CPS Technologies Corp (CPSH) 2025 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the CPS Technologies Third quarter 2025 earnings conference call.

女士們、先生們，大家好，歡迎參加 CPS Technologies 2025 年第三季財報電話會議。

(Operator Instruction).

（操作說明）

It is now my pleasure to turn the floor over to your host, Mr. Charles K. Griffith.

現在，我很高興把發言權交給你們的主人查爾斯·K·格里菲斯先生。

Thank you, Ali. Good morning, everyone. Today I'm joined by Brian Mackey, our President and CEO. We look forward to discussing our third quarter results with you. But first, Chris Witty, our Investor Relations Adviser, will provide a brief safe farmer statement, Chris.

謝謝阿里。大家早安。今天我邀請到了我們的總裁兼執行長布萊恩·麥基。我們期待與大家討論第三季的業績。但首先，請我們的投資人關係顧問克里斯‧威蒂做個簡短的說明。克里斯，

Thanks, Char and good morning everyone. Before we begin the business portion of today's call, I'd like to point out that statements in this payments 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's operations and environments. These uncertainties include but are not limited to the ongoing conflict in Ukraine, other geopolitical events, economic conditions, including the current government shutdown, market demands, and competitive factors. Such factors could cause actual results to differ materially from those in any forward-looking statements. Additional information can be found in our filings with the SEC. Now we return the call over to Brian to offer his perspective on the quarter afterwards. Charles will review the financial results in greater detail, Brian.

謝謝Char，大家早安。在開始今天電話會議的業務部分之前，我想指出，本次支付電話會議中非歷史事實的陳述均屬於1995年《私人證券訴訟改革法案》所界定的前瞻性陳述，應被視為受CPS運營和環境諸多不確定因素的影響。這些不確定因素包括但不限於烏克蘭持續衝突、其他地緣政治事件、經濟狀況（包括目前的政府停擺）、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陳述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。現在我們把電話轉回給Brian，請他稍後分享他對本季的看法。 Brian，Charles將更詳細地回顧財務表現。

Thank you, Chris, and good morning everyone. Our last few months at CPS have been very productive. For the third consecutive quarter, we've delivered record revenue for our company at $8.8 million with greater shipping volumes in response to increased customer demand, and that growing demand continues as indicated by the order we announced earlier this week at $15.5 million for our power module components.

謝謝克里斯，大家早安。過去幾個月，CPS 的工作成果斐然。我們連續第三個季度創下公司營收新高，達到 880 萬美元，同時出貨量也大幅成長，以滿足不斷成長的客戶需求。正如我們本週稍早宣布的 1550 萬美元功率模組組件訂單所示，這種成長勢頭仍在持續。

During the quarter, we announced our fifth and 6th federally funded research contract in 2025. We are now executing three phase 2 SBIR programs simultaneously.

本季度，我們宣布了第五份和第六份將於 2025 年簽署的聯邦資助研究合約。目前，我們正在同時執行三個第二階段的小型企業創新研究 (SBIR) 專案。

Additionally, as Charles will review in a moment, we completed a successful secondary offering that brought in over $9.5 million in net proceeds, including share purchases by members of the management team, including both Chuck and myself, as well as several members of our board of directors.

此外，正如查爾斯稍後將要回顧的那樣，我們成功完成了二次發行，淨收益超過 950 萬美元，其中包括管理團隊成員（包括查克和我）以及幾位董事會成員的股份購買。

Now I'd like to turn the call over to Charles to provide further details about our financial results after which I'll provide some additional perspective. Okay, thanks, Brian.

現在我想把電話交給查爾斯，讓他詳細介紹我們的財務業績，之後我再補充一些看法。好的，謝謝，布萊恩。

The third quarter was one of many accomplish accomplishments which we're excited to share with you.

第三季我們取得了一系列令人振奮的成就，我們很高興與大家分享這些成就。

CPS reported total revenue of $8.8 million for the period, a new record compared with $4.2 million in the third quarter of fiscal 2024, doubling year over year.

CPS 報告稱，該期間總收入為 880 萬美元，創歷史新高，而 2024 財年第三季為 420 萬美元，年增一倍。

This represents roughly 9% revenue growth compared to the second quarter of 2025, which was also a record.

與 2025 年第二季相比，這相當於營收成長了約 9%，而 2025 年第二季也創下了紀錄。

Most of the improvement was driven by continued storm demand and associated increased shipments as a result of increased capital capacity utilization and manufacturing throughput.

大部分的改善是由持續風暴需求以及資本產能利用率和生產效率提高所帶來的相關出貨量增加所驅動的。

Our overall acceleration and growth played a direct role in our decision to raise money in preparation for a move to a larger and more efficient manufacturing location.

