Mercury Systems Inc (MRCY) 2025 Q1 法說會逐字稿

Good day, everyone, and welcome to the Mercury Systems first quarter fiscal 2025 conference call. Today's call is being recorded. At this time, for opening remarks and introductions, I'd like to turn the call over to the company's executive Vice President and Chief Financial Officer, Dave Farnsworth. Please go ahead, Mr. Farnsworth.

大家好，歡迎參加 Mercury Systems 2025 財年第一季電話會議。今天的通話正在錄音。現在，為了進行開場白和介紹，我想將電話轉給公司執行副總裁兼財務長 Dave Farnsworth。請繼續，法恩斯沃斯先生。

Good afternoon, and thank you for joining us. With me today is our chairman and Chief Executive Officer, Bill Ballhaus. If you have not received a copy of the earnings press release we issued earlier this afternoon, you can find it on our website at mrcy.com. The slide presentation that Bill and I will be referring to is posted on the investor relations section of the website under events and presentations.

下午好，感謝您加入我們。今天和我在一起的是我們的董事長兼執行長比爾鮑爾豪斯 (Bill Ballhaus)。如果您還沒有收到我們今天下午早些時候發布的收益新聞稿副本，您可以在我們的網站 mrcy.com 上找到它。比爾和我將提到的幻燈片簡報發佈在網站的投資者關係部分的活動和簡報下。

Turning to slide 2 in the presentation, I'd like to remind you that today's presentation includes forward- looking statements, including information regarding Mercury's financial outlook, future plans, objectives, business prospects, and anticipated financial performance.

轉向簡報中的投影片 2，我想提醒您，今天的簡報包含前瞻性陳述，其中包括有關 Mercury 的財務前景、未來計劃、目標、業務前景和預期財務業績的資訊。

These forward-looking statements are subject to future risks and uncertainties that could cause our actual results or performance to differ materially. All forward-looking statements should be considered in conjunction with the cautionary statements on slide two in the earnings press release and the risk factors included in Mercury's SEC filings.

這些前瞻性陳述受到未來風險和不確定性的影響，可能導致我們的實際結果或績效出現重大差異。所有前瞻性陳述應與收益新聞稿第二張投影片中的警示性陳述以及水星向 SEC 提交的文件中包含的風險因素結合考慮。

I'd also like to mention that in addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, during our call, we will also discuss several non-GAAP financial measures, specifically adjusted income, adjusted earnings per share, adjusted EBITDA, and free cash flow. A reconciliation of these non-GAAP metrics is included as an appendix to today's slide presentation and in the earnings press release.

我還想提一下，除了按照公認會計準則（GAAP）報告財務表現外，在我們的電話會議中，我們還將討論一些非GAAP 財務指標，具體調整後的收入、調整後的每股收益、調整後的每股收益、 EBITDA 和自由現金流。這些非公認會計原則指標的調節作為今天投影片簡報和收益新聞稿的附錄。

I'll now turn the call over to Mercury's chairman and CEO, Bill Ballhaus. Please turn to slide 3.

現在我將把電話轉給 Mercury 董事長兼執行長 Bill Ballhaus。請翻到幻燈片 3。

Thanks, Dave. Good afternoon. Thank you for joining our Q1 FY25 earnings call. We started FY25 with positive momentum, delivering results in line with or ahead of our expectations, and I look forward to our continued focus on performance improvement as we move through the fiscal year.

謝謝，戴夫。午安.感謝您參加我們的 2025 財年第一季財報電話會議。我們以積極的勢頭開始了 25 財年，交付的業績符合或超出了我們的預期，我期待著我們在整個財年中繼續關注績效改進。

Today I'd like to discuss three topics. First, some introductory comments on our business and results. Second, an update in each of our four priority areas, delivering predictable performance, building a thriving growth engine, expanding margins, and driving improved free cash flow. And third, performance expectations for FY25 and longer term.

今天我想談三個話題。首先，對我們的業務和業績進行一些介紹性評論。其次，我們四個優先領域的每一個更新，提供可預測的業績，建立蓬勃發展的成長引擎，擴大利潤，並推動改善自由現金流。第三，25 財年及更長期的業績預期。

Then I'll turn it over to Dave, who will walk through our financial results in more detail. Before jumping in, I'd like to thank our customers for their collaborative partnership and the trust they put in Mercury to support their most critical programs, and our Mercury team for their dedication and commitment to delivering mission-critical processing at the edge.

然後我會將其交給戴夫，他將更詳細地介紹我們的財務表現。在開始之前，我要感謝我們的客戶的合作夥伴關係以及他們對 Mercury 支持其最關鍵項目的信任，以及我們的 Mercury 團隊對在邊緣提供關鍵任務處理的奉獻和承諾。

Please turn to slide 4. Coming out of Q1, I am optimistic about our strategic positioning and our expectations on delivering predictable organic growth with expanding margins and robust free cash flow. Our Q1 results were generally as expected. Q1 bookings of $247.7 million, up 29% year-over-year, and a book-to-bill of $1.21. Q1 revenue of $204.4 million, up 13% year-over-year. Q1 adjusted EBITDA of $21.5 million, and adjusted EBITDA margin of 10.5%, both up substantially year-over-year. And Q1 free cash flow of negative $20.9 million, up $26.2 million year-over-year. We ended the first quarter with $158.1 million of cash on hand.

請轉到幻燈片 4。我們第一季的業績整體符合預期。第一季預訂量為 2.477 億美元，年增 29%，預訂出貨比為 1.21 美元。第一季營收為 2.044 億美元，年增 13%。第一季調整後 EBITDA 為 2,150 萬美元，調整後 EBITDA 利潤率為 10.5%，均較去年同期大幅成長。第一季自由現金流為負 2,090 萬美元，年增 2,620 萬美元。第一季結束時，我們手頭現金為 1.581 億美元。

These Q1 results reflect solid progress in each of our four priority focus areas, with highlights that include improved execution across our portfolio, and most notably in our common processing architecture area with progress toward full-rate production, expanding our record backlog to over $1.3 billion, up 16% year-over-year, reduced operating expense enabling increased positive operating leverage, and continued progress on free cash flow drivers with net working capital down $97 million year-over-year, or 14.6%.

第一季的業績反映了我們在四個優先重點領域中每一個領域的堅實進展，其中亮點包括整個產品組合執行力的提高，最引人注目的是我們的通用處理架構領域，在實現全速生產方面取得了進展，將我們創紀錄的積壓訂單擴大到超過13 億美元，同比增長16%，營運費用減少，從而提高了正營運槓桿，自由現金流驅動因素持續取得進展，淨營運資本同比下降9700萬美元，即14.6%。

Please turn to slide 5. Turning to each of our four priorities, and starting with the first, delivering predictable performance. In the first quarter, our focus on delivering predictable performance positively impacted our results primarily in three areas. First, we continue to make progress on mitigating what we believe to be predominantly transitory impacts that we have discussed over the last several quarters.

