Frequency Electronics Inc (FEIM) 2025 Q3 法說會逐字稿

Greetings and welcome to the Frequency Electronics third quarter fiscal '25 earnings release conference call. (Operator Instructions). As a reminder, this conference is being recorded.

大家好，歡迎參加頻率電子 25 財年第三季財報發布電話會議。（操作員指令）。提醒一下，本次會議正在錄製中。

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 1,995. Such statements inherently involve uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would 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.

根據 1995 年《私人證券訴訟改革法》的安全港條款，本公司在本次電話會議中做出的任何有關未來的聲明均構成前瞻性聲明。此類陳述本身涉及不確定性，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已包含在公司的新聞稿中，並在公司向美國證券交易委員會提交的定期報告中進行了詳細說明。

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

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。現在我很高興向大家介紹主持人、總裁兼執行長 Thomas Mcclelland。

Good afternoon, everyone. The third quarter of our fiscal year was another excellent financial quarter for the company. For both the quarter and the year-to-date, revenue, gross margin, and operating income have grown substantially. The results reflect continued solid growth in our core businesses which show every indication of continuing with our backlog still at a historically high level.

大家下午好。本財年第三季對於公司來說又是一個出色的財務季度。本季和年初至今，收入、毛利率和營業收入均大幅成長。業績反映出我們的核心業務持續穩健成長，種種跡象顯示我們的積壓訂單仍處於歷史高點。

In fact, this was the highest revenue quarter for FEI in 10 years. The increase relative to recent quarters, which have also shown an uptrend as compared to recent years, is partially due to the progress made on deliveries related to a specific program, as well as conversion of our historically high backlog into revenue in this quarter. That specific program is expected to contribute additionally over the next few quarters as we deliver additional units, and we anticipate similar successor programs.

事實上，這是 FEI 10 年來收入最高的一個季度。與最近幾季相比，這一增長也呈上升趨勢，部分原因是特定項目相關的交付取得了進展，以及本季度我們歷史上最高的積壓訂單轉化為收入。隨著我們交付更多單位，該特定計劃預計將在未來幾季做出額外貢獻，我們預計還會有類似的後續計劃。

While we do not expect every near-term quarter to look exactly like this, especially given some of the uncertainty in Washington, we do believe that we have demonstrated meaningful revenue and profitability improvement over the past few years. And that are increasing strategic importance in the industry and exposure to larger addressable markets such as proliferated satellites and quantum sensing sets us up to continue to deliver higher levels of revenue and profitability in the future.

雖然我們並不期望每個近期季度都完全如此，特別是考慮到華盛頓的一些不確定性，但我們確實相信，在過去幾年中，我們的收入和盈利能力已經實現了有意義的提升。這些在產業中具有越來越重要的戰略意義，並且接觸到更大的可尋址市場（例如激增的衛星和量子感測），使我們能夠在未來繼續提供更高水準的收入和獲利能力。

Any given quarter can show variability, but we believe our upward trajectory will continue and based on anticipated future winds may do so at a faster pace in the medium term than what we have recently experienced. In other words, while the market focuses on near term industry clouds, we see a future that is bright and actually getting brighter. I've discussed in the past the changes occurring in the space industry.

任何一個季度都可能出現變化，但我們相信我們的上升軌跡將會持續下去，並且根據對未來風向的預期，中期上升速度可能會比我們最近經歷的更快。換句話說，儘管市場關注的是短期產業陰雲，但我們看到未來是光明的，而且實際上會越來越光明。我過去曾討論過航太產業正在發生的變化。

In particular, the proliferated satellite concept where lower cost, faster delivery, and higher volume are paramount. Some of our current satellite programs have challenged FEI to demonstrate the ability to deliver space hardware in less than half the time. That would historically have been required. We have in turn attempted to inspire our workforce to meet these challenges.

尤其是日益普及的衛星概念，其中更低的成本、更快的交付和更高的容量至關重要。我們目前的一些衛星專案對 FEI 提出了挑戰，要求證明自己有能力在不到一半的時間內交付太空硬體。從歷史上看，這是必須的。我們反過來試圖激勵我們的員工應對這些挑戰。

As it turns out, there's a good chance that over the next few months we'll not only meet but beat some of these expectations, but what has truly impressed me is the level of engagement and dedication to meeting these goals that's exhibited by our employees on a daily basis. In all honesty, I'm more proud of this than the financial results because I believe it's so important to our continued success.

事實證明，在接下來的幾個月裡，我們很有可能不僅會滿足而且會超越其中的一些期望，但真正讓我印象深刻的是我們的員工每天表現出的參與度和為實現這些目標而奉獻的程度。說實話，我對此比財務表現更感到自豪，因為我相信這對我們持續的成功至關重要。

Success breeds success, and an engaged and motivated workforce not only allows us to meet our customers' expectation, but also creates an environment which allows us to attract the most talented and capable scientists and engineers, fueling our growth and future success.

成功孕育成功，一支積極參與、積極進取的員工隊伍不僅使我們能夠滿足客戶的期望，而且還創造了一個環境，​​使我們能夠吸引最有才華、最有能力的科學家和工程師，推動我們的成長和未來的成功。

We've established an environment where our people share in our success as a company, and we will work hard to continue this going forward. Our financial trajectory is buoyed by the talent, dedication, and motivation of our workforce, and this magnifies our confidence in the financial growth we're projecting.