我們整體的加速發展和成長直接促使我們決定籌集資金，為搬遷到更大、更有效率的生產基地做準備。

This will provide additional room to increase our production levels as demand dictates, which we see happening in the quarters and years to come. I'll speak to this more in a moment.

這將為我們根據市場需求提高產量提供更多空間，我們預計這種情況將在未來幾季和幾年內發生。稍後我會詳細闡述這一點。

We reported gross profit in the third quarter of $1.5 million or approximately 17.1% of sales compared with the gross loss of $0.5 million last year. As in other recent quarters, the increase year over year was due to higher revenue and improved manufacturing efficiencies. Our margins continue to make modest improvements sequentially, and we remain focused on raising them further as we increase productivity and improve asset utilization.

第三季度，我們實現毛利150萬美元，約佔銷售額的17.1%，去年同期毛虧損為50萬美元。與近幾季一樣，年成長主要得益於收入增加和生產效率提升。我們的利潤率環比持續小幅成長，我們將繼續致力於提高生產效率和資產利用率，從而進一步提升利潤率。

Selling general and administrative expenses total 1.2 million for the third quarter versus $1.0 million in the prior year. We continue to manage our costs even while ramping up production and investing for growth. FDA has remained relatively consistent throughout this fiscal year.

第三季銷售及行政費用總計120萬美元，而去年同期為100萬美元。儘管我們提高了產量並加大了成長投資，但我們仍在繼續控製成本。本財年FDA的業績一直保持相對穩定。

The company posted an operating profit of about $276,000 in the third quarter compared with an operating loss of approximately $1.5 million last year, and we reported net income of just over $200,000 or $0.01 per share versus a net loss of about $1 million. $0.07 per share in 23 of fiscal 2024. According to the balance sheet, we ended the quarter with $3.2 million of cash and 1.1 million in marketable securities versus $3.3 million in cash and $1.0 million in marketable securities at the beginning of 2025.

該公司第三季實現營業利潤約27.6萬美元，去年同期營業虧損約150萬美元；淨利略高於20萬美元，即每股0.01美元，去年同期淨虧損約100萬美元。預計2024財年每股虧損將達0.07美元。根據資產負債表，截至本季末，公司持有現金320萬美元和有價證券110萬美元，而2025年初的現金和有價證券分別為330萬美元和100萬美元。

Just after the end of the third quarter, we completed a public offering which I stated earlier raised over $9.5 million in net proceeds. Well, this capital will be will be broadly used for general corporate purposes. The key impetus for this raise was a planned moves to a manufacturing facility nearby that will provide for long-term growth and product expansion.

第三季末，我們完成了首次公開募股，正如我之前提到的，這筆募集資金淨額超過950萬美元。這筆資金將主要用於一般公司用途。此次募資的主要動力是計劃將生產基地遷至附近，這將為公司的長期成長和產品線擴張提供保障。

An active search is underway to identify the best sites to suit our needs. We anticipate the location having nearly double the usable floor space.

我們正在積極尋找最符合我們需求的地點。我們預計新址的可用面積將比現在的幾乎翻倍。

We expect to complete the move during calendar year 2026.

我們預計將在 2026 年完成搬遷。

The extra capacity should address CPS's manufacturing needs for the foreseeable future as we continue to scale the business.

隨著我們不斷擴大業務規模，新增產能應該能夠滿足 CPS 在可預見的未來內的生產需求。

I'd also like to take a moment to publicly thank the folks at Rock Capital for providing the investment banking services, their help, along with the efforts of, the entire team, including our accountants, our attorneys, etc.

我還要藉此機會公開感謝 Rock Capital 的各位，感謝他們提供的投資銀行服務和協助，以及整個團隊的努力，包括我們的會計師、律師等等。

Were invaluable in helping us with the capital raise.

他們在幫助我們籌集資金方面發揮了不可或缺的作用。

Trade accounts receivable totals $5.4 million as of September 27th, 2025 versus $4.9 million as of December 28th, 2024. Inventories rose to $5.4 million at the end of the third quarter, reflecting increased production and customer demand compared with 4.3 million at the start of the fiscal year.

截至 2025 年 9 月 27 日，應收帳款總額為 540 萬美元，而截至 2024 年 12 月 28 日為 490 萬美元。第三季末庫存增至 540 萬美元，反映出產量增加和客戶需求成長，而本財年初的庫存為 430 萬美元。

Turning to the liability side, payables and accruals total 4.8 million.

再來看負債方面，應付帳款和應計款項總計 480 萬。

Versus 4.0 million as of December 28th, 2024. Now Brian will provide a more in-depth discussion of the period.

而截至 2024 年 12 月 28 日，這一數字為 400 萬。接下來，布萊恩將對這段時期進行更深入的探討。

Thanks.

謝謝。

After 3 consecutive quarters of record revenue and improving underlying.

在連續三個季度創下營收紀錄且基本面持續改善之後。

In the future and the whole.

