CSP Inc (CSPI) 2024 Q2 法說會逐字稿

Good morning, everyone, and welcome to CSPI. Second Quarter Fiscal Year 2024 conference call. At this time, all participants are in a listen-only mode and the floor will be open for questions after the presentation. If you do have any questions, we ask that you limit them to one question and one follow-up question. In the interest of time thanks. If anyone should require operator assistance during this conference, please press star zero on your phone. Please note this conference is being recorded. I will now turn the conference over to your host, Michael Polyviou, you may begin.

大家早安，歡迎收看CSPI。2024 財年第二季電話會議。目前，所有參與者都處於僅聆聽模式，演講結束後將開放提問。如果您有任何疑問，我們要求您將問題限制為一個問題和一個後續問題。為了節省時間，謝謝。若會議期間有人需要接線生協助，請按手機上的星號零。請注意，本次會議正在錄製。現在我將會議交給主持人 Michael Polyviou，您可以開始了。

Thank you, Jenny. Hello, everyone, and thank you for joining us to review CSPI's fiscal 2024 second quarter results, which ended March 31st, 2024. 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 will then open the call for questions.

謝謝你，珍妮。大家好，感謝您與我們一起回顧 CSPI 2024 財年第二季（截至 2024 年 3 月 31 日）的業績。與我一起參加電話會議的還有 CSPI 執行長 Victor Dellovo 和 CSPI 財務長 Gary Levine。在 Victor 和 Gary 結束開場白後，我們將開始提問。

During the Q&A session, we ask participants to limit themselves to one question and one follow-up question and then re-queue if they have additional questions. Statements made by CSPI. As mentioned on today's call regarding the Company's business that are not historical facts may be forward-looking statements as that term is identified in federal securities law. The words may will expect, believe, anticipate, project, plan, intend, estimate and continue as those similar expressions are intended to identify forward-looking state. Forward-looking statements are not viewed as a guarantee of future performance or results.

在問答環節，我們要求參與者只提出一個問題和一個後續問題，如果有其他問題則重新排隊。CSPI 所做的聲明。正如今天的電話會議中所提到的，有關公司業務的非歷史事實可能是前瞻性陳述，因為該術語在聯邦證券法中有明確規定。可能會期望、相信、預期、預期、計劃、打算、估計和繼續等詞語，因為這些類似的表達旨在識別前瞻性狀態。前瞻性陳述不被視為對未來績效或結果的保證。

The Company cautions you that these statements reflect current expectations about the Company's future performance or events and are subject to several uncertainties, risks and other influences, many of which are beyond the company's control that may influence the accuracy of those statements and the projections upon which segment and statements are based. Factors that may affect the company's results include, but are not limited to.

本公司提醒您，這些聲明反映了對公司未來業績或事件的當前預期，並受到若干不確定性、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，可能會影響這些聲明的準確性以及分部和聲明所依據的預測。可能影響公司業績的因素包括但不限於。

The risks and uncertainties discussed in the Risk Factors section of the annual report on Form 10 K and the quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Forward-looking statements are based on information available at the time. Those statements are made and management's good faith belief as of the time with respect to future events, all forward-looking statements are qualified in their entirety by this cautionary statement at 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.

向美國證券交易委員會提交的 10K 表年度報告和 10-Q 表季度報告中的「風險因素」部分討論了這些風險和不確定性。前瞻性陳述是基於當時可用的資訊。這些陳述是管理階層對未來事件所做的善意信念，所有前瞻性陳述均受 CSPI 此警告聲明的全部限制。不承擔公開修改或更新任何前瞻性聲明的義務，無論其是否由於新資訊、未來事件或聲明日期之後的其他情況而發生。

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

說完這些，我將把電話轉給執行長 Victor Dellovo。維克多，請繼續。

Thanks, Michael, and good morning, everyone. Early this morning we announced our fiscal 2024 second quarter results, which once again demonstrates the return we are generating from our strategic shift towards higher-margin products and services.

謝謝，邁克爾，大家早安。今天早上，我們公佈了 2024 財年第二季的業績，這再次證明了我們向高利潤產品和服務的策略轉變所帶來的回報。

While we continue to invest in the branding, the launch of AZT protect we grew services revenue 23%, increase our gross margins 47% and realized fivefold increase in net income compared to a year ago fiscal second quarter. Our progress during the first half of the year, combined with the building of pipeline of AZT. position us for future success.

在我們繼續投資品牌建立的同時，AZT 保護的推出使我們的服務收入增長了 23%，毛利率提高了 47%，淨收入與去年同期相比增長了五倍。我們上半年的進展，結合AZT管道的建設。為我們未來的成功做好準備。

I'll start my review of the operations with our high-performance product or HPP, which is benefiting from the growing market interest in AZT offering during the quarter, HPP. contributed $2.5 million total revenue compared to $1.5 million in a year-ago quarter. Daisy T offering is changing how we operate and how the industry perceives CSPI.

我將從我們的高性能產品或 HPP 的營運情況開始回顧，該產品受益於本季市場對 AZT 產品 HPP 日益增長的興趣。貢獻了 250 萬美元的總收入，而去年同期為 150 萬美元。Daisy T 的產品正在改變我們的營運方式以及產業對 CSPI 的看法。

It generates significant attention and interest in industry events and conferences. And this interest is from some of the largest global corporations. Despite only bringing being months into easy to launch, we are building traction in the market and the level of customer enthusiasm remains high as does the new business, the pipeline.

