OSI Systems Inc (OSIS) 2025 Q1 法說會逐字稿

Thank you for standing by and welcome to the OSI Systems first quarter 2025 conference call. (Operator Instructions) Again as a reminder, today's program is being recorded.

感謝您的耐心等待並歡迎參加 OSI Systems 2025 年第一季電話會議。（操作員指示）再次提醒您，今天的節目正在錄製中。

Now I'd like to introduce your host for today's program. Alan Edrick, Executive Vice President and Chief Financial Officer of OSI. Please go ahead, sir.

現在我想介紹一下今天節目的主持人。艾倫‧埃德里克 (Alan Edrick)，OSI 執行副總裁兼財務長。請繼續，先生。

Well, thank you. Good morning and thank you for joining us. As said, I'm Alan Edrick, Executive Vice President and CFO of OSI Systems. And I'm here today with Deepak Chopra, OSI's President and CEO. Welcome to the OSI Systems fiscal '25 first quarter conference call. We are pleased that you can join us as we review our financial and operational results.

嗯，謝謝。早安，感謝您加入我們。如前所述，我是 OSI Systems 執行副總裁兼財務長 Alan Edrick。今天我和 OSI 總裁兼執行長 Deepak Chopra 一起來到這裡。歡迎參加 OSI Systems '25 財年第一季電話會議。我們很高興您能加入我們，共同審查我們的財務和營運績效。

Earlier today, we issued a press release announcing our fiscal '25 first quarter financial results. Before we discuss these results however, I would like to remind everyone that today's discussion will include forward-looking statements and the company wishes to take advantage of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to such forward-looking statements. All forward-looking statements made on this call are based on currently available information and the company undertakes no obligation to update any forward-looking statement based on subsequent events or new information or otherwise.

今天早些時候，我們發布了一份新聞稿，宣布了 25 財年第一季的財務表現。然而，在我們討論這些結果之前，我想提醒大家，今天的討論將包括前瞻性陳述，公司希望利用 1995 年《私人證券訴訟改革法案》中關於此類前瞻性陳述的安全港條款聲明。本次電話會議中所做的所有前瞻性陳述均基於目前可用的信息，本公司不承擔根據後續事件或新資訊或其他情況更新任何前瞻性陳述的義務。

During today's call, we will refer to both GAAP and non-GAAP financial measures when describing the company's results. For further information regarding non-GAAP measures and comparable GAAP measures of the company's results and a quantitative reconciliation of those figures, please refer to today's earnings press release.

在今天的電話會議中，我們在描述公司績效時將參考公認會計原則和非公認會計原則財務指標。有關公司業績的非公認會計準則衡量標準和可比公認會計準則衡量標準以及這些數據的定量調節的更多信息，請參閱今天的收益新聞稿。

I will begin with a high-level summary of our financial performance for the first quarter of fiscal 2025, and then turn the call over to Deepak for a discussion of our business and our operational performance. We will then finish with more detail regarding our financial results and a discussion of our updated outlook for fiscal year '25.

我將首先對 2025 財年第一季的財務業績進行高級總結，然後將電話轉給迪帕克，討論我們的業務和營運業績。然後，我們將詳細介紹我們的財務業績，並討論我們的 25 財年最新展望。

Following our fiscal '24 financial performance featuring record revenues and non-GAAP EPS, we started fiscal '25 by posting record Q1 financial results, led by the security division resulting in robust year-over-year revenue growth and a significant increase in year-over-year operating income. We are encouraged by the momentum reflected in our Q1 financial performance.

繼我們的24 財年財務業績達到創紀錄的收入和非GAAP 每股收益之後，我們在安全部門的帶領下發布了創紀錄的第一季度財務業績，從而實現了同比強勁的收入增長和同比大幅成長。我們對第一季財務業績所反映的動能感到鼓舞。

So I'll start with a high level summary of our fiscal '25 Q1 results. First, revenues increased 23% year over year to a Q1 record of $344 million, driven by the performance in our security division where Q1 revenues were up 36% year over year. Second, the significant revenue growth led to record Q1 non-GAAP adjusted earnings per share of a $1.25. Third, bookings were again solid, and we ended the quarter with a backlog of approximately $1.8 billion.

