知識，我們將評估各種車輛零件，如艙口、裝甲、懸吊等，以確定使用輕質替代品重新設計的機會，以提高燃油效率、浮力和運行範圍。此評估適用於 ACV 的所有變體，其組成部分的設計具有顯著重疊。

It's a great contract that could lead to additional work going forward given the military's interest in making vehicles lighter, more durable and fuel efficient. This project will be led by Matthew Karnick, one of our material scientists and now a two-time SBIR award recipient, who has a strong background in composite innovation and structural optimization.

這是一份很棒的合同，考慮到軍方對製造更輕、更耐用、更省油的車輛的興趣，它可能會引發更多的工作。該計畫將由我們的材料科學家之一 Matthew Karnick 領導，他曾兩次獲得 SBIR 獎，在複合材料創新和結構優化方面擁有豐富的經驗。

I'd like to publicly thank Matthew for his great work at CPS over the last three years. In addition, we also recently announced the receipt of our first purchase order for AlMax materials. As a reminder, last year, we became the exclusive global licensee of fiber-reinforced aluminum composites originally developed and patented by Triton Systems.

我想公開感謝馬修過去三年來在 CPS 所做的出色工作。此外，我們最近也宣布收到了第一份 AlMax 材料採購訂單。提醒一下，去年，我們成為了最初由 Triton Systems 開發並獲得專利的纖維增強鋁複合材料的全球獨家授權商。

We're now making headway commercializing this technology under the AlMax brand and are excited to announce this initial contract. Relative to aluminum, AlMax offers superior performance, including exceptional wear resistance and greater strength at both room temperature as well as elevated temperatures. Indeed, we are seeing expanded interest across multiple large addressable markets for the unique performance advantages that AlMax provides. Customer feedback has been highly encouraging.

我們目前正在 AlMax 品牌下推進這項技術的商業化，並很高興宣布這份初始合約。與鋁相比，AlMax 具有更優異的性能，包括出色的耐磨性和在室溫和高溫下的更高強度。事實上，我們看到多個大型目標市場對 AlMax 提供的獨特性能優勢的興趣日益濃厚。客戶的回饋非常令人鼓舞。

This first order from a domestic manufacturer signals promising commercial traction and an important milestone as we pursue a variety of intriguing opportunities for commercializing this material. Additionally, we are now executing two distinct Phase 1 SBIR programs, one funded by the Army and one funded by the Navy targeting the ACV, where these AlMax materials may offer key advantages for improving the operability of military ground vehicles.

這是來自國內製造商的首份訂單，標誌著我們有望獲得商業成功，也是我們尋求將這種材料商業化的各種有趣機會的一個重要里程碑。此外，我們目前正在執行兩個不同的第一階段 SBIR 計劃，一個由陸軍資助，一個由海軍資助，針對 ACV，其中這些 AlMax 材料可能為提高軍用地面車輛的可操作性提供關鍵優勢。

Together, the new SBIR contract and AlMax's first commercial order underscore our ongoing commitment to innovation in material science and our mission to deliver practical mission-ready solutions for government and industrial customers alike.

新的 SBIR 合約和 AlMax 的首個商業訂單共同彰顯了我們對材料科學創新的持續承諾以及為政府和工業客戶提供實用任務解決方案的使命。

Technical work on our other funded efforts continues. Though I will not go into detail on each of them here, I will note that we recently filed a nonprovisional patent application for our radiation shielding material. We are less than halfway through the two-year development effort for radiation shielding that is funded by the Department of Energy, and we continue to pursue relevant commercial opportunities as development work continues in parallel. This recent patent filing provides necessary protection for the intellectual property developed by CPS.

我們資助的其他項目的技術工作仍在繼續。雖然我不會在這裡詳細介紹每一個，但我要指出的是，我們最近為我們的輻射屏蔽材料提交了一份非臨時專利申請。能源部資助的輻射屏蔽兩年開發工作目前已進行不到一半，在開發工作持續進行的同時，我們將繼續尋求相關的商業機會。此次專利申請為CPS開發的智慧財產權提供了必要的保護。

These development activities build upon a very positive growth outlook. At the same time, we are committed to expanding our gross margins and improving bottom line results. We are dedicated to increasing manufacturing efficiencies, which ultimately generate stronger profitability and better returns for our shareholders. This is a key area of focus for the entire company.

