Inotiv Inc (NOTV) 2025 Q1 法說會逐字稿

Good day, everyone, and welcome to today's Inotiv fiscal 2024 fourth quarter financial results. (Operator Instructions) Today's conference is being recorded. I will be standing by if you need any assistance. It is now my pleasure to turn the conference over to Steven Halper.

大家好，歡迎觀看今天的 Inotiv 2024 財年第四季財務業績。（操作員指示）今天的會議正在錄音。如果您需要任何幫助，我將隨時待命。現在我很高興將會議交給史蒂文·哈爾珀。

Thank you, Marjorie, and good afternoon, everyone. Thank you for joining today's quarterly call with Inotiv's management team. Before we begin, I'd like to remind everyone that some of the statements that management will make on this call are considered forward-looking statements, including statements about the company's future operating and financial results and plans.

謝謝你，瑪喬麗，大家下午好。感謝您參加今天與 Inotiv 管理團隊的季度電話會議。在我們開始之前，我想提醒大家，管理層在本次電話會議上發表的一些陳述被視為前瞻性陳述，包括有關公司未來營運和財務業績和計劃的陳述。

Such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected. Any such statements represent management's expectations as of today's date.

此類聲明受風險和不確定性的影響，可能導致實際業績或成就與預測有重大差異。任何此類聲明均代表管理層截至今天的預期。

You should not place undue reliance on these forward-looking statements, and the company does not undertake any obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to the company's SEC filings for further guidance on this matter.

您不應過度依賴這些前瞻性陳述，且本公司不承擔更新或修改前瞻性陳述的任何義務，無論是由於新資訊、未來事件或其他原因。有關此事的進一步指導請參閱該公司的美國證券交易委員會文件。

Management will also discuss certain non-GAAP financial measures in an effort to provide additional information for investors. Definition of these non-GAAP measures and reconciliations to the most comparable GAAP measures are included in the company's earnings release, which has been posted to the Investors section of the company's website, www.inotiv.com, and is also available in the Form 8-K filed with the Securities and Exchange Commission. If you haven't obtained a copy of today's press release yet, you could do so by going to the Investors section of Inotiv's website.

管理階層也將討論某些非公認會計準則財務指標，以便為投資者提供更多資訊。這些非公認會計準則 (GAAP) 指標的定義以及與最可比較公認會計準則 (GAAP) 指標的調節表均包含在公司的盈利報告內，該報告已發佈在公司網站 www.inotiv.com 的投資者部分，也可在向美國證券交易委員會提交的 8-K 表格內查閱。如果您尚未獲得今天的新聞稿的副本，您可以訪問 Inotiv 網站的投資者部分獲取。

Joining us from the company this afternoon are Bob Leasure, President and Chief Executive Officer; and Beth Taylor, Chief Financial Officer. John Sagartz, Chief Strategy Officer, will join us for the question-and-answer portion of the call. Bob will begin with some opening remarks, after which Beth will present a summary of the company's financial results for our fiscal quarter and full and then we'll open the call for your questions. It is now my pleasure to turn the call over to Bob Leasure, CEO. Bob, please go ahead.

今天下午與我們一起參加會議的有公司總裁兼執行長 Bob Leasure；以及財務長貝絲·泰勒（Beth Taylor）。首席策略長 John Sagartz 將參加​​電話會議的問答部分。鮑伯將先致開場白，之後貝絲將概述公司本財季和全年的財務業績，然後我們將開始回答大家的提問。現在我很高興將電話轉給執行長鮑勃·萊瑟 (Bob Leasure)。鮑勃，請繼續。

Thank you, Steve and good afternoon to everyone. Joining our call today. During the first quarter, we moved forward with many of our objectives which included improving the company's liquidity position, reducing revenue volatility, reduced or continuing to focus on client satisfaction and client relationships and continued integration efforts. As one company, I'll spend a few minutes on our first quarter results and highlights to enhance liquidity.

謝謝你，史蒂夫，祝大家下午好。今天就加入我們的電話會議。在第一季度，我們推進了許多目標，包括改善公司的流動性狀況、降低收入波動、減少或繼續專注於客戶滿意度和客戶關係以及持續的整合努力。作為一家公司，我將花幾分鐘介紹我們第一季的業績和亮點，以增強流動性。

We, our recent equity offering provided net proceeds of $27.5 million. We're very pleased with the investor interest and that's coming to offer the additional equity will help reduce liquidity risk going forward. Allow us to continue to make long term strategic decisions, provide additional stability to reduce R MS volatility. We've expanded our NHP client base for calendar 2025 and pre sold much of our NHP inventory which we anticipate should deliver more consistent revenue streams.

我們最近的股票發行提供了 2750 萬美元的淨收益。我們對投資者的興趣感到非常高興，這將提供額外的股權，有助於降低未來的流動性風險。讓我們繼續做出長期策略決策，提供額外的穩定性以降低 R MS 波動性。我們已經擴大了 2025 年的 NHP 客戶群，並預售了大部分 NHP 庫存，我們預計這將帶來更穩定的收入來源。

In addition, we also expect to continue to see an increase in our revenue from quality management services in calendar 2025 as we did in 2024 and we continue to invest in our HP facilities in order to maintain this momentum.

此外，我們也預計，2025 年品質管理服務收入將繼續像 2024 年一樣增加，並且我們將繼續投資惠普設施以保持這一勢頭。

We continue to make progress integrating and improving our North American transportation distribution systems which we brought in house about a year ago. We believe this has helped to improve the client experience as well as our efficiency.

我們在整合和改進大約一年前引入的北美運輸配送系統方面繼續取得進展。我們相信這有助於改善客戶體驗和提高我們的效率。

Last quarter, we announced that we would continue our site optimization program, North America for the R MS business, which included closing three additional sites of which two are owned and one is leased while expanding an existing release location.

上個季度，我們宣布將繼續實施針對 R MS 業務的北美站點優化計劃，其中包括關閉另外三個站點，其中兩個為自有站點，一個為租賃站點，同時擴大現有的發布地點。

We continue to execute on this initiative. This expansion is expected to be approximately $5 million investment, and we intend to use tenant improvement dollars along with proceeds from the sale of the two owned facilities to pay for this consolidation project. Once completed. We expect to, to be which we expect to be at the end of F 2026 we estimate approximately $4 million to $5 million a year in cost savings from reduced repair and maintenance expense on facilities lower cost of production along with improved service for clients. While production capacity is expected to be unchanged for the first quarter of fiscal 2025 total revenue was $119.9 million compared to $135.5 million in the first quarter of fiscal 2024 representing a decrease of $15.6 million or $11.5%.

