Mind Technology Inc (MIND) 2025 Q3 法說會逐字稿

Greetings, and welcome to the MIND Technology third-quarter fiscal 2025 earnings call. (Operator Instructions)

您好，歡迎參加 MIND Technology 2025 財年第三季財報電話會議。（操作員說明）

As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Zach Vaughan. Thank you. You may begin.

提醒一下，本次會議正在錄製中。現在我很高興向大家介紹你們的主持人扎克·沃恩。謝謝。你可以開始了。

Thank you, operator. Good morning and welcome to the MIND Technology fiscal 2025 third-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 2025 財年第三季財報電話會議。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-technology.com or via a recorded instant replay until December 18. Information on how to access this replay was provided in yesterday's earnings release.

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，方法是造訪該公司網站mind-technology.com 的投資者關係部分，或透過錄製的即時重播觀看，直至12 月18日為止。昨天的財報中提供了有關如何存取此重播的資訊。

The information reported on this call speaks only as of today, Wednesday, December 11, 2024. And therefore, you're advised that time sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. 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.

本次電話會議報告的資訊僅截至今天（2024 年 12 月 11 日星期三）。因此，建議您在任何重播收聽或文字記錄閱讀時，對時間敏感的資訊可能不再準確。在我們開始之前，讓我提醒您，管理階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。

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 that may cause the company's actual future results or performance to 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 in its annual report on Form 10-K for the year ended January 31, 2024.

這些前瞻性陳述是基於管理階層目前的預期，包括已知和未知的風險、不確定性和其他因素。其中許多公司無法預測或控制，可能導致公司的實際未來結果或業績與這些陳述明示或暗示的任何未來結果或業績有重大差異。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。

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 these statements. Now, I'd like to turn the call over to Rob Capps.

此外，在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。現在，我想將電話轉給羅布·卡普斯。

Hey, thanks, Zach. And I'd like to thank everyone for joining us today. So today, I'll discuss some highlights from the quarter, Mark will then provide a more detailed update on our financials, and I'll return to wrap things up with some remarks about our outlook.

嘿，謝謝，扎克。我要感謝大家今天加入我們。因此，今天，我將討論本季度的一些亮點，然後馬克將提供有關我們財務狀況的更詳細的更新，我將返回總結一些關於我們前景的評論。

As expected, MIND delivered strong third-quarter results. Our business continues to operate efficiently and our emphasis on cost management and execution is yielding in terms. Our cash flow from operations, again, grew during the quarter which helped improve liquidity.

正如預期，MIND 公佈了強勁的第三季業績。我們的業務繼續高效運營，我們對成本管理和執行的重視正在取得成效。本季我們的營運現金流再次成長，有助於改善流動性。

We're also pleased to have generated our fourth consecutive quarter of profitable results. These results are great indicators of the transformations we've made. We're building good momentum that's visible in our backlog and pipeline of orders which I'll elaborate on in a moment.

我們也很高興連續第四個季度獲利。這些結果是我們所取得的轉變的重要指標。我們正在建立良好的勢頭，這從我們的積壓訂單和訂單管道中可以看出，我稍後將對此進行詳細說明。

Our approved capital structure and encouraging business environment provide MIND with important opportunities that we look to take advantage of in the coming quarters. We believe MIND is strategically positioned for growth, improve financial results and continued profitability in coming periods.

我們獲得批准的資本結構和令人鼓舞的商業環境為 MIND 提供了重要的機遇，我們希望在未來幾季充分利用這些機會。我們相信 MIND 的策略定位是在未來一段時間內實現成長、改善財務績效和持續獲利。

As I touched on last quarter, the conversion of all preferred stock and common stock was a significant development. On the conversion, we issued approximately $6.6 million shares of common stock and now have just under $8 million shares outstanding. All outstanding preferred stock along with the associated to crude but undeclared dividends have been retired. The impact of this conversion can be seen in our third-quarter financials, Mark will touch on the accounting for this transaction in just a moment.

正如我在上個季度談到的那樣，所有優先股和普通股的轉換是一個重大進展。在轉換過程中，我們發行了約 660 萬美元的普通股，現在已發行的股票略低於 800 萬美元。所有已發行優先股以及與原油相關但未宣布的股息均已註銷。這種轉換的影響可以從我們第三季的財務數據中看出，馬克稍後會談到這筆交易的會計處理。

We entered the fourth quarter with a strong backlog of approximately $26 million. While the backlog is essentially flat, we made substantial order deliveries during the third quarter that contributed to our improved revenues, yet we're able to offset this activity with new orders.

進入第四季時，我們有大約 2600 萬美元的大量積壓訂單。雖然積壓訂單基本上持平，但我們在第三季交付了大量訂單，這有助於我們提高收入，但我們能夠用新訂單抵消這項活動。

As I previously mentioned, order flow is often sporadic, and we don't announce each and every order we receive. However, the general trend is one of elevated order flow and activity and our backlog is much higher than historical standards. Beyond that, we have an active pipeline of pending and highly confident orders and prospects that are well in excess of our backlog of received orders.

正如我之前提到的，訂單流通常是零星的，我們不會公佈收到的每一個訂單。然而，整體趨勢是訂單流量和活動增加，我們的積壓訂單遠高於歷史標準。除此之外，我們還有大量待處理且高度有信心的訂單和潛在客戶，遠遠超過我們已收到的積壓訂單。

We currently estimate this pipeline to be more than double by back all of the firm orders. This robust backlog and pipeline of opportunities gives us confidence for improved financial results in the coming periods. Three meaningful contributors to our strong backlog are GunLink Source Controllers, BuoyLink positioning systems and SeaLink streamer systems.

目前，我們估計該管道將比所有確認訂單增加一倍以上。這種強勁的積壓和機會管道讓我們對未來一段時間改善財務表現充滿信心。GunLink 來源控制器、BuoyLink 定位系統和 SeaLink 拖纜系統是我們強大積壓訂單的三個重要貢獻者。

(inaudible) enjoys a strong market position with these products, even a dominant position in some cases. We currently have a number of pending orders across each product lines. And I'm confident that the favorable market dynamics and our focus will prove to be a recipe for success in generating many more orders in the future.

