Frequency Electronics Inc (FEIM) 2024 Q3 法說會逐字稿

Greetings, and welcome to the Frequency Electronics Q3 fiscal '24 earnings release conference call. (Operator Instructions) As a reminder, this conference is being recorded. Any statements made by the company during this conference call regarding the future constitute forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

您好，歡迎參加Frequency Electronics '24 財年第三季財報發布電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。根據 1995 年《私人證券訴訟改革法案》的安全港條款，本公司在本次電話會議期間發表的任何有關未來的聲明均構成前瞻性聲明。

Such statements inherently involve uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences are included in the company's press releases and are further detailed in the company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements the company undertakes no obligation to update these statements for revisions or changes after the date of this conference call.

此類陳述本質上涉及不確定性，可能導致實際結果與前瞻性陳述有重大差異。可能導致或促成此類差異的因素包含在本公司的新聞稿中，並在本公司向美國證券交易委員會提交的定期報告中進一步詳細說明。透過做出這些前瞻性陳述，本公司不承擔在本次電話會議日期之後更新這些陳述以進行修訂或更改的義務。

It is now my pleasure to introduce your host, Thomas McClelland, President and Chief Executive Officer.

現在我很高興向大家介紹東道主托馬斯·麥克萊蘭 (Thomas McClelland)，他是總裁兼執行長。

Good afternoon, everyone. We have a mixed story to tell this quarter. On the one hand, we're experiencing continued revenue growth and all-time record backlog and continued growing demand for our products. On the other hand, we're reporting a loss for the quarter of $473,000 attributable to technical challenges, primarily on a single new development program.

大家下午好。本季我們要講的故事好壞參半。一方面，我們的收入持續成長，積壓訂單創歷史新高，並且對我們產品的需求持續成長。另一方面，我們報告本季虧損 473,000 美元，原因是技術挑戰，主要是在一個新的開發計劃上。

In order to remain competitive in the long run, it's necessary to take on programs requiring challenging new technology development and such temporary setbacks are an inevitable part of the equation. In this case, we are aggressively managing the program in question conservatively assessing its progress and are confident that the overruns are largely behind us and that overall, we will still generate a material operating profit for the fiscal year.

為了保持長期競爭力，有必要進行需要具有挑戰性的新技術開發的項目，而這種暫時的挫折是不可避免的一部分。在這種情況下，我們正在積極管理相關計劃，保守地評估其進展，並相信超支已基本過去，總體而言，我們仍將在本財年產生實質營業利潤。

Furthermore, the knowledge base and lessons learned from such setbacks helped position us for improved performance on new business incorporating the new technologies. This quarter highlights the importance of higher gross margins on new business, as we've discussed on previous earnings calls.

此外，知識庫和從此類挫折中學到的經驗教訓有助於我們提高採用新技術的新業務的績效。正如我們在先前的財報電話會議上所討論的那樣，本季凸顯了新業務更高毛利率的重要性。

We are fortunate that currently there is considerable demand for our products, which allows us to successfully achieve higher gross margins in some times to pass on opportunities in which this is not possible. We'll continue to approach our business with this strategy. We anticipate continued long-term growth in our primary end markets of space, navigation, secure communication and timing.

我們幸運的是，目前我們的產品有相當大的需求，這使我們能夠在某些時候成功地實現更高的毛利率，從而傳遞出不可能實現的機會。我們將繼續以此策略開展我們的業務。我們預計太空、導航、安全通訊和授時等主要終端市場將持續長期成長。

Our proven heritage technical expertise and these disciplines allows us to continue to win new business as evidenced by the continued growth in backlog and new bookings. Coupled with a disciplined management approach in which problems are identified early, addressed aggressively and conservatively accounted for. I strongly believe the company is on a trajectory of sustained growth, profitability and cash flow. Albeit with some inevitable wiggles going forward.

我們久經考驗的傳統技術專業知識和這些學科使我們能夠繼續贏得新業務，積壓訂單和新訂單的持續增長證明了這一點。再加上嚴格的管理方法，儘早發現問題、積極解決問題並保守解決。我堅信該公司正走在持續成長、獲利和現金流的軌道上。儘管未來會出現一些不可避免的波動。

I'll now turn things over to our CFO, Steve Bernstein, who will fill you in on the financial details.

