Innovative Solutions and Support Inc (IA) 2026 Q2 法說會逐字稿

Greetings. Welcome to Innovative Aerosystems' second-quarter fiscal year 2026 results conference call. (Operator Instructions) Please note, this conference is being recorded.

各位好。歡迎參加 Innovative Aerosystems 2026 會計年度第二季財報電話會議。（接線員指示）請注意，本次會議將被錄音。

At this time, I'll turn the conference over to Paul Bartolai, partner at Vallum Advisors. Thank you, Paul. You may now begin.

現在我將把會議交給 Vallum Advisors 合夥人 Paul Bartolai。謝謝你，Paul。你現在可以開始。

Thank you. Good morning, everyone, and welcome to Innovative Aerosystems second-quarter fiscal 2026 results conference call. Leading the call today are our CEO, Shahram Askarpour; and CFO, Jeff DiGiovanni.

謝謝。各位早安，歡迎參加 Innovative Aerosystems 2026 會計年度第二季財報電話會議。今天由我們的執行長 Shahram Askarpour 與財務長 Jeff DiGiovanni 主持。

This morning, we issued a press release detailing our fiscal 2026 second quarter operational and financial results. This release is publicly available in the Investor Relations section of our corporate website at www.iascorp.com.

今天早上，我們已發布新聞稿，詳述 2026 會計年度第二季的營運與財務結果。該新聞稿已公開刊登於公司網站 www.iascorp.com 的「投資人關係」專區。

I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements, which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results could differ materially.

提醒各位，管理層在今日電話會議中的評論與問答可能包含前瞻性陳述；此類陳述本質上具有不確定性，且不在公司控制範圍內。儘管這些前瞻性陳述係基於管理層目前的預期與信念，實際結果仍可能出現重大差異。

For a discussion of some of the factors that could cause actual results to differ, please refer to the Risk Factors section of our latest reports filed with the SEC.

關於可能導致實際結果不同的部分因素，請參閱我們最近向美國證券交易委員會（SEC）提交之報告中的「風險因素」章節。

Additionally, please note that you can find reconciliations of all historical non-GAAP financial measures mentioned on this call in the press release issued this morning.

此外，請注意：本次電話會議提及之所有歷史非 GAAP 財務衡量指標的調節表，均可在今天早上發布的新聞稿中找到。

Today's call will begin with prepared remarks from Shahram, who'll provide a review of our recent business performance and an update on our strategic framework, followed by a financial update from Jeff. At the conclusion of these prepared remarks, we will open the line for your questions.

今天的電話會議將先由 Shahram 發表準備好的談話，回顧近期業務表現並更新我們的策略架構，接著由 Jeff 進行財務更新。在上述準備稿結束後，我們將開放提問。

And with that, I'll turn the call over to Shahram.

那麼，我把電話交給 Shahram。

Thank you, Paul, and good morning to everyone joining us on the call today. Our positive business momentum carried into the second quarter as we reported another strong result highlighted by significant organic growth in our commercial aerospace and business aviation markets, continued strength in bookings, strong margin realization and efficient free cash flow conversion.

謝謝你，Paul，也向今天加入電話會議的各位道早安。我們正向的業務動能延續至第二季；我們再次繳出強勁成果，亮點包括商用航太與商務航空市場顯著的內生成長、訂單持續強勁、毛利率實現良好，以及自由現金流轉換效率高。

We were able to deliver second quarter modest organic growth, driven by growth of approximately 50% in our commercial and business aviation markets despite an unfavorable comparison to the second quarter of 2025.

儘管與 2025 年第二季相比基期不利，我們仍在第二季實現溫和的內生成長，主要由商用與商務航空市場約 50% 的成長所帶動。

As a reminder, we faced an unfavorable comparison to last year due to the transition of the F-16 manufacturing to our facility in Exton. Our F-16 revenues in the second quarter of 2025 were elevated as deliveries to Lockheed were accelerated to buffer them during the transition-related manufacturing hiatus, resulting in a $7 million year-over-year decline in F-16 revenues.

提醒各位，由於 F-16 製造轉移至我們位於 Exton 的廠房，與去年相比我們面臨不利比較。2025 年第二季的 F-16 營收偏高，原因是為了在轉移相關的製造停工期間提供緩衝，我們加速對洛克希德（Lockheed）的交付，導致 F-16 營收年減 700 萬美元。

We anticipated lower F-16 revenues due to the IPDG-required approvals and, therefore, shifted the mix of our operation to be more commercial-centric in our commercial aftermarket sales, together with increasing volumes in business aviation.

我們預期因 IPDG 所要求的核准流程而使 F-16 營收降低，因此調整營運組合，使商用售後市場銷售更偏向商用導向，同時提高商務航空的出貨量。

We continue to make important progress under our IA Next long-term value creation strategy during the second quarter, highlighted by three new acquisitions during the quarter that further expand our base of recurring high-value aftermarket and OEM revenue across legacy and next-generation aviation platforms.

第二季我們在 IA Next 長期價值創造策略下持續取得重要進展；本季完成三項新併購，進一步擴大我們在傳統與次世代航空平台上、具經常性且高價值的售後市場與 OEM 營收基礎。

Together, these transactions are projected to contribute $10 million in annual revenue with a blended gross margin profile of approximately 50%, putting us another step closer to delivering on our $250 million annual revenue target.

