CPS Technologies Corp (CPSH) 2026 Q1 法說會逐字稿

Good morning everyone and welcome to the CPS Technologies Q1 2026 earnings call.

各位早安，歡迎參加 CPS Technologies 2026 會計年度第一季財報電話會議。

(Operator Instructions)

(接線員指示)

It is now my pleasure to turn the floor over to your host, Chuck Griffith, Chief Financial Officer at CPS Technologies. Chuck, the floor is yours.

現在我很榮幸將會議交給今天的主持人——CPS Technologies 財務長 Chuck Griffith。Chuck，交給你了。

Thank you, Jenny, and good morning, everyone.

謝謝你，Jenny，各位早安。

Today, I'm joined by Brian Mackey, our President and CEO and Chris Fraser, our next Chief Financial Officer.

今天與我一同出席的有我們的總裁暨執行長 Brian Mackey，以及我們下一任財務長 Chris Fraser。

We look forward to discussing our first quarter results with you but first, Jordan Darrow, filling in for Chris Witty today on behalf of Darrow Associates, will provide a safe harbor statement.

我們期待與各位討論第一季的業績表現；不過在開始之前，Darrow Associates 代表、今日代替 Chris Witty 出席的 Jordan Darrow，將先宣讀安全港聲明。

Jordan?

Jordan？

Thank you, Chuck, and good morning, everyone.

謝謝你，Chuck，各位早安。

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 or forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and should be considered as subject to many uncertainties that exist in CPS's operations and environment.

在我們開始今天電話會議的業務內容之前，我想提醒各位，本次電話會議中非嚴格屬於歷史事實的陳述，均屬於《1995 年私人證券訴訟改革法》所定義的前瞻性陳述，並應被視為受到 CPS 營運與所處環境中多項不確定因素的影響。

These uncertainties include but are not limited to the ongoing conflicts in Ukraine and the Middle East, 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與中東持續的衝突，以及其他地緣政治事件。經濟狀況、市場需求與競爭因素。上述因素可能導致實際結果與任何前瞻性陳述所述內容出現重大差異。更多資訊請參閱我們向美國證券交易委員會（SEC）提交的文件。

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

接下來我將把電話會議交給 Brian，請他分享對第一季的看法；之後 Chuck 會更詳細地說明財務結果。

Brian?

Brian？

Thank you, Jordan, and good morning, everyone.

謝謝你，Jordan，各位早安。

Before getting into the details of our discussion, let me take a moment to welcome CPS's next CFO, Chris Fraser, to the company as he's here with us today. We'd like to give him the opportunity to introduce himself to our investors this morning.

在進入我們討論的細節之前，我想先花一點時間歡迎 CPS 的下一任財務長 Chris Fraser 加入公司，他今天也在現場。我們希望給他機會在今天早上向投資人自我介紹。

Good morning, Chris, and welcome to CPS.

Chris，早安，歡迎加入 CPS。

Thank you, Brian, and it's great to be here. I'm very happy to share some details of my professional background, which has significant overlap with the challenges and opportunities in front of CPS.

謝謝你，Brian，很高興來到這裡。我很高興分享一些我的專業背景細節，這些經歷與 CPS 目前面臨的挑戰與機會有相當程度的重疊。

Most recently, I served as controller within Precision Castparts Corp or PCC, which makes aluminum castings for aerospace customers. Prior to that, at Advanced Regenerative Manufacturing Institute or ARMI, I served as CFO for early stage ventures funded by federal grants. And as a result, I'm very familiar with the SBIR and STTR programs.

最近，我在 Precision Castparts Corp（PCC）擔任主計長（controller）；該公司為航太客戶製造鋁鑄件。在此之前，我在 Advanced Regenerative Manufacturing Institute（ARMI）擔任財務長，負責由聯邦補助金資助的早期階段創投。因此，我對 SBIR 與 STTR 計畫非常熟悉。

Earlier, I worked at A.W. Chesterton, which manufactured engineered products, and before that, at Oxford Instruments America, where I worked for 17 years.

更早之前，我曾在 A.W. Chesterton 任職，該公司製造工程產品；再之前則在 Oxford Instruments America 工作了 17 年。

I'm excited to join CPS and look forward to helping the company continue to grow and succeed.

我很興奮能加入 CPS，並期待協助公司持續成長並取得成功。

Thanks, Chris.

謝謝你，Chris。

Chris will officially assume the role later this month, which gives him some time working with Chuck and getting up to speed. While Chris has some big shoes to fill with Chuck's upcoming departure, Chris is highly qualified to take on this position as CPS preparers to move into a new facility and execute a strategy for greater growth ahead. I'd also once again like to thank Chuck for his seven years of dedicated service here at CPS without which we would not be where we are today. Chuck's official departure date is tentatively scheduled for the end of this month.