它在行業活動和會議上引起了極大的關注和興趣。一些全球最大的公司也對此感興趣。儘管只花了幾個月的時間就輕鬆推出，但我們在市場上建立了吸引力，客戶的熱情仍然很高，新業務和管道也是如此。

During the quarter, we signed our largest contract for AZT., a multimillion dollar agreement with a global pharmaceutical company, which is deploying AGT across its global manufacturing platform and is in the process of taking over 40 facilities in from this growing cyber security threat to operational technology from hostile nations, terrorism and organized crime. Early this week, a case case history of HT. protect was published in the Journal, an award winning publication from Rockwell Automation. We can't begin to tell you how critical important this is to reach a subscriber base of over 50,000 a targeted audience that is committed to keeping up to date with leading edge messes trends and technologies that protect the in the Industrial Automation segment from cyber security attacks.

在本季度，我們與一家全球製藥公司簽署了價值數百萬美元的 AZT 合同，這是我們最大的合約。該公司正在其全球製造平台上部署 AGT，並正在接管 40 多個設施，以抵禦敵對國家、恐怖主義和有組織犯罪對營運技術日益嚴重的網路安全威脅。本周初，出現了一例HT病例。 《保護》刊登在羅克韋爾自動化獲獎刊物《期刊》。我們無法形容這一點對於吸引超過 50,000 名目標受眾有多重要，這些目標受眾致力於跟上保護工業自動化領域免受網路安全攻擊的前沿趨勢和技術。

A partnership with Racal is expanding as tomorrow. We are co-hosting a webinar titled cyber RX how to audit automatically protect Rockwell OT customers from today's cyber attacks. Gary Southwell, General Manager of CSPIRES. cyber security will be joining Thomas house life science, cyber and digital consulting at Rockwell Automation.

與 Racal 的合作關係正在擴大。我們正在共同舉辦一場網路研討會，主題為「網路 RX 如何自動審核保護 Rockwell OT 客戶免受當今的網路攻擊」。CSPIRES 總經理 Gary Southwell。網路安全將加入羅克韋爾自動化的 Thomas House 生命科學、網路和數位諮詢部門。

They will be discussing why the Purdue model, passive defense and a V-Flash NGAVI. not stopping the most dangerous attacks the webinar enables Rockwell to discuss the unique set of requirements that are needed to protect an organization's production applications attack surface and how our SAZT. protect plays a unique and critical role in meeting this need gap. Gary and Thomas will delve into the composition of supply chain attacks. And finally hear about a case study of how one of the world's largest pharmaceutical manufacturers uses ARIA AZT. protect in combination with Rockwell's Industrial Automation Suite to protect their environment and meet their challenging OT requirements.

他們將討論為什麼採用普渡模式、被動防禦和 V-Flash NGAVI。無法阻止最危險的攻擊，網路研討會使羅克韋爾能夠討論保護組織生產應用程式攻擊面所需的獨特要求以及我們的 SAZT 如何。保護在滿足這一需求差距方面發揮著獨特而關鍵的作用。加里和湯瑪斯將深入研究供應鏈攻擊的組成。最後，聽聽世界上最大的製藥商之一如何使用 ARIA AZT 的案例研究。與羅克韋爾的工業自動化套件相結合，保護他們的環境並滿足其具有挑戰性的 OT 要求。

As we outlined during our last call, we are leveraging the height of the trade show season in attended several several of the more intimate OTC focus events as we continue to further expand our brand presence within the IoT marketplace. This is part of our wider launch strategy, which is to engage with Fortune 500 companies to demonstrate the need for AZT. protect solutions we believe our approach is building interest with the slower sales cycle customers, and we are building a pipeline of opportunities focused on oil, gas, energy and water treatment plants.

正如我們在上次電話會議中所概述的那樣，我們正在利用貿易展覽季的高峰期，參加了幾次更私密的 OTC 焦點活動，同時繼續進一步擴大我們在物聯網市場的品牌影響力。這是我們更廣泛的發布策略的一部分，該策略旨在與財富 500 強公司合作，展示 AZT 的必要性。保護解決方案我們相信我們的方法正在引起銷售週期較慢的客戶的興趣，並且我們正在建立專注於石油、天然氣、能源和水處理廠的機會管道。

Just to name a few of the focus industry to increase shorter term revenue opportunities for AZT. protect. We implemented Phase two of our multiproduct sales strategy and hired three new salespeople to focus on middle market enterprise. As a result of this investment, we have doubled the dedicated AZAZT. sales team to further expand ACT protect market penetration. We are actively expanding exotics existing partnerships and exploring the creation of new ones.

僅舉幾個重點產業的例子，以增加 AZT 的短期收入機會。保護。我們實施了多產品銷售策略的第二階段，並僱用了三位新銷售人員，專注於中型市場企業。由於這項投資，我們的專用 AZAZT 數量增加了一倍。銷售團隊進一步擴大ACT保護市場的滲透率。我們正在積極擴大現有的合作夥伴關係並探索建立新的合作關係。

We see this part of our go-to-market strategy as a pathway to address the government segment as we are very close to signing one of the largest government focused distributors. We believe our direct sales team and the ability to use our partners' debt. He's going to significantly raise the profile of AZT. offering and build revenue opportunity. We also announced two major awards that ARIA cybersecurity wins, global infosec cyber security product award for ACT, protect at RSA and ARIA cybersecurity winds procedures globally.

