CSP Inc (CSPI) 2026 Q2 法說會逐字稿

Good day, everyone. Welcome to CSPi's second quarter fiscal year 2026 conference call. (Operator Instructions) It is now my pleasure to turn the floor over to your host, Michael Polyviou. The floor is yours.

各位好。歡迎參加 CSPi 2026 會計年度第二季財報電話會議。(Operator Instructions) 現在我很榮幸把會議交給今天的主持人 Michael Polyviou。請開始。

Hello, everyone, and Kelly, thank you for joining us to review CSPi's financial results for the fiscal 2026 second quarter, which ended on March 31, 2026, as well as recent operating developments. Today 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. (Event Instructions)

各位好，Kelly，也謝謝你加入我們，一同回顧 CSPi 2026 會計年度第二季（截至 2026 年 3 月 31 日）的財務結果，以及近期的營運進展。今天與我一同參與電話會議的有 CSPi 執行長 Victor Dellovo，以及 CSPi 財務長 Gary Levine。在 Victor 與 Gary 完成開場致詞後，我們將開放提問。(Event Instructions)

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 those 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.

CSPi 管理層在今天電話會議中所做、關於公司業務且非歷史事實的陳述，可能構成聯邦證券法所界定的前瞻性陳述。「可能」、「將」、「預期」、「相信」、「預料」、「預測」、「計畫」、「打算」、「估計」與「持續」等字眼，以及類似用語，旨在識別前瞻性陳述。

Forward-looking statements should not be meant 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 several 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 the statements are based.

前瞻性陳述不應被視為對未來表現或結果的保證。公司提醒各位，這些陳述反映的是公司目前對未來表現或事件的預期，並受多項不確定性、風險及其他因素影響，其中許多超出公司控制範圍，可能影響陳述的準確性，以及相關部門與陳述所依據的預測。

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. 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. All forward-looking statements are qualified in their 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.

可能影響公司業績的因素包括但不限於：公司向美國證券交易委員會（SEC）提交之 Form 10-K 年度報告與 Form 10-Q 季度報告中「風險因素」章節所討論的風險與不確定性。前瞻性陳述係基於作出該等陳述時可得之資訊，以及管理層於當時就未來事件所持的善意信念。所有前瞻性陳述均在整體上受本警示聲明所限制；CSPi 不承擔在其後因新資訊、未來事件或其他原因而於該等陳述日期之後公開修訂或更新任何前瞻性陳述之義務。

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

接下來，我把電話會議交給執行長 Victor Dellovo。Victor，請開始。

Thank you, Michael, and good morning, everyone. CSPi returned to growth during our fiscal second quarter as our product sales grew 30% and our service business grew 7% over the prior fiscal year quarter. Our top line growth and bottom line improvement was driven by our U.S. Technology Solutions business and some large customer purchase orders. We did see a real pickup in the AZT PROTECT orders during the quarter with more than 10 of what we call land and expand orders with new customers.

謝謝你，Michael，各位早安。在我們的會計年度第二季，CSPi 重回成長軌道：產品銷售較去年同期成長 30%，服務業務較去年同期成長 7%。營收成長與獲利改善主要由我們的美國科技解決方案（U.S. Technology Solutions）業務，以及部分大型客戶採購訂單所帶動。本季我們也看到 AZT PROTECT 訂單明顯回升，新增客戶的「落地並擴張」（land and expand）訂單超過 10 筆。

This was double the amount of AZT PROTECT orders we signed in Q2 2025. Typically, these orders are used as a test at a single site by customer to make sure AZT PROTECT meets our claims and works within the customer's existing cybersecurity infrastructure, which I am happy to report has been the case every time. Then our team goes to work to expand our relationship with the customer through deployment at other sites. This phase of the process has taken longer than anticipated, largely due to evolving stakeholders' alignment and internal review requirements. For example, change within customer teams often require us to reengage and reestablish momentum, while some organizations seek additional validation from initial deployment sites.

這是我們在 2025 年第二季簽下的 AZT PROTECT 訂單數量的兩倍。通常，客戶會先在單一據點以這類訂單作為測試，以確認 AZT PROTECT 符合我們的宣稱，並能在客戶既有的資安基礎架構中運作；我很高興地報告，每一次都確實如此。接著，我們的團隊會著手透過在其他據點部署，來擴大與客戶的合作關係。這個階段所需時間比預期更長，主要原因在於利害關係人對齊的演變，以及內部審查要求。例如，客戶團隊的人員變動往往需要我們重新接觸並重建推進動能；同時，有些組織也會希望從初始部署據點取得更多驗證。

In other cases, IT teams initially assess the existing infrastructure, addresses OT security needs, creating an opportunity for us to provide further education on a distinct requirements of the OT environments. We view these dynamics as a natural part of the sales cycle in a complex and evolving market, and they continue to present opportunities for deeper engagement and long-term value creation. We are, however, making progress within the land and expand strategy. For example, AZT PROTECT is now deployed at the fourth plant in a major raw material manufacturer. We have to approach each plant separately, but with AZT PROTECT's track record, it is taking less and less time to add each site.