我們已經建立了一個讓員工分享公司成功的環境，我們將努力繼續保持這種狀態。我們的財務軌跡受到員工的才能、奉獻精神和積極性的推動，這增強了我們對所預測的財務成長的信心。

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

現在我將把事情交給我們的財務長史蒂文·伯恩斯坦 (Steven Bernstein)；他將向您介紹財務細節。史蒂夫？

Thank you, Tom, and good afternoon. So the nine months ended January 31, 2025, consolidated revenue was $49.8 million compared to $39.7 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 $28.8 million or 58% compared to $16.3 million or 41% in the same period of the prior fiscal year.

謝謝你，湯姆，下午好。因此，截至 2025 年 1 月 31 日的九個月，綜合營收為 4,980 萬美元，而上一財年同期為 3,970 萬美元。收入組成如下：來自商業和美國政府衛星計畫的營收約為 2,880 萬美元，佔 58%，而上一財年同期為 1,630 萬美元，佔 41%。

Revenues on satellite payload contracts are recognized primarily under the percentage of completion method and are recorded only in the FEI New York segment. Revenues from non-space US government and DOD customers, which are recorded in both the FEI New York and FEI ZAR segments, were $19.5 million compared to $21.1 million in the same period of the prior fiscal year and accounted for approximately 39% of consolidated revenue compared to 53% for the prior fiscal year.

衛星有效載荷合約的收入主要按照完成百分比法確認，並且僅記錄在 FEI 紐約分部。來自非太空美國政府和國防部客戶的收入（記錄在 FEI 紐約和 FEI ZAR 部門）為 1,950 萬美元，而上一財年同期為 2,110 萬美元，約佔合併收入的 39%，而上一財年為 53%。

Other commercial industrial revenues were $1.5 million and $2.3 million for the nine months ending January 31st, 2025 and 2024 respectively. The significant increase in revenue for the period was primarily related to an increase in US government customer sales for satellite programs. With the nine months ending January 31, 2025, gross margin and gross margin rate increased as compared to the same period in fiscal year 2024. This is partially due to a large space program that completed major milestones during the nine months ended January 31, '25, as well as other legacy programs performing well.

截至 2025 年 1 月 31 日及 2024 年 1 月 31 日的九個月，其他商業工業收入分別為 150 萬美元及 230 萬美元。本期間收入的大幅成長主要與美國政府客戶衛星專案銷售額的增加有關。截至2025年1月31日止九個月，毛利率及毛利率與2024財年同期相比有所增加。這部分是由於大型太空計畫在截至 2025 年 1 月 31 日的九個月內完成了重要里程碑，以及其他遺留計畫表現良好。

For the nine months ending January 31st, 2025, and 2024, SG&A expenses were approximately 19% of consolidated revenues in each period. The increase in SG&A expenses during the nine months ending January 31st, 2025, was mainly related to an increase in payroll related expenses including stock compensation, incentive approvals based on company performance, cost from the realignment of employees from overhead to SG&A and the cost related to Frequency Electronics' first quantum summit in October 22,024.

截至 2025 年 1 月 31 日及 2024 年 1 月 31 日的九個月中，銷售、一般及行政費用 (SG&A) 約佔每個期間合併收入的 19%。截至 2025 年 1 月 31 日的九個月期間，銷售、一般及行政費用 (SG&A) 的增加主要與工資相關費用的增加有關，包括股票薪酬、基於公司業績的激勵批准、員工從間接費用重新調整到銷售、一般及行政費用 (SG&A) 的成本以及與 2024 年 10 月 2 日及行政費用 (SG&A) 的成本以及與 2024 年 10 月 2 日及行政費用 (SG&A) 的成本以及與 2024 年 10 月 2 日首次的量子高峰會成本。

The company believes the costs related to SGNA will remain fairly constant throughout the remainder of the fiscal year 2025. R&D expense for the nine months ending January 301, 2025 increased to $4.5 million from $2.3 million, an increase of $2.2 million and we're approximately 9% and 6% respectively of consolidated revenue. The change in R&D expenditures to the nine months ending January 31, 2025, as compared to prior year periods was primarily due to a focus on advances and modernization of products.

該公司認為，在 2025 財年剩餘時間內，與 SGNA 相關的成本將保持相當穩定。截至 2025 年 1 月 301 日的九個月的研發費用從 230 萬美元增加到 450 萬美元，增加了 220 萬美元，分別佔合併收入的約 9% 和 6%。截至 2025 年 1 月 31 日的九個月，研發支出與去年同期相比發生變化，主要是因為重點關注產品的進步和現代化。

The company plans to continue to invest in R&D in the future to keep its prices at the state of the art. However, we expect the actual quarterly spend to vary. So the nine months ending January 2025, the company recorded an operating income of $8.5 million compared to an operating income of $2.5 million in the prior year. The increase is partially due to a large space program that completed major milestones in its production during the nine months ending January 31, 2025, as discussed above.