我們將繼續執行這項措施。此次擴建預計投資約 500 萬美元，我們打算使用租戶改善資金以及出售兩家自有設施的收益來支付該合併項目的費用。一旦完成。我們預計，到 2026 財年末，透過減少設施維修和維護費用，降低生產成本並改善客戶服務，每年可節省約 400 萬至 500 萬美元的成本。雖然預計 2025 財年第一季的生產能力將保持不變，但總收入為 1.199 億美元，而 2024 財年第一季的 1.355 億美元，下降了 1,560 萬美元，即 11.5%。

This decrease was mainly due to a $13.5 million reduction in NHP revenue which was driven primarily by pricing the lower pricing and some lingering high cost inventory again negatively impacted NHP margins during Q1 of fiscal 2025.

這一下降主要是由於 NHP 收入減少了 1,350 萬美元，這主要是由於定價較低以及一些揮之不去的高成本庫存在 2025 財年第一季度再次對 NHP 利潤率產生了負面影響。

In Q2 of fiscal 2025 we expect to see these margins improve compared to Q4 of fiscal year 2024 and Q1 fiscal year 2025 DS A revenue decreased slightly from $44.7 million in Q1 of fiscal '$24 million to $42.8 million in Q1 of fiscal 2025.

我們預計，2025 財年第二季的利潤率將較 2024 財年第四季和 2025 財年第一季有所提高。

While DSA operating margins have remained stable. The decrease in DSA revenue was mainly due to a decline in our discovery services revenue.

而DSA營業利潤率則維持穩定。DSA 收入的下降主要是由於我們的發現服務收入下降。

We had a strong quarter for new DS A award which was partially offset by cancellations.

本季度，我們的新 DS A 獎項表現強勁，但部分被獎項取消所抵消。

We saw a continued, a continued trend of strong awards for our new safety assessment services that were added over the last two years, and we saw a 16% increase in discovery service awards in Q1 of fiscal 2025 versus Q1 of fiscal 2024.

我們看到，過去兩年中增加的新安全評估服務持續獲得強勁獎勵的趨勢，並且 2025 財年第一季的發現服務獎勵與 2024 財年第一季相比增長了 16%。

This was the first quarter of reported growth we saw for Discovery Service Awards in the last two years for the trailing 12 months. Discovery service boards are still down 17% compared to the prior 12 month period.

這是我們發現的發現服務獎在過去兩年中第一個在過去 12 個月內實現成長的季度。與前 12 個月相比，發現服務板仍下降了 17%。

So it's still too early to say whether this is truly a trend, but it is encouraging, and we believe that some of the changes we made to our discovery services sales team and marketing team and their sales approach a year ago are beginning to have an important impact.

因此，現在說這是否真的是一種趨勢還為時過早，但它是令人鼓舞的，我們相信，我們一年前對我們的發現服務銷售團隊和行銷團隊及其銷售方式所做的一些改變開始產生重要影響。

Now, let me provide some comments on what we are seeing in the market today and some forward-looking thoughts on our different business segments going into calendar year 2025 we will continue to focus on process optimization, innovation, seating client expectations.

現在，讓我為我們目前在市場上看到的情況提供一些評論，並對我們進入 2025 年的不同業務部門提供一些前瞻性的想法，我們將繼續專注於流程優化、創新和滿足客戶期望。

We expect to see year over year revenue and adjusted EBITDA growth each quarter for the remainder of fiscal 2025 as well as reduced NHP revenue volatility as compared to fiscal 2024 in the DS A business. We are emphasizing growing our existing client base through cross selling our broad portfolio of products and services and attracting new clients to gain market share.

我們預計，2025 財年剩餘時間每季的營收和調整後 EBITDA 將年成長，同時與 2024 財年相比，DS A 業務的 NHP 收入波動將降低。我們強調透過交叉銷售我們廣泛的產品和服務組合來擴大現有客戶群，並吸引新客戶來獲得市場份額。

We believe the additional investments we made in our sales team in 2024 and planned investments for 2025 will continue to benefit us in fiscal 2025 and 2026 in the RMS segment. We've added new clients and based on our NHP pre sales, current purchase orders and demand for quality management services. We're optimistic about our goals for increasing RMS revenue in calendar 2025 overall, we remain confident going into 2025. We're also preparing for 2026 and 2027.

我們相信，我們在 2024 年對銷售團隊進行的額外投資以及 2025 年的計劃投資將繼續使我們在 2025 財年和 2026 財年的 RMS 部門受益。我們增加了新客戶，並基於我們的 NHP 售前、目前採購訂單和對品質管理服務的需求。我們對 2025 年 RMS 收入整體成長的目標感到樂觀，我們對 2025 年仍然充滿信心。我們也在為 2026 年和 2027 年做準備。

The geopolitical and market condition risk and uncertainties will remain with us as they do for all companies.

正如所有公司一樣，地緣政治和市場狀況的風險與不確定性仍將伴隨我們。

However, we are committed to building a business that will create value for our clients, employees and our shareholders and look forward to our future.

然而，我們致力於建立一個為我們的客戶、員工和股東創造價值的企業，並期待我們的未來。

I now turn the call over to Beth who are providing more detailed synopsis of its results for the quarter.

現在我將電話轉給 Beth，他將提供本季業績的更詳細概要。

Thank you, Bob. And good afternoon, everyone. For the first quarter of fiscal 2025 total revenue was $119.9 million compared to $135.5 million in the first quarter of fiscal 2024.

謝謝你，鮑伯。大家下午好。2025 財年第一季的總營收為 1.199 億美元，而 2024 財年第一季的總營收為 1.355 億美元。

This was a $15.6 million or 1.5% reduction in sales from the prior quarter. And as Boss said earlier, most of this reduction was resolved of reduced in HP pricing in the US within, within our RMS segment.

與上一季相比，銷售額減少了 1,560 萬美元，降幅為 1.5%。正如 Boss 之前所說，大部分降價是透過在美國 RMS 部門內降低 HP 價格來解決的。

RMS revenue for the first order of fiscal 2025 decreased $13.7 million or 15.1% compared to Q1 of fiscal 2024.

2025 財年第一筆訂單的 RMS 營收與 2024 財年第一季相比減少了 1,370 萬美元，即 15.1%。

As discussed earlier, the decrease in RS revenue was due to the lower NHP related product and service revenue mainly as a result of a lower average selling price for nhps in the US.

如前所述，RS 收入的下降是由於 NHP 相關產品和服務收入的降低，這主要是由於美國 nhps 的平均售價較低。

We sold approximately the same number of nhps in fiscal Q1 2025 compared to fiscal Q1 of 2024. However, the NHP average selling price in the US in Q1 of fiscal 2025 was approximately 30.3% lower than in Q1 of fiscal 2024 and 1.6% lower than that. In Q4 of fiscal 2024 we have indicated on previous conference calls that NHP sell prices declined from the highs we saw in Q4 of fiscal 2023 in the first half of fiscal 2024 the lower pricing and higher cost inventory again negatively impacted NHP margins during Q1 of fiscal 2025. And we believe R MS margins for the remainder of calendar 2025 should improve from here.