（聽不清楚）在這些產品上享有強大的市場地位，甚至在某些情況下佔據主導地位。目前，我們每個產品線都有大量待處理訂單。我相信，有利的市場動態和我們的重點將成為未來成功產生更多訂單的秘訣。

As we continue to grow or install base of products, we also increase our opportunity for aftermarket business such as spare parts, repairs and support. In the third quarter of this year, approximately 40% of our revenue came from this aftermarket activity.

隨著我們不斷擴大或安裝產品基礎，我們也增加了售後業務的機會，例如備件、維修和支援。今年第三季度，我們約 40% 的營收來自售後市場活動。

Now, as I've done in the past, I must remind you that the timing of the specific orders is subject to variability due to any number of challenges, unforeseen circumstances or just customer delivery requirements. The visibility that our backlog and pipeline gives us has allowed us to better manage supply chain issues.

現在，正如我過去所做的那樣，我必須提醒您，由於各種挑戰、不可預見的情況或僅僅是客戶交貨要求，具體訂單的時間可能會發生變化。我們的積壓訂單和管道為我們帶來的可見性使我們能夠更好地管理供應鏈問題。

In the past year or so, we've been aggressive in acquiring key components for those with long lead times. While this has contributed to an increased inventories, it has allowed us to meet the delivery requirements of our customers and increase revenue. We've recently been able to draw down our inventory balances to some degree expected this trend to continue into the fourth quarter.

在過去一年左右的時間裡，我們一直在積極為那些交貨時間較長的企業採購關鍵零件。雖然這導致庫存增加，但它使我們能夠滿足客戶的交貨要求並增加收入。我們最近在一定程度上減少了庫存餘額，預計這種趨勢將持續到第四季度。

Turn into our results, we, again, were able to grow our revenue both sequentially and year-over-year. Marine Technology products revenues for the third quarter of fiscal 2025 were $12.1 million. We continue to capitalize on macro tail winds and customer engagement to stimulate order flow and generate improved results. We're also continually working to improve our execution, efficiency and cost structure, which we expect to contribute to sustain profitability in future quarters.

轉化為我們的業績，我們的收入再次實現連續成長和年成長。2025 財年第三季海洋科技產品營收為 1,210 萬美元。我們繼續利用宏觀順風和客戶參與來刺激訂單流並改善績效。我們也不斷努力改善我們的執行力、效率和成本結構，我們預計這將有助於維持未來幾季的獲利能力。

General market conditions within the Marine Technology space continue to be strong. We see a number of opportunities continue to field inquiries and respond to requests for accreditations. Our team continues to develop new and innovative ways to adapt and implement our technologies to meet the evolving needs of our customers. Recent sales and inquiries related to our SeaLink streamer systems are a good example of this. In result, we are making additional investments to further develop and advance next generation of our ultra-high resolution SeaLink streamer system.

海洋技術領域的整體市場狀況持續強勁。我們看到許多機會繼續進行實地詢問並回應認證請求。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。最近與我們的 SeaLink 拖曳線系統相關的銷售和詢問就是一個很好的例子。因此，我們正在進行額外投資，以進一步開發和推進下一代超高解析度 SeaLink 流光系統。

I'm confident our differential approach and best-in-class switch of products will continue to give us the competitive advantage to address the growing demand we're seeing within the Marine Technology industry. We continue to see traction for our spectral AI software suite while revenue from this has been de minimis thus far, customer feedback has been very positive.

我相信，我們的差異化方法和一流的產品轉換將繼續為我們提供競爭優勢，以滿足海洋技術產業不斷增長的需求。我們繼續看到我們的光譜人工智慧軟體套件的吸引力，儘管迄今為止由此產生的收入微乎其微，但客戶反饋非常積極。

There are a number of respective customers that are being pursued. We're also exploring ways in which we can more quickly address an expanded market for this technology. And now for them, let me -- let Mark walk you through our third-quarter financials in a bit more detail then I'll come back.

目前正在尋找一些各自的客戶。我們也正在探索如何能夠更快地滿足該技術不斷擴大的市場需求。現在，讓我——讓馬克更詳細地向您介紹我們第三季的財務狀況，然後我會回來。

Thanks, Rob. And good morning, everyone. As usual, I'd like to remind you that with the sale of client, those operations have been treated as discontinued operations and results for periods prior to the sale in August 2023 have been restated to reflect that.

謝謝，羅布。大家早安。像往常一樣，我想提醒您，隨著客戶的出售，這些業務已被視為已終止業務，並且 2023 年 8 月出售之前的業績已重新表述以反映這一點。

Accordingly, the prior period comparative data reported yesterday and discussed here today do not include amounts related to client. They include only our ongoing business. Rob mentioned earlier, revenues for Marine Technology product sales totaled approximately $12.1 million in the quarter, which was up about 143% from the same period a year ago, 21% sequentially from our fiscal 2025 second quarter. Strength we're seeing in all our key markets and the favorable customer demand environment continues to support our backlog and significant pipeline of highly competent orders, positioning us well for sustained high-level revenue in the coming quarters.

因此，昨天報告和今天討論的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。Rob 先前提到，本季海洋科技產品銷售收入總計約 1,210 萬美元，較去年同期成長約 143%，較 2025 財年第二季較上季成長 21%。我們在所有主要市場中看到的實力和有利的客戶需求環境繼續支持我們的積壓訂單和大量高能力訂單，為我們在未來幾季實現持續高水準收入做好了準備。

Third-quarter gross profit was approximately $5.4 million. which was about 141% higher when compared to the third quarter of last year and up 13% sequentially. Gross profit margin was 45% for the quarter, which was essentially flat with a year ago and down sequentially.

第三季毛利約 540 萬美元。與去年第三季相比成長約 141%，比上一季成長 13%。本季毛利率為 45%，與去年同期基本持平，季減。

We implemented various price increases earlier this year. We are benefiting from greater production efficiencies throughout the business that are both meaningfully contributing to overhead absorption and improved margins.

