(CSPI) 2022 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the CSPi's Fourth Quarter and Fiscal Year 2022 Financial and Operating Results Conference Call.

女士們先生們，早上好，歡迎參加 CSPi 的第四季度和 2022 財年財務和運營業績電話會議。

(Operator Instructions)

（操作員說明）

It is now my pleasure to turn the floor over to your host, Michael Polyviou. Sir, the floor is yours.

現在我很高興將發言權交給主持人 Michael Polyviou。先生，地板是你的。

Thank you, Matthew. Hello, everyone, and thank you for joining us to review CSPi's fiscal fourth quarter and full year results, which ended September 30, 2022. With me on the call is Victor Dellovo, CSPi's Chief Executive Officer; and Gary Levine, CSPi's Chief Financial Officer. After Victor and Gary conclude their opening remarks, we'll then open the call for questions. Statements made by CSPi's management on today's call regarding the company's business that are not historical facts may be forward-looking statements as the term is identified in federal securities laws. The words may, will, expect, believe, anticipate, project, plan, intend, estimate and continue as well as similar expressions are intended to identify forward-looking statements.

謝謝你，馬修。大家好，感謝您與我們一起回顧 CSPi 截至 2022 年 9 月 30 日的第四財季和全年業績。與我通話的是 CSPi 的首席執行官 Victor Dellovo；和 CSPi 的首席財務官 Gary Levine。在 Victor 和 Gary 結束他們的開場白之後，我們將開始提問。 CSPi 管理層在今天的電話會議上發表的關於公司業務的非歷史事實的聲明可能是前瞻性聲明，因為該術語在聯邦證券法中被確定。可能、將、期望、相信、預計、項目、計劃、打算、估計和繼續以及類似的表達方式旨在識別前瞻性陳述。

Forward-looking statements should not be read as a guarantee of future performance or results. The company cautions you that these statements reflect current expectations about the company's future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond the company's control that may influence the accuracy of the statements and the projections upon which the segment and statements are based.

前瞻性陳述不應被解讀為對未來業績或結果的保證。公司提醒您，這些陳述反映了當前對公司未來業績或事件的預期，並受到許多不確定性、風險和其他影響的影響，其中許多因素超出了公司的控制範圍，可能會影響陳述和預測的準確性段和報表所基於的。

Factors that may affect the company's results include, but are not limited to, the risks and uncertainties discussed in the Risk Factors section of the annual report on Form 10-K and the quarterly report on Form 10-Q filed with the Securities and Exchange Commission.

可能影響公司業績的因素包括但不限於向美國證券交易委員會提交的 10-K 表年度報告和 10-Q 表季度報告中風險因素部分討論的風險和不確定性.

Forward-looking statements are based on the information available at the time those statements are made and management's good faith belief as of the time with respect to future events.

前瞻性陳述基於作出這些陳述時可用的信息以及管理層當時對未來事件的真誠信念。

All forward-looking statements are qualified in the entirety by this cautionary statement and CSPi undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, after the date thereof.

所有前瞻性陳述均符合本警示性聲明的全部條件，CSPi 不承擔在發布日期後公開修改或更新任何前瞻性陳述的義務，無論是由於新信息、未來事件或其他原因。

With that, I'll turn the call over to Victor Dellovo, Chief Executive Officer. Vic, please go ahead.

有了這個，我將把電話轉給首席執行官 Victor Dellovo。維克，請繼續。

Thanks, Michael, and good morning, everyone. This morning, we reported an exceptional finish to our fiscal year 2022. We were able to ship a sizable portion of our record fiscal Q3 backlog, which contributed to revenue growth of 67% in the fiscal fourth quarter compared to prior year quarter. At the same time, the TS business segment hit on all cylinders, and we achieved $0.31 per diluted common share in earnings for the fiscal year fourth quarter while continuing to generate new orders.