請翻到投影片 5。在第一季度，我們對提供可預測業績的關注主要在三個領域對我們的業績產生了積極影響。首先，我們在減輕過去幾季討論過的我們認為主要是暫時性的影響方面繼續取得進展。

In Q1 FY25, we recognized approximately $11 million of items down 31% from $16 million in Q4 FY24, including $8 million of net EAC change impact across our portfolio, and $3 million of inventory reserves. These items impacted Q1 revenue by approximately $8 million and gross margin by approximately $11 million.

在2025 財年第一季度，我們確認了約1,100 萬美元的項目，比2024 財年第四季的1,600 萬美元下降了31%，其中包括整個投資組合中800 萬美元的EAC 淨變化影響，以及300 萬美元的庫存儲備。這些項目影響第一季營收約 800 萬美元，毛利率約 1,100 萬美元。

Although still greater than we would like to see, the magnitude of these items is the lowest in five quarters and reflects the progress we are making in driving toward predictable execution by maturing our processes in program management, engineering, and operations.

雖然這些專案的規模仍超出我們的預期，但已是五個季度以來的最低水平，反映了我們透過完善專案管理、工程和營運流程，在推動可預測執行方面取得的進展。

Second, we continue to make progress in the quarter ramping toward full-rate production in our common processing architecture product area. We expect to have our full capacity online as we move through the second half of the year. Notably, this production progress contributed to receiving over $50 million in follow-on orders in the quarter.

其次，我們在本季持續取得進展，在我們的通用處理架構產品領域實現全速生產。我們預計今年下半年將全面上線。值得注意的是，這項生產進展有助於在本季度收到超過 5,000 萬美元的後續訂單。

Third, our focus on improved operational performance and delivering for our customers generated an acceleration of deliveries in the quarter as reflected in the 21% year-over- year increase in point-in-time revenues. The $16 million of year-over-year point-in-time revenue increase was a primary driver of our year-over-year revenue growth, the majority of which was driven by accelerated deliveries from Q2.

第三，我們對改善營運績效和為客戶提供服務的關注使得本季的交付速度加快，具體時間點營收年增了 21%。年比時間點收入成長 1,600 萬美元是我們營收年增的主要推動力，其中大部分是由第二季的加速交付所推動的。

Please turn to slide 6. Turning now to the second focus area, driving organic growth. Q1 bookings of $247.7 million resulted in a record backlog of over $1.3 billion, up 16% year-over-year. In line with our expectations, over 90% of Q1 bookings were production in nature, which we believe is a good leading indicator that our mid-shift toward production is continuing.

請翻到投影片 6。第一季訂單量為 2.477 億美元，積壓金額超過 13 億美元，創歷史新高，較去年同期成長 16%。與我們的預期一致，第一季超過 90% 的預訂都是生產性質的，我們認為這是一個很好的領先指標，表明我們正在繼續向生產過渡。

Some wins in the quarter worth noting. A follow-on award in our common processing architecture area, which was facilitated by the continued progress we made in Q1 in ramping up toward full-rate production. A production order for heads-up displays used in the Navy's T-45, a trainer aircraft, which is instrumental to preparing Navy and Marine Corps aviators to fly off of aircraft carriers.

本季的一些勝利值得注意。我們的通用處理架構領域的後續獎項，得益於我們在第一季在全速生產方面的持續進展。海軍 T-45 教練機所用平視顯示器的生產訂單，有助於海軍和海軍陸戰隊飛行員做好從航空母艦上起飛的準備。

A large follow-on order from a prime contractor for FPGA processor boards to be integrated on a key US Air Force program of record, where Mercury has already delivered hundreds of boards for developmental testing. Under the new contract, Mercury will deliver approximately 1,500 production boards. A large follow-on production order for a multi-chip module that will be employed in a key US Air Force program of record, where Mercury is the sole source provider of this device.

來自主承包商的 FPGA 處理器板大額後續訂單將被整合到美國空軍的一項重要記錄計劃中，水星已交付數百塊用於開發測試的板。根據新合同，Mercury 將交付約 1,500 個生產板。多晶片模組的大型後續生產訂單將用於美國空軍的重要記錄項目，水星是該設備的唯一供應商。

A large production order for RF solutions employed in a critical missile defense system that is being used in multiple regions to provide a defensive umbrella against hostile threats. And a five-year contract worth as much as $131.3 million from the US Naval Air Systems Command to continue providing secure data transfer systems for naval aircraft, which enable the transfer of data between planners on the ground and aircraft, significantly improving operational readiness of airborne assets.

用於關鍵飛彈防禦系統的射頻解決方案的大生產訂單，該系統正在多個地區使用，以提供抵禦敵對威脅的防禦傘。美國海軍航空系統司令部簽訂了一份價值高達1.313 億美元的五年合約，繼續為海軍飛機提供安全數據傳輸系統，使地面規劃人員和飛機之間能夠傳輸數據，從而顯著提高機上飛機的作戰準備狀態資產。

These awards are important not only because of their value and impact on our growth trajectory, but also because they reflect those customers' trust in Mercury to support their most critical franchise programs. We know from engagements with our customers that our unique capabilities providing mission-critical processing at the edge align well with their priorities and what we view as strong demand in growth markets, including sensors and effectors, electronic warfare, avionics, and C4I.

這些獎項之所以重要，不僅因為它們的價值和對我們成長軌蹟的影響，還因為它們反映了客戶對水星支持其最關鍵的特許經營計劃的信任。我們從與客戶的接觸中了解到，我們在邊緣提供關鍵任務處理的獨特能力與他們的優先事項以及我們認為的成長市場的強勁需求非常一致，包括感測器和效應器、電子戰、航空電子設備和C4I。

Please turn to slide 7. Now turning to our third priority focus area, expanding margins. As we discussed in prior calls, in our efforts to achieve our targeted adjusted EBITDA margins in the low to mid 20% range, we are focused on the following levers, executing on our development programs and minimizing cost growth impacts, getting back toward a more historical 20-80 mix of development to production programs, driving organic growth to generate positive operating leverage, and achieving cost efficiencies.

請轉到投影片 7。正如我們在之前的電話會議中討論的那樣，在努力實現目標調整後EBITDA 利潤率在20% 的低至中範圍內時，我們專注於以下槓桿，執行我們的開發計劃並最大限度地減少成本增長影響，以實現更歷史上 20-80 的開發到生產計劃組合，推動有機增長，產生積極的營運槓桿，並實現成本效率。

Q1 adjusted EBITDA margin of 10.5% was in line with our expectations and indicative of progress on each of these levers we're pursuing in our effort to reach our targeted margins over time. Gross margin of 25.3% was in line with our expectations and largely driven by the average margin in our backlog coming into FY25.

第一季調整後 EBITDA 利潤率為 10.5%，符合我們的預期，並表明我們在努力實現目標利潤率的過程中所追求的每一個槓桿都取得了進展。 25.3% 的毛利率符合我們的預期，主要是受到 2025 財年積壓訂單平均利潤率的推動。

As we discussed last quarter, our backlog margin coming out of FY24 was lower than what we expect to see on a go-forward basis, driven primarily by a small number of low-margin development programs and programs that incurred adverse EAP adjustments in FY24. We expect backlog margin to increase going forward as we continue to bring in new bookings as we did in Q1 that we believe will be in line with our targeted margin profile and accretive to the current average margin in our backlog.

