Mind Technology Inc (MIND) 2024 Q4 法說會逐字稿

Ladies and gentlemen, good morning, and welcome to the mining Technology Fiscal 2024 Fourth Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

女士們、先生們，早安，歡迎參加礦業技術 2024 財年第四季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Zach Vaughan. Please go ahead, sir.

現在我很高興向大家介紹你們的主持人扎克·沃恩。請繼續，先生。

Thank you, operator. Good morning, and welcome to the MIND Technology Fiscal 2024 Fourth Quarter Earnings Conference Call. We appreciate all of you joining us today. With me are Rob Capps, President and Chief Executive Officer; and Mark Cox, Vice President and Chief Financial Officer.

謝謝你，接線生。早上好，歡迎參加 MIND Technology 2024 財年第四季財報電話會議。我們感謝大家今天加入我們。與我在一起的有總裁兼執行長 Rob Capps；以及副總裁兼財務長馬克·考克斯。

Before I turn the call over to Rob, I have a few items to cover. If you would like to listen to a replay of today's call, it will be available for 90 days via webcast by going to the Investor Relations section of the Company's website at mind dash technology.com or via recorded instant replay until May seventh information on how to access the replay was provided in yesterday's earnings release. Information reported on this call speaks only as of today, Tuesday, April 30, 2024, and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading.

在將電話轉給 Rob 之前，我有幾件事需要說明。如果您想收聽今天電話會議的重播，可在90 天內透過網路廣播觀看該內容，方法是造訪公司網站Mind dash technology.com 的投資者關係部分，或透過錄製的即時重播，直到5 月7 日為止。本次電話會議中報告的資訊僅截至今天（2024 年 4 月 30 日星期二），因此，我們建議您，在任何重播收聽或文字記錄閱讀時，時間敏感的資訊可能不再準確。

Before we begin, let me remind you that certain statements made by management during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and these forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control. It may cause the Company's actual future results or performance to materially or materially differ from any future results or performance expressed or implied by those statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC, including its annual report on Form 10-K for the year ended January 31, 2024.

在我們開始之前，讓我提醒您，管理層在本次電話會議中發表的某些聲明可能構成1995 年《私人證券訴訟改革法案》含義內的前瞻性聲明，這些前瞻性聲明基於管理層當前的預期，包括已知和未知的風險、不確定性和其他因素，其中許多因素是公司無法預測或控制的。它可能導致公司的實際未來業績或業績與這些陳述明示或暗示的任何未來業績或業績存在重大差異。這些風險和不確定性包括公司在向 SEC 提交的文件中不時披露的風險因素，包括截至 2024 年 1 月 31 日的年度 10-K 表格年度報告。

For Furthermore, as we start this call, please also refer to the statement regarding forward-looking statements incorporated in our press release issued yesterday, and please note that the contents of our conference call this morning are covered by those statements.

此外，當我們開始本次電話會議時，請另參閱我們昨天發布的新聞稿中包含的有關前瞻性陳述的聲明，並請注意，我們今天上午的電話會議的內容已包含在這些聲明中。

Now I would like to turn the call over to mind CEO, Rob Capps.

現在我想把這通電話轉給執行長羅布‧卡普斯 (Rob Capps)。

Thanks, Zack, and thanks all of you for joining us today. I'll start by discussing the highlights from the quarter and the full year. Mark will then provide a more detailed update on our financials, and I'll return to wrap things up some remarks about our outlook. Our fiscal fourth quarter capped off a year of immense progress from my side, and it was evident in our results.

謝謝扎克，也謝謝大家今天加入我們。我將首先討論本季和全年的亮點。然後，馬克將提供有關我們財務狀況的更詳細的最新信息，我將返回總結有關我們前景的一些評論。我們的第四財季為我這一年的巨大進步畫上了圓滿的句號，這一點在我們的業績中顯而易見。

We achieved positive adjusted EBITDA in the fourth quarter at our continuing operations were profitable for both the fourth quarter and on full year basis. This was the first profitable year for MIND since 2014. So needless to say, this is a significant milestone for the company and a reflection of the efforts we've made to strategically position the Company for future growth.

由於我們的持續經營業務在第四季度和全年均實現盈利，因此我們在第四季度實現了調整後的正 EBITDA。這是 MIND 自 2014 年以來第一個獲利的年份。因此，不用說，這對公司來說是一個重要的里程碑，也反映了我們為公司未來發展進行策略定位所付出的努力。

Further in our transformation this year was our sale of client general oceans in the third quarter. This was a meaningful and necessary step towards streamlining our business and focusing our operations on the areas with large potential for growth and profitability. Our Seamap product lines continue to gain traction, drive significant customer demand. The favorable macro environment, our narrowed focus, strong customer relationships, ever increasing capabilities and valuable partnerships have boosted our order flow. The framework agreement we entered into this past year, which resulted in the largest single largest order in Seamap history is evidence of this.