Chris 將於本月稍晚正式接任該職務，這也讓他有一些時間與 Chuck 一起工作並熟悉業務。雖然 Chuck 即將離任，Chris 需要接下重任，但在 CPS 準備搬遷至新廠房並執行更高成長策略之際，Chris 具備高度資格勝任此職。我也想再次感謝 Chuck 在 CPS 七年來的投入與奉獻，沒有他，我們不可能走到今天。Chuck 的正式離任日期暫定為本月底。

Turning to our Q1 results, we posted sales of $7 million, down slightly year over year, due primarily to simple order timing. This does not diminish our positive outlook for 2026, nor reflect a lack of orders or demand. I'll review the current state of the business shortly. We continue to benefit from strong fundamentals, and while our assessment of available facilities continues in depth, we expect to soon announce a new site, which will expand and improve our production capability.

回到第一季業績，我們的銷售額為 700 萬美元，較去年同期略為下滑，主要原因是單純的訂單時點差異。這並不會削弱我們對 2026 年的正向展望，也不代表缺乏訂單或需求。我稍後會回顧目前的業務狀況。我們仍持續受惠於強勁的基本面；同時，我們對可用廠房的評估仍在深入進行中，預期不久將宣布新址，進一步擴充並提升我們的生產能力。

First, let me turn the call over to Chuck to provide further details about our financial results, after which I'll give some additional perspective on the quarter and outlet.

首先，我先把電話會議交給 Chuck，請他提供更多財務結果的細節；之後我會再補充對本季表現與展望的看法。

Thanks, Brian.

謝謝你，Brian。

It's with mixed emotions that I think this will be my last time on the call, but I could not be more proud of all we've accomplished at CPS since I joined the company in 2019. I wish the entire team good luck going forward and believe the company is in great shape to thrive and grow in quarters and years to come. UPS reported revenue of $7 million for the period compared to $7.5 million in the first quarter of fiscal 2025. The year-over-year decline was primarily due to order timing, as Brian mentioned. We anticipate shipments increasing as the year plays out and are very pleased with some recent awards and the overall business outlook.

我帶著複雜的心情認為這可能是我最後一次參與這通電話會議，但自從我在 2019 年加入公司以來，我對我們在 CPS 所完成的一切感到無比自豪。我祝福整個團隊未來一切順利，也相信公司具備良好條件，能在未來幾季與未來幾年持續茁壯成長。CPS 本期營收為 700 萬美元，相較於 2025 會計年度第一季的 750 萬美元。如 Brian 所提，年對年下滑主要是因為訂單時點差異。我們預期隨著年度推進，出貨量將增加；對於近期取得的一些得標案以及整體業務展望，我們感到非常滿意。

In addition, while the specific timing of our move to a new manufacturing facility is not yet finalized, we remain optimistic about this being executed in the coming quarters, positioning us for stronger growth going forward. Brian will speak to this more.

此外，雖然搬遷至新製造廠房的具體時程尚未最終確定，我們仍對於在接下來幾季內完成執行保持樂觀，這將使我們在未來具備更強勁的成長動能。Brian 會進一步說明。

We reported gross profit of $0.6 million or 8.6% of revenue versus $1.2 million or 16.4% of revenue fiscal 2025 first quarter. With the year-over-year decrease largely due to lower overall revenue as well as the current period impact of our inventory build. In future quarters, due to expected revenue growth and changes in product mix, we anticipate margins will grow. We also expect to improve our operating efficiencies once we complete the transition into the new facility.

我們的毛利為 60 萬美元，約占營收的 8.6%，相較於 2025 會計年度第一季的 120 萬美元、約占營收的 16.4%。年對年下降主要是因為整體營收較低，以及本期因存貨增加（inventory build）所帶來的影響。在未來幾季，隨著預期的營收成長與產品組合變化，我們預期毛利率將提升。一旦完成搬遷至新廠房，我們也預期營運效率將有所改善。

Selling general and administration expenses totaled $1.1 million in the first quarter of both fiscal 2026 and 2025, and the company posted an operating loss of $500,000 in the first quarter, compared with an operating profit of approximately $100,000 last year. We reported a net loss of roughly $300,000 or negative $0.02 per share versus net income of just under $100,000 or $0.01 per share in fiscal 2025 first quarter.