合計而言，這些交易預計可貢獻每年 1,000 萬美元營收，綜合毛利率約 50%，使我們更接近達成每年 2.5 億美元營收目標。

In February, we acquired the S-TEC autopilot product line from Moog. This was an important transaction as it brought us an established autopilot solution to integrate into our avionics cockpit solution. This was one of the key products missing in our integrated cockpit avionics platform. We could have built this on our own, but the solution from Moog gives us a recognized and trusted product. This was followed in March with the acquisition of several product lines from Honeywell.

2 月，我們自 Moog 收購 S-TEC 自動駕駛產品線。這是一項重要交易，因為它為我們帶來成熟的自動駕駛解決方案，可整合至我們的航電座艙解決方案中；這也是我們整合式座艙航電平台中缺少的關鍵產品之一。我們原本可以自行開發，但 Moog 的方案提供了市場認可且值得信賴的產品。隨後在 3 月，我們又收購了 Honeywell 的數條產品線。

In addition to navigation radios, multifunction displays, transponder technologies and power generation, this transaction importantly included additional autopilot solutions. Coupled with the Moog autopilot, together, these autopilot platforms significantly enhance our integrated cockpit solution and accelerate our ability to deliver autonomous solutions to our customers for both the military and commercial markets.

除導航無線電、多功能顯示器、應答機技術與發電系統外，這筆交易更重要的是包含額外的自動駕駛解決方案。結合 Moog 的自動駕駛產品線，這些自動駕駛平台將大幅強化我們的整合式座艙解決方案，並加速我們為軍用與商用市場客戶提供自主化解決方案的能力。

In aggregate, the autopilot product line acquisitions recently made established us as a major supplier of aircraft autopilots with certified and fielded solutions that range from small general aviation aircraft all the way to large Part 25 platforms, including helicopters for both military and commercial markets.

整體而言，近期完成的自動駕駛產品線併購，使我們成為飛機自動駕駛系統的重要供應商，提供已取得認證並已在役的解決方案，涵蓋從小型通用航空飛機到大型 Part 25 平台，亦包括軍用與商用市場的直升機。

These solutions will also be integrated into our UMS platform and Liberty Flight Deck. Our full suite of avionics solutions now include advanced flight deck and mission systems, precise flight and navigation computers, autothrottles, flight control computers, mission computers, navigation and communication radios, transponders, audio systems, electrical power generation systems, and proprietary software technologies targeting autonomous flight.

這些解決方案也將整合至我們的 UMS 平台與 Liberty Flight Deck。我們完整的航電解決方案組合現已涵蓋先進飛行甲板與任務系統、精密飛行與導航電腦、自動油門、飛控電腦、任務電腦、導航與通訊無線電、應答機、音訊系統、電力發電系統，以及針對自主飛行的專有軟體技術。

This is an important milestone fulfilling the company's ongoing strategy to build a comprehensive avionics ecosystem that bridges legacy platform sustainment with next-generation capability development, ensuring operators can maximize aircraft availability, safety and long-term value.

這是一項重要里程碑，落實公司持續推動的策略：打造一個全面性的航電生態系，連結傳統平台的維持支援與次世代能力的開發，確保營運方能最大化飛機可用率、安全性與長期價值。

As with the past transactions, these acquisitions expand our reach into new customers and platforms as well as provide an opportunity to reengineer these products and integrate them into our existing solutions to offer to new potential customers in military, business aviation and commercial air transport sectors. Our acquisition funnel remains robust, and we see additional opportunities as we continue to execute on our strategic growth initiatives.

如同過往交易，這些併購擴大了我們觸及的新客戶與新平台，同時也提供機會讓我們重新設計這些產品並整合至既有解決方案中，進而提供給軍用、商務航空與商用航空運輸等領域的新潛在客戶。我們的併購案源仍然強勁，隨著持續執行策略性成長計畫，我們也看到更多機會。

This quarter provided clear evidence that our strategy is working as we saw the benefits of both acquisitions and strong organic growth driven by internal investments in new product development. We will remain disciplined in our approach, continuing to focus on transactions and investments that advance our strategic objectives.

本季清楚證明我們的策略正在奏效：我們同時看見併購效益，以及由內部投入新產品開發所帶動的強勁內生成長。我們將持續保持紀律，專注於能推進策略目標的交易與投資。

I also wanted to provide a quick update on the integration of our products in support of the F-16 program. As we discussed last quarter, we completed all required recertifications and resumed full-scale production of the digital flight control computer at our Exton facility. The recertification and resumption of production of the improved programmable display generator is also now complete.

我也想就支援 F-16 計畫的產品整合提供簡要更新。如同我們上季所討論，我們已完成所有必要的再認證，並在 Exton 廠恢復數位飛行控制電腦的全面量產。改良型可程式化顯示產生器的再認證與復產目前也已完成。

We are excited to be fully up and running on these products, and we continue to be optimistic regarding the long-term growth potential of this platform. The F-16 remains a critical asset for our military as well as many of our allies around the world.