我現在將把事情交給我們的財務長史蒂夫·伯恩斯坦（Steve Bernstein），他將向您提供財務詳細資訊。

Thank you, Thom, and good afternoon. Before I get into the nine-month financial results. I wanted to add a comment regarding the results for the three-months ending January 31, 2024. As Thom mentioned, during the third-quarter of fiscal year '24, the company had a temporary setback on one of our programs. As of today, the issue has been almost fully resolved with the majority of the related costs having been accounted for during the third quarter of fiscal year '24. We look forward to reporting more favorable results next quarter as the program continues.

謝謝你，湯姆，下午好。在我了解九個月的財務表現之前。我想對截至 2024 年 1 月 31 日的三個月的結果添加評論。正如 Thom 所提到的，在 24 財年第三季度，公司的一項計畫遇到了暫時的挫折。截至今天，該問題已幾乎完全解決，大部分相關成本已在 24 財年第三季計算。隨著該計劃的繼續進行，我們期待下季度報告更有利的結果。

Despite the setback, there was positive news from the quarter, fully funded backlog was approximately $67 million. Sales continue to increase, our balance sheet remains strong, and we expect [Covetrus] cash flow going forward.

儘管遭遇挫折，本季還是傳來了正面的消息，全額資助的積壓金額約為 6,700 萬美元。銷售額持續增加，我們的資產負債表依然強勁，我們預計 [Covetrus] 現金流將持續成長。

For the nine-months ending January 31, '24, consolidated revenue was $39.7 million compared to $27.8 million for the same period of the prior fiscal year. The components of revenue are as follows. Revenue from commercial and US government satellite programs was approximately $16.3 million or 41% compared to $12.8 million or 46% in the same period of the prior fiscal year.

截至 2024 年 1 月 31 日的九個月，合併收入為 3,970 萬美元，而上一財年同期為 2,780 萬美元。收入構成如下。來自商業和美國政府衛星計畫的收入約為 1,630 萬美元，佔 41%，而上一財年同期為 1,280 萬美元，佔 46%。

Revenues on satellite payload contracts are recorded primarily under the percentage of completion method and are recorded only in the FDI New York segment. Revenues from non-space US government and DOD customers, which are recorded in both the FEI New York and FEI Zyfer segments were $21.1 million compared to $13 million in the same period of the prior fiscal year and accounted approximately for 53% of consolidated revenue compared to 47% for the prior fiscal year. Other commercial and industrial revenues were $2.3 million and $2 million for the nine-months ending January 31, '24 and '23, respectively.

衛星有效載荷合約的收入主要按照完成百分比法記錄，並且僅記錄在 FDI 紐約部分。FEI New York 和 FEI Zyfer 部門中來自非航太美國政府和國防部客戶的收入為 2,110 萬美元，而上一財年同期為 1,300 萬美元，約佔合併收入的 53%。 。截至2024年1月31日和2023年1月31日的九個月中，其他商業和工業收入分別為230萬美元和200萬美元。

The significant increase in revenue for the period was primarily related to increases in US government customer sales, both for space and commercial orders. For the nine-months ending January 31, '24, gross margin and gross margin rate increased as compared to the same period in fiscal year '23.

該期間收入的大幅增長主要與美國政府客戶銷售的增加有關，包括空間和商業訂單。截至2024年1月31日的九個月，毛利率和毛利率比23財年同期增加。

The gross margin dollars increase as a direct result of the increase in revenue, the gross margin rate increased significantly due to the fact that many of the technical challenges faced in the prior fiscal year have been resolved and as a result, the relating programs are now moving forward and running more efficiently.

毛利率的增加是收入增加的直接結果，毛利率大幅增加是由於上一財年面臨的許多技術挑戰已經解決，因此相關計劃現在已解決不斷前進，更高效地運行。

Previous programs at sustained lower margins due to technical issues are near completion or have been completed. For the nine-months ending January 31, '24 and '23, SG&A expenses were approximately 19% and 23%, respectively, of consolidated revenue. The percentage of consolidated revenue decreased 4% due to an increase in sales for the nine-months ending January 31, '24 as compared to the nine-months ending January 31, '23.