今年早些時候，我們實施了多次漲價。我們受益於整個業務生產效率的提高，這對管理費用的吸收和利潤率的提高都做出了有意義的貢獻。

Our general and administrative expenses were approximately $2.8 million for the third quarter of fiscal 2025 which was flat sequentially, but down compared to a year ago. As we highlighted last quarter, these reductions in general and administrative expenses stem mainly from our ability to streamline overhead costs following the sale of Klein, most notably, corporate expenses related to the support of client.

2025 財年第三季度，我們的一般和管理費用約為 280 萬美元，與上一季持平，但與去年同期相比有所下降。正如我們在上季度所強調的那樣，一般和管理費用的減少主要源於我們在出售 Klein 後精簡管理費用的能力，最值得注意的是與客戶支援相關的公司費用。

Our research and development expense for the fiscal 2025 third quarter was $562,000. Costs are largely directed to the development of our next generation streamer system. Operating income for the third quarter was approximately $1.9 million compared to an operating loss of approximately $1.5 million in the third quarter of fiscal 2024. Third-quarter adjusted EBITDA was approximately $2 million compared to an adjusted EBITDA loss of approximately $1.1 million in the third quarter a year ago. Net income for the third quarter was approximately $1.3 million, which was an improvement of approximately $3 million from the net loss of approximately $1.7 million in the third quarter fiscal 2024. As Rob mentioned, we're pleased to have achieved another quarter of profitability. Our fourth in a row and we expect to continue building on this momentum in future periods.

2025 財年第三季我們的研發費用為 562,000 美元。成本主要用於下一代流光系統的開發。第三季的營業收入約為 190 萬美元，而 2024 財年第三季的營業虧損約為 150 萬美元。第三季調整後 EBITDA 約 200 萬美元，而去年第三季調整後 EBITDA 虧損約 110 萬美元。第三季淨利約 130 萬美元，比 2024 財年第三季約 170 萬美元的淨虧損增加約 300 萬美元。正如羅布所提到的，我們很高興又實現了一個季度的利潤。我們已連續第四次獲得此殊榮，我們預計在未來一段時間內將繼續保持這一勢頭。

As of October 31, 2024, we had working capital of approximately $21.2 million, including $3.5 million cash on hand. Liquidity continued to be impacted by our operational requirements, such as acquiring inventory and executing on our backlog of orders. However, we did generate $1.6 million of cash flow from operations in the third quarter. This represented a sequential increase of 84% compared to the second quarter.

截至 2024 年 10 月 31 日，我們的營運資金約為 2,120 萬美元，包括手邊現金 350 萬美元。流動性繼續受到我們的營運要求的影響，例如獲取庫存和執行積壓訂單。然而，我們第三季的營運確實產生了 160 萬美元的現金流。與第二季相比，季增 84%。

Balance sheet remains strong. We're debt free and the company maintains a clean capital structure following the preferred stock conversion in September. We now have solid footing and flexibility from which to enhance stockholder value in future periods.

資產負債表依然強勁。我們沒有債務，公司在 9 月優先股轉換後保持了乾淨的資本結構。我們現在擁有堅實的基礎和靈活性，可以在未來提高股東價值。

As we mentioned last quarter, our third-quarter results reflect the conversion of the preferred stock into approximately $6.6 million new shares of common stock. We recorded this issuance at the market value of the common stock, less associated transaction costs, such as legal fees and solicitation costs, and the carrying value of the preferred stock has been eliminated.

正如我們上季度提到的，我們第三季的業績反映了優先股轉換為約 660 萬美元的新普通股。我們以普通股的市價記錄本次發行，減去相關的交易成本，例如法律費用和招攬成本，且優先股的帳面價值已被消除。

The excess of the carrying value of the preferred stock over the recorded value of the new common stock, which was approximately $15 million has been credited directly to retained earnings. This amount is also included in the calculation of earnings per share attributable to common stockholders but is not included in net income.

優先股帳面價值超過新普通股帳面價值的部分（約 1,500 萬美元）已直接計入留存收益。該金額也包含在歸屬於普通股股東的每股盈餘的計算中，但不包含在淨利潤中。

I'll now pass it back over to Rob for some concluding comments.

現在我將把它傳回給 Rob 以獲得一些結論性意見。

Okay, thanks, Mark.

好的，謝謝，馬克。

We're pleased that MIND continues to benefit from significant customer interest and engagement related to our cap product lines. A robust pipeline of orders and improved visibility gives us confidence for sustained higher level revenue.

我們很高興 MIND 繼續受益於客戶對我們的帽子產品線的濃厚興趣和參​​與。強勁的訂單管道和提高的可見性使我們對持續提高收入水平充滿信心。

We've streamlined our operations and focused our efforts in recent years. This strategy is yielding positive results. We now have a very clean capital structure after the conversion of preferred stock to common stock. And combined with our lien operating structure, this provides a great deal of flexibility from which to pursue opportunities. However, we also remain dedicated to managing costs to improve margins and enhance our bottom line.

近年來，我們簡化了營運並集中精力。這一戰略正在產生積極成果。優先股轉換為普通股後，我們現在擁有非常乾淨的資本結構。與我們的留置權營運結構相結合，這為尋求機會提供了很大的靈活性。然而，我們仍然致力於管理成本，以提高利潤率並提高我們的利潤。

Now that we are so much better positioned as a company and the macro environment is advantageous for MIND. I'm excited for us to actively chase new initiatives and opportunities. We've developed valuable partnerships and customer relationships that have enabled us to build up a strong backlog and to continue to drive new orders.

現在我們作為一家公司的定位已經好多了，宏觀環境對 MIND 來說是有利的。我很高興我們能夠積極追求新的舉措和機會。我們已經建立了寶貴的合作夥伴關係和客戶關係，使我們能夠建立強大的積壓訂單並繼續推動新訂單。

Marine Technology products continue to penetrate a variety of industries and markets. We believe our backlog of firm orders and pipeline of pending orders and other prospects are reflective of the significant demand and market adoption of our product lines.