該公司計劃未來繼續投資研發，以保持其價格最先進的水平。然而，我們預計實際季度支出會有所不同。因此，截至 2025 年 1 月的九個月，該公司的營業收入為 850 萬美元，而前一年的營業收入為 250 萬美元。這一增長部分歸因於大型太空計劃，該計劃在截至 2025 年 1 月 31 日的九個月內完成了生產過程中的重大里程碑，如上所述。

However, the increase also is the result of successful efforts of the company to complete complex programs and to work more efficiently in bidding, building, and testing our products. The company believes the improved operating income results for the first nine months of the fiscal year are a tangible outcome of these efforts. The company seeks to continue to implement changes to further improve its performance. Other income can be derived from reclaiming of metals, refunds, interest on deferred trust assets, or sale of fixed assets, interest expenses related to the deferred compensation payments made to retired employees.

然而，這一成長也是公司成功完成複雜專案以及在投標、製造和測試產品方面更有效率工作的結果。該公司認為，本財年前九個月營業收入的改善是這些努力的具體成果。該公司尋求繼續實施變革以進一步提高其績效。其他收入可以來自金屬回收、退款、遞延信託資產的利息、或固定資產的出售、與支付給退休員工的遞延補償金有關的利息費用。

This yields pre-tax income of approximately $8.9 million compared to $3 million for the prior fiscal year. As to the tax provision, the company weighed all available positive and negative evidence, and it's more likely than not Q3 2025 deferred tax asset realization assessment. Frequency no longer has cumulative losses in recent years and has earnings in the three and nine months ended January 31, 2025. The company is utilizing its operating loss carry forwards and is reducing its net deferred tax assets.

這產生了約 890 萬美元的稅前收入，而上一財年的稅前收入為 300 萬美元。至於稅項撥備，該公司權衡了所有可用的正面和負面證據，而 2025 年第三季遞延稅項資產實現評估的可能性較大。頻率近年來不再累積虧損，並且在截至 2025 年 1 月 31 日的三個月和九個月中實現盈利。該公司正在利用其營運虧損結轉並減少其淨遞延稅務資產。

For the nine months ending January 31st, 2025, the company recorded an income tax benefit of $11.6 million which includes a discreet tax benefit of $11.9 million. The calculation of the overall income tax provision consists of a discrete tax benefit for the release of the valuation allowance offset by current US federal and state income taxes. For the nine months ending January 31, 2024, the company recorded an income tax provision of $19,000.

截至 2025 年 1 月 31 日的九個月內，該公司記錄了 1,160 萬美元的所得稅收益，其中包括 1,190 萬美元的離散稅收收益。整體所得稅準備金的計算包括因釋放估價準備而產生的單獨稅收優惠，該優惠由當前美國聯邦和州所得稅抵消。截至 2024 年 1 月 31 日的九個月，該公司記錄了 19,000 美元的所得稅準備金。

Consolidated net income for the nine months ending January 31st, 2025 was $20.5 million or $2.14 per share compared to $3 million or $0.32 per share in the previous fiscal year. Our fully funded backlog at the end of January 2025 was approximately $73 million compared to approximately $78 million for the previous fiscal year end April 30, 2024. The company's balance sheet continues to reflect a strong working capital position of approximately $27 million at January 31, 2025, and a current ratio of approximately 2.2% to 1%.

截至 2025 年 1 月 31 日的九個月的綜合淨收入為 2,050 萬美元或每股 2.14 美元，而上一財年為 300 萬美元或每股 0.32 美元。截至 2025 年 1 月底，我們的全額資助積壓訂單約為 7,300 萬美元，而截至 2024 年 4 月 30 日的上一財政年度的積壓訂單約為 7,800 萬美元。該公司的資產負債表繼續反映出強勁的營運資本狀況，截至 2025 年 1 月 31 日約為 2,700 萬美元，流動比率約為 2.2% 至 1%。

Cash went down by approximately $12.8 million since year end. Of this decrease, the dividend paid in Q2 accounted for approximately $9.6 million. The additional $3.2 million dollar decrease was related to timing of billings and revenue. Contract liabilities went down $7.4 million quarter-over-quarter and $6.4 million since year end.

自年底以來，現金減少了約 1,280 萬美元。其中，第二季支付的股息減少約 960 萬美元。另外 320 萬美元的減少與帳單和收入的時間有關。合約負債環比下降 740 萬美元，自年底以來下降 640 萬美元。

Contract liabilities are generated as part of the [606] accounting when the buildings are in excess of revenue taken on specific programs. We expect that cash will fluctuate quarter-to-quarter. However, we expect it to trend higher over time. 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.

當建築物收入超過特定項目的收入時，合約負債將作為 [606] 會計的一部分產生。我們預計現金將逐季度波動。然而，我們預計它會隨著時間的推移而呈上升趨勢。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 Tom, and we look forward to your questions.

我會把電話轉回給湯姆，我們期待您的提問。

Thanks, Steve. We're now ready to take any questions.

謝謝，史蒂夫。我們現在準備好回答任何問題。

(Operator Instructions) George Marema, Pareto Ventures

（操作員指示）George Marema，Pareto Ventures

Hey, thanks for taking the call. Hey, Tom. I was curious, I was curious, like, congrats on the quarter. I was curious on quantum sensing, a little bit more color on that. And also on your need of presentation, you kind of presented several different products kinds of being feathered out over the next, several years. So the first thing is quantum sensing sort of the first product set hat's coming out. And do you have actual product yet and you anticipate any revenue in 2025 calendar year at all?