在其他情況下，IT 團隊起初會評估既有基礎架構是否已滿足 OT 安全需求，這也讓我們有機會進一步教育其了解 OT 環境的獨特需求。我們將這些動態視為在一個複雜且持續演進的市場中，銷售週期的自然一部分；它們也持續帶來更深度互動與創造長期價值的機會。不過，我們在「落地並擴張」策略上確實正在取得進展。例如，AZT PROTECT 現已在一家大型原物料製造商的第 4 座工廠完成部署。我們必須逐廠推進，但憑藉 AZT PROTECT 的實績，新增每個據點所需的時間正愈來愈短。

We are seeing similar expansion at other customers where we deployed at a single site in 2025 and now slowly expanding to additional sites within the organizations. Our most exciting AZT PROTECT land and expand relationship to date was signed in April. It is a 3-year agreement for more than two dozen U.S. sites of a global cement manufacturer. The 6-figure annual revenue value of this contract will be recorded in the fiscal third quarter.

我們也在其他客戶身上看到類似的擴張：這些客戶於 2025 年先在單一據點部署，現在正逐步擴展到組織內更多據點。迄今最令人振奮的 AZT PROTECT「落地並擴張」合作是在 4 月簽署。這是一份為期 3 年的合約，涵蓋一家全球水泥製造商在美國的 20 多個據點。該合約每年六位數的營收價值將於會計年度第三季入帳。

This agreement took approximately 13 months to get across the finish line, but now puts us in a position to pursue the manufacturer's other sites, which number more than 100 around the world. In late March, we entered into an agreement with a leader in the cloud-based commercial content automation service to deploy AZT and our ARIA ADR across the company's production infrastructure. And in early March, we deployed AZT PROTECT at a leading pet food producer. These are examples of how we are consistently evolving our approach to the OT market to shrink time between the initial land and expand. What's helped our effort in the growing awareness by the market of the increasingly threats generated by AI and the so-called friendly fire attacks generated by internal sources.

這份協議大約花了 13 個月才完成簽署，但如今也讓我們有條件進一步爭取該製造商在全球超過 100 個據點的機會。3 月下旬，我們與一家雲端商業內容自動化服務的領導業者簽訂協議，將 AZT 與我們的 ARIA ADR 部署於該公司的生產基礎架構。而在 3 月上旬，我們已在一家領先的寵物食品生產商部署 AZT PROTECT。這些例子顯示，我們正持續調整並演進對 OT 市場的切入方式，以縮短從初始「落地」到「擴張」之間的時間。推動我們努力的一項助力，是市場對 AI 所帶來日益增加的威脅，以及所謂由內部來源引發的「友軍誤傷」（friendly fire）攻擊的認知提升。

Cybersecurity solutions tend to use patches to address cybersecurity threats, but continuous patches are largely ineffective in the OT operating realm. In a friendly fire attack, IT mistakenly sends a faulty update to manufacturing, which can be even more devastating than the attacks impact to OT production. With AZT PROTECT, no patches are needed and to date, no breaches has occurred. At the same time, we continue to pursue strategic OEM relationships, most notably with Acronis as they work to embed AZT PROTECT into their platform. While these integrations require time to mature, they represent highly scalable opportunities with substantial long-term potential, and we are hoping to begin generating revenue from the Acronis relationship by the end of the current fiscal year.

資安解決方案往往透過修補程式（patch）來因應資安威脅，但在 OT 營運領域，持續打補丁在很大程度上並不有效。在「友軍誤傷」攻擊中，IT 可能誤將有缺陷的更新推送到製造端，其破壞性甚至可能比外部攻擊對 OT 生產造成的影響更嚴重。使用 AZT PROTECT 不需要任何修補程式，而且截至目前未發生任何入侵事件。同時，我們也持續推進策略性 OEM 合作關係，最值得一提的是 Acronis，他們正致力於將 AZT PROTECT 內嵌至其平台中。雖然這些整合需要時間成熟，但它們代表高度可擴展、具可觀長期潛力的機會；我們希望在本會計年度結束前開始從與 Acronis 的合作關係中產生營收。

AZT PROTECT continues to have little in the way of effective competition. However, the unique procurement process and development criteria for each customer and even each site within the customer has resulted in various timing delays. Our team is relentless when it comes to realizing the AZT PROTECT opportunity, and we continue to work through each challenge as it occurs. And we are moving -- we are definitely moving the needle. After a month into the fiscal third quarter, we are encouraged by the progress we are making with the AZT PROTECT deployments.

就有效競爭而言，AZT PROTECT 目前仍幾乎沒有對手。然而，每位客戶、甚至同一客戶內各個據點，其獨特的採購流程與開發/導入標準，已造成不同程度的時程延遲。我們的團隊在實現 AZT PROTECT 機會方面毫不鬆懈，並持續在每個挑戰出現時逐一克服。而且我們正在推進——我們確實正在推動進展。進入會計年度第三季一個月後，我們對 AZT PROTECT 部署所取得的進展感到鼓舞。

During the second quarter, once again, the Technology Solutions business was the primary generator of our top line growth. Our offerings increased the efficiency and effectiveness of our customers' IT investment in network, wireless and mobility, unified communication and collaboration, data center and advanced technology security. Our managed -- cloud and managed service practice continued to perform well and grew 11% over last year's comparable period. We continue to benefit from the ever-expanding business and organizational migration to the cloud and the increasing trends for enterprises of all sizes to acquire operations support required once the migration is complete. A primary factor behind this market driver is the growing complexity of the cloud and the unique and specific needs of each enterprise.