今年我們的進一步轉型是我們在第三季出售了客戶一般海洋業務。這是精簡我們業務並將我們的業務重點放在具有巨大成長和獲利潛力的領域的有意義且必要的一步。我們的 Seamap 產品線持續受到關注，推動了龐大的客戶需求。有利的宏觀環境、我們縮小的關注範圍、強大的客戶關係、不斷增強的能力和有價值的合作夥伴關係促進了我們的訂單流。我們去年簽訂的框架協議證明了這一點，該協議導致了 Seamap 史上最大的單筆訂單。

We enter fiscal 2025 with a backlog that exceeds $38 million. This represents another sequential increase over the end of the third quarter and of 145% of our backlog related to CMP stood at the beginning of two fiscal 2024. This robust dark backlog means that we're entering fiscal 2025 with a substantial book of business that bodes well for continued favorable financial results. However, as is always the case, the timing of certain orders is subject to variability due to any number of challenges unforeseen circumstances for customer delivery requirements. I believe this unprecedented backlog is indicative of our specialized capabilities and differentiated product lines, and I'm encouraged by the implications for future results.

進入 2025 財年，我們的積壓訂單已超過 3,800 萬美元。這代表著第三季末的另一個環比成長，我們與 CMP 相關的積壓訂單中有 145% 是在 2024 年兩個財年年初出現的。這種強勁的暗積壓意味著我們在進入 2025 財年時將擁有大量業務，這預示著我們將繼續取得良好的財務表現。然而，與往常一樣，由於客戶交付要求面臨許多不可預見的挑戰，某些訂單的時間可能會發生變化。我相信這種前所未有的積壓顯示了我們的專業能力和差異化的產品線，我對未來結果的影響感到鼓舞。

Marine Technology Products revenues for the fiscal fourth quarter and full year 2024 for $13.4 million and $36.5 million, respectively. This annual revenue was the highest ever achieved by our Seamap business. Both periods were up significantly over the prior quarter and prior fiscal year, respectively. Our results for the full year are a direct representation of the strong customer engagement, macro tailwinds, the resulting order flow that we're experiencing. While supply chain issues are much improved from a couple of years ago.

2024 財年第四季和全年海洋技術產品收入分別為 1,340 萬美元和 3,650 萬美元。這一年收入是我們 Seamap 業務有史以來獲得的最高收入。這兩個時期分別較上一季和上一財年大幅成長。我們全年的業績直接體現了我們正在經歷的強大的客戶參與度、宏觀順風和由此產生的訂單流。雖然供應鏈問題比幾年前有了很大改善。

They're still with us and can impact results in a particular period. We experienced this time to fiscal 2024, and we anticipate that it may occur at times again in the future. As always, these orders are almost never lost, but merely delayed magnitude of our backlog does give us better visibility and therefore a better ability to manage our procurement process.

它們仍然與我們同在，並且可以影響特定時期的結果。我們在 2024 財年經歷了這一次，我們預計這種情況在未來可能會再次發生。像往常一樣，這些訂單幾乎永遠不會丟失，但僅僅是積壓量的延遲確實使我們能夠更好地了解情況，從而更好地管理我們的採購流程。

However, an increased level of activity also means increased capital required. We believe that growing demand for our Seamap product lines such as GunLink source controllers, BuoyLink positioning systems and SeaLink streamer systems is driving our robust robust backlog benefits from our key customer partnerships and strength in the underlying market has contributed meaningfully to our positive order momentum. I remain confident that we're a partner of choice for companies looking to acquire high quality and versatile, bringing technology products we continue to believe that the current market environment is advantageous.

然而，活動水準的增加也意味著所需資本的增加。我們相信，對我們的Seamap 產品線（例如GunLink 來源控制器、BuoyLink 定位系統和SeaLink 拖纜系統）日益增長的需求正在推動我們從我們的主要客戶合作夥伴關係和基礎市場實力中獲得強勁的積壓收益，這對我們的積極訂單動能做出了有意義的貢獻。我仍然相信，我們是尋求獲得高品質和多功能的公司的首選合作夥伴，帶來我們仍然相信當前市場環境有利的技術產品。

Remind each of our three key markets, exploration, defense and survey remain loaded with opportunities. In addition to now operating in a more streamlined and focused suite of products. Our team continues to develop new innovative ways to adapt, implement our technologies to meet the evolving needs of our customers. Included in our backlog are orders for ultra high resolution survey systems that are often used to detect subsea boulders and other geo hazards.