在未來和整體上。

Yes, to the next level is broker.

是的，下一級就是經紀人。

Key among these is exting manufacturing capabilities to meet rising demand as well as the critical element of improving our operational efficiencies. As Charles just mentioned, the clear need for additional space drove the decision to raise capital. In the months to come, we intend to move into a new larger production center where we will be better prepared to meet the higher demand we expect in the months and years to come. This includes meeting the growing needs of our current customer base, allowing for space for new products that are being brought to the market, and expanding our product development capabilities in response to increased federal funding as we continue to build out our product pipeline. This is a very exciting time for CPS, and we're in great shape to take advantage of the various opportunities that lie ahead.

其中關鍵的一點是擴展生產能力以滿足不斷增長的需求，以及提高營運效率這一至關重要的要素。正如查爾斯剛才提到的，對額外空間的迫切需求促使我們決定籌集資金。未來幾個月，我們計劃搬遷至一個更大的新生產中心，以便更好地應對未來幾個月乃至幾年內預期成長的需求。這包括滿足現有客戶群不斷增長的需求，為即將上市的新產品騰出空間，以及根據聯邦政府增加的撥款，擴大產品研發能力，從而不斷完善我們的產品線。對CPS而言，這是一個令人振奮的時刻，我們已做好充分準備，把握未來各種機會。

That said, while Q4 will be strong, it is unlikely due to holidays, plans, plant shutdowns that some of our vendors and customers, etc.

也就是說，雖然第四季度業績會很強勁，但由於假期、計劃、工廠停工等原因，我們的一些供應商和客戶可能會受到影響，因此不太可能實現。

For our fourth quarter results to achieve another quarter of record revenue. This is generally consistent with past years and just that 2025 is a standout year in terms of performance, we anticipate fiscal 2026 to remain strong as well.

我們第四季的業績有望再創營收新高。這與往年基本一致，而且鑑於2025年業績表現突出，我們預計2026財年也將保持強勁勢頭。

We're also very pleased with the recently announced new contract valued at approximately $15.5 million from a long standing multinational semiconductor manufacturer. Under the terms of the agreement, CPS will deliver advanced power model components over a 12 month period which began October 1st, 2025. The order represents a 16.5% year over year increase in value, reflecting expanding demand for CPS's high performance application specific solutions. These components will be integrated into systems supporting high-speed rail, as well as energy and grid infrastructure supporting the dramatic growth and demand for electricity from data centers and other applications. This reflects continued strong momentum in our aluminum, silk, and carbide product line.

我們非常高興地宣布，近期與一家歷史悠久的跨國半導體製造商簽訂了價值約1550萬美元的新合約。根據協議條款，CPS將在2025年10月1日起的12個月內交付先進的功率模型組件。該訂單金額較去年同期成長16.5%，反映出市場對CPS高性能專用解決方案的需求不斷增長。這些組件將整合到高速鐵路系統以及能源和電網基礎設施中，以滿足資料中心和其他應用領域電力需求的快速成長。這體現了我們鋁、絲材和碳化物產品線的持續強勁成長勢頭。

At the same time, we continue to have great success in winning new research contracts for federal government. This enables us to leverage our existing intellectual property to address well-defined customer requirements with significant commercialization potential.

同時，我們在贏得聯邦政府的新研究合約方面持續取得巨大成功。這使我們能夠利用現有的智慧財產權來滿足明確的客戶需求，並實現顯著的商業化潛力。

For example, in the second half of September, we announced our latest phase 2 Small Business Technology transfer or FTTR contract with the US Army.

例如，在 9 月下半月，我們宣布了與美國陸軍簽訂的最新第二階段小型企業技術轉移 (FTTR) 合約。

This funded program provides GPS with $1.15 million over a 24 month period to continue the development of a 40 millimeter controlled fragmentation warhead. For this application, a high density material can produce smaller fragments with higher kinetic energy. So typically sung and heavy alloy materials are ideal. However, traditional manufacturing and machining methods would be impractical due to high strength, brittleness, and hardness of these materials.

這項資助計畫將為GPS提供115萬美元，為期24個月，用於繼續研發40毫米可控破片戰鬥部。對於這種應用，高密度材料可以產生動能更高的較小碎片。因此，通常情況下，燒結和重合金材料是理想的選擇。然而，由於這些材料的高強度、高脆性和高硬度，傳統的製造和加工方法並不適用。

During phase one, CPS successfully demonstrated results, fabricating a tungsten heavy alloy warhead using our proprietary quickset injection molding process. Initial tests delivered results consistent with the technical requirements of the army.

在第一階段，CPS成功展現了其成果，利用我們專有的快速固化注塑成型製程製造出鎢合金彈頭。初步測試結果符合陸軍的技術要求。

These preliminary results will be expanded upon during phase two to improve fragmentation, develop and standardize design guidelines, and move fabrication from the bench to low level production.