正如我們上季度所討論的，我們 2024 財年的積壓訂單利潤率低於我們預期的未來水平，這主要是由少數低利潤開發計劃和在 2024 財年導致不利的 EAP 調整的計劃推動的。我們預計，隨著我們像第一季一樣繼續引入新訂單，未來積壓利潤率將會增加，我們相信這將符合我們的目標利潤率狀況，並增加積壓訂單中當前的平均利潤率。

Operating expenses, specifically R&D and restructuring and other charges, are down significantly year-over-year as a result of the actions implemented in FY24 to streamline and focus our operations. Additionally, Q1 R&D reflects the completion and streamlining of internally funded efforts and an increased allocation of resources toward customer-funded activities to drive development contracts to completion and to accelerate customer deliveries.

由於 2024 財年採取了精簡和集中營運的行動，營運費用（特別是研發和重組以及其他費用）同比大幅下降。此外，第一季的研發反映了內部資助工作的完成和精簡，以及對客戶資助活動的資源分配的增加，以推動開發合約的完成並加速客戶交付。

Going forward, I expect R&D levels to increase incrementally as we progress on customer-funded activities and ramp up targeted efforts in our advanced concepts group to fuel innovation across the mercury processing platform.

展望未來，我預計隨著我們在客戶資助的活動上取得進展，並在我們的先進概念小組中加大有針對性的努力，以推動整個汞加工平台的創新，研發水平將逐步提高。

Please turn to slide 8. Finally, turning to our fourth priority focus area, improved free cash flow. We continue to make progress on the drivers of free cash flow and, in particular, in reducing net working capital. Although our net working capital balance and free cash flow in Q1 were partially impacted by timing, with an expected Q1 cash inflow of $19 million occurring in early Q2, net working capital is down year over year $96.6 million or 14.6%.

請轉到投影片 8。我們繼續在自由現金流的驅動因素方面取得進展，特別是在減少淨營運資本方面。儘管我們第一季的淨營運資本餘額和自由現金流部分受到時間安排的影響，預計第二季初第一季現金流入為 1,900 萬美元，但淨營運資本較去年同期下降 9,660 萬美元，即 14.6%。

Inventory is down $11.8 million year-over-year. Notably, WIP is up 23% year-over-year from $101.1 million to $124.3 million and raw materials is down 12.3% from $235.9 million to $207 million, reflecting an increased mix of inventory progressed toward delivery. While inventory is up sequentially, this increase is offset by an increase in deferred revenue, which reflects our focus on improved contract terms.

庫存年減 1180 萬美元。值得注意的是，WIP 年增 23%，從 1.011 億美元增至 1.243 億美元，原材料下降 12.3%，從 2.359 億美元降至 2.07 億美元，反映出交付過程中庫存組合的增加。雖然庫存連續增加，但這種增加被遞延收入的增加所抵消，這反映了我們對改善合約條款的關注。

Unbilled receivables are down year-over-year $90.3 million or 23.2% and down sequentially $5.8 million, reflecting our focus on progressing our programs in order to deliver for our customers and, in turn, invoice and collect cash. We believe our continuous improvement related to program execution and hardware delivery, just-in-time material, and appropriately timed payment terms will lead to continued reduction in working capital and improved free cash flow performance going forward.

未開立應收帳款年減 9,030 萬美元，即 23.2%，環比下降 580 萬美元，這反映出我們專注於推進我們的計劃，以便為客戶提供服務，進而開立發票並收取現金。我們相信，我們在專案執行和硬體交付、準時材料和適當定時的付款條件方面的持續改進將導致營運資金持續減少並改善未來的自由現金流績效。

Please turn to slide 9. Looking ahead, I am optimistic about our team, our leadership position in delivering mission-critical processing at the edge, and our expected ability over time to deliver results in line with our target profile of above-market top-line growth, adjusted EBITDA margins in the low-to-mid 20% range, and free cash flow conversion of 50%.

請轉到幻燈片9。 。

As we discussed last quarter, although we will not be providing specific guidance this early in the year for FY25, I will reiterate the color we previously discussed. Although we are pleased with the acceleration of customer deliveries and revenue into Q1, largely from Q2, we continue to expect that revenue for the first half will be approximately in line with last year.

正如我們上季度所討論的，儘管我們不會在今年年初為 25 財年提供具體指導，但我將重申我們之前討論過的顏色。儘管我們對第一季客戶交付和收入的加速（主要來自第二季度）感到高興，但我們仍然預計上半年的收入將與去年大致持平。

For FY25, we continue to expect revenue to be relatively flat year-over-year, with an increase in run rate as we exit the fiscal year. With respect to gross margin, as we discussed last quarter, our current backlog margin is lower than what we would expect to see on a go-forward basis, driven primarily by a small number of low-margin development programs and programs that incurred adverse EAC adjustments in FY24.

對於 25 財年，我們繼續預期營收將同比相對持平，但隨著本財年結束，運行率將會上升。就毛利率而言，正如我們上季度討論的那樣，我們目前的積壓利潤率低於我們預期的未來水平，這主要是由少數低利潤率開發項目和導致 EAC 不利的項目推動的24 財年的調整。

Although we are encouraged that our recent quarter bookings are accretive to our overall backlog margin, we continue to expect low double-digit adjusted EBITDA margins overall for FY25, with adjusted EBITDA margins in the high single-digit range for the first half of the year, and then expanding in the second half as we complete lower-margin development efforts and continue to shift our mix toward production. Finally, with respect to free cash flow, we are expecting to be cash flow positive in FY25, with second-half free cash flow higher than the first half.

儘管我們對最近季度的預訂量增加了我們的整體積壓利潤率感到鼓舞，但我們仍然預計25 財年調整後EBITDA 利潤率總體將保持在兩位數的低水平，而今年上半年調整後的EBITDA利潤率將達到高個位數範圍，然後在下半年擴大規模，完成低利潤的開發工作並繼續將我們的產品組合轉向生產。最後，關於自由現金流，我們預期 25 財年現金流為正，下半年自由現金流高於上半年。

In summary, given the operational improvements over the last several quarters and our recent momentum, I expect that our performance in FY25, in particular our exit run rate, will represent a positive step toward our target profile. As we progress through the first half of the year, I look forward to providing additional insights relative to our expectations for second-half and full-year performance.

總之，鑑於過去幾季的營運改善和我們最近的勢頭，我預計我們在 2025 財年的表現，特別是我們的退出運行率，將代表我們朝著目標邁出積極的一步。隨著上半年的進展，我期待提供與我們對下半年和全年業績預期相關的更多見解。

With that, I'll turn it over to Dave to walk through the financial results for the first quarter, and Ilook forward to your questions. Dave?

接下來，我將把它交給戴夫，讓他了解第一季的財務業績，並期待您的提問。戴夫？

Thank you, Bill. As Bill previously noted, our first quarter results were in line with or ahead of our expectations and reflect solid progress toward our goal of transitioning the business to deliver predictable performance characterized by organic growth, expanding margins, and robust free cash flow.