提醒我們三個主要市場：勘探、國防和調查仍然充滿機會。此外，現在也以更精簡和集中的產品套件進行營運。我們的團隊不斷開發新的創新方法來適應和實施我們的技術，以滿足客戶不斷變化的需求。我們的積壓訂單中包括超高解析度測量系統的訂單，這些系統通常用於檢測海底巨石和其他地質災害。

These surveys assistant derisking offshore installations such as wind farms and carbon capture facilities, which are new markets for us and ones that we think bring great promise. There's also a growing opportunity for mine to provide seismic streamer repair services, not only for sealing streamers, but also for products manufactured by others within the Maritime, defense and security markets. We continue to believe that our sea surface passive array system, which is derived from our commercial commercially developed sealing system is a significant economical solution for various demanding applications.

這些調查有助於降低風電場和碳捕獲設施等海上設施的風險，這些對我們來說是新市場，我們認為這些市場會帶來巨大的前景。礦場提供地震拖纜維修服務的機會也越來越多，不僅適用於密封拖纜，也適用於海事、國防和安全市場中其他公司製造的產品。我們仍然相信，我們的海面被動陣列系統源自於我們商業開發的密封系統，是針對各種要求嚴格的應用的重要經濟解決方案。

The current geopolitical tensions around the world are great reminder, the ever-present demand for security related technology we are beginning to see some traction for our spectrum, a software suite through our collaboration agreement with General oceans. This software is now being used by two NATO navies with several other promising prospects. While the contribution has been minimal to date, we are optimistic about our prospects and hope to find further applications for this technology.

當前世界各地的地緣政治緊張局勢很好地提醒我們，對安全相關技術的持續存在的需求，我們開始看到我們的頻譜（透過我們與 General oceans 合作協議提供的軟體套件）受到了一些關注。該軟體目前正被兩個北約海軍使用，並且還有其他一些有希望的前景。雖然迄今為止的貢獻很小，但我們對前景感到樂觀，並希望為這項技術找到進一步的應用。

With that, let me hand things over to Mark for a while who wanted the fourth quarter and full year financial results a bit more detail. Mark?

說到這裡，讓我暫時將事情交給馬克，他希望獲得第四季度和全年財務表現的更多細節。標記？

Thanks, Rob, and good morning, everyone. I'd like to remind everyone that with the sale of Klein, those operations have been treated as discontinued operations. Prior period results have been restated to reflect that. Accordingly, the results from continuing operations that we reported yesterday and are discussing here today, including prior period comparative data do not include amounts related to clients. They include only our ongoing business.

謝謝羅布，大家早安。我想提醒大家的是，隨著Klein的出售，這些業務已被視為已終止業務。前期結果已重述以反映這一點。因此，我們昨天報告並今天在這裡討論的持續經營業績，包括前期比較數據，不包括與客戶相關的金額。它們僅包括我們正在進行的業務。

As Rob mentioned earlier, revenues from marine technology product sales totaled approximately $13.4 million in the quarter, which was up about 51% from approximately $8.9 million in the same period a year ago, full year revenue amounted to $36.5 million, which was up approximately 46% over the previous year and represents the highest annual revenue ever reported by our Seamap business.

如同Rob先前所提到的，本季海洋科技產品銷售收入總計約1,340萬美元，比去年同期的約890萬美元成長約51%，全年營收達3,650萬美元，較去年同期成長約46%。了我們Seamap 業務有史以來報告的最高年收入。

Our fourth quarter results benefited from a little over $5 million of orders that were delayed from the third quarter, but there were other orders pushed from the fourth quarter into fiscal 2025. The shifting of deliveries and the impact of that on quarterly revenues is just a fact of life for our business. We continue to believe the strength we are seeing in all our key markets and the growth in our backlog of orders positions us well for sustained high level of revenue in the coming quarters.

我們第四季的業績受益於從第三季推遲的略高於 500 萬美元的訂單，但還有其他訂單從第四季推遲到 2025 財年。交付的變化及其對季度收入的影響只是我們業務的現實。我們仍然相信，我們在所有主要市場看到的實力以及積壓訂單的成長使我們能夠在未來幾季保持持續的高收入水準。

Full year. Gross profit from continuing operations was approximately $16 million, which was up approximately 61% when compared to the prior year. This represents a gross profit margin of approximately 44% for the year. This is an improvement from the 40% gross profit margin achieved in fiscal 2023. Incremental year-over-year revenue resulted in greater operating efficiency and overhead absorption and a much improved gross profit margin.