在第二階段，我們將擴展這些初步結果，以改善碎片化，制定和標準化設計指南，並將製造從實驗室轉移到小規模生產。

The near term goal is to fabricate a design that satisfies the army's performance criteria for the Mark 1,940 millimeter warhead.

近期目標是製造出能夠滿足陸軍對 Mark 1940 毫米彈頭性能要求的設計。

The New Mexico Institute of Mining and Technology Energetic Materials Research and Training Center, or EMRTC will perform testing to evaluate performance and improve design parameters. EMRTC is a premier research and testing facility specializing in the study of energetic materials and explosives.

新墨西哥礦業與技術學院高能材料研究與培訓中心（EMRTC）將進行測試，以評估性能並改善設計參數。 EMRTC 是一流的研究和測試機構，專門從事高能量材料和炸藥的研究。

The intent of the phase 2 program is to establish the foundation for a robust, low cost, high volume manufacturing process using tungsten heavy alloys and subsequently explore volume manufacturing opportunities. Additionally, we also have a potential to explore other munition sizes, fabricating with other high density materials, and pursuing other applications that require a complex shape made from small area high density materials. It's important to note this project leverages techno technology CPS has developed over several decades, namely our quick set injection molding process, which we have used to produce literally millions of commercial units, including our AI base places. Dr. Mark Oceanero, whose expertise has been fundamental to the development and application of these techniques at CPS for over 40 years, will continue to lead this STTR effort. The novel application of these production methods provides significant new growth opportunities for CPS. This path is very well aligned with our vision to solve our customers' toughest material challenges through the targeted application of our unique intellectual property.

第二階段計畫的目標是為採用鎢合金高密度材料建構穩健、低成本、大量生產流程的基礎，並隨後探索大量生產的機會。此外，我們還有可能探索其他尺寸的彈藥，採用其他高密度材料進行製造，並尋求其他需要使用小面積高密度材料製成的複雜形狀的應用。值得注意的是，該專案利用了CPS公司數十年來開發的技術，特別是我們快速固化注塑成型工藝，該工藝已用於生產數百萬個商業產品，包括我們的人工智慧基地。 Mark Oceanero博士在過去40多年中，憑藉其專業知識，在CPS公司開發和應用這些技術方面發揮了至關重要的作用，他將繼續領導這項小型技術轉移（STTR）工作。這些生產方法的創新應用為CPS公司帶來了重要的全新成長機會。這條道路與我們透過有針對性地應用我們獨特的智慧財產權，解決客戶面臨的最棘手的材料挑戰的願景高度契合。

Also in September, we announced a new phase one FBIR contract from the Department of Energy. This new contract provides approximately $125,000 in funding from the Office of Nuclear Energy for a research effort that extends until April of next year. CPS is developing a high performance sustainable impact win using novel construction methods and materials to enhance the safety of transporting spent nuclear fuel and high-level radioactive waste.

同樣在9月份，我們宣布獲得美國能源部第一階段FBIR合約。這份新合約將透過核能辦公室提供約12.5萬美元的資金，用於一項持續到明年4月的研究計畫。 CPS正在利用新型建造方法和材料，開發一種高性能、永續的創新方案，以提高乏核燃料和高放射性廢棄物運輸的安全性。

This work runs in parallel to the ongoing phase two research funding we have from the DOE for modular radiation shielding. In total, we have now received one phase 2 award and 5 phase 1 awards in 2025 alone.

這項工作與我們正在進行的由美國能源部資助的模組化輻射屏蔽第二階段研究計畫同步進行。光是2025年，我們就已獲得一項第二階段資助和五項第一階段資助。

It's great to see increasing interest in our technology from expanding array of agencies and the various departments within them.

很高興看到越來越多的機構及其內部各部門對我們的技術表現出越來越濃厚的興趣。

We continue to work on other FBIRs already underway, including phase one with the US Navy to reduce weight of the Marine Corps amphibious combat vehicle, a phase two for the development of novel matrix composites for thermal energy storage to address the requirements of Nav Air's advanced anti-reian guided missile extended range program. And the DOE phase 2 award for the development effort of modular radiation shielding for transportation and use of microreactors, as well as non-SBIR funding from the US Naval Air Command at China Lake.

我們繼續推進其他已啟動的FBIR項目，包括與美國海軍合作的第一階段，旨在減輕海軍陸戰隊兩棲作戰車輛的重量；第二階段，旨在開髮用於熱能存儲的新型基體複合材料，以滿足海軍航空兵先進反輻射導彈增程計劃的需求；以及美國能源部第二階段撥款，用於開髮用於微型反應堆航空運輸和使用此外模組化輻射運輸裝置計劃的需求；

Our technical team continues to advance these programs to meet the specifications of these various customers. 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 the company.