在第二季，科技解決方案業務再次成為我們營收成長的主要動能。我們的產品與服務提升了客戶在網路、無線與行動、整合通訊與協作、資料中心以及先進技術安全等領域的 IT 投資效率與效益。我們的託管—雲端與託管服務業務持續表現良好，較去年同期成長 11%。我們持續受惠於企業與組織不斷擴大的上雲遷移，以及各種規模企業在遷移完成後對取得營運支援的需求日益增加的趨勢。推動此市場動能的一個主要因素，是雲端日益增加的複雜性，以及每家企業獨特且特定的需求。

In Q1, we signed a new MSP customer that was generating nearly six figures in monthly revenue that commenced during the second quarter. And as we mentioned in the press release a week ago, one of the top 15 landscaping companies in the U.S. is engaging us to provide comprehensive managed services. As we look out over the remainder of the year, we believe our Service segment momentum can continue. Meanwhile, based on our best-in-class services, our customer retention rate remains extremely high, contributing to our expanding gross margins in the Service segment.

在第一季，我們簽下了一位新的 MSP 客戶，其每月營收接近六位數，並於第二季開始貢獻營收。此外，如同我們一週前在新聞稿中提到的，美國前 15 大園林景觀公司之一正委託我們提供全面性的託管服務。展望今年剩餘期間，我們相信服務事業部的動能可望延續。同時，憑藉我們同級最佳的服務，我們的客戶留存率仍維持在極高水準，並促進服務事業部毛利率持續擴張。

During the quarter, service gross margins increased more than 100 basis points over the last year's comparable period. Overall, our fiscal second quarter results reinforce our confidence in the fiscal 2026 is shaping up to be a growth year for CSPi. After being in the market with AZT PROTECT for just a short amount of time, we have gained more than 60 unique customers, some of whom as I noted earlier, have multisite installations underway and additional expansion opportunities. These customers span a broad range of verticals, including steel, energy, manufacturing, water, utilities, pharmaceuticals, food and telecommunication. At the same time, we are dedicated to maintain momentum in our service business, and we are pleased with the margin expansion realized from these operations during the quarter, as well as the profitability we achieved during the quarter.

本季服務毛利率較去年同期提升超過 100 個基點。整體而言，我們 2026 會計年度第二季的成果強化了我們的信心：2026 會計年度正逐步成形為 CSPi 的成長年度。AZT PROTECT 上市僅短短一段時間，我們已獲得超過 60 家不同客戶；其中部分客戶如我先前提到的，已在進行多據點部署，並具備進一步擴張機會。這些客戶涵蓋廣泛的垂直產業，包括鋼鐵、能源、製造、水務、公用事業、製藥、食品與電信。同時，我們致力於維持服務業務的動能，並對本季營運帶來的毛利率擴張以及本季達成的獲利表現感到滿意。

Overall, we are hopeful of sustained top and bottom line growth during the second half of the year and generating full fiscal year growth over the last year. With that, I will turn the call over to Gary to discuss our recent financial results in more detail. Gary?

整體而言，我們期望在下半年維持營收與獲利（上、下線）的持續成長，並在整個會計年度實現較去年成長。接下來，我將把電話交給 Gary，請他更詳細說明我們近期的財務結果。Gary？

Thanks, Victor. For the fiscal second quarter ended March 31, 2026, we generated [$6 million] in revenue compared to $13.1 million for the second quarter ended March 31, 2025.

謝謝，Victor。截至 2026 年 3 月 31 日止的 2026 會計年度第二季，我們創造了 [6 百萬美元] 的營收，相較於截至 2025 年 3 月 31 日止第二季的 1,310 萬美元。

Product revenue grew 30% over last year's quarter to $11.1 million, with the growth primarily attributed to a large onetime purchase order completed for a customer. Service revenue for the period grew 6.6% to $4.9 million. Gross profit for the quarter increased to $4.5 million compared to $4.2 million for the same prior year period. Gross margin for the fiscal second quarter was 28% of sales compared to the year ago fiscal second quarter gross margin of 32% of sales.

產品營收較去年同季成長 30% 至 1,110 萬美元，成長主要歸因於為某客戶完成的一筆大型一次性採購訂單。本期服務營收成長 6.6% 至 490 萬美元。本季毛利增加至 450 萬美元，相較於去年同期的 420 萬美元。2026 會計年度第二季毛利率為銷售額的 28%，相較於去年同期第二季毛利率為銷售額的 32%。

Gross margin realized from product revenue for the quarter was 15% versus 18% for the second quarter of fiscal 2025, while gross margin realized for the service revenue was 57% as compared to 55% for the year ago quarter. Research and development expenses increased 7% to $818,000 compared to $763,000 for the same period year quarter as we supported the customization of AZT PROTECT deployments and OEM embedded developments. Selling, general and administrative expenses for the fiscal second quarter increased 2% to $4.5 million from $4.4 million for the year ago fiscal second quarter. The company grew interest income during the quarter by 27.9% due to the increase in financing transactions with customers. We recorded a tax benefit of $568,000, primarily from excess tax benefit from restricted stock awards vested during the second quarter, enabling the company to report net income of $264,000 or $0.03 per share for the fiscal second quarter compared to a net loss of $108,000 or $0.01 per common share for the prior fiscal second quarter.