全年。持續經營業務毛利約 1,600 萬美元，較上年成長約 61%。這意味著本年度的毛利率約為44%。這比 2023 財年實現的 40% 毛利率有所提高。收入的同比增長帶來了更高的營運效率和管理費用吸收以及毛利率的大幅提高。

Our general and administrative expenses were approximately $3 million for the fourth quarter, which was roughly in line with the $2.9 million from the third quarter. As we mentioned on our last call, sales decline is allowing us to streamline our operations and thereby reduce some costs. Important to note that we typically experience higher G&A spending levels in the fourth quarter associated with year-end activities, we believe masked a bit of decline related savings achieved during the quarter. We do and we do anticipate realizing additional cost savings benefits in fiscal 2025.

第四季的一般和管理費用約為 300 萬美元，與第三季的 290 萬美元大致持平。正如我們在上次電話會議中提到的，銷售額下降使我們能夠簡化運營，從而降低一些成本。值得注意的是，我們通常會在第四季度經歷與年終活動相關的一般管理支出水準較高，我們認為掩蓋了本季實現的與節省相關的一些下降。我們確實這樣做了，並且確實預計在 2025 財年實現額外的成本節約效益。

Our research and development expense for the fourth quarter, which relates only to our continuing operations, was $654,000 that was up both sequentially and compared to the prior year period. These costs are largely directed toward the development of our next-generation streamer system and continued development of our spectral AI software suite.

我們第四季的研發費用（僅與我們的持續營運相關）為 654,000 美元，比上一季和上一季均增加。這些成本主要用於開發我們的下一代流光系統和繼續開發我們的光譜人工智慧軟體套件。

Operating income for the fourth quarter was $2.3 million compared to an operating loss of approximately $1.5 million in the third quarter and operating income of $595,000 in the fourth quarter of fiscal 2023. Our fourth quarter adjusted EBITDA from continuing operations was $2.6 million compared to $1.5 million in the fourth quarter a year ago.

第四季的營業收入為 230 萬美元，而第三季的營業虧損約為 150 萬美元，2023 財年第四季的營業收入為 59.5 萬美元。我們第四季來自持續經營業務的調整後 EBITDA 為 260 萬美元，而去年第四季為 150 萬美元。

Adjusted EBITDA from continuing operations for fiscal 2024 was approximately $2.3 million compared to a loss of $3.4 million in fiscal 2023. Net income for the fourth quarter was approximately $1.4 million, which was over 100% improvement from the [$666,000] reported in the fourth quarter of fiscal 2023. Total net income for fiscal 2024 was $274,000 compared to a loss of $8.8 million in fiscal 2023. As Rob mentioned, we're pleased to have achieved profitability in fiscal 2024, something that hasn't been done in many years, and we hope to continue building on this momentum in future periods.

2024 財年持續營運帶來的調整後 EBITDA 約為 230 萬美元，而 2023 財年則虧損 340 萬美元。第四季的淨利潤約為 140 萬美元，比 2023 財年第四季報告的 [666,000 美元] 增長了 100% 以上。2024 財年的淨收入總額為 274,000 美元，而 2023 財年則虧損 880 萬美元。正如 Rob 所提到的，我們很高興在 2024 財年實現了盈利，這是多年來從未實現過的，我們希望在未來繼續保持這一勢頭。

As of January 31st, 2024, we had working capital of approximately $18.1 million and approximately $5.3 million of cash on hand. Mine's liquidity position is significantly improved and the balance sheet remains strong. Following the sale of Klein in August, which enabled the Company to eliminate the outstanding high cost debt. As of today mind is debt-free. I'll now pass it back over to Rob for some concluding comments.

截至 2024 年 1 月 31 日，我們的營運資金約為 1,810 萬美元，手頭現金約為 530 萬美元。我礦的流動性狀況顯著改善，資產負債表依然強勁。8 月出售 Klein 後，公司得以消除未償還的高成本債務。到今天為止，頭腦已經沒有債務了。現在我將把它傳回給 Rob 以獲得一些結論性意見。

Thanks, Mark. Mize results for fiscal 2024 demonstrates the early benefits of our strategic transformation to streamline and streamline our business and focus on our Seamap operations we've developed valuable partnerships and customer relationships that enabled us to build a record backlog that continues to replenish itself as we execute and deliver orders. Our deliberate emphasis on growth and improving our bottom line throughout the year resulted in mine achieving full year profitability for the first time in about 10 years, and we're confident that the Company is now built to sustain this cost momentum in future periods.

