Nortech Systems Inc (NSYS) 2026 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Nortech Systems Inc first-quarter 2026 earnings call. 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. (Operator Instructions) And the call will be opened for questions and comments following the management presentation.

各位女士、先生，下午好，歡迎參加 Nortech Systems Inc 2026 年第一季財報電話會議。今天與我同線的有總裁兼執行長 Jay Miller，以及財務長暨財務資深副總裁 Andrew LaFrence。（接線員指示）管理階層簡報結束後，將開放提問與意見交流。

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

此刻，我很榮幸將電話交給 Andy LaFrence。

Thank you, Mike. I would also like to welcome everyone to today's conference call. Jay will begin the call with a review of our operations, recent developments and business outlook. Then I will review Nortech's First quarter 2026 financial results before turning it back to Jay for his closing comments, then we will open up the call for your questions.

謝謝你，Mike。我也歡迎各位參加今天的電話會議。Jay 將先就我們的營運、近期發展與業務展望進行回顧。接著我將說明 Nortech 2026 年第一季的財務結果，然後再交回給 Jay 做結語，之後我們將開放各位提問。

Before we continue, please note statements made during this call may be forward-looking regarding expected net sales, operating results, future plans, opportunities and other company expectations. 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, and may be amended, and those risks, including those detailed in our most recent SEC filings may be amended or supplemented.

在繼續之前，請注意本次電話會議中所作之陳述可能包含前瞻性資訊，涉及預期淨銷售額、營運結果、未來計畫、機會及公司其他預期。這些估計、計畫及其他前瞻性陳述包含未知與已知之風險與不確定性，可能導致實際結果與本次電話會議中明示或暗示者有重大差異，且可能被修訂；相關風險（包括我們最近向 SEC 提交之文件中所詳述者）亦可能被修訂或補充。

The statements made during this 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. You can find Nortech's complete safe harbor statement in our SEC filings.

本次電話會議中的陳述係以 Nortech 於本次電話會議日期與時間所知之資訊為基礎，我們不承擔更新今日電話會議資訊之任何義務。您可在我們向 SEC 提交的文件中找到 Nortech 完整的安全港聲明。

And with that, I will turn the call over to Jay for his opening comments. Jay?

那麼，我將把電話交給 Jay 發表開場談話。Jay？

Thank you, Andy, and good afternoon, everyone. We're glad you could join us today. The first quarter is our fourth consecutive quarter of positive operating and EBITDA results, reflecting the positive execution of our strategic restructuring initiatives in late 2024 and early 2025. This contributed to a $1.7 million improvement in income from operations in the first quarter of 2026 as compared with the same quarter in 2025.

謝謝你，Andy，各位下午好。很高興各位今天能加入我們。第一季是我們連續第四個季度呈現正向的營運與 EBITDA 結果，反映我們在 2024 年底與 2025 年初推動之策略性重整措施執行成效良好。與 2025 年同季相比，這使 2026 年第一季的營業利益改善了 170 萬美元。

We continue to see positive trends in several operating performance indicators, including gross margins, cost management, quality and customer backlog. During the quarter, we continued the trend of increased manufacturing efficiencies across customer programs transferred to more geographically desirable plants which are driving planned sustained performance improvements as we experienced a continued positive mix shift from new product introduction first builds to recurring production.

我們持續在多項營運績效指標上看到正向趨勢，包括毛利率、成本管理、品質與客戶訂單積壓（backlog）。本季我們延續趨勢，將客戶專案轉移至地理位置更具優勢的工廠後，製造效率持續提升，帶動規劃中的、可持續的績效改善；同時，隨著產品組合持續由新產品導入（NPI）首批生產轉向例行量產，我們也經歷了持續的正向組合轉移。

We believe our quality metrics are world-class, especially within the low-volume, high-mix market space, where we believe we are head and shoulders better than our competitors. Gross margins increased 410 basis points in the first quarter of 2026 as compared with the first quarter of 2025.