這些發展活動建立在非常積極的成長前景之上。同時，我們致力於擴大毛利率並提高獲利能力。我們致力於提高生產效率，最終為股東帶來更強的獲利能力和更好的回報。這是整個公司關注的重點領域。

We have a number of initiatives underway that we expect will have a positive impact on margins. These range from smaller cost-down initiatives to larger modernization programs, each with its own time line for execution and implementation and their impact on the income statement will be realized as each is incorporated into our daily operational activities.

我們目前正在實施多項舉措，預計這些舉措將對利潤率產生正面影響。這些措施的範圍從較小的成本削減計劃到較大的現代化計劃，每個計劃都有自己的執行和實施時間表，並且隨著每個計劃納入我們的日常運營活動，它們對損益表的影響將會實現。

We have faced some headwinds in our ability to improve margins in the near term, including in the form of tariffs. While we source many of our raw materials domestically, tariffs can nevertheless have an impact on domestic pricing. Domestic producers, in some cases, can raise prices if their competitors who import goods are compelled to do so due to tariffs.

我們在短期內提高利潤率方面面臨一些阻力，包括關稅方面的阻力。雖然我們的許多原料都是在國內採購的，但關稅仍會對國內定價產生影響。在某些情況下，如果進口商品的競爭對手因關稅而被迫提高價格，國內生產商也可以提高價格。

Although the impact of these tariffs is not a severe threat, it does work against our efforts to improve margins. The opportunity for future armor orders remains possible given the strong track record that has been built with the US Navy by CPS and our key partner, Kinetic Protection or KP. The federal budget for fiscal 2026 prioritizes defense spending, and our ballistic solutions address a large market across various types of ships as well as other military applications. Productive discussions are ongoing between CPS, KP and relevant members of the Department of Defense, and we remain optimistic about the opportunity for additional orders in the quarters to come.

雖然這些關稅的影響並不構成嚴重威脅，但它確實不利於我們提高利潤率的努力。鑑於 CPS 和我們的主要合作夥伴 Kinetic Protection 或 KP 與美國海軍建立的良好記錄，未來裝甲訂單的機會仍然存在。2026 財政年度的聯邦預算優先考慮國防開支，我們的彈道解決方案涵蓋各種類型的船舶以及其他軍事應用的龐大市場。CPS、KP 和國防部相關成員之間正在進行富有成效的討論，我們對未來幾季獲得更多訂單的機會仍然持樂觀態度。

With regard to our SBIR portfolio, including the new program I spoke of earlier, we now have four active Phase 1s, two active Phase 2s as well as non-SBIR funding from the US Naval Air Command at China Lake. Now with seven active programs, this provides another significant milestone for CPS in terms of the number of externally funded projects underway.

關於我們的SBIR項目組合，包括我之前提到的新項目，我們現在有四個活躍的第一階段項目、兩個活躍的第二階段項目以及來自中國湖美國海軍航空司令部的非SBIR資金。現在已有 7 個活躍項目，就正在進行的外部資助項目數量而言，這為 CPS 帶來了另一個重要里程碑。

Aside from DOE program for radiation shielding, all of these are funded by the Department of Defense. And given priorities of budget in Congress, these represent real opportunities for further military R&D and commercialization upon successful outcomes of the funded research. As always, we continue to pursue additional SBIR contracts where we believe we can provide a unique technical solution that also offers commercialization potential for CPS.

除了美國能源部輻射屏蔽計劃外，所有這些計劃均由國防部資助。考慮到國會預算的優先事項，這些代表著在資助研究取得成功後進一步進行軍事研發和商業化的真正機會。像往常一樣，我們將繼續尋求更多的 SBIR 合同，我們相信我們可以提供獨特的技術解決方案，同時也為 CPS 提供商業化潛力。

Demand remains strong for our core products, which includes both metal matrix composites and hermetic packaging, including our newly added capability of five-axis machining. We have a solid backlog in hand, and we'll continue to execute throughout the year and beyond to meet the robust demand we are experiencing from both existing and new customers.

我們的核心產品需求依然強勁，包括金屬基複合材料和密封包裝，以及我們新增加的五軸加工能力。我們手頭上有大量積壓訂單，並將在全年及以後繼續執行，以滿足現有客戶和新客戶的強勁需求。

In closing, we're excited by the accomplishments we have consistently demonstrated thus far in 2025 and look forward to even better days ahead. 15 months ago, our armor shipments ended as we fulfilled that contract. Since then, we have more than made up for the loss of revenue through the growth of our other products and with additional revenue from externally funded development contracts.