本季產品營收毛利率為 15%，相較於 2025 會計年度第二季的 18%；服務營收毛利率為 57%，相較於去年同季的 55%。研發費用增加 7% 至 81.8 萬美元，相較於去年同期的 76.3 萬美元，主要因我們支援 AZT PROTECT 部署的客製化以及 OEM 內嵌式開發。2026 會計年度第二季銷售、一般及行政費用增加 2% 至 450 萬美元，去年同期為 440 萬美元。由於與客戶的融資交易增加，公司本季利息收入成長 27.9%。我們認列 56.8 萬美元的稅務利益，主要來自第二季歸屬（vested）的限制型股票獎酬所產生的超額稅務利益，使公司得以在 2026 會計年度第二季報告淨利 26.4 萬美元（每股 0.03 美元），相較於前一會計年度第二季淨損 10.8 萬美元（每股普通股 0.01 美元）。

Our strong balance sheet offered us the opportunity to finance customer purchase orders. And as of March 31, 2026, we extended terms on over 30 transactions. We finished the quarter with cash and cash equivalents of $23.1 million, and the balance sheet continues to provide us the necessary resources to execute our growth strategies for the managed service and the AZT PROTECT products, offering us as well as paying a dividend of $0.03 per share on June 15, 2026, to shareholders of record on May 21, 2026, and we purchased 15,510 shares of common stock. Turning to our results for the first six months of fiscal 2026. Revenue was $28 million compared to revenue of $28.8 million for the same prior year period.

我們強健的資產負債表讓我們有機會為客戶採購訂單提供融資。截至 2026 年 3 月 31 日，我們已在超過 30 筆交易上延長付款條件。本季結束時，我們持有現金及約當現金 2,310 萬美元；資產負債表持續提供我們執行託管服務與 AZT PROTECT 產品成長策略所需的資源，同時也讓我們得以向於 2026 年 5 月 21 日登記在冊的股東，於 2026 年 6 月 15 日發放每股 0.03 美元的股利，並且我們回購了 15,510 股普通股。接著說明 2026 會計年度前六個月的結果。營收為 2,800 萬美元，相較於去年同期的 2,880 萬美元。

Gross profit for fiscal 6-month period ended March 31, 2026, was $9.2 million or 33% of sales compared to $8.8 million or 30% of sales. Benefiting from the fiscal second quarter tax benefit, the company reported net income of $355,000 or $0.04 per share of common in fiscal six months ended March 31, 2026, compared with the net income of $364,000 or $0.04 per share for the 6-month period ended March 31, 2025. With that, I will turn it over to the operator for your questions.

截至 2026 年 3 月 31 日止的 2026 會計年度前六個月毛利為 920 萬美元，約占銷售額的 33%，相較於去年同期的 880 萬美元（占銷售額 30%）。受惠於 2026 會計年度第二季的稅務利益，公司在截至 2026 年 3 月 31 日止的前六個月報告淨利 35.5 萬美元（每股普通股 0.04 美元），相較於截至 2025 年 3 月 31 日止前六個月的淨利 36.4 萬美元（每股 0.04 美元）。接下來，我將交給接線員，開始回答各位的提問。

(Operator Instructions) Mike Price.

(接線員指示) Mike Price。

Good morning. Thanks for taking the question. I know you just awarded shares, Victor, 35,000 shares, but nothing shows more confidence, especially with the growth prospects that you have when you actually buy shares. And I know the dividend isn't payable until June 15, but there's plenty of cash. It seems like Joe Nerges is the only one that has confidence in the company to continue to buy shares. Any thoughts?

早安。謝謝讓我提問。Victor，我知道你剛授予了 35,000 股的股票，但沒有什麼比實際買進股票更能展現信心，尤其是在你們具備成長前景的情況下。我也知道股利要到 6 月 15 日才會支付，但公司現金很充裕。看起來 Joe Nerges 是唯一對公司有信心、持續買進股票的人。你有什麼想法嗎？

Yes. No, not really. If I think at one time, I would like to purchase it, I will. I definitely have confidence in what we're doing. I have not sold anything in many, many years.

是的。不，沒有特別的。如果我在某個時點覺得想買，我就會買。我對我們正在做的事情絕對有信心。我已經很多很多年沒有賣出任何股票了。

So I think that shows the confidence level that I have with the organization and where we're going.

所以我認為這顯示了我對公司組織以及我們前進方向的信心程度。

We will send a message, though, if you actually buy shares. So consider it.

不過，如果你真的買進股票，我們會傳個訊息給你。所以請考慮一下。

Joseph Nerges, Segren Investments.

Joseph Nerges，Segren Investments。

Yeah. Good morning, guys. How are you today?

是的。各位早安。你們今天好嗎？

Good, Joe.

很好，Joe。

Let's elaborate a little bit on the cement company. You said in the press release that we've installed AZT in over two dozen plants currently in the U.S. And I think you also mentioned on the call that worldwide, you -- what is the opportunity? Over 100 plants if it expands beyond the US. Now is the US -- by the way, is the U.S. fully deployed? With the plants? Or do they have more plants to deploy here, too?

我們來多談一點水泥公司。你在新聞稿中提到，我們目前已在美國超過二十多座工廠安裝了 AZT。我想你在電話會議上也提到，放眼全球，你們——機會是什麼？如果擴展到美國以外，會有超過 100 座工廠的機會。那麼美國——順帶一提，美國是否已經全面部署了？就這些工廠而言？還是他們在美國這邊也還有更多工廠可以部署？

No, that was just the first phase. So there's potential for growth in the U.S., but the big growth is a sister company of theirs that has plants outside the U.S. that we're in talks with right now, and there is over 100 plants.

