nLIGHT Inc (LASR) 2024 Q3 法說會逐字稿

Good day and welcome to the nLIGHT Inc third quarter, 2024 earnings call. At this time all participants are in a listen-only mode following the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question at that time, please press star one on your telephone keypad. You may remove yourself at any time by pressing star two. Please note today's call will be recorded lastly. If you should require operator assistance during today's call. Please press star zero.

大家好，歡迎參加 nLIGHT Inc 2024 年第三季財報電話會議。此時所有參與者都處於聆聽模式，聽完演講者的演講後，將有一個問答環節。如果您當時想要提問，請按電話鍵盤上的星號 1。您可隨時按二號星號退出。請注意，今天的通話將被最後錄音。如果您在今天的通話中需要接線員協助。請按星號零。

I will now turn the call over to John Marchetti. Please go ahead, sir.

現在我將電話轉給約翰·馬爾凱蒂。先生，請繼續。

Thank you and good afternoon, everyone. I am John Marchetti nLight's Vice President of Corporate Development and the Head of Investor Relations with me on the call today are Scott Keeney, nLight's Chairman and Chief Executive Officer and Joseph Corso, nLight's Chief Finance Officer.

謝謝大家，下午好。我是 nLight 公司企業發展副總裁 John Marchetti，今天與我一起參加電話會議的投資者關係主管還有 nLight 董事長兼執行長 Scott Keeney 和 nLight 財務長 Joseph Corso。

Today's discussion will contain forward-looking statements including financial projections and plans for our business. Some of which are beyond our control, including the risks and uncertainties described from time to time in our SEC filings.

今天的討論將包含前瞻性陳述，包括財務預測和我們的業務計劃。其中一些是我們無法控制的，包括我們向美國證券交易委員會提交的文件中不時描述的風險和不確定性。

Our results may differ materially from those projected-on today's call and we undertake no obligation to update publicly any forward-looking statement except as required by law during the call, we will be discussing certain non-GAAP financial measures. We have provided reconciliations to these non-GAAP financial measures to the most directly comparable GAAP financial measures in our earnings release, which can be found on the investor relations sections of our website.

我們的結果可能與今天電話會議上預測的結果有重大差異，我們不承擔公開更新任何前瞻性聲明的義務，除非電話會議上法律要求，我們將討論某些非公認會計準則財務指標。我們在收益報告中提供了這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳表，可在我們網站的投資者關係部分找到。

I will now turn the call over to Chairman and Chief Executive Officer Scott Keeney.

現在我將電話轉給董事長兼執行長 Scott Keeney。

Thank you, John.

謝謝你，約翰。

Third-quarter revenue of $56.1 million was above the midpoint of our guidance range and grew 11% both sequentially and year-over-year, our aerospace and defense business grew 59% year-over-year driven by record Aerospace & Defense product revenue.

第三季營收為 5,610 萬美元，高於我們預期範圍的中點，環比和年增 11%，我們的航空航太和國防業務年增 59%，這得益於創紀錄的航空航太和國防產品收入。

Our commercial business which includes our industrial and microfabrication and markets increased 12% sequentially products, gross margin of 28.8% and overall gross margins of 22.4% were both within our guidance range.

我們的商業業務（包括工業和微加工以及市場）較上季成長 12%，產品毛利率為 28.8%，整體毛利率為 22.4%，皆在我們的指導範圍內。

Our balance sheet remains strong, and we entered the third quarter with cash and investments of $107 million and no debt.

我們的資產負債表依然強勁，進入第三季時我們持有現金和投資 1.07 億美元並且沒有債務。

Let me start with the review of our aerospace and defense business which delivered another strong quarter of results and remains a key growth driver for our overall business in directed energy interest in our components. And full solutions continue to grow ongoing military operations in the Middle East. And Ukraine highlights the increasing need for advanced cost-effective defensive weapon technology to update you on our programs. We have discussed in the past, we continue to make good progress in our healthy 2 program, which is a multiyear funded $171 million program to develop a 1-megawatt laser with the completion date still expected sometime in 2026.

首先，我要回顧我們的航空航太和國防業務，該業務又取得了強勁的季度業績，並且仍然是我們零件定向能業務整體成長的主要動力。而完整的解決方案將持續加強中東地區的軍事行動。烏克蘭強調，對先進、具成本效益的防禦武器技術的需求日益增加，以便向您通報我們的計畫。我們過去曾討論過，我們的健康 2 計劃繼續取得良好進展，這是一項多年資助的 1.71 億美元計劃，旨在開發 1 兆瓦雷射器，預計完成日期仍在 2026 年的某個時候。

Another critical program for nLight is the army's DDM shored effort which is to develop a 50-kilowatt high energy laser for short range air vests on this program inly is responsible for delivering a 50-kilowatt high energy laser to a prime contractor. And during the third quarter, we finalized the design and began delivering some of the most critical hardware components of this being combined laser.

nLight 的另一個重要項目是陸軍的 DDM 支援工作，即為短程空氣背心開發一種 50 千瓦高能雷射器，該專案僅負責向總承包商交付 50 千瓦高能雷射。在第三季度，我們完成了設計並開始交付該組合雷射的一些最關鍵的硬體組件。

The successful delivery of these components once again highlights the importance of our vertical integration strategy in the directed energy market where these enabling components have been specifically designed to optimize the performance of the high energy laser.

這些組件的成功交付再次凸顯了我們在定向能市場中垂直整合策略的重要性，這些支援組件經過專門設計，可以優化高能量雷射的性能。

And it is not just the United States military which sees the potential benefits of directed energy systems.

而且，並不是只有美國軍方看到了定向能係統的潛在優勢。

Just last week, Israel's Ministry of Defense announced that it would spend over $500 million towards iron beam, an Israeli ground-based laser system for defense against aerial threats including rockets, mortars, drones and missiles with a target delivery date during 2025.

就在上週，以色列國防部宣布將投入超過 5 億美元用於研發“鐵束”，這是以色列的一種地基雷射系統，用於防禦火箭、迫擊砲、無人機和飛彈等空中威脅，目標交付時間為 2025 年。

Israel's announcement is another example of how directed energy is increasingly being viewed as a critical part of a layered defense strategy.

以色列的聲明是定向能日益被視為分層防禦戰略關鍵組成部分的另一個例子。

Directed energy lasers offer a significant operating cost advantage compared to traditional kinetic weapons and a deep magazine and like continues to leverage its vertical integration from semiconductor chips through beam combined lasers to address customers in the United States and overseas. We have generated revenue at nearly every level of vertical integration in the directed energy market which makes us an ideal supplier to the United States government, other prime contractors and foreign allies.

定向能雷射與傳統動能武器和深彈匣相比具有顯著的營運成本優勢，並繼續利用從半導體晶片到光束組合雷射的垂直整合來滿足美國和海外的客戶需求。我們幾乎在定向能市場的每個垂直整合層面都創造了收入，這使我們成為美國政府、其他總承包商和外國盟友的理想供應商。

Our laser sensing business was also a strong contributor to a record revenue quarter in Aerospace & Defense.