謝謝，邁克爾，大家早上好。今天上午，我們報告了 2022 財年的出色完成情況。我們能夠運送相當大一部分創紀錄的第三財季積壓訂單，這使得第四財季的收入與去年同期相比增長了 67%。與此同時，TS 業務部門全力以赴，我們在本財年第四季度實現每股攤薄普通股收益 0.31 美元，同時繼續產生新訂單。

As a result, we finished the year with a backlog at a near record level and $24 million in cash, a solid momentum across all product lines and services offerings as we entered fiscal 2023. When we last talked with you in August, I made a comment that our team had started to turn the corner on meeting the challenges presented by ongoing supply chain, inflationary pressure. While we still have challenges in our supply chain, we've been able to work around some of them.

結果，我們以接近創紀錄水平的積壓和 2400 萬美元的現金結束了這一年，這是我們進入 2023 財年時所有產品線和服務產品的強勁勢頭。當我們上次與您交談是在 8 月，我做了一個評論說我們的團隊已經開始扭轉局面，迎接持續供應鍊和通貨膨脹壓力帶來的挑戰。雖然我們的供應鏈仍然面臨挑戰，但我們已經能夠解決其中的一些挑戰。

During the past 1.5 years, the supply chain challenges have been a big factor behind the growth in our backlog in some of our critical components for our product and systems have taken a full year to be shipped. The fact that we have not lost a single order from our backlog during the period is a testimony of to the unique features and exceptional performance of our solutions as well as critical role they play for our customers.

在過去的 1.5 年中，供應鏈挑戰一直是我們產品和系統的一些關鍵組件積壓增長的一個重要因素，這些組件需要整整一年才能發貨。在此期間，我們沒有因積壓訂單而丟失任何訂單，這一事實證明了我們解決方案的獨特功能和卓越性能，以及它們為我們的客戶發揮的關鍵作用。

As our team work to elevate some of the most critical supply chain issues, we were able to accelerate deliveries and revenue growth. Our revenue growth during the fiscal fourth quarter was driven by our Technology Solutions or TS business and its managed service practice. We generated revenue of $15.8 million, an 80% increase from the prior year quarter. We are winning new customers while earning increased business from existing customers. The managed service practice, or MSP revenue grew 24.6% from the prior year quarter and was driven by a customers increase use of ARIA implementation, installation and training capabilities. The managed service practice growth during the quarter came from existing customers who rely on CSPi to meet critical systems needs. During recent quarters, we have experienced modest growth from existing customers so expanding business from these critical component is both welcome and exciting.

當我們的團隊努力解決一些最關鍵的供應鏈問題時，我們能夠加快交付和收入增長。我們在第四財季的收入增長是由我們的技術解決方案或 TS 業務及其託管服務實踐推動的。我們創造了 1580 萬美元的收入，比去年同期增長了 80%。我們正在贏得新客戶，同時從現有客戶那裡獲得更多業務。託管服務實踐或 MSP 收入較上年同期增長 24.6%，這是由於客戶增加了對 ARIA 實施、安裝和培訓能力的使用。本季度託管服務實踐的增長來自依賴 CSPi 來滿足關鍵系統需求的現有客戶。在最近幾個季度，我們的現有客戶實現了適度增長，因此從這些關鍵組件擴展業務既受歡迎又令人興奮。

At the same time, we also generate MSP revenue growth from our new customers who are initiating relationships with our team and this contribution to our financial performance is also highly valued. While our view of the cruise line business remains unchanged from the prior quarter, any upside during the year will be seen as a boost to the overall performance and our internal goals. We remain ready to pursue new opportunity as they arise as we have maintained the staffing need for this business as they have been reassigned to other projects within CSPi.

與此同時，我們還從與我們團隊建立關係的新客戶那裡獲得了 MSP 收入增長，這種對我們財務業績的貢獻也受到高度重視。雖然我們對郵輪業務的看法與上一季度保持不變，但年內的任何上行都將被視為對整體業績和我們內部目標的推動。我們隨時準備在新機會出現時尋求新機會，因為我們維持了該業務的人員配備需求，因為他們已被重新分配到 CSPi 內的其他項目。

Regarding the UCaaS practice, we secured additional UCaaS orders during the quarter, and the current pace is encouraging. Before I move on, I want to congratulate the TS team as CRN, a brand of the channel company named Technology Solutions to its 2022 solution provider 500 list. CRN's annual solution provider, 500 ranks North America, largest solution providers by revenue in serves as a gold standard for recognizing some of the channels most successful companies.