我們相信我們的品質指標達到世界級水準，尤其在低量、高混合（low-volume, high-mix）的市場領域，我們認為相較競爭對手明顯領先。2026 年第一季毛利率較 2025 年第一季提高 410 個基點。

Our customer backlog continues to be a bright spot as confirmed purchase orders grow. We increased our backlog as of May 31, 2026 to $90.8 million, an increase of 17.4% from year-end 2025 and a 37.9% increase from the end of 2024. The increase is occurring against the backdrop of several customers ordering with shorter lead times. We have implemented just-in-time finished product delivery strategies with several large customers who have requested much shorter lead times.

隨著已確認採購訂單增加，我們的客戶訂單積壓持續是一大亮點。截至 2026 年 5 月 31 日，我們的 backlog 提升至 9,080 萬美元，較 2025 年底增加 17.4%，較 2024 年底增加 37.9%。在多位客戶以更短交期下單的背景下仍能成長。我們已與數家大型客戶導入即時化（just-in-time）的成品交付策略，以回應其要求大幅縮短交期。

These programs allow customers to order in small quantities based on long-term binding forecasts which have produced the delivery time in many, of many items from over 100 days to 20 days or less. I would further note that we are seeing signs of strength in our aerospace and defense customers given the current geopolitical climate. These factors contribute to the long, to the strong positive trend in the backlog and has created an opportunity to expand our direct labor at several facilities to handle the increasing workload.

這些專案讓客戶可依據具約束力的長期預測，以小批量下單，並使許多品項的交付時間由 100 天以上縮短至 20 天或更短。我也要補充，在目前地緣政治情勢下，我們在航太與國防客戶方面看到需求走強的跡象。這些因素共同促成 backlog 長期且強勁的正向趨勢，並在多個據點創造擴增直接人力以因應增加工作量的機會。

Andy and I, along with the rest of the Nortech leadership team, I'm proud of the hard work and execution by our employees. I would also like to highlight an very important accomplishment in March. We entered into new agreements with Associated Bank for a $2.2 million term note and a $15 million asset-backed line of credit.

我與 Andy 以及 Nortech 領導團隊的其他成員，對員工的努力與執行成果深感自豪。我也想強調 3 月一項非常重要的成就：我們與 Associated Bank 簽訂新協議，包括 220 萬美元的定期票據（term note）以及 1,500 萬美元的資產擔保循環信用額度（asset-backed line of credit）。

We believe that this new asset-backed debt structure and banking arrangement is more flexible and more closely matches our business model. This new relationship will lower our borrowing costs and provides a three-year arrangement to support our business growth. We continue to see strong quoting activity as many of our customers evaluating nearshore manufacturing strategies for both North America and Asia.

我們相信新的資產擔保負債架構與銀行安排更具彈性，也更貼近我們的商業模式。這段新的合作關係將降低我們的借款成本，並提供為期三年的安排以支持業務成長。隨著許多客戶評估北美與亞洲的近岸製造（nearshore manufacturing）策略，我們持續看到強勁的報價活動。

We believe we are currently very well positioned with our North American footprint as our Monterrey, Maquiladora operations and Minnesota facilities work under the framework of the U.S.-Mexico-Canada agreement or USMCA for short. While the tariff environment remains uncertain, including tariffs with Mexico, it is important to note that Nortech is not the importer of record in the United States goods produced in Mexico as we operate under Maquiladora structure for our customers.

我們認為，憑藉北美的據點布局，我們目前處於非常有利的位置；我們的蒙特雷（Monterrey）Maquiladora 營運與明尼蘇達州設施，皆在《美國－墨西哥－加拿大協定》（USMCA）架構下運作。雖然關稅環境仍不明朗（包括與墨西哥相關的關稅），但重要的是要指出：對於在墨西哥生產並進入美國的貨品，Nortech 並非美國的進口登記人（importer of record），因為我們是以 Maquiladora 架構為客戶營運。

This materially reduces our direct exposure to these tariffs. In situations where we incur tariffs on imported components, we are working with our customers to pass these costs through. More recently, we are closely monitoring the recent Supreme Court decision regarding the validity of IEEPA tariffs and the process for reimbursement of these tariffs.