我們的技術團隊持續推進這些項目，以滿足不同客戶的特定要求。同時，我們也一如既往地積極爭取更多小型企業創新研究計劃（SBIR）合同，我們相信在這些項目中，我們能夠提供獨特的技術解決方案，並具備商業化潛力。

Regarding the ongoing federal government shutdown, we continue to monitor the impact of CPS, which to date has been rather muted. For federally funded research projects that are already under contract, our development work continues. In some cases, the federal personnel we interact with or the contractors that support them are currently unavailable. However, thus far this has not had a significant impact on our work and it has not interfered with our ability to debate when we submit invoices under active contracts.

關於聯邦政府持續停擺，我們仍在密切關注CPS的影響，迄今為止，其影響相對較小。對於已簽訂合約的聯邦資助研究項目，我們的開發工作仍在繼續。在某些情況下，與我們對接的聯邦人員或為其提供支援的承包商目前無法聯繫。然而，到目前為止，這並未對我們的工作造成重大影響，也未妨礙我們在提交有效合約項下的發票時進行協商。

If there is ultimately a more meaningful negative impact to CPS and the shutdown, it could be related to slow activity on new proposals which CPS has already submitted and which are now under review, or a new research topic that the government was planning to publish in the near future. There may or may not be some delays in these areas depending on the length of the shutdown.

如果政府停擺最終對CPS造成更顯著的負面影響，可能與CPS已提交但目前正在審核的新提案進展緩慢，或者政府計劃近期發布的新研究主題進展緩慢有關。這些領域是否會出現延誤，取決於政府停擺的持續時間。

The impact is difficult to quantify, but overall it has thus far not had a significant impact on us.

影響難以量化，但總體而言，到目前為止還沒有對我們造成重大影響。

Our manufacturing capacity has increased significantly over the last several quarters in response to growing demand, and we continue to land new development contracts as we innovate solutions to real world problems. At the same time, as Chuck mentioned, we are committed to improving gross margins and overall bottom line results. We're endeavoring to increase both operating efficiencies and output, and we believe that with our new $15.5 million dollar power model contract, margins will continue to improve in the quarters to come.

為因應不斷增長的市場需求，我們在近幾個季度大幅提升了產能，並持續獲得新的研發合同，不斷創新解決方案，以應對實際問題。同時，正如查克所提到的，我們致力於提高毛利率和整體獲利能力。我們正努力提升營運效率和產量，並相信隨著新簽訂的價值1550萬美元的電力模型合約的簽署，未來幾季的利潤率將繼續提高。

The outlook for the coming year has never been stronger, and we look forward to leveraging our new manufacturing operations after a new site for our company is identified.

來年的前景從未如此光明，我們期待在找到公司新地點後，充分利用我們新的生產營運。

As always, we remain optimistic regarding future armor orders, but the near term outlook remains uncertain due to the government shutdown. Generally, we believe current military spending trends are working in our favor. We will continue to work with our, with kinetic protection, our partner in this area regarding naval vessel procurement decisions or other applications across the defense spectrum, particularly once the federal government is back to work.

一如既往，我們對未來的裝甲訂單保持樂觀，但由於政府停擺，短期前景仍不明朗。整體而言，我們認為目前的軍費開支趨勢對我們有利。我們將繼續與我們在動能防護領域的合作夥伴攜手合作，共同推進海軍艦艇採購決策以及國防領域的其他應用，尤其是在聯邦政府恢復運作之後。

Additionally, The company is accelerating its efforts to bring new and proprietary products to market, such as a radiation shielding solution and our ALMAX materials. In fact, during the quarter, we fulfilled our first commercial order for ALMAX.

此外，公司正加快新產品和專有產品的上市，例如輻射屏蔽解決方案和ALMAX材料。事實上，本季我們完成了首筆ALMAX商業訂單。

We have also recently expanded our technical team. Specifically, we added a manufacturing engineer to our production staff and another PhD to our R&D team.

我們最近也擴充了技術團隊。具體來說，我們為生產部門增加了一名製造工程師，並為研發團隊增加了一名博士。

Although these new hires have a negative effect on our margins in the short-term, we see the additions of these key personnel as investments in the continued growth CPS.

儘管這些新員工短期內會對我們的利潤率產生負面影響，但我們認為這些關鍵人員的加入是對 CPS 持續成長的投資。

In summary, I believe that the future has never looked better since my arrival here two years ago. Given ongoing strong demand, including our new $15.5 million dollar contract, and expanding array of research contracts, a growing portfolio of technical solutions that address customer requirements, and an upgraded production facility on the horizon, as well as a vastly improved balance sheet which will provide the critical resources necessary to improve our performance. And expand our capabilities. We are ready to take CPS to the next level in terms of revenue, overall performance, and return for our investors. We've come a very long way in a short period of time, and compared to 2024, the company has transformed into a larger, faster growing, more relevant organization with unique capabilities for both industry and government. The future is very bright, and I'm incredibly proud of everything I've seen accomplished this year.