先前由於技術問題導致利潤率持續較低的專案已接近完成或已完成。截至 2024 年 1 月 31 日和 2023 年 1 月 31 日的九個月中，SG&A 費用分別約佔合併收入的 19% 和 23%。與截至 2023 年 1 月 31 日的九個月相比，由於截至 2024 年 1 月 31 日的九個月的銷售額增加，合併收入的百分比下降了 4%。

Similarly, the absolute increase in SG&A expenses for the nine-months ending January 31, '24 as compared to the prior year period was largely due to bid and proposal costs associated with the increased sales and increase in professional fees and payroll associated costs.

同樣，與去年同期相比，截至 2024 年 1 月 31 日的九個月內，SG&A 費用的絕對增長主要是由於與銷售額增加相關的投標和建議成本以及專業費用和工資相關成本的增加。

R&D expense for the nine-months ending January 31, '24 decreased to $2.3 million from $2.5 million for the nine-months ending January 31, '23. A decrease of $200,000 and were approximately 6% and 9%, respectively, of consolidated revenue. R&D decreased for the nine-months ending January 31, '24 was primarily due to a temporary shift of R&D staff. The company plans to continue to invest in R&D in the future to keep its products at the state of the art.

截至2024年1月31日的九個月的研發費用從截至2023年1月31日的九個月的250萬美元減少至230萬美元。減少了 20 萬美元，分別佔合併收入約 6% 和 9%。截至 2024 年 1 月 31 日的九個月裡，研發下降主要是由於研發人員的臨時轉移。該公司計劃未來繼續投資研發，以保持其產品處於最先進的水平。

For the nine-months ending January 31, '24, the company recorded operating income of $2.5 million compared to an operating loss of $5.1 million in the prior year. Operating income increased due to combination of increased revenue, gross margin and the effects of certain cost cutting measures instituted by management that begun in fiscal '23.

截至 2024 年 1 月 31 日的九個月中，該公司錄得營業收入 250 萬美元，而上一年的營業虧損為 510 萬美元。由於收入、毛利率的增加以及管理階層從 2023 財年開始實施的某些成本削減措施的影響，營業收入增加。

Other income can be derived from reclaiming of metals refunds, interest on deferred trust assets or the sale of fixed assets, interest expenses related to deferred compensation payments made to retired employees. This yields pretax income of approximately $3 million compared to a $5.7 million pre-tax loss for the prior fiscal year. For the nine-months ending January 31, '24, the company recorded a tax provision of $19,000 compared to $6,000 for the same period of the prior fiscal year.

其他收入可來自收回金屬退款、遞延信託資產的利息或出售固定資產、與向退休員工支付的遞延補償金相關的利息支出。這將產生約 300 萬美元的稅前收入，而上一財年的稅前虧損為 570 萬美元。截至 2024 年 1 月 31 日的九個月中，該公司記錄的稅款準備金為 19,000 美元，而上一財政年度同期為 6,000 美元。

Consolidated net income for the nine-months ended January 31, '24, was $3 million or $0.32 per share compared to a $5.7 million net loss or negative $0.62 per share in the previous fiscal year. Our fully funded backlog at the end of January '24 was approximately $67 million compared to approximately $56 million for the previous fiscal year ended April 30, '23.

截至2024年1月31日的九個月的合併淨利潤為300萬美元，即每股0.32美元，而上一財年的淨虧損為570萬美元，即每股負0.62美元。截至 2024 年 1 月末，我們的全額資金積壓約為 6,700 萬美元，而截至 2023 年 4 月 30 日的上一財年約為 5,600 萬美元。

The company's balance sheet continues to reflect strong working capital position of approximately $24 million at January 31, '24, and a current ratio of approximately 1.9 to 1. Additionally, the company is debt-free. The company believes that its liquidity is adequate to meet its operating and investing needs for the next 12 months and the foreseeable future.

截至 2024 年 1 月 31 日，該公司的資產負債表繼續反映出約 2,400 萬美元的強勁營運資本狀況，流動比率約為 1.9 比 1。此外，該公司沒有債務。本公司認為其流動性足以滿足未來12個月及可預見的未來的營運和投資需求。

I will turn the call back to Thom and we look forward to your questions soon.