我們的雷射感測業務也為航空航太和國防業務創紀錄的收入季度做出了重要貢獻。

As a reminder, laser sensing products use lasers to detect and measure objects and are used in a wide range of land, sea air and space applications.

提醒一下，雷射感測產品使用雷射來檢測和測量物體，並廣泛應用於陸地、海洋、空中和空間。

Our laser sensing products include missile guidance, proximity detection range finding and countermeasures and have been incorporated into several significant and long running defense programs.

我們的雷射感測產品包括飛彈導引、近距探測測距和對抗措施，並已納入多個重大且長期運作的國防計畫。

Last quarter, we announced a new $25 million contract for an existing long running missile program, and we began shipping against this award in the third quarter. We have also continued to make excellent progress on a handful of classified programs in one of these programs. We shipped our first EMD or engineering and manufacturing development unit. The EMD phase is focused on building testing and qualifying the solution to ensure it meets all operational requirements.

上個季度，我們宣布了一項價值 2500 萬美元的新合同，用於現有的長期導彈項目，並將於第三季度開始發貨。我們也在其中一個專案的幾個機密專案上取得了巨大進展。我們運送了第一個EMD或工程和製造開發單元。EMD 階段專注於建立測試和驗證解決方案，以確保其滿足所有操作要求。

Our customers forecast suggests that the low-rate initial production should start for this program in the latter half of 2025.

根據我們的客戶預測，該專案的低速率初始生產將於 2025 年下半年開始。

Before turning to a review of our commercial markets. I would like to provide an update on our manufacturing activities in China.

在回顧我們的商業市場之前。我想介紹一下我們在中國的製造活動的最新情況。

Several years ago, we embarked upon a process to reduce our overall reliance on our Shanghai manufacturing facility.

幾年前，我們開始採取措施減少對上海製造工廠的整體依賴。

While we continue to maintain a presence in China. By the beginning of the fourth quarter, we formally ceased all manufacturing operations in Shanghai.

我們將繼續在中國保持業務存在。到第四季初，我們正式停止了上海的所有製造業務。

Manufacturing that has been performed in this region is now being performed at a contract manufacturer in Thailand or at our automated facility in the United States.

在該地區進行的製造現已由泰國的合約製造商或我們位於美國的自動化工廠進行。

While it will still take a few quarters to ramp back to normalized production levels. We are pleased with the transition to date, and we believe this represents the last significant operational transition from China.

但仍需要幾個季度的時間才能恢復正常生產水準。我們對迄今為止的過渡感到滿意，我們相信這是中國最後一次重大的營運過渡。

Let me now spend a few minutes on our commercial markets.

現在請容許我花幾分鐘來談談我們的商業市場。

In microfabrication, we provide high brightness, high power semi-lasers to many of the world's leading dial pulse. So, the state laser vendors which are used across a wide range of applications.

在微加工領域，我們為全球多家領先的撥接脈衝公司提供高亮度、高功率的半雷射。因此，國家雷射供應商的應用十分廣泛。

Third quarter, microfabrication revenue group 40% sequentially to $14 million. While we are pleased with our revenue in the quarter, we expect volatility in this business to continue as overall demand remains choppy in industrial growth, challenges remain in cutting which remains the largest portion of our industrial business overall demand remains weak and we expect this to remain the case through the end of the calendar year and into 2025 our cutting revenue is now driven almost exclusively by our proprietary high power programmable lasers. And while Chinese laser suppliers continue to gain market share in standard lasers, we continue to innovate to meet our customers' most demanding needs.

第三季度，微加工集團營收季增40%，至1,400萬美元。雖然我們對本季度的收入感到滿意，但我們預計該業務的波動性將持續，因為工業增長中總體需求仍然波動，切割方面仍然存在挑戰，而切割仍然是我們工業業務的最大部分，整體需求仍然疲軟，我們預計這種情況將持續到今年年底和 2025 年，我們的切割收入現在幾乎完全由我們專有的高功率可編程激光器驅動。在中國雷射供應商繼續贏得標準雷射器市場份額的同時，我們不斷創新以滿足客戶最苛刻的需求。

For example, in the third quarter, we introduced our new Infinity product which is optimized for complex precision metal cutting applications.

例如，在第三季度，我們推出了針對複雜精密金屬切割應用進行了最佳化的新產品 Infinity。

Demand for welding solutions remains muted as much of the advanced battery and fuel cell manufacturing capacity that is expected to be installed over the coming years continues to be delayed on softer overall demand, we are receiving positive feedback from the existing and potential customers on the new welding products released last quarter, namely APT well-formed and process guard in additive manufacturing. We are committed to working with many strategic customers and partners that are focused on driving broad adoption of metal 3-dimensional printing technologies across multiple end markets.

由於整體需求疲軟，預計未來幾年安裝的先進電池和燃料電池製造能力大部分繼續被推遲，因此對焊接解決方案的需求仍然低迷，我們收到了現有和潛在客戶對上個季度發布的新焊接產品的積極反饋，即增材製造中的 APT 成型和工藝防護。我們致力於與眾多策略客戶和合作夥伴合作，致力於推動金屬三維列印技術在多個終端市場的廣泛應用。

We believe that one of the most critical challenges facing the additive manufacturing industry is to reduce the overall build time and overall cost per part to address this industry wide pain point and light continues to introduce new products and increase the printing speed and flexibility of additive manufacturing tools. Our AFX dynamic beam shaping technology allows for high resolution printing for fine detail features while also offering faster build rates, utilizing stable ring mode, power, making it the most versatile and efficient laser available for the additive manufacturing market.

我們認為，積層製造業面臨的最關鍵挑戰之一是減少每個零件的整體建造時間和整體成本，以解決這一行業範圍內的痛點並繼續推出新產品並提高增材製造工具的列印速度和靈活性。我們的 AFX 動態光束整形技術可實現精細細節特徵的高解析度列印，同時還提供更快的建造速度，利用穩定的環模式和功率，使其成為增材製造市場上用途最廣泛、最高效的雷射。

Power lasers drive more productivity and laser powder bed fusion. However, the lasers available for additive manufacturing today do not allow for powers higher than one kilowatt without introducing untenable amounts of instability in the melt pool. Our corona an X family of lasers distribute the energy into ring shape, making it possible to move to higher power processes with the stability required to produce high quality parts.

強力雷射可提高生產力和雷射粉末床熔合率。然而，目前用於積層製造的雷射無法實現高於一千瓦的功率，否則會在熔池中引入難以忍受的不穩定性。我們的 Corona X 系列雷射將能量分佈成環狀，從而可以轉向更高功率的工藝，並具有生產高品質零件所需的穩定性。

Earlier this week, we announced the launch of our new Chron AFX 2000 A specialized 2-kilowatt laser proving to boost productivity in laser powder bed fusion for metal additive manufacturing.