謝謝，馬克。2024 財年的Mize 業績展示了我們策略轉型的早期好處，即精簡和簡化我們的業務並專注於我們的Seamap 業務，我們已經建立了寶貴的合作夥伴關係和客戶關係，使我們能夠建立創紀錄的積壓訂單，並在我們執行任務時不斷補充自己並交付訂單。我們刻意強調全年的成長和提高利潤，使礦場在大約 10 年來首次實現全年獲利，我們相信公司現在有能力在未來維持這種成本動能。

Our marine technology products continue to penetrate in a variety of industries and markets, which I believe is a direct correlation to the work that our team has done to develop it continually adapt our technology to meet the evolving needs of our customers. The market conditions remain favorable. We believe there are still notable opportunities for our Seamap unit and our other initiatives. We believe our significant customer engagement and order flow are indications for the market adoption of our product lines for encouraged by results in fiscal 2024 and the noteworthy improvements we've made to the business.

我們的海洋技術產品繼續滲透到各個行業和市場，我相信這與我們的團隊為開發它所做的工作直接相關，並不斷調整我們的技術以滿足客戶不斷變化的需求。市場狀況依然有利。我們相信我們的 Seamap 部門和其他舉措仍然存在著顯著的機會。我們相信，我們顯著的客戶參與度和訂單流表明市場採用我們的產品線，這受到 2024 財年業績和我們對業務所做的顯著改進的鼓勵。

However, our eyes remain fixed in the fee on the future. We believe mine is exceptionally well-positioned with a strong foundation to capitalize on future opportunities. Despite these positive results and our optimism for the future, we continue to feel it prudent to use our increased liquidity and capital from operations to fund future growth and execute on our record backlog rather than declare dividends on our preferred stock and paid the deferred dividends in arrears. Although our operations are much improved, they do not support the required growth in working capital and the payment of the preferred dividends.

然而，我們的目光仍然集中在未來的費用上。我們相信我的公司處於非常有利的位置，擁有堅實的基礎來利用未來的機會。儘管取得了這些積極的成果並且我們對未來感到樂觀，但我們仍然認為謹慎的做法是利用我們增加的流動性和營運資本來為未來的成長提供資金，並執行我們創紀錄的積壓訂單，而不是宣布我們的優先股股息並支付遞延股息。儘管我們的營運有了很大改善，但它們不支持所需的營運資本成長和優先股股息的支付。

As you probably know, we did not declare a dividend on our preferred stock for both the fourth quarter of fiscal 2024 and the first quarter of fiscal 2025 and as of to date remains about $6.6 million of accumulated dividends from prior periods. As a result, the recent events we proposed an amendment to the terms of our preferred stock will convert the preferred stock into common stock. As you also probably know a special meeting of first stockholders had been scheduled for April 25, that has been postponed. We will provide more information on this very soon.

您可能知道，我們沒有宣布 2024 財年第四季和 2025 財年第一季的優先股股息，截至目前，前期累計股息仍約為 660 萬美元。因此，最近發生的事件我們提議修改優先股條款，將優先股轉換為普通股。您可能也知道，原定於 4 月 25 日舉行的第一屆股東特別會議已被推遲。我們將很快提供更多相關資訊。

However, in order to comply with proxy rules. We will not make any further comments regarding this beyond those contained in the press release we issued last Wednesday afternoon. Additionally, we will not entertain any questions regarding this in the Q&A session, it's always important to remind everyone that you should expect some fluctuations in our revenue from quarter to quarter, as you saw at times in fiscal 2024 and in other periods. In recent years, there will likely be quarterly revenue variation due to a variety of challenges and unforeseen circumstances for simple customer delivery requirements. However, as we illustrated in fiscal 2024 these orders may shift to the right, but are not lost. We'll continue to maintain our belief that the general trend was one to sustainably higher level revenue in fiscal 2025 and beyond.

但是，為了遵守代理規則。除了我們上週三下午發布的新聞稿中包含的內容之外，我們不會對此發表任何進一步的評論。此外，我們不會在問答環節中對此提出任何問題，重要的是要提醒大家，您應該預期我們的收入每個季度都會出現一些波動，正如您在2024 財年和其他時期有時看到的那樣。近年來，由於簡單的客戶交付要求的各種挑戰和不可預見的情況，可能會出現季度收入變化。然而，正如我們在 2024 財年所示，這些訂單可能會向右移動，但不會遺失。我們將繼續堅信，總趨勢是 2025 財年及以後收入持續維持在高水準。

Looking forward, our current visibility, healthy customer engagement, strong backlog and favorable macro tailwinds give us confidence that we'll see revenue growth and positive adjusted EBITDA in fiscal 2025, and we anticipate another profitable year for mine, and we believe our differentiated and market-leading suite of products is uniquely positioned to capitalize on customer demand in future periods, and we intend to build on the positive momentum from last year to drive increased shareholder value in fiscal 2025.