我會將電話轉回給 Thom，我們期待盡快收到您的提問。

Thanks, Steve. I think we have nothing more to say we can turn things over for questions at this time.

謝謝，史蒂夫。我想我們現在沒什麼好說的了，我們可以把事情轉交提問。

(Operator Instructions)

（操作員說明）

Brett Richard, Private Investor.

布雷特理查德，私人投資者。

Can you guys, a couple of questions actually, can you guys talk about how much of the backlog increase for the quarter was related to the November contract first other business?

各位，實際上有幾個問題，你們能談談本季的積壓訂單增加有多少與 11 月合約優先的其他業務相關嗎？

Well, certainly a significant part of it, but it was not completely due to the November contracts we've had additional new business and we're continuing to get a lot of new business as we speak.

嗯，當然是其中很重要的一部分，但這並不完全是由於 11 月份的合同，我們有了額外的新業務，而且就我們所說的而言，我們還在繼續獲得大量新業務。

So would you say outside of those contracts as business strengthen versus, say, Q2 or held steady? Or I guess any kind of color on that.

那麼，您會說在這些合約之外，業務會加強，例如第二季還是保持穩定？或者我猜上面有任何顏色。

I think it strengthened.

我認為它加強了。

Okay, good to here. So the second question was about the cost overruns. So first part that was, were the cost overruns part of those contracts were announced in November also if you can quantified --?

好的，到這裡就好了。所以第二個問題是關於成本超支的。所以第一部分是，這些合約的成本超支部分是否在 11 月宣布，如果你可以量化的話——？

No.

不。

Okay. That's helpful. And can you quantify the dollar impact of those?

好的。這很有幫助。您能量化這些對美元的影響嗎？

I don't know, Steve, do you want --

我不知道，史蒂夫，你想要嗎？--

It was approximately, give or take about $1.8 million effect on that particular program.

該特定項目的影響約為 180 萬美元。

Okay. That's pretty substantial margin. So absent that, you're probably somewhere in the mid 30s or something like that?

好的。這是相當可觀的利潤。如果沒有這一點，你可能只有 30 多歲左右？

Yes.

是的。

So one more question on that, too. So we were halfway through the quarter when we had the last conference call there were there was any sign of this. When did management become aware of these problems and where you were from the beginning? Or was there a gap here and realizing the issues. Can you talk about that a little bit?

還有一個問題。因此，當我們召開最後一次電話會議時，已經是該季度的一半了，有任何跡象表明這一點。管理階層什麼時候意識到這些問題？或者這裡是否存在差距並認識到問題。你能談談這個嗎？

Yeah, we can talk about that a little bit. I think these are issues that came up in the middle at the end of December, primarily and their day was a little bit of a snowball effect. And I think the point I'd really like to make about this is that we -- I have a lot of experience dealing with this kind of technical problem. And one of the worst things we can do is trying to work provide a quick fix.

是的，我們可以稍微討論一下。我認為這些問題是在 12 月底中旬出現的，主要是他們的日子有點滾雪球效應。我認為我真正想表達的一點是，我們——我在處理此類技術問題方面擁有豐富的經驗。我們能做的最糟糕的事情之一就是試圖提供快速解決方案。

And what we usually find when we do that sort of thing is that we pay for it in spades down the road. So we didn't approach things this way. We spent significantly more resources in dealing with this problem. And unfortunately, in the short run, it's a little bit more costly to do things that way. But I think that by doing that, we're able to contain the problem and we have a lot of confidence that we won't have additional problems down the road.

當我們做這類事情時，我們通常會發現我們會為此付出高昂的代價。所以我們沒有以這種方式處理事情。我們花了更多的資源來處理這個問題。不幸的是，從短期來看，這樣做的成本會更高一些。但我認為，透過這樣做，我們能夠控制問題，我們有信心今後不會再有其他問題。

Okay. And is this a last call, you talked about targeting ultimately, you know, 50% margins within six months of the year. Does this change any of that?