總而言之，我相信自從我兩年前來到這裡以來，公司的未來從未如此光明。持續強勁的需求，包括我們新簽的1550萬美元合同，以及不斷擴大的研究合同範圍，不斷增長的技術解決方案組合能夠滿足客戶需求，升級後的生產設施也即將投入使用，再加上大幅改善的資產負債表將為我們提供提升業績和拓展能力所需的關鍵資源，我們已準備好將在收入、整體業績和CPS。在短短的時間內，我們取得了長足的進步。與2024年相比，公司已轉型成為一個規模更大、成長更快、更具相關性的組織，擁有為產業和政府提供的獨特能力。未來一片光明，我對今年所取得的所有成就感到無比自豪。

We can now open the call up for investors that way I'll pass it back to you.

現在我們可以向投資人發出邀請，我會把邀請轉給你。

(Operator Instruction) Chip Moore, ROTH.

（操作員說明）Chip Moore，ROTH。

Hi, good morning. Hey Brian, it's Charles, I, hey, I wanted to ask on, congratulations on that, nice new order with your long standing customer maybe you expand a bit on what you're seeing from potential other, players in the power will say, large and small.

嗨，早安。嘿，布萊恩，我是查爾斯，我想問一下，恭喜你從老客戶那裡拿到了一筆不錯的新訂單，也許你可以詳細說說你​​從其他潛在的、有影響力的參與者那裡了解到的情況，無論大小。

Yeah, I think as we've looked at our revenue growth throughout the current year, we look at various different customers in both metal matrix composites that you referred to and hermetic packaging and what we've generally seen is growth across the board. The large customers are ordering more as indicated in a recent, contract.

是的，我認為，縱觀我們今年的收入成長情況，我們考察了您提到的金屬基複合材料和氣密包裝等不同領域的客戶，總體而言，我們看到的是全面成長。正如最近的一份合約所示，大客戶的訂單量也在增加。

Medium customers, smaller customers, the demand has picked up, so for existing customers they're ordering more additionally we've got some new customers to the portfolio, but if there's not, any singular element that that has driven that growth either in the past bringing us to today or what we're hearing in, discussions with these customers going forward it's quite broad.

中小型客戶的需求有所回升，因此現有客戶的訂單量增加。此外，我們也新增了一些客戶。但是，如果沒有單一因素推動了這種成長，無論是過去還是未來，無論是從與這些客戶的討論中我們了解到的，都相當廣泛。

And maybe follow-up, Brian, if you think about, adding capacity and space just can you give us a little more insight on how you plan that move? Do you build inventories for key customers, how will you, manage that and deal with the the transition when it comes.

布萊恩，或許我們可以追問一下，如果您考慮增加產能和空間，能否更詳細地介紹一下您的計畫？您是否會為重要客戶建立庫存？您將如何管理庫存，以及在過渡時期如何應對？

Right, yeah, it's all that you, it's all the above, you see a move is fundamentally disruptive. So what we're developing now are detailed plans to, execute a stage move while having things in place that mitigate that, such as inventories built up here, inventories built up downstream of CPS, to soften the blow, so to speak, but what we. Tend to do is outfit the new facility for our needs. We have, hydrogen lines, oxygen lines, etc.

沒錯，就是你說的所有這些，以上所有因素都包含在內，你看，搬遷從根本上來說會造成混亂。所以我們現在正在製定詳細的計劃，以便在分階段搬遷的同時，採取一些緩解措施，例如在這裡儲備庫存，在CPS下游儲備庫存，來減輕衝擊。但我們通常會根據自身需求為新工廠配備設備。我們有氫氣管線、氧氣管線等等。

And then once we're ready to effect the moves, it would essentially be a work sell at a time, so it'd be sort of a leapfrog situation where temporarily we'd be occupying two buildings but be sequentially moving more and more of the company to the new facility so we complete that process and all that would occur, during calendar year 2026.

然後，一旦我們準備好實施搬遷，基本上會一次出售一部分業務，所以會採取一種跳躍式的方法，暫時我們會佔用兩棟建築物，但會逐步將越來越多的公司業務轉移到新設施，以便完成整個過程，所有這些都將在 2026 年日曆年內完成。

Got it. He very helpful. And you just for me on, maybe call shots on goal, a lot of interesting opportunities, any that you're more excited about and then on radiation shielding in particular, the army just came out with the GNS program I'm sure you saw just any thoughts on, potential there thanks.