本週早些時候，我們宣布推出新型 Chron AFX 2000 A 專用 2 千瓦雷射器，可提高金屬增材製造中雷射粉末床熔合的生產效率。

The AFX 2000 has undergone successful commercial validation with a leading customer servicing the aerospace and defense and automotive markets using aluminum alloys. This customer is now achieving print speeds up to 3 times faster when prepared today's meeting large format printers.

AFX 2000 已成功通過使用鋁合金為航空航太、國防和汽車市場提供服務的領先客戶的商業驗證。現在，當使用現今的會議大幅面印表機時，該客戶的列印速度可提高 3 倍。

In summary, in the industrial market, we remain enthusiastic about our long-term opportunities in metal 3-dimensional printing. However, we continue to experience significant headwinds in our commercial markets which we expect to persist well into 2025 in aerospace and defense. We expect the excellent progress we made in the third quarter to continue, and it positions us well for both near and long-term growth in this strategic market.

總而言之，在工業市場，我們對金屬3D列印的長期機會仍然充滿熱情。然而，我們在商業市場中繼續面臨巨大的阻力，我們預計這種阻力將持續到 2025 年，在航空航太和國防領域。我們預計第三季的出色進展將持續下去，這為我們在這個策略市場的近期和長期成長奠定了良好的基礎。

With that, I will turn the call over to [Joe] to discuss third quarter financial results.

說完這些，我將把電話轉給 [Joe] 討論第三季的財務結果。

Thank you, Scott. Turning to the third quarter results total revenue in the third quarter was $56.1 million. An increase of 11% compared to the $50.6 million for the third quarter of 2023 and above the midpoint of guidance products revenue was $41.1 million. An increase of 8% compared to the $38.1 million. For the third quarter of 2023 development revenue was $15 million. An increase of 20% compared to the $12.5 million. In the third quarter of 2033 aerospace and defense revenue for the third quarter was a record $30.3 million. 54% of total revenue and an increase of 59% compared to the third quarter of 2023. A&B product revenue in the third quarter was also a record high at $15.3 million growing 135% year-over-year and 35%. Sequentially, our strong performance in Aerospace & Defense was driven by an initial ramp of product sales into a key directed energy program. And the continued execution of a long running laser sensing program micro fabrication revenue for the third quarter was $14.3 million. 25%of total revenue and an increase of 19% compared to the same quarter a year ago.

謝謝你，斯科特。回顧第三季業績，第三季總營收為 5,610 萬美元。與 2023 年第三季的 5,060 萬美元相比成長了 11%，且高於指導產品收入中點的 4,110 萬美元。與 3810 萬美元相比增長了 8%。2023 年第三季的開發收入為 1,500 萬美元。與1250萬美元相比增加了20%。2033年第三季航空航太和國防收入創下第三季的3,030萬美元。佔總營收的54%，較2023年第三季成長59%。第三季A&B產品營收也創下新高，達1,530萬美元，年增135%，增幅為35%。隨後，我們在航空航太和國防領域的強勁表現得益於關鍵定向能專案產品銷售的初步成長。而長期運作的雷射感測計劃微製造的持續執行，第三季的收入為1430萬美元。佔總營收的25%，比去年同期成長19%。

Although quarter three was a more typical quarter for us, most of our revenue micro fabrication is very short lead times and visibility beyond a quarter remains limited industrial revenue for the third quarter was $11.6 million. 21% of total revenue and a decrease of 41% compared to the third quarter of 2023.

雖然第三季度對我們來說是一個更典型的季度，但我們大部分收入微製造的交貨時間都很短，並且一個季度後的可見性仍然有限，第三季度的工業收入為 1160 萬美元。佔總營收的21%，與2023年第三季相比下降了41%。

While we continue to serve several key strategic customers with our differentiated programmable lasers, overall market demand in each of our 3 segments is muted. Moreover, in the cutting market, continued competition from domestic Chinese laser manufacturers has had and is expected to continue to have a significant impact on our sales of standard fiber lasers.

雖然我們繼續透過差異化的可編程雷射為幾個關鍵策略客戶提供服務，但我們三個細分市場的整體市場需求卻不高。此外，在切割市場，來自中國國內雷射製造商的持續競爭已經並預計將繼續對我們的標準光纖雷射的銷售產生重大影響。

Turning to gross margin total gross margin in the third quarter was 22% within our guidance range and up 2% points compared to 20% in the same period. A year ago, product gross margin for the third quarter increased to 29% compared to 24% in the third quarter of 2023. The increase in product gross margin was driven by a favorable sales mix pricing and an overall increase in product volumes which resulted in better absorption of fixed costs.

談到毛利率，第三季的總毛利率為 22%，在我們的指導範圍內，較去年同期的 20% 上升了 2 個百分點。去年同期，第三季的產品毛利率為 29%，而 2023 年第三季為 24%。產品毛利率的提高得益於有利的銷售組合定價以及產品總量的整體增加​​，從而更好地吸收了固定成本。

These improvements were partially offset by an inventory write off of approximately $900,000 or 200 basis points for a specific customer in our industrial market development, gross margin in the third quarter decreased to 5% compared to 7% in the same period a year ago. The lower development gross margin was driven by an increase in the estimated cost of completion on a significant fixed price contract in the third quarter of 2024.

這些改進部分被我們工業市場開發中特定客戶的約 90 萬美元或 200 個基點的庫存註銷所抵消，第三季的毛利率從去年同期的 7% 下降至 5%。開發毛利率下降的原因是 2024 年第三季一項重要固定價格合約的預計完工成本增加。

Despite the lower-than-expected development gross margin in the quarter, we continue to expect our development margin to remain in the high single digit range over the intermediate term turn topics.

儘管本季的開發毛利率低於預期，但我們仍然預計，在中期內，我們的開發利潤率將保持在高個位數範圍內。

Non-GAAP operating expenses were $18.3 million. An increase of $2.3 million compared to the third quarter of 2023. The increase in operating expenses were driven by an increase in employee costs and project related spending in research and development as well as a bad debt charge in the quarter of approximately $1 million related to a specific customer in our industrial market.

非公認會計準則營業費用為 1830 萬美元。與 2023 年第三季相比增加了 230 萬美元。營業費用的增加是由於員工成本和專案相關研發支出的增加，以及本季與我們工業市場特定客戶相關的約 100 萬美元的壞帳費用。

On a GAAP basis. Operating expenses were $24.3 million. An increase of $1.9 million compared to the third quarter of 2023 net loss on a non-GAAP basis was $3.7 million or $0.08 per share compared to a net loss of $4.9 million or $0.10 per share for the third quarter of 2023. Net loss on a GAAP basis was $10.3 million or $0.21 per share compared to a net loss of $11.9 million or $0.26 per share for the third quarter of 2023 adjusted EBITDA was a negative $1 million compared to a negative $1.9 million for the third quarter of 2023.