我們將市場進入策略的這一部分視為解決政府領域的途徑，因為我們即將與最大的政府經銷商之一簽約。我們相信我們的直銷團隊和利用我們合作夥伴的債務的能力。他將大大提高 AZT 的知名度。提供並建立收入機會。我們也宣布了ARIA網路安全贏得的兩項重要獎項，即ACT在RSA保護中獲得的全球資訊安全網路安全產品獎和ARIA網路安全在全球範圍內推動程式發展獎。

Site cyber security protect award for ACT, protect the technology solution or the TS business continues to perform and contribute $11.2 million to a total revenue of $11.8 million a year ago's quarter. During the first fiscal quarter, we announced a 5-year dollar contract to provide managed services for a prominent Florida Public college one of the largest and most diverse institutions of higher education in the nation. We will deliver proactive monitoring management and support for the college critical technology infrastructure, including networks, security and private cloud services. The success of TS continues to be driven by our customers' increased use of implementation, installation and training capability. This component of our company remains quite robust as we added new UCaaS customers during the quarter.

站點網路安全保護獎為ACT、保護技術解決方案或TS業務持續表現良好，為去年同期1,180萬美元的總收入貢獻了1,120萬美元。在第一財政季度，我們宣布了一項為期 5 年的美元合同，為佛羅裡達州一所著名的公立學院提供託管服務，該學院是美國規模最大、最多元化的高等教育機構之一。我們將為學院關鍵技術基礎設施（包括網路、安全和私有雲服務）提供主動監控管理和支援。TS 的成功持續得益於我們的客戶越來越多地使用實施、安裝和培訓能力。由於我們在本季度增加了新的 UCaaS 客戶，我們公司的這一組成部分仍然保持相當強勁。

The TS pipeline is currently running above average. The cloud business currently has a record pipeline. This is highly this is a highly stable business as we have achieved a customer retention rate of more than 90%. The shipping business remains relatively unchanged from prior quarters. We did sign a new customer and we are looking forward to fostering a strong relationship over the coming years.

TS 管道目前運作狀況高於平均值。目前，雲端業務的管道數量創下了紀錄。這是一項高度穩定的業務，因為我們已經實現了超過 90% 的客戶保留率。航運業務與前幾季相比基本上沒有變化。我們確實簽下了一位新客戶，並期待在未來幾年建立牢固的關係。

As I stated on the prior call, we are currently working with one of the largest freight operators specializing in containerized ocean exports serving numerous ports worldwide with an extensive global agent network. We have in order for over [40] ships that are expected to be retrofitted over the next few months. And upon completion we expect to provide our managed services for each of these ships will add to our monthly recurring revenue.

正如我在之前的電話中所說，我們目前正在與最大的貨運運營商之一合作，該運營商專門從事集裝箱海運出口，通過廣泛的全球代理網絡為全球眾多港口提供服務。我們已經訂購了超過 [40] 艘船隻，預計將在未來幾個月內進行改裝。竣工後，我們預計為每艘船提供的託管服務將增加我們的每月經常性收入。

To summarize, with the successful launch of ZT. offering, I believe we have positioned the Company for sustained long-term growth and success. Our two businesses are growing. The pipelines are growing, and we will translate to increased revenue margins and profitability.

總結一下，ZT 的成功發布。我相信我們已經為公司長期持續的成長和成功做好了準備。我們的兩家公司業務都在成長。管道正在不斷增長，我們將轉化為增加的收入利潤和獲利能力。

Lastly, we believe the recent two-for-one stock split, increased illiquidity of CSPI. shares, and I believe it will provide greater opportunities for institutional participation, enhance shareholder value. At the time we are broadening our business prospects. We also believe the success of easy to launch and growing cybersecurity threats are allow us to now engage in an active investor relations strategy. We will keep you posted as we schedule conferences, participation and other related events.

最後，我們認為最近的二拆一股票分割增加了 CSPI 的流動性不足。相信這將為機構參與提供更多機會，提升股東價值。目前我們正在拓寬我們的業務前景。我們也相信，易於啟動和日益增長的網路安全威脅的成功使我們能夠現在參與積極的投資者關係策略。我們將及時通知您會議、參與和其他相關活動的安排。

With that, I will now ask Gary to provide a brief overview of our fiscal second quarter financial performance. Gary?

現在，我將請加里簡要介紹一下我們第二季的財務表現。加里？

Thank you, Victor. For the fiscal second quarter ended March 31st, we reported revenue of $13.7 million compared to $13.3 million in the year-ago fiscal second quarter our revenue performance was driven by a 23% growth of the service business. Our Q2 gross profit, which was greatly impacted by the higher service revenue, was $6.5 million or 47.3% of revenue compared to $5 million or 37.6% of revenue for the fiscal second quarter. Our engineering and development expenses was $726,000 compared to $858,000 as we reduced outside contractors and elected not to fill some open positions.

謝謝你，維克多。截至 3 月 31 日的第二財季，我們的營收為 1,370 萬美元，而去年同期的第二財季營收為 1,330 萬美元，我們的營收表現得益於服務業務 23% 的成長。我們第二季的毛利受到服務收入增加的極大影響，為 650 萬美元，佔營收的 47.3%，而第二財季的毛利為 500 萬美元，佔營收的 37.6%。我們的工程和開發費用為 726,000 美元，而之前為 858,000 美元，因為我們減少了外部承包商並選擇不填補一些空缺職位。

Our SG&A costs for the fiscal second quarter was $4.5 million compared to $3.9 million in the year ago fiscal second quarter. As we continue to invest in the ACT. offering, including building out the dedicated sales team and trade conferences participation, benefiting from the higher service revenues and higher margin. We recorded net income of $1.6 million or $0.16 per diluted common share for the fiscal second quarter ended March 31st, 2024, compared to net income of $0.3 million or $0.03 per diluted share for the fiscal second quarter ended March 31st, 2023.