嘿，謝謝您接聽電話。嘿，湯姆。我很好奇，我很好奇，就像，恭喜本季。我對量子感測很有興趣，想了解更多細節。另外，根據您的簡報需要，您展示了未來幾年將推出的幾種不同的產品。因此，首先推出的是量子感測類的第一款產品。您已經有實際產品了嗎？您預計 2025 年會有收入嗎？

So, we do not have any products at this point in time. However, we're anticipating several development contracts over the next year or two, and those will be generating some revenue. I think there are a couple of specific products that we're pretty excited about. I think I have mentioned them in the past, but just to recount that, -- the first thing that we see on the horizon is a magnetometer. And we are investigating a couple of approaches to building these devices.

所以，我們目前還沒有任何產品。然而，我們預計未來一兩年內將有幾份開發合同，這些合約將產生一些收入。我認為有幾款特定的產品令我們非常興奮。我想我以前提到過它們，但只是想重述一下——我們在地平線上看到的第一件東西就是磁力儀。我們正在研究幾種製造這些設備的方法。

These magnetometer is a device to measure the magnetic field, and that is getting a lot of interest at this point in time because it can be used in GPS denied environments to perform navigation, not with the same kind of accuracy as GPS, but by utilizing magnetic field maps of the Earth's surface, one by measuring the magnetic field precisely, one can navigate with a certain resolution on the surface of the earth. Another major use of magnetometers is in so-called magnetic anomaly detection or MAD.

這些磁力儀是一種測量磁場的裝置，目前引起了人們的廣泛興趣，因為它可以在 GPS 無法定位的環境中用於導航，雖然精度不如 GPS，但透過利用地球表面的磁場圖，透過精確測量磁場，可以在地球表面以一定的分辨率進行導航。磁力儀的另一個主要用途是所謂的磁異常探測或MAD。

And one of the main purposes for this is a detection of submarines. Another quantum sensor that we're interested in is so-called Rydberg sensor and this is something that is very utilizes the same building blocks as our atomic clocks. So it contains a small cell with rubidium or cesium vapor. But we detect very high energy levels of the rubidium or cesium atoms. And by doing that one can create a receiving antenna that can be tuned over a wide frequency range.

其主要目的之一就是探測潛水艇。我們感興趣的另一種量子感測器是所謂的里德堡感測器，它利用與我們的原子鐘相同的構造模組。因此它包含一個裝有銣或銫蒸氣的小電池。但我們檢測到銣原子或銫原子的能階非常高。透過這樣做，人們可以創建一個可以在很寬頻率範圍內調諧的接收天線。

And what's very attractive about that is that typically antennas are size to the wavelength, associated with the signals that they're trying to detect. And so those antennas can be very large. Typical wavelengths are potentially many feet long, and so the antennas are large. But with a Rydberg sensor, the size of the Completely decoupled from the wavelength. And so we can use a small cell just as we use in our atomic clocks, maybe one centimeter cube in order to detect the signals.

這一點非常吸引人，因為天線的尺寸通常與波長有關，與它們試圖檢測的訊號相關。所以這些天線可以非常大。典型的波長可能長達數英尺，因此天線很大。但使用里德伯感測器，其尺寸與波長完全脫鉤。因此，我們可以使用一個小電池，就像我們在原子鐘中使用的一樣，也許是一立方厘米，以檢測訊號。

So there's the potential of making very small compact antennas which is very, very attractive for many applications. So those are the two primary quantum sensors in the near term that we're looking at, but there are quite a few variations on those ideas that are of interest and of course there are other sensors also that we will consider as we go forward.

因此，製造非常小的緊湊型天線是有可能的，這對於許多應用來說非常有吸引力。因此，這些是我們近期正在研究的兩個主要量子感測器，但這些想法還有相當多令人感興趣的變體，當然，我們也會在未來考慮其他感測器。

Is that part of the, -- in the press release that you mentioned, you see plenty of new business opportunities anticipate over the next several few quarters. Is that part of lots of sensing or is that more the legacy business that's referring to?

這是其中的一部分嗎？在您提到的新聞稿中，您看到未來幾季預計會出現大量新的商業機會。這是大量感測的一部分嗎？還是更指的是遺留業務？

It's potentially a little of both. The only I put just a little bit of a qualification on that, well, I think none of us have a really good crystal ball over what's going on in Washington over the next few months. But we're cautiously optimistic that both in, both the case of legacy systems. And the quantum sensors that that we'll have some new business coming our way.

可能兩者都有一點。我對此只是稍微加了一點限定，嗯，我認為我們誰也無法真正準確地預測未來幾個月華盛頓將會發生什麼。但我們謹慎樂觀地認為，這兩種情況都是遺留系統的情況。量子感測器將為我們帶來一些新業務。

Take your time.

慢慢來。

(Operator Instructions) Michael Eisner, Private Investor.

（操作員指示）邁克爾·艾斯納，私人投資者。

Hey, great job.

嘿，幹得好。

Thanks, Mike.