我們很高興這些產品已全面恢復運作，也持續對該平台的長期成長潛力保持樂觀。F-16 仍是我國軍方以及全球許多盟友的重要資產。

Additionally, we remain encouraged by the growth potential for our broader defense business as we experienced significant level of inquiries for cockpit upgrades and new aircraft platforms. As such, in the current political climate, we are even more encouraged by the long runway of growth we see ahead. We have made significant investments to position our business as a mission-critical partner with the defense supply chain and believe that we stand to benefit given the strong backdrop for defense spending.

此外，我們也對更廣泛的國防業務成長潛力感到鼓舞，因為我們收到大量關於座艙升級與新機型平台的詢問。因此，在目前的政治環境下，我們對前方可見的長期成長跑道更具信心。我們已投入大量資源，使公司在國防供應鏈中成為任務關鍵的合作夥伴，並相信在國防支出強勁的背景下，我們將可受惠。

At a product level, we continue to move closer to delivering the new version of our UMS platform. We expect deliveries to ramp up through the year and remain excited for the potential of our new UMS platform and our Liberty Flight Deck. We continue to make significant investments in internal research and development as we continue to advance our progress towards autonomous flight through our next-generation Flight Deck Liberty, which employs our UMS system.

在產品層面，我們持續更接近交付新版 UMS 平台。我們預期出貨將在今年逐步加速，並對新版 UMS 平台與 Liberty Flight Deck 的潛力感到振奮。我們也持續大幅投入內部研發，透過採用 UMS 系統的次世代 Flight Deck Liberty，持續推進我們邁向自主飛行的進展。

Our next-generation UMS system is an advanced aircraft systems management platform designed to monitor and control multiple aircraft subsystems from flight controls to environmental and power systems in a unified, intelligent architecture. In summary, we were pleased with our strong second quarter results that further built on our recent strong performance.

我們的下一代 UMS 系統是一個先進的飛機系統管理平台，旨在以統一、智慧化的架構，從飛行控制到環境與電力系統，監測並控制多個飛機子系統。總而言之，我們對第二季的強勁業績感到滿意，這也進一步延續了我們近期的強勢表現。

We remain encouraged by the growth outlook for our business, supported by strength across our key end markets, momentum for our new products and an active acquisition pipeline. We remain committed to our strategic priorities with an ongoing focus on maximizing long-term value for our shareholders.

在主要終端市場全面走強、新產品動能以及活躍的併購管線支持下，我們對業務的成長前景仍感到鼓舞。我們仍致力於策略重點，並持續聚焦於為股東最大化長期價值。

With that, I'll turn the call over to Jeff for his prepared remarks.

接下來，我將把電話會議交給 Jeff，請他發表準備好的談話。

Thank you, Shahram, and good morning to all those joining us. Today, I will provide a high-level overview of our second quarter performance, including a discussion of working capital, our balance sheet and our liquidity profile at quarter end and conclude with comments on our outlook for the business, which remains positive given current demand conditions.

謝謝你，Shahram，也向所有加入我們的各位道早安。今天我將就第二季表現提供高層次概述，包括營運資金、資產負債表，以及季末的流動性概況，最後也會就我們對業務的展望提出看法；在目前需求條件下，我們的展望仍然正向。

We generated net revenues of $22.4 million in the second quarter, up 2% from the second quarter last year despite the unfavorable comparison given the elevated F-16 revenues during the second quarter last year, as Shahram discussed. We anticipated a lower F-16 revenues and were able to offset the $7 million headwind by shifting our operations to be more commercial and business aviation centric, which increased roughly 50% on an organic basis.

第二季我們的淨營收為 2,240 萬美元，較去年第二季成長 2%，儘管如 Shahram 所述，去年第二季因 F-16 營收偏高而形成不利比較。我們原先預期 F-16 營收會較低，並透過將營運重心轉向更以商用與公務航空為核心來抵銷 700 萬美元的不利因素，使其在有機基礎上約成長 50%。

We've now completed all certifications and testing related to the digital flight control computer and the display generator in support of the F-16 program at our Exton facility. We expect manufacturing levels to normalize to support ongoing shipment levels in the third quarter of 2026.

我們現已在 Exton 廠區完成支援 F-16 計畫所需之數位飛行控制電腦與顯示產生器相關的所有認證與測試。我們預期製造水準將在 2026 年第三季恢復正常，以支援持續的出貨水準。

Product sales were $14.3 million during the second quarter, up from $13.2 million during the same period last year as stronger volumes of aftermarket products, upgrades to the commercial market and sales to the business aviation market more than offset the decline in the F-16 revenues.

第二季產品銷售為 1,430 萬美元，高於去年同期的 1,320 萬美元；售後市場產品更強的出貨量、商用市場升級需求，以及對公務航空市場的銷售，均足以抵銷 F-16 營收下滑的影響。

Service revenues was $8.1 million, down modestly from $8.8 million in the same period last year due to a decline of nearly $3 million in F-16 service revenues. This was partially offset by growth in the service volumes related to the IRUs and radio product lines.

服務營收為 810 萬美元，較去年同期的 880 萬美元小幅下降，主要因 F-16 服務營收下滑近 300 萬美元。此影響部分被 IRU 與無線電產品線相關服務量的成長所抵銷。

Gross profit was $11.4 million during the second quarter, up 1.5% from the same period last year. The improvement was driven by revenue growth and a favorable mix within the commercial aftermarket business, partially offset by an unfavorable comparison to last year's second quarter given the timing of expense recognition related to the F-16 transaction.