因此，我首先對我們 25 年第一季的財務表現進行高度總結。首先，在安全部門業績的推動下，第一季營收年增 23%，達到創紀錄的 3.44 億美元，第一季營收年增 36%。其次，營收的顯著成長導致第一季非 GAAP 調整後每股收益達到創紀錄的 1.25 美元。第三，預訂量再次穩定，本季末我們的積壓訂單約為 18 億美元。

Our health care back -- excuse me, our healthy backlog and a robust pipeline of opportunities provide good visibility going forward. Fourth, we completed a convertible debt financing in July, raising gross proceeds of $350 million which reduced our weighted average cost of borrowings and was immediately accretive. Concurrent with this transaction, we repurchased approximately 531,000 shares of our common stock. And finally, in September, we completed a strategic bolt on acquisition in our security division. While we acquired business to not significantly enhance our Q1 revenues, this deal is expected to be accretive to fiscal '25 non-GAAP earnings per share.

我們的醫療保健支援—對不起，我們健康的積壓工作和強大的機會管道為未來提供了良好的可見性。第四，我們在 7 月完成了可轉換債務融資，籌集了 3.5 億美元的總收益，降低了我們的加權平均借款成本，並立即增值。在本次交易的同時，我們回購了約 531,000 股普通股。最後，在 9 月份，我們完成了安全部門的策略性收購。雖然我們收購的業務不會顯著提高我們第一季的收入，但預計這筆交易將增加 25 財年非公認會計原則每股收益。

Before diving more deeply into our financial results and discussing the updated fiscal '25 outlook, I will turn the call over to Deepak.

在更深入地探討我們的財務表現並討論更新後的 25 財年展望之前，我將把電話轉給 Deepak。

Thank you, Alan, and good morning to everybody and afternoon. I'm pleased with the company's robust fiscal 2025 first quarter performance.

謝謝你，艾倫，祝大家早安，下午好。我對該公司 2025 財年第一季的強勁業績感到滿意。

As Alan mentioned, we achieved an impressive 23% revenue growth leading to a higher year-over-year operating margin. We closed the quarter with a backlog near all-time high of $1.8 billion and are optimistic about the remainder of fiscal 2025 and beyond.

正如 Alan 所提到的，我們實現了 23% 的令人印象深刻的營收成長，從而帶來了更高的年營業利潤率。本季結束時，我們的積壓訂單接近 18 億美元，接近歷史最高水平，並對 2025 財年剩餘時間及以後的情況持樂觀態度。

So let's dive into the performance and highlights of each of our three divisions for the first quarter, beginning with the security division, where Q1 revenues were up 36% year over year, resulting in increased operating profits. Also, security bookings were solid. During the quarter, we continue to deliver on important border security initiatives with Mexico's defense agency, SEDENA, on the $500 million-plus contract and with the other international customer on the $200 million contract.

因此，讓我們深入了解我們三個部門第一季的業績和亮點，首先是安全部門，該部門第一季營收年增 36%，從而帶來了營業利潤的成長。此外，安全預訂也很穩定。本季度，我們繼續與墨西哥國防機構 SEDENA 簽訂價值 5 億多美元的合同，並與其他國際客戶簽訂價值 2 億美元的合同，實施重要的邊境安全措施。

In addition, shortly after the quarter end, we announced the commencement of operations of turnkey screening services in Uruguay, utilizing our cargo and vehicle inspection systems along with our proprietary search integration platform. We will also provide on this contract, ongoing management training, equipment maintenance, and support as part of the Uruguay contract. The Uruguay program now joins a list of our long standing successful multi-year turnkey projects in Puerto Rico, Albania, and Guatemala, and serves as further evidence for potential customers of the breadth of our capabilities to manage large scale security programs in various parts of the world.

此外，在季度結束後不久，我們宣布利用我們的貨物和車輛檢查系統以及我們專有的搜尋整合平台，開始在烏拉圭運營統包安檢服務。作為烏拉圭合約的一部分，我們還將根據該合約提供持續管理培訓、設備維護和支援。烏拉圭計畫現已加入我們在波多黎各、阿爾巴尼亞和瓜地馬拉長期成功的多年交鑰匙計畫的行列，並為潛在客戶進一步證明了我們在管理世界各地大規模安全計畫的能力。

During Q1, we had several wins in security and announced these during the quarter. First, a $17 million international order to provide Eagle P60 high-energy drive through cargo and vehicle inspection systems and P60 trailer-mounted vehicle inspection systems including maintenance, service, and support. Second, a $26 million services order from an international customer to maintain and service its existing installed base of cargo and vehicle inspection systems.

在第一季度，我們在安全方面取得了幾項勝利，並在本季度宣布了這些成果。首先是價值 1,700 萬美元的國際訂單，提供 Eagle P60 高能量驅動式貨物和車輛檢查系統以及 P60 拖車式車輛檢查系統，包括維修、服務和支援。其次，來自國際客戶的價值 2,600 萬美元的服務訂單，用於維護和服務其現有的貨物和車輛檢查系統安裝基地。

Third, a $10 million order from yet another international customer to provide the Z Backscatter van, ZBV mobile cargo and vehicle inspection systems, including training, service, and support. And finally, domestically, we announced a contract order of about $27 million for maintenance, services, and technology support, what is installed base of rapper scan cargo and vehicle inspection systems. The agreement contains potential options for orders totaling up to $117 million over a three-year period.