我們第二財季的銷售、一般及行政費用為 450 萬美元，去年同期第二財季為 390 萬美元。我們將繼續對 ACT 進行投資。包括建立專門的銷售團隊和參加貿易會議，從而受益於更高的服務收入和更高的利潤。截至 2024 年 3 月 31 日的第二財季，我們的淨收入為 160 萬美元，即每股攤薄普通股 0.16 美元，而截至 2023 年 3 月 31 日的第二財季的淨收入為 30 萬美元，即每股攤薄普通股 0.03 美元。

The share amounts were had been retroactively restated to reflect the 2-for-1 stock split following the 2-for-1 stock split, we currently have 9.5 million shares outstanding. The Company had cash and cash equivalents of $27.1 million as of March 31st, 2024. We believe our robust financial position allows us to execute our multi-pronged sales and growth strategy for the AZT. offering, as well as product other product and service lines and financials financing, large customer agreements, which have been highly successful in the past for CSPI.

股票數量已追溯重述，以反映 2 比 1 的股票分割。在 2 比 1 的股票分割之後，我們目前有 950 萬股流通股。截至 2024 年 3 月 31 日，本公司擁有現金及現金等價物 2,710 萬美元。我們相信，我們強勁的財務狀況使我們能夠實施 AZT 的多管齊下的銷售和成長策略。提供其他產品和服務線、金融融資以及大客戶協議，這些協議在過去為 CSPI 帶來了巨大的成功。

Lastly, the Board of Directors approved the quarterly dividend of $0.03 per share payable on June 12th, 2024 to CSPI shareholders of record on the close of business at May 24th, 2024, with that, I will turn it over to the operator to take your questions.

最後，董事會批准於 2024 年 6 月 12 日向 2024 年 5 月 24 日營業結束時登記在冊的 CSPI 股東派發每股 0.03 美元的季度股息，之後我將把時間交給接線員來回答您的問題。

Thank you very much. At this time we will be conducting a question and answer session. If you would like to ask a question, please press star one on your phone keypad. A confirmation tone will indicate that your line is in there. You may press star two, if you would like to remove your question from the so any participants using speaker equipment, it might be necessary to pick up your handset before you press the keys. Please pause a moment. Thank you.

非常感謝。此時我們將進行問答環節。如果您想提問，請按下手機鍵盤上的星號 1。確認音將表示您的線路已接取。如果您想從使用揚聲器裝置的任何參與者中刪除您的問題，您可以按星號二，在按下按鍵之前可能需要拿起您的聽筒。請稍停片刻。謝謝。

Your first question is coming from Joseph Nerges, Segren Investments.

您的第一個問題來自 Segren Investments 的 Joseph Nerges。

Thank you. Good morning, guys. Have how's everything going? A couple of one question and one follow-up. You were you're going to cut down here. One one question I have going back at the last conference call you did Victor and you mentioned that we're close to rolling out a full production line version of AZT., which sorbent for the IT environment. Is that still in beta testing because that hasn't been released as of yet?

謝謝。大家早安。一切都好嗎？幾個問題和一個後續問題。你要在這裡砍伐。我有一個問題，回想一下上次電話會議，維克多，您提到我們即將推出 AZT 的完整生產線版本，這是 IT 環境的吸附劑。由於尚未發布，因此仍處於 Beta 測試階段嗎？

Correct. Yes, we'll lap it should be May we're doing some additional testing just to make sure everything is where it needs to be. But we have rolled it out on two to a few of the customers already with no issues.

正確的。是的，我們會對其進行檢查，五月我們會進行一些額外的測試，以確保一切都在應有的位置。但我們已經向兩到幾個客戶推出了該方案，沒有任何問題。

But we have some enhancements and stuff like that where we're developing right now.

但我們目前正在開發一些增強功能和類似的東西。

And how will that enhance what we already have out what that means -- what do we expect a net add on help us with?

這將如何增強我們已經擁有的功能－我們預期網路附加功能能為我們帶來什麼幫助？

We're in the OT space, right up updates and patches are not as important. And that's why our product kind of fits into where protected even without the patches in the IT space, they still wanted to do patching.

我們處於 OT 領域，更新和修補程式並不那麼重要。這就是為什麼我們的產品適合於即使沒有補丁也能受到保護的 IT 領域，他們仍然希望進行修補。

So we needed to allow for that, whether it's manual or automated. So that's where the enhancements came in the ITIT. side of it where like I said, in the OT space. Patching is not as a point of just because you can't really touch the machines in the IT, whether it's a Microsoft patch or any other, you know, Catcher that's out there.

因此我們需要考慮到這一點，無論是手動的還是自動的。這就是 ITIT 中的增強功能。就像我說的，它的一側在 OT 空間中。修補並不是因為你無法真正接觸 IT 中的機器，無論是 Microsoft 補丁還是其他任何補丁，你知道，Catcher 就在那裡。

We need to allow for that. And that's kind of where we've been developing and making sure it works with all the other products that are out there.

我們需要考慮到這一點。這就是我們一直在開發並確保它能與現有的所有其他產品相容的地方。

Okay, and just one quick follow-up here, and that is the I think the last time you mentioned with the chemical company are Fortune 500 chemical company where we have multiple sites. But basically it's the plant managers decision, whether you want to implement the ACT. protect well, you know, the oil sales and the only comes out now I can imagine that process I would make any plant manager would be do you really want to be the plant manager you decide to not implement and yet you were hacked at your plant. I mean that's sort of a clear end or is it going to be a real push X number have implemented it? They're not hacked, and he happens to be that the plant attacked our breach?