沒有，那只是第一階段。所以在美國仍有成長潛力，但最大的成長來自他們的一家姊妹公司，該公司在美國以外有工廠，我們目前正在與他們洽談，總數超過 100 座工廠。

Okay. So I just wanted to clarify. And I have a follow-up, let me just get into the press release you guys did on the cement company. I think it was pretty -- the bullet points you made were great. And a couple of points that we didn't know in the past that we've talked about, especially is the savings that the customers are accruing because they've installed AZT.

了解。我只是想確認一下。我還有個追問，我先回到你們針對水泥公司發布的新聞稿。我覺得——你們列的重點很棒。而且有幾點是我們過去不知道、但我們一直在談的，特別是客戶因為安裝 AZT 而累積的節省。

You mentioned $1,000 per plant savings. And can you elaborate on where that -- where the savings are coming from?

你提到每座工廠可節省 1,000 美元。你能否說明一下——這些節省是從哪裡來的？

It's just the -- from talking to some of these companies that they're just saying that they're reducing the patching spend and preserving the life of their assets. So that's what they're just estimating that extending these assets for a period of time, a year or two or three would be -- just on the average would be saving close to $1,000 per plant per month. So it's pretty significant when you look at if they can extend it for another 12 to 24 months of these units and then there's less downtime because taking out a whole system and putting a new one is not something you do 24 to 48 hours. It takes a lot of time, effort and planning. And that means that machine is down.

這主要是——我們和其中一些公司交流後，他們表示他們正在降低修補（patching）的支出，並延長其資產的使用壽命。所以他們的估算是，若能把這些資產延長一段時間，一年、兩年或三年——平均而言——每座工廠每月可節省接近 1,000 美元。所以當你看，如果他們能把這些設備再延長 12 到 24 個月，而且停機時間更少，因為把整套系統拆掉再換新，不是 24 到 48 小時就能完成的事。那需要大量時間、投入與規劃。而這代表機器會停機。

And as it -- when those machines shut off, they're not making money for the organization. So those are just some cost numbers that came from some of the talks we had with different companies that we're talking to. And I'm guessing every company might have a different number. But based on the one that we were just talking to, that's what they're estimating.

而當那些機器停下來時，他們就無法為組織賺錢。所以這些只是我們與不同公司洽談時得到的一些成本數據。我猜每家公司可能會有不同的數字。但以我們剛剛在談的那一家來看，他們就是這樣估算的。

Just -- and also in the press release, you mentioned requirements. I guess are these industry requirements or government requirements that you're talking about with the -- are they -- are these -- where are these requirements being deployed? I mean how -- who's coming up with these requirements?

另外——你在新聞稿中提到「要求」。我想問這些是產業要求還是政府要求？你提到的——這些——這些要求是在哪裡被推行的？也就是說——是誰制定這些要求？

Yes. Sometimes the industry requirements, sometimes the government requirements. It just depends.

是的。有時是產業要求，有時是政府要求。這要看情況。

Okay. And what -- the point -- the question basically is that you said some of the competitors cannot meet these requirements. And it looks like it's coming from the fact that their software is too comprehensive to meet some of these endpoints or to protect the endpoint.

了解。那——重點——我的問題基本上是，你說有些競爭對手無法符合這些要求。看起來原因是他們的軟體太過龐雜，無法滿足某些端點要求，或無法保護端點。

Well, they're not investing some of the older versions of the software that are out there to meet those requirements. The new stuff, of course, they're moving forward with, but some of the stuff that Windows 7, Windows 10, they're choosing not to continue supporting that.

嗯，他們沒有投入去讓市面上一些較舊版本的軟體符合那些要求。當然，新產品他們會持續推進，但對於像 Windows 7、Windows 10 這些，他們選擇不再繼續支援。

Okay. And then the -- just I guess this ties into it to some extent. You mentioned the lightweight, the fact that we take less memory and less core. And I guess some of the competitors take much more for cybersecurity software. And in this case, they can't meet requirements because the software is too comprehensive, the competitor software to solve the problem.

了解。然後——我想這在某種程度上也相關。你提到「輕量化」，也就是我們占用更少記憶體與更少核心。我想有些競爭對手的資安軟體占用更多資源。在這種情況下，他們無法符合要求，是因為競爭對手的軟體太過龐雜，反而無法解決問題。

Yes. The older versions of software, once you start putting like the Windows XP, you start loading just there -- we're lightweight, right, because there's not a lot of CPU being used with that. And when you have an old XP system, there's not a lot of extra memory or CPU that's just sitting there and not being used. And as a new software for some of these other organizations, it's CPU intensive. And we were able to keep it 1% to 2% utilization on the CPU and the memory is like 16 meg.

是的。較舊版本的軟體，一旦你開始在像 Windows XP 這種系統上部署——我們是輕量的，對吧，因為 CPU 使用量不高。而當你使用舊的 XP 系統時，並沒有太多額外的記憶體或 CPU 閒置不用。但其他一些公司的新軟體是 CPU 密集型的。而我們能把 CPU 使用率維持在 1% 到 2%，記憶體大概是 16MB。

It's very, very small. I have mentioned that in the last, I think, three or four conference calls.

非常、非常小。我在過去三、四次電話會議中都提過。

So basically, a lot of competition is excluded because they really can't with their current software not...

所以基本上，很多競爭對手會被排除在外，因為以他們目前的軟體確實無法……

It's just -- they're choosing to -- that's their go-to-market strategy, what they're choosing to support and not to support every organization, I guess they're looking at the overall market and what makes sense to them. And a lot of the software that they're doing is -- it's on the network side, not so much on the endpoint side. We're very focused on the OT only, right, where some of the big players that are out there are focused on the IT side of it.