第二季毛利為 1,140 萬美元，較去年同期成長 1.5%。改善主要來自營收成長以及商用售後市場業務中較有利的產品組合，但部分被與去年第二季不利比較所抵銷，原因在於與 F-16 交易相關費用認列時點的差異。

As we've discussed previously, we experienced some lumpiness in the timing of expense recognition during the manufacturing transition from Honeywell that impacted our quarterly results. As a result, our second quarter gross margin was 51.1%, down modestly compared to 51.4% last year given the difficult comparison.

如我們先前所討論，在從 Honeywell 進行製造移轉的過程中，費用認列時點出現一些不均勻性，影響了季度業績。因此，第二季毛利率為 51.1%，在艱難的比較基期下，較去年 51.4% 小幅下降。

We continue to expect our gross margins to be in the mid-40% range over the long term with some quarterly fluctuations based on mix. As our military business ramps back up, which has lower gross margins, we would expect our gross margins to normalize. However, as we have discussed, our military business has similar EBITDA margins to our other businesses given a lower SG&A burden.

我們仍預期長期毛利率將落在 40% 中段區間，並會因產品組合而出現季度波動。隨著軍用業務回升（其毛利率較低），我們預期毛利率將趨於正常化。然而，如我們所述，由於 SG&A 負擔較低，我們的軍用業務 EBITDA 利潤率與其他業務相近。

Operating expense during the second quarter of 2026 was $6.5 million, an increase of -- from $4.3 million during the same period last year. The increase in operating expenses reflects investments in R&D in support of growth initiatives as well as onetime acquisition-related costs associated with the three recent acquisitions.

2026 年第二季營業費用為 650 萬美元，較去年同期的 430 萬美元增加 --。營業費用增加反映了為支持成長計畫而投入的研發支出，以及與近期三項收購相關的一次性併購成本。

Net income was $3.4 million or $0.19 per diluted share during the second quarter compared to net income of $5.3 million or $0.30 per share in the second quarter of last year. The effective tax rate was 22.6% during the second quarter, up from 19.2% during the same period last year due to the our overall growth in the business.

第二季淨利為 340 萬美元，或稀釋後每股 0.19 美元；相較之下，去年第二季淨利為 530 萬美元，或每股 0.30 美元。第二季有效稅率為 22.6%，高於去年同期的 19.2%，主要由於我們整體業務成長。

Adjusted net income, which includes the same adjustments made to adjusted EBITDA in addition to an adjustment for the amortization of acquired intangibles was $4.8 million for the quarter as compared to $5.7 million last year.

調整後淨利（除包含調整後 EBITDA 的相同調整項外，另加計對收購無形資產攤銷的調整）本季為 480 萬美元，去年同期為 570 萬美元。

Adjusted earnings per diluted share was $0.27 versus $0.32 last year. Adjusted EBITDA was $6.8 million during the second quarter, down from $7.7 million in the second quarter of last year due to growth investments and timing of expense recognition related to the F-16 transition in the prior year period.

調整後稀釋後每股盈餘為 0.27 美元，去年為 0.32 美元。第二季調整後 EBITDA 為 680 萬美元，低於去年第二季的 770 萬美元，主要因成長投資增加，以及前一年期間與 F-16 移轉相關費用認列時點的影響。

Our R&D investments during the second quarter were up roughly $1 million versus the second quarter last year. And for the remainder of the fiscal year, we continue to expect to increase R&D spending to support our growth initiatives.

第二季研發投資較去年第二季約增加 100 萬美元。而在本會計年度剩餘期間，我們仍預期將提高研發支出，以支持我們的成長計畫。

Moving on to backlog. New orders in the second quarter of fiscal 2026 were $24.7 million and backlog as of March 31 was approximately $87 million and an increase of approximately $7 million over the comparable period. Backlog represents the value of contracts and purchase orders less the revenue recognized to date on those contracts and purchase orders.

接著談積壓訂單（backlog）。2026 會計年度第二季新訂單為 2,470 萬美元，截至 3 月 31 日的積壓訂單約為 8,700 萬美元，較可比期間增加約 700 萬美元。積壓訂單代表合約與採購訂單的價值，扣除截至目前在該等合約與採購訂單上已認列的營收。

The backlog includes committed purchases and excludes potential sole-source production orders from products developed under the company's engineering development contracts programs.

積壓訂單包含已承諾的採購，並排除公司在工程開發合約計畫下所開發產品之潛在單一來源量產訂單。

Now turning to cash flow. During the first half of 2026, cash flow from operations was $10.5 million compared to $3.1 million in the year ago comparable period, driven by our solid operating results and financial discipline.

現在轉到現金流。2026 年上半年，營運活動現金流為 1,050 萬美元，較去年同期的 310 萬美元增加，主要受惠於穩健的營運成果與財務紀律。

Capital expenditures during the first six months of 2026 were $2.7 million versus $1.8 million for the year ago period. Free cash flow was $7.7 million during the first half, up from $1.3 million in the previous year. Our strong free cash flow reflects the limited capital needed to grow our business, which results in strong free cash flow conversion.