海洋技術產品不斷滲透到各個產業和市場。我們相信，我們的確定訂單積壓、待處理訂單和其他潛在客戶的儲備反映了我們產品線的龐大需求和市場採用。

While we're pleased with our results for the third quarter, we believe MIND is poised to capitalize on additional opportunities and to deliver improved results in coming quarters. As a result, we expect to deliver positive adjusted EBITDA and profitability as we conclude fiscal 2025 and look ahead to next year.

雖然我們對第三季的業績感到滿意，但我們相信 MIND 準備好利用更多機會並在未來幾季提供更好的業績。因此，我們預計在 2025 財年結束並展望明年時，將實現正的調整後 EBITDA 和獲利能力。

Looking forward, we remain encouraged by the current demand environment and customer engagement we're experiencing. We expect our results for the fourth quarter to, again, be improved when compared to the third quarter.

展望未來，我們仍然對當前的需求環境和我們正在經歷的客戶參與感到鼓舞。我們預計第四季的業績將再次比第三季有所改善。

Additionally, our current visibility, healthy customer engagement, strong backlog and significant pipeline also give us optimism for fiscal 2026. We have a differentiated and market leading for your products, a favorable market environment and supportive pay wins. Business is also benefiting from an improved balance sheet and capital structure, which will be instrumental as we strive for growth. We look forward to wrapping up this year on a high note and remain focused on generating improved stockholder value in future periods.

此外，我們目前的知名度、良好的客戶參與度、強勁的積壓訂單和重要的管道也讓我們對 2026 財年感到樂觀。我們為您提供差異化和市場領先的產品、有利的市場環境和支援性的薪酬優勢。業務也受益於資產負債表和資本結構的改善，這將有助於我們努力實現成長。我們期待以高調結束今年，並繼續專注於在未來時期創造更高的股東價值。

With that, operator, we now open the call up for some questions.

接線員，現在我們開始電話詢問一些問題。

(Operator Instructions)

（操作員說明）

Tyson Bauer, KC Capital.

泰森鮑爾，KC Capital。

Good morning, gentlemen, and excellent quarter. Seems like we've now entered into the phase of more of the blocking and tackling quarters with a lot of the financial noise behind us, which is obviously a relief to all. And we're now starting to build that cash buffer for the company. Appears like you should be able to the end the year, your fiscal year at about $5 million in cash unless you have some networking capital gains or other uses that could embellish that number going forward. With that type of capitalization now in place and building that cash buffer for you, what options does that open up for you where we were going from survival to now looking at more of a growth phase for the company?

早安，先生們，祝您季度愉快。看來我們現在已經進入了更多阻礙和解決問題的階段，身後有很多財務噪音，這顯然讓所有人鬆了一口氣。我們現在開始為公司建立現金緩衝。看起來你應該能夠在今年年底前擁有大約 500 萬美元的現金，除非你有一些網路資本收益或其他用途可以美化未來的數字。現在有了這種類型的資本並為您建立了現金緩衝，這為您提供了哪些選擇，讓我們從生存到現在更多地關注公司的成長階段？

Yes. So, I think it gives us options. Before, we didn't have a lot of options look back a year ago, so it gives us ability to look at different things. So, how can we expand the product offering? How can we take our technology into different markets. So, it just gives us that flexibility, also gives us the working capital to maybe pursue some other projects that perhaps we just couldn't before because of the capital requirements of it. So, it just gives us options because I don't see us going out and making it a big acquisition and that's not what we're about, but what we want to do is to add things that are tangent to what we're doing now and start to slowly build our portfolio and build that revenue base.

是的。所以，我認為它給了我們選擇。以前，我們回顧一年前沒有太多選擇，所以它讓我們有能力看待不同的事情。那麼，我們要如何擴大產品範圍呢？我們如何將我們的技術帶入不同的市場。因此，它不僅為我們提供了靈活性，還為我們提供了營運資金，讓我們可以進行一些其他項目，而這些項目我們以前可能因為資本需求而無法進行。所以，它只是給了我們選擇，因為我不認為我們會走出去並使其成為一項大型收購，這不是我們的目的，但我們想做的是添加與我們正在做的事情相關的東西現在開始慢慢建立我們的投資組合併建立收入基礎。

I don't -- speaking for myself, I'm not sure the street or shareholders necessarily want you to go out and do a large acquisition at this point in time. We just caught our --

我不——就我自己而言，我不確定街道或股東是否一定希望你在此時出去進行大規模收購。我們剛剛抓住了我們的--

I couldn't live through that.

我無法忍受那件事。

Yeah, exactly. Give us a sense. I think one thing that is missing from perspective, shareholders and institutions that we talk with is just the scope of your global installed base when we're talking about seismic fleets and other service providers in the marine side. That parts, that services business really is a growing annuity force for your future financials. Give us a sense of that global installed base of what that means.

是的，完全正確。給我們一個感覺。我認為，當我們談論地震船隊和海洋方面的其他服務提供者時，從與我們交談的股東和機構的角度來看，缺少一件事就是您的全球安裝基礎的範圍。就這一點而言，服務業務確實是您未來財務狀況不斷增長的年金力量。讓我們了解這意味著什麼。

Well, you're exactly right. I mean, we have equipment installed with every seismic contractor in the world. Plus, many survey companies in the world, this stuff is used in very harsh environments, so it breaks just the nature of the beast. So, there is a great deal of opportunity for us to provide spare parts, repairs, field service, training for this increasing stall base and that doesn't go away. Those guys are out there, and they always have to replace things so it's a good relatively steady flow of business which I think is continue to grow. You know, we do that business, here in the US, in our Huntsville facility, we do it in our Malaysia facility, nearby Singapore, we send the field service people out all over the world to do things on the vessels. So it's -- we literally are anywhere in the world that you can be. Obviously, you can't go to Iran and North Korea and Russia, but everywhere else, we're providing those services.