明白了。他非常樂於助人。你剛剛是不是​​在進球方面給了我一些建議？有很多有趣的機會，你對其中哪些方面比較感興趣？特別是關於輻射屏蔽方面，陸軍剛剛推出了GNS項目，我相信你也看到了，你對這方面的潛力有什麼想法嗎？謝謝。

Yeah, starting with the radiation field and we definitely see opportunities there. We know that we have a solution that's of interest, to users and customers that that are in the nuclear field, so those discussions are continuing. There, there's, adoption discussions and testing conversations that that are naturally part of that process, as you can imagine. So that's an area of great interest for us. But as well some of these other things in the ALMAX material has brought applications because of its material properties, so we have interesting discussions going on there and the one I highlighted, a few minutes ago regarding the control fragmentation warhead that's early in phase two, which just a baby a month or so into the phase 22 year program, but we know that was funded because the army is excited. About what they saw, they have a real need for that, product, but it's simply impractical to machine it, which would be really the only alternative alternative way to get that outcome. So we're excited to see where that goes as we continue to push that forward and more specifically meet the exact requirements, that they have outlined that could, have significant potential over time for us as well.

是的，首先是輻射領域，我們確實看到了其中的機會。我們知道，我們擁有對核領域的用戶和客戶來說很有吸引力的解決方案，因此相關討論仍在繼續。正如您所想，這其中自然包括採納討論和測試方面的交流。所以，這對我們來說是一個非常重要的領域。此外，ALMAX材料的其他一些特性也帶來了應用，因此我們在這方面也進行了一些有趣的討論。我剛才重點提到的是控制破片彈頭，它目前處於第二階段的早期階段，也就是22年計畫啟動一個月左右的時間才剛開始。我們知道，由於軍方對該產品非常感興趣，所以它已經獲得了資金支持。他們確實需要這種產品，但加工製造這種彈頭並不現實，而這原本是實現目標的唯一替代方案。因此，我們很興奮地想看看它未來的發展方向，我們將繼續推進這項工作，更具體地說，滿足他們提出的具體要求，這對我們來說，隨著時間的推移，也可能具有巨大的潛力。

Great, I'll get back into you. Thanks very much.

好的，我會盡快回覆你。非常感謝。

Sure.

當然。

(Operator Instruction), (Inaudible).

（操作說明），（聽不清楚）。

Hey good morning gentlemen and congratulations on a solid quarter and a the recent contract announcement.

各位先生早安，祝賀你們本季業績穩健，並祝賀你們最近宣布了新的合約。

Can you help me understand how revenue under this recently announced contract will be recognized whether that will be fairly level over the contract term or if some of the bonds will be back loaded to be fulfilled once you move to your larger facility.

您能否幫我了解一下，根據最近宣布的這份合同，收入將如何確認？收入在合約期間是否會保持相對穩定？或者部分債券會在搬遷到更大的設施後才兌現？

It should be relatively, stable throughout the, period of the contract, I think that, as Brian mentioned earlier, during the actual move we'll have to TRY to build up inventories, beforehand so that the customer will not see, impact, from the move.

我認為，在整個合約期間內，情況應該相對穩定。正如布萊恩之前提到的，在實際搬遷過程中，我們必須提前努力建立庫存，這樣客戶就不會受到搬遷的影響。

So and typically with this particular customer, the product gets sent to an outside slater where it's plated and then ships to the customers they need the product. So, we'll we'll be building up inventory both here in in the US as well as with the plater so that the the customer won't see any interruptions, shouldn't see any interruptions, for that period and. As I said, it should be relatively stable, equal throughout the year, yeah, and I think there's sort of the two elements of it. It's a level loaded requirement by the customer, generally speaking, but also the necessity for the move is for us to be able to add floor space add production capacity when that comes online, our weekly our weekly quantities will accelerate, so it's sort of a bit of.

所以，通常情況下，對於這位客戶，產品會被送到外部電鍍廠進行電鍍，然後再運送給需要產品的客戶。因此，我們會在美國本土以及電鍍廠都增加庫存，以確保客戶在那段時間內不會遇到任何供應中斷。正如我所說，全年的供應量應該相對穩定。我認為這其中有兩個因素。首先，客戶通常要求穩定的庫存量；其次，搬遷的必要性在於我們需要增加廠房面積和產能。一旦新廠房投入運營，我們的每週產量將會提升。所以，這其中也包含一些其他因素。

Got it. Alright, thanks. That's helpful and understand, the contract and, the offices of business in general. Secondly, how has the federal government shutdown affected you either with, advancing through the SBIR process, procurement, collection receivables, any color you can provide around that would be helpful.

明白了。好的，謝謝。這很有幫助，我了解合約以及一般的業務運作。其次，聯邦政府停擺對您在推進SBIR流程、採購、應收帳款催收等方面有何影響？您能提供的任何相關資訊都將不勝感激。

On the billing side, just earlier this week we submitted an invoice through the government process, two invoice 2 invoices, and we promptly received payments. So, we're set up as an active contract, we received payments, so that was nice to see, on the funded contracts that are underway, there's really minimal disruption because essentially our technical team has been handed the program and they are now executing on the research work. On occasion they might typically have a conversation with, the funding agency, touch base every month or two, something like that. What we've seen is maybe instead of 4 or 5 people on that call there might be 2, so we can still generally get a response or if there's some sort of clarification of path forward, there, there's someone there, but, that's really not that critical to us because we proposed a research plan. Which got approved and funded and we're executing on it so largely the ball is in our court and it is probably more of a risk related to whether the government's going to publish new topics on time, 1 month from now or 2 months from now that that's less clear to us.