謝謝，麥克。

Thank you. In the backlog at $73 million is any of that from the $11 million contract I think you got in November or December of last year?

謝謝。7,300 萬美元的積壓訂單中是否有來自您去年 11 月或 12 月簽訂的 1,100 萬美元合約的部分？

Yes, definitely.

是的，當然。

Oh, some of it is in that number.

哦，有些就在那個數字裡。

Yes.

是的。

Alright, actually, am I correct R&D went down from last quarter percentage wise.

好吧，實際上，我說得對嗎？研發費用從上個季度的百分比來看確實下降了。

I think it went down just a little bit

我認為它只是下降了一點

Not dollar percentage wise.

不是以美元百分比計算的。

Percentage wise, I think it went down like 2% or something. I just want to confirm with my numbers.

從百分比來看，我認為下降了 2% 左右。我只是想用我的數字來確認一下。

I think maybe 1%, but yeah.

我認為可能是 1%，但是是的。

Alright, let me just look at my notes. Are we working with all four prime contractors on, astronus. And the last quarter we were working with three.

好吧，讓我看一下我的筆記。我們是否與 Astronus 的所有四個主要承包商進行合作？上個季度我們與三家公司合作。

So I think you're referring to resilient GPS.

所以我認為您指的是彈性 GPS。

Yes, our GPS.

是的，我們的 GPS。

Our GPS, actually, we understand that there are only three at this point in time. One of the four has been cut off, -- has been discontinued from the effort and of the three remaining, we are actively participating with the two of them. And we believe that we are under consideration for the third, although we haven't had any active communication on that one. The team that was discontinued is one that we did not have any communication with whatsoever.

實際上，我們的 GPS 知道此時此刻只有三個。四個人中，有一個人已被切斷努力，而剩下的三個人中，有兩個人我們正在積極參與。我們相信我們正在考慮第三個，儘管我們還沒有就此進行任何積極的溝通。被解散的團隊是我們與任何團隊都沒有任何關聯的團隊。

Alright. So basically, you're maybe the same point as last call or maybe you drop ahead since you made a contract with the third, contractor. Now, do you see at this time have do you see any change from the government at this time or there's no change yet? Because I know you can't time it.

好吧。所以基本上，您可能與上次通話的點數相同​​，或者由於與第三個承包商簽訂了合同，因此您可能領先。現在，您是否看到政府現在有任何變化，或者目前還沒有變化？因為我知道你無法計算時間。

Well, we have seen, no, nothing specific. That, certainly no nothing specific in a negative sense regarding government activity at this point in time, I think we continue to believe based on the information that we have at this point that we were anticipating that some of the programs where we expect to get in the near term may get pushed out a little bit in time, but we don't anticipate that any of the programs that are of interest to us will be eliminated.

嗯，我們已經看到了，沒有，沒有什麼具體的東西。當然，目前還沒有任何關於政府活動的具體負面消息，我認為，根據我們目前掌握的信息，我們仍然相信，我們預計短期內將實施的一些項目可能會被稍微推遲，但我們預計我們感興趣的任何項目都不會被取消。

So that's kind of our worst-case view of things at this point in time, but a lot of things going on. And as we all know, that could change one way or the other tomorrow.

這是我們目前對事情最糟糕的看法，但很多事情仍在發生。眾所周知，明天這種情況可能會改變。

Alright. Anything could change in this line of work, but eventually they're going to have to go forward with, this all these new things they're working on.

好吧。在這一行，任何事情都可能發生變化，但最終他們必須繼續前進，繼續他們正在研究的所有這些新事物。

We believe that in the long run, that that we still see a growth environment for space and the quantum sensors and other things that we're involved in. So we're pretty bullish about the medium- and long-term markets for our products. We don't see in that sense, we don't see any anything negative, but there's always the potential that individual programs, get juggered around one way or the other.

我們相信，從長遠來看，我們仍然會看到太空、量子感測器以及我們所參與的其他事物的成長環境。因此，我們對我們的產品的中長期市場非常看好。我們沒有從這個意義上看到任何負面影響，但個別項目總是有可能以某種方式被扭曲。

That's the industry you're in basically. I think I had; I think that was it. Alright, good job. I guess that's it. Thank you.

這基本上就是你所處的行業。我想我已經做到了；我想就是這樣了。好的，幹得好。我想就是這樣了。謝謝。

Frank Wisniewski, Private Investor.

弗蘭克·維斯尼夫斯基（Frank Wisniewski），私人投資者。

Hi, thanks for thanks for taking my call or my questions. Firstly, you mentioned quite a bit about the engineering strength, and your ability to cure more scientists and technicians. Is that actually loosening up a bit in this environment?

你好，感謝您接聽我的電話或回答我的問題。首先，您多次提到中國的工程實力，以及中國有能力治癒更多的科技人員。在這種環境下，這實際上會有所放鬆嗎？

Well, I think that. We, for the last year or so, I think we've seen a pretty tight market. And it's a challenge to attract talented scientists and engineers, but, in particular with the US government, we have of course, we work very closely with a number of government labs. And we have seen there's of course more than anything else, a lot of confusion.

