Nortech Systems Inc (NSYS) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Nortech Systems Incorporated second-quarter 2024 earnings conference call.

早安，女士們、先生們，歡迎參加 Nortech Systems Incorporated 2024 年第二季財報電話會議。

With me on the line today are Jay Miller, President and Chief Executive Officer; and Andrew LaFrence, Chief Financial Officer and Senior Vice President of Finance.

今天和我一起通話的是總裁兼執行長傑伊·米勒 (Jay Miller)；財務長兼財務高級副總裁安德魯‧拉弗朗斯 (Andrew LaFrence)。

(Operator Instructions)

（操作員說明）

At this time, it is my pleasure to turn the call over to Mr. Andy LaFrence.

此時，我很高興將電話轉給安迪·拉弗倫斯先生。

Sir, the floor is yours.

先生，地板是你的了。

Thank you, Ali.

謝謝你，阿里。

I would also like to welcome everyone to today's conference call.

我還要歡迎大家參加今天的電話會議。

Jay will begin the call with a review of our operations, recent developments and business outlook.

傑伊將在電話會議開始時回顧我們的營運、近期發展和業務前景。

Then I will review Nortech's second-quarter 2024 financial results before turning it back to Jay for his closing comments.

然後我將回顧 Nortech 的 2024 年第二季財務業績，然後將其轉回給 Jay 進行總結評論。

Then we will open up the call for your questions.

然後我們將開通電話詢問您的問題。

Before we continue, please note that statements made during this call may be forward-looking statements regarding expected net sales, earnings, future plans, opportunities and other company expectations.

在我們繼續之前，請注意，本次電話會議期間發表的聲明可能是有關預期淨銷售額、收益、未來計劃、機會和其他公司預期的前瞻性聲明。

These estimates, plans and other forward-looking statements involve unknown and known risks and uncertainties that may cause actual results to differ materially from those expressed or implied on this call.

這些估計、計劃和其他前瞻性陳述涉及未知和已知的風險和不確定性，可能導致實際結果與本次電話會議中明示或暗示的結果有重大差異。

These risks, including those that are detailed in our most recent SEC filings, may be amended or supplemented.

這些風險，包括我們最近向 SEC 提交的文件中詳細說明的風險，可能會被修改或補充。

The statements made during this conference call are based upon information known by Nortech as of the date and time of this call and we assume no obligation to update the information in today's call.

本次電話會議期間發表的聲明基於 Nortech 截至本次電話會議日期和時間已知的信息，我們不承擔更新今天電話會議中的信息的義務。

You can find Nortech's complete safe harbor statements in our SEC filings.

您可以在我們向 SEC 提交的文件中找到 Nortech 完整的安全港聲明。

And with that, I'll turn it over to Jay for his opening comments.

接下來，我將把它交給傑伊，讓他發表開場白。

Jay?

傑伊？

Thank you, Andy, and good morning, everyone.

謝謝你，安迪，大家早安。

We're glad you could join us today.

我們很高興您今天能加入我們。

In the second quarter of 2024, we continued to manage operating expenses as we faced near-term customer order headwinds and incremental training and other costs to transfer customer programs between various North American facilities.

2024 年第二季度，我們繼續管理營運費用，因為我們面臨近期客戶訂單的不利因素以及增量培訓和在北美各個設施之間轉移客戶項目的其他成本。

Regarding revenues, we are noting in the recent months reduced visibility to customer orders as compared with order patterns in the prior year quarters as medical and industrial customers in particular are balancing their inventories, and therefore pushing or deferring the placement of some orders.

關於收入，我們注意到，與去年各季度的訂單模式相比，近幾個月來客戶訂單的可見性有所下降，因為醫療和工業客戶特別是在平衡庫存，因此推遲或推遲了一些訂單的下達。

In the case of certain medical customers, we're also seeing the timing of product launches being delayed.

對於某些醫療客戶，我們也發現產品發佈時間被延後。

We continue to see strong ordering patterns from our aerospace and defense customers.

我們繼續看到航空航太和國防客戶的強勁訂購模式。

We're also noting positive customer engagement as the normalization of supply chains focuses customers to further accelerate nearshoring.