謝謝你，比爾。正如比爾之前指出的，我們第一季的業績符合或超越了我們的預期，反映出我們在實現業務轉型以提供以有機增長、不斷擴大的利潤率和強勁的自由現金流為特徵的可預測業績的目標方面取得了堅實進展。

There is still a lot of work to be done, but we are encouraged by the progress we have made so far, and we continue to expect our transition efforts to become more apparent in our financial results during the second half of fiscal year 2025.

雖然還有很多工作要做，但我們對迄今為止所取得的進展感到鼓舞，並且我們繼續期望我們的轉型努力將在 2025 財年下半年的財務業績中更加明顯。

Our continued progress in our priority areas is highlighted by a few key milestones that we achieved during the first quarter. This includes delivering improved operating performance, making additional progress in our ramp toward full-rate production in our common processing architecture, and continuing to expand our record backlog.

我們在第一季實現的幾個關鍵里程碑凸顯了我們在優先領域的持續進展。這包括提高營運績效、在通用處理架構中實現全速生產方面取得進一步進展，以及繼續擴大我們的創紀錄的積壓。

With that, please turn to slide 10, which details our first quarter results. Our bookings for the quarter were $248 million, with a book-to-bill of $1.21, yielding a backlog of $1.3 billion, up $188 million, or 16% year-over-year. Revenues for the first quarter were $204 million, up $23 million, or 13%, compared to the prior year of $181 million.

接下來，請翻到投影片 10，其中詳細介紹了我們第一季的業績。本季我們的訂單量為 2.48 億美元，訂單出貨比為 1.21 美元，積壓訂單量為 13 億美元，較去年同期增加 1.88 億美元，即 16%。第一季營收為 2.04 億美元，比上年同期的 1.81 億美元成長 2,300 萬美元，即 13%。

The increase was primarily driven by higher point-in-time revenue of $16 million, largely accelerated from Q2, as we have continued to improve our operational performance. As Bill noted, we experienced approximately $8 million of net EAC change impact in the quarter, as compared to approximately $16 million in the first quarter of fiscal 2024, which was the lowest net EAC change impact in the last five quarters.

這一成長主要是由 1,600 萬美元的時間點收入成長推動的，隨著我們不斷改善營運績效，這一成長速度較第二季大幅加快。正如 Bill 指出的那樣，我們在本季度經歷了約 800 萬美元的淨 EAC 變更影響，而 2024 財年第一季約為 1,600 萬美元，這是過去五個季度中最低的淨 EAC 變更影響。

Gross margin for the first quarter decreased to 25.3% from 27.9% in the prior year. The decline in gross margin during the current quarter was primarily driven by higher manufacturing adjustments and inventory reserves of $11 million. These decreases to gross margin were partially offset by lower net EAC change impacts of $8 million in the current quarter.

第一季毛利率從去年同期的 27.9% 下降至 25.3%。本季毛利率的下降主要是由於製造調整的增加和 1,100 萬美元的庫存儲備造成的。本季 EAC 淨變化影響減少 800 萬美元，部分抵銷了毛利率的下降。

As Bill previously noted, we expect to see an improvement in our margin performance over time, as the average margin in our backlog improves, resulting from newer rewards at higher margins. Operating expenses decreased approximately $26 million year-over-year, primarily due to lower R&D expenses, restructuring, and other charges.

正如比爾之前指出的，我們預計隨著時間的推移，我們的利潤率表現將會有所改善，因為我們積壓的平均利潤率會因更高利潤率的新獎勵而提高。營運費用年減約 2,600 萬美元，主要是由於研發費用、重組和其他費用減少。

These decreases were driven by actions taken in fiscal 2024 to improve our performance by consolidating and simplifying our operations. The R&D headcount was impacted by more than 130 employees, driving lower costs as compared to the prior year. GAAP net loss and loss per share in the first quarter were $17.5 million and $0.30, respectively, as compared to GAAP net loss and loss per share of $36.7 million and $0.64, respectively, in the prior year.

這些下降是由於 2024 財年採取了透過整合和簡化營運來提高業績的行動。研發人員人數超過 130 名，與前一年相比，成本有所下降。第一季 GAAP 淨虧損和每股虧損分別為 1,750 萬美元和 0.30 美元，而前一年 GAAP 淨虧損和每股虧損分別為 3,670 萬美元和 0.64 美元。

The improvement in year-over-year earnings is primarily a result of reduced operating expenses, driven by our reductions in force throughout fiscal 2024. Adjusted EBITDA for the first quarter was $21.5 million, compared to $2 million in the prior year. Adjusted earnings per share was $0.04, as compared to adjusted loss per share of $0.24 in the prior year.

同比收益的改善主要是由於我們在整個 2024 財年減少人力，從而減少了營運費用。調整後每股收益為 0.04 美元，而上一年調整後每股虧損為 0.24 美元。

The year-over-year increase was primarily related to lower net losses in the current year, as compared to the prior year. Free cash flow for the first quarter was an outflow of $20.9 million, as compared to an outflow of $47.1 million in the prior year. The increased free cash flow is primarily driven by the reduction in cash used in operating activities of approximately $24 million in the current year, as compared to the prior year.

年成長主要與本年度淨虧損較上年減少有關。第一季自由現金流流出 2,090 萬美元，而去年同期流出 4,710 萬美元。自由現金流的增加主要是因為本年度經營活動所用現金與前一年相比減少了約 2,400 萬美元。

Slide 11 presents Mercury's balance sheet for the last five quarters. We ended the first quarter with cash and cash equivalents of approximately $158 million, driven primarily by approximately $15 million in cash used from operations and investments of approximately $6 million in capital expenditures.

投影片 11 展示了 Mercury 過去五個季度的資產負債表。第一季結束時，我們的現金和現金等價物約為 1.58 億美元，主要是由營運中使用的約 1500 萬美元現金和約 600 萬美元的資本支出投資推動的。

Billed receivables increased approximately $13 million sequentially. Unbilled receivables decreased sequentially by approximately $6 million, due in part to continued successful execution and billings across the program portfolio. Inventory increased sequentially by approximately $16 million, primarily as a result of material receipts supporting milestone invoicing, which largely drove the increase in our deferred revenue of approximately $22 million.

帳單應收帳款季增約 1,300 萬美元。未開立發票應收帳款較上月減少約 600 萬美元，部分原因是整個專案組合的持續成功執行和開立發票。庫存連續增加約 1600 萬美元，主要是由於支持里程碑發票的材料收據，這在很大程度上推動了我們的遞延收入增加約 2200 萬美元。

On a year-over-year basis, while inventory decreased by approximately $12 million, WIP is up approximately $23 million from the prior fiscal year period, reflecting an increased mix of inventory progressing toward delivery. Accounts payable decreased approximately $6 million sequentially, driven by the timing of payments to our suppliers. Accrued expenses decreased approximately $19 million sequentially, primarily due to payments under our incentive compensation plans and payroll expenses.