就是——他們選擇——那是他們的市場進入策略：他們選擇支援什麼、不支援什麼；我想每家公司都會看整體市場，評估什麼對他們有意義。而他們做的很多軟體是——偏向網路端，而不是那麼偏向端點端。我們非常專注在 OT（營運技術）領域，對吧；而市面上一些大型業者則更專注在 IT 端。

All right, well, thanks for that. Appreciate it.

好，謝謝你的說明。感謝。

Thanks, Joe.

謝謝你，Joe。

Will Lauber, Visionary Wealth Advisors.

Will Lauber，Visionary Wealth Advisors。

Yes. Victor, I noticed you guys have a number of new Board members. Can you -- I know it's early on, but can you give kind of a quick review of what they're bringing to the table? Is it some new ideas or just kind of what they're adding to the Board?

是的。Victor，我注意到你們新增了幾位董事會成員。你能否——我知道現在還早——但能簡單說明一下他們能帶來什麼價值嗎？是一些新想法，或是他們大致上能為董事會增添哪些內容？

Sure. Jim has been in the OT world his whole life. We worked with him at -- Pharmaceutical that evaluated our products, saw the value in it. He has a lot of contacts. He's very well known in the industry with a lot of the manufacturers of the world, the Emerson, the Siemens, the Honeywell, he has a lot of contacts and his reputation being in the OT industry is second to none.

當然。Jim 一輩子都在 OT 領域。我們曾在一家評估我們產品的製藥公司與他共事，他看到了其中的價值。他人脈很廣。他在業界非常知名，與全球許多製造商——Emerson、Siemens、Honeywell——都有很多聯繫；他在 OT 產業的聲譽無人能及。

So he's very, very familiar with the AZT product, the development, the testing, where the value is. He's done a webinar with us. If some of you guys had attended that, probably a year ago or so. I'm not sure exactly of the date. So yes, he's definitely -- he knows the OT space.

所以他對 AZT 產品、開發、測試以及價值所在都非常、非常熟悉。他也和我們一起做過一場線上研討會。如果你們當中有人參加過的話，大概是一年前左右。我不確定確切日期。所以是的，他絕對——他很了解 OT 領域。

We're consulting with them on where we should go, the market strategy and then just a testimonial on how much he believes in the product that he was able to join our Board.

我們正就我們應該往哪裡走、市場策略等與他們進行諮詢，另外也有一個見證：他對產品的信心有多強，以至於他願意加入我們的董事會。

Okay. And then on the land and expand, is it like budget issues by plant? Or is it contract issues that they might have a contract that goes on for another year or 2? Or what's kind of driving that?

好的。那關於 land and expand（先落地再擴張），是各工廠的預算問題嗎？還是合約問題，例如他們可能有一份還要再跑一到兩年的合約？或是主要是什麼在驅動？

No, it's just getting inside. And what we're -- the way we do things is quite different with no patching. People, they want to see it work, right? It's definitely a different methodology compared to everyone else. It's kind of -- as they say, it sounds like magic.

不是，就是先進得去。而我們——我們的做法很不一樣，因為不需要打補丁（patching）。大家會想先看到它真的能運作，對吧？相較於其他人，這絕對是不同的方法論。有點——就像他們說的，聽起來像魔法。

So we definitely have to go through the testing inside the organization. And if we could get one individual to basically back us up, go through the testing, get it into their lab, get all the applications loaded, go through the whole process with the big steel plant. That's kind of the way we did it. The same thing with the big cement. You get someone who definitely believes in the product, and it's easier to position it throughout the organization.

所以我們確實必須在組織內部走完測試流程。如果我們能讓某一位關鍵人士基本上支持我們，完成測試、把它放進他們的實驗室、把所有應用程式載入，並在大型鋼鐵廠走完整個流程。這大概就是我們當時的做法。大型水泥客戶也是同樣。你找到一個確實相信產品的人，就更容易在整個組織內推進與部署。

And as I mentioned, I think, on the last call, IT is definitely getting more and more involved. So being able to support our vision on how we can help them has helped us convince the IT folks that we can work side by side with some of the other big endpoint protection products that you're familiar with like the CrowdStrikes of the world or whatever that it's focused mainly on the IT side of the house that we complement them. We don't really compete with them.

而且如我提到的，我想在上一次電話會議上也說過，IT 的參與度確實越來越高。因此，能夠支持我們的願景、說明我們如何幫助他們，也幫助我們說服 IT 團隊：我們可以與你們熟悉的其他大型端點防護產品並肩合作，例如業界的 CrowdStrike 等等——那些主要聚焦在 IT 端——而我們是對它們形成互補。我們其實不是真的在跟它們競爭。

Okay. So out of all these places where you've landed, if you were able to get, say, 50% of all those different sites, does that make ARIA profitable or breakeven at that point?

好的。那在你們已經落地的這些地方裡，如果你們能拿下例如其中 50% 的不同站點，ARIA 到那個時點會是獲利或損益兩平嗎？

It'd be in the right direction. It would be in the right direction. Yes.

那會是朝正確方向前進。會是朝正確方向前進。是的。

Okay. And then on the cement producer deal, if I've identified it correctly and if you've done two dozen sites, you've probably gone over the number of their cement producing sites. So I assume you guys are probably doing some of their aggregate sites as well. Is that correct?