第一季的銷售、一般及管理費用合計為 110 萬美元，2026 與 2025 會計年度第一季皆相同；公司第一季營業損失為 50 萬美元，相較去年同期約 10 萬美元的營業利益。我們的淨損約為 30 萬美元，或每股虧損 0.02 美元；相較之下，2025 會計年度第一季淨利略低於 10 萬美元，或每股盈餘 0.01 美元。

Turning to the balance sheet, we ended the quarter with $5.7 million of cash and $6.8 million in marketable securities for a total of $12.5 million combined versus a combined total of $13.2 million at the beginning of 2026, which included $4.4 million in cash and $8.8 million in marketable securities. Our interest rates for cash are very close to the rates we earn on marketable securities, with the main difference being that we can lock in the rates on marketable securities, whereas cash rates fluctuate with the market.

轉向資產負債表，我們在本季末持有現金 570 萬美元及可出售證券 680 萬美元，合計 1,250 萬美元；相較之下，2026 年初合計為 1,320 萬美元，其中包含現金 440 萬美元及可出售證券 880 萬美元。我們的現金利率與可出售證券所賺取的利率非常接近，主要差異在於可出售證券的利率可以鎖定，而現金利率會隨市場波動。

Trade accounts receivable totaled $3.8 million as of March 28, 2026 versus $5.2 million as of December 27, 2025. Inventories increased to $7.1 million at the end of the first quarter, reflecting increased production to support our sales during the move, compared with $5.6 million at the start of the fiscal year. This growth in inventory is acceptable as it will allow us to continue shipping and generating revenue during the transition to our new facility. Turning to the liability side, tables and accruals totaled $3.9 million at the end of the first quarter versus $4.3 million as of December 27, 2025.

截至 2026 年 3 月 28 日，應收帳款總額為 380 萬美元，相較於截至 2025 年 12 月 27 日的 520 萬美元。第一季末存貨增加至 710 萬美元，反映為支援我們在搬遷期間的銷售而提高產量；相較之下，會計年度開始時為 560 萬美元。此一存貨成長是可接受的，因為它將使我們在過渡至新廠房期間仍能持續出貨並創造營收。轉向負債端，應付帳款及應計費用於第一季末合計為 390 萬美元，相較於截至 2025 年 12 月 27 日的 430 萬美元。

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

接下來 Brian 將就本期表現與展望提供更深入的說明。

Thank you, Chuck.

謝謝你，Chuck。

Chuck has discussed our margins a bit. I'd like to address the other topic that may be on people's minds, which is our move to a new manufacturing location. The bottom line is that facility review is taking longer than we initially anticipated primarily related to the complexity of our needs.

Chuck 已稍微談到我們的毛利率。我想談談另一個大家可能關心的議題，也就是我們搬遷至新的製造地點。總結來說，廠址評估所花的時間比我們最初預期更久，主要是因為我們需求的複雜性。

At this point, we're down to reviewing the top candidate sites that best fit our various requirements, particularly as it pertains to the potential building fit-up parameters, including power requirements, industrial gas supply, floor space, et cetera. We continue to plan for the move as well and we expect to have an update.

目前，我們已縮小到審查最符合各項需求的幾個候選地點，特別是與潛在建物整備（fit-up）參數相關者，包括電力需求、工業氣體供應、樓地板面積等。我們也持續規劃搬遷，並預期將會有更新。

Transition timing in the near future. However, continue to move through our current lease runs through February of 2028, providing outfitted appropriately, then move too quickly and make a poor decision. This processes improving manufacturing efficiency and growing the company. We're committed to keeping our investors posted in the coming weeks and months.

在不久的將來更新過渡時程。然而，我們目前的租約將持續至 2028 年 2 月，前提是能適當整備，因此我們不會為了趕進度而過快搬遷、做出不佳的決策。此一流程有助於提升製造效率並推動公司成長。我們承諾在未來數週與數月持續向投資人更新進展。

On other topics, the SBIR and STTR programs have now been fully reauthorized by Congress, and instead of their typical authorization increment of one year, this time congressional reauthorization carries through fiscal 2031, providing a long runway of clarity and certainty. Although there are some modifications to these programs, the core tenets remain unchanged.

在其他議題方面，SBIR 與 STTR 計畫已由國會完成全面重新授權；不同於以往通常僅授權一年，這次的國會重新授權將延續至 2031 會計年度，提供更長期且明確、確定的可見度。雖然這些計畫有一些調整，但核心原則仍維持不變。

We previously mentioned that our ongoing programs continued to be funded and our funded work continued even before this latest congressional action, but new research topics are now being released and we're able to bid on new work.