嗯，我是這麼認為。在過去一年左右的時間裡，我認為我們看到了相當緊張的市場。吸引優秀的科學家和工程師是一項挑戰，但特別是與美國政府合作，我們當然與許多政府實驗室密切合作。當然，我們也看到，其中存在著許多混亂。

But we, we've in fact had several scientists at the government labs say that they would be willing to make a move at this point in time. So, I think that -- what the way we're looking at it is we think there's a potential for opportunities depending on what goes on with some of the government labs. And I think we're trying to be prepared to act aggressively if and when opportunities show themselves in this regard.

但事實上，我們已經有幾位政府實驗室的科學家表示，他們願意在此時採取行動。所以，我認為——從我們的角度來看，我們認為根據一些政府實驗室的進展情況，存在潛在的機會。我認為，如果出現這方面的機會，我們正準備採取積極行動。

That's good news. I know you also emphasized how you're rewarding your current employees, which is important. Second question, I was glad to see that the non-space DOD and government business sales turned around in the third quarter. Is that a trend that's likely to continue now?

這是個好消息。我知道您也強調如何獎勵現有員工，這很重要。第二個問題，我很高興看到非太空國防部和政府業務的銷售在第三季出現改善。這種趨勢現在有可能持續下去嗎？

I, -- we do anticipate that that's going to continue, I think for the, certainly for the next year, and to potentially longer.

我——我們確實預計這種情況將會持續下去，我認為肯定會持續到明年，甚至可能更長。

Great. And finally, could you bring us up to date on what you're doing in proliferated satellites? You mentioned it, and that's obviously a huge potential market. You mentioned your turnaround time going lower and or decreasing. Well, could you flesh that out a little bit for me, please?

偉大的。最後，您能否向我們介紹一下你們在擴散衛星方面所做的工作？您提到了這一點，這顯然是一個巨大的潛在市場。您提到您的周轉時間正在縮短或減少。好吧，您能為我稍微詳細說明一下嗎？

So I think, there are several things that we're involved in at this point in time. So probably the biggest thing for us is in the classified satellite world. Obviously, there's a limit to what we can talk about in that regard, but we're involved in several programs. And those are very much in this proliferated satellite vein. The emphasis is on smaller, cheaper, and fast delivery.

所以我認為，目前我們參與了幾件事。因此，對我們來說最重要的事情可能是機密衛星領域。顯然，在這方面我們能談論的內容是有限的，但我們已經參與了幾個專案。這些都與不斷擴散的衛星脈絡息息相關。重點在於更小、更便宜、更快速的交付。

With the idea that the space assets instead of having a lifetime of 15 years will have a lifetime of three to five years. And obviously, when the assets have a lifetime of three to five years, we need to be able to replace them in a three-to-five-year time frame. The other, the other. Major proliferated satellite system that we're getting involved in currently is with the SDA, the Space Development Agency.

這個想法是，太空資產的使用壽命將不再是 15 年，而是 3 到 5 年。顯然，當資產的使用壽命為三到五年時，我們需要能夠在三到五年的時間內更換它們。另一個，另一個。我們目前正在參與的主要擴散衛星系統是與太空發展局 (SDA) 合作的。

And we're actually in the process of bidding on some activity on this one as we speak, and, again, this is the, we this is we consider a pretty important one. We're looking at it very carefully. There's the potential that we will need to invest as a company. We feel that this is pretty important going forward. And I think in the long run, there's a huge potential for us, but we need to invest in order to be able to participate in this.

事實上，正如我們所說，我們正在對這方面的一些活動進行競標，而且，我們認為這是一個非常重要的活動。我們正在非常仔細地觀察它。作為一家公司，我們有潛力需要投資。我們認為這對未來發展非常重要。我認為從長遠來看，我們有巨大的潛力，但我們需要投資才能參與其中。

In particular, we need to adapt some of our smaller products that we typically sell for terrestrial applications. We need to adapt those for the space environment. And we have to be able to ensure that they survive the radiation environment in space, the lifetime in space is anticipated to be less, but they still have to survive the radiation environment. And in particular, one of the ways that we make things smaller is by adding a lot of digital circuitry.

特別是，我們需要調整一些通常銷售用於地面應用的小型產品。我們需要使它們適應太空環境。我們必須確保它們能夠在太空輻射環境中生存，雖然它們在太空中的壽命預計會更短，但它們仍然必須在輻射環境中生存。具體來說，我們使物體變小的方法之一就是添加大量數位電路。

And the digital circuitry is inherently sensitive to radiation. So there's a pretty tricky development process that we have to go through to ensure that we have a reliable for those applications. But anyway, those are activities that we're currently involved in.

數位電路本質上對輻射很敏感。因此，我們必須經歷一個相當棘手的開發過程，以確保這些應用程式的可靠性。但無論如何，這些都是我們目前正在參與的活動。

To follow up on that. The other commercial opportunities in the proliferated satellite those two programs that you mentioned sounded both governments.

繼續跟進。您提到的兩個衛星項目中的其他商業機會引起了兩國政府的注意。

Well, there are certainly a number of commercial satellite programs. There's the potential for us to involve, get involved in those, but in general, where we shine is when there are, high stability, high performance kind of requirements. And a lot of the commercial applications have a much lower kind of requirements that don't necessarily involve the hardware that we specialize in.