好的。這是最後一次通話嗎？這會改變什麼嗎？

Well, no, it doesn't change any of that, but I would like to discuss that a little bit. You know, we certainly used the right words. We target a gross margin of 50%, and we're continuing to do that, I tried to talk a little bit about that a few minutes ago, but I think we do need to understand that. We know we're in a situation at this point in time where we have a growing market and our technology is sound and needed. And in many cases, there's very little competition under those conditions.

嗯，不，這不會改變任何事情，但我想稍微討論一下。你知道，我們確實用了正確的字。我們的毛利率目標是 50%，我們將繼續這樣做，幾分鐘前我試著談論這個問題，但我認為我們確實需要理解這一點。我們知道，目前我們所處的情況是，我們的市場不斷成長，我們的技術也很完善且需要。在許多情況下，在這種情況下競爭很少。

We can attain potentially a 50% gross margin and sometimes even better, but we can't always do that. And when there's competition, then obviously it becomes more difficult to do that. And of course, as we have been talking about, there will always be technical challenges. And so we certainly have to expect that there will be some wiggles in the gross margin as we deal with those kind of things.

我們可以實現 50% 的毛利率，有時甚至更好，但我們並不總是能做到這一點。當存在競爭時，顯然這樣做會變得更加困難。當然，正如我們一直在談論的，技術挑戰總是存在的。因此，我們當然必須預料到，當我們處理這類事情時，毛利率會出現一些波動。

Okay. Appreciate the time guys. Let me jump back in the queue. I might have one more in a bit. Thanks.

好的。珍惜時間，夥計們。讓我插回到隊列中。過一會兒我可能還會再有一個。謝謝。

Marcel Herbst, Herbst Capital.

馬塞爾·赫布斯特，赫布斯特資本。

Hello, good afternoon and thank you for taking my question, which is about GPS satellites. I understand that the space system command has put a major focus on improving the current Medium Earth Orbit GPS constellation. And this would complement from what I understand older GPS 3 and GPSVR programs. I was wondering if you consider such GPS constellations an opportunity or a future growth driver in how far involved, et cetera?

您好，下午好，感謝您提出我的問題，這是關於 GPS 衛星的問題。據我了解，太空系統司令部將主要重點放在改進目前的中地球軌道 GPS 星座。這將補充我對舊 GPS 3 和 GPSVR 程式的理解。我想知道您是否認為此類 GPS 星座是一個機會或未來的成長動力，涉及程度等？

Yeah, we certainly consider a future opportunity. And in fact, we have a lot of ongoing activity in this regard, I think what you're talking about is an effort, a space systems command, which is responsible for GPS to field, a new set of satellites, which would orbit and similar orbits, but would be designed a little bit differently than the current GPS satellites.

是的，我們當然會考慮未來的機會。事實上，我們在這方面有很多正在進行的活動，我認為你所說的是一種努力，一個空間系統指揮部，負責 GPS 現場，一組新的衛星，它將在軌道上運行和類似的軌道，但設計與目前的GPS 衛星略有不同。

The current GPS satellites are designed, the satellites that are being launched at this point in time are designed to have a lifetime in space of 15 years earlier, GPS satellites were only designed to have a lifetime of about 7.5 years, but some of those satellites are still working after 25 years. So the new approach that is being pushed at this point in time, is satellites with a lifetime of three years in space. And there's even an acceptance of the idea that not all of the satellites will even last for three years.

目前的GPS衛星的設計，此時發射的衛星的設計壽命是15年之前的，GPS衛星的設計壽命僅為7.5年左右，但其中一些衛星25年後仍在工作。因此，目前正在推動的新方法是在太空中使用壽命為三年的衛星。甚至有人接受這樣的想法：並非所有衛星都能持續三年。

Of course, along with this, there's a desire to be able to launch those satellites much more rapidly than that is the satellites which have been launched to date and there's of course, along with that, the desire for those satellites be a lot less expensive. So we're actively participating, we have had conversations with the people from the space systems command related to this.

當然，除此之外，人們還希望能夠比迄今為止發射的衛星更快地發射這些衛星，當然，人們也希望這些衛星的價格便宜得多。所以我們正在積極參與，我們已經與太空系統司令部的相關人員進行了對話。

And we're actively pursuing some of the early attempts at prototype satellites and obviously the atomic clocks that go on them. So yes, we're interested and we're actively involved, and we see it as potentially a very important part of our future.

