Frequency Electronics Inc (FEIM) 2026 Q2 法說會逐字稿

Greetings, and welcome to the Frequency Electronics second quarter fiscal 2026 earnings release conference call. (Operator Instructions) As a reminder, this conference is being recorded.I will now turn the conference over to your host, Thomas McClelland, President and Chief Executive Officer. Sir, the floor is yours.

各位好，歡迎參加 Frequency Electronics 2026 財年第二季財報發布電話會議。（操作說明）提醒各位，本次會議正在錄音。現在我將會議交給主持人，總裁兼執行長托馬斯·麥克萊蘭。先生，請您發言。

Good afternoon, and thank you for joining Frequency Electronics second quarter fiscal year 2026 earnings call. With me today is our Chief Financial Officer, Steve Bernstein.

下午好，感謝各位參加 Frequency Electronics 2026 財年第二季財報電話會議。今天陪我一起的是我們的財務長史蒂夫·伯恩斯坦。

On our first quarter fiscal 2026 earnings call in September, I discussed two near-term factors that produced a quarter with lower revenue than recent trend levels suggested. The first factor was that strong execution in fiscal 2025 allowed the company to produce revenue on certain programs in fiscal 2025, that we had originally expected to produce over a more extended period of time in fiscal 2026, essentially pulling forward some revenue. The second factor was customer-driven delays on a few key programs that pushed revenue recognition out of the fiscal first quarter. Despite those issues, I noted on that call that 6 weeks into the second quarter, we saw that those delays were behind us making significant progress towards a bigger book of business.

在9月舉行的2026財年第一季財報電話會議上，我討論了兩個導致本季營收低於近期趨勢水準的近期因素。第一個因素是，2025 財年的強勁執行力使公司能夠在 2025 財年實現某些專案的收入，而我們原本預計這些收入將在 2026 財年更長的時間內產生，這實際上是提前帶來了一些收入。第二個因素是客戶對一些關鍵項目造成的延誤，導致收入確認延後到第一財季之外。儘管存在這些問題，但我在電話會議上指出，進入第二季 6 週後，我們看到這些延誤已經過去，我們在實現更大的業務量方面取得了重大進展。

I'm pleased to report on today's call that our second quarter performance was very strong across a number of key metrics as we resumed our revenue uptrend and have numerous proof points to support our belief that this will be a strong multiyear growth period for the company. Steve will provide more financial details later in the call, but I want to take a few moments to highlight several important data points and trends.

我很高興地在今天的電話會議上報告，我們第二季度的業績在多項關鍵指標上都非常強勁，我們恢復了收入增長趨勢，並且有很多證據支持我們的信念，即這將是公司未來幾年強勁增長的時期。史蒂夫稍後會在電話會議中提供更多財務細節，但我想花幾分鐘時間重點介紹幾個重要的數據點和趨勢。

For this quarter, we reported revenue of $17.1 million, up 24% sequentially. This was the third highest quarter of revenue in the past decade, with only to two hire in that period having occurred in the third and fourth quarters of last fiscal year. In short, though our business does not proceed in a perfectly linear fashion. We have established a new higher baseline upon, which we expect to build in the years ahead.

本季度，我們公佈的營收為 1,710 萬美元，季增 24%。這是過去十年中營收第三高的季度，而同期僅有的兩名新員工分別出現在上個財年的第三季和第四季。簡而言之，我們的業務並非以完全線性的方式進行。我們已經建立了一個新的更高基準，並期望在未來幾年以此為基礎繼續發展。

To illustrate that point, our quarter end backlog was $82 million, the highest in company history and up 17% since our fiscal year-end in April as we continue to book new business that is funded. Many of the contracts we signed have initial funded portions, which are only a fraction of the full of the full contract award with additional funding that comes later in the course of the contract, meaning that the funded backlog we show is conservative relative to our bookings and that existing contracts can continue to contribute to backlog in the years to come. While backlog in any given quarter can fluctuate based on newly funded awards and what is converted into revenue in a given quarter, based on what we are seeing coming down the road. We believe it's reasonable that we could see backlog north of $100 million in the not-too-distant future.

為了說明這一點，我們季度末的積壓訂單為 8,200 萬美元，創公司歷史新高，比 4 月份財年結束時增長了 17%，因為我們繼續獲得有資金支持的新業務。我們簽署的許多合約都有初始資金支持部分，這只是合約總額的一小部分，後續還會追加資金，這意味著我們顯示的已撥款積壓訂單相對於我們的預訂量而言是保守的，而且現有合約在未來幾年仍可繼續為積壓訂單做出貢獻。雖然任何特定季度的積壓訂單量都會根據新獲得的資助項目以及該季度轉化為收入的項目數量而波動，但根據我們對未來發展趨勢的預測，情況可能會有所不同。我們認為，在不久的將來，積壓訂單超過 1 億美元是合理的。

Critically, this growth in backlog that we're describing is coming from our strong existing business. We know that many of you are excited for the growth prospects that we have coming in the future in large and growing end markets such as quantum sensing, proliferated satellites and alternative position, navigation and timing or ALT-PNT programs. We share that optimism and expect to participate meaningfully as these sectors expand.

至關重要的是，我們所描述的積壓訂單成長來自於我們強大的現有業務。我們知道，你們中的許多人對我們未來在量子感測、衛星擴散和替代定位、導航和授時（ALT-PNT）等大型和不斷增長的終端市場中的成長前景感到興奮。我們同樣抱持樂觀態度，並期待隨著這些產業的擴張而發揮重要作用。

Critically, while these white space opportunities are much larger than our historical markets, we're not standing around waiting with nothing to show for it in the interim. These new markets will be additive to what is already a strong and growing current business as evidenced by our strong performance this quarter and the growth in funded backlog. We anticipate multiple awards in the coming months, some of which are as large or larger than the biggest ones we have historically announced. This is today's core business, which itself has years of profitable growth potential and upon which the future growth opportunities in quantum sensing, magnetometers and other ALT-PNT, and timing solutions as well as proliferated satellites will be additive. In other words, we can be a substantially larger company in the years to come as we layer new growth opportunities, which are built upon our industry-leading capabilities on top of a strong and growing core business.