與去年同期相比，雖然庫存減少了約 1,200 萬美元，但在製品比上一財年增加了約 2,300 萬美元，反映出交付過程中庫存組合的增加。由於向供應商付款的時間安排，應付帳款環比減少了約 600 萬美元。應計費用比上一季減少約 1900 萬美元，主要是由於我們的激勵薪酬計劃和工資費用的支付。

Deferred revenues increased sequentially and year-over-year by approximately $22 million and $38 million, respectively, as a result of additional milestone billing events achieved during the period. These increases were primarily driven by material receipt milestones, as we continue to improve on aligning our contractual billing milestones with our cash outlays.

由於在此期間實現了額外的里程碑計費事件，遞延收入環比和同比分別增加了約 2200 萬美元和 3800 萬美元。這些成長主要是由材料收貨里程碑所推動的，因為我們不斷改善合約帳單里程碑與現金支出的一致性。

Working capital increased approximately $25 million, or 5%, on a sequential basis in the first year. The cash flow for the first quarter, but decreased by almost $100 million year-over-year. The year-over-year decrease shows the progress we've made in reversing the multi-year trend of growth in working capital, highlighted by four quarters of sequential reductions in unbilled receivables. Net working capital remains a primary focus area for the year ahead, and we believe we can continue to deliver improvement.

第一年，營運資金較上季增加約 2,500 萬美元，即 5%。第一季的現金流卻年減了近1億美元。同比下降表明我們在扭轉多年營運資本成長趨勢方面取得了進展，未開票應收帳款連續四個季度的減少凸顯了這一點。淨營運資本仍然是未來一年的主要關注領域，我們相信我們可以繼續取得進步。

Turning to cash flow on slide 12. Free cash flow for the first quarter was negative $22.9 million, as compared to negative $47.1 million in the prior year. As Bill noted, while this negative cash flow performance during the quarter was expected, we did experience some timing delays, which resulted in some free cash flow being pushed into the second quarter.

轉向幻燈片 12 上的現金流。正如比爾所指出的，雖然本季出現負現金流表現是預料之中的，但我們確實遇到了一些時間延遲，這導致一些自由現金流被推到了第二季。

As Bill outlined in his earlier comments, we will not be providing detailed guidance for fiscal year 2025 at this time, but I would point you to slide 9 for some qualitative comments.

正如 Bill 在先前的評論中概述的那樣，我們目前不會提供 2025 財年的詳細指導，但我建議您查看投影片 9 以獲取一些定性評論。

In closing, we are pleased with the solid starts of the fiscal year and the higher level of predictability of the business. We believe continuing to execute on our four priority focus areas will not only drive revenue growth and profitability, but will also result in further margin expansion and cash conversion, demonstrating the long-term value creation potential of our business.

最後，我們對本財年的良好開局和更高水準的業務可預測性感到滿意。我們相信，繼續執行我們的四個優先重點領域不僅將推動收入成長和獲利能力，還將導致進一步的利潤擴張和現金轉換，以展示我們業務的長期價值創造潛力。

With that, I'll now turn the call back over to Bill.

這樣，我現在將把電話轉回給比爾。

Thanks, Dave. With that, operator, please proceed with the Q&A.

謝謝，戴夫。那麼，操作員，請繼續進行問答。

(Operator Instructions) Pete Skibitski with Alembic Global.

（操作員說明）Alembic Global 的 Pete Skibitski。

Hey, good evening, guys.

嘿，晚上好，夥計們。

Hey, Pete.

嘿，皮特。

Hey, Bill, could you give more color on the common processing architecture programs? I'm just trying to get a feel for what challenges remain on those programs. If you're just trying to get yields up in the second quarter before you go into the full rate production, just maybe give us some more of a feel there. And do you still call them challenge programs, or are we past using that term?

嘿，比爾，您能否對常見的處理架構程序提供更多說明？我只是想了解這些計畫還面臨哪些挑戰。如果你只是想在進入全速生產之前提高第二季的產量，也許可以讓我們有更多的感覺。您仍然稱它們為挑戰計劃嗎？

Yeah, I mean, I'll start with the second part of your question first. We've really moved away from using that term, and I think that's just reflective of the progress that we made over the last five quarters. We talked about it pretty much quarter-over-quarter, how we made pretty methodical and systematic progress in closing out those programs.

是的，我的意思是，我先從你問題的第二部分開始。我們確實已經不再使用這個術語，我認為這只是反映了我們在過去五個季度的進展。我們幾乎每個季度都在討論我們如何在完成這些項目方面取得相當有條理和系統化的進展。

And when we left it last year, we had a couple left where we felt like the risk was in line with ordinary course risk, and then we had some programs associated with the CPA. So, we feel like we've made progress such that we don't need to talk about those programs. On the common processing architecture and our production, I'd say from the time that we initiated the root cause corrective action, we halted the line, we put a plan in place, and this is going back a few quarters now.

當我們去年離開它時，我們留下了一些我們認為風險與普通課程風險一致的項目，然後我們有一些與註冊會計師相關的項目。因此，我們覺得我們已經取得了進展，因此我們不需要談論這些計劃。關於通用處理架構和我們的生產，我想說，從我們啟動根本原因糾正措施的那一刻起，我們就停止了生產線，我們制定了一項計劃，而這已經可以追溯到幾個季度之前了。

We've pretty much executed to that plan. And we're in the progress of ramping up toward full rate production. As I mentioned before, we have the resources trained and in place. We have our capital in place. We're just being very methodical and rigorous in how we ramp this up.

我們幾乎已經執行了該計劃。我們正在努力全速生產。正如我之前提到的，我們已經培訓並到位了資源。我們的資本已經到位。我們只是非常有條理和嚴格地推進這項工作。

I think another positive sign in the quarter, and we alluded to the possibility of this in prior quarters, was once we got closer to full rate production and demonstrating that our corrective action was in place and working, we felt like there was the potential for follow-on awards to become unlocked.

我認為本季度的另一個積極跡象，我們在前幾個季度提到過這種可能性，是一旦我們接近全速生產並證明我們的糾正措施已經到位並正在發揮作用，我們覺得有可能後續獎勵將被解鎖。

And we saw that happen in the quarter, which I think is another positive indicator of the progress that we made on that front. Hopefully, that's some helpful color on the topic.

我們在本季度看到了這種情況的發生，我認為這是我們在這方面取得進展的另一個積極指標。希望這對這個主題有一些幫助。

Yeah, yeah, I appreciate it. Just one last one for me, just was wondering on the cadence here in the first half, it sounds like you had some revenue get pulled forward in the first quarter, so the second quarter will probably be down sequentially, probably year-over-year. Does the gross margin take a step down in the second quarter as well before it ramps in the second half? I was just wondering if you could clarify that for us. That's it. Thanks.

是的，是的，我很感激。對我來說，只是最後一個，只是想知道上半年的節奏，聽起來你在第一季度有一些收入被提前，所以第二季度可能會連續下降，可能會比去年同期下降。在下半年毛利率上升之前，第二季毛利率是否也會下降？我只是想知道你能否為我們澄清這一點。就是這樣。謝謝。

Yeah, I'll let Dave address the gross margins, and then maybe I can come back and provide a little color on the volume.