根據 GAAP 基礎。營業費用為 2,430 萬美元。與 2023 年第三季相比，非 GAAP 淨虧損增加了 190 萬美元，為 370 萬美元或每股 0.08 美元，而 2023 年第三季的淨虧損為 490 萬美元或每股 0.10 美元。以 GAAP 計算的淨虧損為 1,030 萬美元或每股 0.21 美元，而 2023 年第三季的淨虧損為 1,190 萬美元或每股 0.26 美元；調整後的 EBITDA 為負 100 萬美元，而 2023 年第三季的淨虧損為負 190 萬美元。

Adjusted for the third quarter of 2024 includes the bad debt charge and inventory write off related to a specific customer as previously discussed.

2024 年第三季的調整包括與特定客戶相關的壞帳費用和庫存註銷，如前所述。

Turning now to the balance sheet. We ended the third quarter with total cash equivalents restricted cash and investments of approximately $107 billion and no debt. We continue to improve our management of working capital. During the quarter, average Days Sales Outstanding improved to 58 days compared to 65 days at the end of 2023. And inventory at the end of the third quarter was $48.8 million representing 104 days of inventory compared to 122 days. At the end of 2023, cash used in operations was $5.6 million for the third quarter. Year-to-date cash flow provided by operations is a positive $1.5 million. CapEx was $1.6 million in the quarter compared to $2.7 million in the third quarter of 2023.

現在來看看資產負債表。截至第三季度，我們的現金等價物總額（受限現金和投資）約為 1,070 億美元，且沒有債務。我們不斷改善營運資金管理。本季度，平均應收帳款週轉天數從 2023 年底的 65 天改善至 58 天。第三季末的庫存為 4,880 萬美元，庫存天數為 104 天，而之前為 122 天。截至 2023 年底，第三季營運現金使用量為 560 萬美元。年初至今經營活動產生的現金流為正 150 萬美元。本季的資本支出為 160 萬美元，而 2023 年第三季的資本支出為 270 萬美元。

As noted in prior quarters, maintaining a strong balance sheet remains a key focus of the company, tight spending controls, coupled with working capital management and sound CapEx investment has enabled us to maintain a balance sheet that we believe will enable us to achieve our long-term growth objectives.

正如前幾季所指出的，維持強勁的資產負債表仍然是公司的重點，嚴格的支出控制，加上營運資本管理和合理的資本支出投資使我們能夠維持資產負債表，我們相信這將使我們能夠實現長期成長目標。

Turning out guidance. Based on the information available today, we expect revenue for the fourth quarter to be in the range of $49 million to $54 million.

出現指導。根據今天掌握的信息，我們預計第四季的營收將在 4,900 萬美元至 5,400 萬美元之間。

The midpoint of approximately $51.5 million includes approximately $36.5 million of product revenue and $15 million of development revenue included in our fourth quarter. Guidance is our expectation for continued sequential growth in our Aerospace & Defense products.

約 5,150 萬美元的中間值包括我們第四季約 3,650 萬美元的產品收入和 1,500 萬美元的開發收入。指導是我們對航空航太和國防產品持續連續成長的預期。

It is important to keep in mind that 100% of our fourth quarter Aerospace & Defense revenue is already in backlog. But the timing of the delivery of that backlog can be uncertain particularly as we are dealing with new and innovative directed energy related products.

重要的是要記住，我們第四季的航空航太和國防收入 100％ 已經積壓。但這些積壓產品的交付時間可能不確定，特別是當我們處理新的和創新的定向能相關產品時。

Fourth quarter product gross margin expected to be in the range of 21% to 25%. And development gross margin expected to be approximately 8% resulting in an overall gross margin range of 17% to 21%.

第四季產品毛利率預計在21%至25%之間。預計開發毛利率約8%，整體毛利率範圍為17%至21%。

Finally, we expect adjusted EBITDA for the fourth quarter of 2024 to be in the range of negative five to negative $2 million. We continue to estimate break even adjusted EBITDA with quarterly revenue in the $55 million to $60 million range. With that, I will turn the call over to the operator for questions.

最後，我們預計 2024 年第四季的調整後 EBITDA 將在負 500 萬美元至負 200 萬美元之間。我們繼續預期盈虧平衡調整後的 EBITDA 季度營收將在 5,500 萬美元至 6,000 萬美元之間。說完這些，我將把電話轉給接線生來回答問題。

Thank you. The flow is now open for your questions. If you have a question or comment at this time, please press star one on your telephone keypad. You may remove yourself at any time by pressing Star two. Once again, if you would like to ask a question, please press star one at this time. (operator instructions)

謝謝。現在可以接受您的提問了。如果您此時有任何問題或意見，請按電話鍵盤上的星號鍵。您可隨時按星號二退出。再次強調，如果您想提問，請此時按星號 1。（操作員指令）

Our first question will come from Jim Ricchiuti with Needham & Company. Please go ahead.

我們的第一個問題來自 Needham & Company 的 Jim Ricchiuti。請繼續。

Hi, thank you. I was wondering if you could talk to us about your line of sight to product revenue in the Aerospace & Defense business. Looking beyond quarter four that you highlighted several areas that sounds like potentially could begin scaling. But is there any way to give us a better understanding as we look out beyond quarter four. How some of that product revenue could begin to develop?

你好，謝謝。我想知道您是否可以與我們談談您對航空航天和國防業務產品收入的看法。展望第四季之後，您強調了幾個聽起來可能開始擴展的領域。但當我們展望第四季之後，有沒有什麼方法可以讓我們更能理解呢？部分產品收入將如何開始成長？

Absolutely, Jim, thanks for your question. I think you are getting a key topic. I think certainly one of the highlights in quarter three was the record revenue that we saw in defense overall, but in particular, in the products for defense and the growth there is a key driver for our business. As [Joe] mentioned, we do have a very strong backlog and so we have got good visibility into continued growth in the products for defense and they are in all of our key segments in both directed energy and in sensing.

當然，吉姆，謝謝你的提問。我認為您已經抓住關鍵主題了。我認為第三季的一大亮點是國防整體收入創下了歷史新高，特別是國防產品收入，而這一成長是我們業務的關鍵驅動力。正如 [Joe] 所提到的，我們確實有非常強勁的積壓訂單，因此我們對國防產品的持續成長有很好的預見性，它們涵蓋了定向能和感測領域的所有關鍵領域。

And in terms of our guidance, as [Joe] mentioned, we certainly have the backlog, the deliveries are related to important programs where it is new technology. So the timing of that revenue can be an issue, but we have very strong visibility into continued growth there and maybe I will hand it to [Joe] anything you want to add to that Joe with particular topics for Jim?