這將大幅降低我們對這些關稅的直接曝險。在我們因進口零組件而產生關稅的情況下，我們正與客戶合作將這些成本轉嫁。近期我們也密切關注最高法院就 IEEPA 關稅有效性所作的最新裁決，以及這些關稅的退款流程。

All in all, we are working hard and have all hands on deck to proactively monitoring the shifting landscape, trade policies and uncertainties in the current geopolitical environment.

總體而言，我們正全力以赴，主動監測不斷變動的局勢、貿易政策，以及當前地緣政治環境中的各項不確定性。

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

接下來，我將把電話交給 Andy，請他更深入說明我們的財務結果。Andy？

Thank you, Jay. I'll provide a brief overview of Nortech's financial performance for the first quarter ended March 31, 2026. Additional details are available in our Form 8-K earnings release and our Form 10-Q filed yesterday with the Securities and Exchange Commission. As we've discussed previously, quarterly results can be influenced by the timing of customer shipments, production schedules and working capital movements.

謝謝你，Jay。我將簡要概述截至 2026 年 3 月 31 日止第一季的 Nortech 財務表現。更多細節可參閱我們的 Form 8-K 財報新聞稿，以及昨日向美國證券交易委員會（SEC）提交的 Form 10-Q。如同先前所討論，季度結果可能會受到客戶出貨時點、生產排程與營運資金變動的影響。

While those factors persist, our execution and longer-term strategy are gaining traction as we move through 2026, consistent with Jay's comments earlier in the call. Net sales for the first quarter of 2026 were $30.3 million, an increase of $3.4 million or 12.7% compared with $26.9 million in the first quarter of 2025. Growth was led by Aerospace and Defense, where sales increased 41.2% year-over-year, following customer approvals and production transfers from Blue Earth to Bemidji. Medical imaging sales increased 15%, driven by higher volumes from existing customers, while medical device sales increased 10.4% as production normalized following our 2025 facility optimization. Industrial sales were relatively flat year-over-year.

儘管這些因素仍然存在，隨著我們在 2026 年持續推進，我們的執行力與長期策略正逐步展現成效，與 Jay 先前在會議中的評論一致。2026 年第一季淨銷售額為 3,030 萬美元，較 2025 年第一季的 2,690 萬美元增加 340 萬美元或 12.7%。成長主要由航太與國防帶動，該領域銷售額在客戶核准及產能自 Blue Earth 轉移至 Bemidji 後，年增 41.2%。醫療影像銷售額增加 15%，主要受既有客戶出貨量提升帶動；醫療器材銷售額增加 10.4%，係因 2025 年廠區優化後生產恢復常態。工業類銷售額與去年同期大致持平。

Gross profit totaled $4.7 million compared with $3.1 million in the prior year period, and gross margin improved to 15.5% up 410 basis points compared with 11.4% last year.

毛利合計 470 萬美元，較去年同期的 310 萬美元增加；毛利率提升至 15.5%，較去年的 11.4% 提高 410 個基點。

Margin improvement reflected higher plant utilization manufacturing efficiency gains from our restructuring actions completed in 2025 and operating leverage on higher sales volume. Total operating expenses of $4.7 million were relatively flat year-over-year. The prior year included $266,000 of restructuring charges. As a result, we reported operating income of $47,000 compared with an operating loss of $1.6 million in the prior year period, representing a $1.7 million year-over-year improvement.