至關重要的是，雖然這些空白市場機會比我們以往的市場大得多，但我們不會坐等，也不會在此期間一無所獲。這些新市場將為我們目前已經強勁且不斷成長的業務錦上添花，本季強勁的業績和已獲資金支持的積壓訂單的成長就證明了這一點。我們預計未來幾個月將頒發多個獎項，其中一些獎項的金額與我們歷史上宣布的最大獎項一樣大，甚至更大。這是該公司目前的核心業務，其本身俱有多年的盈利增長潛力，而量子感測、磁力計和其他ALT-PNT、計時解決方案以及不斷增多的衛星等未來的增長機會將在此基礎上錦上添花。換句話說，隨著我們不斷拓展新的成長機會，未來幾年我們有望成為一家規模更大的公司。這些新的成長機會建立在我們領先業界的能力之上，而我們的核心業務又強大且不斷成長。

It's exciting to work with some of the next-generation defense companies, and they will be part of our growth story, especially in new technologies. At the same time, our long-standing strategic partnerships with the major prime contractors are also very important for our current and future business. and we have advantaged positions with them on many programs because of our technological capabilities. In multiple cases, we are sole source providers, and we're often the partner of multiple primes competing for the same government programs, meaning we can win regardless of whom the government selects as the prime on a given program.

能夠與一些新一代國防公司合作令人興奮，它們將成為我們發展歷程的一部分，尤其是在新技術領域。同時，我們與主要總承包商之間長期建立的策略合作夥伴關係對我們目前和未來的業務也至關重要。憑藉我們的技術能力，我們在許多專案中都擁有優勢地位。在許多情況下，我們是唯一供應商，我們經常與多家主要承包商合作競標同一政府項目，這意味著無論政府選擇哪家作為特定項目的主要承包商，我們都能贏得項目。

Turning to space. This means a significant and expanding market for us. We've been participating in the space business for decades, and we see a long runway of growth ahead. For example, the U.S. Space Force recently launched Navigation Technology Satellite 3, known as NTS-3, experimental navigation satellite, a major milestone aimed at advancing more resilient next-generation PNT architectures.

轉向太空。這意味著我們擁有一個規模龐大且不斷成長的市場。我們參與航太事業已有數十年，我們看到未來還有很長的成長之路。例如，美國太空軍最近發射了導航技術衛星 3（簡稱 NTS-3），這是一顆實驗性導航衛星，旨在推進更具彈性的下一代 PNT 架構，這是一個重要的里程碑。

Our technology is onboard this satellite and underscores the strategic relevance of the solutions that the FEI provides.

我們的技術已搭載於這顆衛星上，凸顯了 FEI 提供的解決方案的戰略意義。

We also have a strong and growing defense business that is booming, and which we envision growing sharply for many years to come. On our last call, we highlighted the number of the critical multi-domain defense systems we're involved with. We anticipate much continued growth from these programs as well as new ones. Just last week, the Missile Defense Agency announced it has begun Phase 1 of awarding contracts for the Scalable Homeland Innovative Enterprise Layered Defense program, otherwise known as Shield, which is part of the Golden Dome initiative. We anticipate our technology being part of multiple bid winners programs.

我們還擁有一個實力雄厚且不斷發展的國防業務，目前正蓬勃發展，我們預計在未來很多年裡，該業務將保持快速成長。在上一次通話中，我們重點介紹了我們參與的關鍵多域防禦系統的數量。我們預計這些項目以及新的項目將繼續保持強勁成長勢頭。就在上週，導彈防禦局宣布已開始授予可擴展國土創新企業分層防禦計劃（又稱“盾牌”）的第一階段合同，該計劃是“金穹頂”計劃的一部分。我們預計我們的技術將成為多個中標項目的一部分。

Defense spending continues to increase, particularly in missiles, munitions and other modernization initiatives. As an example of rapidly increasing scale. Last week, the Pentagon announced plans to procure 200,000 drones by 2027. While not all of those require high-end precision timing. This illustrates the magnitude of modernization underway and the breadth of defense and space technology initiatives we will participate in.

國防開支援續增長，尤其是在飛彈、彈藥和其他現代化項目方面。例如，規模迅速成長。上週，五角大廈宣布計劃在 2027 年之前採購 20 萬架無人機。雖然並非所有這些都需要高端的精確計時。這說明了正在進行的現代化規模之大，以及我們將參與的國防和航太技術計劃的廣泛性。

As we've shown over the past few quarters, the path there is not likely to be linear on a quarter-to-quarter basis, but the underlying strength in our core business and the growth prospects in our new areas support a consistent multiyear up into the right trajectory from a market share leader with growing strategic importance in its industry. We look forward to continuing to demonstrate this in the quarters and years to come.

正如我們在過去幾個季度所展示的那樣，這條道路不太可能逐季度呈線性增長，但我們核心業務的潛在實力和新領域的增長前景支持我們在未來幾年內持續上升，從市場份額領先者，在其行業中具有日益重要的戰略地位，走上正確的發展軌跡。我們期待在未來的幾個季度和幾年裡繼續證明這一點。

Two final notes on scheduling before I turn things over to Steve. Out of respect for our friends in the federal government, who could not attend our previously scheduled quantum sensing conference in October due to the government shutdown. We moved the conference to January 14 to 16 in New York City. We have an excellent agenda that will cover quantum policy, multiple military missions that envision utilizing quantum technology, application research from leading national and academic labs, as well as updates on clock and oscillator applications. We look forward to hosting this event next month, and gathering many of the leading players in the industry, many of whom we're already working with to build out our quantum future.

在把事情交給史蒂夫之前，還有兩點關於日程安排的補充說明。出於對我們聯邦政府朋友們的尊重，由於政府停擺，他們無法參加我們原定於 10 月舉行的量子感測會議。我們將會議改期至1月14日至16日在紐約市舉行。我們的議程非常精彩，將涵蓋量子政策、設想利用量子技術的多個軍事任務、來自領先的國家和學術實驗室的應用研究，以及時鐘和振盪器應用的最新進展。我們期待下個月舉辦這項活動，並彙聚業內眾多領導企業，其中許多企業我們已經在合作，共同建構我們的量子未來。

Additional details related to this event are available on our website.

有關本次活動的更多詳情，請瀏覽我們的網站。

In addition, we look forward to meeting with many of you at the Needham Growth Conference in New York City in January. And now I'll turn the call over to Steve to provide some more financial details, and I look forward to taking your questions during the Q&A session following Steve's remarks. Steve?

此外，我們期待在1月於紐約市舉行的Needham成長大會上與各位見面。現在我將把電話交給史蒂夫，讓他提供更多財務細節。我期待在史蒂夫發言後的問答環節回答大家的問題。史蒂夫？

Thank you, Tom, and good afternoon. For the three months ended October 31, 2025, consolidated revenue was $17.1 million compared to $15.8 million for the same period of the prior fiscal year. The components of revenue are as follows: revenue from commercial and U.S. government satellite programs was approximately $4.6 million or 27% compared to $9.4 million or 59% in the same period of the prior fiscal year. Revenues on satellite payer contracts are recognized primarily under the percentage of completion method and are recorded only in the FEI-New York segment.