就我們的指導而言，正如 [Joe] 所提到的，我們肯定有積壓訂單，交付與新技術的重要項目有關。因此，收入的時間安排可能是一個問題，但我們對其持續成長有非常強的預見性，也許我會把它交給 [Joe]，你想為 Joe 補充什麼，以及與 Jim 相關的特定主題嗎？

No, I think you captured that. Well, Scott.

不，我想你已經抓住了這一點。好吧，斯科特。

Thank you.

謝謝。

And Scott, because it has been in the news so much. Are you able to talk to us a little bit about the level of engagement you have with some of the defense primes in Israel including those that are working on the iron being project?

還有斯科特，因為它經常出現在新聞中。您能否向我們簡單介紹一下您與以色列一些國防主要部門（包括參與鐵礦石計畫的部門）的合作程度？

It is fair to say that our engagement is very deep. I think we have talked about that a bit in the past. And we are a supplier into iron beam, and we are deeply engaged with not only the current products, but the future development there. Beyond that, it has gotten a little bit more difficult. Certainly, there is the news about the $500 million award. And you will call in addition to that. There is $1.2 billion supplemental bill that was passed. So the funding for iron beam is very solid and yes, we are deeply engaged with the key players supporting that new technology.

可以說我們的合作非常深入。我想我們過去已經談論過這個問題。我們是鐵樑供應商，我們不僅深度參與現有產品，也深度參與未來產品的發展。除此之外，事情就變得有點困難了。當然，有關​​於 5 億美元獎金的消息。除此之外，您還會打電話。價值12億美元的補充法案已獲得通過。因此，鐵樑的資金非常充足，而且我們與支持這項新技術的主要參與者進行了深入的合作。

And, I had one final quick question just on the commercial business. You highlighted some improvement in the micro fabrication market, and I know it is going to be uneven. but I am just curious, where is that coming from?

最後，我還有最後一個關於商業業務的簡短問題。您強調了微加工市場的一些改善，但我知道它會不平衡。但我很好奇，它是從哪裡來的？

That was coming from an existing long-term customer was probably the biggest source of that. As we said in the prepared remarks, that is not a signal. That we want to overly highlight. That was orders in the quarter for long-term customer.

這可能是來自現有長期客戶的最大原因。正如我們在準備好的發言中所說，這不是一個信號。我們想特別強調這一點。這是本季長期客戶的訂單。

Okay, thank you.

好的，謝謝。

Thank you. Our next question will come from Greg Palm with Craig-Hallum Capital Group. Please go ahead.

謝謝。我們的下一個問題來自 Craig-Hallum Capital Group 的 Greg Palm。請繼續。

Good afternoon. Thanks for taking the questions. Starting with the commercial business. I think the implied guide suggests a pretty significant both sequential and year-over-year decline in revenue. And I know [Joe] last quarter, you sort of directionally guided towards $210 million for the year. The quarter 4 guide puts you well below that. I guess the question is what happened in such a short amount of time where you are seeing such a shortfall relative to not that guide itself, but that sort of target that you had out there.

午安.感謝您回答這些問題。從商業業務開始。我認為隱含的指引表明收入將出現相當明顯的連續和同比下降。我知道 [Joe] 上個季度，您已經將全年目標設定為 2.1 億美元。第四季的指南將你的預期控制在遠低於該水準。我想問題在於，在如此短的時間內發生了什麼，導致您看到的差距如此之大，不是相對於指南本身，而是相對於您所設定的目標。

Greg, it is pretty simple, right? I think we talked about the volatility in the commercial business and the lack of visibility that we have on a quarter-over-quarter in basis, right? If we go back to how we thought that the year would shape up defense has been a very good year for us. Scott talked about the timing of our defense business can be somewhat uncertain. We made great progress from an overall a business perspective in defense. There was a little bit less than what we had hoped for, but we are pretty happy with our trajectory. As we have talked about in the past, right? We have one quarter of guidance and lack of visibility beyond that in the commercial business. We talked last quarter about but seeing some better signs of life in the micro business. We had a very good quarter three. We do not expect that level of quarter three to repeat in quarter four. And we have seen continued pressure on the in the industrial business, particularly on the non-programmable side of the product Portfolio.

格雷格，這很簡單，對吧？我想我們談論了商業業務的波動性以及季度環比缺乏可見性，對嗎？如果我們回顧我們對今年防守情況的看法，那麼今年對我們來說是非常好的一年。史考特談到我們的國防業務的時機可能有些不確定。從整體業務角度來看，我們在國防方面取得了巨大進展。雖然比我們所希望的要少一些，但我們對我們的發展軌跡非常滿意。正如我們過去談論過的，對嗎？我們有一個季度的指導，但商業業務方面缺乏超出這一範圍的可見性。我們在上個季度討論過這個問題，但看到微型企業出現了一些更好的生命跡象。我們的第三節表現非常好。我們預計第三季的水平不會在第四季重演。我們看到工業業務持續面臨壓力，特別是產品組合中不可編程的部分。

That makes sense and Scott your comments about commercial remaining challenged in the near term throughout in the fiscal year '25. Does that mean expect it to get worse compared to quarter four levels or is your thought just staying at the sort of low levels that the guide implies for quarter four?

這很有道理，斯科特，你關於商業在 25 財年短期內仍面臨挑戰的評論。這是否意味著預計情況會比第四季度的水平更糟，還是您的想法只是停留在指南暗示的第四季度的低水平？

It is hard to say given all the news out there and it ranges from as we have talked about the one of the underlying headwinds here is just massive excess capacity in China across every sector I can see beyond just lasers. That is a bit of a headwind on the opposite side, there were a number of customers in the industrial market that were waiting for the election results and, and who knows what that means in terms that may flow from that. But I think we are certainly not guiding to that being the growth driver for us, the growth driver is Aerospace & Defense, and I just want to be clear about that.

鑑於目前的所有新聞，很難說，正如我們已經討論過的，這裡的潛在阻力之一是中國在雷射器之外的所有領域都存在巨大的產能過剩。這對另一面來說是一個小小的阻力，工業市場中有許多客戶正在等待選舉結果，誰知道這意味著什麼？但我認為，我們肯定不會將其作為我們的成長動力，成長動力是航空航太和國防，我只是想明確這一點。

Greg, let me just let me just add a little bit of color to what Scott just said. So our commercial business as is implied by the quarter four guide will be down and we really do not expect any significant rebound from those levels in 2025. Now keep in mind we do not have great visibility into a full year basis is why we do not provide any formal annual guidance. And then we are still seeing good progress in the in the additive business, but that is not going to be enough to offset our expected decline in some of the area, other areas of our commercial business.