我們正在積極進行一些原型衛星的早期嘗試，顯然還有衛星上的原子鐘。所以，是的，我們很感興趣並且積極參與，我們認為它可能是我們未來的一個非常重要的部分。

And that sounds really great. And can you quantify the opportunity for us in some way?

聽起來真的很棒。您能以某種方式量化我們的機會嗎？

It's pretty hard to do that at this point in time because, we the way things are being advertised to us at this point is being put forward in phases. And the initial phases are pretty small in terms of quantities of things. So but I think over the next two years, we'll start to get a much better feeling about where all of this is going.

目前很難做到這一點，因為此時向我們宣傳的方式是分階段提出的。就事物的數量而言，初始階段相當小。所以，但我認為在接下來的兩年裡，我們將開始更了解這一切的發展方向。

Michael Eisner, Frequency.

麥可艾斯納，《頻率》。

I think you said none of this was the three November projects. That's correct?

我想你說過這都不是 11 月的三個項目。這是正確的嗎？

That's correct.

這是正確的。

Go ahead, I'm sorry.

繼續吧，對不起。

Yes, the losses for the quarter have nothing to do with the contracts that were awarded in November.

是的，該季度的虧損與 11 月授予的合約無關。

So those are still on schedule.

所以這些仍然按計劃進行。

Those are still on schedule, yes.

這些仍然按計劃進行，是的。

Great. And then you have the revenue part of those projects that you did for the quarter?

偉大的。然後你有本季所做的那些專案的收入部分嗎？

Yes, yes. And that will continue to be the case going forward. The initial phase of these programs the revenue is relatively minimal, mostly through procuring parts. And that doesn't translate into significant revenue and still we start doing something with those parts, but we're sort of shifting into high gear on one of those programs, in particular on second one is not far behind. So we'll start to see a significant revenue due to those programs as we go forward.

是的是的。未來的情況仍將如此。這些計劃的初始​​階段收入相對較少，主要是透過採購零件。這並沒有轉化為可觀的收入，我們仍然開始對這些部件做一些事情，但我們正在加速其中一個項目，特別是第二個項目也緊隨其後。因此，隨著我們的推進，我們將開始看到這些計劃帶來的可觀收入。

In fourth-quarter?

第四季？

Yes.

是的。

Is the company in the project? I guess there was something new that get you had problems with is the client upset?

公司在專案中嗎？我想有一些新的事情讓你遇到了問題，客戶會感到不安嗎？

Well, I don't think anybody is jumping up and down for joy because of it. But I think we're working with our customer and I think we have things under control.

好吧，我認為沒有人會因此而高興得跳起來。但我認為我們正在與客戶合作，我認為我們已經控制了事情。

Is that was that a bigger part of the $67 million backlog or the new part with less $17 million?

這是 6700 萬美元積壓訂單中較大的一部分，還是 1700 萬美元以下的新部分？

No, no, it wasn't any or so. The increase in backlog wasn't involved in that. There's a program that we've been working on for some time.

不，不，不是這樣的。積壓的增加並未涉及其中。有一個項目我們已經研究了一段時間了。

I'm not sure if you can comment where the big increase came from.

我不確定您是否可以評論一下大幅增長的來源。

I don't think it's appropriate to go into any details. You have to understand that our customers don't like us to talk about that details of their programs.

我認為不宜討論任何細節。您必須了解，我們的客戶不喜歡我們談論他們計劃的細節。

I can appreciate the project and the problem is mostly we are resolved and the cost of mostly accounted for.

我可以欣賞這個項目，問題大部分已經解決，大部分成本都被考慮在內。

Yeah, the costs are definitely accounted for and the problems are resolved. That's correct.

是的，成本肯定是計算出來的，問題也解決了。這是正確的。

So you'd be back on schedule, not schedule, but in this quarter before you should be okay?

所以你會按計劃回來，不是按計劃，而是在本季度之前你應該沒問題吧？

Yes.

是的。

Tim Hasara, Sinnet Capital.