謝謝你，湯姆，下午好。截至 2025 年 10 月 31 日止的三個月，合併收入為 1,710 萬美元，而上一財政年度同期為 1,580 萬美元。收入組成如下：來自商業和美國政府衛星計畫的收入約為 460 萬美元，佔 27%，而上一財政年度同期為 940 萬美元，佔 59%。衛星支付合約的收入主要按完成百分比法確認，並且只在 FEI-紐約分部記錄。

Revenue from non-space U.S. government and Department of Defense customers which are recorded in both the FEI-New York and FEI-Zyfer segments were $11.9 million compared to $5.8 million in the same period of the prior fiscal year and accounted for approximately 69% of consolidated revenue compared to 37% for the prior fiscal year. Other commercial and industrial revenues were approximately $560,000 compared to approximately $591,000 in the prior fiscal year. Revenue for the three months ending October 31, 2025, was higher than revenue to prior fiscal period due to an increase in non-space Department of Defense products in the FEI-Zyfer segment. This increase was in both shipment-based products as well as products accounted for under the percentage of completion method.

來自美國政府和國防部非航太客戶的收入（分別計入 FEI-紐約和 FEI-Zyfer 兩個部門）為 1,190 萬美元，而上一財年同期為 580 萬美元，約佔合併收入的 69%，而上一財年為 37%。其他商業和工業收入約為 56 萬美元，而上一財政年度約為 591,000 美元。截至 2025 年 10 月 31 日的三個月，由於 FEI-Zyfer 部門非航太國防部產品增加，收入高於上一財政期間的收入。此次成長既包括以出貨量計算的產品，也包括以完工百分比法計算的產品。

For the three months ending October 31, 2025, both gross margin and gross margin rate decreased compared to the same period of the prior fiscal year. The decrease in gross margin and gross margin rate were attributable to a change in the mix of high-margin production satellite programs in the prior year periods versus lower-margin programs with significant nonrecurring engineering efforts during the three and six months ending October 31, 2025. We demonstrated meaningful operating leverage in the business as compared to Q1. Our gross margins will often have some variability depending on the shipments in a given quarter where the amount of new engineering development for as repeat business throughout a period. But we remain committed to ongoing improvements in profitability across our business.

截至 2025 年 10 月 31 日的三個月，毛利和毛利率均較上年同期下降。毛利和毛利率的下降是由於上一年同期高利潤率的生產衛星項目與截至 2025 年 10 月 31 日的三個月和六個月期間高利潤率且有大量非經常性工程投入的項目組合發生了變化。與第一季相比，我們在業務營運方面展現出了顯著的槓桿效應。我們的毛利率通常會根據特定季度的出貨量而有所波動，因為新工程開發的數量以及整個時期內的重複業務量都會影響毛利率。但我們仍致力於持續提升公司各業務的獲利能力。

We have made excellent strides in this regard in the past few years, and it continues to be an area of emphasis.

過去幾年，我們在這方面取得了長足的進步，而這仍然是我們重點關注的領域。

For the three months ended October 31, '25 and '24, selling and general and administrative expenses were approximately 21% of consolidated revenues, the increase in SG&A expense during the three months ending October 31, '25 was due to the fluctuation in the various expense accounts that make up SG&A. R&D expense for the three months ending October 31, '25 decreased to approximately $1.2 million from $1.6 million for the three months ended October 31, '24, a decrease of approximately $400,000 and were approximately 7% and 10%, respectively, of consolidated revenue.

截至 2025 年 10 月 31 日及 2024 年 10 月 31 日止的三個月期間，銷售及一般及行政費用約佔合併收入的 21%，截至 2025 年 10 月 31 日止的三個月期間銷售及一般及行政費用的增加是由於構成銷售及一般及行政費用所致銷售及一般及行政費用的費用的各種費用。截至 2025 年 10 月 31 日止三個月的研發費用從截至 2024 年 10 月 31 日止三個月的 160 萬美元減少至約 120 萬美元，減少了約 40 萬美元，分別約佔合併收入的 7% 和 10%。

Fluctuation in R&D expenditures will occur in some periods due to current operational needs supporting ongoing programs. The company plans to continue to invest in R&D in the future to keep its products at the state-of-the-art. For the three months ending October 31, '25, the company recorded operating income of approximately $1.7 million compared to operating income of approximately $2.6 million in the prior fiscal year. Operating income decreased due to lower gross margin and increased SG&A as described above.

由於當前營運需要支援正在進行的項目，研發支出在某些時期會出現波動。該公司計劃未來繼續投資研發，以保持其產品處於最先進水平。截至 2025 年 10 月 31 日的三個月內，該公司錄得營業收入約 170 萬美元，而上一財年的營業收入約為 260 萬美元。如上所述，由於毛利率下降及銷售、管理及行政費用增加，營業收入下降。

Other income expense net is derived from various sources, the majority of the approximately $0.2 million of investing income for the three months ended October 31, '25, was from interest income and unrealized gain on assets held in the frequency electronics deferred account trust. These yields are pretax income of approximately $1.8 million for the three months ending October 31, '25, compared to an approximately $2.7 million pretax income for the three months ending October 31, '24.

其他收入支出淨額來自各種管道，截至 2025 年 10 月 31 日止三個月的約 20 萬美元投資收入中，大部分來自頻率電子遞延帳戶信託持有資產的利息收入和未實現收益。截至 2025 年 10 月 31 日的三個月，這些收益的稅前收入約為 180 萬美元，而截至 2024 年 10 月 31 日的三個月，稅前收入約為 270 萬美元。

For the three months ended October 31, '25, the company recorded a tax benefit of $31,000 compared to a tax provision of $139,000 for the same period of the prior fiscal year. Consolidated net income for the three months ending October 30, '25 was approximately $1.8 million or $0.18 per share compared to approximately $2.7 million or $0.28 per share for the same period of the previous fiscal year. Our fully funded backlog at the end of October '25 was approximately $82 million compared to approximately $70 million for the previous fiscal year ended April 30, '25.