格雷格，讓我對史考特剛才說的話做一點補充。因此，正如第四季度指南所暗示的那樣，我們的商業業務將會下滑，我們確實預計 2025 年的水平不會出現任何顯著反彈。現在請記住，我們對全年情況沒有很好的了解，這就是我們不提供任何正式年度指導的原因。我們仍然看到添加劑業務取得了良好的進展，但這不足以抵消我們商業業務某些領域其他領域的預期下滑。

Okay. And I am curious in terms of the Chinese suppliers specifically. How impactful or competitive are they here in the United States at this point? And I ask in light of potential tariffs that could be put on and whether you think that could impact that business or not?

好的。我特別對中國供應商感到好奇。他們目前在美國的影響力和競爭力有多大？我想問一下，考慮到可能徵收的關稅，您是否認為這會影響該業務？

I guess the way I look at it, Greg. it is broader than just our visibility into specific customers say in the United States because our customers are affected by competition in capacity that there is excess capacity that is going into other markets and their customers shifting from, say the United States to Mexico or elsewhere. The dynamics are quite complex. I think the underlying theme is one that is ultimately driven by massive excess capacity in China. And certainly, on the margin higher tariffs certainly could help with some of our customers in the United States. But I think it is more complex than just that.

我想我是這樣看待這件事的，格雷格。這不僅限於我們對美國特定客戶的了解，因為我們的客戶受到產能競爭的影響，過剩產能流入其他市場，而他們的客戶則從美國轉移到墨西哥或其他地方。其中的動態相當複雜。我認為，根本原因在於中國嚴重的產能過剩。當然，從邊際提高關稅肯定能對我們在美國的一些客戶有所幫助。但我認為事情遠比這複雜得多。

Okay, fair enough. Last one, Aerospace and Defense really nice bright spot again based on your backlog levels. Knowing you have got a lot better visibility in this business, but also cognizant of the timing. The guy assumes at least 20% growth in that segment for the year on a year, over year basis is that repeatable in 2025?

好吧，夠公平。最後一個，根據您的積壓水平，航空航天和國防再次成為一個真正的亮點。知道您在這個業務上獲得了更好的知名度，同時也意識到了時機。該人假設該領域每年的成長率至少為 20%，那麼 2025 年能否重複這一成長率？

Me take that one. (multiple speakers) So Greg, the short answer is our aerospace and defense business as we go into 2025 is either covered by backlog or in our build plan that we fully expect to be building. What is not as certain is that as Scott alluded to earlier in the call. Right. Some of these products that we are building, particularly on the product side are really pushing the edge of technology. Right. And it is really difficult to pinpoint exactly what quarter they are going to come in and then the other piece, even though we have, I will just call them the design wins when that is actually going, the customer is going to take it or when exactly we are going to build it. That is what creates the level of uncertainty in being able to give you a direct answer of whether it is 20% up in 2025. That all being said, we do expect growth to continue throughout the 2025 period and beyond. And as we think about how we have outlined the I will call them the long-term bets of the company, right? The Aerospace & Defense piece of our business is going quite well.

我拿那個。（多位發言者）格雷格，簡而言之，到 2025 年，我們的航空航天和國防業務要么包含在積壓訂單中，要么包含在我們完全有望建設的建設計劃中。但尚不確定的是，正如斯科特早些時候在電話中提到的那樣。正確的。我們正在開發的一些產品，特別是在產品方面，確實推動了技術的前沿。正確的。而且，確實很難準確指出它們會在哪個季度進入市場，然後是其他部分，即使我們有，我也會稱它們為設計獲勝，當它們實際上進行時，客戶會接受它，或者我們究竟什麼時候會建造它。這就是為什麼我們無法直接回答 2025 年是否會成長 20% 這個問題，這存在不確定性。話雖如此，我們確實預計成長將持續到 2025 年及以後。當我們思考我們如何概述時，我會稱它們為公司的長期賭注，對嗎？我們的業務中的航空航太和國防部部分進展順利。

It seems to be okay. I will leave it there. Thanks.

好像還可以。我就把它留在那裡。謝謝。

Thank you, sir. Our next question will come from Ruben Roy with Stifel. Please go ahead.

謝謝您，先生。我們的下一個問題來自 Stifel 的 Ruben Roy。請繼續。

Thanks. I Scott and [Joe]. Scott, I was wondering if we can go back to the backlog a little bit and if you could just maybe talk about directionally kind of how backlog has progressed. And especially in light of sort of, what you said with some of the data points coming out. Now, are you seeing that show up in backlog yet? I know you started off the year very strong with some backlog growth and just kind of wondering how that is progressed, I guess.

謝謝。我斯科特和[喬]。史考特，我想知道我們是否可以稍微回顧一下積壓問題，您是否可以談談積壓問題的進展方向。尤其是考慮到您所說的一些數據點。現在，你看到積壓訂單中出現了嗎？我知道你們今年開局非常強勁，有一些積壓訂單成長，我只是想知道進展如何。

In summary, it is progressing, and I think to specifically answer the question, are we seeing some of the news we are talking about manifest in our backlog short answer. And so, we are seeing expansion in orders, expansion in the design wins for critical programs, both in directed energy and in the sensing business.

總而言之，它正在取得進展，我認為具體回答這個問題，我們是否看到我們正在談論的一些新聞體現在我們的積壓簡短答案中。因此，我們看到訂單的擴大，關鍵項目的設計中標數量的擴大，無論是在定向能領域還是在感測業務領域。

And in terms of the specific metrics, I will let [Joe] highlight those for you, but directionally yes, we are seeing growth in both those sectors.

至於具體指標，我將讓 [Joe] 為您重點介紹一下，但從方向上看，是的，我們看到這兩個領域都在成長。

And Ruben, the way that we think about backlog really is sort of broken down into a couple of different components, right? We have got when you think about the contract vehicles that we are working on, we have a lot of ceiling, and we have a lot of opportunity to deliver value against those contracts. That is sort of one piece of it. Then inside that contract those contract vehicles, we do have fully funded firm backlog that we are executing against. We have firm POS obviously some in the commercial side, others in the defense side and then we have design wins, right? That maybe today in the form of an RFQ, right, that we believe we have got really good chances of winning and, we have been executing on and it is a follow on to what we have been doing. When we measure our business and our progress along those dimensions, things are progressing quite nicely.

魯本，我們對積壓的看法實際上可以分解為幾個不同的部分，對嗎？當您考慮我們正在處理的合約工具時，我們會發現我們有很多上限，並且我們有很多機會根據這些合約實現價值。這算是其中的一部分。然後，在該合約的那些合約載體中，我們確實擁有正在執行的、資金充足的固定積壓訂單。我們有堅定的 POS，顯然一些在商業方面，其他在防禦方面，然後我們在設計上獲勝，對嗎？也許今天會以 RFQ 的形式表明，我們相信我們確實有很大的獲勝機會，而且我們一直在執行，這是我們一直在做的事情的後續。當我們從這些維度衡量我們的業務和進展時，事情進展得相當順利。

That is very helpful. That is what I was getting at. Thank you for that and just a quick follow up on the commercial business just thinking through the guidance for quarter four again and perhaps a step down after sort of the customer specific revenue you saw in September is that kind of the way to think about it and step that back down to sort of that, let us call it $10 million level or so as a normalized run rate and that is what we are thinking through. And I am asking that because I am just trying to figure out Joe on sort of the comments about next year and sort of potentially flat lining is are we back to that type of normalized level for both industrial and micro fiber or are you seeing, other types of weakness we should think about and maybe a different sort of baseline run rate for next year.