是的，我會讓戴夫解決毛利率問題，然後也許我可以回來提供一些有關銷量的信息。

Yeah, I think what you see is, and we had talked last quarter about our expectations being in the high single digits, and we were slightly higher than that in Q1, and I think what you would find is that as a result of the volume that got pulled in, we were able to have a bit of a higher operating leverage, and which resulted in EBITDA being higher even though gross margin was not.

是的，我想你看到的是，我們上個季度談到了我們的預期處於高個位數，我們比第一季的預期略高，我想你會發現這是由於交易量的結果受到拉動，我們能夠擁有更高的營運槓桿，這導致EBITDA 更高，儘管毛利率並非如此。

And so we would expect that if the volume ends up being lower in Q2, we wouldn't have as much of an impact from operating leverage, but it would still be in the same realm from a gross margin standpoint.

因此，我們預計，如果第二季的銷售最終下降，我們不會受到營運槓桿的太大影響，但從毛利率的角度來看，它仍然處於同一領域。

Okay, great. Very helpful. Thank you.

好的，太好了。非常有幫助。謝謝。

Thanks, Pete.

謝謝，皮特。

Peter Arment with Baird. Please go ahead.

彼得·阿門特和貝爾德。請繼續。

Yeah, thanks. Good afternoon, Bill and Dave. Thanks for all the color on the common processing architecture. It sounds like that's kind of tracking to your plan, but you've always talked about, I think, when you retired the risk on all these other kind of programs that are no longer challenged, that eventually you had to wait for them to get into kind of production before you'd be able to start to see that unbuild unwind.

是的，謝謝。下午好，比爾和戴夫。感謝通用處理架構上的所有色彩。這聽起來像是對你的計劃的跟踪，但我認為，當你取消所有這些不再受到挑戰的其他類型計劃的風險時，你總是談到，最終你不得不等待他們得到在你能夠開始在看到取消建置之前，先進入某種生產環境。

And obviously, you've made progress on the unbuild. But how do we think about it? It sounds like the CPA will start to ramp in the second half. But how about all those other programs? How do we think about kind of how they layer in?

顯然，您在未建置方面已經取得了進展。但我們該如何思考呢？聽起來 CPA 將在下半年開始上升。但是所有其他程式又如何呢？我們如何思考它們是如何分層的？

Yeah, I think about it in terms of just a transition that's happening over time. As we're completing the developments, there's then a transition into production. And on many of those development programs, that's the phase that we're in.

是的，我認為這只是隨著時間的推移而發生的轉變。當我們完成開發後，就會過渡到生產。在許多這樣的開發計畫中，這就是我們所處的階段。

I'd also point to our operating expense, which reflects an allocation of our engineering and our technical resources to closing out the development programs and ramping up production. So the status varies program by program. But I would say that we're generally in that phase where we're ramping down on the developments and beginning the process of transitioning to production.

我還想指出我們的營運費用，這反映了我們為完成開發計劃和提高產量而分配的工程和技術資源。因此，狀態因程序而異。但我想說的是，我們通常處於這樣一個階段：我們正在逐步減少開發並開始過渡到生產的過程。

Okay, that's super helpful. And just a quick follow-up. Your R&D, obviously, as you mentioned, ticked down this quarter, and then you said it's going to incrementally come back. Is it going back to kind of your historical 12% of revenues? Or is that not a good guide?

好的，這非常有幫助。只是快速跟進。顯然，正如您所提到的，您的研發在本季度有所下降，然後您說它將逐步恢復。它會回到你們歷史上 12% 的收入水準嗎？或者這不是一個好的指南嗎？

Yeah, I don't expect any major swings, but I do expect some incremental movement on that front, just as we make progress on ramping down on the development programs and then have the capacity to increase, in an incremental way, our investment and innovation across our mercury processing platform.

是的，我預計不會有任何重大波動，但我確實預計在這方面會出現一些漸進的變化，就像我們在減少發展計劃方面取得進展一樣，然後有能力以漸進的方式增加我們的投資和我們的汞處理平台不斷創新。

Got it. I'll jump back into queue. Thanks, guys.

知道了。我會跳回隊列。謝謝，夥計們。

Seth Seifman with JP Morgan.

塞思·塞夫曼 (Seth Seifman) 與摩根大通 (JP Morgan) 合作。

Thanks very much, and good afternoon. I wanted to ask -- when the CPA programs get ramped up, how do we think about the kind of portion of the mix that programs related to common processing architecture will comprise at that point when they're at full rate production?

非常感謝，下午好。我想問——當 CPA 程式加速時，我們如何考慮與通用處理架構相關的程式在全速生產時將包含的組合部分？

Yeah, I think we haven't specifically spoken about exactly what percentage of the portfolio any of these things are. Nothing is -- they're not a majority of the portfolio. Everything -- we have a breadth of 300-plus programs across the portfolio, and no program in and of itself contributes 10% of revenue.

是的，我認為我們還沒有具體討論這些東西在投資組合中所佔的百分比。沒有什麼是——他們不是投資組合的大多數。一切——我們的產品組合中有 300 多個項目，沒有一個項目本身貢獻了 10% 的收入。

So, it is a bunch of programs across various capabilities. So, it is, as you saw last year, a significant contributor to revenue. And as Bill talked about, we did see increased production booking activity around this, and we expect that to be impactful as we move throughout the second half of the year.

因此，它是一堆具有各種功能的程式。因此，正如您去年所見，它是收入的重要貢獻者。正如比爾所說，我們確實看到了圍繞此的生產預訂活動的增加，我們預計這將在我們整個下半年產生影響。

Right. Okay. So, I guess you said -- was it -- you said $15 million of follow-on orders?

正確的。好的。所以，我猜你說過——是嗎——你說過 1500 萬美元的後續訂單嗎？

Correct.

正確的。

In Q1, right? So, that's about 20% of the bookings. It sounds like when we think about where future revenues are going forward, it's not 20% of future revenues going forward. It's something much lower than that in terms of CPA-based programs.

在第一季度，對嗎？所以，這大約佔預訂量的 20%。聽起來，當我們考慮未來收入的走向時，它並不是未來收入的 20%。這比基於註冊會計師的課程要低得多。

Yeah, I think we're not specifically calling out how much that it is of the total. And I would not conclude that it's much less than or much more than. I mean, I think that-- I don't think that there's enough that we've commented on for you to make that conclusion.

是的，我認為我們並沒有具體指出它佔總數的多少。我不會得出結論說它遠小於或遠大於。我的意思是，我認為——我認為我們的評​​論還不足以讓你得出這個結論。

Okay. Okay. That sounds good. And then, just as a follow-on, the SG&A in the quarter, you know, definitely down meaningfully from the levels we saw in the second half of last year. Q1 of '24 was also kind of low, and then it kind of popped up for the remainder of the year. Do we think about a similar profile there, or is that kind of, you know, low 30s kind of number sustainable quarterly on a go-forward basis?