我們也注意到，隨著供應鏈的正常化，客戶進一步加速近岸外包，客戶積極參與。

This combined with other shorter lead time and on-time delivery strategies and better overall customer service results in deeper customer partnerships, which are fundamental to our long-term growth strategy.

這與其他更短的交貨時間和準時交貨策略以及更好的整體客戶服務相結合，可以建立更深入的客戶合作夥伴關係，這是我們長期成長策略的基礎。

In short, in the first half of 2024, we have made conscious decisions to face into some clear market dynamics and make a number of short-term sacrifices in exchange for improved long-term growth and profitability, including the facility consolidation and investment in business development I will touch on shortly.

簡而言之，2024年上半年，我們做出了有意識的決定，面對一些明確的市場動態，並做出一些短期犧牲，以換取長期增長和盈利能力的改善，包括設施整合和業務投資我將很快談到發展。

Regarding our cost structure, we continue to be very diligent managing our operating costs.

關於我們的成本結構，我們繼續非常努力地管理我們的營運成本。

With an eye for long-term optimization of our facilities, in the second quarter we announced the consolidation of our Blue Earth facility into our Bemidji factory by the end of the year and a 30% reduction in our Maple Grove leased space.

著眼於我們設施的長期優化，我們在第二季宣佈在年底前將 Blue Earth 設施整合到伯米吉工廠，並將 Maple Grove 租賃空間減少 30%。

These facility optimization activities will result in at least $1.6 million in annual savings in 2025 and beyond.

這些設施優化活動將在 2025 年及以後每年節省至少 160 萬美元。

Over the past several years, we have taken a number of steps to invest in core infrastructure and a world-class leadership team to drive our long-term growth strategy.

在過去的幾年裡，我們採取了一系列措施投資核心基礎設施和世界一流的領導團隊，以推動我們的長期成長策略。

We are very bullish on the future of Nortech and continue to make investments to accelerate long-term growth.

我們非常看好 Nortech 的未來，並將繼續進行投資以加速長期成長。

For example, we have now completed staffing in industry-specific business development team.

例如我們現在已經完成了產業業務開發團隊的人員配置。

This team is performing at a very high level and driving impressive quote and new business opportunities.

團隊的表現非常高，並推動了令人印象深刻的報價和新的商機。

Further, we are taking advantage of the changes in supply chain dynamics to seamlessly restructure our operations to better serve our customers by delivering high quality products and services on time with shorter lead times.

此外，我們正在利用供應鏈動態的變化來無縫重組我們的運營，透過在更短的交貨時間內按時提供高品質的產品和服務來更好地服務我們的客戶。

This will also facilitate and drive our long-term growth.

這也將促進和推動我們的長期成長。

This process is a natural evolution of our business and entails changes in the organizational structure to enhance customer intimacy and not a restructuring of our employee headcount.

這個過程是我們業務的自然演變，需要改變組織結構以增強客戶親密度，而不是重組我們的員工人數。

I continue to be impressed by how our employees live out Nortech's values of teamwork, excellence, commitment, innovation, and integrity every day.

我們的員工每天如何實踐 Nortech 的團隊合作、卓越、承諾、創新和誠信價值觀，給我留下了深刻的印象。

Once again, the whole Nortech team deserves our sincere appreciation.

Nortech 整個團隊再次值得我們真誠的讚賞。

Our three-tier global strategy of manufacturing in the US, Mexico, and China gives Nortech customers flexibility in improving our own competitiveness.

我們在美國、墨西哥和中國的三層全球製造策略為 Nortech 客戶提供了提高自身競爭力的靈活性。

We can move production around based on factors like cost, operational requirements, including ever-improving on-time delivery of high-quality products and shorter lead times and intellectual property management.

我們可以根據成本、營運要求等因素轉移生產，包括不斷改進的高品質產品的準時交付和更短的交貨時間以及智慧財產權管理。

Our customer teams and engineers evaluate each customer's needs to determine the most suitable location, which may also change over the course of a product's life cycle.