這非常有幫助。這正是我要說的。謝謝你的回答，我對商業業務做了一些快速的跟進，再次思考了第四季度的指引，也許在 9 月份看到的特定客戶收入的基礎上再下調一點，這樣思考一下，然後再回落到那種水平，讓我們稱之為 1000 萬美元左右的正常運行率，這就是我們正在考慮的。我之所以問這個問題，是想弄清楚喬對明年的評論，以及潛在的持平趨勢，即我們是否會回到工業纖維和微纖維的正常化水平，或者您是否看到了我們應該考慮的其他類型的弱點，也許是明年不同類型的基線運行率。

No, it is a great question, Ruben. And you are thinking about it. Exactly. Right. Our micro fabrication business, we talked about the fact that it has been lumpy and if you look back over the last couple of quarters, right, it has been sort of in that $10 million to $11 million range. We had a nice bump that we enjoyed in quarter three, at $14 million. But what we expect in the fourth quarter is that it is going to get back down to those levels where we in the early part of the year, right? The industrial business, again, we do not guide specifically by end market. But again, we are seeing pressure in that business, right? And so in light of an uncertain macro-economic environment, many of our customers and frankly our competitors, customers, right are also suffering. And we do see continued pressure on that business in quarter four and, as we move into 2025.

不，這是一個很好的問題，魯本。你也正在思考這件事。確切地。正確的。我們談到了微製造業務一直不穩定的事實，如果回顧過去幾個季度，它一直徘徊在 1000 萬美元到 1100 萬美元之間。我們的銷售額在第三季取得了不錯的成長，達到了 1,400 萬美元。但我們預計第四季它將回落至年初的水平，對嗎？對於工業業務，我們並未專門針對終端市場進行指導。但是，我們再次看到該業務有壓力，對嗎？因此，在宏觀經濟環境不確定的情況下，我們的許多客戶，坦白說，我們的競爭對手的客戶也正在遭受損失。我們確實看到第四季度以及進入 2025 年時該業務將繼續面臨壓力。

Okay. thanks [Joe]. I have one last one on the manufacturing comments you guys have talked about Fabert a while back is this is part of that or did something accelerate to kind of now formally cease everything over in Shanghai and move to United States and Thailand.

好的。謝謝[喬]。我最後想問關於製造業的評論，你們之前談到過 Fabert，這是其中的一部分，還是有什麼因素加速了現在正式停止上海的一切並轉移到美國和泰國。

No, it was part of that room, and it was just part of the plan right to move certain skews, you obviously cannot do it all at one time. And so we moved the bulk of the work over, let us just call it for argument's sake the last 12 months. And this was really the last piece of that puzzle from a true component rolling off the line in Shanghai that is now complete. We have exited the manufacturing of components in the assembly of components in our Shanghai facility. That is all now done either in the United States or at FNE. Now, it will still take some time, right? As you are establishing a new manufacturing facility with whether that is migrating it to ACM like Fernet in Thailand or bringing it back to the United States, right? There is a little bit of a ramp period that we are still going through with that last bit, but that was all part of the plan.

不，它是那個房間的一部分，它只是計劃的一部分，可以移動某些傾斜，你顯然不能一次完成所有事情。因此，我們將大部分工作轉移過去，為了方便論述，我們稱之為過去 12 個月。這是真正的組件拼圖的最後一塊，它來自上海生產線，現已完工。我們已經退出上海工廠的零件製造和零件組裝業務。目前這些工作都是在美國或 FNE 完成的。現在還需要一些時間，對嗎？當您建立新的製造工廠時，您是否將其遷移到 ACM（例如泰國的 Fernet）還是將其帶回美國，對嗎？我們仍在經歷最後一點的上升期，但這都是計劃的一部分。

Got it. Thanks guys.

知道了。謝謝大家。

Thank you, sir.

謝謝您，先生。

Thank you. Our next question will come from Troy Jensen with Cantor Fitzgerald. Please go ahead.

謝謝。我們的下一個問題來自 Cantor Fitzgerald 的 Troy Jensen。請繼續。

Hey, gentlemen, congrats on the nice results.

嘿，先生們，恭喜你們取得了好成績。

Thanks.

謝謝。

So a couple quick questions back on this directed energy. Is there any way that you could seize the opportunity for us? And I guess what I am looking for hoping to get out of you guys is at the low end if you just win a couple of components in a directed energy platform to the high end and you win as much as you can. Can you give us like a range of the dollar content in the system or any help would be great.

所以，我回到關於這種定向能量的幾個快速問題。您有什麼辦法能幫我們把握這個機會嗎？我想我希望從你們身上得到的是，如果你們只贏得定向能平台的幾個組件，那麼你們就可以贏得盡可能多的高端產品。您能否為我們提供系統中美元內容的範圍或任何幫助都將非常有幫助。

I will try my best. Look, the biggest markets for direct energy are obviously us is, has been number one that Israel has grown dramatically and, and supported by the United States. Historically, the United States spend in directed energy has been around a billion dollars a year. And now with Israel coming online with funding from Israel and, and supplemental funding from the US. It is certainly in the multi $100 million a year sort of spend and then our ability to participate in that depends on what level. So at the lowest level. It is single digit percent of that at the component level. And we participate across the board really, at that level, we have the leading components that go into directed energy systems, but we have a stack of technology that goes all the way up to very high level of integration.

我會盡力。你看，直接能源的最大市場顯然是美國，以色列一直是第一大市場，並且得到了美國的支持。從歷史上看，美國在定向能方面的花費每年約為10億美元。現在，以色列也開始行動，並獲得以色列的資金和美國的補充資金。每年的支出肯定在數億美元左右，而我們參與其中的能力則取決於具體程度。因此處於最低水平。在組件級別，它只佔個位數的百分比。我們確實全面參與，在這個層面上，我們擁有用於定向能係統的領先組件，但我們擁有一系列可達到非常高整合度的技術。

And we have programs at that level too that capture effectively the full amount of whatever the program is. There is a range there and there is quite a broad range, but certainly it is more than low single digit percent. And you get into double digit percent depending on the adoption of the technology. So as we move forward, troy, we will be putting out more information to disclose specific programs because the programs are still in the development phase. I think Israel will be the first out with an implemented system, as they have said in 2025. And so there will be more information as it is available.