好的。好的。聽起來很好。然後，正如我們所看到的那樣，本季度的銷售及管理費用（SG&A）肯定比我們去年下半年看到的水平大幅下降。 24 年第一季也有點低，然後在今年剩餘時間突然出現。我們是否考慮過類似的情況，或者說，這種數字在未來的基礎上每季可持續保持在 30 多歲左右？

Yeah. So, there is some cyclicality in the SG&A, as you've seen historically from us. It's just timing of some of the expenses that happen. But we do expect our operating leverage to improve throughout the second half.

是的。因此，SG&A 存在一定的周期性，正如您從我們歷史中看到的那樣。這只是一些費用發生的時間。但我們確實預計下半年我們的營運槓桿將會改善。

Excellent. Thanks very much.

出色的。非常感謝。

Michael Ciarmoli with Truist Securities.

Truist 證券公司的 Michael Ciarmoli。

Hey. Good evening, guys. Thanks for taking my question. Good progress, good results here. It's just a point of clarification back to Pete's first question. The first half flat, and I always appreciate the conservatism, but should we expect revenues to be down kind of in that 15% sequential range? I mean, from a, just a think flat year-over-year ?

嘿。晚上好，夥計們。感謝您提出我的問題。這裡進展順利，結果很好。這只是對皮特第一個問題的澄清。上半年表現平平，我一直很欣賞這種保守主義，但我們是否應該預期收入會在 15% 的環比範圍內下降？我的意思是，從一開始，只是逐年持平？

Well, I think what we've said is for -- for the full year, we expect our revenue to be roughly in line -- roughly in line in the first half. The thing that we're really focused on is the exit run rate coming out of the year. You know, with the things that we're focused on are four priorities. The progress that we make in the first half of the year and coming out of the first half. We're really, really focused on the impacts of that focus and how it drives our run rate coming out of '25 leading into '26.

嗯，我認為我們所說的是 - 對於全年，我們預計我們的收入將大致與上半年一致。我們真正關注的是今年的退出運行率。你知道，我們關注的事情有四個優先事項。我們上半年的進展和上半年的成果。我們非常非常關注這一重點的影響，以及它如何推動我們從 25 年進入 26 年的運行率。

So, that's really where our focus is right now. But what we said is, first half roughly in line with last year, and we did have a little bit of pull forward from Q2 into Q1. Appreciate that our focus is really on driving the exit run rate coming out of the year.

所以，這確實是我們現在的重點。但我們所說的是，上半年與去年大致一致，而且我們確實從第二季提前到了第一季。值得讚賞的是，我們的重點實際上是推動今年的退出運行率。

Got it, got it. And then I guess just on that exit run rate, is there any way to quantify, I mean, if you get to full capacity on the common processing architecture, I mean, can you maybe help us out with kind of the overhead absorption, you know, what the drag on gross margins are now, just in getting full volume through on the end of the year?

明白了，明白了。然後我想就退出運行率而言，有沒有什麼方法可以量化，我的意思是，如果你在通用處理架構上達到滿負荷，我的意思是，你能幫我們解決一些開銷吸收問題嗎？嗎，年底實現滿量生產，現在毛利率的拖累有多大？

Yeah, I mean, I'll comment on the things that we're thinking about as the drivers on that exit run rate, and it aligns with our priority focus. So, first, it's continuing to drive down the volatility in the business, getting the common processing architecture line up to full rate production.

是的，我的意思是，我將評論我們正在考慮的退出運行率驅動因素，它與我們的優先重點一致。因此，首先，它繼續降低業務波動性，使通用處理架構系列達到全速生產。

Second, it's on our bookings and our organic growth focus. It's on the mix of bookings. And in this case, it's also on the margin in our bookings, based on the dynamic that we talked about of our backlog margin being a little bit lower than what we'd expect to see on a go-forward basis, driven by some low margin development programs and EAC impacts from last year.

其次，這是我們的預訂和有機成長重點。這是混合預訂。在這種情況下，這也是我們預訂的利潤率，基於我們談到的動態，我們的積壓利潤率略低於我們預期的未來水平，這是由一些低價格推動的去年的利潤發展計劃和EAC影響。

And we are feeling good about the new bookings coming in and being accretive to our backlog margin and in line with our target margins, aligned with our target profile. Also, the progress that we make on the working capital front and how we're able to allocate increased capacity away from deliveries on the large unbilled balances that have very little revenue with them, and over to programs that do have a higher revenue content.

我們對新訂單的到來感到滿意，這增加了我們的積壓利潤，符合我們的目標利潤，並符合我們的目標狀況。此外，我們在營運資金方面取得的進展，以及我們如何能夠將增加的產能從收入很少的大量未開票餘額的交付中分配給確實具有較高收入內容的項目。

So, I mean, there's nothing new in what I just said. That's what we've been focused on for the last year plus. And those are the areas that really are going to drive our velocity and our run rate coming out of the year, both top line and on the bottom line.

所以，我的意思是，我剛才所說的話並沒有什麼新內容。這就是我們去年多來一直關注的問題。這些領域將真正推動我們今年的速度和運行率，無論是收入還是利潤。

Got it. Just last one, I'll jump off. Just on those production bookings that you're getting, especially if it's, you know, kind of a core legacy program, not talking about the new CPA bookings. I mean, do you see that line of sight to gross margins, you know, maybe at or above the 40% level?

知道了。就最後一張，我就跳下去了。僅就您收到的那些生產預訂而言，特別是如果它是一種核心遺留計劃，而不是談論新的 CPA 預訂。我的意思是，您是否認為毛利率可能達到或高於 40% 的水平？

We, Michael, we do see that, you know, and have spoken about, we expect those margins to be in line with what our target model is for production. So, and we have been seeing that, as Bill indicated, in Q4 and Q1 bookings on those production activities.

我們，邁克爾，我們確實看到，你知道，並且已經談到過，我們預計這些利潤率將與我們的生產目標模型一致。因此，正如比爾指出的那樣，我們在第四季度和第一季這些生產活動的預訂中已經看到了這一點。

Yeah, I think the other add here that I'd emphasize is just the mix, too. We're seeing in this quarter an even heavier mix toward production, which I think is helpful to the, you know, the margin story going forward as well.

是的，我想我要強調的另一個補充也只是混合。我們在本季度看到生產的混合更加頻繁，我認為這對未來的利潤率故事也有幫助。

Got it. Very helpful. Thanks, guys.

知道了。非常有幫助。謝謝，夥計們。

Thank you.

謝謝。

Connor Walters with Jefferies.

康納沃特斯和傑弗里斯。

Hi, guys. Thanks for taking my question. Congrats on a great quarter. Maybe sticking with the bookings, you're clearly making great progress here, given the 90% production mix in the first quarter. This seems to be much improved from the 80% on fixed price programs you mentioned throughout fiscal '24.

嗨，大家好。感謝您提出我的問題。恭喜您度過了一個出色的季度。也許堅持預訂，考慮到第一季 90% 的生產組合，您顯然已經取得了巨大進展。這似乎比您提到的整個 24 財年固定價格計劃的 80% 有很大改善。

So, curious if this provides any, you know, clarity or better line of sight on that timing for mix normalization of that 80-20 mix you talked about previously.