與 2024 財年第一季相比，我們在 2025 財年第一季銷售的 nhp 數量大致相同。不過，2025財年第一季美國NHP平均售價較2024財年第一季低約30.3%，較2024財年第一季低1.6%。在 2024 財年第四季度，我們在先前的電話會議中指出，NHP 的售價從 2023 財年第四季的高點下跌，在 2024 財年上半年，較低的定價和較高的成本庫存再次對 2025 財年第一季的 NHP 利潤率產生負面影響。我們相信，2025 年剩餘時間的 R MS 利潤率應該會從現在開始提高。

PS A revenue in the fiscal 2025 1st quarter was $42.8 million compared to $44.7 million. In Q1 of fiscal 2024 the quarter over quarter decrease in GS A revenue was primarily driven by a decrease in discovery services revenue overall. Net new DS A orders this quarter were $42.3 million versus $33.7 million last quarter and $63.8 million. In Q1 of fiscal 2024 the conversion rate in the first quarter of fiscal 2025 was 32.8% slightly up from 32.6% in the prior year period.

PS A 2025 財年第一季的營收為 4,280 萬美元，而去年同期為 4,470 萬美元。2024 財年第一季度，GS A 營收季減主要是由於整體發現服務收入下降所致。本季 DS A 淨新訂單為 4,230 萬美元，上一季為 3,370 萬美元，而上一季為 6,380 萬美元。2024 財年第一季的轉換率為 32.8%，略高於去年同期的 32.6%。

The DSA cancellations and negative change orders in the first quarter of fiscal 2025 were approximately 54% higher compared to the prior year period, which had the lowest cancellations in the last two years. Cancellations in the trailing 12 month period were approximately 1% less than the prior period.

2025 財年第一季的 DSA 取消量和負面變更單量比去年同期高出約 54%，而去年同期的取消量是過去兩年中最低的。過去 12 個月的取消率比前一期減少了約 1%。

So overall, our operating loss for the first quarter of fiscal 2025 was $15.5 million compared to an operating loss of $9.4 million in the first quarter of fiscal 2024 primarily due to lower NHP margins as previously discussed, partially offsetting the decreases in NHP margins or decreases in restructuring costs, transportation costs and costs related to sites closed.

因此總體而言，我們 2025 財年第一季的營業虧損為 1,550 萬美元，而 2024 財年第一季的營業虧損為 940 萬美元，這主要是由於 NHP 利潤率較低（如前所述），部分抵消了 NHP 利潤率的下降或重組成本、運輸成本和與關閉站點相關的成本的下降。

In connection with our optimization plan, there were slightly lower DS A sales which resulted in relatively flat DS A operating margins consolidated net loss attributable to common shareholders in the first quarter of fiscal 2025 totaled $27.6 million or a $1.02 loss per diluted share. This compared to consolidated net loss attributable to common shareholders of $15.4 million or $0.60 of loss per diluted share in the first quarter of fiscal 2024 for the first quarter of 2025 adjusted EBITDA was $2.6 million or 2.2% of total revenue compared to $9.6 million or 7.1% of total revenue. For the first fiscal quarter of 2024 non-GAAP operating income for our DS A segment in the first quarter was $7.1 million or 5.9% of total revenue compared to $6.9 million or 5.1% of total revenue in the last fiscal year's first quarter.

與我們的最佳化計畫相關，DS A 銷售額略有下降，導致 DS A 營業利潤率相對持平，2025 財年第一季歸屬於普通股股東的合併淨虧損總計 2,760 萬美元，即每股攤薄虧損 1.02 美元。相較之下，2024 財年第一季歸屬於普通股股東的綜合淨虧損為 1,540 萬美元或每股攤薄虧損 0.60 美元，2025 年第一季的調整後 EBITDA 為 260 萬美元或總收入的 2.2%，而 2025 年第一季的調整後 EBITDA 為 960 萬美元的總收入。2024 財年第一季，我們 DS A 部門的非 GAAP 營業收入為 710 萬美元，佔總營收的 5.9%，而上一財年第一季為 690 萬美元，佔總營收的 5.1%。

As we continue to fill recently added capacity, we believe we will see margin improvement through operating leverage.

隨著我們繼續填補​​最近增加的產能，我們相信我們將透過經營槓桿看到利潤率的提高。

The net book to bill ratio for DSA in the first quarter of fiscal 2025 was 1.01 times to 1 times. Our trailing 12 months book to bill was 0.87 times to 1 times GS A backlog was $130.4 million on December 31st, 2024, compared to $129.9 million at September 32,024 and $152.3 million on December 31, 2023, in our RM segment, non-gap operating income in the first quarter of fiscal 2025 was $9.4 million or 7.9% of total revenue compared to $16.9 million or 12.5% of total revenue. In the first quarter of fiscal 2024 interest expense. In Q1 of fiscal 2025 increased to $13.8 million from $11.4 million in the first fiscal quarter of 2024. Due to an increase in interest rates, interest associated with the second lien notes issued in September 2024 and periodic draws on our revolving credit facility.

2025財年第一季DSA的淨帳面餘額與出貨餘額比為1.01倍比1倍。我們過去 12 個月的訂單出貨比為 0.87 倍至 1 倍 GS A 積壓訂單在 2024 年 12 月 31 日為 1.304 億美元，而 2024 年 9 月 32 日為 1.299 億美元，2023 年 12 月 31 億美元收入為 940 萬美元，佔總收入的 7.9%，而先前為 1,690 萬美元，佔總收入的 12.5%。2024財年第一季的利息支出。2025財年第一季的銷售額從2024財年第一季的1,140萬美元增加到1,380萬美元。由於利率上升，2024 年 9 月發行的第二留置權票據相關的利息以及我們循環信貸額度的定期提款。

Our balance sheet as of December 31, 2024, included $38 million in cash and cash equivalent as compared to $21.4 million September 30, 2024. Our quarter and cash balance includes the net proceeds from our recent equity offering total debt net of debt insurance cost. As of December 31, 2024 was $396 million compared to $393.3 million. On September 32,024.