我們先前提到，即使在這次最新的國會行動之前，我們進行中的計畫仍持續獲得資金支持、已獲資助的工作也持續推進；而現在新的研究主題已開始發布，我們也能競標新的工作。

Also, the proposals we're submitting now or have submitted in the past are also being reviewed. We will continue to use these programs to enhance our R&D efforts, expand our market opportunities and drive growth over the long-term.

此外，我們目前正在提交或過去已提交的提案也正在審查中。我們將持續運用這些計畫來強化研發投入、擴大市場機會，並在長期推動成長。

Work continues on our funded programs including radiation shielding, energy storage for long-range missiles, and the controlled fragmentation 40-millimeter warheads made from tungsten alloys.

我們已獲資助的計畫仍在持續進行，包括輻射屏蔽、長程飛彈的能源儲存，以及以鎢合金製成的 40 毫米可控破片彈頭。

Additionally, the Navy SBIR office recently executed its option to extend our Phase I program related to amphibious combat vehicles. This provides us with $100,000 of additional funding and extends the program for six months starting in June. We will continue to define methods of reducing the weight of the ACV with proposals that include potentially incorporating our HybridTech Armor as ballistic protection for the vehicle in place of the steel plates currently used.

另外，海軍 SBIR 辦公室近期已行使選擇權，延長我們與兩棲戰鬥車（ACV）相關的第一期（Phase I）計畫。這將為我們帶來額外 10 萬美元的資金，並自 6 月起將計畫延長 6 個月。我們將持續界定降低 ACV 重量的方法，並提出包含可能以我們的 HybridTech Armor 作為車輛彈道防護、取代目前使用的鋼板等方案。

The Navy's decision regarding potential phase two funding will be made at a later date. While funded research continues to bring in new opportunities, there has been some recent softening of product deliveries, particularly in metal matrix composites within our overall book of business. However, while the lumpiness of revenue in this market is something we're very familiar with, our backlog and order intake remain strong.

海軍對於是否提供第二期（Phase II）資金的決定將於日後作出。雖然受資助研究持續帶來新機會，但近期產品交付出現些許趨緩，特別是在我們整體業務組合中的金屬基複合材料方面。然而，儘管此市場的營收波動性（lumpiness）是我們非常熟悉的現象，我們的在手訂單與接單動能仍然強勁。

As one example, we recently booked a $4 million contract for Hermetic Packaging. We will begin shipments very soon and expect to fulfill this contract in less than 12 months. This order is a nice win for us as it is a single SKU and a product we're familiar with producing, though historically in small quantities. Our fielding of proprietary ALMAX material continues to pick up speed as we are now putting more material samples into the hands of interested customers in various markets and discussing potential opportunities with them.

例如，我們近期取得一份 400 萬美元的氣密封裝（Hermetic Packaging）合約。我們將很快開始出貨，並預期在 12 個月內完成履約。這筆訂單對我們而言是一次不錯的勝利，因為它是單一 SKU，且是我們熟悉的產品，儘管過去多為小量生產。我們專有的 ALMAX 材料導入（fielding）持續加速，我們正將更多材料樣品交到各市場有興趣的客戶手中，並與他們討論潛在機會。

Also, we recently shipped our first small order for tungsten alloy components made using our proprietary Quickset Injection Molding Process. In this case, this was an order that we received in March and fulfilled promptly in April. The underlying technology is one we've used for many years in the production of our core metal matrix composite products. As you may recall, we're already applying this technology to the ongoing Army Phase II program to provide 40 millimeter controlled fragmentation warheads.

此外，我們近期也出貨了第一筆小額訂單，內容為使用我們專有的 Quickset 注射成型製程製作的鎢合金零組件。在此案例中，這筆訂單於 3 月收到，並於 4 月迅速完成交付。其底層技術是我們多年來用於核心金屬基複合材料產品生產的技術。如各位所記得，我們也已將此技術應用於進行中的陸軍第二期（Phase II）計畫，以提供 40 毫米可控破片彈頭。

Now, outside of the SBIR work, we've engaged with a commercial customer who needed tungsten alloy components with features that cannot be cost effectively produced by other manufacturing methods. Our QuickSet Injection Molding Process successfully produces the desired size and features to satisfy the contract. This is our first such commercial order and we're optimistic about the future of these capabilities for various industrial opportunities as well as military applications.