毛利率改善反映工廠稼動率提升、我們於 2025 年完成之重整行動所帶來的製造效率提升，以及在較高銷售量下的營運槓桿效益。營業費用合計 470 萬美元，與去年同期大致持平。去年同期包含 266,000 美元的重整費用。因此，我們報告營業利益 47,000 美元，相較去年同期營業損失 160 萬美元，年增改善 170 萬美元。

Net interest expense was $256,000 compared with $214,000 last year primarily driven by the write-off of $82,000 of unamortized debt issuance costs relating to the refinancing completed during the quarter. Reported a net loss of $34,000 or $0.01 per share compared with a net loss of $1.3 million or $0.48 per share in the first quarter of 2025. Cash used in operating activities was $1.6 million, an improvement compared with a usage of $2.9 million in the prior year period. At quarter end, cash and restricted cash totaled $2.2 million.

淨利息費用為256,000美元，較去年同期的214,000美元增加，主要係本季完成再融資所致，並沖銷與該再融資相關之未攤銷債務發行成本82,000美元。淨損為34,000美元（每股0.01美元），相較於2025年第一季淨損130萬美元（每股0.48美元）。營運活動使用現金為160萬美元，較去年同期使用290萬美元有所改善。季末現金及受限制現金合計為220萬美元。

Our revolving line of credit balance was $7.2 million and we had approximately $3.5 million of availability, borrowing capacity under our new associated bank facility. Adjusted EBITDA for the first quarter of 2026 was $350,000 compared with an adjusted EBITDA loss of $1 million in the first quarter of 2025, reflecting the positive results of our strategic plant level customer program shifts and related restructurings in late 2024 and early 2025.

我們的循環信用額度餘額為720萬美元，且在新的關聯銀行融資安排下，約有350萬美元的可用額度／借款能力。2026年第一季調整後EBITDA為350,000美元，相較於2025年第一季調整後EBITDA虧損100萬美元，反映出我們於2024年末及2025年初在策略性工廠層級客戶方案轉移及相關重整所帶來的正面成果。

As Jay highlighted earlier, our increased backlog provides strong visibility into future revenue and supports a positive development for 2026, with improving margins and stronger operating profile, a more flexible capital structure, we believe Nortech is well positioned to continue building momentum throughout the year.

如Jay先前所強調，我們增加的在手訂單（backlog）為未來營收提供了強勁的可視性，並支持2026年的正向發展；隨著毛利改善與更強健的營運體質，以及更具彈性的資本結構，我們相信Nortech已具備良好條件，可在全年持續累積動能。

With that, I will turn it back over to Jay for his closing remarks. Jay?

接下來，我把時間交還給Jay作結語。Jay？

Thanks, Andy. Before we open the call to your questions, I want to highlight it once again, three related areas that together serve our customers and help advance Nortech's corporate stewardship, Nortech's engineering expertise, product innovation focus, and sustainability plans.

謝謝，Andy。在我們開放提問之前，我想再次強調三個相互關聯的領域；這三者共同服務我們的客戶，並協助推進Nortech的企業責任：Nortech的工程專業、產品創新聚焦，以及永續計畫。

As for engineering expertise, we have a dedicated engineering services team focused on optimizing manufacturability, serviceability, supply chain risk mitigation and cost efficiency for our customers. Our three-tier cost structure across the U.S., Mexico and China allows us to quickly adopt our global engineering resources to fit our customers' changing needs.

在工程專業方面，我們有一支專責的工程服務團隊，聚焦於為客戶最佳化可製造性、可維修性、供應鏈風險緩解與成本效率。我們在美國、墨西哥與中國的三層成本結構，使我們能迅速調度全球工程資源，以因應客戶不斷變化的需求。

Our core goal of our long-term strategic plan focuses on unique innovation. Nortech's engineering capabilities and innovation skills advance our research and development activities to solve the most complex challenges our customers face with technologies that are ruggedized, lighter, faster, more sustainable and more affordable.

我們長期策略計畫的核心目標聚焦於獨特創新。Nortech的工程能力與創新技能推動我們的研發活動，透過更耐用（ruggedized）、更輕、更快、更永續且更具成本效益的技術，解決客戶所面臨最複雜的挑戰。

Nortech's technology is engineered to provide connectivity solutions to address three areas of concern for our customers. First, there is a need for ruggedization. Nortech's fiber optic technology stands up in harsh environments, such as the types of conditions commonly found in aerospace and defense applications.