關於 UCaaS 實踐，我們在本季度獲得了額外的 UCaaS 訂單，目前的速度令人鼓舞。在我繼續之前，我要祝賀 TS 團隊作為 CRN，這是一家名為 Technology Solutions 的渠道公司的品牌，進入其 2022 年解決方案提供商 500 強名單。 CRN 的年度解決方案提供商 500 強排名北美，按收入計算最大的解決方案提供商，作為認可一些渠道最成功公司的黃金標準。

Our high-performance products, our HPP segment, which also impacted by ongoing supply chain issues during the quarter, reported revenue of approximately $0.9 million above fiscal Q3 and below the year ago fiscal Q4 amount. However, the story with the segment is momentum as we expanded this segment's backlog, and we believe we have entered a phase of increased customer interest and activity.

我們的高性能產品，我們的 HPP 部門，也受到本季度持續供應鏈問題的影響，報告的收入比第三財季高出約 90 萬美元，低於去年同期的第四財季金額。然而，隨著我們擴大該細分市場的積壓，該細分市場的發展勢頭強勁，我們相信我們已經進入了客戶興趣和活動增加的階段。

We believe fiscal 2023 is going to be an exciting year for the segment. During the quarter, we added 2 new ARIA customers a consistent level of performance over the past few quarters. I mentioned earlier that our new business pipeline continues to build, and we finished with a near record backlog at the end of the fiscal year. We had one large sale with a financing arrangement in the fourth quarter with a total payment of $12.8 million to be received in 3 installments with the last occurring in fiscal 2024.

我們相信 2023 財年將是該部門令人興奮的一年。在本季度，我們增加了 2 個新的 ARIA 客戶，與過去幾個季度的業績水平保持一致。我之前提到過，我們的新業務渠道在繼續建設，我們在本財年結束時完成了接近創紀錄的積壓工作。我們在第四季度進行了一項帶有融資安排的大型銷售，總付款額為 1280 萬美元，將分三期收到，最後一期發生在 2024 財年。

This revenue was recorded net as a testimony to the strong balance sheet of the company, we will realize a sizable portion of the $24 million in cash -- $24 million in cash at September 30, 2022 for the cost of the sale in fiscal 2023 first quarter. We have successfully executed similar type of orders for this customer.

該收入被記錄為淨額，證明了公司強大的資產負債表，我們將實現 2400 萬美元現金中的很大一部分——2022 年 9 月 30 日的 2400 萬美元現金首先用於 2023 財年的銷售成本四分之一。我們已經為該客戶成功執行了類似類型的訂單。

A key objective for our team is to continue the migration of CSPi's revenue to higher-margin product and services. For the full year, we executed this goal as evidenced by our gross margins of 34.6%. Our gross margin for the fourth quarter was 36.2%, which resulted from a strong 24% revenue growth of our managed service practice and mix of business. Our overall revenue growth was the chief driver behind our net income for the quarter of $1.4 million or $0.31 per diluted share.

我們團隊的一個主要目標是繼續將 CSPi 的收入轉移到利潤率更高的產品和服務。全年，我們實現了這一目標，毛利率為 34.6%。我們第四季度的毛利率為 36.2%，這是由於我們的託管服務實踐和業務組合的收入強勁增長了 24%。我們的整體收入增長是本季度淨收入 140 萬美元或攤薄後每股收益 0.31 美元的主要推動力。

We also benefit from a favorable currency exchange, which Gary will review in a few moments. Back in August, we noted the pressure being put on our cost by inflationary forces in the tight labor market. This pressure led to increased wages and employment incentives. During the fourth quarter, we began to experience some relief from this pressure. Don't get me wrong, it's still there, but the upward pressure has abated somewhat. And we have been able to meet our staffing needs within our business model.