我們的客戶團隊和工程師評估每個客戶的需求以確定最合適的位置，這也可能在產品生命週期的過程中發生變化。

In terms of China, as I've mentioned on past calls, much of our production work there is built in country for country, a nearshoring approach to better serve our customers in the global market, including reduced shipping costs and time.

就中國而言，正如我在過去的電話會議中提到的那樣，我們在那裡的大部分生產工作都是在一個國家一個國家進行的，這是一種近岸方式，可以更好地服務全球市場的客戶，包括降低運輸成本和時間。

Next I'll turn it over to Andy for a more in-depth look at our financial results.

接下來我將把它交給安迪，讓他更深入地了解我們的財務表現。

Andy?

安迪？

Thank you, Jay.

謝謝你，傑伊。

In the next few minutes, I will provide certain details of our financial performance in the second quarter of 2024.

在接下來的幾分鐘內，我將提供 2024 年第二季財務業績的某些詳細資訊。

I would encourage you to also review our Form 8-K containing our press release and non-GAAP measures issued earlier this morning with the US Securities and Exchange Commission.

我鼓勵您也查看我們的 8-K 表格，其中包含我們的新聞稿和今天早上早些時候與美國證券交易委員會發布的非公認會計準則措施。

As a continued theme, we have historically noted that our individual quarterly performance can be affected by outside factors.

作為一個持續的主題，我們歷來注意到我們個人的季度業績可能會受到外部因素的影響。

These might include timing fluctuations, including seasonable fluctuations, customer shipments, supply chain issues.

這些可能包括時間波動，包括季節性波動、客戶出貨、供應鏈問題。

Any of these could materially impact a particular quarter either positively or negatively.

其中任何一個都可能對特定季度產生重大影響，無論是積極還是消極。

Consequently, we believe it is more appropriate to view the business on a 12-month basis rather than focus on quarterly performance.

因此，我們認為以 12 個月為基礎來審視業務比關注季度業績更為合適。

This approach will help normalize these potential anomalies and offer a better gauge of our strategy's long-term success.

這種方法將有助於使這些潛在的異常現象正常化，並更好地衡量我們策略的長期成功。

So today while I'll focus most of my comments on our second-quarter and year-to-date 2024 results, I will provide some comparisons for the 12-month period ended June 30, 2024, compared with the same period ended June 30, 2023.

因此，今天，雖然我的大部分評論將重點放在2024 年第二季度和年初至今的業績上，但我將提供截至2024 年6 月30 日的12 個月期間與截至6 月30 日的同期的一些比較，2023。

Net sales for the second quarter of 2024 totaled $33.9 million.

2024 年第二季淨銷售額總計 3,390 萬美元。

This represents a 3.2% decrease to net sales of $35 million in the second quarter of 2023.

這意味著 2023 年第二季的淨銷售額為 3,500 萬美元，下降了 3.2%。

For the six months ended June 30, 2024, net sales were $68.1 million as compared to $69.9 million in the same prior year period, a decrease of 2.6%.

截至 2024 年 6 月 30 日的六個月，淨銷售額為 6,810 萬美元，較上年同期的 6,990 萬美元下降 2.6%。

As Jay noted, we experienced reduced net sales from our medical customers as they are aggressively reducing their inventory investments.

正如傑伊指出的那樣，我們的醫療客戶的淨銷售額減少了，因為他們正在積極減少庫存投資。

We have also noted several medical product introductions being pushed out to later in 2024 or into 2025.

我們也注意到一些醫療產品的推出被推遲到 2024 年稍後或 2025 年。

We continue to see strong revenue growth in our aerospace and defense category as well as moderate gains in our industrial customers.

我們繼續看到航空航太和國防類別的收入強勁成長，以及工業客戶的適度成長。

Further, as Jay noted in his remarks, we have realized a reduction in customer backlog in the second quarter of 2024 as customers have changed their purchasing patterns and are requesting shorter lead times with new orders.

此外，正如 Jay 在演講中指出的那樣，我們已經意識到 2024 年第二季度的客戶積壓有所減少，因為客戶改變了採購模式，並要求縮短新訂單的交貨時間。

Second quarter of 2024 gross profit totaled $4.6 million or 13.6% of net sales compared with gross profit of $5.5 million or 15.6% of net sales in the same prior year quarter.