最後，我們對 2025 年迄今所取得的成就感到興奮，並期待未來會更加美好。 15 個月前，隨著我們履行合同，我們的裝甲發貨結束了。自那時起，我們透過其他產品的成長以及外部資助開發合約的額外收入彌補了收入損失。

While actively pursuing additional armor awards, we are leveraging our unique capabilities in radiation shielding, hermetic packaging, AlMax composites and a host of SBIR awards to accelerate growth going forward. And as I mentioned earlier, we are committed to expanding margins and improving the company's underlying performance, leading to greater profitability and cash flow in the quarters to come.

在積極爭取更多裝甲獎項的同時，我們正在利用我們在輻射屏蔽、密封封裝、AlMax 複合材料和一系列 SBIR 獎項方面的獨特能力來加速未來的成長。正如我之前提到的，我們致力於擴大利潤率並改善公司的基本業績，從而在未來幾季實現更高的獲利能力和現金流。

We're proud of everything our team has done to put us in a position for our best revenue year ever, and we are confident that our commitment to growth through innovation, commercialization of our technologies and ongoing operational improvements will provide enhanced returns to our investors. At this point, we can open up the call for questions. Jenny?

我們為團隊所做的一切感到自豪，這些努力使我們取得了有史以來最好的收入年度，並且我們相信，我們致力於透過創新、技術商業化和持續的營運改善實現成長，將為我們的投資者帶來更高的回報。現在，我們可以開始提問了。珍妮？

(Operator Instructions)

（操作員指示）

Michael Legg, Ladenburg.

麥可‧萊格，拉登堡。

Thanks. Good morning. Congratulations on the quarter. Could you talk a little bit about your visibility into future revenues, what type of pipeline you may have and then just kind of get into the sales cycle and how it all develops. Thanks.

謝謝。早安.恭喜本季。您能否稍微談談您對未來收入的展望，您可能擁有什麼類型的管道，然後談談銷售週期以及它如何發展。謝謝。

I think I'll start. Thanks, Michael. I think one aspect of it is the cycle of ordering our different customers execute on, some of them are just a couple of months out. So in the near term, it's very clear to us. Others are sort of in the four to six month time frame where they're adding to our order book at that window. And on a less frequent basis, we'll have an order up to 12 months in advance.

我想我應該開始了。謝謝，麥可。我認為其中一個方面是我們不同客戶執行訂單的周期，其中一些只需要幾個月的時間。因此，就短期而言，我們對此非常清楚。其他人則在四到六個月的時間範圍內將訂單添加到我們的訂單簿中。在較不頻繁的情況下，我們會提前 12 個月接受訂單。

Collectively, I would say our window is four to six months on average, and we do continue to see strong demand that we've seen throughout this year so far. Chuck do you want to add to that?

總的來說，我想說我們的窗口期平均為四到六個月，我們確實繼續看到今年迄今為止一直存在的強勁需求。查克，你想補充一點嗎？

I think that pretty much covers, yeah.

是的，我想這基本上涵蓋了。

Okay. Great. You very much.

好的。偉大的。非常感謝你。

Ron Richards, private investor.

羅恩·理查茲，私人投資者。

Morning guys. Congratulations on the revenues. It's good to see. I was wondering as far as the build-out in data centers, does CPS expect that all that money spending in that area is going to benefit them somewhere down the line?

大家早安。恭喜您獲得收入。很高興看到。我想知道，就資料中心的建設而言，CPS 是否期望在該領域投入的所有資金將來會為他們帶來利益？

Yeah, thanks for the question. Good morning. It's certainly an area of great interest to us, which has significant opportunity for us. These high-voltage DC lines are HVDC. There's a number of projects that are cropping up around the world such as Europe, there's a number of things that are active that are very relevant to CPS. In the past, when we've been asked about data centers, our answer has been that they are not particularly relevant to CPS.