展望未來，我們目前的知名度、健康的客戶參與度、強勁的積壓訂單和有利的宏觀順風讓我們有信心在2025 財年看到收入增長和調整後的EBITDA 正數，我們預計我的又一個盈利年，我們相信我們的差異化和市場領先的產品套件具有獨特的優勢，能夠在未來時期充分利用客戶的需求，我們打算在去年的積極勢頭基礎上，在 2025 財年推動股東價值的增長。

With that, operator, I think we can open the call up for questions.

接線員，我想我們可以開始提問了。

(Operator Instructions) Tyson Bauer, Kansas City.

（操作員說明）Tyson Bauer，堪薩斯市。

Good morning, gentlemen. And I'm glad you threw in the second part because I wasn't going to touch it with a 10 foot fall to begin with. So little stick to the business questions that at least on my part.

早安，先生們。我很高興你把第二部分放進去，因為我一開始就不會從 10 英尺高的地方摔下來。至少在我看來，很少人關注商業問題。

Okay,

好的，

we have [$5 million] rollover from Q3 to Q4. We had some orders rollover from Q4 to Q1. It seems like were to a stage that the rolling 12 months or the run rate is basically set where we're going to always have those timing issues. But we've really elevated the Company to a new range of operating results as these things roll forward, especially with maintaining the backlog that you have, if that is how you are seeing this, what kind of working capital needs are you anticipating for this fiscal year?

我們從第三季到第四季有 [500 萬美元] 的展期。我們有一些訂單從第四季延期到第一季。似乎已經到了滾動 12 個月或運行率基本上已經確定的階段，我們總是會遇到這些時間問題。但隨著這些事情的進展，我們確實將公司的經營業績提升到了一個新的範圍，特別是在維持積壓的情況下，如果您是這樣看待的，那麼您預計需要什麼樣的營運資金財政年度？

If we've reached that level of just rolling forward, and we should see similar results to what we just had as we go through the quarters with some obvious variations.

如果我們已經達到了向前滾動的水平，那麼當我們經歷幾個季度時，我們應該會看到與剛剛獲得的結果類似的結果，但會有一些明顯的變化。

Sure. I mean that's a tough question because working capital is dictated by exact timing of shipments or collection activities in terms of what our requirements are from vendors. As far as payments, sometimes advanced payments, what do we need to buy materials, advance others, it's a complex, complicated calculus. I will say, no, we do believe that we can fund that from our existing operations, the create the working capital we need, which I think you need to be careful. If you look at the cash on the balance sheet at it, January at [$5 million] and assume that excess cash is around.

當然。我的意思是，這是一個棘手的問題，因為營運資金取決於出貨或收集活動的確切時間，以及我們對供應商的要求。至於付款，有時是預付款，我們需要什麼來購買材料，預付其他人，這是一個複雜的、複雜的演算。我會說，不，我們確實相信我們可以從我們現有的業務中提供資金，創造我們需要的營運資金，我認為你需要小心。如果你看一下資產負債表上的現金，一月份的現金為 [500 萬美元]，並假設有多餘的現金。

That's not necessarily the case that that's going to help fund those working capital requirements as we go through the year and handle those ups and downs. So that's reason we think it's very prudent and would be imprudent not to maintain that flexibility such We such a we do have the ability to, but those requirements as they arise and sometimes they are unforeseen. So I don't have a number for you, but certainly new things we think things will improve. But if the business continues to expand, that's going to expand the working capital requirements.

當我們度過這一年並應對這些起伏時，這不一定會幫助滿足這些營運資金需求。因此，我們認為不保持這種靈活性是非常謹慎的，而且我們確實有能力這樣做，但這些要求在出現時有時是不可預見的。所以我沒有給你一個數字，但我們認為情況肯定會有所改善的新事物。但如果業務持續擴大，營運資金需求就會擴大。

So you are anticipating growth off of the Q4 run rate, then?

那麼，您預計第四季度的運行率會有所成長嗎？

I wouldn't say that I think that's a bit aggressive. You've given where the orders flowing in from the third quarter.

我不會說我認為這有點激進。您已經給了第三季訂單流入的位置。

You threw me a softball. I thought it might kind of hit it out of the park for you guys in Australia.

你向我丟了一個壘球。我想這對澳洲的你們來說可能會很有趣。

Obviously, the end of the quarter is today, are you willing or able to give us any kind of insight on how we progress to where backlog should end up or where you're kind of standing cash wise at the end of April.