目前，在 SBIR 工作之外，我們也與一位商業客戶合作，其需要具備某些特徵的鎢合金零組件，而這些特徵無法以其他製造方法具成本效益地生產。我們的 QuickSet 注射成型製程成功製作出符合合約需求的尺寸與特徵。這是我們第一筆此類商業訂單；我們對這些能力在各種工業機會以及軍事應用上的未來發展持樂觀態度。

This win is closely aligned with our strategic objective of continuing to build out our product portfolio based on our unique intellectual property, particularly related to metals, ceramics, and composites. In addition, we remain optimistic about the possibility of new HybridTech Armor orders. Kinetic Protection advises us that new contracts supporting the US Navy are anticipated in the latter half of the current calendar year.

這項勝利與我們的策略目標高度一致：持續以我們獨特的智慧財產為基礎擴充產品組合，特別是在金屬、陶瓷與複合材料相關領域。此外，我們對於取得新的 HybridTech Armor 訂單的可能性仍保持樂觀。Kinetic Protection 告知我們，預期在本曆年下半年將出現支援美國海軍的新合約。

As a reminder, whereas our orders in the 2021 to 2024 timeframe provided protection for aircraft carriers, the potential new business would be for a small quantity of US Navy destroyers. Congressional funding has already been secured to implement ballistic shields on a handful of these vessels. Detailed contract negotiations are expected to begin soon, and we look forward to returning to this important market.

提醒一下，我們在 2021 至 2024 年期間的訂單是為航空母艦提供防護，而潛在的新業務將是針對少量美國海軍驅逐艦。國會資金已到位，用於在其中數艘艦艇上部署彈道防護盾。預期很快將開始詳細的合約談判，我們也期待重返這個重要市場。

In summary, we continue to be upbeat about 2026 and beyond. While the new facility relocation is taking a bit longer than anticipated, we have not wavered from our goal of finding and occupying the best site possible to position the company for faster growth as well as improved bottom line results. Demand for our products remains strong and we're actively finding and bidding on new opportunities every month. The future is bright and CPS is transforming into a larger, broader-based technology organization to meet the advanced, unique needs of our clients today and tomorrow.

總結來說，我們仍對 2026 年及其後的前景保持樂觀。雖然新廠房搬遷所需時間比預期稍長，但我們從未偏離目標：尋找並進駐最佳據點，以使公司能夠更快速成長並改善最終獲利表現。我們產品的需求依然強勁，我們也在每個月積極尋找並投標新的機會。未來一片光明，CPS 正在轉型為規模更大、基礎更廣的科技型組織，以滿足我們客戶在今天與明天的先進且獨特需求。

Jenny, we can now open the call for questions.

Jenny，我們現在可以開放提問。

(Operator Instructions)

(接線員指示)

Chip Moore, Roth.

Chip Moore，Roth。

Thanks, Chuck, and congrats, Chris, for joining in the CFO role.

謝謝你，Chuck，也恭喜 Chris 加入並擔任 CFO 一職。

I guess, maybe start there. I guess, Chris, just, it seems like your background is very well aligned with what CPS is doing, but just maybe expand on that and what you're excited about.

我想也許就從這裡開始。Chris，我想你的背景看起來與 CPS 正在做的事情非常契合，但能否再多談談這點，以及你最感到興奮的是什麼？

Yes, thank you, Chip. I'm very excited to be joining CPS.

是的，謝謝你，Chip。我非常興奮能加入 CPS。

I see a strong company with a good record and has tremendous opportunities in front of it and opportunities that aren't afforded to most other companies significant challenges that I see Bryan, Chuck and the investment management team are focusing on the right area to continue to improve the financial performance of the company and I'm really looking forward to helping that happen.

我看到的是一家實力堅強、紀錄良好且面前擁有巨大機會的公司；而且這些機會並非多數公司都能擁有。儘管我也看到一些重大的挑戰，但我認為 Bryan、Chuck 以及投資管理團隊正聚焦在正確的領域，持續提升公司的財務表現，我也非常期待能協助促成這些成果。

Great. Look forward to working with you.

太好了。期待與你合作。

And Brian, I think on your commentary, it sounds like demand environment remains quite healthy. Just maybe expand on some of the order lumpiness you saw this quarter, and I think you called out MMC in particular was maybe a little softer. Is this just timing or just sort of lingering into the current quarter? Or how are you thinking about sort of the forward view there?

另外 Brian，我想就你剛才的評論來看，需求環境似乎仍相當健康。能否再談談你們本季看到的訂單波動性？我記得你特別提到 MMC 可能稍微疲弱一些。這只是時點問題，還是會延續到本季？你對未來展望是怎麼看的？

Yeah, there's always some variance in revenue, and we saw that in Q1. We have a strong order book going forward across the board. And I mean, the reality is that 2025 was a strong year for us. Q1 would have been the top revenue year of 2024. Every quarter of 2024 was below $6 million, I believe. So the upward march will continue.