好的，這裡我只想快速跟進一下，我想您上次提到的化學公司是財富 500 強化學公司，我們在其中擁有多個工廠。但基本上，是否要實施 ACT 是由工廠經理決定的。保護好，你知道，石油銷售，現在唯一能想到的就是這個過程，我會讓任何工廠經理都覺得你真的想成為工廠經理嗎？你決定不實施，但你的工廠卻遭到駭客攻擊。我的意思是，這是一個明確的結局，還是說這將是一個真正的推動，X 號已經實施了它？他們沒有被駭客入侵，而他恰巧是工廠攻擊了我們的突破？

Yes, that makes sense. But sometimes common sense is not the thing that people use our time. So --

是的，這很有道理。但有時常識並不是人們會利用時間去做的事情。所以--

I certainly wouldn't mind adolescent I would put that in the back of their mind, that's nothing you know --

我當然不會介意青少年，我會把這放在他們的腦海裡，這沒什麼，你知道--

We always do. We always do.

我們總是這麼做。我們總是這麼做。

I'll open it up for other question for other people.

我將開放此連結供其他人提問。

Just a reminder that if you do have any questions, you can star one on your phone keypad now to join us. It doesn't look like we've got any further questions or we did. We've got a question from Brett Davidson, who's a private investor.

提醒一下，如果您有任何問題，您可以立即在手機鍵盤上加註星標來加入我們。看起來我們沒有其他問題了，或者說我們有其他問題。我們收到了私人投資者布雷特戴維森 (Brett Davidson) 的一個問題。

Good morning, gentlemen.

先生們，早安。

Morning, Brett.

早安，布雷特。

Regarding those up, have three new salespersons talks about targeting larger mid-market companies. Kind of what does that look like? Are these guys going out and at their locations on what exactly does it mean that they're targeting mid market companies.

關於這些，有三名新銷售人員談論針對較大的中型市場公司。那看起來是什麼樣子的呢？這些人是否會走出去，在他們的位置上，這究竟意味著什麼，他們的目標是中型市場公司。

When we talk all the mid to instead of looking at the top Fortune 500 companies, you know, the huge gas companies are huge that the companies that are definitely have a need by move really, really slow. We're trying to get into that next layer where they're not as big as large, and we'll be able to target them and hopefully decision make making can come a lot faster, pocs could go a lot faster. So and that's a combination of, you know, meeting some of the customers that trade shows on, you know, calling them on the phone, visiting them locally, whatever it takes. It's a combination of everything.

當我們談論所有中型企業而不是頂級財富 500 強企業時，你知道，大型天然氣公司規模龐大，這些公司肯定需要行動非常非常緩慢。我們正在嘗試進入下一層，在那裡它們不會那麼大，我們將能夠瞄準它們，並希望決策能夠更快地進行，pocs 可以更快地進行。所以這就是一種結合，你知道，會見一些參加貿易展覽會的客戶，你知道，給他們打電話，在當地拜訪他們，無論需要什麼。它是一切的結合。

And is there a pipeline right now regarding the Avici product is there, you know, the stuff that Tom is in process, that's not quite to the sales line --?

目前 Avici 產品是否有銷售管道？你知道，Tom 正在開發的產品還沒有進入銷售線。--？

Yes. So combination of that, yes, yes, it's a combination of we have current POCs going on where they're actually testing the product, whether it's in a lab or whether it's in their environment. And there's other ones where Mizuno data, the lower down the line where we started talking to them. And now it's about getting these large companies, all have big labs and getting the authorization and getting the security clearance and getting everything else that gets through.

是的。所以，是的，是的，這是我們目前正在進行的 POC 的組合，他們實際上正在測試產品，無論是在實驗室還是在他們的環境中。還有其他美津濃數據，我們開始與他們交談。現在的重點是讓這些擁有大型實驗室的大公司獲得授權、獲得安全許可，並獲得其他一切必要的許可。

So we could go into the lab and get set up. You know, that's a process, a lot of paperwork, a lot of contracts, but getting into these large opportunities. That's what we've been focusing on. And we're using the automation partners like the Rockwell's of the world and other players that I can't mention to leverage their sales staff to ARM, they tried to get into the relationships that they already currently have.

這樣我們就可以進入實驗室並進行設定。你知道，這是一個過程，需要大量的文書工作、大量的合同，但才能獲得這些巨大的機會。這就是我們一直在關注的重點。我們正在利用自動化合作夥伴，例如羅克韋爾和其他我無法提及的參與者，來將他們的銷售人員引入 ARM，他們試圖建立他們已經擁有的關係。

So that's kind of why we brought into the big we're trying to work with the big security players that are out there also the levers the long term relationships they may have that can kind of move, as you know, a get a sense faster, you know, as a smaller company. CSPIO. on compete in are competing with the Apollo's and the name brands. And by leveraging those salespeople in the relationship and that they had for maybe years, we're able to have conversations with these large companies that might take us a year just to get a conversation going. We're able to have an immediate conversation within weeks and trying to get to the next level where POC.

所以這就是為什麼我們要與大型安全公司合作，他們可能擁有長期關係，這可以讓我們作為一家小公司更快地了解情況。加拿大太平洋國際政策研究所。競賽對象為阿波羅和名牌。透過利用這些銷售人員與我們建立的關係以及他們可能已經建立了多年的關係，我們能夠與這些大公司進行對話，而以前我們可能需要一年的時間才能開始對話。我們能夠在幾週內立即進行對話，並嘗試進入 POC 的下一個階段。

Is there a way to kind of measure that in like a dollar figure? Or is that more like a fool's errand point we're at and selling these things are is there a way to like measure this pipeline of potential deals?