2026 年前六個月資本支出為 270 萬美元，去年同期為 180 萬美元。上半年自由現金流為 770 萬美元，高於前一年的 130 萬美元。我們強勁的自由現金流反映出成長所需資本有限，因而帶來強勁的自由現金流轉換率。

At the end of the second quarter 2026, we had total debt of $55.1 million and cash and cash equivalents of $6.8 million, resulting in net debt of $48.3 million.

截至 2026 年第二季末，我們的總負債為 5,510 萬美元，現金及約當現金為 680 萬美元，因此淨負債為 4,830 萬美元。

Net debt increased $22.2 million from the year ago period despite over $35 million used for acquisitions and capital expenditures in support of the company's growth initiatives, reflecting strong operating results and strong free cash flow conversion.

儘管為支持公司成長計畫而用於收購與資本支出的金額超過 3,500 萬美元，淨負債仍較去年同期增加 2,220 萬美元，反映出強勁的營運成果與強勁的自由現金流轉換。

As of March 31, 2026, we had total cash and availability under our credit line of approximately $49.8 million. Our net leverage at the end of the quarter was 1.7 times despite the recent acquisitions, our modest leverage, combined with availability under our expanded credit facility gives us significant financial flexibility to continue executing on our strategic initiatives.

截至 2026 年 3 月 31 日，我們的總現金以及信用額度下可動用額度合計約 4,980 萬美元。儘管近期完成收購，季末淨槓桿倍數為 1.7 倍；我們適度的槓桿水準，加上擴增後信貸融資的可用額度，賦予我們顯著的財務彈性，以持續推進策略計畫的執行。

Before we move into our Q&A, I'd like to provide a current -- our current thoughts around the outlook for the remainder of the fiscal 2026.

在我們進入問答之前，我想先提供一個最新的——我們目前對於2026會計年度剩餘期間展望的看法。

As previously disclosed, we continue to expect organic revenue growth to be essentially flat year over year given the pull-forward of revenue from 2026 into 2025 related to the F-16 production and service revenue. As we look ahead, we expect third quarter revenues to be in the range of $24 million to $26 million. That completes our prepared remarks.

如先前揭露，我們仍預期在F-16生產與服務收入相關、將部分收入自2026年提前至2025年的影響下，有機營收年增率基本上將持平。展望未來，我們預期第三季營收將落在2,400萬至2,600萬美元區間。以上為我們的準備發言。

Operator, we are now ready for the question-and-answer portion of our call.

接線員，我們現在準備進入本次電話會議的問答環節。

(Operator Instructions) Robert Brooks, Northland Capital.

（接線員指示）Robert Brooks，Northland Capital。

I thought it was interesting in the commentary that you shifted operational mix away from F-16 to more commercial aftermarket business aviation. Just wanted to hear more discussion on that. The verbiage makes it seem like you -- like the verbiage makes it seem like it was one or the other.

我覺得你們在評論中提到把營運組合從F-16轉向更多商用售後市場的商務航空業務，這點很有意思。我想多聽一些相關說明。措辭看起來好像你們——好像措辭暗示這是二選一。

And like you kind of [written] you have a limiting capacity of being able to execute on F-16 orders in commercial and aftermarket. But I don't think that's the case. So I just wanted to unpack that a little bit more by what you have?

而且你們似乎[書面]表示在執行F-16訂單與商用及售後市場方面存在產能限制，但我不認為是這樣。所以我想把這點再拆解一下，了解你們的意思？

Yes. Thank you, Bobby. So effectively, we -- the approval of Lockheed for the IPDG got us to kind of the -- what was getting us to the last couple of weeks of the quarter. There's over 80 hours of testing that goes for these boxes each before we ship them. And there wasn't much we could ship when you only had a few weeks left to the end of the quarter.

是的。謝謝你，Bobby。基本上，我們——洛克希德對IPDG的核准是在本季最後幾週才到位。這些盒子每一個在出貨前都要進行超過80小時的測試。而當距離季末只剩幾週時，你能出貨的量就不多。

So in anticipation for that, we did -- we focused the production more towards the commercial deliveries that we were doing. If we would have shipped more F-16 if the thing would have happened a little bit earlier like early in the quarter.

因此基於這個預期，我們確實——把生產重心更多放在我們正在進行的商用交付上。如果這件事能更早發生，例如在本季初，我們本來可以出貨更多F-16。

But it wasn't either/or situation. We have capacity here well over the numbers that we're delivering right now with the infrastructure that we have. It was just the way the F-16 product lines, the amount of time it takes at the end before we can test them and ship them, that would have made it difficult to ship a lot of F-16.

但這不是非此即彼的情況。以我們現有的基礎設施而言，我們的產能遠高於目前的交付量。只是F-16產品線在最後階段需要的時間——在我們能測試並出貨之前——會讓大量出貨F-16變得困難。

In previous quarter, we shipped -- last year, we did about -- roughly about $10 million of F-16 product lines due to all the pull-ins. On average, we think every quarter, the F-16 is going to be somewhere between $3 million to $5 million a quarter going forward. And I think this quarter, we just did over $3 million.