Nortech的技術旨在提供連接解決方案，以回應客戶關注的三個面向。第一，是對耐用化（ruggedization）的需求。Nortech的光纖技術可在嚴苛環境中運作，例如航太與國防應用中常見的條件。

This is an old fiber optic technology. Today's fiber optic technology is much more resilient. To ensure high performance in today's applications Nortech's engineering team has rigorously tested and demonstrated the fiber optic cable can withstand twisting, bending and torque while achieving exceptional data integrity and data transfer speeds under rugged conditions.

這是一項較早期的光纖技術。如今的光纖技術更具韌性。為確保在當今應用中的高效能，Nortech的工程團隊已嚴格測試並證明該光纖電纜在耐用條件下可承受扭轉、彎折與扭矩，同時達到卓越的資料完整性與資料傳輸速度。

Most of the cables we produce today are for aerospace and defense application. Cables are traditional. Cable is common in legacy defense systems, such as shipboard missile launchers for the Navy. In conversations with our aerospace and defense customers, we are increasingly, we see increasing interest in more modern warfare components such as ruggedized fiber optics, MT38999 connectors, which would be applied in wearable technology and tethered drones among others.

我們目前生產的大多數電纜用於航太與國防應用。電纜是傳統產品；在既有的國防系統中很常見，例如海軍艦載飛彈發射器等。在與航太與國防客戶的交流中，我們愈來愈常看到他們對更現代化的作戰元件有更高興趣，例如耐用化光纖、MT38999連接器等，這些可應用於穿戴式技術與繫留式無人機等領域。

Second, our customers need a means to enable connected devices and sensors to collect PARS transmit and receive data to the cloud in order to apply the data effectively in decision-making. Nortech's Digital Diagnostics Xtreme and SkyIoT technology platforms integrate digital diagnostics with fiber optic cables to generate real-time cable and system performance data.

第二，客戶需要一種方式，使連網裝置與感測器能收集PARS、傳送並接收資料至雲端，以便在決策中有效運用這些資料。Nortech的Digital Diagnostics Xtreme與SkyIoT技術平台，將數位診斷與光纖電纜整合，以產生即時的電纜與系統效能資料。

These digital diagnostic systems advance our customers' ability to monitor their systems and devices and to evolve from preventative maintenance to predictive maintenance to minimize downtime and costs.

這些數位診斷系統提升客戶監控其系統與裝置的能力，並使其從預防性維護進一步演進至預測性維護，以降低停機時間與成本。

Third, our customers require technology that is physically lighter, faster and more sustainable. As copper prices continue to increase, fiber optic cable presents a clear alternative that is much more cost effective and substantially cleaner to produce.

第三，客戶需要在物理特性上更輕、更快且更永續的技術。隨著銅價持續上升，光纖電纜提供了一個明確的替代方案，不僅更具成本效益，且生產過程也顯著更潔淨。

Nortech is well positioned to capitalize on this increasing interest with our advanced fiber optic capabilities. Our technologies align perfectly with the industry's move in favor of more efficient and reliable fiber optic solutions to provide EMI immune high data speed transmission and power delivery, all in one hybrid cable.

憑藉我們先進的光纖能力，Nortech已具備良好條件把握這股日益升溫的興趣。我們的技術與產業朝向更高效率、更可靠的光纖解決方案之趨勢完全契合，可在單一混合電纜中同時提供抗EMI的高速資料傳輸與電力傳輸。

Nortech's power over fiber technology reduces overall cable weight while providing EMI immunity and shielding by transmitting power over optical fiber cable. Nortech eliminates the need for a separate local power source in the cables that are used in medical devices and imaging were electromagnetic interference or EMI, must be minimized. Additionally, in satellites, aircraft or military systems, fiber can deliver powered, isolated or shielded components where EMI is also concerned.