2024 年第二季的毛利總計 460 萬美元，佔淨銷售額的 13.6%，而去年同期毛利為 550 萬美元，佔淨銷售額的 15.6%。

For the first six months of 2024, we realized gross profit of $10.1 million or 14.8% of net sales as compared with $11 million or 15.7% of net sales in the first six months of 2023.

2024 年前 6 個月，我們實現毛利 1,010 萬美元，佔淨銷售額的 14.8%，而 2023 年前 6 個月實現毛利 1,100 萬美元，佔淨銷售額的 15.7%。

Reduction in gross margin percentage in the 2024 periods is largely due to lower net sales and result in reduced facility utilization and, to a lesser extent, incremental training costs related to the movement of Blue Earth production to Bemidji by the end of 2024.

2024 年期間毛利率下降的主要原因是淨銷售額下降並導致設施利用率降低，以及在較小程度上由於到 2024 年底將 Blue Earth 生產轉移到伯米吉相關的培訓成本增加。

Operating expenses for the second quarter and the first six months of 2024 are marginally lower than the prior year periods as a result of lower incentive compensation accruals and expense management, which offset increased payroll costs.

由於應計激勵薪酬和費用管理減少，抵銷了工資成本的增加，2024 年第二季和前六個月的營運費用略低於去年同期。

Further, the 2024 periods reflect $91,000 of restructuring costs related to retention bonuses and other costs associated with the upcoming Blue Earth closure.

此外，2024 年期間反映了 91,000 美元的與保留獎金相關的重組成本以及與即將到來的 Blue Earth 關閉相關的其他成本。

The closure of our Blue Earth facility in the second half of 2024 is on schedule and going well.

我們的 Blue Earth 工廠將於 2024 年下半年關閉，一切按計畫進行，進展順利。

We now estimate the Blue Earth closing will result in a restructuring cash charge of between $750,000 and $850,000 in 2024.

我們現在估計 Blue Earth 的關閉將導致 2024 年重組現金費用在 75 萬至 85 萬美元之間。

We currently do not anticipate any significant noncash impairment charges related to this closure.

我們目前預計不會出現與此次關閉相關的任何重大非現金減損費用。

We expect to pay substantially all of the restructuring costs in 2024.

我們預計將在 2024 年支付大部分重組成本。

As we previously disclosed, we expect to realize annual savings starting in 2025 of at least $1.6 million annually related to the optimization of our Minnesota facilities.

正如我們之前所揭露的，我們預計從 2025 年開始，與明尼蘇達州設施的優化相關的每年至少可節省 160 萬美元。

Moving to the cash flow statement.

轉到現金流量表。

For the first six months ended June 30, 2024, net cash used in operating activities totaled $1.5 million as compared with cash provided of $281,000 in the same period in 2023.

截至 2024 年 6 月 30 日的前六個月，經營活動使用的現金淨額總計 150 萬美元，而 2023 年同期提供的現金為 281,000 美元。

While the timing of customer and vendor payments impacted operating cash flow for the period, we have purposely increased inventory levels in anticipation of the Blue Earth facility transition to Bemidji.

雖然客戶和供應商付款的時間影響了該期間的營運現金流，但我們有意增加庫存水平，以應對 Blue Earth 設施過渡到伯米吉的情況。

As noted in our press release distributed this morning, we use earnings before interest, tax, depreciation and amortization or EBITDA as a key performance indicator to manage our business.

正如我們今天早上發布的新聞稿中所指出的，我們使用息稅折舊攤提前利潤或 EBITDA 作為管理我們業務的關鍵績效指標。

In the press release, we have provided a reconciliation of our financial performance determined in accordance with the US generally accepted account principles and EBITDA.

在新聞稿中，我們提供了根據美國公認會計原則和 EBITDA 確定的財務績效調節表。

For the quarter ended June 30, 2024 as adjusted for restructuring charges, EBITDA was $919,000 as compared with $1.6 million for the same period in 2023.