嗯，你說得完全正確。我的意思是，我們為世界上每個地震承包商安裝了設備。再加上世界上許多調查公司，這東西都是在非常惡劣的環境下使用的，所以它破壞了野獸的本性。因此，我們有很多機會為這個不斷擴大的攤位基地提供備件、維修、現場服務和培訓，而且這種機會不會消失。這些人就在那裡，他們總是需要更換東西，所以這是一個相對穩定的業務流，我認為它會繼續成長。你知道，我們在美國亨茨維爾工廠開展這項業務，在新加坡附近的馬來西亞工廠開展這項業務，我們派遣現場服務人員到世界各地在船上做事。所以，我們確實位於世界上您能到達的任何地方。顯然，你不能去伊朗、北韓和俄羅斯，但在其他地方，我們正在提供這些服務。

And because a couple of years ago, the bigger competitor dropped out of the industry. This really is your ball field here.

因為幾年前，更大的競爭對手退出了這個行業。這確實是你的球場。

In some case, certainly with source controllers, we are the only game in town. That's an issue for sure, but we're the guys. There is some competition in other areas for positioning systems and for streamer systems. But again, the areas in which we're playing, the applications that we're focused on, we think we have a demanding or a leading position, I should say, and frankly have a technological edge over any competition. So, we think we're very well positioned on that.

在某些情況下，當然對於來源控制器來說，我們是城裡唯一的遊戲。這肯定是一個問題，但我們就是這樣的人。在定位系統和流光系統的其他領域也存在一些競爭。但同樣，我應該說，我們正在參與的領域，我們關注的應用程序，我們認為我們擁有要求很高或領先的地位，並且坦率地說，我們比任何競爭對手都擁有技術優勢。所以，我們認為我們在這方面處於非常有利的位置。

Okay.

好的。

That's a growing area for us.

這對我們來說是一個不斷成長的領域。

In the last quarter, you brought up the concept of leverage versus pricing, helping out margins. We saw that leverage on your operating expenses, that additional top line and holding the operating expenses there, the gross margin a little light, but you have product mix, you have other things that go into there. Is that something that we should see a greater influence on that pricing side as your new orders, that pipeline is fairly robust and with the addition of the leverage on the operating side, we'll see bigger improvements in that EBIT margin.

在上個季度，您提出了槓桿與定價的概念，有助於提高利潤率。我們看到對營運費用的槓桿作用，額外的收入並在那裡控制營運費用，毛利率有點​​低，但你有產品組合，你還有其他東西可以進入其中。我們應該看到這對定價方面有更大的影響，因為您的新訂單、管道相當強勁，並且隨著營運方面槓桿的增加，我們將看到息稅前利潤率有更大的改善。

Yeah. So, I think, just to give some color on that, I think the operational leverage, we've seen a lot of that benefit. I think just as top line grows, you'll continue to see more of that, but maybe to a lesser degree. I think we do have some pricing leverage here. You know, a lot of the revenue we delivered this past year was actually quoted the prior year so almost two years old pricing. So, I think we see some opportunities to improve that, maybe be a little more aggressive on our discount structures, and therefore brings it more to the bottom line.

是的。因此，我認為，只是為了對此進行一些說明，我認為營運槓桿，我們已經看到了許多好處。我認為，隨著收入的成長，你會繼續看到更多這樣的情況，但程度可能會較小。我認為我們在這裡確實有一些定價槓桿。你知道，我們去年交付的許多收入實際上都是前一年的報價，所以幾乎是兩年前的定價。因此，我認為我們看到了一些改進的機會，也許在我們的折扣結構上更積極一點，從而帶來更多的利潤。

Okay. And the question you hear a lot of these conference calls, with the new administration coming in pros and cons, obviously, possible tariffs on one side, deregulation the other side, which can improve Gulf activity. Comments from Pemex, which we've heard various times throughout the past decade plus that don't necessarily materialize, but just your sense within the industry of their outlook in general and how that improves your outlook.

好的。你在電話會議中聽到很多這樣的問題，新政府的到來有利有弊，顯然，一方面可能徵收關稅，另一方面放鬆管制，這可以改善海灣地區的活動。來自墨西哥國家石油公司的評論，在過去十年中我們多次聽到過，而且這些評論不一定會實現，而只是您在行業內對其總體前景的看法以及這如何改善您的前景。

Yeah. So, I think it's certainly not a negative, it's a positive if anything. I think the direct impact as you mentioned is probably more permitting issues in the Gulf of Mexico. And so, that has a positive impact, but again, our customers are working all over the world. So, what this administration does doesn't impact West Africa or off the coast of Brazil. But that is a positive, I think. So, I think it's a positive, but not a huge impact.

是的。所以，我認為這當然不是消極的，而是積極的。我認為你提到的直接影響可能是墨西哥灣更允許的問題。因此，這產生了積極的影響，但我們的客戶在世界各地工作。因此，本屆政府的所作所為不會影響西非或巴西沿海地區。但我認為這是積極的。所以，我認為這是一個正面的影響，但不是很大的影響。

I don't think you'll see a direct impact from us. I think, the other issues you hear about that tariffs and whatnot, I don't see that as an impact for us. Again, remember we're manufacturing and shipping out of Singapore so we're delivering out of Singapore. So, I really don't see an impact that might come from anything of that nature.

我認為您不會看到我們的直接影響。我認為，您聽到的有關關稅之類的其他問題，我認為這不會對我們產生影響。再次強調，我們是在新加坡製造和運輸的，所以我們也是在新加坡發貨的。所以，我真的沒有看到任何這種性質的影響。

Okay. This is the time of year that a lot of your customers are making CapEx decisions for the next calendar year and beyond. Would you anticipate more new order flow as we get beyond the first of the year and really early next year, a little pickup in that activity?

好的。每年這個時候，您的許多客戶都會為下一個日曆年及以後做出資本支出決策。隨著今年年初和明年初的到來，您是否預計會出現更多新訂單流，該活動會略有回升？

Yeah, I mean, it's kind of lumpy as you know when there are a number of prospects that we are in the middle of right now, which could come to fruition tomorrow or it could be another month or another two months. It just kind of depends when they pull the trigger. And part of it is predicated upon what they see their demand being. Do they want a particular project there that need that they have has a specific time frame. So that's really what drives a lot of this. But I'm confident we'll see additional activity, if not later this year, certainly into early next year.