截至 2024 年 12 月 31 日的資產負債表包括 3,800 萬美元的現金及現金等價物，而 2024 年 9 月 30 日為 2,140 萬美元。我們的季度和現金餘額包括我們最近的股票發行淨收益減去債務保險成本後的總債務。截至 2024 年 12 月 31 日為 3.96 億美元，而先前為 3.933 億美元。024年9月32日。

This includes $111.6 million of convertible notes as of December 31st, 2024, and our second lien notes of $19.2 million net cash used in operations for the three months ended December 31st 2024 was $4.5 million compared to cash used in operations of $6.5 million. In the three months ending December 31st, 2023, in October of 2024. We entered into a third amendment with the seller of orc and extended the payable to January 27th, 2026, capital expenditures in the first quarter of fiscal 2025 were $4.5 million or approximately 3.7% of total revenue.

這包括截至 2024 年 12 月 31 日的 1.116 億美元的可轉換票據，以及我們的第二留置權票據 1,920 萬美元，截至 2024 年 12 月 31 日的三個月的營運淨現金使用量為 450 萬美元，而營運現金使用量為 650 萬美元。截至 2023 年 12 月 31 日的三個月，以及 2024 年 10 月。我們與orc的賣方達成了第三次修訂，將應付款項延長至2026年1月27日，2025財年第一季的資本支出為450萬美元，約佔總收入的3.7%。

The first quarter of fiscal 2024 capital expenditures were $5.6 million or 44.1% of revenue. We expect to spend less than 4% of revenues for Capex in fiscal 2025.

2024 財年第一季的資本支出為 560 萬美元，佔營收的 44.1%。我們預計 2025 財年的資本支出將佔營收的不到 4%。

With respect to guidance. As you know, we withdrew our fiscal 2024 financial guidance after we reported Q2 2024 results while we continue to feel good about the progress we have made in recent quarters, we are not providing fiscal 2025 guidance. At this time. As we have stated previously, we hope to provide guidance once we have greater clarity on the market and client demand.

關於指導。如您所知，在報告 2024 年第二季業績後，我們撤回了 2024 財年的財務指引，儘管我們對最近幾季的進展感到滿意，但我們不會提供 2025 財年指引。此時。正如我們之前所說，我們希望在對市場和客戶需求有了更清晰的認識後提供指導。

Needless to say management has developed a comprehensive fiscal 2025 annual operating plan designed to continue to optimize our capital allocation and expense base and improve our operating results. As discussed earlier, the plan forecast compliance with the updated covenant under our latest amendment to the credit agreement entered into in September of 2024.

毋庸置疑，管理層已經制定了全面的 2025 財年年度營運計劃，旨在繼續優化我們的資本配置和支出基礎並改善我們的營運績效。如前所述，該計畫預測將遵守我們於 2024 年 9 月簽訂的信貸協議最新修訂中更新後的契約。

And with that financial overview, we will turn the call over to our operator for questions.

了解了財務概況後，我們會將電話轉給接線生以回答問題。

Thank you at this time. (Operator instructions)

這次謝謝你了。（操作員指令）

We'll go first to Frank Takkinen with Lake Street capital. Markets.

我們先去找 Lake Street 資本的 Frank Takkinen。市場。

Great. Thanks for taking the questions. I was hoping to start with maybe a little bit more of an update around. NHP was hoping to kind of ask two parts to it. One has to it worked through some of the higher cost nhps throughout the first quarter or do we still have some of that to work through in the remainder of the year and then two, just any update from ordering patterns from customers would be good to hear as well. Thanks.

偉大的。感謝您回答這些問題。我希望能從一些更詳細的更新開始。NHP 希望將其分為兩個部分。一是必須在第一季度解決一些成本較高的 NHP 問題，還是在今年剩餘時間內仍需要解決一些問題；二是，我們希望聽到有關客戶訂購模式的任何更新資訊。謝謝。

Well, going into to the calendar 25 we have worked through all the higher cost in hp at this point. So, I think that that, is passed as far as ordering patterns. We significantly changed. We said we would do last February; we significantly changed our approach this year. Last February, we went into the year without any real commitments and we're selling most on the open market is still fairly volatile.

好吧，進入日曆 25 時，我們已經計算了此時 HP 的所有較高成本。所以，我認為這已經達到了模式排序的程度。我們發生了重大改變。我們說過我們會在去年二月這麼做；今年我們顯著改變了我們的方法。去年二月，我們在沒有任何實際承諾的情況下進入了新的一年，我們在公開市場上銷售的大部分產品仍然相當不穩定。

And then people didn't want to at that point, I wasn't sure whether they wanted to lock into commitments going into this year. His prices normalized a little bit and stayed stable over the last two or three quarters. We do have more solid commitments for this year going into this year. We do know what people's expectations are.

但那時人們不想這樣做，我不確定他們是否想在今年鎖定承諾。他的價格略微正常化並在過去兩三個季度保持穩定。我們對今年確實有更加堅定的承諾。我們確實知道人們的期望是什麼。

We can deliver and they may move a week or two, we'll work with our customers, but what we also do now is we may sell them board so they can, they can board them with us. So that gives us the ability to be a lot less volatile than we have. So, I think we'll be a little more consistent. We could still see as we have in prior years. Things slip in the last, between the quarters.

我們可以送貨，他們可能會在一兩週內搬家，我們會與我們的客戶合作，但我們現在做的也是，我們可能會向他們出售木板，這樣他們就可以和我們一起搬走。這讓我們能夠降低目前的波動性。所以，我認為我們會更加一致。我們仍然可以像前幾年一樣看到。最後，在兩個季度之間，事情發生了變化。

If the large shipments may take place, slip from one, a couple weeks or one month to the next which can shift some things through quarters. But for the most part, as I look at our cash flow and our stability, our volatility, we are going to be much less, and I think we are in a much better position going into this year. I think it'll be, be as significant as we get into Q2, Q3 and Q4 going into this year.

如果可能發生大量的出貨，那麼時間就會從一周、幾週或一個月推遲到下個月，這可能會導致一些事情跨季度發生。但總體而言，當我審視我們的現金流、穩定性和波動性時，我們的損失將會少得多，而且我認為，今年我們的處境會好得多。我認為，當我們進入今年第二季、第三季和第四季時，它將具有同樣重要的意義。

Okay. That's helpful. And then I was hoping I could ask one about the site's development. I know it's a little bit challenging to predict exactly how it's going to go. But with the contemplation of Cambodia and HPS being no longer being able to be exported worldwide, how could that impact your dynamic? I realize it was pushed to, to the following year, but clearly, there's some skepticism around that supply base. So maybe just talk through theoretically how that could impact the global NHP supply demand dynamic.