截至 2025 年 10 月 31 日的三個月內，該公司確認了 31,000 美元的稅收優惠，而上一財政年度同期則確認了 139,000 美元的稅務準備。截至 2025 年 10 月 30 日的三個月，合併淨收入約為 180 萬美元，即每股 0.18 美元，而上一財政年度同期約為 270 萬美元，即每股 0.28 美元。截至 2025 年 10 月底，我們已全額資助的積壓訂單約為 8,200 萬美元，而上一財政年度（截至 2025 年 4 月 30 日）的積壓訂單約為 7,000 萬美元。

The company's balance sheet continues to reflect a strong working capital position of approximately $31 million October 31, '25 and a current ratio of approximately 2.6:1. 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2025年10月31日，公司資產負債表顯示其營運資金狀況依然強勁，約3,100萬美元，流動比率約2.6:1。此外，公司沒有負債。該公司認為其流動資金足以滿足未來 12 個月及可預見的未來內的營運和投資需求。

I will turn the call back to Tom, and we look forward to your questions later.

我會把電話轉回給湯姆，我們期待稍後回答您的問題。

Thanks, Steve. We're now ready for any questions.

謝謝你，史蒂夫。現在我們準備好回答任何問題。

(Operator Instructions)

（操作說明）

George Marema, Pareto Ventures.

喬治‧馬雷瑪，帕累托創投公司。

I have couple of questions. So I saw the other day. Congratulations you guys won on the first tranche of the Golden Dome awards. I was wondering if you could provide any color the frequency kind of component and system content and quantities opportunity in that program?

我有幾個問題。我前幾天看到的。恭喜你們贏得了第一屆金頂獎。我想知道您是否可以提供該程式中各種顏色、組件和系統內容及數量方面的機會？

Yes. I don't think I can provide a whole lot of details. Golden Dome is one of those things that is sort of in the process of being defined as we speak and it's a little hard to precisely define exactly what is encompassed by that. I think suffice it to say we -- just in general terms, we anticipate participating in several different aspects of what will ultimately become Golden Dome.

是的。我覺得我無法提供太多細節。金頂教堂仍在定義中，很難準確地定義它究竟包含哪些內容。我認為只需概括地說，我們預計將參與最終將成為金頂大廈的幾個不同方面。

So in particular, their ground-based missiles. And as we've discussed previously, we're already very involved in both Patriot and FAD programs. But of course, one of the big things that is being pursued in Golden Dome is space-based approach to missiles and defense. And there are various aspects of that, and we anticipate, although that's not something that we're under contract for at this point in time, we do anticipate that we will be involved in that in a very significant way in the near future. Yes, I think that's about as much as I can say at this point.

尤其是他們的陸基飛彈。正如我們之前討論過的，我們已經深度參與了「愛國者」和「FAD」計畫。當然，金穹頂正在追求的一大目標是太空飛彈和防禦。這其中涉及許多方面，我們預計，雖然目前我們還沒有就此簽訂合同，但我們預計在不久的將來，我們將以非常重要的方式參與其中。是的，我想目前我只能說這麼多了。

Okay. And could you comment on your Colorado operations, like what kind of activities are going on there today?

好的。您能否介紹一下您在科羅拉多州的業務運作情況，例如目前那裡正在進行哪些活動？

Sure. So we talked about that a little bit last quarter. I think we -- the starting point for that is that we saw an opportunity to hire several senior scientists from NIST in Boulder, Colorado, as they were part of this Federal effort to reduce the ranks there really pretty significantly. So we were successful in that. We've hired several people now.

當然。上個季度我們稍微討論過這個問題。我認為我們——這一切的出發點是，我們看到了一個機會，可以從科羅拉多州博爾德的美國國家標準與技術研究院 (NIST) 聘請幾位資深科學家，因為他們參與了聯邦政府大幅削減 NIST 人員規模的行動。所以我們在這件事上成功了。我們現在已經招了好幾個人。

Of course, they weren't interested in moving to Long Island. But if we were willing to set up shop in Colorado, they were interested in joining us. So that's what we did.

當然，他們對搬到長島並不感興趣。但如果我們願意在科羅拉多州設立辦事處，他們就有興趣加入我們。所以我們就這麼做了。

The focus primarily of the facility that we have started there in Boulder, Colorado is a -- technology, but we have some key efforts that are really going on there also in some very low phase noise oscillator technology that was actually started by work at NIST in Boulder. But the primary focus there is quantum technology. So we have magnetometer development that's going on that's there in Colorado. And we have established some cooperative research and development arrangements or creators with several different research groups at NIST.

我們在科羅拉多州博爾德市建立的設施主要側重於一項技術，但我們也在那裡開展了一些關鍵工作，例如低相位噪音振盪器技術，這項技術實際上是由博爾德市的 NIST 開始的。但那裡的主要關注點是量子技術。所以我們在科羅拉多州正在進行磁力計的研發工作。我們與美國國家標準與技術研究院 (NIST) 的幾個不同研究小組建立了一些合作研發安排或合作關係。

And so some of that is in Rydberg sensors, which is a type of quantum sensor. And we also have some efforts in low-phase noise, oscillators, et cetera. So we're pretty excited about the Colorado set up. We have a really talented group of people working there. And of course, we anticipate that we just in case you weren't aware, this is the Colorado, the Boulder, Colorado area, is a focus of precision, time and frequency technology with NIST there but also the University of Colorado.

因此，其中一部分就應用在里德堡感測器中，里德堡感測器是一種量子感測器。我們也在低相位雜訊、振盪器等方面做出了一些努力。所以我們對科羅拉多州的籌備工作感到非常興奮。我們那裡有一群非常有才華的人。當然，我們預計，萬一您還不知道的話，這裡是科羅拉多州，博爾德地區，是精密、時間和頻率技術的中心，美國國家標準與技術研究院 (NIST) 和科羅拉多大學都在這裡。

There's a tremendous amount of research there and we hope to be able to attract talent from that area in the years to come. So yes, that's pretty much the story at this point.

那裡有大量的研究，我們希望在未來幾年能吸引該地區的人才。所以，目前的情況大致就是這樣。

The next question is from [Chris Bakosky] with -- I'm sorry, he's a Private Investor.

下一個問題來自 [Chris Bakosky]——抱歉，他是一位私人投資者。

Congratulations on resuming growth, so you talked about how -- because this past quarter, you had more work in non-space-related military applications where your products, your work was apparently required more investigation and more R&D, the margins were lower. It seems logical that if you continue doing that work the investigations will -- less investigations will be required than you kind of climb into higher margins. Am I thinking of that correctly?

恭喜你們恢復成長，所以你們談到──因為上個季度你們在非航太相關的軍事應用領域有更多工作，你們的產品和工作顯然需要更多的調查和研發，利潤率較低。如果你繼續做這項工作，那麼所需的調查就會減少，你的利潤空間也會隨之提高，這似乎是合乎邏輯的。我的想法對嗎？

Well, I would say things just a little bit differently. I think in the last quarter, the results were less than we might have expected otherwise primarily, because we had -- well, one of the major factors was that we had some significant delays in programs. I think that a lot of the things you're referring to the non-space defense activity that we're involved in is really pretty high margin programs. And we expect those to be quite profitable.