在之前的季度，我們出貨——去年因為各種提前拉貨，我們F-16產品線大約做了約1,000萬美元。平均來看，我們認為未來每一季F-16大概會落在每季300萬到500萬美元之間。而我想本季我們剛好做了略高於300萬美元。

And so that was kind of a little bit of a shift in the -- going from $10 million to $3 million, and we had to kind of fill in for it.

所以這算是一個小幅的轉變——從1,000萬美元降到300萬美元，我們必須在其他地方把缺口補上。

Got it. That's helpful. And that's -- especially the clarity on the -- you had the capacity to execute on both opportunities. Shifting gears to the acquisitions that you've done in the quarter, you kind of started -- as you mentioned in the prepared remarks, you started to build a pretty unique portfolio. I was just curious to hear what has the customer reception been?

了解，這很有幫助。尤其是釐清了——你們有能力同時執行兩個機會。換個話題談談你們本季做的收購，你們如同在準備發言中提到的，開始建立一個相當獨特的產品組合。我想了解客戶的反應如何？

Have you got an inbound after announcing these deals? Just wanted to hear what -- how customer conversations have evolved? Have new customers came into the fold because of the platform that you're accumulating? Just more color on that.

在宣布這些交易後，有沒有收到客戶主動找上門？想聽聽——客戶對話是如何演變的？是否因為你們正在累積的平台而帶來新客戶加入？希望你能多補充一些細節。

Sure. So I'll start with the acquisition we did from Moog. To the best of our understanding, their strategic objectives had shifted over time. The S-TEC product lines that they had acquired a while ago, they were kind of moving away from those product lines, their autopilot solutions that they offer in the market are more integrated into their cockpits.

當然。我先從我們向Moog收購的案子談起。就我們的理解，他們的策略目標隨時間有所轉變。他們先前收購的S-TEC產品線，後來有點逐步淡出；他們在市場上提供的自動駕駛解決方案更偏向整合到其座艙系統中。

So they wanted to divest these product lines because they weren't really supporting the customer base with it. After we did the acquisition, we've had significant inquiries from all over the world for people that want to buy these autopilot. This has been going on.

因此他們想出售這些產品線，因為他們並沒有真正用它來支援客戶群。完成收購後，我們收到來自全球各地大量的詢問，很多人想購買這些自動駕駛系統。這種情況一直在發生。

These product lines are well established. S-TEC autopilot is well established in the general aviation and business aviation markets. So it was very positive. We got a lot of inquiries, and we're in the process of building a backlog so we can deliver on these product lines to the market.

這些產品線本來就很成熟。S-TEC自動駕駛在通用航空與商務航空市場都相當成熟。所以反應非常正面。我們收到很多詢問，目前也正在建立訂單積壓（backlog），以便向市場交付這些產品線。

The Honeywell product lines that we got, there is OEM contents in that. I think there's still supply -- we still supply some of these to Pilatus as well as Boeing. And so that was very positive because their experience hadn't been that great with the parts of Honeywell that produce these equipment.

我們從Honeywell取得的產品線，其中包含OEM內容。我想我們仍——仍向Pilatus以及波音供應其中一些產品。因此這非常正面，因為他們過去與Honeywell內部生產這些設備的部門合作經驗並不是很好。

So we've gained a fair amount of momentum here, especially acquiring this many lines of autopilot product lines. We have acquired from Honeywell, we got the AeroCruze product line that goes in all the lower-end general aviation airplanes. And that's -- that's a good revenue generator that continues to do that.

所以我們在這裡獲得了相當的動能，尤其是一次收購了這麼多條自動駕駛產品線。我們從Honeywell收購了AeroCruze產品線，這套系統用在所有較低端的通用航空飛機上。而這——這是一個持續帶來收入的良好來源。

But also the next-generation that we got, which was the KFC 230, which is the new digital autopilot as well as KFC 325, which was the older generation of autopilots. Those are installed in over tens of thousands of aircraft, the KFC 325. So there is revenue associated with maintaining and upgrading those things.

此外，我們也取得了下一代產品，也就是KFC 230——新的數位自動駕駛——以及KFC 325（較舊一代的自動駕駛）。KFC 325已安裝在數以萬計的飛機上。因此在維護與升級這些設備方面，會有相應的收入。

The KFC 230 is going to be the workhorse for our own autopilot. It's a very capable digital autopilot that Honeywell developed like three, four years ago. And so, in aggregate, it's put us in a position where we -- I would say we're probably the largest autopilot suppliers right now in the market covering the spectrum of aircraft.

KFC 230將會成為我們自家自動駕駛的主力。這是一套能力很強的數位自動駕駛系統，Honeywell大概在三、四年前開發完成。綜合來看，這讓我們處於一個位置——我會說我們可能是目前市場上最大的自動駕駛供應商，涵蓋各類型飛機的全光譜需求。

That's very exciting to hear. And just last one for me is, could you compare -- can you compare your acquisition pipeline today comparatively to when you reported 1Q results?

聽起來非常令人振奮。我最後一個問題是，你能否比較——你們目前的收購案源（pipeline）相較於你們公布第一季（1Q）結果時的情況？

And then could you just speak towards your appetite for more, obviously, $33 million in acquisitions over the past two months is a healthy chunk. Do you want to get those integrated first before looking for more? Just thoughts there.