我們還受益於有利的貨幣兌換，Gary 稍後會對此進行回顧。早在 8 月，我們就注意到勞動力市場緊張的通脹力量給我們的成本帶來了壓力。這種壓力導致工資和就業激勵增加。在第四季度，我們開始從這種壓力中解脫出來。別誤會，它還在，只是上行壓力有所減弱。我們已經能夠在我們的商業模式中滿足我們的人員需求。

To summarize, we had a great finish to our fiscal year. Our strategy of focusing on higher-margin products and services that met customer demand is yielding solid progress each quarter. Despite converting some of the older backlog revenue, we increased the backlog from the third quarter. This demonstrates the strength of our offering, yet it also highlights our continued engagement and customer loyalty during this period since we have not lost a single order from the backlog.

總而言之，我們的財政年度圓滿結束。我們專注於滿足客戶需求的高利潤產品和服務的戰略每個季度都取得了穩步進展。儘管轉換了一些較舊的積壓收入，但我們從第三季度開始增加了積壓。這證明了我們產品的實力，但也凸顯了我們在此期間的持續參與和客戶忠誠度，因為我們沒有因積壓訂單而丟失任何訂單。

We have successfully transitioned our business during the unprecedented period, and today, we are an active player in the high-growth and margin business. And we believe we have the resources with all and the strategy to realize our potential. With that, I will now ask Gary to provide a brief overview of the fiscal fourth quarter financial performance. Gary?

我們在前所未有的時期成功地完成了業務轉型，如今，我們是高增長和高利潤業務的積極參與者。我們相信我們擁有所有的資源和實現我們潛力的戰略。有了這個，我現在請加里簡要概述第四財季的財務業績。加里？

Thank you, Victor. As Victor mentioned in his opening remarks, our fiscal fourth quarter revenue was $16.7 million, a $6.7 million or 67% increase over the year ago fiscal fourth quarter. We reported gross profits of $6 million or 36.2% of sales compared to $4.2 million or 41.7% of sales in the year ago fiscal fourth quarter.

謝謝你，維克多。正如 Victor 在開場白中提到的那樣，我們第四財季的收入為 1670 萬美元，比去年第四財季增長 670 萬美元或 67%。我們報告的毛利潤為 600 萬美元，佔銷售額的 36.2%，而去年同期第四季度為 420 萬美元，佔銷售額的 41.7%。

Service revenues grew 25% compared to the year ago fourth quarter and was up from our fiscal third quarter. Which is a combination of the growth in the MSP as well as a higher average selling price. Our engineering and development expenses for the fourth quarter were $865,000 compared to $700,000 in the year ago period.

與去年第四季度相比，服務收入增長了 25%，高於我們的第三財季。這是 MSP 增長和更高平均售價的結合。我們第四季度的工程和開發費用為 865,000 美元，而去年同期為 700,000 美元。

As we have discussed previously, the increase is primarily due to higher personnel costs, which include outside consultants. Our SG&A expenses in Q4 was $4.8 million, up $1 million from the year ago fiscal fourth quarter due to increased variable compensation and bonuses from hitting key operating objectives for the full year.

正如我們之前所討論的，增加的主要原因是人員成本增加，其中包括外部顧問。我們在第四季度的 SG&A 費用為 480 萬美元，比去年第四財季增加了 100 萬美元，原因是實現全年關鍵運營目標的可變薪酬和獎金增加。

We reported net income of $1.4 million in the fiscal fourth quarter or $0.31 per diluted share, common, compared with our net income which was net income of $0.8 million or $0.19 a share -- per diluted share for the fiscal 2021 fourth quarter.