是的，營收總會有一些波動，我們在第一季也看到了。展望未來，我們各業務線的訂單能見度都很強。而且現實是，2025 年對我們來說是很強勁的一年。第一季的營收若放在 2024 年，會是全年最高的一季。我相信 2024 年每一季都低於 600 萬美元。所以這個向上的趨勢會持續。

We're not pleased with these numbers, but we know there's strength ahead of us. And part of it is the inventory build as well. That's now revenue waiting to be shipped, which will with the implementation of the move to keep customers satisfied for the views where we are able to do that. Of course, that's not always the case. But places where we can build inventory. Our inventory grew more in Q1 than it did in all of 2025. So it stepped up significantly, which is positioning us well for the upcoming move.

我們對這些數字並不滿意，但我們知道前方仍有強勁動能。其中一部分也與庫存建立有關。那基本上是等待出貨、尚未認列的營收；而在搬遷執行過程中，為了在我們能做到的範圍內維持客戶滿意度，這會有所幫助。當然，並非所有情況都能如此。但在我們能夠建立庫存的地方，我們第一季的庫存增加量比 2025 年全年還多。因此庫存明顯提升，這讓我們為即將到來的搬遷做好了更好的準備。

Yeah, no, that's fair. And we'll look forward to more details there. It sounds like you're narrowing things down and we should expect something pretty soon. I guess in some of the other areas, what are you excited about? I think HybridTech Armor coming back, it sounds like high degree of confidence with kinetic. What's the potential? It sounds like it's a smaller opportunity maybe initially, but potential for that to grow as well. And then I believe you've got some Armor potential in the SBIR program as well.

了解，這樣說很合理。也期待你們提供更多細節。聽起來你們正在縮小選址範圍，我們應該很快就會看到消息。那在其他領域方面，你最感到興奮的是什麼？我想 HybridTech Armor 回歸，聽起來你們對 kinetic 的信心很高。它的潛力如何？聽起來一開始可能是較小的機會，但也有成長空間。另外我相信你們在 SBIR 計畫中也有一些 Armor 的潛在機會。

Yeah, that's right. The congressional funding is allocated toward the destroyers, and as I mentioned, that contract negotiations will be resolved over the next several months. So we're optimistic about that. As far as the destroyer class, we've known for quite a while that key Navy personnel are interested in applying the HybridTech Armor to those needs. So this, we kind of view as the foot in the door. We don't expect a large number of vessels to be funded in this initiative, but it opens the door to later opportunities as well. And yeah, the amphibious vehicle, effectively the Navy is paying us to review opportunities to remove the weight of a sort of a large hollow steel wheeled vehicle.

是的，沒錯。國會撥款是配置給驅逐艦的，正如我提到的，合約談判會在接下來幾個月內解決。所以我們對此感到樂觀。就驅逐艦級別而言，我們早就知道海軍的關鍵人員有興趣將 HybridTech Armor 應用在這些需求上。因此我們把這視為打開大門的第一步。我們不預期在這項倡議下會有大量艦艇獲得資金支持，但它也為後續機會打開了大門。另外，關於兩棲載具，實際上海軍正在付費讓我們評估機會，以降低一種大型中空鋼製輪式載具的重量。

There's just not a tremendous amount of opportunity for weight reduction that has steel panels. So our team, of course, sees those as opportunities to apply the Armor solution that we're very familiar with. So that's a significant opportunity for us that will play out over time. The execution of the phase one option to allow us to continue that work six months is obviously a very favorable signal from the Navy.

對於採用鋼板的結構而言，可減重的空間其實不算太大。因此我們團隊當然把這些視為應用我們非常熟悉的裝甲解決方案的機會。這對我們而言是一個重要機會，並會隨時間逐步展開。海軍執行第一階段選擇權、讓我們能再持續六個月的工作，顯然是一個非常正面的訊號。

And I think the last item that I touched on was the tungsten alloy shipment. That opens up a whole field of new opportunities for us with technology that we already have in-house. And the ability to make net shape components with certain features is fairly unique to quick set injection molding, which is what we have. If you look at metal injection molding pictures on the Internet, typically very small components. I mean, they're often pictured next to a penny to give you the scale.