有沒有辦法用美元數字來衡量呢？或者這更像是一個愚蠢的差事，我們所處的位置和銷售這些東西是否有辦法衡量這個潛在交易的管道？

And we have done some measuring internally, which I'm not willing to share. But we look at the initial opportunities based on the conversations we have, and we do have a pipeline that we're managing against some we have seen with some of the initial conversations started and we put in an estimation of X amount of dollars. And as the conversations went on, they've the pipeline actually increased based on other needs and other people we talk to them in the organization. So yes, we are now putting a pipeline in estimation of revenue and that we're managing internally based on the initial conversations that we're having with each and every organization.

我們也做了一些內部測量，但我不願意分享。但是，我們根據已進行的對話來審視最初的機會，並且我們確實有一個正在管理的管道，針對我們已經開始的一些初步對話，我們估算了 X 美元的金額。隨著對話的進行，他們實際上根據組織內的其他需求和我們與他們交談的其他人增加了管道。是的，我們現在正在建立一個收入估算管道，並且根據我們與每個組織進行的初步對話進行內部管理。

Hey, thank you very much. Your next question is coming from Mike Price. He's a private investor. Mike, your line is live.

嘿，非常感謝。您的下一個問題來自麥克·普萊斯。他是一位私人投資者。麥克，你的線路已通。

Thank you. Good morning and thanks for taking my question here. And I know that you want to have wider distribution of shares and shareholders, but with a $120 million market cap and what you paid in front of you with ACT. and having $27 million in cash, it seems like there's room to be buying shares.

謝謝。早上好，感謝您在這裡回答我的問題。我知道您希望有更廣泛的股份和股東分配，但市值為 1.2 億美元，而且您之前用 ACT 支付過這些費用。並且擁有 2700 萬美元的現金，似乎還有購買股票的空間。

I've asked this question each of the last three conference calls and you have the authorized shares, but you haven't bought any shares. Any thoughts along those lines?

我在過去三次電話會議中都問過這個問題，你擁有授權股份，但你還沒有買任何股份。有類似這樣的想法嗎？

Yes, you know, over the last quarter, or two when the stock was, you know, higher than it is currently, we didn't see the need. But as at this, this price level, we are definitely considering supporting it in buying shares in the upcoming quarter.

是的，你知道，在過去一兩個季度，當股價高於目前水準時，我們並沒有看到這種必要。但就目前的價格水平而言，我們肯定會考慮在下一季購買股票來支持它。

Thank you very much. Your next question is coming from Sergio Heiber, Heiber Research. Sergio your line.

非常感謝。您的下一個問題來自 Heiber Research 的 Sergio Heiber。塞爾吉奧，你的台詞。

Hi, good morning. Guys and congratulations on a huge improvement on the bottom line. I think you gave investors a head fake in looking at the reaction today to the news that investors are used to seeing improvements on the top line and not the bottom line. So I think that that's fantastic that you're concentrating on that. And I was wondering if you can I'll give us some color on bundling area with the major our security products, like, for example, with Palo Alto.

嗨，早安。夥計們，祝賀你們在底線上取得了巨大的進步。我認為，從今天的新聞反應來看，投資人似乎誤以為，投資人習慣看到營收的成長，而不是利潤的成長。所以我認為你專注於此真是太棒了。我想知道您是否可以為我們提供有關主要安全產品捆綁區域的一些信息，例如與 Palo Alto 的捆綁。

That is definitely an option. We do compliment, you know, if it was a Palo Alto or CrowdStrike or any of the other players we can work in conjunction with all of them, especially where some summer they have their own licenses in the XP. world or Windows seven that they may not be supporting. We can definitely take over any system that's running an older version on some of the customers. They love the power of a CrowdStrike or whoever they're using, they can continue using it and will work side-by-side if they see us as a product that they want to fully implement across the platform.

這絕對是一個選擇。我們確實讚揚，你知道，如果是 Palo Alto 或 CrowdStrike 或任何其他參與者，我們可以與他們合作，特別是在某些夏天他們在 XP 中擁有自己的許可證。世界或 Windows 7，他們可能不支援。我們絕對可以接管某些客戶運行的舊版本系統。他們喜歡 CrowdStrike 或他們正在使用的任何產品的強大功能，他們可以繼續使用它，如果他們將我們視為他們想要在整個平台上全面實施的產品，他們就會並肩工作。

We'll be more than happy to take all the business. So yes, we are we are not looking to rip and replace any other major players out there on it at this stage of the game.

我們非常樂意承接所有業務。所以是的，在遊戲的這個階段，我們並不打算取代任何其他主要參與者。

Super went up bundle directly so that it sold, like, for example, out of will include your the area with the Palo Alto products.

超級套裝直接出售，例如，它將包括您所在地區的 Palo Alto 產品。

I would love to get that relationship going, if you have any contacts. Could that could how do that, please let us know.

如果您有任何聯絡方式，我很樂意建立這種關係。請問該如何做？請告訴我們。

So you have you have a contract with an unnamed company, which I think is Palo Alto, and that's why I'm asking I know you can't answer because so I'll go onto another question. Can you talk about why the dividend was decreased? Thanks.