是的，謝謝你的提問。早安.這無疑是我們非常感興趣的領域，它為我們帶來了重大機會。這些高壓直流線路就是HVDC。世界各地（例如歐洲）湧現出許多項目，其中許多活躍的項目與 CPS 非常相關。過去，當我們被問到資料中心時，我們的回答是它們與 CPS 沒有特別的關係。

When we are adding our base plate to our customers' high-power electronics, it's typically necessary because those electronics are switching on and off with generally high frequency. So you think of a subway car or a train that's starting and stopping or a wind turbine starting and stopping is generating heat in the electronics through that starting and stopping and it requires our base plate to help dissipate that heat but stay in contact with those electronics through matching of the coefficient of thermal expansion.

當我們將底板添加到客戶的高功率電子設備中時，這通常是必要的，因為這些電子設備通常以高頻率開啟和關閉。因此，您可以想像地鐵車廂或火車的啟動和停止，或者風力渦輪機的啟動和停止，都會在電子設備中產生熱量，這需要我們的底板來幫助散發熱量，但要透過匹配熱膨脹係數與這些電子設備保持接觸。

Those data centers are typically on and hot 24 hours a day. which means they're typically not relevant for our solution. However, the HVDC projects, which are actively underway and being planned, include one of the sources of this growing demand for electricity to satisfy that demand being wind turbines, wind farms, whether they're over land or over water. And when you're generating electricity with those types of solutions, those wind farms do need base plates like ours to address that switching and therefore, that heat.

這些資料中心通常每天 24 小時處於運行狀態，這意味著它們通常與我們的解決方案無關。然而，正在積極進行和規劃的高壓直流輸電項目包括不斷增長的電力需求來源之一，以滿足風力渦輪機和風力發電場的需求，無論它們是在陸地上還是在水上。當你使用這些類型的解決方案發電時，這些風力發電場確實需要像我們這樣的底板來解決切換問題，從而解決熱量問題。

So this is an additive opportunity related to HVDC that is completely separate from our core markets such as traction or transportation train, subway cars, et cetera. While we've always had sales into the wind turbine market, this is a completely new opportunity that we expect to play out over the next couple of years.

因此，這是一個與 HVDC 相關的附加機會，它與我們的核心市場（如牽引或運輸列車、地鐵車輛等）完全不同。雖然我們一直在風力渦輪機市場銷售產品，但這是一個全新的機遇，我們預計它將在未來幾年內實現。

Okay. Thank you.

好的。謝謝。

(Operator Instructions)

（操作員指示）

[Stephen Coffey], private investor.

[史蒂芬·科菲]，私人投資者。

Hi, good morning. You guys had a, yeah, -- sorry, as I recall, you guys had a radiation shielding contract that was terminated. Have you had any inkling that, that might be reconstituted perhaps in a different way?

嗨，早安。你們有一份，是的，——抱歉，我記得，你們有一份輻射屏蔽合約被終止了。您是否曾想過，這或許可以透過不同的方式進行重構？

Regarding that specific contract, we were in the middle of -- we had started executing on that contract. The very high-level program was canceled. We were uncertain for a while whether that would be reinstituted. It has now become clear that it will not. So that particular instance has tailed off, but other opportunities that we're pursuing are under active discussions and that remains an area where we're very optimistic about our future with radiation shielding. But that particular PO has been fully canceled, and we are being paid for the work done prior to cancellation.

關於那份具體的合同，我們正處於──我們已經開始執行那份合約了。這個高級別的項目被取消了。我們一度不確定是否會恢復這項制度。現在已經很清楚，事實並非如此。因此，那個特定實例已經逐漸減少，但我們正在尋求的其他機會正在積極討論中，並且我們對輻射屏蔽的未來仍然非常樂觀。但該特定採購訂單已完全取消，並且我們將獲得取消先前所做工作的報酬。

Yeah, sure. Okay. Thank you.

是的，當然。好的。謝謝。

(Operator Instructions)

（操作員指示）

Stephen Coffey.

史蒂芬·科菲。

Hi again. So you guys have added a third shift. Are you seeing any capacity constraints in the near future with the higher run rate you've had?

大家好。所以你們增加了第三班次。在你們擁有較高的運行率的情況下，在不久的將來，您是否會發現產能限制的問題？

Yeah. The third shift was added roughly Labor Day of last year on the metal matrix composite side. And there's a number of things underway that are intended to address the growing demand that we're seeing from our customers.