好的。那關於水泥生產商那筆案子，如果我辨識得沒錯，而且你們已經做了兩打（約 24 個）站點，你們大概已經超過他們水泥生產站點的數量了。所以我猜你們也在做他們的一些骨材（aggregate）站點。是這樣嗎？

Yes. The ones that were under a particular budget, those are the ones we targeted. So we -- instead of going one by one, we like what we have to do with the steel plant because its budgets are separated. We were able to consolidate and do kind of like a master agreement to service those plants on one particular budget. So anything else there.

是的。我們鎖定的是那些歸在某個特定預算之下的站點。所以我們——不像鋼鐵廠那樣必須一個一個來，因為它的預算是分開的。我們能夠把它整合起來，做一種類似主合約（master agreement）的方式，用同一個特定預算來服務那些工廠。所以那邊其他的也一樣。

There's an expansion in that, too. Those were the immediate systems that had older software on it that we targeted, but there's expansion inside of 20 sites, 20-some-odd sites that we have in the U.S. And then like I said, the real big potential is if we can get outside the U.S. to those on 100-plus where there's a lot of systems out there that could be significant. And we're working with them.

那裡也有擴張空間。我們先鎖定的是那些立即需要、系統上有較舊軟體的部分，但在美國我們目前的 20 個左右站點內也還有擴張；然後如我所說，真正的大潛力是如果我們能走出美國，去到那 100 多個站點——那裡有很多系統，規模可能會很可觀。我們正在和他們合作推進。

The good part of it is the IT folks have already seen the product. So I'm confident one way or the other, it's not going to take another 13 months to get over the finish line one way or the other. Whether they go with us or they don't, I think we can get -- that sales process shrunk into a much shorter period of time.

好的一點是 IT 團隊已經看過產品了。所以我有信心，不管結果如何，不會再花另外 13 個月才走到終點。不論他們最後選我們或不選我們，我認為我們可以——把那個銷售流程縮短到更短的時間。

Okay. And would that be the kind of an all or nothing kind of deal or quite a bit that you're not going to have to go one by one?

好的。那會是一種「全有或全無」的案子嗎？還是你們仍然得一個一個站點去談很多？

No. I think it will be all or nothing. I could be wrong, but I think the way they seem to want to work, it would be all or nothing. But to be honest with you it's a little too early to really give you 100% one way or the other. But my goal is to get the whole thing.

不。我覺得會是全有或全無。我可能會判斷錯，但看起來他們想合作的方式會是全有或全無。但老實說，現在要 100% 確定是哪一種還有點太早。不過我的目標是把整個案子都拿下來。

Yes. I was kind of surprised usually you guys put things pretty close to the vest, and I have to assume that the talks are pretty advanced for you guys to put that out publicly. So...

是的。我有點驚訝，通常你們口風都很緊，我只能假設你們的洽談已經相當深入，才會把這件事公開講出來。所以……

Yes. Like I said, I kind of try to fill you in on as much as I can. Like I said, there's no guarantee on the other sites, but we are in talks. But at least we got the first US-based ones under our belt already.

是的。如我所說，我會盡量把我能說的都告訴你們。如我所說，其他站點沒有保證，但我們正在洽談中。但至少我們已經先把第一批美國本土的站點拿下來了。

Okay. All right. That's all I have. Thank you.

好的。好。我就這些問題。謝謝。

Brett Davidson.

Brett Davidson。

All right, good morning. I'm going to use you guys as a conduit here and correct me if I'm wrong, but the AZT products are less resource-intensive than some of the competitors' more robust products targeting current hardware, whereas the older hardware has less resources available, so making AZT an option because it's less resource intensive. Is that accurate?

好，各位早安。我想把你們當作一個傳聲筒，如果我說錯請糾正我：相較於一些競爭對手針對現有硬體、功能更強健的產品，AZT 產品對資源的需求較低；而較舊的硬體可用資源較少，因此 AZT 因為更省資源而成為一個選項。這樣理解正確嗎？

That's accurate.

沒錯。

All right. The question I have is regarding a statement in the release that says we continue to work with our strategic partners and distributors on additional multisite deployments across key markets. I'm just looking for clarification on what exactly that means. Is that the company is attempting to obtain commitments? Or is this actively working on deployments or a mix of both?

好的。我想問的是，新聞稿裡有一句話提到，我們持續與策略夥伴及經銷商合作，在關鍵市場推動更多多據點部署。我只是想釐清這句話的確切意思。這是指公司正在嘗試取得承諾嗎？還是指正在積極進行部署，或兩者兼而有之？

It's a mixture of both, right? We're working with the distributors that I have mentioned prior that there are press releases out there, the CDs, the Rexel, the -- of the world with their end-user customers where we have sold maybe one particular site, and we're trying to expand. There's a lot of water districts that we've sold into where there's expansion probability in each and every one. So it's -- we continue to expand with the distribution side of it to get more and more of their end user customers talking to us. And then there's also expansion inside the customers that we've already closed small land and expand deals with.

兩者都有，對吧？我們正與我先前提到、外面也有新聞稿的那些經銷商合作，例如 CDW、Rexel 等等，透過他們的終端客戶；我們可能已經賣出某一個特定據點，現在正嘗試擴大。我們也賣進了很多水務機構，每一個都有擴張的可能性。所以我們會持續在通路端擴張，讓越來越多他們的終端客戶來跟我們接洽。同時，我們也在已經成交、採取「先小規模導入再擴大」的客戶內部推動擴張。

So some of these are contracts where we're actively working to deploy on multisite?