好的。這很有幫助。然後我希望可以問一個人有關該網站開發的問題。我知道準確預測事情將如何發展有點困難。但是考慮到柬埔寨和 HPS 不再能夠出口到世界各地，這會對您的動態產生什麼影響？我知道它被推遲到了第二年，但顯然，人們對該供應基地有一些懷疑。因此，也許只是從理論上討論一下這將如何影響全球 NHP 供需動態。

Well, obviously Cambodia is an important part of the global supply base and they're still exporting out of Cambodia, I think in the range of 9,000 a year. So if you take that out of the global supply base, that puts a lot of more pressure on what is available from the other existing supply bases. They did have a meeting this week. I think they pushed that decision off. They're going to revisit again probably in November of 25. But right now that, we were ready for, I said we prepared for either, either event.

嗯，顯然柬埔寨是全球供應基地的重要組成部分，而且他們仍然從柬埔寨出口，我認為每年的出口量約為 9,000 輛。因此，如果將其從全球供應基地中剔除，那麼其他現有供應基地的供應將面臨更大壓力。他們本週確實開了會。我認為他們推遲了這項決定。他們大概會在 11 月 25 日再次造訪。但是現在，我們已經做好了準備，我說我們已經為任何一件事做好了準備。

And we have a lot of contracts are for this year on the sales side and buy side and, you know, whatever, whatever the side these people choose to do, we will prepare for. I understand it's, very important, but we can't control that.

我們今年在銷售方和買方都簽訂了很多合同，你知道，無論這些人選擇做哪一方，我們都會做好準備。我知道這非常重要，但我們無法控制它。

We need to be able to adapt. So, we've worked very hard in the last two or three years to diversify the countries, diversify the people we work with to qualify additional suppliers and, and we continue to keep maintain relationships with farms in Cambodia and, and we will, comply with whatever, whatever they decide and, and, and adjust accordingly. But I'm very proud of the team we have how, how they have adjusted, they become much more agile. And I think it's, our customers are looking for ways to reduce risk. And, just with that, the business continues to evolve, we'll evolve with it.

我們必須具備適應能力。因此，在過去的兩三年裡，我們非常努力地實現國家多元化，合作夥伴多元化，以獲得更多的合格供應商，並且我們將繼續與柬埔寨的農場保持聯繫，無論他們做出什麼決定，我們都會遵守並進行相應調整。但我對我們的團隊感到非常自豪，他們已經做出了調整，變得更加敏捷。我認為，我們的客戶正在尋找降低風險的方法。而且，隨著業務的不斷發展，我們也將隨之發展。

Okay. That's helpful.

好的。這很有幫助。

And then just last one for me, I was hoping you could help us out a little bit with maybe adjusted EBITA cadence throughout the year. Heard the comment around staying in compliance with the covenants, but now that we're through some of the higher cost nhps and expecting a gross margin lift. How should we expect that to flow into? Just, but for the fiscal second quarter ended March.

對我來說最後一個問題是，我希望您能幫我們一點忙，例如調整全年的 EBITA 節奏。聽到了關於遵守契約的評論，但現在我們已經通過了一些成本較高的 NHP，並預計毛利率會上升。我們應該期望它如何流入？只是，但針對的是截至三月的第二財政季度。

Well, let's start, I think what we'll see over the year and not giving guidance but for us to hit, those covenants, it's, probably fair as some of you identified in your analyst reports that we have to grow sales, and we expect sales will grow year over year. And I think I alluded to that in my comments. So, seeing sales grow year over year and having just seen that, that quarter, that we finished at lower sales, you can, you can pretty well see that. We think that we will, we have a, we have pretty good Q23 and four.

好吧，讓我們開始吧，我認為我們將在今年看到什麼，而不是給出指導，而是讓我們實現那些承諾，這可能是公平的，正如你們中的一些人在分析師報告中指出的那樣，我們必須增加銷售額，我們預計銷售額將逐年增長。我想我在評論中提到了這一點。因此，看到銷售額逐年增長，並且剛剛看到那個季度我們的銷售額較低，您可以，您可以很好地看到這一點。我們認為我們會的，我們有非常好的 Q23 和 4。

I think if you also say that our original convenance, we were supposed to have a trailing 12 month. I do in December, and I believe is $1.5 million as trailing six months, two quarters, was recovered at 1.6 and we're coming out of this quarter at positive, I believe, closer to eight.

我想，如果您還說我們最初的約定，我們應該有一個過去的 12 個月。我在 12 月做過統計，我認為是 150 萬美元，因為過去六個月、兩個季度的恢復值為 160 萬美元，而本季度我們的恢復值是正值，我相信接近 8 萬美元。

So, we are obviously ahead of where we thought we would be. and pleased with the results. think that the trailing nine months now going into March, I think our company just said, I believe it's a 13.5 F and so, we are pretty good, we are in pretty good shape, and it was, we looked at the ginger quarters. we are fairly bullish compared to where we have the come from.

因此，我們顯然已經超出了我們的預期。並且對結果感到滿意。想想現在進入三月的過去九個月，我想我們公司剛才說，我相信溫度是 13.5 華氏度，所以，我們相當不錯，我們的狀況相當不錯，而且，我們看了姜季度。與我們的過去相比，我們相當樂觀。

We have some great opportunities in front of us with the have done, we have, we have right sized all of our facilities for pretty good economics and that's something we've worked hard in the last two years. So we don't have to worry about as much other than the site consolidation we have going to North America doing a couple sites. We don't worry too much about brick and mortar, the right size. We've done a lot of the integration.

我們面前有一些很好的機會，我們已經完成了，我們已經對所有設施進行了適當規模調整，以實現相當好的經濟效益，這是我們過去兩年來努力工作的事情。因此，除了要進行北美幾個站點的站點整合之外，我們不需要擔心太多事情。我們不會太擔心磚和灰泥是否合適，只要尺寸合適即可。我們已經完成了很多整合工作。

And we started up some new services and expanded some sites. And again, the DSA business as those sites grows, to see some significant margin improvement of those sites. So, I'm excited to see those grow and we saw good growth as I just alluded to and our DT I discovery services and, and some of the service our start up, in the back half of this year.

我們啟動了一些新服務並擴展了一些網站。隨著這些站點的不斷發展，DSA 業務的利潤率也顯著提高。因此，我很高興看到這些業務的成長，正如我剛才提到的，我們看到了良好的成長，我們的 DT I 發現服務以及我們在今年下半年啟動的一些服務。

So, I think we'll see some margin improvement for sure. And we'll see some even though just even the improvement and on the back half of the year, on those, on the increase in sales and, and, and improving margins.

因此我認為我們肯定會看到利潤率提高。我們會看到一些進步，儘管只是在下半年，銷售額會增加，利潤也會提高。

If you would like to ask a question, please press star one on your telephone keypad. Now we move next to Matt Hewitt with Craig Callen Capital Group.