嗯，我的說法會稍微不一樣。我認為上個季度的業績不如我們預期，主要原因是——嗯，其中一個主要因素是我們的一些項目出現了重大延誤。我認為你提到的很多我們參與的非太空防禦活動都是利潤非常高的項目。我們預計這些項目將帶來相當可觀的利潤。

As always, we have a mix of things when we do development, and we are involved in some new development programs, in particular, in some advanced missile technology. We do anticipate some lower margins. But yes, anyway, I think that is what I would say.

和以往一樣，我們在進行研發時會綜合考慮各種因素，我們參與了一些新的研發項目，特別是先進的飛彈技術。我們預計利潤率會有所下降。不過，是的，總之，我想我會這麼說。

All right. So some of the reason for the lower margins was because of interruptions of funding, you had to put work down and then start it over again. Is that what you're saying?

好的。利潤率較低的部分原因是資金中斷，你必須放下手邊的工作，然後重新開始。你是這個意思嗎？

Well, that's correct. I think that the -- it's not so much that, that resulted in lower margins but it resulted in delays in revenue, revenue that we anticipated during that quarter, we weren't able to realize because we were put on hold on programs and weren't allowed to do any more work.

沒錯。我認為，與其說是利潤率下降，不如說是收入延遲了。我們原本預計在該季度獲得的收入，由於專案暫停且不允許進行更多工作，因此未能實現。

I see. Those -- now that the shutdown is over or those programs restarting have they restarted at all?

我懂了。那些——現在停擺結束了，或者說那些重啟的程序，它們真的重啟了嗎？

Yes. A lot of that interestingly wasn't really due to the shutdown. The programs were ongoing but it was more about, we had actually brought up issues with some of the requirements that were levied on Frequency Electronics. And it was really because of that, that we were put on hold on several programs and it was necessary for our customers to figure out what they really wanted. In terms of performance requirements.

是的。有趣的是，很多這樣的情況其實並非是停工造成的。這些項目一直在進行中，但更重要的是，我們實際上提出了一些針對 Frequency Electronics 提出的要求的問題。正因為如此，我們的幾個專案才被迫暫停，我們的客戶也需要時間來弄清楚他們真正想要的是什麼。就性能要求而言。

What I will say about the shutdown, the government shutdown is that primarily that affected us because there are new programs that we anticipated getting started that would have started actually by now. which we're still waiting for. And so I think the primary thing was that some of the contracting activities that we thought would have taken place earlier hasn't happened yet.

關於政府停擺，我想說的是，它主要影響我們，因為我們原本預期一些新計畫會啟動，而這些計畫現在應該已經啟動了，但我們仍在等待。所以我認為最主要的問題是，我們原本以為會更早發生的一些承包活動還沒發生。

So if it wasn't for the shutdown, you would have even higher backlog from the (inaudible) backlog.

所以，如果不是因為停工，積壓的訂單數量還會更多（聽不清楚）呢。

That's correct. That's absolutely correct. Now I should point out in that regard, and I tried to in the opening remarks, I tried to point this out. When we get awarded a new contract, we will announce assuming it's a significant contract, we'll announce the full amount of the contract, but we won't add that full contract amount to our funded backlog, we only add the funded portion of the contract. So if we get a $10 million contract and we get funded for $1 million initially, we would add $1 million to backlog, although when we make a press release, we'll announce that we got a $10 million contract.

沒錯。完全正確。現在我應該指出這一點，而且我在開場白中也試圖指出這一點。當我們獲得一份新合同時，如果這是一份重要的合同，我們會宣布合同的總金額，但我們不會將合同的總金額添加到我們的已撥款積壓訂單中，我們只會添加合同中已撥款的部分。所以，如果我們獲得一份價值 1000 萬美元的合同，並且最初獲得了 100 萬美元的資金，那麼我們將增加 100 萬美元的積壓訂單，儘管當我們發布新聞稿時，我們會宣布我們獲得了一份價值 1000 萬美元的合同。

Those numbers are all hypothetical. Let me just point out.

這些數字都只是假設。我只想指出一點。

Okay. So this back and forth on requirements, is that progressing? Have you resolved most of that by now?

好的。那麼，關於需求的反覆討論，進展如何？現在大部分問題都解決了嗎？

We have resolved most of that at this point in time. There's always a potential for more kind of issues in that regard in the future. But I think in particular cases, referring to here, those issues have been resolved.

目前我們已經解決了大部分問題。未來這方面總有可能出現更多類型的問題。但我認為在某些特定情況下，例如這裡提到的情況，這些問題已經解決。

All right. And have new contracts started new funding started to appear after the shutdown? Or are they still trying to figure -- trying to catch up?

好的。停擺結束後，新的合約是否開始簽訂？新的資金是否開始出現？還是他們還在努力摸索──努力追趕？

Well, we we've had a few small things since the shutdown, but we are anticipating some much more significant stuff, which hasn't arrived yet.

嗯，自停工以來，我們收到了一些小東西，但我們期待著一些更重要的東西，這些東西還沒有到貨。

All right. And I guess the major question, I was trying to get to in a roundabout way is, are we -- as these requirements have been cleared up and as hopefully those new missile systems, you're kind of getting into stride after the new learnings. Can we see normalization of margins near term?

好的。我想，我拐彎抹角地想表達的主要問題是，隨著這些要求的明確，以及希望這些新的飛彈系統能夠從新的經驗中逐漸步入正軌，我們是否能夠做到這一點？我們能否在短期內看到利潤率恢復正常？

Yes, I think so.

是的，我也這麼認為。

Okay. This is very good to hear. All right. Congratulations again.

好的。聽到這個消息真是太好了。好的。再次恭喜。

Jeff Van Rhee with Craig-Hallum.

Jeff Van Rhee 與 Craig-Hallum。

Several from me guys. Congrats, first of all. But Tom, if you talk to this, the size or relative size of the initial awards versus the scope of potential follow-on awards. You called it out in your open transcript as abnormal. I know you won't give us an actual part number, but can you at least give us a ratio?

我這邊有幾個人。首先恭喜你。但是湯姆，如果你談到這一點，那就是初始獎勵的規模或相對規模與潛在後續獎勵的範圍之間的關係。你在公開的筆錄中指出這是異常的。我知道你不會給我們具體的零件編號，但至少能給我們一個比例嗎？

Does the initial order is $1 and the subsequent orders usually $2? Are we talking now initial orders of $1 and follow-on orders are at $4? I mean what's the scope of the increase that you're speaking to?