另外我最後提到的是鎢合金的出貨。這為我們開啟了一整個新的機會領域，而相關技術我們本來就已在內部具備。而能夠製作具備特定特徵的近淨成形（net shape）零件，對於快速固化射出成形（quick set injection molding）而言相當獨特，而這正是我們所擁有的能力。如果你在網路上看金屬射出成形的圖片，通常都是非常小的零件。它們常常會放在一枚一分錢硬幣旁邊來呈現尺寸比例。

We're not limited in scale by that, so we can make much bigger pieces, which is evidenced by the 40 millimeter warhead. It's 40 millimeters across and roughly the same in height. So the much larger scale of components that we can produce, and we've already turned around that first order. So that's another strong signal for our future.

我們在尺寸規模上不受那樣的限制，所以我們可以做出更大的零件，40 毫米彈頭就是證明。它的直徑是 40 毫米，高度也大致相同。因此我們能生產的零件規模大得多，而且我們已經完成了第一筆訂單的交付。所以這也是我們未來的另一個強勁訊號。

That's very helpful. And I assume moving to the new facility will help enable a lot of this as well.

這非常有幫助。我也假設搬到新廠房將有助於推動其中許多事情。

Maybe just a last one for me, just on the cost side, inflation, raw materials, some of those things. You seen any impacts or how are you thinking about inputs?

我最後再問一個，關於成本端：通膨、原物料等因素。你們有看到任何影響嗎？或你們如何看待投入成本？

Yeah, I can take that.

是的，我可以回答這個。

So I think the material costs, especially on the metal matrix composite side, are not a large part of the cost profile. It's mostly. Labor overhead that that kind of thing So, there's a little bit of pressure from for example aluminum prices are up a little bit But you know in in terms of the cost of a metal matrix composite product it's maybe the increase is maybe you know half a percent or something along those lines and of course.

所以我認為材料成本，特別是在金屬基複合材料（MMC）這一端，並不是成本結構中的大宗。主要是。人工與間接費用之類的。所以，確實有一點壓力，例如鋁價略有上漲，但你知道，就金屬基複合材料產品的成本而言，漲幅可能也就大概半個百分點左右之類的，當然。

I'll say significant exceptions, we're taking orders for the next three to six months for the most part. And when those new orders come in, we certainly have the flexibility to adjust pricing if it's necessary. So I don't see that as a major issue, at least not at this point. I will say in terms of the tungsten that Brian was talking about.

我會說有一些顯著的例外情況，我們大多數是在接未來三到六個月的訂單。而當那些新訂單進來時，如有必要，我們當然有彈性調整定價。所以我不認為這是個重大問題，至少目前不是。我也會說到 Brian 剛才提到的鎢。

And prices have skyrocketed, that makes a difference. But at the same time, we don't have orders out for the next year that are problematic. Basically, we had that first small order that we placed and the market is the market, so we can price it accordingly. And actually, just to expand on that a little bit, as Brian mentioned, because manufacturing method reduces waste when it comes to tungsten. That is huge. We can make an item for using less tungsten than if somebody's going to machine a part out of tungsten, for example.

而鎢價已經暴漲，這確實會造成影響。但同時，我們並沒有已接到未來一整年的、會造成問題的訂單。基本上，我們下的第一筆小訂單已經在那裡了，而市場就是市場，所以我們可以據此定價。另外再稍微延伸一下，正如 Brian 提到的，因為我們的製造方法在鎢的使用上能降低浪費。這非常關鍵。舉例來說，相較於有人用鎢去機加工出一個零件，我們可以用更少的鎢來製作同樣的項目。

Joe Schicker, Private Investor.

Joe Schicker，私人投資人。

In your 10-K, you list three product areas, your MMC. Your hermetic packaging products and HybridTech Armor. Could you tell me which product area is growing the fastest at this particular time?

在你們的 10-K 裡，你們列了三個產品領域：你們的 MMC。你們的氣密封裝產品，以及 HybridTech Armor。你能告訴我，目前哪個產品領域成長最快嗎？

Well, I'll start with Armor. That's probably the easiest. We fulfilled an order for the aircraft carriers for the Navy from 2021 until about April of 2024. So today that Armor revenue is effectively zero, although there are some opportunities, particularly through our partner Kinetic Protection that we talked about a moment ago, which we anticipate that relatively small order for a small quantity of destroyer vessels. But today, in Q1, Armor revenue is effectively zero.