如果您想提問，請按電話鍵盤上的星號 1。現在讓我們來談談 Craig Callen Capital Group 的 Matt Hewitt。

Good afternoon. Thanks for taking the questions and maybe to follow up on one of the things you said earlier, Bob, you kind of noted how there, there tends to be some lumpiness, particularly at the end of quarters with NHP sales. Did you have any of that this quarter? Did, did any of those sales slip out of Q1 into Q2?

午安.感謝您回答這些問題，也許可以跟進您之前說過的一件事，鮑勃，您注意到，NHP 銷售往往會出現一些波動，特別是在季度末。本季您有遇到這種情況嗎？這些銷售額有沒有從第一季下滑到第二季？

we could have some next quarter, and you know, that, when it could swing, three or $4 million of sales very easily. it switches, flips four or five weeks. It could slip six months. We don't have anything like that. It slips four or five weeks or six weeks even.

我們下個季度可能會有一些銷售額，你知道，當銷售額波動時，很容易就能達到300萬或400萬美元的銷售額。它會每隔四到五週切換一次。它可能會推遲六個月。我們沒有那樣的東西。它會推遲四、五週甚至六週。

We are okay with that. So I'm not really worried about that last year was, was a little, a lot of different market I think, than what we see going into this year. Last year people had inventory, they reducing inventory and, and then, this year we even have some deposits going in which back up some of those sales and orders. So again, I think we'll see less volatility. And I think we're doing, hopefully we're doing a good job. We're this year, one of the big differences, we have brick and mortar, we had integration, we have optimization, we have volatility.

我們對此沒有異議。所以我並不擔心，我認為去年的市場與今年的市場有很大不同。去年人們有庫存，他們減少庫存，然後，今年我們甚至存入了一些存款來支持部分銷售和訂單。因此，我認為我們將看到波動性降低。我認為我們正在做，希望我們做得很好。我們今年最大的不同之一是，我們有實體，有整合，有優化，有波動性。

This year, we are taken a lot of that. This year is what we need to focus on is, is customer satisfaction very be very customer driven. We take care of the customer, we are small enough, agile enough, the rest of our business works very well. Economics are set up well, right now what we're doing, we are good people, one of the things that we talk about, but, last year we had some challenges between the DOJ issues and some of the things going on and we probably have some customers that made very nervous in employees. And right now, I am optimistic to see some of those customers returning.

今年，我們就拍了很多這樣的照片。今年我們需要關注的是客戶滿意度是否高度以客戶為導向。我們照顧客戶，我們夠小，夠靈活，我們的其他業務運作良好。經濟狀況良好，現在我們正在做的事情，我們是好人，這是我們談論的事情之一，但是，去年我們在司法部問題和正在發生的一些事情之間遇到了一些挑戰，我們可能有一些客戶讓員工非常緊張。現在，我很高興看到一些顧客回來了。

I see our turnover as low as it's ever been. And that was a challenge here for our industry and, and for our business and because others go through that, I'm really, really pleased with the, with the, with the lower term of our management team to stay together. It gives us a much better opportunity to do a great job for our customers. So, we are going to keep that customer focused, continue to bring them back, continue to make sure we keep our employees satisfied and, and I think the business will take care of itself. don't have all the tail winds that we have going into, a biotech funding that's up 2030 40% right now. expecting that if that happens? That's great.

我發現我們的營業額處於歷史最低水準。這對我們的行業和我們的業務來說都是一個挑戰，因為其他人也經歷過同樣的情況，所以我非常非常高興我們的管理團隊能夠在較短的任期內繼續團結在一起。這為我們提供了更好的機會為客戶提供出色的服務。所以，我們將繼續以客戶為中心，繼續讓他們回頭，繼續確保我們的員工滿意，而且我認為業務將自行照顧好。我們沒有掌握所有的順風，生技資金目前預計 2030 年將成長 40%。如果發生這種情況，您會期待嗎？那太棒了。

Got it and then shifting gears a little bit. The book to bill, and a couple of the other metrics can find kind of been bouncing around a little bit. You know, the one in particular that I wanted to mention was on the cancellations. It seemed like the last couple of quarters, you were seeing some improvement that those cancellations were declining, kind of getting back to a normalized level. It seems like that bounced back up here a little bit is that just a function of what's going on with Pharma companies kind of re prioritizing pipelines and kind of acting quicker on the fill and kill decisions? Or is there some other reason that you saw that that number elevated here in QQ one?

明白了，然後稍微換檔一下。訂單出貨比和其他一些指標似乎有點波動。你知道，我特別想提到的是關於取消的事情。似乎在過去幾個季度裡，你看到了一些改善，這些取消的數量正在減少，有點回到了正常水平。看起來這裡的價格有所回升，這是否只是製藥公司重新確定管道優先級並更快地做出填充和終止決策的結果？還是因為其他原因導致 QQ 一號上的該數字增加？

And I think we saw all day because we had one large project which, about $4 million that got canceled and that, that's, and so over $4 million and that's significant to us. So large, we have large P OS if one project cancels, it's significant and so one project can make a difference. And usually we don't have those large projects to be canceled this quarter.

我想我們整天都在關注，因為我們有一個大約 400 萬美元的大項目被取消了，所以，這超過 400 萬美元，這對我們來說意義重大。規模如此龐大，如果一個專案取消，我們就會有很大的P OS，這是很重大的，所以一個專案可以產生影響。通常我們本季不會取消那些大型專案。

We had an anomaly, we did have a large project that they canceled the, drove that, that book to bill number down or would have been positive. And then, so again, I'm not overly worried about it. Because that, I think there was one that we'll see every once in a while like that. But hopefully, we don't have a lot of those out there typically.

我們遇到了一個異常情況，我們確實有一個大項目，但他們取消了它，導致訂單出貨量下降，否則將會是正數。所以，我再說一遍，我並不太擔心這件事。因為，我認為我們偶爾會看到這樣的事。但我們希望，通常不會出現很多這樣的情況。

I think what if you can't take away that? We were really pleased, we made a lot of change with sales organization a year ago on how we approach discovery, translational sciences and even a little bit of safety assessment. And seeing that the 14 and 15% of growing awards for the, for the three months of Q1 and discovery for me as a, it's a pretty good green shoot. We're looking for that, where we, where we expect to go. But that's something that we've seen year over year decline for several years. And that's, that's a pretty important business. It's very high, high cost structure. We have a lot of leverage. There was increase in sales. A lot of those can go to our, lot large percent that goes to the bottom line. So, I wasn't great, all the cancellations with Eco was discouraging. I was, I think I probably had more files and takeaways from the quarter. Because I think that was a one off one large project that really drove that make cancellation number. I got it.