所以其中有一些是我們正在積極推動多據點部署的合約？

Yes. They're all -- our goal is to get in there, get it tested, get it one site, two sites working in purchase orders, right? A lot of the things that we're trying to do now is not just do a POC where we're giving it away. We're attempting to do more paid POCs where the customer is actually buying a starter kit where you get one trust center and, say, 5 or 10 licenses. And so there's a commitment on both sides now that we'll help them get it up and running, but they're committed to really that it's not just kicking the tires.

是的。它們都是——我們的目標是先進去、先測試，先讓一個據點、兩個據點運作起來並形成採購訂單，對吧？我們現在努力做的很多事情，不只是做一個我們免費提供的 POC。我們正嘗試做更多付費 POC，讓客戶實際購買入門套件，例如包含一個信任中心（trust center）以及 5 或 10 個授權。因此現在雙方都有承諾：我們會協助他們上線運作，而他們也承諾這不只是試用看看。

It's -- they're committed to a true POC. And then we get in there and they purchase it, we install it. Hopefully, they're happy and they evangelize us either at corporate where we try to do an enterprise agreement or where we -- in some cases, we have to go to each and every site because of the way the budgets are distributed across the organization.

也就是——他們承諾做一個真正的 POC。然後我們進去，他們購買，我們安裝。希望他們滿意，接著他們會在總部端幫我們宣傳，我們就能嘗試簽企業協議；或者在某些情況下，因為預算在組織內分散的方式，我們必須逐一到每個據點去推進。

And what would you say is the current split of these deals coming through internal sources and through these third-party relationships, these distributors and whatnot?

那你會怎麼說，目前這些交易來源在內部來源與第三方關係（這些經銷商等）之間的比例分布如何？

We're leaning on the channel significantly right now. We're trying not to take anything direct any longer. There's always an exception, but the channel that we've built over the last 18 months, we're trying to build that relationship, whether we walk them into something or the majority is, to be honest with you, they're walking us into their customers because they have long-term relationships with them.

我們目前非常倚重通路。我們正盡量不再直接做任何案子。當然總會有例外，但我們在過去 18 個月建立的通路，我們正努力深化這些關係——不論是我們帶他們進案子，或是坦白說，多數情況是他們把我們帶進他們的客戶，因為他們與客戶有長期關係。

And how many of these types of relationships do we have currently?

那目前我們有多少這類合作關係？

Well, there's three major ones that we have, but there's probably another half a dozen or so smaller resellers or integrators that we have. So I would say collectively, probably 10.

嗯，我們有三個主要的合作夥伴，但另外大概還有半打左右較小的轉售商或系統整合商。所以我會說合計大概 10 個。

And are all of them feeding deals through? Or it's -- some of the larger ones are the majority of this? Or is this distributed?

那他們全部都有帶案子進來嗎？還是——主要是幾個大的占大多數？或是分布得很平均？

Yes, it's distributed all over the place. Some of the bigger resellers, integrators that we're talking with, we're talking to 75 reps, some better than others, some more aggressive than others. Some have better relationships than others, but those are the relationships that we've been trying to build over the last year plus is getting who is CSPi inside their organization, what our value is and how easy our product is to position and there is a value to separate them from the rest of the world.

是的，分布得很廣。我們正在洽談的一些較大的轉售商、整合商，我們是在跟 75 位業務代表溝通；有些做得比其他人好，有些更積極，有些關係更深。但這些就是我們過去一年多一直在建立的關係：讓他們組織內部知道誰是 CSPi、我們的價值是什麼、以及我們的產品有多容易定位，並且能帶來價值，讓他們與其他競爭者區隔開來。

That's the messaging we're trying to work with these folks, going on to small little shows in different areas of the country where they bring in 5 or 10 different customers, and we just do a little hour presentation to the customer and then try to build rapport.

這就是我們想跟這些夥伴一起推動的訊息：在全國不同地區參加一些小型展會，他們會帶 5 到 10 個不同的客戶來，我們就對客戶做一個大約一小時的簡報，然後嘗試建立關係。

So at this point, we got a whole bunch of folks outside the organization that are evangelizing for this product at this point.

所以到目前為止，我們有一大群組織外的人在替這個產品做推廣。

That's correct.

沒錯。

Oh, perfect. Thank you so much.

哦，太好了。非常感謝。

(Operator Instructions) There are no further questions in queue at this time. I would now like to turn the floor back over to Victor Dellovo for closing remarks.

(接線員指示) 目前隊列中沒有其他問題。現在我想把時間交回給 Victor Dellovo 做結語。

Thank you, everyone, for joining us today. We've made solid progress during the second quarter and are aggressively pursuing our opportunities for the remainder of fiscal 2026, both on the service side of our business as well as AZT PROTECT, and we look forward to reporting our progress with you in August. In the meantime, thank you to our shareholders for your support, to our team for their dedication and efforts, and we wish everyone a good remainder of the day. Goodbye for now.

感謝各位今天加入我們。我們在第二季取得了穩健進展，並正積極把握 2026 會計年度剩餘期間的機會，涵蓋我們業務的服務面以及 AZT PROTECT；我們也期待在 8 月向各位報告我們的進展。同時，感謝股東的支持，感謝團隊的投入與努力，也祝各位今天剩餘時間一切順利。暫時先說再見。

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

謝謝各位。今天的電話會議到此結束。您現在可以掛斷電話線，祝您有美好的一天。感謝您的參與。