截至 2024 年 6 月 30 日的季度，經重組費用調整後，EBITDA 為 919,000 美元，而 2023 年同期為 160 萬美元。

Year-to-date 2024 adjusted EBITDA is $2.6 million as compared with $3.2 million in the first six months of 2023.

2024 年迄今調整後 EBITDA 為 260 萬美元，而 2023 年前六個月為 320 萬美元。

The decreased adjusted EBITDA is a result of lower net sales and related gross profit.

調整後 EBITDA 下降是由於淨銷售額和相關毛利下降。

Turning to the balance sheet.

轉向資產負債表。

As of June 30, 2024, cash and cash equivalents totaled $1.5 million, down from $1.7 million as of December 31, 2023.

截至 2024 年 6 月 30 日，現金及現金等價物總額為 150 萬美元，低於截至 2023 年 12 月 31 日的 170 萬美元。

The fluctuation in cash balances reflects timing of cash receipts, expenditures in line of credit borrowings.

現金餘額的波動反映了信用借款中現金收入和支出的時間。

We ended the second quarter of 2024 with $6.6 million of borrowing capacity under our line of credit.

截至 2024 年第二季末，我們的信貸額度下的借款能力為 660 萬美元。

Accounts receivable as of June 30, 2024, were $17.6 million, down from $19.3 million as of December 31, 2023.

截至2024年6月30日的應收帳款為1,760萬美元，低於截至2023年12月31日的1,930萬美元。

This is in line with our strong fourth-quarter sales and the expected timing of customer payments.

這與我們強勁的第四季度銷售和客戶付款的預期時間一致。

Inventories were $22.8 million as of June 30, 2024, as compared with $21.7 million as of December 31, 2023.

截至 2024 年 6 月 30 日，庫存為 2,280 萬美元，而截至 2023 年 12 月 31 日，庫存為 2,170 萬美元。

The increase in inventory reflects the buildup of inventory balances in anticipation of completing our movement of Blue Earth production to our Bemidji facility.

庫存的增加反映出庫存餘額的積累，以期完成將 Blue Earth 生產轉移到伯米吉工廠的工作。

Our contract asset, which represents revenue earned but not yet billed to customers, increased slightly to $15 million as of June 30, 2024, as compared with $14.5 million at the end of 2023.

截至 2024 年 6 月 30 日，我們的合約資產（代表已賺取但尚未向客戶開立帳單的收入）小幅增加至 1,500 萬美元，而 2023 年底為 1,450 萬美元。

The increase reflects the timing of customer shipments.

這一增長反映了客戶發貨的時間。

As we disclosed in our press release issued earlier today, we have presented non-GAAP results including trailing 12-month financial data and EBITDA.

正如我們在今天早些時候發布的新聞稿中披露的那樣，我們公佈了非 GAAP 業績，包括過去 12 個月的財務數據和 EBITDA。

For the trailing 12-month period ended June 30, 2024, net sales were $137.5 million as compared with $140.8 million in the same 12-month period ended June 30, 2023.

截至 2024 年 6 月 30 日止的過去 12 個月期間，淨銷售額為 1.375 億美元，而截至 2023 年 6 月 30 日止的同一 12 個月期間淨銷售額為 1.408 億美元。

In addition, adjusted EBITDA for the 12-month period ended June 30, 2024, was $7.3 million as compared with $6.8 million for the 12-month period ended June 30, 2023.

此外，截至2024年6月30日的12個月期間的調整後EBITDA為730萬美元，而截至2023年6月30日的12個月期間的調整後EBITDA為680萬美元。

As we stated in May, our top priorities in 2024 remain unchanged.

正如我們在 5 月所說，我們 2024 年的首要任務保持不變。

First, we are extremely focused on continuing to strengthen our balance sheet.

首先，我們非常注重繼續加強我們的資產負債表。

Next we will take further advantage of opportunities to align our operations and infrastructure with market demand that we are seeing to deliver sustainable long-term EBITDA growth as well as driving improvements in free cash flow.