我想如果你不能拿走它怎麼辦？我們真的很高興，一年前我們對銷售組織做出了許多改變，改變了我們處理發現、轉化科學甚至一點安全評估的方式。並且看到第一季三個月的 14% 和 15% 的成長獎和發現，對我來說，這是一個相當不錯的綠芽。我們正在尋找我們期望去的地方。但我們看到這現象幾年來一直在逐年下降。這是一項非常重要的業務。它的成本結構非常高。我們擁有很大的影響力。銷量增加。其中很大一部分可以歸於我們的利潤，很大一部分歸於我們的底線。所以，我做得不太好，所有與 Eco 有關的取消都令人沮喪。我認為我可能在本季度獲得了更多的文件和收穫。因為我認為那是一個真正推動取消數量增加的大型專案。我得到了它。

Got it. All right. One last one for me and then I'll hop back into queue, but as you look at the remainder of this year, and given some of your success with some of the newer tests or services that have been rolled out here recently, do you envision rolling out some additional services over the course of this year or is it more about just selling more of your existing portfolio? Thank you.

知道了。好的。最後一個問題，然後我會重新回到隊列中，但展望今年剩餘的時間，考慮到你們最近推出的一些新測試或服務所取得的成功，你是否計劃在今年推出一些額外的服務，還是只是銷售更多現有的產品組合？謝謝。

We and that will continue to be very customer driven if our, if our customers are looking for additional service and we're outsourcing what we feel that we can do a better job. We will consider that right now. We're not, we, I want our focus to be on our customers and delighting and meeting and exceeding those expectations and really improve the communication. I think we have, a lot of good services. They allow us to grow some sites and be a little more sophisticated and you know, so we're, but they're not significant. We're buying new equipment or hiring people. What we are doing is we're training and making sure our people are, are trained to do these things and they are really improving. So they are not the new ones where I need new brick and mortar, new technology. It's really training and, and expanding upon what we have in place.

如果我們的客戶需要額外的服務，而我們認為可以做得更好的服務，那麼我們就會外包，我們將繼續以客戶為中心。我們現在就考慮這個問題。我們不是，我們希望我們的重點放在我們的客戶身上，取悅、滿足和超越他們的期望，並真正改善溝通。我認為我們提供了很多優質服務。它們使我們能夠發展一些網站，並且使其更加複雜，你知道，所以，但它們並不重要。我們正在購買新設備或僱用人員。我們正在做的是培訓，確保我們的人員接受了這些培訓，並且他們確實在進步。所以它們不是我需要新磚新瓦和新技術的新產品。這實際上是一種訓練，並且擴展了我們現有的內容。

Okay, great. Thank you.

好的，太好了。謝謝。

If you had a question, we would go next to David Winley with Jeffries.

如果您有問題，我們接下來會與 Jeffries 一起採訪 David Winley。

Hi, good afternoon. Thanks for taking my questions. Wanted to understand the accounting revenue recognition cadence on presales of inventory. Are these essentially commitments are you, is this a transaction that, that triggers Revrec in the first quarter when you presell inventory?

嗨，下午好。感謝您回答我的問題。想要了解庫存預售的會計收入確認節奏。這些本質上是您的承諾嗎？

No, we don't recognize any revenue until the, a transition of ownership. So, we don't recognize revenue of, orders when they come in. It's only after they are sold, and transaction is completed.

不，在所有權轉移之前我們不會確認任何收入。因此，當訂單到來時我們無法確認收入。只有在它們被出售並且交易完成之後才會發生。

when you say you are preselling inventory, you have the or you have more orders in hand than you did entering last fiscal year, but those have materialized in sales.

當您說您正在預售庫存時，您手頭上的訂單量比上個財年開始時的多，但這些訂單已經轉化為銷售。

That is correct. It may have orders, signed and we may have deposits but not revenue recognition correspondingly, we also have probably more deposits out with our suppliers. So, we have bought further in advance, and we have sold further in advance.

正確。可能有訂單，有簽約，可能有定金，但相應地沒有收入確認，我們可能也向供應商支付了更多的定金。因此，我們提前買入了更多，也提前賣出了更多。

okay case of so maybe invoking then the Colony Management services to understand correctly, the way you are saying that I would guess that in those cases, the client has bought the animal and you're boarding them and, and title has changed hands. Is that right?

好的，那麼也許可以調用殖民地管理服務來正確理解，你所說的方式我猜在這些情況下，客戶已經購買了動物並且你正在寄養它們並且所有權已經易手。是嗎？

Yes, if we are boarding for and then the title have specific and we would be boarding.

是的，如果我們登機並且標題有具體說明我們就會登機。

Can you give me a sense of proportion? Like how much, how much of your RMS revenue is calling or Colony management services are in RMS. Is that right? And then how much of RMS revenue colony management services represent.

你能給我一點比例感嗎？例如，您的 RMS 收入中有多少來自通話，或是殖民地管理服務有多少來自 RMS。是嗎？那麼殖民地管理服務佔 RMS 收入的多少呢？

May have been in the range of $17 million and I don't think we ever given these numbers before, but if they can do it publicly last year was, probably closer to $27 million.

可能在 1700 萬美元左右，我認為我們以前從未給出過這些數字，但如果他們去年能夠公開的話，可能接近 2700 萬美元。

And I think we will see that grow another 20% as we go forward. So, I think it is some customers and large Pharma and all above looking to make sure they reduce the risk by owning these fees, but they may not have a place to store, but they would like to buy and make sure that they have access and reduce their risk and their volatility. And so, we need to make sure that we are setting up our business to be able to comply, to help them reduce their risk also.

我認為，隨著我們繼續前進，這一數字將再成長 20%。因此，我認為一些客戶和大型製藥公司等都希望透過承擔這些費用來降低風險，但他們可能沒有地方存儲，但他們希望購買並確保能夠獲得併降低風險和波動性。因此，我們需要確保我們的業務設定能夠遵守規定，以幫助他們降低風險。

Do you have plenty of, I don't know if the animals even have to be moved but like for colony management, do you have to have a dedicated space? I presume this is in Alice, Texas. But do you have plenty of, plenty of room to, to grow that business without kind of design?

你有足夠的嗎？我推測這是在德克薩斯州的艾莉絲。但是，如果沒有設計的話，你是否有足夠的空間來發展業務？

And that's a very good question. We have about 700 acres down there. We have built up and invested quite a bit in the last couple of years. In and in the transportation and, and, and roads and water, sewer, hospitals, veterinary support, things that the infrastructure, commissary, things that the infrastructure you need to have to have a support for the colonies. Now we are, we are building out, brick and mortar places to, to do boarding and indoor-outdoor facilities with heating, improving heating and air flow and water and what not. We have been pretty much at full capacity for the last couple of years and then, and so as we have been able to expand to increase the revenue. And so expansion dollars are going this year.