首單價格是 1 美元，後續訂單價格通常是 2 美元嗎？我們現在討論的是首單價 1 美元，後續訂單價 4 美元嗎？我的意思是，你所說的成長範圍究竟有多大？

So yes, a little bit of clarification. So typically, when we get a new contract, I think typically, we are funded initially for 10% of the total contract. But another point of clarification. So we get a contract award for a certain amount of money there are often additional options. So if it's a satellite program will be funded for 3 satellites with options for additional satellites, perhaps options to provide products for satellites 4, 5 and 6.

是的，需要稍作澄清。所以通常情況下，當我們獲得一份新合約時，我認為通常情況下，我們最初會獲得合約總額的 10% 作為資金。但還有一點需要澄清。因此，當我們獲得一定金額的合約時，通常還會有額外的選擇。因此，如果這是一個衛星計劃，將為 3 顆衛星提供資金，並可選擇增加衛星數量，或許還可以選擇為第 4、5 和 6 顆衛星提供產品。

So -- but the initial contract is just for the initial 3 satellites. And so that's let's say, $10 million, we get initially funded for $1 million, 10% of that contract.

所以——但最初的合約只針對最初的3顆衛星。假設合約金額為 1000 萬美元，我們最初獲得 100 萬美元的資金，即合約金額的 10%。

There may be another $10 million later for options for the follow-on 3 satellites. So that's hopefully clarifies that to some extent.

之後可能還會有 1000 萬美元用於後續 3 顆衛星的選擇權。希望這能在某種程度上解釋清楚。

Okay. I'll leave that there. And the incremental backlog, I mean, still all else the same, very nice sequential bump. Is there anything to call out or commonality in terms of the contract types that drove the sequential increase in backlog, namely the use cases?

好的。我就說到這裡。而新增的積壓工作，我的意思是，在其他條件不變的情況下，是一個非常好的順序增長。導致積壓訂單數量持續增加的合約類型（即用例）有什麼值得注意的共同點或特點嗎？

I think we can talk about that a little bit. I think we're seeing a big uptick in backlog for non-space defense, products that I think that's a very significant portion of that. I think the other thing I would say is that we anticipate a very significant uptick in the very near future on the space end of things. So what I would say is over the last quarter, the big thing has been non-space defense. And over the next couple of quarters, I anticipate that is likely to reverse, and we'll see that in space.

我想我們可以稍微聊聊這個。我認為我們看到非航太國防產品的積壓訂單大幅增加，我認為這其中佔了相當大的比例。我想補充一點，我們預計在不久的將來，太空領域的發展將會出現非常顯著的成長。所以我想說的是，在過去的季度裡，最重要的事情是非太空防禦。我預計在接下來的幾個季度裡，這種情況可能會逆轉，我們將在太空領域看到這一點。

Got it. That's helpful. And then, Steve, the -- on the margin question, with respect to gross margins, if we think about it over the next couple of quarters, what -- do you fundamentally see drivers that are going to push it up or push it down or likely kind of leave it where it is based on what you see in your backlog and likely to be able to take revenue on over the next few years? Not be asking for a number but really just asking directionally what you think the forces are that are at play?

知道了。那很有幫助。然後，史蒂夫，關於利潤率問題，就毛利率而言，如果我們考慮未來幾季的情況，根據你目前的積壓訂單情況以及未來幾年可能獲得的收入，你認為從根本上來說，哪些因素會推高毛利率，哪些因素會降低毛利率，或者哪些因素可能會使其保持不變？我不是想要一個具體的數字，只是想問你認為目前有哪些因素在運作？

I think all in all, it will stay flat to going up a drop. But I think take time to go back to where you saw it in the prior year.

我認為總體而言，價格會保持平穩或略微上漲。但我認為應該花點時間回顧一下你去年看到它時的情景。

Okay. And then, Tom, on Turbo. I think last quarter probably wasn't the first time, but I know you talked a few times about some initial expectation that in the fiscal year, Turbo could be a couple of million and then in the out year, it had the potential for $20 million. Based on what you're seeing in pipeline and discussions with customers, do you feel like those numbers are increasingly conservative, comfortable, maybe a bit more of a stretch than you thought? How do you feel about those numbers?

好的。然後，湯姆，在《極速蝸牛》中。我認為上個季度可能不是第一次，但我知道你曾多次談到，最初的預期是本財年 Turbo 的收入可能達到數百萬美元，而下個財年則有可能達到 2000 萬美元。根據您在銷售管道和與客戶的討論中所看到的，您是否覺得這些數字越來越保守、越來越可行，或者比您想像的要稍微超出預期？你對這些數字有何感想？

I think those numbers are pretty much right on. We are seeing a lot of enthusiasm and activity our Turbo product. And I think, yes, we see the near term a few million dollars. And I think that definitely the earlier estimate that we made the $20 million kind of number is very, very realistic.

我認為這些數字基本上準確。我們看到市場對我們的Turbo產品表現出了極大的熱情和活躍度。是的，我認為短期內我們可以看到幾百萬美元的收入。而且我認為，我們之前估計的 2000 萬美元左右的數字絕對非常非常現實。

Yes. Yes. And then maybe last for me, the -- obviously, you're feeling very good. You gave some swags at what the pipeline looks like and where it could lead backlog. And if the backlog does surge and you've got to deliver on these contracts, what does that mean for your cost structure?

是的。是的。最後，對我來說可能是——顯然，你感覺非常好。你展示了一些關於流程現狀以及可能導致積壓的跡象。如果積壓訂單激增，而你又必須履行這些合同，那麼這對你的成本結構意味著什麼？

How do you feel about the headcount? How do you feel about facilities available production capacity does it take meaningful hiring? Does it take meaningful CapEx? Just talk about the ability to address the growth without meaningful incremental spend?

您對目前的人員配置有何看法？您如何看待現有設施和生產能力？是否需要進行有效的招募？這需要大量的資本支出嗎？僅僅談論如何在不增加實質支出的情況下應對成長？

Yes, good question. I think we -- certainly, that's something that we're actively looking at. It's very, very important. I think on the one hand, we want to avoid getting out ahead of our skis and taking on too many people. On the other hand, we -- I think at this point in time, we are in a cautious hiring mode in anticipation of the business that we think we're going to be getting in the near future.