在結算方面，就在本週早些時候，我們透過政府流程提交了兩份發票，並迅速收到了款項。因此，我們的合約已生效，款​​也已到賬，這令人欣慰。對於正在進行的已獲資助的合同，實際上受到的影響非常小，因為我們的技術團隊已經接手了項目，並正在執行研究工作。他們偶爾會與資助機構溝通，大約每隔一兩個月聯繫一次。我們發現，通話人數可能從四到五個人減少到兩個人，但我們通常仍然可以得到回复，或者如果需要對後續步驟進行澄清，也會有人在場。不過，這對我們來說並不那麼重要，因為我們已經提出了研究計畫。該項目已獲批准並獲得資金，我們正在執行，所以很大程度上取決於我們，而更大的風險可能在於政府是否會在一個月後或兩個月後按時發布新的議題，這一點我們不太清楚。

Got it. Okay, yeah, thanks. You touched on it a little bit in responding to Chip's question, but I wanted to, talk about Alma a little bit more. It seems to me that that's an exceptionally large commercial opportunity, that's recently validated by. Either execution or delivery of your first order of that product in this quarter, but can you provide any sort of color or additional commentary around the additional commercialop opportunity there and how we might expect this to develop over the next few years.

明白了。好的，謝謝。您在回答Chip的問題時已經稍微提到了Alma，但我還想再多談談它。在我看來，這是一個非常大的商業機會，最近也得到了證實——你們本季完成了該產品的首筆訂單的執行或交付。您能否就這個額外的商業機會以及未來幾年的發展趨勢提供一些細節或補充說明？

Yeah, I think, first of all, interacting with people who are interested in that material and some of those industries they don't know the name CPS, some of them they do so it's a matter of getting in front of the right decision makers and design engineers, etc. And they'll have their own, adoption process. They'll want samples. Which is what we're sending out now to people, if they want to validate the material performance requirements consider how they can adopt this into whether it's something they have ongoing or something new they're developing so we anticipate a a sort of step wise.

是的，我認為首先要與對這種材料感興趣的人互動，有些行業的人可能不知道CPS這個名字，有些則知道，所以關鍵在於找到合適的決策者和設計工程師等等。他們會有自己的採用流程，他們會需要樣品。我們現在正在向他們寄送樣品，如果他們想驗證材料的性能要求，並考慮如何將其應用到他們正在進行的項目或正在開發的新項目中，所以我們預計會是一個循序漸進的過程。

Volume opportunity, no one's going to come, coming on day one, and, in order a great many pieces they're going to do small, medium, and then large, but those are the conversations that we're taking on, and that's why we're, got a focused business development effort, underway to as to our team. We have a position posted that we're actively recruiting for to help pursue these new opportunities because it takes a lot of leg work so that will play out but we do believe that material has a lot of applications and many of them are places we haven't historically been so identifying trade shows, industries, applications, updating our website, etc.

大量採購的機會很多，但不會有人第一天就蜂擁而至。他們會分階段進行，從小批量、中批量到大批量，但這些正是我們正在探討的方向。正因如此，我們正在積極開展業務拓展工作，以壯大我們的團隊。我們發布了一個職缺，正在積極招募人才來幫助我們抓住這些新機遇，因為這需要大量的前期準備工作，最終結果如何，我們堅信這種材料用途廣泛，其中許多應用領域是我們過去從未涉足的。因此，我們正在積極尋找合適的展會、行業和應用領域，並更新我們的網站等等。

To be more, to address those more directly.

更進一步，更直接地解決這些問題。

Great. Well, congratulations again. It was a great quarter and thanks for taking my questions. We'll look forward to, talking to you again soon.

太好了。再次恭喜！這個季度過得非常棒，感謝您回答我的問題。期待很快能再次與您交流。

Thanks.

謝謝。

(Operator Instruction).

（操作說明）

Great, thanks, Ali. Thanks everyone for joining us today for your ongoing interest in CPS. We look forward to speaking with you again after the end of our fourth quarter. If you have any questions in the interim, please reach out to our investor relations advisor.

太好了，謝謝阿里。感謝各位今天蒞臨，並持續關注CPS。我們期待在第四季結束後再次與各位交流。在此期間，如有任何疑問，請聯絡我們的投資者關係顧問。

Thank you.

謝謝。

(Operator Instruction).

（操作說明）