所以你與一家未透露姓名的公司簽訂了合同，我認為是帕洛阿爾托，這就是我問的原因，我知道你無法回答，所以我將轉到另一個問題。能談談為什麼股息減少嗎？謝謝。

Well, yes, we looked at it from the standpoint that if we took the shares in, that would have been at really at [$0.025].

嗯，是的，我們從這個角度來看，如果我們收購股份，那實際上[0.025 美元]。

So yes, so we went to $0.03.

是的，所以我們降到了 0.03 美元。

Okay. And are you going to be giving --?

好的。你會給--？

If you do have a news anymore such I am you can press star one and join back in the queue. Thank you, sir. Your next question is coming from Paul Skoladi, who is a private investor pool. Your line is live.

如果您還有其他新聞，例如我，您可以按星號並重新加入隊列。謝謝您，先生。您的下一個問題來自私人投資者池 Paul Skoladi。您的線路已通電。

Hello, gentlemen. Two quick questions. First of all, we constantly see in the news of the government warning against threat that's against utilities, water utilities, all utilities. Can you give us some color on are we approaching this industry? Have we approached the industry? Are we are getting traction on? Are we getting the government aware that we have one solution to what they're warning about.

各位先生，大家好。兩個簡單的問題。首先，我們不斷在新聞中看到政府警告，警惕針對公用事業、水務設施和所有公用事業的威脅。您能否向我們介紹一下我們正如何進入這個行業？我們是否已經接觸過該行業？我們得到推動了嗎？我們是否讓政府意識到我們有一個針對他們所警告的問題的解決方案。

To summarize, yes, on all of our parts, we I mentioned, you know, just a few moments ago that we are focusing on the energy, the water treatment, which we've done marketing outreaches to all of them. We've done we've talked to individuals that shows them. And you know, we are mentioned, I mentioned ourself very, very close to signing one of the largest government distributors out there that would allow us to do business directly with these are some these different agencies that would speed up the process because the distributor holds all the necessary contracts that would allow us to go to we'll move through the system as quickly as possible, let's put it that way.

總而言之，是的，就我們所有部分而言，我剛才提到，我們專注於能源、水處理，我們已經對所有這些領域進行了行銷推廣。我們已經和向他們展示這一點的個人進行了交談。你知道，我們提到過，我提到過我們自己非常接近與最大的政府分銷商之一簽約，這將使我們能夠直接與這些不同的機構做生意，這將加快這一進程，因為分銷商持有所有必要的合同，這將使我們能夠盡快完成系統，讓我們這樣說吧。

But yes, it's all over the news, you cannot not see it. It's definitely something we're we focused on some of the trade shows.

但是的，它在整個新聞中都有報道，你不可能看不到它。這絕對是我們在一些貿易展上關注的重點。

These folks show up there and we've had conversations with them but as I mentioned to your people, your people going out to the water utilities, if ithey will take a meeting absolutely on it, we're still believe it or not we're still in the world and nobody really goes to work any longer. It mostly everything is overdue. They may go in once once once a week, our twice a week. So a lot of the calls of are over Zoom, but those conversations are happening.

這些人出現在那裡，我們已經與他們進行了交談，但正如我對你們的人提到的那樣，你們的人去了水務部門，如果他們絕對會就此召開會議，我們仍然相信，不管你信不信，我們仍然在這個世界上，沒有人真正去工作了。幾乎所有事情都已經逾期了。他們可能每週去一次，或每週去兩次。因此，許多電話都是透過 Zoom 進行的，但這些對話仍在進行中。

Okay. And then last question with AZT with AZT, we haven't, but can you give us some visibility now that you've been in the market trying to with these large companies they take time. I mean, do you expect to be in this calendar in this fiscal year 2024 to be closing on AZ key contracts?

好的。最後一個問題是關於 AZT 的，我們還沒有，但是既然您已經進入市場並嘗試與這些大公司合作，您能否向我們介紹一下，他們需要時間。我的意思是，您是否預計在 2024 財年完成 AZ 關鍵合約？

Or do you think the sales cycle now is going to this is a longer-term story now that you've been in the marketplace or do you expect to start closing contracts? You closed some already. Should we expect to see in this year and you can't predict the future, but you're the CEO, do you expect to see AZ key contracts continue to be signed in this fiscal year?

或者您認為現在的銷售週期將會是一個長期的故事，因為您已經進入了市場，或者您是否希望開始簽約？您已經關閉了一些。我們是否應該期待在今年看到這種情況，儘管您無法預測未來，但您是首席執行官，您是否預計 AZ 關鍵合約會在本財年繼續簽署？

Absolutely in and of what magnitude do I cannot say for sure. But contracts Absolutely. We are signing contracts in and I know everyone gets excited when we put announcements out there, but not a major contracts I will announce, but there are other contracts that that we have closed that don't warrant in our public announcement. You know, it could be [100,000] or [50,000] or [10 times]. There are different levels of contracts that that we are closing on, but they don't warrant a public announcement. So the major ones that are in the millions in Ohio announced. But yes, there are contracts that that are closing and will continue to close of different levels. And if we had another major one then yes, I'll now announce it when the time is right.

絕對如此，至於程度如何，我無法確定。但絕對有合約。我們正在簽署合同，我知道當我們發佈公告時每個人都會很興奮，但我不會宣布重大合同，但我們已經完成的其他合同不值得我們公開宣布。你知道，它可能是 [100,000] 或 [50,000][10次]。我們正在簽訂不同級別的合同，但不需要公開宣布。因此，俄亥俄州宣布了數以百萬計的重大事件。但是，確實有一些合約正在結束，並將繼續以不同的程度結束。如果我們還有另一個重大消息，那麼是的，我會在適當的時候宣布。

Our next question is coming from Joseph Nerges, of Segren Investments. Your line is live.