我們報告的第四財季淨收入為 140 萬美元或攤薄每股收益 0.31 美元，而我們的淨收入為 80 萬美元或每股攤薄收益 0.19 美元 - 2021 財年第四季度的淨收入為每股攤薄收益 0.19 美元。

The 2022 fourth quarter results reflected a $0.9 million gain from the impact of foreign currency exchange rates, while the prior year period included a gain from the sale of discontinued operations of $0.5 million or $0.11 per diluted common share. We ended the fourth quarter and full year with cash and cash equivalents of nearly $24 million as of September 30, 2022, which was an increase of $4 million from September 30, 2021, primarily due to the receipt of an installment payment for a large financing order in the fiscal 2022 fourth quarter.

2022 年第四季度的業績反映了 90 萬美元的外匯匯率影響收益，而上年同期包括 50 萬美元的終止經營業務出售收益或每股攤薄普通股 0.11 美元。截至 2022 年 9 月 30 日，我們在第四季度和全年結束時擁有近 2400 萬美元的現金和現金等價物，比 2021 年 9 月 30 日增加了 400 萬美元，這主要是由於收到大筆融資的分期付款2022 財年第四季度的訂單。

During the fiscal year 2022, we purchased 22,000 common shares from the stock repurchase program. We have authorization to buy an additional 172,000 shares of CSPi common shares as of September 30, 2022. We continue to believe the shares at the current price level represent value, especially when you factor in the margin expansion we are generating and the growing backlog.

在 2022 財年，我們通過股票回購計劃購買了 22,000 股普通股。截至 2022 年 9 月 30 日，我們有權購買額外的 172,000 股 CSPi 普通股。我們仍然相信當前價格水平的股票代表價值，尤其是當你考慮到我們正在產生的利潤擴張和不斷增加的積壓時。

I also want to highlight that the Board of Directors approved the quarterly dividend of $0.03 per share, payable, January 6, 2023, to shareholders of record on the close of business on December 21, 2022.

我還想強調，董事會批准了每股 0.03 美元的季度股息，將於 2023 年 1 月 6 日支付給在 2022 年 12 月 21 日營業結束時登記在冊的股東。

Before I conclude my remarks, I want to highlight what Victor mentioned earlier, how we have had an opportunity to leverage the strength of the balance sheet to offer CSPi financing for customer orders. This is a twofold benefit for us that will enable us to accelerate the top line growth while attractive interest rates will allow us to achieve greater profitability.

在我結束髮言之前，我想強調 Victor 之前提到的內容，即我們如何有機會利用資產負債表的優勢為客戶訂單提供 CSPi 融資。這對我們來說是雙重好處，使我們能夠加速收入增長，同時有吸引力的利率將使我們獲得更大的盈利能力。

However, I want to stress this will not change our prudent expense management, and we will be vigilant to ensure that we have the resource to execute the multiyear growth strategy of transforming to a cybersecurity, wireless and managed service company.

然而，我想強調這不會改變我們審慎的費用管理，我們將保持警惕，以確保我們有資源執行轉型為網絡安全、無線和託管服務公司的多年增長戰略。

With that, I will turn it over to the operator to take your questions.

有了這個，我會把它交給接線員來回答你的問題。

(Operator Instructions)

（操作員說明）

Your first question is coming from Brett Davidson.

你的第一個問題來自布雷特戴維森。

I got a couple of questions. I wasn't able to keep up with that installment payment. So I got the balance sheet side of it, the income statement side of it, that was -- sales was booked in the fourth quarter?

我有幾個問題。我無法跟上那筆分期付款。所以我得到了它的資產負債表方面，它的損益表方面，那就是 - 銷售額是在第四季度入賬的？

Yes.

是的。

Okay. So that's already run through. So was that the final installment payment? Or are there additional payments coming?

好的。所以這已經貫穿了。那是最後的分期付款嗎？還是會有額外的付款？

The first installment payment will be in Q1 -- Q1 and then the remaining will be 1, 2 and 3 year. So it will be a month 13 and then month 25, let's say.

第一筆分期付款將在 Q1 -- Q1 之後，其餘的將在 1、2 和 3 年內支付。所以這將是第 13 個月，然後是第 25 個月，比方說。

Okay. So it'll -- you said it will be January 1, the next one?