提姆·哈薩拉，光環新網資本。

Yes, just with respect to the three new contracts, how are they going to go into backlog here? Exactly, I assume the full amount hasn't put in there given the value of the three?

是的，就這三份新合約來說，這裡怎麼會積壓呢？確切地說，考慮到這三個的價值，我認為還沒有全額投入？

Correct. So our backlog is fully funded. So as the programs get funded, that additional amounts will be added to backlog. And then the revenue obviously taken on the program subtracted from backlog.

正確的。所以我們的積壓資金是充足的。因此，隨著項目獲得資助，額外的資金將被添加到積壓中。然後，該計劃的收入顯然會從積壓訂單中減去。

So these four programs, as we get them, were typically funded for a fraction of the total contract amount. And that fraction that we're funded for is what goes into backlog.

因此，據我們所知，這四個項目的資金通常只佔合約總額的一小部分。我們獲得資助的那部分是積壓的。

Frank Wocinski, Private Investor.

法蘭克‧沃辛斯基，私人投資者。

Hi. Thanks for taking the call. I get a couple of things, but mainly all these conference calls, concentrate on the satellite business, which is justifiable. That's where a lot of the growth is. But Zyfer seems to be coming along extremely well. In fact, it's over half your business for the nine-months, I guess. Could you bring us up-to-date on what's going on there? How much of that, is a backlog business as opposed to a turns business.

你好。感謝您接聽電話。我得到了一些信息，但主要是所有這些電話會議都集中在衛星業務上，這是合理的。這就是大量增長的地方。但 Zyfer 似乎進展得非常順利。事實上，我猜這九個月裡你的一半以上的業務都在這上面。您能為我們介紹一下那裡發生的最新情況嗎？其中有多少是積壓業務而不是周轉業務。

So it's a some of each, I think they turn things over a lot more rapidly than we do in the satellite business. I don't have any specific numbers off the top of my head. There are a couple of programs at Zyfer which are longer term, but they have a tremendous amount of business, which is essentially off-the-shelf products on an as needed basis. I'm not sure that answers your question, but --

所以這是兩者兼而有之，我認為他們的轉變速度比我們在衛星業務中快得多。我腦子裡沒有任何具體數字。Zyfer 有幾個長期計劃，但它們擁有大量業務，基本上是按需提供的現成產品。我不確定這能回答你的問題，但是--

Yeah, I guess the question basically is how predictable is that Zyfer business? I mean, it's been growing very, very nicely over the last couple of years. And how predictable is it. And what kind of margins? I think when you're talking about 50% margins, you're talking corporate-wide or just in the satellite business?

是的，我想問題基本上是 Zyfer 業務的可預測性如何？我的意思是，在過去幾年裡它的成長非常非常好。這是多麼可預測的事。什麼樣的利潤？我認為當您談論 50% 的利潤率時，您是在談論整個公司還是只是在衛星業務中？

Well, we're talking corporate-wide.

好吧，我們正在談論整個公司。

So the margins right for it must be pretty good on a gross basis too then?

那麼，從整體來看，它的利潤率也一定相當不錯吧？

They are. Yes.

他們是。是的。

And is that and how predictable is that, is that something that you can model out pretty well or because it's so much of a turns business, it's more variable.

這是可以預測的嗎？

Well, it's potentially more variable, I think has been pretty predictable for the last couple of years. But yeah, it is potentially more variable, obviously, in changing economic conditions and so forth.

嗯，它可能會有更多的變化，我認為在過去的幾年裡這是相當可預測的。但是，是的，顯然，隨著經濟條件等的變化，它可能會更加多變。

And is most of that business said at DOD or government related?

國防部或政府所說的大部分內容都與此有關嗎？

Yes.

是的。

We have reached the end of the question-and-answer session, and I will now turn the call over to Thomas for closing remarks.

問答環節已經結束，現在我將把電話轉交給湯瑪斯做總結發言。

All right. I'd just like to thank everybody for participating in this call, and we'll talk again in another quarter. Thank you very much.

好的。我只想感謝大家參與本次電話會議，我們將在下一個季度再次討論。非常感謝。

This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，您現在可以掛斷電話了。感謝您的參與。