這是一個非常好的問題。我們在那裡有大約700英畝的土地。在過去的幾年裡，我們已經累積並投入了相當多的資金。在交通、道路、水、下水道、醫院、獸醫支援、基礎設施、小賣部以及為殖民地提供支援所需的基礎設施方面。現在我們正在建造一些實體場所，用於提供住宿和配有暖氣設施的室內外設施，改善暖氣、空氣流通和供水等等。過去幾年我們基本上一直滿載運轉，因此我們得以擴張來增加收入。因此，今年的擴張資金將會流出。

Understood.

明白了。

we have perspective. Have 700 acres and up 700 acres. We are probably using about 250.

我們有遠見。有700英畝以上700英畝。我們可能使用了大約 250 個。

On your NHP sourcing comments. So, you are through the high-cost inventory. Should we think of the move now to be kind of a step function down or is it more of a glide path over the next couple of quarters to a lower cost level?

關於您的 NHP 採購評論。這樣，您就處理完了高成本的庫存。我們是否應該認為現在的舉措是一種逐步下降的過程，還是在接下來的幾個季度中，這是一種下滑的過程，從而降低成本水平？

Higher costs and fees and the pricing is set for next year. So, I think we will see that more of a step. And we will see you know, increase increasing sales each quarter.

成本和費用將會提高，並且價格將於明年確定。所以，我認為我們將看到更大的進步。我們會看到，每季的銷售額都在增加。

Okay. And then last one for me on the, I mean, it does sound like the DS a gross bookings were, kind of meaningfully better sequentially.

好的。然後對我來說最後一個問題是，我的意思是，聽起來 DS 的總預訂量確實比上一季有顯著的提高。

And then you have this, this one large cancellation.

然後你就有了這個，這個大的取消。

Can you talk to us about the mix of that type of services are they wanting to engage you on? I think if I remember correctly, your DS A business does not have a lot of NHP related services. So, I think you would tell me that it's mostly rodent studies, but I love any additional colour on what the kind of the profile of those improving bookings picture looks like. Thank you.

您能否與我們談談他們希望您參與的服務類型組合？我想如果我沒記錯的話，你的 DS A 業務沒有很多與 NHP 相關的服務。所以，我想你會告訴我這主要是囓齒動物的研究，但我喜歡任何關於這些改善預訂情況的概況的附加色彩。謝謝。

Well, our DS a backlog and customers are, 90%, 95%, 96% bytes.

嗯，我們的 DS 積壓和客戶分別是 90%、95%、96% 位元組。

So that, you know, that's what we look for is the mix between large farm and biotech. It is biotechs we are getting for some of the unique services, we have genetic technology in some of our discovered work. At the moment, we may see some increase in work from large Pharma, but for the most part is is biotech focused as far as different, service. I think we again that some of the services that we built up the biotherapeutics and the genetic toxicology, we are seeing some and, and ETS right now we saw some pretty good awards last quarter. Those are unique.

所以，你知道，我們所尋找的是大型農場和生物技術的結合。我們正在利用生物技術來提供一些獨特的服務，我們在一些發現的工作中運用了基因技術。目前，我們可能會看到大型製藥公司的工作增加，但就不同服務而言，大部分還是以生物技術為重點。我認為，我們再次看到了我們在生物療法和遺傳毒理學方面建立的一些服務，而 ETS 現在我們在上個季度看到了一些相當不錯的獎項。這些都是獨一無二的。

We have a good, scientific team there. And those have been very helpful. Yeah, I think there, general safety assessment, the general safety assessment. Again, we like to lead with science and, and, and work with customers, we identified in the discovery stage and that's starting to happen. But that that probably is still fairly flat to down as far as because their capacity in the market and people don't need to still book that, that far in advance.

我們那裡有一支優秀的科學團隊。這些都非常有幫助。是的，我認為有一般安全評估，一般安全評估。再次強調，我們喜歡以科學為先導，並與客戶合作，我們在發現階段就已確定這一點，而這已經開始發生了。但由於他們的市場容量以及人們不需要提前那麼久預訂，這一數字可能仍將保持平穩或下降。

We are also seeing an increasing amount of some of the things I outlined as blanket purchase orders come in because people want to move very quickly and gain their confidence. They have used us a little bit in the past, but now they're giving us more meaningful blanket purchase orders so we can move quick more quickly with them and work and in hand with them to partner with them more than we have in the past. That's very encouraging.

我們也看到，我概括的某些綜合採購訂單數量正在增加，因為人們希望迅速採取行動，贏得信任。他們過去曾與我們有過一些合作，但現在他們給了我們更有意義的綜合採購訂單，以便我們能夠更快地與他們合作，與他們攜手並進，比過去建立更多的合作夥伴關係。這非常令人鼓舞。

So, I think for the Commodity Safety Assessment, probably not as I think they are still flags and, and still if we can lead with science, it's good. But if the, if some of the other specialty services and science that we've been working on it, we are probably seeing more, more growth. And again, as I said, discovering translational sciences would be a nice, would be nice for us to see that growth.

因此，我認為對於商品安全評估來說，可能並非如此，因為我認為它們仍然是旗幟，如果我們能夠以科學為先導，那就很好了。但是如果我們一直致力於研究其他一些專業服務和科學，我們可能會看到更多的成長。正如我剛才所說，發現轉化科學將是一件好事，我們很高興能看到這種成長。

Helpful. Thank you.

很有幫助。謝謝。

It appears we have no further questions at this time. I will now turn the program back over to Mr Bob Leasure for any additional or closing remarks.

目前看來我們沒有其他問題了。現在我將節目交還給鮑伯·利熱爾先生，請他發表任何補充意見或結束語。

Thank you everyone for joining todays call. We are very pleased with the events and results of this past quarter that indicated made progress towards reducing our revenue volatility, improving our cash flow and liquidity. I think going forward, we will continue building imitative as a high touch, flexible provider with strong scientific capabilities that is focused on our clients' needs positive environment for employees to have a career and grow and generate positive returns for our shareholders. We will continue to pay attention to the details.

感謝大家參加今天的電話會議。我們對上個季度的事件和結果感到非常滿意，這表明我們在降低收入波動、改善現金流和流動性方面取得了進展。我認為，展望未來，我們將繼續將 Immediate 打造成一家高接觸、靈活的供應商，擁有強大的科學能力，專注於客戶的需求，為員工提供積極的職業環境，讓他們能夠成長並為股東創造積極的回報。我們將繼續關注細節。

Thank you. And ladies and gentlemen, that does conclude today's program. Thank you for your participation. You may disconnect at any time.

謝謝。女士們、先生們，今天的節目到此結束。感謝您的參與。您可以隨時斷開連線。