另外也想請你談談你們對進一步收購的意願。顯然，過去兩個月做了3,300萬美元的收購是相當可觀的一筆。你們是否想先把這些整合好再尋找更多？想聽聽你們的想法。

So we've -- obviously, we've expanded our engineering group as well as contracts and program management group to be able to more easily transfer these technologies into our organizations and do a build. We are at a position now where we're still looking at acquisitions. We've got the dry powder to go do that. Obviously, product line acquisitions are good, but we would only do that if they're strategic to us.

所以我們——很明顯地——已擴編工程團隊，以及合約與專案管理團隊，以便更容易把這些技術移轉到我們的組織並完成建置。我們目前仍在尋找收購機會。我們有充足的資金火力（dry powder）去做這些事。當然，產品線收購很好，但只有在對我們具策略意義時我們才會做。

We're also looking at acquiring businesses that complement us. And that's an active -- we've got a pretty active pipeline. And we will continue to evaluate. And if we find things that are of interest to us and they're profitable and the good businesses, we will acquire them.

我們也在評估收購能與我們互補的企業。這是一個活躍——我們有相當活躍的案源。我們會持續評估；如果我們找到我們感興趣、而且具獲利能力、屬於優質企業的標的，我們就會收購。

Congrats on a good quarter.

恭喜本季表現亮眼。

Greg Palm, Craig-Hallum.

Greg Palm，Craig-Hallum。

I'm curious, Shahram, you talked a little bit about the defense market and some of the opportunities that may or may not be emerging in light of the positive backdrop. Maybe you can expand a little bit on kind of what you're seeing pipeline and kind of what you're excited about over the next couple of years?

我很好奇，Shahram，你稍微談到國防市場，以及在正面背景之下可能正在浮現、也可能尚未浮現的一些機會。也許你可以再多談一點你所看到的案源管線（pipeline）情況，以及未來幾年你最感到興奮的部分是什麼？

Yes. I mean, in terms of the -- I mean, you see what the news is out there and the investment that our government is planning to make in the defense area. And there's a lot of aging aircraft that reside in our -- within the DoD and the funding they're making available to do upgrades to all of these airplanes.

是的。我的意思是，就——我的意思是，你也看到外界的新聞，以及我們政府計畫在國防領域投入的資金。而且在我們——在國防部（DoD）體系內有許多老舊飛機，政府也提供資金來對這些飛機進行升級。

There is very, very large programs out there, things like the KC-135, there is -- which is -- there's hundreds of those, about 600 of them out there. So there's a lot of inquiries going on right now. But also we talked about this over a year ago. When we did the acquisition on the F-16, it put us at the table with the decision makers at Lockheed Martin.

外面有非常、非常大型的專案，例如 KC-135——有——也就是——那邊有數百架，大約 600 架。所以目前有很多詢問正在進行。不過我們在一年多前也談過這件事。當我們收購 F-16 相關業務時，讓我們得以與洛克希德馬丁（Lockheed Martin）的決策者同桌討論。

They're very impressed with the way we've integrated and delivering these equipment to them. And that has opened a lot of new doors for us. So we're discussing a lot of other unrelated to F-16 programs as well as upgrades for the F-16 looking into the future.

他們對我們整合並交付這些設備給他們的方式印象非常深刻，而這也為我們開啟了許多新機會。因此，除了 F-16 之外，我們也在討論許多其他不相關的專案，同時也在展望未來、討論 F-16 的升級。

So we see a lot of positive feedback that we've had on how we executed on integration of the defense contracting organization into our organization. And we're upbeat about the future revenues we're going to get from it.

所以我們看到很多正面的回饋，來自於我們如何把國防承包組織整合進我們的組織並有效執行。我們對未來將從中取得的營收感到樂觀。

Yes. Okay. That sounds good. And as it relates to F-16, and maybe you can tie this out to what's baked into the guide for the current quarter, but does it assume -- I assume it's probably some sequential improvement in F-16, but does it imply kind of a normalization of revenues? Or are we still in a ramp-up phase? And if that's not the case, when does F-16 get to more of a normalized run rate?

是的。好的。聽起來不錯。那就 F-16 而言，也許你可以把這點連結到本季指引中已納入的假設：它是否假設——我猜 F-16 應該會有一些季對季改善，但這是否意味著營收已經回到某種常態化水準？還是我們仍處於爬坡（ramp-up）階段？如果不是，那 F-16 何時會達到較為常態的運行水準（run rate）？

I think we're there now. Moving forward, like I said, we're looking at about nominally $3 million to $5 million F-16 business a quarter. It's -- again, there is so much you can produce on that product line in a quarter because of the amount of time it takes to put these boxes through the required testing. And once that -- we are up and running now, that's kind of going to be the run rate for it.

我認為我們現在已經到了。往後如我所說，我們預期 F-16 業務每季名目上大約是 300 萬到 500 萬美元。這——再說一次，由於把這些盒子（設備）完成所需測試需要時間，所以每季能產出的量有限。而一旦——我們現在已經全面運轉，這大概就是它的常態運行水準。

Okay. I guess last one in light of kind of a pickup in some recent acquisition activity, what's your appetite going forward? And how does the pipeline specifically look versus maybe previous quarters?