下一個問題來自 Segren Investments 的 Joseph Nerges。您的線路處於通電狀態。

Yes. Just one follow-up on you mentioned the webinar tomorrow with Rockwell and then you mentioned the journal article that web Rockwell put out, will you be putting those on the website? Can we enhance access those on website?

是的。還有一個後續問題，您提到了明天與羅克韋爾一起舉行的網路研討會，然後您提到了羅克韋爾發布的期刊文章，您會把它們放到網站上嗎？我們能否增強網站上的存取權限？

Yes.

是的。

Okay,

好的，

I think you have the invite already that's out there, right. You can join the webinar tomorrow, right? And then the once we get a copy of the because the journal will last will definitely posted on the website that you can go in.

我想你已經收到邀請了，對吧。明天可以參加網路研討會，對嗎？然後，一旦我們得到一份副本，因為期刊將會持續存在，肯定會發佈在您可以訪問的網站上。

Thank you. Your next question is coming from Brett Davidson, who's a private investor. Brett Your line is live.

謝謝。您的下一個問題來自私人投資者布雷特戴維森 (Brett Davidson)。布雷特 您的線路已通電。

Yes, I guess I was getting a little long winded, so I didn't get the Raptor stuff. But getting back to that, what kind of pipeline or how you guys want to refer to it on. Can you just give some character there kind of what the size of these deals are potentially? Are we talking hundreds of thousands millions tens of millions or all of the above?

是的，我想我有點囉嗦了，所以我沒有得到猛禽的東西。但回到剛才的問題，你們想要什麼樣的管道或如何引用它。您能否簡單描述一下這些交易的潛在規模？我們談論的是數十萬、數百萬、數千萬，還是以上皆是？

Tens of millions, we don't have anything in the millions and hundreds of thousands we have on the pipeline that you have.

數千萬，我們在管道上擁有的數百萬和數十萬中沒有任何東西比得上你們。

Thank you very much. Just as a reminder, if you have any remaining questions, you can press star one on your phone. Your next question is coming from John Crodi, a private investor. John, your line is live.

非常感謝。提醒一下，如果您還有其他問題，可以按手機上的星號。您的下一個問題來自私人投資者約翰·克羅迪 (John Crodi)。約翰，你的線路已通。

Yes, thank you. Congratulations, guys. I really want to tell you that was great seeing the award you won, but more importantly, you put out a PR the other day that really has some great information. You mentioned the new industries you had won. And I was wondering if we could just get a little color on you had stated that you had one energy and utility as well as pharma manufacturing that we are aware of the pharma company. But the other three I knew and I knew that you were going after energy companies, especially with the show at Houston. Can you give any color as to what types of utility it was? And maybe what type of energy company was as well as manufacturing. Thank you.

是的，謝謝。恭喜你們，夥伴們。我真的很想告訴你，看到你贏得獎項真是太好了，但更重要的是，你前幾天發布的公關訊息確實很棒。您提到了您贏得的新興產業。我想知道我們是否可以稍微了解您所說的情況，您有一家能源和公用事業以及製藥製造公司，我們知道這家製藥公司。但我認識另外三個人，而且我也知道你們正在追逐能源公司，尤其是在休士頓的演出中。您能說明一下它是什麼類型的實用程式嗎？也許是什麼類型的能源公司以及製造業公司。謝謝。

On the manufacturing in the utilities and the energy or the oil and gas, I can't mention the names, but just dumb that just you know you, you know who they are. They're just some of the big oil that in grid companies that where we're talking to and we met it shows and getting POCs together and trying to get into their labs. So yes, we've met the shows have been really good to get us, you know, two in front of different companies and build some relationships a lot quicker. So we will continue to do the necessary shows that makes sense for us.

關於公用事業、能源或石油和天然氣製造業，我不能提及他們的名字，但你知道他們是誰。他們只是我們正在交談的電網公司中的一些大型石油公司，我們遇到了他們，他們展示了 POC，並試圖將 POC 集中到他們的實驗室中。所以是的，我們參加的這些節目確實很有幫助，讓我們能夠接觸不同的公司，並且更快地建立關係。因此，我們將繼續做對我們有意義的必要的演出。

Right, because it we are aware that the targets that they're coming after in the USB. and the operational infrastructure, electrical grid as well as pipelines. Those are the types of levels of quality we're talking in the industry. You mentioned that you're involved with? Right?

是的，因為我們知道他們在 USB 中追蹤的目標。以及營運基礎設施、電網和管道。這些就是我們在行業中談論的品質水平類型。您提到您參與了什麼？正確的？

Correct.

正確的。

Okay. Thank you.

好的。謝謝。

Thank you very much. Well, that appears to be the end of our question-and-answer session. I will now hand back over to Vik for any closing.

非常感謝。好吧，我們的問答環節似乎結束了。我現在將把一切結束工作交還給維克。

Thank you. As always, I want to thank you. Thank our shareholders for their continued interest and support. We are entering a period of increased activity and we look forward to sharing our progress in our fiscal 2024 third quarter in August until then be well, stay safe and enjoy the summer.

謝謝。一如既往，我要感謝你。感謝股東們的持續關注與支持。我們正進入一個活動增加的時期，我們期待在 8 月分享我們在 2024 財年第三季度的進展，在此之前祝您身體健康、注意安全並享受夏天。

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

非常感謝。今天的會議到此結束。此時您可以斷開您的電話線，祝您有美好的一天，感謝您的參與。