顯然，今天是本季度末，您是否願意或能夠向我們提供任何有關我們如何進展到積壓應該結束的情況的見解，或者您在四月底的現金狀況。

It does. I don't want to get into that. That's really dangerous to try to project financial results on the last day of the quarter before it closed to the extent that's really dangerous. I'll just say they were we're pleased about the way the business is progressing. And I think for us consistent with what we talked about here today and just leave it that.

確實如此。我不想涉及這個。在本季結束之前嘗試在季度最後一天預測財務業績確實很危險。我只想說，我們對業務的進展感到滿意。我認為對我們來說，這與我們今天在這裡討論的內容是一致的，就這樣吧。

Okay. But you are pleased with your backlog and how that's progressed thus far?

好的。但您對積壓的工作以及迄今為止的進展感到滿意嗎？

Sure, sure. No, backlogs motion is open down now that there will be a period on share in the future where our backlog was down a bit and then it will go back up.

一定一定。不，積壓動議現在已經開放，因為未來一段時間內，我們的積壓訂單會略有下降，然後回升。

It's just we have large orders that tend to come in in batches. So Now beyond that.

只是我們有大訂單，往往是分批進來的。所以現在除此之外。

When you have systems, obviously that can skew timing of revenue recognition receipt and accounts receivable.

當您擁有系統時，顯然這可能會扭曲收入確認收據和​​應收帳款的時間。

Howard, could you give us a little sense of the composition of the backlog as far as how many are like whole systems that are ex millions of dollars as opposed to partials, that may be a little more in the under $1 million or $1 million versus, say, a $4 million or $5 million system.

霍華德，您能否讓我們了解一下積壓訂單的構成，有多少是價值數百萬美元的整個系統，而不是部分系統，可能在 100 萬美元或 100 萬美元以下，而不是部分系統。 ，一個價值400 萬美元或500 萬美元的系統。

And I'm doing some internal math here. The majority of is going to be systems because obviously just because they're bigger, they are going to dominate.

我在這裡做一些內部數學計算。其中大部分將是系統，因為顯然只是因為它們更大，它們才會佔據主導地位。

So there are a a handful of full systems in the backlog, the balance being spare parts and things of that nature.

因此，積壓中有一些完整的系統，其餘的則是備件和類似性質的東西。

Okay. And the delivery time line of that backlog that you disclose should all be recognized in fiscal '25?

好的。您揭露的積壓訂單的交貨時間線應該全部在 25 財年得到確認嗎？

Most, and I can't not you all of it to some of my slide into next year, but there will be other orders are coming in as well.

大多數，我不能不把所有這些都放到明年的一些訂單中，但也會有其他訂單進來。

Okay. And the backlog does not include what you anticipate in servicing and parts, which is typically any given year about 10% of what you generate in top line?

好的。而且積壓訂單不包括您預期的服務和零件，這通常是任何給定年份的收入的 10% 左右？

Yeah. I mean, there may be some spare orders we've already received, but those can happen throughout the year.

是的。我的意思是，我們可能已經收到了一些備用訂單，但這些訂單可能會全年發生。

So a little bit more of those sort of things.

所以這類事情多一點。

You talked about AI used by a couple of Navy's global Navy. So with your partnership or what exactly is being utilized with that a I assume in your part in that relationship?

您談到了幾支全球海軍使用的人工智慧。那麼，你們的合作關係或我認為你們在這段關係中所扮演的角色究竟在利用什麼？

So Spectel, AI is a data handling and automatic target recognition enabling system.

Spectel AI 是一個資料處理和自動目標識別支援系統。

There's different aspects to it.

它有不同的方面。

So simply put when used with in this case, sites can ours, but could the other sensor systems, it facilitates the the handling and annotation of the data and therefore then the application of the automatic target recognition algorithm to it. So it takes to take some of that labor out of the process, primarily being used in a survey application right now are survey applications right now. I mean, these 90s, maybe some you'll have their own survey, the operations.

因此，簡單地說，在這種情況下使用時，站點可以是我們的，也可以是其他感測器系統的，它有助於資料的處理和註釋，從而有助於自動目標識別演算法的應用。因此，需要從這個過程中去掉一些勞動力，目前主要用於調查應用程式的是調查應用程式。我的意思是，這些 90 年代，也許有些人會有自己的調查和操作。

So we're encouraged by that and we're getting good feedback. We think as far as the the efficacy of the program and making a few tweaks to it, and our arrangement is we still own that IP. We have licensed it to general oceans. And then as they sell it or license it to their customers, we retain a sublicense fee and this relates to sides can sonars. So what we would hope to do in the future is then take this same technology towards other sensor systems and do it directly, but that's that center for the future.