是的，我的意思是，正如你所知，當我們現在正處於一些前景之中時，這有點不穩定，這些前景可能明天就會實現，也可能需要一個月或兩個月。這只是取決於他們何時扣動扳機。其中一部分取決於他們認為自己的需求是什麼。他們是否想要一個特定的項目，需要他們有一個特定的時間框架。所以這確實是推動這一切的原因。但我相信我們會看到更多的活動，即使不是今年晚些時候，肯定會持續到明年初。

Okay. And last question for me, you talked about new generation streamer becoming available. Would that be a prelude to more full system sales once that gets available to the industry and your customer base? And would you expect favorable pricing and margins on that new product coming out?

好的。我的最後一個問題，您談到了新一代串流媒體的出現。一旦向行業和您的客戶群提供，這是否會成為更完整的系統銷售的前奏？您是否期望新產品的推出能獲得優惠的定價和利潤？

Yes, I think it's not a -- the next, two- or three- months sort of thing. It's farther down the road a bit, but I think it will allow us to, again, address the competition a little more effectively. And also, I think it will allow us to perhaps address an expanded market as well. Perhaps there are some installations or applications that we're not best suited for today, but maybe would be with our improved technology. So, I think that will expand our addressable market. Probably not a big impact on '26, but going forward from there, I think that's where you'll see the benefit.

是的，我認為這不是接下來的兩三個月之類的事情。雖然還有些遙遠，但我認為這將使我們能夠再次更有效地應對競爭。而且，我認為這或許還能讓我們解決擴大的市場問題。也許有些安裝或應用程式不是我們今天最適合的，但也許可以透過我們改進的技術來實現。因此，我認為這將擴大我們的潛在市場。可能不會對 26 年產生太大影響，但從那時起，我認為這就是您會看到好處的地方。

Sound wonderful. Thank you, gentlemen.

聽起來棒極了。謝謝你們，先生們。

Ross Taylor ARS Investment Partners.

羅斯泰勒 ARS 投資夥伴。

First, it's always exhausting to follow Tyson because you're having to spend so much time crossing off your questions. First, congratulations on everything you guys have accomplished this year, especially the operational performance, which is really impressive. I have not seen a queue yet so is it possible that you give us what the GAAP earnings would be this year year-to-date? Obviously, your early GAAP earnings were impacted by a number of other factors. These are impacted by some factors, but I'm trying to get a run rate earnings per share number for where you were sitting at this year.

首先，跟隨泰森總是讓人筋疲力盡，因為你必須花很多時間來消除你的問題。首先恭喜你們今年所取得的一切成就，特別是營運業績，真是令人印象深刻。我還沒有看到排隊的情況，所以您能否告訴我們今年年初至今的 GAAP 收益是多少？顯然，您早期的 GAAP 收入受到許多其他因素的影響。這些受到某些因素的影響，但我正在嘗試獲取您今年所處位置的運行率每股收益數字。

So year-to-date nine months income from con -- or net income, rather, is $3 million, $3,043,000.

因此，今年迄今 9 個月的騙局收入——或者說淨收入，是 300 萬美元，即 3,043,000 美元。

Okay. Thank you very much.

好的。非常感謝。

That's all for dividend activity.

這就是股息活動的全部內容。

Yeah, that's what I was looking for. Thank you very much. You said about 40% of revenues and you and Tyson talked about the after-market aspect of your business, is that 40% a number that one should see on an annual basis? I understand because of the fact that it's driven, you might have some seasonality or some orders that are higher or lower. But is that a reasonably good number overall or should we expect to see that be somewhat lower or grow higher as you get more product in the field?

是的，這就是我一直在尋找的。非常感謝。您說大約 40% 的收入，您和泰森談到了您業務的售後市場方面，這 40% 是人們每年應該看到的數字嗎？我理解，因為它是受驅動的，所以您可能會有一些季節性或一些訂單更高或更低。但這是一個總體上相當不錯的數字嗎？

Yes, that's a great question. Because if you look historically, it's been around that level, the periods we've looked at, that's something we used to track until the last year or so. There's two factors that drive that percentage, it's the math.

是的，這是一個很好的問題。因為如果你從歷史的角度來看，它一直在這個水平附近，我們所研究的時期，這是我們過去一年左右一直在跟踪的東西。有兩個因素決定了這個百分比，那就是數學。

So, you've got bigger system sales, it's going to drive that percentage down, obviously. Where you have higher, actually, absolute sales of that activity is coming drive higher so it's really a function of the two. I would expect the absolute amount to continue to increase. It just makes sense. You got more stuff installed, you got more customers out there, there's more stuff to keep maintained. And you don't have to resell that either, that's the other thing. It happens by itself, and it tends to have a bit better margins as well as you might imagine.

因此，系統銷量更大，顯然會導致該百分比下降。事實上，如果你的銷售額更高，那麼該活動的絕對銷售額就會更高，所以這實際上是兩者的函數。我預計絕對數量將繼續增加。這很有道理。你安裝了更多的東西，你有更多的客戶，還有更多的東西需要維護。而且你也不必轉售它，這是另一回事。它是自然發生的，而且往往會有比你想像的更好的利潤。

Yes. And I would assume that it doesn't matter how new or old a piece of equipment is, it's really how it's being utilized and used, which is what drives the need for it. So that even a new piece of equipment can result in after-market sales reasonably quickly if it turns out that it's used in the environment.

是的。我認為，一台設備的新舊程度並不重要，重要的是它的利用和使用方式，這才是對它的需求的驅動力。因此，即使是一件新設備，如果事實證明它在環境中使用，也可以相當快地實現售後銷售。

As a matter of fact, most large system deliveries include a spares component. So, people buy spares up front because they know it's going to happen. Remember this, that's getting dragged through the ocean.