我先從 Armor 談起。這可能最容易。我們在 2021 年到大約 2024 年 4 月期間，完成了海軍航空母艦的訂單。所以目前 Armor 的營收實際上是零，雖然仍有一些機會，特別是透過我們剛才提到的合作夥伴 Kinetic Protection；我們預期會有一筆相對較小的訂單，供應少量驅逐艦船舶。但就今天而言，在第一季，Armor 營收實際上是零。

The other two product lines that we offer, we're seeing overall strength in both of those. There's a variety of dynamics in the metal matrix composite market that are pushing that to stronger places and hermetic packaging continues to grow for us as well. We don't always know. The end use for those hermetic packages, we know they generally go into aerospace and defense applications, and obviously there's been a lot of consumption in some of those places around the world, conflicts overseas, et cetera. Recently put that $4 million step up for that one SKU so we're seeing both I don't know if I would compare one to the other than we continue to see growth in both and that's the reason we need to find a larger facility.

至於我們提供的另外兩條產品線，我們在這兩者上都看到整體走強。金屬基複合材料市場有各種動態因素，正把它推向更強的態勢，而氣密封裝對我們而言也持續成長。我們不一定總是知道。這些氣密封裝的最終用途；我們知道它們通常用於航太與國防應用，而顯然在世界某些地區、海外衝突等等，這些領域的消耗量一直很大。最近針對某一個 SKU 做了 400 萬美元的增量提升，所以我們兩邊都在看到——我不確定是否要把兩者拿來比較——但我們確實持續看到兩者都在成長，這也是我們需要尋找更大廠房的原因。

Okay, great, okay now you may not want to answer this question but anyway I'll pose it could you give me a ballpark. Sales percentage of your three product lines like MMC is 20% this one blah, blah, blah.

好的，很好，那你可能不想回答這個問題，但我還是問一下：你能不能給我一個大概的區間。你們三條產品線的銷售占比，例如 MMC 佔 20%，這個佔多少之類的。

Yeah, so obviously I mentioned today Armor you know 0% and I would say that probably MMC versus hermetic packages is maybe 60%, 40%, 70%, 30%, something in the 60s% versus the 30s% kind of range, I think is probably fairly accurate. But there is a lot of function potentially there, which is why we can't give a specific answer on that.

好的，所以很明顯我剛才提到，今天 Armor 你知道是 0%，而我會說 MMC 相對於氣密封裝，可能是 60%/40%、70%/30%，大概在 60 幾％對 30 幾％這樣的區間，我認為應該相當接近。但其中可能有很多變動因素，這也是為什麼我們無法給出非常精確的答案。

Yeah. MMC is definitely wide on HPB, but they're both extremely significant to that.

是的。MMC 在 HPB 上的占比確實更高，但兩者都極其重要。

And then on top of that, they're not processing, but on top of that is a little bit of that SBIR funding, which is, now, over between, well, probably 5% of our revenue comes from SBIR funding, yeah, something like that.

此外，這不算在加工業務裡，但除此之外還有一點 SBIR 資金，而現在，大概有——嗯，可能我們約 5% 的營收來自 SBIR 資金，是的，大概是這樣。

Okay all right and final question is this have you ever thought about doing a YouTube interview with Tim Weintraut of Alpha Wolf Trading or potentially Martin Gagle of Radius Research to let individual investors like myself learn more about your company?

好的，明白，最後一個問題：你們有沒有想過和 Alpha Wolf Trading 的 Tim Weintraut，或是 Radius Research 的 Martin Gagle 做一個 YouTube 訪談，讓像我這樣的個人投資人能更了解你們公司？

We don't know those names in particular, but we are pursuing a number of ways to get our names out there and we'll certainly make a note of that from the reporting of this call because that's a barrier for us. I think there's a lot of investors on this call to this point. We probably were not aware of us maybe 12 months ago and we're going to continue in that direction for sure.

我們不特別認識這些名字，但我們正在嘗試多種方式提升曝光度，我們也會從這通電話的紀錄中把這點記下來，因為這對我們而言是一個障礙。我想目前這通電話上有很多投資人。你們大概在 12 個月前可能還不太知道我們，而我們肯定會持續朝這個方向努力。

(Operator Instructions)

（接線員指示）

Okay, I'm not seeing anyone else in the queue, so we have reached the end of our question-and-answer session, so I will now hand back over to Brian for any closing comments.

好的，我沒有看到佇列中還有其他人，因此我們已經到達問答環節的結束，我現在把時間交回給 Brian，請他做任何結語。

Great, thanks Jenny.

太好了，謝謝 Jenny。

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

感謝各位今天加入我們，也感謝大家持續關注 CPS Technologies。我們期待在第二季結束後再次與各位交流。在此期間，如果你有任何問題，請聯絡我們的投資人關係顧問。

Thank you.

謝謝。

Thank you very much. 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。今天的電話會議到此結束。你現在可以掛斷電話線，祝你有美好的一天。感謝你的參與。