嗯，確實有很多商業衛星專案。我們有潛力參與其中，但總的來說，我們在有高穩定性、高性能要求時表現突出。許多商業應用的要求要低得多，不一定涉及我們專門的硬體。

So I think that we certainly consider those programs, but I think at this point in time our ability to compete for the absolute lowest cost products where there's no kind of high-performance requirement. Our ability to compete in that arena is pretty limited, and I think we'll look at those things and consider it, but we have to be pretty careful about venturing into that territory.

所以我認為我們當然會考慮這些項目，但我認為目前我們有能力競爭絕對最低成本的產品，而這些產品並沒有任何高性能要求。我們在該領域的競爭能力非常有限，我認為我們會看到這些事情並考慮它，但我們必須非常謹慎地進入該領域。

Okay. And in the high reliability area that you specialize in, particularly in the proliferated satellite area, who is your competition?

好的。在你們擅長的高可靠性領域，特別是在衛星擴散領域，你們的競爭對手是誰？

Well, there are a number of potential competitors. Certainly, I think microchip is probably the most prominent. They have product family called the chip scale atomic clock, [CSAC]. And this is being thrown at a number of these proliferated satellite programs.

嗯，有很多潛在的競爭對手。當然，我認為微晶片可能是最突出的。他們的產品系列稱為晶片級原子鐘，[CSAC]。這對大量激增的衛星計畫來說是一個巨大的打擊。

But I think we have heard, and I think have reason to believe that there are some significant limitations of that product family in the radiation environment of space. And that's something that we're trying to address pretty carefully.

但我想我們已經聽說過，我認為有理由相信該產品系列在太空輻射環境中存在一些明顯的限制。我們正在努力謹慎解決這個問題。

Good. Well. Thank you very much. I look forward to talking to you next quarter.

好的。出色地。非常感謝。我期待下個季度與您交談。

Okay, thank you.

好的，謝謝。

Michael Eisner, Private Investor.

麥可艾斯納，私人投資者。

Hi. At this time, over the years we have the most opportunities going forward.

你好。現在是多年來我們前進的機會最多的時候。

I'm not quite sure I understand. We're working on.

我不太確定我是否理解了。我們正在努力。

I'm sorry.

對不起。

We certainly do have plenty of opportunities at this point in time.

我們現在確實有很多機會。

Well, it sounds like you, the company is getting into more stuff than years ago. Different product lines and all this. So I'm saying is more possible contracts for you going forward.

嗯，聽起來，公司比幾年前涉足了更多領域。不同的產品線等等。所以我的意思是，未來你可能會簽訂更多合約。

Okay, I, -- that's something I haven't tried to evaluate quantitatively in terms of the number of contracts, but I think, our strategy is to, we want to be successful a decade into the future and more. And we feel that in order to do that, we need to update our existing product line and potentially expand into other things, quantum sensors and so forth and so on, as we've discussed.

好的，我還沒有嘗試根據合約數量來量化評估這一點，但我認為，我們的策略是，我們希望在未來十年甚至更長時間內取得成功。我們認為，為了做到這一點，我們需要更新現有的產品線，並可能擴展到其他領域，例如量子感測器等等，正如我們所討論的那樣。

And so in the process of doing that, yes, we're getting into different product lines. And there are certainly additional opportunities that show themselves in those areas.

因此，在此過程中，是的，我們正在涉足不同的產品線。這些領域肯定還存在著更多的機會。

All right, thank you.

好的，謝謝。

Robert Smith, Center of Performance Investing.

羅伯特‧史密斯 (Robert Smith)，績效投資中心。

Thank you. Good afternoon. Thanks for taking my questions and thanks for your leadership time. When you say when you say the company has to look toward increasing investment in these areas, so to speak of hardening. Does the company have the financial resources to do this at the present time?

謝謝。午安.感謝您回答我的問題，也感謝您抽空帶領我。當您說公司必須考慮增加這些領域的投資時，可以說是強化。公司目前是否有足夠的財力來做這件事？

Good question. We do have adequate resources. Obviously, they're finite, but I think, we feel at this point in time that we have adequate resources to invest the way we need to. That could change in the future, but I think we actually have a concern, that we want to be careful and thoughtful in how we invest our resources. And we we're all watching all sorts of changes in Washington. And as we look at proliferated satellites and things like that, the, requirements are changing and the approach that that the government is using is changing on a regular basis.

好問題。我們確實擁有充足的資源。顯然，它們是有限的，但我認為，我們目前覺得我們有足夠的資源來以我們需要的方式進行投資。這種情況將來可能會改變，但我認為我們實際上有一個擔憂，那就是我們希望在如何投資資源方面保持謹慎和深思熟慮。我們都在關注華盛頓的各種變化。當我們看到衛星數量激增等情況時，要求正在發生變化，政府所採用的方法也在定期發生變化。

So we want to be a little bit cautious, and I think, if we had infinite resources at this point, I think it is likely that we would squander a significant amount of those resources given the environment. So I think we feel that we're in a good position financially. We have the resources to invest cautiously and responsibly and in the near term, that's the approach that we're trying to follow.