好的。所以它會——你說是 1 月 1 日，下一個？

No, we had to pay it in full, next 60. And then the next, next October will be the next payment. And then the follow-on on October will be the final payment.

不，我們必須全額支付，下一個 60。然後下一個，明年 10 月將是下一次付款。然後 10 月的後續將是最後的付款。

Okay. And they're going to be similar amounts.

好的。他們將是相似的數量。

Correct. You take the $12 million divided by 3.

正確的。你將 1200 萬美元除以 3。

Got it. The ARIA products. I know that there's still some kind of supply chain impact. Did that impact the shipments of those? Or is that finally starting to ease?

知道了。詠嘆調產品。我知道仍然存在某種供應鏈影響。這是否影響了這些貨物的出貨量？還是終於開始緩和了？

Starting to ease. So you -- we should see some shipments in Q1.

開始緩和。所以你 - 我們應該在第一季度看到一些出貨量。

Got it. And do you have a ballpark of what the backlog on that is? We're talking a couple of million? Are we talking $8 million.

知道了。您是否大致了解積壓的工作是什麼？我們說的是幾百萬？我們說的是 800 萬美元嗎？

Yes, a couple of million. I think a total of it is like a little over $3 million total.

是的，幾百萬。我認為總計超過 300 萬美元。

Got it. And you said you're going to ship in Q1. Does that mean that all the products you have available to ship right now? Or it's just what schedules a ship in Q1 and you're going to be able to ship additional in the remaining quarters of the year?

知道了。你說你要在第一季度發貨。這是否意味著您現在可以發貨的所有產品？或者它只是在第一季度安排了一艘船，你將能夠在今年剩餘的幾個季度裡額外發貨？

Correct. Yes. It will go into Q1 and Q2.

正確的。是的。它將進入第一季度和第二季度。

Got it. All right. That's pretty much all I got. You guys have a good holiday, and we'll talk to you next quarter.

知道了。好的。這幾乎就是我得到的全部。各位假期愉快，我們下個季度再談。

Thanks, Brett. Have a great one. Happy holidays to you too.

謝謝，布雷特。有一個偉大的。也祝你節日快樂。

Your next question is coming from Joseph.

你的下一個問題來自約瑟夫。

You had a very good first quarter here or last quarter of last year. A couple of quick questions. One, the -- on the last conference call, you talked about expecting delivery or an October delivery time frame for that large $1.8 million government cybersecurity order. Is that still in line for October or past October, but was that delivered in the first quarter or is that being delayed?

你在這里或去年最後一個季度的第一季度非常好。幾個簡單的問題。第一，在上次電話會議上，您談到了 180 萬美元的政府網絡安全大訂單的預期交付或 10 月交付時間框架。這是否仍在 10 月或 10 月之後，但它是在第一季度交付還是被推遲了？

Yes. No, it's delivered in the first quarter.

是的。不，它在第一季度交付。

So it wasn't in the fourth. It will be reflected in the next report, the next first quarter.

所以它不在第四個。它將反映在下一份報告中，即下一個第一季度。

Yes.

是的。

Okay. That's great. An interesting point was your comment about the -- you're expecting an exciting year in the HPP division this year, hopefully. Am I assuming correctly that some of the excitement is generated from that webinar you did with NVIDIA back in June and maybe some progress on the amount of interest you had from that webinar.

好的。那太棒了。一個有趣的觀點是你的評論 - 你希望今年在 HPP 部門度過激動人心的一年。我是否正確地假設一些興奮是從您在 6 月份與 NVIDIA 一起舉辦的網絡研討會中產生的，並且可能是您對該網絡研討會的興趣程度有所提高。

I think it's a combination of a lot of sales activities that we're doing, not just from the NVIDIA. The stuff with those large organizations, as you know, Joe, take a while to get embedded into their product line. So we're making progress, but it's slow, but it's moving forward.

我認為這是我們正在進行的許多銷售活動的結合，而不僅僅是來自 NVIDIA。那些大型組織的東西，如你所知，Joe，需要一段時間才能融入他們的產品線。所以我們正在取得進展，但它很慢，但它正在向前發展。

Okay. So still working with on that -- from that webinar, the lead group of that, it just that takes a lengthy period of time is what you're saying.