是的，問得好。我認為我們——當然，這是我們正在積極關注的事情。這非常非常重要。我認為一方面，我們想避免滑雪者走得太遠，帶太多人。另一方面，我認為目前我們正處於謹慎的招聘階段，以應對我們認為在不久的將來會遇到的業務成長。

I think we -- facility wise, we are in good shape. I think we were capable of handling the business that we anticipate at this point, and even a little bit more given our current facilities. And of course, we've added a little bit more capability in Colorado, although that isn't anticipated to be a primary manufacturing area. So I think we're in pretty good shape, but it's something that is always a bit of a challenge to try to be prepared but not too prepared.

我認為就設施而言，我們情況良好。我認為，以我們目前的設施，我們完全有能力處理我們預期的業務量，甚至還能處理更多。當然，我們在科羅拉多州也增加了一些產能，儘管那裡預計不會成為主要的生產基地。所以我覺得我們情況還不錯，但如何準備又不至於準備過度，始終是個挑戰。

Yes, for sure. Yes. I mean given the backlog and the other commentary, I mean, just a lot of full momentum here, so congratulations. Lastly, and then just, Tom, you talked on -- in answer to a prior question, I think about the revenue that had pushed out, whereby you've done the right thing for the customer and they respected and it took a little delay and then you caught some revenue. Just to be clear, has all that revenue come back?

是的，當然。是的。我的意思是，考慮到積壓的工作和其他評論，我的意思是，這裡勢頭正盛，所以恭喜。最後，湯姆，你剛才談到了——回答之前的問題，我想說的是，關於之前推遲的收入，你為客戶做了正確的事情，他們也尊重了你，雖然耽擱了一段時間，但最終你還是獲得了一些收入。為了確認一下，所有收入都回來了嗎？

Or are we still going to pick some more of that delayed revenue up in the forward quarter? Just kind of curious where we are with that.

或者我們還能在下一季收回一些先前延遲的收入？我只是有點好奇這件事進展到什麼程度了。

We -- a significant portion has come back, and we're going to be picking up more in the next quarter.

我們——很大一部分員工已經回歸，而且我們將在下一季迎來更多員工的回歸。

Next question is from [Michael Eisner], Private Investor.

下一個問題來自私人投資者邁克爾·艾斯納。

Great job on the backlog. Was any of that new contracts? Or was that just the release of from the funding?

積壓工作處理得很好。這些合約中有新簽的嗎？還是那隻是資金的釋放？

It's a little bit of both, but I think more of the release of funding than new contracts.

兩者兼而有之，但我認為更多的是資金的釋放，而不是新的合約。

And Colorado, do you think that's going to be profitable in the third quarter?

科羅拉多州，你認為它在第三季會獲利嗎？

Yes, actually, I do. is not going to be a huge contribution, but it's going to be a positive contribution as opposed to a negative one.

是的，我確實這麼認為。這不會是一項巨大的貢獻，但會是一項正面的貢獻，而不是負面的貢獻。

Because the people you hire, took away from our earnings, but now will come back in the third quarter.

因為你們僱用的人減少了我們的收入，但第三季他們會回來的。

Yes. We -- they are actively contributing to externally funded R&D programs at this point in time. And so that is a positive contribution.

是的。我們－他們目前正積極參與外部資助的研發計畫。所以這是一項正面的貢獻。

All right. And the backlog, most of that backlog all has legs on it to keep on going forward. Am I correct?

好的。而積壓的工作，大部分都有著繼續推進的動力。我說的對嗎？

Yes, you are.

是的，你是。

All right. Thank you very much. Great job.

好的。非常感謝。幹得好。

Okay, Michael. Thanks.

好的，麥可。謝謝。

Brett Reiss, Jenny Montgomery Scott.

布雷特·雷斯，珍妮·蒙哥馬利·斯科特。

Tom, Steve, the growth opportunities, which you mentioned, do they continue unabated, irrespective of which political party controls Congress, and the presidency?

湯姆、史蒂夫，你們提到的成長機會，是否會不受哪個政黨控制國會和總統職位的影響而持續存在？

Well, that's actually a good question. I think that the way we look at it, at this point, we think that, to a large extent, they are independent of politics. The -- that's something that I think about a lot and worry about. We know that we see certain trends now. And the question always is if there's a change of command in the next election, what -- does all of that disappear.

嗯，這確實是個好問題。我認為，就目前來看，我們認為它們在很大程度上是獨立於政治的。這件事——我常常思考，也很擔心。我們知道，我們現在看到了一些趨勢。而問題始終是，如果下次選舉中政權更迭，那麼這一切是否會消失。

I don't think so.

我不這麼認為。

So there are kind of 2 important things. I think when we look at the space business, there's just a strong growth in space that has nothing to do with politics, it's just a technology thing. I guess it's analogous to artificial intelligences. It's not primarily driven government needs, space is just growing in general. And I think that is good for our business.

所以，這裡有兩件比較重要的事情。我認為，當我們審視太空產業時，會發現太空領域正在強勁成長，這與政治無關，純粹是技術問題。我想這和人工智慧有點類似。這並非主要受政府需求驅動，而是太空領域整體上不斷發展。我認為這對我們的業務有好處。

Then the other part of it is if we just look at defense in general, I think that, of course, is obviously dominated by the government. But if we look at the world situation at this point, and what is happening in China and other places in the world, it's hard to see the defense spending going down dramatically, whether we're talking about a Republican administration or a democratic administration. I think -- and that's the fundamental reason for our optimism in that regard. So that's kind of how I look at these things. But of course, those are -- that's a question that we have to keep asking ourselves and pay attention to as we go forward.

另一方面，如果我們從整體上看國防，我認為這當然顯然是由政府主導的。但如果我們看看目前的世界局勢，以及中國和世界其他地方正在發生的事情，無論是共和黨政府還是民主黨政府，都很難看到國防開支大幅下降。我認為——這也是我們在這方面保持樂觀的根本原因。這就是我看待這些事情的方式。當然，這些都是——這是我們在前進的過程中必須不斷問自己並關注的問題。

Right. Your answer is music to thy ears. Have a good holiday.

正確的。你的回答讓我非常滿意。祝你假期愉快。

The next question comes from George Marema with Pareto Ventures.

下一個問題來自 Pareto Ventures 的 George Marema。

I had a question, Tom, on Turbo in terms of drones. With the anticipated upcoming changes in the FAA regulations to beyond visual line of sight. There seems to be a large commercial opportunity in autonomous drones. Do you see Turbo playing any part in commercial drones or just military applications?