而且我們也有這個級別的計劃，可以有效地捕捉該計劃的全部內容。這裡有一個範圍，而且範圍相當廣，但肯定高於低個位數百分比。根據技術的應用，您的百分比可以達到兩位數。因此，特洛伊，隨著我們不斷前進，我們將發布更多資訊來披露具體計劃，因為這些計劃仍處於開發階段。我認為以色列將率先實施該系統，正如他們在 2025 年所說的那樣。一旦有更多資訊可用，我們就會提供。

Okay, perfect.

好的，完美。

Can you let us know what the maximum power laser you guys is currently produce for directed energy?

可以告訴我們你們目前生產定向能雷射的最大功率是多少嗎？

Absolutely. We are very proud of the fact that we have the highest power laser in the world. And it is over 350 kilowatts that was part of the healthy program and then we won the contract to scale that to a megawatt power. And as we noted, we are on track on that program. But we will continue to scale up the power. That the typical programs are going to be a fraction of that, but those programs allow us to develop the technology which enhances even the lower power applications.

絕對地。我們擁有世界上功率最高的雷射器，對此我們感到非常自豪。健康計劃的發電量超過 350 千瓦，後來我們贏得了合同，將其擴大到兆瓦級。正如我們所說，我們正在順利實施該計劃。但我們將繼續增強力量。典型的程式只會是其中的一小部分，但這些程式使我們能夠開發出增強低功率應用的技術。

Okay. Last question. Was there a 10% customer in the quarter? And do you expect to have any next year?

好的。最後一個問題。本季有 10% 的客戶嗎？您預計明年還會有嗎？

We have had a couple of customers in the quarter that have been around the 10% level. United States government or prime contractors that are effectively serving the United States government have typically been the ones that are in the 10% range. Troy. And we do expect that to continue as we move forward.

本季度，我們有幾位客戶的折扣率達到 10% 左右。美國政府或實際上為美國政府服務的總承包商一般都在 10% 左右。特洛伊。我們確實希望，隨著我們不斷前進，這種情況能夠繼續下去。

Okay, got you all. Keep all the good work.

好的，都明白了。繼續做好一切工作。

Thank you.

謝謝。

Thank you. (operator instructions) Our next question will come from Mark Miller with Benchmark. Please go ahead.

謝謝。（操作員指示）我們的下一個問題來自 Benchmark 的 Mark Miller。請繼續。

Thank you for the question. Your low power as percent of total sales that has been fairly soft for several quarters. What is driving the weakness of low power?

感謝您的提問。您的銷售額佔總銷售額的百分比較低，並且已經連續幾個季度保持低迷。是什麼導致了低功耗的弱點？

The low power is largely related to the additive manufacturing. Lasers mark most of the market for additive manufacturing is really at a kilowatt or below. If you go all the way back to the 2016, 2017-time frame, a lot of those low power lasers were used for cutting. You can see that as that really tailed off to 29 in 2019. It is because most of the revenue was cutting related and it was moving up the power curve for cutting. And then as you saw the low power of the percentage of the industrial revenue that was low power is a pretty good read through to the additive manufacturing business.

低功率很大程度與積層製造有關。雷射器標誌著積層製造的大部分市場實際上處於千瓦或以下水平。如果回顧 2016 年、2017 年的時間範圍，您會發現許多低功率雷射都用於切割。您可以看到，到 2019 年，這個數字已大幅下降至 29。這是因為大部分收入都與切割有關，切割的功率曲線正在上升。然後，正如您所看到的，工業收入百分比的低功耗對於積層製造業務來說是一個很好的解讀。

I am just wondering about the margin profile, your backlog. Is that better the same or less than what you have been recently reporting?

我只是想知道利潤狀況和你的積壓訂單情況。這與您最近報告的情況相比是更好還是更差？

It is a great question mark when we look at the margin profile of the revenue that we have got in backlog or in forecast that we are expecting to generate. It is better than what we have generated in the past. The challenge for us right now is in the fact that at these lower revenue levels, we are not absorbing our fixed costs all that. Well, so if we look at the same products sold to either the same customers or different customers year-over-year, the margins are doing well and the new products that we are introducing in whether it is in defense or in the commercial portion of our business tend to be higher margin products. It is just about absorption at this point for us until we start to see that gross margin profit dollar fall through.

當我們查看我們積壓的訂單或預計產生的收入的利潤率狀況時，這是一個很大的問號。這比我們過去所創造的還要好。我們目前面臨的挑戰是，在較低的收入水平下，我們無法吸收所有的固定成本。好吧，如果我們看一下同比銷售給相同客戶或不同客戶的相同產品，利潤率表現良好，而且我們推出的新產品，無論是在國防還是商業部分，往往都是利潤率更高的產品。對我們來說，目前這只是吸收階段，直到我們開始看到毛利率利潤下降。

Just the last question for me is the backlog, front end, back end loaded is going to be linear how it comes out of backlog in your revenues.

對我來說，最後一個問題是，積壓訂單、前端和後端負載將呈線性關係，積壓訂單如何影響您的收入。

No, it really depends. It is hard to say. it is certainly not linear mark because if you think about, let us just talk about what the biggest contributors are to backlog. We announced $171 million contract for the healthy two program that is not linear because you are doing in some quarters, more development work than in other quarters. As you have got folks that are working on other programs, there are certain quarters with you are receiving and integrating more material than in certain other quarters. It is difficult to really talk about that from a linear a linear basis. Now, when you look at the portfolio effect of all of those programs, the way that we expect them to roll off does give us confidence that the defense business should grow sequentially, but just a little bit difficult to pin it to the linearity of any particular program if you will.

不，這得看具體情況。這很難說。這當然不是線性標記，因為如果你仔細想想，我們只討論造成積壓的最大因素是什麼。我們宣布了價值 1.71 億美元的健康兩個計劃合同，但該計劃並不是線性的，因為你在某些季度進行的開發工作比其他季度要多。由於你們有人員在從事其他項目，因此你們在某個特定方面接收和整合的材料比其他方面要多。從線性基礎角度來談論這個問題確實很困難。現在，當你查看所有這些項目的投資組合效應時，我們預期它們的滾動方式確實讓我們有信心國防業務應該會連續增長，但是如果你願意的話，將其固定在任何特定項目的線性上就有點困難了。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you at this time, I am showing no further questions in queue. I would now like to turn the call back to Joe Corso for any additional or closing remarks.

非常感謝，隊列中沒有其他問題。現在我想將電話轉回喬·科索，請他發表任何補充意見或結束語。

Thanks everybody for joining us today and we look forward to speaking to you over the coming quarter. Have a great afternoon.

感謝大家今天的加入，我們期待在下個季度與您交談。祝您下午愉快。

Thank you. This does conclude the nLight Incorporate third quarter, 2024 earnings call. You may disconnect your line at this time and have a wonderful day.

謝謝。這確實結束了 nLight Incorporate 2024 年第三季財報電話會議。此時您可以斷開線路並享受美好的一天。