好的。因此，仍在繼續努力——從那個網絡研討會開始，那個領導小組，你所說的只是需要很長時間。

Yes, they're NVIDIA's customers that we're talking with. So they're pushing the sales cycle more than we are. We're just a piece of the overall solution.

是的，他們是我們正在與之交談的 NVIDIA 客戶。所以他們比我們更能推動銷售週期。我們只是整體解決方案的一部分。

Well, that's all right. NVIDIA's got a lot of customers. Last -- again, in the last conference call, you mentioned about adding some channel partners or you're progressing on that level. Have we add any additional partners since the last conference call?

嗯，沒關係。 NVIDIA 有很多客戶。最後 - 再次，在上次電話會議中，您提到了添加一些渠道合作夥伴或者您正在那個級別上取得進展。自上次電話會議以來，我們是否添加了任何其他合作夥伴？

Not exactly sure, but I would say probably 3 to 5 new ones that we've been talking with. And I think 3 signed.

不太確定，但我想說我們一直在討論的可能是 3 到 5 個新的。我認為有 3 個簽名。

Okay. Also we're progressing on that level, too, even the channel partner Level.

好的。我們也在那個層面取得進展，甚至是渠道合作夥伴層面。

Yes.

是的。

Okay. And just I guess in the last conference call, you also mentioned that you thought that the E-2D royalty revenue would be included in the last quarter -- or the fourth quarter of last year. Was that the case there? Are we expecting any in the first quarter of this fiscal year?

好的。我猜在上次電話會議中，您還提到您認為 E-2D 特許權使用費收入將包含在最後一個季度 - 或去年第四季度。那裡是這樣嗎？我們對本財年第一季度有什麼期待嗎？

We had some in the fourth quarter, and we're expecting some more in the first and second quarter.

我們在第四季度有一些，我們預計在第一季度和第二季度會有更多。

Okay. So you're expecting more down the road. All right. Well, that's pretty good, it sounds pretty exciting. Hopefully, if we could solve the backlog quarters going forward will be a lot better than even this report, which was a very good quarter. So thanks a lot, again, guys. And again, have a good holiday.

好的。所以你期待更多。好的。嗯，這很好，聽起來很令人興奮。希望如果我們能夠解決積壓的問題，那麼未來的季度會比這份報告好得多，這是一個非常好的季度。非常感謝，再次，伙計們。再一次，祝你假期愉快。

(Operator Instructions)

（操作員說明）

That concludes our Q&A session. I will now hand the conference back to CEO, Victor Dellovo, for closing remarks. Please go ahead.

我們的問答環節到此結束。我現在將會議交還給首席執行官 Victor Dellovo 以作閉幕詞。請繼續。

Thank you. As always, I want to thank you -- thank our shareholders for their continued interest and support. Fiscal 2022 was not without its challenges, pandemic supply chain issues, inflationary pressure. Yet, we grew revenue and gross margins while ending the year with a record backlog and strong enough balance sheet to secure orders that will further drive our revenue and gross margins.

謝謝你。一如既往，我要感謝你——感謝我們的股東一直以來的興趣和支持。 2022 財年並非沒有挑戰、大流行供應鏈問題、通脹壓力。然而，我們增加了收入和毛利率，同時在年底以創紀錄的積壓和足夠強大的資產負債表獲得訂單，這將進一步推動我們的收入和毛利率。

Gary and I look forward to sharing our progress in fiscal 2023 first quarter operating results in February. Until then, enjoy the holiday season, be well, stay safe.

加里和我期待在 2 月份分享我們在 2023 財年第一季度運營業績方面取得的進展。在那之前，享受假期，身體健康，注意安全。

Thank you, ladies and gentlemen. This concludes today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

謝謝你們，女士們，先生們。今天的活動到此結束。此時您可能會斷開連接，並度過美好的一天。感謝您的參與。