接下來，我們將進一步利用機會，使我們的營運和基礎設施與市場需求保持一致，我們希望實現可持續的長期 EBITDA 成長，並推動自由現金流的改善。

Coupled with disciplined lean operations, execution, expense management, and R&D innovation, we believe Nortech can deliver on our objectives.

加上嚴格的精實營運、執行、費用管理和研發創新，我們相信 Nortech 能夠實現我們的目標。

With that, I will turn it back to Jay for his closing comments.

至此，我將把它轉回給傑伊，讓他發表結束語。

Jay?

傑伊？

Thanks, Andy.

謝謝，安迪。

Before we open the call to your questions, I want to touch on three related areas that together serve our customers and help advance Nortech's corporate stewardship: our engineering expertise, product innovation, and sustainability plans.

在我們開始回答大家的問題之前，我想談談三個相關領域，它們共同為我們的客戶提供服務並幫助推進 Nortech 的企業管理：我們的工程專業知識、產品創新和永續發展計畫。

For engineering expertise, we have a dedicated engineering services team that is focused on enhancing manufacturability and serviceability, supply chain risk mitigation, and cost efficiency for our customers.

在工程專業知識方面，我們擁有專門的工程服務團隊，專注於為客戶提高可製造性和可維護性、緩解供應鏈風險和成本效率。

Earlier in this call, I mentioned the benefits of our three-tier cost structure across the US, Mexico, and China and how we can quickly adopt our global resources to fit our customers' changing needs.

在本次電話會議的早些時候，我提到了我們在美國、墨西哥和中國的三層成本結構的好處，以及我們如何快速利用我們的全球資源來滿足客戶不斷變化的需求。

Nortech's engineering capabilities also further our research and development activities with advancements like the Expanded Beam Xtreme fiber optic technology, or EBX, that we announced in January.

Nortech 的工程能力也透過我們在一月宣布的 Expanded Beam Xtreme 光纖技術 (EBX) 等先進技術進一步推動了我們的研發活動。

EBX is designed for digital data transmission and offers improved speed, reliability and security when compared to traditional copper.

EBX 專為數位資料傳輸而設計，與傳統銅纜相比，速度、可靠性和安全性均已提高。

We are also excited about our Active Optical Xtreme technology that works in sophisticated magnetic environments, a testament to our team's dedication to innovation, hard work, and excellence in the field of digital connectivity solutions.

我們也對能夠在複雜的磁性環境中工作的 Active Optical Xtreme 技術感到興奮，這證明了我們團隊在數位連接解決方案領域致力於創新、努力和卓越的精神。

AOX represents a significant advancement in our product offerings and underscores our commitment to providing state-of-the-art solutions that meet the evolving needs of our clients to deliver products that offer lighter weight, lower cost and ruggedized solutions sustainably.

AOX 代表了我們產品的重大進步，並強調了我們致力於提供最先進的解決方案，滿足客戶不斷變化的需求，以可持續地提供重量更輕、成本更低和堅固耐用的解決方案。

At the simplest level, the vast majority of Nortech's products provide digital connectivity solutions that transmit data and power in various applications.

從最簡單的層面來看，Nortech 的絕大多數產品都提供在各種應用中傳輸資料和電力的數位連接解決方案。

As you may know, the Internet of Things or IoT integrates a variety of electronic components like microcontrollers, sensors, actuators and connectivity modules.

如您所知，物聯網整合了各種電子元件，如微控制器、感測器、執行器和連接模組。

These components in turn enable IoT connected devices to collect, parse, transmit and receive data.

這些元件反過來使物聯網連接設備能夠收集、解析、傳輸和接收資料。

More and more today that data is being evaluated and analyzed using human intelligence and combined artificial and human intelligence for improved performance and data management for our customers as well as for their customers.

如今，越來越多的數據使用人類智慧進行評估和分析，並將人工智慧和人類智慧相結合，以改善我們的客戶及其客戶的效能和數據管理。

More data needs better data pipelines and that's where Nortech comes in.

更多數據需要更好的數據管道，這就是 Nortech 的用武之地。

Technology like our EBX smart cables helps collect and distribute this data faster, more cost effectively and more securely across these sophisticated networks.