所以，我很好奇這是否可以為您之前談到的 80-20 混合的混合標準化時間提供任何清晰度或更好的視野。

Yeah, I think this quarter our bookings, overall were greater than 90% production, and I think we had a pretty heavy mix of firm fixed price this quarter. So, you can -- last quarter we did say that of our firm fixed price bookings, a certain amount were for production. But in this case, it was 90% of our overall bookings, which I just think is further an indication of the shift in the mix.

是的，我認為本季我們的預訂量總體上超過了 90% 的產量，而且我認為本季我們有相當多的固定價格組合。所以，你可以——上個季度我們確實說過，在我們固定價格的預訂中，一定數量用於生產。但在本例中，它佔了我們總預訂量的 90%，我認為這進一步顯示了組合的變化。

Yeah, and I think, from the standpoint of when is there a magic point where the 80-20 is crossed, I think we've seen a significant shift, as Bill said, in those production activities that should really be manifesting itself in the second half of the year. So, we absolutely see ourselves moving in the direction we've been discussing.

是的，我認為，從什麼時候出現 80-20 跨越的神奇點的角度來看，我認為我們已經看到了重大轉變，正如比爾所說，在那些應該真正體現在生產活動中的重大轉變下半年。因此，我們絕對看到自己正在朝著我們一直在討論的方向前進。

Okay, great. That's very clear. And then just one more from me. As we look at the R&D spend, much improved this quarter. And as we think about, the progress we've made since standing up the advanced concept groups recently, just trying to make sense of this is whether -- truly more efficient spending with customer funds or how we should be thinking about that over the duration of the year and into next.

好的，太好了。這非常清楚。然後我又發了一封。當我們觀察研發支出時，本季有很大改善。正如我們所思考的，自從最近成立先進概念小組以來我們所取得的進展，只是試圖弄清楚這一點是否——真正更有效地利用客戶資金進行支出，或者我們在這段時間內應該如何考慮這一點今年並進入明年。

Yeah, I think it's a combination of factors. We have completed some internal projects. We have definitely streamlined our focus. And in Q1, you could see the increased allocation toward customer-funded development programs and production programs. I do think we'll see an incremental lift in R&D as we move through the year and we're able to free up some resources and target it back on internally funded innovation. But as I said earlier, I don't expect major swings. These are more incremental adjustments.

是的，我認為這是多種因素綜合作用的結果。我們已經完成了一些內部專案。我們確實簡化了我們的重點。在第一季度，您可以看到客戶資助的開發計劃和生產計劃的分配增加。我確實認為，隨著這一年的發展，我們將看到研發方面的增量提升，並且我們能夠釋放一些資源並將其重新用於內部資助的創新。但正如我之前所說，我預計不會有重大波動。這些都是更多的增量調整。

Perfect. Thanks so much.

完美的。非常感謝。

Thank you.

謝謝。

(Operator Instructions) Ronald Epstein with Bank of America.

（操作員指令）羅納德·愛潑斯坦（Ronald Epstein）與美國銀行。

Hey, guys. Good evening. A couple quick ones. What are you seeing in your supply chain and your suppliers? You didn't talk about that too much. I mean, are there still challenges or not? How's that going? And maybe as a follow-on to that, what's going on with your own workforce in terms of having enough folks and retaining them and so on and so forth? Because it seems like kind of across the industry, workforce and supply chain have been an issue.

嘿，夥計們。晚安.幾個快速的。您在供應鏈和供應商中看到了什麼？你沒有談論太多。我的意思是，是否仍然存在挑戰？怎麼樣？也許接下來，您自己的員工隊伍在擁有足夠的人員並留住他們等方面發生了什麼？因為這似乎是整個產業的問題，勞動力和供應鏈一直是個問題。

Yeah, I mean, I'll start with the workforce first. I mean, they're central to everything that we do, and we're very focused on our talent in the organization. I would say that at the current point, I don't see significant constraints on our performance tied to either workforce or supply chain right now.

是的，我的意思是，我首先從勞動力開始。我的意思是，他們是我們所做的一切的核心，我們非常注重組織中的人才。我想說的是，目前我認為我們的績效並沒有受到與勞動力或供應鏈相關的重大限制。

But we are always focused on those two areas, but not seeing any significant constraints.

但我們始終關注這兩個領域，但沒有看到任何重大限制。

Yeah, I think I would -- Ron, this is Dave again. I would add from a supply chain perspective, we haven't seen an elongation of lead times beyond kind of where we've been. We haven't felt that. I mean, are there occasional things that pop up and we've got to go figure out, hey, can we accelerate that? How do we get that? Yes, but I would not say there's a systemic thing that we've seen at this point.

是的，我想我會──羅恩，這又是戴夫。我想補充一點，從供應鏈的角度來看，我們還沒有看到交貨時間比我們以前的情況延長。我們還沒有感覺到。我的意思是，是否偶爾會出現一些事情，我們必須弄清楚，嘿，我們可以加快速度嗎？我們如何得到它？是的，但我不會說我們目前已經看到了系統性的事情。

Got it. And then maybe one more if I can. How should we think about pre-cash flow generation as we go out over time? And when would we expect that kind of more in line with your EBITDA or your net income that kind of thing?

知道了。如果可以的話，也許還可以再寫一篇。隨著時間的推移，我們該如何考慮預先現金流的產生？我們什麼時候會期望這種情況更符合您的 EBITDA 或淨收入之類的東西？

Yeah, we did have -- as you recall, we had a very significant positive cash flow for the fourth quarter. You know, the first quarter, as Bill discussed, we were negative but much improved from a year ago. There were a couple of things that timing-wise just fell into the very start of the second quarter and we would have been breakeven our positive in Q1.

是的，我們確實有——正如你所記得的，我們第四季度有非常可觀的正現金流。你知道，正如比爾所討論的，第一季我們表現不佳，但比一年前有了很大改善。從時間角度來看，有幾件事發生在第二季初，我們本來可以在第一季實現盈虧平衡。

You know, we expect to be positive for the year and we expect to have a stronger second half than a first half. And we've talked about -- we believe that this business should be and will be a consistent positive pre-cash flow generator.

你知道，我們預計今年將是積極的，我們預計下半年會比上半年更強勁。我們已經討論過－我們相信這項業務應該並且將會是一個持續的正預現金流產生器。

Got it, okay. Thank you very much.

明白了，好吧。非常感謝。

Thank you.

謝謝。

Mr. Bauhaus, it appears there are no further questions. Therefore, I would like to turn the call back over to you for any closing remarks.

包浩斯先生，看來沒有其他問題了。因此，我想將電話轉回給您，請您發表結束語。

Okay, thanks, Christa. Well, thanks, everyone. Appreciate you taking the time to join us for our Q1 FY25 earnings call and we look forward to another update a quarter from now. Take care.

好的，謝謝，克里斯塔。嗯，謝謝大家。感謝您抽出時間參加我們的 2025 財年第一季財報電話會議，我們期待一個季度後的另一次更新。小心。

This concludes today's conference call. Thank you for your participation and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。