湯姆，我有個關於Turbo無人機的問題。預計美國聯邦航空管理局即將對超視距飛行進行法規修改。自主無人機領域似乎蘊藏著巨大的商業機會。您認為Turbo無人機會在商用無人機領域發揮作用，還是只會應用於軍事領域？

Well, I think the -- potentially in both commercial and military, but I think in the near term, we would anticipate more in military. I think that we have to keep in mind that -- and I tried to say this in the initial remarks, the huge, huge numbers of drones are going to be coming into play whether we're talking about commercial or military applications. And it's really a fraction of those, which will employ Turbo or any of our other products. Our products are pretty specialized and relatively expensive.

嗯，我認為——在商業和軍事領域都有可能，但我認為在短期內，我們預計軍事領域會更多。我認為我們必須牢記這一點——我在最初的演講中也試圖表達這一點——無論我們談論的是商業應用還是軍事應用，大量的無人機都將發揮作用。而真正會使用 Turbo 或我們其他任何產品的，只是其中的一小部分。我們的產品比較專業，價格也相對較高。

So when the military, for instance, is talking about so-called comatose drones that are going to fly once and be destroyed in the initial mission. It is unlikely that our products are going to be part of those kind of drones. I've seen recent things where their price tags for those drones of a few thousand dollars, and so it's hard to see our products participating in those cases. But in more sophisticated applications, we think that we will be very important. And as the commercial space gets more sophisticated and people are doing more elaborate things with drones.

例如，當軍方談到所謂的「昏迷無人機」時，這些無人機只會飛行一次，然後在首次任務中被摧毀。我們的產品不太可能成為這類無人機的組成部分。我最近看到一些無人機的價格高達數千美元，因此很難想像我們的產品能參與這些項目。但在更複雜的應用中，我們認為我們將非常重要。隨著商業領域的日益複雜，人們使用無人機進行越來越複雜的操作。

We do anticipate that our Turbo and some other potential products will be a very significant part of that.

我們預計我們的Turbo和其他一些潛在產品將在其中發揮非常重要的作用。

Okay. And then in the recent weeks, there's been a lot of talk from folks like Elon Musk and Google and Amazon, et cetera, about putting data centers in space. There seems to be a big push coming up in that. And I was wondering a frequency, if you would be playing in that arena at all? And if so, how?

好的。最近幾週，馬斯克、谷歌、亞馬遜等公司都在談論在太空建立資料中心。看來這方面即將迎來一波大攻勢。我想知道你們是否會參加那個場館的比賽？如果真是如此，該如何實現？

Well, I think quite possibly, I think that synchronization in data centers is an important thing when those are ground-based data centers that's relatively easy to accomplish because size is not much of a question. But once we get into space, of course, size, weight and power become very, very important. And so our products, which are more compact, come into play, but also they come into play because we have radiation hardened synchronization, time and frequency devices, which are tailored for use in space.

嗯，我認為很有可能，我認為資料中心的同步是一件重要的事情，尤其是對於地面資料中心而言，由於規模不大，因此實現起來相對容易。但一旦我們進入太空，尺寸、重量和功率當然就變得非常非常重要了。因此，我們體積更小的產品就派上了用場，而且我們還擁有抗輻射的同步、時間和頻率設備，這些設備是專為太空使用而設計的。

So I think how we have to be a little bit careful because I don't think we're going to be seeing data centers and space in the next couple of years, except on people trying to demonstrate some capabilities. But I think to the extent that those data centers and space become a reality, I think we definitely anticipating being a participant in that.

所以我覺得我們必須謹慎一些，因為我認為在未來幾年內，除了那些試圖展示某些能力的人之外，我們不會再看到資料中心和空間了。但我認為，隨著這些資料中心和空間成為現實，我們肯定會參與其中。

Up next is William Bremer with Vanquish Capital.

接下來是來自Vanquish Capital的William Bremer。

Sorry about that, gentlemen. Just curious on the international front, whether or not we have any business with any of our allies or any international business going forward?

抱歉，先生們。我只是好奇，在國際方面，我們是否與任何盟友或未來有任何國際業務往來？

Good question. We actually do. We -- of course, the -- most of our business is domestic, defense and satellite business. But we do have some very significant business overseas with some of our allies, and we are actively pursuing additional things in this arena. There are some challenges in that.

問得好。我們確實有。當然，我們的大部分業務是國內業務、國防業務和衛星業務。但我們與一些盟友在海外確實有一些非常重要的業務，我們正在積極尋求在這個領域進行更多合作。這其中存在一些挑戰。

So just to highlight some of the things we -- most of our products there are export controls involved, and so we have to get export licenses in order to be able to sell things overseas. So that's an additional challenge. And it takes typically more time to get those kind of things started. But nonetheless, we do have some active programs as we speak.

所以，我想強調一些事情——我們的大部分產品都涉及出口管制，因此我們必須獲得出口許可證才能在海外銷售產品。所以這又是一個額外的挑戰。而且，啟動這類事情通常需要更多時間。但即便如此，我們目前確實有一些正在進行的項目。

The other thing is that in particular, with Europe, it's a challenge to do business there because they -- there are several things that are going on at this point in time in the defense industry in the U.S. there's strong emphasis using only domestic sources. This helps us in obtaining business with the U.S. Defense Department. At the same time, we see sort of similar thing in Europe, in particular, where there is a strong emphasis on using European suppliers instead of U.S.

另一方面，尤其是在歐洲，在那裡做生意是一個挑戰，因為——目前美國國防工業正在發生一些事情，他們非常重視只使用國內資源。這有助於我們與美國國防部開展業務。同時，我們在歐洲也看到了類似的情況，尤其是在歐洲，人們非常重視使用歐洲供應商而不是美國供應商。

suppliers. So that's just a couple of thoughts on that topic, hopefully, sort of answers your question.

供應商。關於這個主題，我有一些想法，希望這些能解答你的疑問。

No, it does. And I apologize, the doorbell and my dog. So -- but happy holidays, everyone, and keep up the good work Tom.

不，確實如此。還有，我要向門鈴和我的狗道歉。所以——祝大家節日快樂，湯姆，繼續加油！

We have no further questions in queue. I'd like to turn the floor back to management for any closing remarks.

我們沒有其他問題需要提問了。我想把發言權交還給管理階層，請他們作總結性發言。

Okay. Thanks to everybody for taking the time to listen to and participate in today's earnings call. We look forward to providing further updates in the coming months. And we wish everyone a happy and healthy holidays. Thank you.

好的。感謝大家抽空收聽並參與今天的財報電話會議。我們期待在未來幾個月內提供更多最新消息。祝大家假期快樂健康。謝謝。

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，您可以斷開線路了。感謝您的參與。