事實上，大多數大型系統交付時都包含備用零件。因此，人們會提前購買備件，因為他們知道這將會發生。記住這一點，那是被拖過海洋的。

Yeah, I can see a lot of things can go wrong with that. What are the needs? You talked two things. One is what is the -- what areas are driving your sales growth in here? I mean, I look at you guys and that we've seen you have the energy market, you have the defense market, you have the subsea mining market, you have the mapping market, you have other markets, looking for Malaysian airliners probably, things of that nature. What is it that's actually -- what are you seeing or are you seeing new areas of interest out there?

是的，我可以看到很多事情都會出錯。有什麼需求？你說了兩件事。一是哪些領域正在推動您的銷售成長？我的意思是，我看看你們，我們看到你們有能源市場，你們有國防市場，你們有海底採礦市場，你們有測繪市場，你們有其他市場，可能正在尋找馬來西亞航空公司，那種性質的東西。實際上是什麼——你看到了什麼或你看到了新的感興趣的領域？

So, the big drivers, obviously still, energy exploration has been on a rebound so that certainly is a positive for us. But also, marine survey activity is a big driver for us recently. You know, doing ocean bottom surveys for carbon capture installations, for wind farm installations, for all sorts of other stuff. So those are the things that have been driving things most recently. I think the other -- there are opportunities in other areas, but those two things have been the big driver so far.

因此，顯然，能源勘探一直在反彈，這對我們來說無疑是一個積極的推動因素。而且，海洋調查活動也是我們最近的一大推手。你知道，為碳捕獲裝置、風電場裝置和各種其他東西進行海底調查。這些都是最近推動事情發展的因素。我認為另一個——其他領域也有機會，但到目前為止，這兩件事一直是最大的推動力。

And I would think that when the UN has a program that wants to map all the world's ocean bottom, so I would assume that as that goes forward, that's a market opportunity or continuing source of demand. But also, the drone -- the growth of drone submarines and the like, it strikes me as there's a lot of need for subsea mapping along with that type of effort where you, if you're going to program something to go somewhere, you better know that there's not some large rock in the way, is that an area where you're seeing growing interest?

我認為，當聯合國有一個計劃想要繪製世界所有海底地圖時，我會認為隨著這一進程的發展，這是一個市場機會或持續的需求來源。而且，無人機——無人機潛艇等的增長，它讓我感到震驚，因為對海底測繪以及這種類型的工作的需求非常大，如果你要編程一些東西去某個地方，你最好知道路上沒有大石頭擋住，這是您越來越感興趣的區域嗎？

So not directly for us. I mean, what we're doing is providing survey for the sub surface of the ocean bottom to some depth. So, things that are actually on the surface itself that's really other technology, that's really more client technology that we sold that really addresses that sort of need. But having said that, as we see more installations and more things going to the ocean bottom that's going to continue to drive our demand from our survey customers. And also, we still see opportunities to take that technology into other areas such as domain security, things of that nature, which, we've talked about a lot and frankly, that's an area that we've put on the back burner in the last year and a half as we try to focus on current revenue opportunities. But I think that's something we can read address. There certainly are some opportunities here for us going forward.

所以不直接為我們服務。我的意思是，我們正在做的是對海底地下一定深度進行調查。因此，實際上表面上的東西本身就是其他技術，我們銷售的實際上是更多的客戶端技術，真正滿足了這種需求。但話雖如此，隨著我們看到更多的安裝和更多的東西進入海底，這將繼續推動我們的調查客戶的需求。而且，我們仍然看到將該技術應用於其他領域的機會，例如域安全，這種性質的事物，我們已經談論了很多，坦率地說，這是我們已經放在次要位置的一個領域。半以來，我們試圖專注於目前的收入機會。但我認為這是我們可以閱讀的地址。我們確實有一些前進的機會。

Okay. That would be great. Also, you talked about the new products, what kind of CapEx or R&D funding needs do you see having for those?

好的。那太好了。另外，您談到了新產品，您認為這些產品需要什麼樣的資本支出或研發資金需求？

I think if you look at what we've been doing this past year, I don't see a big change from that. There's some ups and downs from quarter-to-quarter just based on prototype deliveries and things like that, but it's in general, it's going to be that level spending.

我想，如果你看看我們過去一年所做的事情，我看不出有什麼大的改變。僅根據原型交付量等因素，季度與季度之間會有一些起伏，但總的來說，支出會達到這個水平。

Okay. And is the cash conversion ratio which was a little over 13% this year something we should expect pushing forward?

好的。今年略高於 13% 的現金轉換率是我們應該期待的嗎？

Well, Ross, that's a really tough one to nail down. I would expect it to improve a bit in the near term that really depending on how orders come in and what we have to do about replenish the inventory is really going to drive that a lot. So, I'm hesitant to be too precise here, but I would expect to see some improvement, at least in the near term.

好吧，羅斯，這是一個很難確定的問題。我預計它會在短期內有所改善，這實際上取決於訂單的進入方式以及我們必須採取的補充庫存措施，這確實會推動這一點。因此，我不太願意在這裡過於精確，但我希望看到一些改進，至少在短期內是如此。

Perfect. Fantastic. And lastly, I would agree with Tyson's comment that I think at this stage given all the success and opportunity, I'm not sure I want to see you guys do a big acquisition just yet. I'm not saying you can't manage it, but I'm saying, let us get to understand what the powerful profitability that matrix here is and then we can push forward.

完美的。極好的。最後，我同意泰森的評論，我認為在現階段考慮到所有的成功和機會，我不確定我是否希望看到你們進行大規模收購。我並不是說你無法管理它，而是說，讓我們了解這裡矩陣的強大獲利能力是什麼，然後我們就可以繼續前進。

Ross, you're preaching to the choir.

羅斯，你正在向唱詩班講道。

I often do.sk my dogs, okay. As I said, you guys are doing a great job. I think this is -- this has really turned things around, business wise. It's -- to me quite honestly, when I look at what you talked about your earnings, your $3 million in earnings for the year that basically gives you a run rate that's probably north of Tyson's or around or north of Tyson's estimate, which quite honestly, even if you know the current price of the stock makes it ridiculously cheap and the market will recognize it. But you guys have done a lot to get there. I want to thank you for your efforts.