因此，我們對此感到鼓舞，並且得到了良好的回饋。我們認為就該程序的效果而言，並對其進行了一些調整，我們的安排是我們仍然擁有該知識產權。我們已將其授權給一般海洋。然後，當他們將其出售或授權給客戶時，我們會保留分許可費，這與側罐聲納有關。因此，我們未來希望做的就是將相同的技術應用於其他感測器系統並直接進行，但這就是未來的中心。

Okay. So currently, it's primarily utilized with your own hardware and software that you provide, but you're trying to make it. So it's universal that will work with a variety of different systems, even those not manufactured by yourself and the licensing fee you get is pretty much just pure profit?

好的。目前，它主要與您自己提供的硬體和軟體一起使用，但您正在努力實現它。那麼它是通用的，可以與各種不同的系統一起使用，甚至那些不是您自己製造的系統，並且您獲得的許可費幾乎只是純利潤？

Yes. And just just clarify an issue with Klein sonar assumption on our part at this point is not our equipment it's supplying equipment. So generalizations equipment, yeah.

是的。只是澄清克萊因聲納的一個問題，我們假設此時不是我們的設備，而是供應設備。所以概括設備，是的。

So we've retained a license fee and we would do we'd hope to do that other sensor systems in the future.

因此，我們保留了許可費，我們希望將來也能在其他感測器系統中這樣做。

Last question and I'll let the others get out of they are others there.

最後一個問題，我會讓其他人離開，他們是那裡的其他人。

Are we anticipating a strong start then? Or is this more of a backfill situ or back half-weighted fiscal '25 as we go through and obviously timing, we know those disclaimers that you have, but you have a general sense that we started out this quarter with a very strong backlog number, very reminiscent of what we had at the end of Q3 and what you're able to produce and you kind of have a sense of what timing of that backlog is as far as system deliveries throughout the year?

那我們期待一個強勁的開局嗎？或者這更像是回填情況或回半加權的 25 財年，因為我們經歷了很明顯的時間安排，我們知道您擁有的那些免責聲明，但您普遍認為我們本季度開始時積壓數量非常多，非常讓人想起我們在第三季末的情況以及您能夠生產的情況，您對全年系統交付的積壓時間有一定的了解嗎？

It's a nice drive towards.

這是一個很好的驅動力。

I'll just say the we think it's going to be a solid start and leave it from there.

我只想說，我們認為這將是一個堅實的開始，然後就從那裡開始。

Again, I don't want you to specific.

再說一次，我不想讓你具體說明。

Thank you, gentlemen.

謝謝你們，先生們。

(Operator Instructions) [Sam Schwarz, Caliber Management].

（操作員說明）[Sam Schwarz，口徑管理]。

Yes, hi, good morning. Congratulations on a significant change in quarter and performance.

是的，嗨，早安。恭喜季度和業績發生重大變化。

My question is regarding the is there an application military application for your AI software as far as targeting is concerned?

我的問題是，就目標定位而言，你們的人工智慧軟體是否有軍事應用？

Yes, that's a yes, but it's not something that we would provide. And let me see let me expand on that the best way I can be used again in the data handling data handling aspects of it, but typically any military application, the military or the Navy's are going to apply their own ATR. model to it. They have all well, but we have an ATR model that can be provided typically the navies of the world want to provide their own model. So we kind of provide the front end and they fit into the backend, if you will.

是的，這是肯定的，但這不是我們會提供的。讓我看看，讓我擴展一下我可以在數據處理方面再次使用的最佳方式，但通常任何軍事應用，軍隊或海軍都會應用他們自己的 ATR。為它建立模型。他們一切都很好，但我們有一個 ATR 模型，通常可以提供世界各國海軍想要提供自己的模型。因此，如果您願意的話，我們提供前端，並將它們安裝到後端。

And there's a regulatory reason of that to if we were provide, the model itself becomes much more export controls, mix, more mature, export control, and therefore, it's something we'd prefer to stay away from it had it.

這是有監管原因的，如果我們提供的話，模型本身會變得更加出口管制，混合，更加成熟，出口管制，因此，我們寧願遠離它。

Thank you.

謝謝。

Ladies and gentlemen, this concludes our question and answer session. I would now hand the conference over to Rob Capps for any closing comments.

女士們先生們，我們的問答環節到此結束。我現在將把會議交給羅布·卡普斯（Rob Capps）徵求總結意見。

Okay, thank you, everyone, for joining us today, and I look forward to talking to you in a very few weeks after our first quarter. Thanks very much.

好的，謝謝大家今天加入我們，我期待在第一季結束後的幾週內與你們交談。非常感謝。

The contents of mine technology has now concluded. Thank you for your participation. You may now disconnect your lines.

礦山技術的內容現在已經結束了。感謝您的參與。現在您可以斷開線路。