我們的 EBX 智慧電纜等技術有助於在這些複雜的網路中更快、更經濟、更安全地收集和分發這些資料。

We see strong opportunities for growth.

我們看到了巨大的成長機會。

For example, industrial IoT applications are expected to experience impressive double-digit annual growth from 2023 to 2030 according to Fortune Business Insights.

例如，根據《財富商業洞察》的預測，從 2023 年到 2030 年，工業物聯網應用預計將實現令人印象深刻的兩位數年成長。

Our pivot to more fiber optic technology improves product performance for our customers by offering unparalleled speed and reliability.

我們轉向更多光纖技術，透過提供無與倫比的速度和可靠性來提高客戶的產品性能。

It also aligns with sustainability goals we share with many of those customers.

它也符合我們與許多客戶共同的永續發展目標。

When compared with traditional copper, fiber optics offers significant environmental benefits during both production and operation, including improved energy efficiency and less material usage while decreasing the carbon footprint in the complex cables we manufacture.

與傳統銅纜相比，光纖在生產和營運過程中具有顯著的環境效益，包括提高能源效率和減少材料使用，同時減少我們製造的複雜電纜的碳足跡。

For example, aerospace and defense customers are adopting fiber optic technology due to these key advantages; reduced size, weight and power requirements; immunity to electromagnetic interference; and greater ruggedization in harsh environments.

例如，由於這些關鍵優勢，航空航太和國防客戶正在採用光纖技術；減少尺寸、重量和功率需求；抗電磁幹擾；以及在惡劣環境下更加堅固耐用。

Harsh environments of course are very common in aerospace and defense applications.

當然，惡劣環境在航空航太和國防應用中非常常見。

Nortech has a proud history of serving these customers' unique needs dating back roughly 30 years.

Nortech 在滿足這些客戶的獨特需求方面擁有令人自豪的歷史，其歷史可以追溯到大約 30 年前。

It's the smallest of our three core markets by net sales, but very important for our diversification and future growth.

以淨銷售額計算，這是我們三個核心市場中最小的一個，但對我們的多元化和未來成長非常重要。

Our contributions to our national defense are also a great source of pride for Nortech employees.

我們對國防的貢獻也是 Nortech 員工的一大驕傲。

The majority of our aerospace and defense cables are still the traditional black rounded and molded type common and legacy defense systems such as shipboard missile launches for the Navy.

我們的大多數航空航天和國防電纜仍然是傳統的黑色圓形和模壓型通用和傳統防禦系統，例如海軍的艦載導彈發射系統。

But we are looking to the future with ruggedized fiber optics and evolving along with our customers.

但我們正在透過堅固耐用的光纖展望未來，並與客戶一起發展。

In closing, we are excited about technological developments across all our markets and expect them to support our continued sales momentum in 2024 aided by stabilization in supply chain and customer orders.

最後，我們對所有市場的技術發展感到興奮，並期望在供應鏈和客戶訂單穩定的幫助下，它們將支持我們 2024 年持續的銷售動能。

Last month IPC cited improving outlook among global electronics manufacturers with stronger demand and shipments reported in January.

上個月，IPC 表示，全球電子製造商的前景有所改善，一月份的需求和出貨量報告強勁。

Our progress over recent quarters confirms that outlook.

我們最近幾季的進展證實了這個前景。

We will now open up the call for your questions.

我們現在將開放式電話詢問您的問題。

Ali, please open the lines.

阿里，請打開線路。

(Operator Instructions) We currently have no questions in queue at this time.

（操作員說明）目前我們在隊列中沒有任何問題。

So I'll hand it back to Mr. Miller.

所以我會把它還給米勒先生。

Thank you, Ali, and thanks to everyone for joining us today.

謝謝阿里，也謝謝大家今天加入我們。

We look forward to talking with you in November when we report our third-quarter 2024 results.

我們期待在 11 月報告 2024 年第三季業績時與您交談。

Again, thank you and goodbye.

再次謝謝你，再見。

Thank you.

謝謝。

This concludes today's call and you may disconnect your lines at this time.

今天的通話到此結束，此時您可以斷開線路。

And we thank you for your participation.

我們感謝您的參與。