Nortech的光纖供電（power over fiber）技術透過光纖電纜傳輸電力，在提供抗EMI與屏蔽的同時降低整體電纜重量。Nortech消除了醫療器材與影像設備所使用電纜對獨立本地電源的需求，因為在這些應用中必須將電磁干擾（EMI）降至最低。此外，在衛星、飛機或軍用系統中，光纖也可為需要供電、隔離或屏蔽的元件提供電力，而這些場景同樣關注EMI。

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

如今，這些資料愈來愈常透過人類智慧進行評估與分析，並結合人工智慧與人類智慧，以提升效能與資料管理，服務我們的客戶以及客戶的客戶。

For Nortech, we see AI capabilities as a clear opportunity to streamline and improve our processes, make our employees more productive and serve our customers better. To put a finer point on it, we are making a point of allocating resources and dedicating time to continue to build the AI skills of our employees in all functions to make better products, of course, but also to make us all more productive.

對Nortech而言，我們將AI能力視為一個明確的機會，可精簡並改善流程、提升員工生產力，並更好地服務客戶。更具體地說，我們正著重於配置資源並投入時間，持續在各職能培養員工的AI技能；當然是為了打造更好的產品，但也為了讓我們每個人都更有效率。

With our intellectual property and fiber optic and digital technologies, Nortech is well aligned with projected future demand for fiber products. When compared with traditional copper, fiber optics offer dramatic environmental benefits during both production and operations, including improved energy efficiency and less material usage while significantly decreasing the carbon footprint of the complex cables we manufacture.

憑藉我們的智慧財產與光纖及數位技術，Nortech與未來預期的光纖產品需求高度契合。相較於傳統銅材，光纖在生產與運作兩個階段都具備顯著的環境效益，包括提升能源效率、減少材料使用，並大幅降低我們所製造複雜電纜的碳足跡。

We're also taking a forward-looking stance on materials, shifting focus from copper to fiber to mitigate cost pressures and align with our long-term strategy to produce ruggedized, lighter, faster, more sustainable and more affordable technology.

我們也以前瞻角度看待材料，將重點從銅轉向光纖，以緩解成本壓力，並與我們長期策略一致，打造更耐用、更輕、更快、更永續且更可負擔的技術。

In closing, we are excited about technological developments across all of our markets and expect them to support our continued sales momentum in 2026 and beyond, aided by stabilization in supply chain and customer orders.

最後，我們對各市場的技術發展感到振奮，並預期在供應鏈與客戶訂單趨於穩定的助力下，這些發展將支持我們在2026年及其後持續的銷售動能。

As we wrap up our prepared remarks, let me summarize key takeaways from today's call. First, we are operationally and financially realizing positive results from our restructuring activities in 2024 and early 2025.

在結束我們的準備發言時，讓我總結今天電話會議的重點。第一，我們在營運與財務面正逐步實現2024年及2025年初重整活動所帶來的正面成果。

Second, we remain optimistic about our positioning and nearshoring landscape. Third, we are seeing benefits of our strategy with an increase in backlog over the past several quarters. And finally, we are making investments in innovative and unique technologies, the skills of our people, including AI skills and the regulatory capabilities to leverage future growth.

第二，我們對自身定位與近岸外包（nearshoring）環境仍保持樂觀。第三，過去幾季在手訂單增加，顯示我們策略正在帶來效益。最後，我們正投資於創新且獨特的技術、人才技能（包括AI技能），以及法規能力，以掌握未來成長。

We will now open the call for your questions. Operator, please open the lines.

我們現在開放提問。接線員，請開放線路。

The floor is now open for questions. (Operator Instructions) We do not currently have any questions in the queue. (Operator Instructions) Thank you for joining our call today. You may disconnect your lines at this time, and have a good afternoon.

現在開放提問。（接線員指示）目前隊列中沒有任何提問。（接線員指示）感謝您今天參與我們的電話會議。您現在可以掛斷電話線，祝您下午愉快。