是的。大約在去年勞動節期間，金屬基複合材料部門增加了第三班次。目前我們正在採取多項措施，旨在滿足客戶日益增長的需求。

So it is a challenge for us, but there's also plans underway to address that. The third shift was the easiest way to add capacity quickly. And that demand does remain robust going forward. And as I mentioned in the earlier call, we anticipate significant opportunities. So it is a key point of discussion strategically for the best way for us to address those growing demands. A good problem to have.

所以這對我們來說是一個挑戰，但我們也在製定計劃來解決這個問題。第三班是快速增加產能最簡單的方法。而這種需求在未來仍將保持強勁。正如我在之前的電話會議中提到的，我們預計會有重大機會。因此，從策略角度來看，這是我們討論的重點，以找到最佳方式來滿足這些日益增長的需求。這是一個好問題。

We know how to make these products, and we're seeing strong demand going forward. But there are things underway to address that need because it is an area of growth for us that we anticipate for some time to come.

我們知道如何製造這些產品，並且我們看到未來強勁的需求。但我們正在採取措施來滿足這一需求，因為這是我們預計未來一段時間內會實現成長的領域。

Yeah. Great, thank you. And I guess if I could follow up on one last bit about the fiber-reinforced aluminum. Do you guys -- so you've licensed it. Do you bring proprietary technology to the materials you're doing that are beyond what you're licensing?

是的。太好了，謝謝。我想我可以再談一下有關纖維增強鋁的最後一點。你們——所以你們已經獲得許可了。您是否將超出授權範圍的專有技術運用到您正在製作的材料中？

Yeah. There are two elements of that. We -- so yeah, we are the exclusive global licensee of the technologies, the material, the fiber-reinforced aluminum developed by Triton Systems, which they patented and developed. So with our metal matrix composite know-how, we're the right place for that to take that forward. That's why we're able to work out that agreement. So what we bring to that is all the other things that we are able to do.

是的。這其中有兩個要素。是的，我們是 Triton Systems 開發的纖維增強鋁技術、材料的全球獨家授權商，他們已獲得該技術的專利並進行了開發。因此，憑藉我們的金屬基複合材料技術，我們是推動這項技術進步的最佳選擇。這就是我們能夠達成該協議的原因。因此，我們所做的就是盡我們所能去做其他事情。

So that core material is developed by them is one thing that we are making in our facility today over the past year, we've validated the ability to make the same product that they made and match the data sheet that they made so that when we're talking to customers, they know that this is indeed what we claim it to be.

因此，他們開發的核心材料是我們過去一年來在工廠生產的一件事，我們已經驗證了生產與他們相同的產品的能力，並匹配他們製作的數據表，以便當我們與客戶交談時，他們知道這確實是我們所聲稱的。

The added layer on top of that is potential combinations or overlap. For example, if you need a multilayer material to satisfy a particular need, whether it's high thermal challenges or even maybe a ballistic solution or something related to these vehicles for the military, we now have that in our portfolio of products that can then potentially be combined or improved upon that will play out going forward. So it fits very well in our portfolio, and we may well see things that we tweak or improve upon. But even fundamentally, that AlMax material in and of itself is generating significant interest.

在其上添加的層是潛在的組合或重疊。例如，如果您需要一種多層材料來滿足特定需求，無論是高熱挑戰還是彈道解決方案或與軍用車輛相關的某些東西，我們現在都可以在我們的產品組合中將其組合起來，然後可以對其進行組合或改進，以在未來發揮作用。因此它非常適合我們的投資組合，而且我們很可能會看到需要調整或改進的地方。但從根本上來說，AlMax 材料本身已經引起了人們的極大興趣。

Great. Thank you.

偉大的。謝謝。

Thank you very much. Well there are no further callers in the queue. I will now hand back over to Brian for closing remarks.

非常感謝。嗯，隊列中沒有其他呼叫者了。現在我將把發言權交還給 Brian，請他做最後發言。

Okay. Thanks, everyone, for joining us today and your ongoing interest in CPS. We look forward to speaking with you again after the end of the third quarter. If you have any questions in the meantime, please reach out to our Investor Relations adviser. Thank you.

好的。感謝大家今天的參與以及對 CPS 的持續關注。我們期待第三季結束後再次與您交談。如果您有任何疑問，請聯絡我們的投資者關係顧問。謝謝。

Thank you very much, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation.

非常感謝大家。今天的電話會議到此結束。現在您可以斷開電話線，並享受美好的一天。我們感謝您的參與。