好的。我想最後一個問題：鑑於近期併購活動似乎有所升溫，你們接下來的胃納如何？另外，與前幾季相比，你們的案源管線具體看起來如何？

Actually, pipeline looks very good. Honeywell is obviously, they're splitting the company at end of this quarter. So for this quarter, we haven't seen any product divestitures. That was at least related to us. But I'm pretty sure once that's over with, they will divest additional product lines that they've indicated planning to do so.

其實，案源管線看起來非常好。霍尼韋爾（Honeywell）顯然會在本季末拆分公司。所以就本季而言，我們還沒有看到任何產品剝離（divestitures）——至少沒有與我們相關的。但我很確定一旦那件事完成，他們會剝離更多他們已表示計畫要剝離的產品線。

Some of those are of interest to us. But we've now obviously opened up our aperture quite a lot. And we're looking at a lot of other companies' divestitures. And some of them are just product lines, some of them are divisions, which we find interesting, and we're looking at those.

其中有一些是我們感興趣的。不過我們現在顯然已把視野（aperture）擴大了很多，也在看其他公司更多的剝離案。有些只是產品線，有些是事業部門（divisions），我們覺得很有意思，也正在評估。

Sergey Glinyanov, Freedom Brokers.

Sergey Glinyanov，Freedom Brokers。

so many talks about F-16 program and now they are aware of redesign issues. Just wondering, could it impact on your revenue next couple of quarters or maybe it doesn't matter what's happening with the program overall?

大家談了很多 F-16 專案，現在也知道有重新設計（redesign）方面的問題。我想請問，這會不會影響你們未來幾季的營收？或者說，整體專案發生什麼其實不重要，你們仍然可以照常交付你們的產品？

Sorry, can you repeat that?

抱歉，你可以再重複一次嗎？

Yes, sure. So we are aware of F-16 redesign issues. Could this impact on your revenue next couple of quarters? Or it doesn't matter what's happening in this program overall and you can deliver anyway your products?

好的，當然。我們知道 F-16 有重新設計的問題。這會影響你們未來幾季的營收嗎？還是說不管這個專案整體發生什麼，你們都能照常交付你們的產品？

So this is Jeff. What I think you're asking is does that impact the fluctuation in the F-16 is going to go forward. And the answer to that is right now, it's up and running, the IPDG line is up and running. And that's where we're expecting a roughly $3 million to $5 million on a quarterly basis because, again, the amount of time to test the equipment in the chambers, it's 80 hours.

這裡是 Jeff。我想你問的是，這是否會影響未來 F-16 的波動。答案是：目前它已經在運轉，IPDG 產線已經在運轉。我們預期每季大約 300 萬到 500 萬美元，因為——再說一次——設備在測試艙（chambers）裡測試所需時間是 80 小時。

So that takes just the amount of time how much we can deliver. The backlog is still there for the -- keep that in mind for the F-16. So there's still a plenty amount of backlog to be built over the next few years.

所以這就決定了我們能交付多少。F-16 的積壓訂單（backlog）仍然在——請記住這點。因此，未來幾年仍有相當充足的積壓訂單可以生產。

Okay. Got it. Maybe I missed some point about your recent acquisitions. So maybe you can put some color on what portion of revenue will bring these new acquisitions?

好的，了解。也許我漏掉了你們近期併購的一些重點。你能否補充說明這些新併購大概會帶來多少營收？

Yes. As we said, it's about $10 million a year in revenue for the acquisitions that we just did.

是的。如我們所說，我們剛完成的這些併購一年大約帶來 1,000 萬美元的營收。

Okay. And the last one is in terms of your acquisition pipeline or recent acquisitions. On your commercial side, do you expect your revenue mix will shift toward products rather than services in the long term?

好的。最後一個問題是，就你們的併購管線或近期併購而言：在商用端（commercial side），長期來看你們是否預期營收組合會從服務轉向產品、提高產品比重？

Yes. And that's an ongoing thing. I think the original acquisitions that we did three years ago, it, kind of, increased our services significantly from what it was before. We were doing like roughly about $4 million or $5 million in services, and then it became $25 million in services.

是的。而且這是一個持續進行的趨勢。我認為我們三年前做的最初幾項併購，某種程度上讓我們的服務比重相較於之前大幅提高。之前我們服務大概只有 400 萬或 500 萬美元，後來服務就變成 2,500 萬美元。

But as we've done additional acquisitions and as we are developing our next-generation cockpits and platforms, that mix is changing. As a percentage, our production is getting larger than our -- than the way that the services are growing.

但隨著我們進一步併購，以及我們正在開發下一代座艙與平台，這個組合正在改變。以占比來看，我們的製造／產品（production）成長速度正變得高於——高於服務成長的速度。

Thank you. At this time, this concludes our question-and-answer session. I'll turn the floor back to management for closing comments.

謝謝。現在問答環節到此結束。我將把時間交還給管理層作結語。

Thank you, operator, and thank you all for your time and interest in Innovative Aerosystems. Have a great day.

謝謝接線員，也謝謝各位撥冗並對 Innovative Aerosystems 的關注與興趣。祝各位有美好的一天。

Thanks.

謝謝。

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

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