我經常問我的狗，好吧。正如我所說，你們做得很好。我認為這確實扭轉了局面，從商業角度來看。老實說，對我來說，當我看看你所說的你的收入時，你今年300 萬美元的收入基本上給你的運行率可能高於泰森的估計，或者接近或高於泰森的估計，這很誠實，即使你知道股票的當前價格非常便宜並且市場會認可它。但你們為了實現這一目標已經做了很多事。我要感謝你的努力。

I appreciate that, Ross.

我很感激，羅斯。

You take care. Have a great holiday, by the way.

你保重。順便說一句，祝你假期愉快。

Yeah, you too.

是的，你也是。

(inaudible), Lars Capital.

（聽不清楚），拉斯資本。

Hello, everybody, and thank you for taking my question. I'm a little bit new to the stock. So, I started out as a preferred shareholder and ended up actually loving your business, after the sport, I love it even more.

大家好，感謝您提出我的問題。我對股票有點陌生。所以，我從優先股東開始，最終真正熱愛你們的事業，在運動之後，我更熱愛它。

So, I have a couple of questions. First of all, you specifically mentioned that you have pending and pipeline orders, more than twice as much as your backlog. Maybe you can tell me, is it an unusual situation or it's somewhat unusual? In other words, maybe you can compare and contrast this being a big experience. Is it normal that you have pipeline and pending orders that such a big market is extending your backlog or that's just something which is the nature of?

所以，我有幾個問題。首先，您特別提到您的待處理訂單和管道訂單數量是積壓訂單的兩倍以上。也許你可以告訴我，這是一個不尋常的情況還是有點不尋常？換句話說，也許你可以比較和對比這是一次很大的經驗。如此大的市場正在延長您的積壓訂單，您的管道和掛單是否正常，或者這只是其本質？

It's not that unusual at all. And that's just kind of -- it varies from period to period, obviously based on specific orders, but I think that's not at all unusual. If you look back historically, we've always tracked a number of orders. We've historically been pretty conservative about what we report so we're only reporting firm orders. So, I wanted to get a sense of, again, the total opportunities that we see out there, but I think that's pretty common for us.

這根本不是什麼不尋常的事。這只是一種 - 每個時期都有所不同，顯然是基於特定的命令，但我認為這一點也不罕見。如果您回顧歷史，我們總是會追蹤大量訂單。歷來，我們對報告的內容一直相當保守，因此我們只報告確定的訂單。所以，我想再次了解我們看到的全部機會，但我認為這對我們來說很常見。

Okay. My other question, one of the justification for the preferred convergences was mentioned is to -- for you to become a more attractive acquisition target space. You don't have the preferred not overhang anymore. Any thoughts? I know a couple of calls before me mentioned the apprehension of you doing that position, but let's take it from the other end. Any thoughts of going private considering how cheap you are, and a lot of companies are going private now, are you guys want to put perhaps a special committee to explore strategic options on anything. Any thoughts now that you have those structures so much better?

好的。我的另一個問題是，提到首選融合的理由之一是—讓您成為更具吸引力的收購目標空間。你不再有首選的不再突出。有什麼想法嗎？我知道在我之前的幾個電話中提到了對你擔任該職位的擔憂，但讓我們從另一端來看。考慮到你的成本有多低，有任何關於私有化的想法，而且現在很多公司都在私有化，你們是否想成立一個特別委員會來探索任何事情的戰略選擇。現在你的這些結構已經好多了，你有什麼想法嗎？

Well, obviously going private is a difficult thing, especially with a shareholder structure such as ours. It's very difficult to do. You know, we want to drive share of value just like you do and everyone else does. So, there are opportunities for us to combine with someone else in some manner. We're certainly open to looking at those sort of things, but we're going to concentrate on growing the business at the same time because you can't force those things to happen. They happen when they happen, you just have to run the business and that's what we're trying to do now.

顯然，私有化是一件困難的事情，尤其是像我們這樣的股東結構。這是非常難做到的。您知道，我們希望像您和其他人一樣推動價值份額。因此，我們有機會以某種方式與其他人結合。我們當然願意考慮這類事情，但我們將同時專注於發展業務，因為你無法強迫這些事情發生。當它們發生時，它們就會發生，你只需要經營業務，這就是我們現在正在努力做的。

Okay. Fair enough. My other question in about a technical business, but there is also a gross comp on. So maybe you can break it up a little bit of where they are in the cycle so there seems to be enough swing to the cycle of for your products. Versus which part do you think is going to -- you can grow permanently, and digital part is going to remain cyclical and we will basically change of market.

好的。很公平。我的另一個問題是關於技術業務的，但也有一個總的補償。因此，也許您可以將其分解為它們在週期中的位置，這樣您的產品的周期似乎就有足夠的波動。與你認為哪一部分相比——你可以永久成長，數位部分將保持週期性，我們基本上會改變市場。

Yeah, that's an interesting question. I think the streamer business, the ceiling business probably has the most upside near term just because that's been a smaller part for us. But having said that, I think we continue to see opportunities for our source controller business for GunLink. Even though we have a dominant market position there, we see opportunity to deliver improved technology so replace existing installations, things of that nature. So, I think I see opportunity across all areas.

是的，這是一個有趣的問題。我認為串流媒體業務、天花板業務可能在短期內具有最大的上漲空間，只是因為這對我們來說只是較小的一部分。但話雖如此，我認為我們繼續看到 GunLink 來源控制器業務的機會。儘管我們在那裡擁有主導市場地位，但我們看到了提供改進技術的機會，因此可以取代現有的裝置，諸如此類的東西。所以，我認為我在所有領域都看到了機會。

Okay. Thank you very much.

好的。非常感謝。

Thank you.

謝謝。

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

謝謝。我們的問答環節到此結束。我將把發言權交還給管理層以徵求結束意見。

I could thank you everyone for joining us today. And we look forward to talking to you when we report our fourth-quarter and year-end earnings early in the new year. Thanks very much.

我要感謝大家今天加入我們。我們期待在新年伊始報告第四季和年終收益時與您交談。非常感謝。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。