所以我們要謹慎一點，我認為，如果我們現在有無限的資源，考慮到環境，我們很可能會浪費大量的資源。所以我認為我們的財務狀況良好。我們擁有資源進行謹慎、負責任的投資，短期內，這就是我們試圖遵循的方法。

If the complexion of the business, does that provide opportunities for collaboration?

若業務狀況如此，是否能提供合作機會？

Well, it certainly does, and we're pursuing those rather aggressively at the moment. We are in contact with a lot of government labs and several other companies, and we are actively pursuing teaming agreements. I think our feeling, is that we can tap into the technical expertise.

嗯，確實如此，我們目前正在積極地追求這些目標。我們正在與許多政府實驗室和其他幾家公司聯繫，並積極尋求合作協議。我認為我們的感覺是，我們可以利用技術專長。

At some of the national laboratories and very effectively, learn from the knowledge in in those places, which is really state of the art with respect to atomic clocks and quantum sensors, and there are companies that we're actively pursuing teaming arrangements with in order to buttress our product line.

在一些國家實驗室，我們非常有效地學習那些地方的知識，這些知識在原子鐘和量子感測器方面確實是最先進的，而且我們正在積極尋求與一些公司合作，以支持我們的產品線。

Can you characterize the bidding environment? Is this, is it attracting new entrants or is it the familiar faces?

您能描述一下競標環境嗎？這是在吸引新進者還是吸引熟悉的面孔？

Well, it's a little of both it kind of depends on the program. I think certainly for the proliferated satellite. In that arena, I think, that the part of the goal certainly we're involved in. As I've described earlier in the government programs in this arena. And I think the government has made it clear that they're actively pursuing non-traditional players in terms of the prime contractors, that's very clear.

嗯，兩者都有一點，這取決於程序。我認為對於擴散衛星來說肯定是這樣的。我認為，在那個領域，我們肯定參與了目標的一部分。正如我之前描述的政府在這一領域的計劃。我認為政府已經明確表示，他們正在積極尋求非傳統參與者作為總承包商，這一點非常明確。

I think on the other hand, we're also involved in in legacy space programs. And those I think are much more the usual cast of characters that we're used to over the last couple of decades.

我認為，另一方面，我們也參與了傳統的太空計畫。我認為這些更像是我們過去幾十年來所習慣的常見角色。

Well, thanks again. And good luck going forward again, on your leadership which has been outstanding.

好吧，再次感謝。祝您未來一切順利，您的領導非常出色。

No thanks.

不，謝謝。

George Maroma, Pareto Ventures.

喬治·馬羅馬，Pareto Ventures。

Thanks, a quick one for Steve. Is for this quarter is the fully diluted adjusted earnings per share? Is it about $0.36? Is that correct? Or something different?

謝謝，給史蒂夫一個簡短的答覆。本季的完全稀釋調整後每股收益是多少？大約是 0.36 美元嗎？對嗎？或其他什麼？

Not for this quarter. I don't have this quarter in front of me. I can get it for you. I only have the nine months to date right now.

本季沒有。我面前沒有這個季度。我可以幫你拿到。到現在為止我只有九個月的時間。

Okay. And then for calendar '25 what sort of tax rate are you modeling up? Going forward.

好的。那麼對於 25 年曆，您模擬了什麼樣的稅率呢？繼續前進。

It's hard to say. Because of all the adjustments that we just made with the valuation and everything else, and we still do have NOL. So I don't think it's going to be a normal tax rate yet.

這很難說。由於我們剛剛對估值和其他所有方面進行了調整，我們仍然有 NOL。所以我認為這還不會是正常的稅率。

So just.

太公正了。

If I model for a 10, 15 is that kind of warm you think or.

如果我為 10 建模，那麼 15 就是那種您認為溫暖的。

No, I don't think so. I think it's going to be lower. I think the only major place for paying taxes right now is some federal, but the larger portion is California because they suspended the utilization of NOLs. So that right as year-to-date our expenses approximately $3,00,000.

不，我不這麼認為。我認為這個數字還會更低。我認為目前唯一主要的納稅地點是聯邦政府，但大部分是加州，因為他們暫停了 NOL 的使用。因此，截至目前為止，我們的支出約為 30 萬美元。

Okay.

好的。

So technically whatever we're subject to for California we'll have to pay but the remaining of it is pretty much covered by NOLs.

因此從技術上講，無論我們需要為加州繳納什麼稅款，我們都必須繳納，但其餘部分基本上都由 NOL 承擔。

Okay, thanks for that details, Steve. I'll follow up on that other things.

好的，謝謝你的詳細信息，史蒂夫。我會跟進其他事情。

Okay, not a problem.

好的，沒問題。

Thank you.

謝謝。

Thank you. There were no other questions at this time. I would now like to hand the call back to Thomas Mcclelland for closing remarks.

謝謝。目前沒有其他問題。現在我想把發言權交還給湯瑪斯‧麥克萊蘭，請他作最後發言。

Okay, I think, I don't have anything further to say, but I'd like to thank everybody for participating. And until next time. Thanks

好的，我想我沒有什麼要說的了，但我要感謝大家的參與。下次再見。謝謝

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

謝謝。今天的會議到此結束。此時您可以斷開線路並享受美好的一天。感謝您的參與。