第三，來自另一家國際客戶的 1,000 萬美元訂單，提供 Z Backscatter 貨車、ZBV 行動貨物和車輛檢查系統，包括培訓、服務和支援。最後，在國內，我們宣布了一份價值約 2700 萬美元的合約訂單，用於維護、服務和技術支持，以及說唱歌手掃描貨物和車輛檢查系統的安裝基礎。該協議包含三年內總額高達 1.17 億美元的潛在訂單選擇權。

In aviation, we continue to make progress on our existing international airport project awards, as airports expand and upgrade existing infrastructure especially in Europe, Middle East, and Latin America. Our overall activity at airports and air cargo facilities continues to be robust. We have a good pipeline. We are also focused on developing new offerings for airport and air cargo customers such as providing employee screening solutions for these customers. In some instances, this could be opportunities for complete tur-nkeys services or hardware sales with remote monitoring services possibility.

在航空領域，隨著機場擴建和升級現有基礎設施，尤其是歐洲、中東和拉丁美洲的機場，我們繼續在現有國際機場專案方面取得進展。我們在機場和航空貨運設施的整體活動持續強勁。我們有良好的管道。我們也專注於為機場和航空貨運客戶開發新產品，例如為這些客戶提供員工篩選解決方案。在某些情況下，這可能是完整的交鑰匙服務或具有遠端監控服務可能性的硬體銷售的機會。

As Alan mentioned during the first quarter of fiscal '25, we acquired a US based company that provides high power radio frequency-based transmission and amplification solutions for critical military communication, space communications, navigation, and surveillance applications, both in the US and international customers. Like our company's legacy offerings, these products help provide security and safety for people and critical infrastructure.

正如艾倫在 25 財年第一季提到的，我們收購了一家美國公司，該公司為美國和國際的關鍵軍事通訊、太空通訊、導航和監視應用提供基於射頻的高功率傳輸和放大解決方案顧客。與我們公司的傳統產品一樣，這些產品有助於為人員和關鍵基礎設施提供安全保障。

We work with numerous defense and security agencies that utilize this technology in communication and surveillance solutions. In summary, this acquisition adds proven radio frequency-based technology and products to our portfolio allowing us to leverage further our global manufacturing sales and service support infrastructure. Overall, the security division had a strong start in fiscal 2025 and we look forward to security again, achieving a high level of performance to the balance of '25 and beyond.

我們與眾多國防和安全機構合作，在通訊和監控解決方案中利用該技術。總而言之，此次收購將經過驗證的基於射頻的技術和產品添加到我們的產品組合中，使我們能夠進一步利用我們的全球製造銷售和服務支援基礎設施。總體而言，安全部門在 2025 財年取得了良好的開局，我們期待安全部門再次實現高水準的績效，直至 25 財年及以後。

Moving to the optoelectronics and manufacturing division reported revenues of $98 million including intercompany sales to reach a new first quarter record while delivering solid profitability. We saw notable strength and growth in our flex circuits product line. Many of our customers for flex circuits are from consumer tech and advanced medical device industries.

光電和製造部門報告收入為 9,800 萬美元，其中包括公司間銷售，創下第一季新紀錄，同時實現穩健的獲利能力。我們看到柔性電路產品線顯著的實力和成長。我們的許多柔性電路客戶來自消費技術和先進醫療設備行業。

We also have many customers who are leading OEMs in defense electronics. To that end, we announced a $5 million order for advanced optical sensors that the customer will integrate into its complex navigation and guidance systems. I should note here that an order of this side is relatively large for this division.

我們還有許多國防電子領域領先的 OEM 客戶。為此，我們宣布了價值 500 萬美元的先進光學感測器訂單，客戶將把這些感測器整合到其複雜的導航和導引系統中。這裡要注意的是，對於這個部門來說，這邊的訂單是比較大的。

Our operations in Mexico which we began at the end of Q2 last year are ramping up as we continue to introduce our existing and potential customer base to its capabilities and the net benefits of near shoring. The uncertainty and risk for OEMs with China centric supply chains have never been more significant. And our global manufacturing presence in US, Mexico, UK, India, Indonesia, and Malaysia provides a viable alternative to reducing these risks.

我們於去年第二季末開始在墨西哥開展業務，隨著我們繼續向現有和潛在客戶群介紹其能力和近岸的淨收益，我們的業務正在不斷擴大。對於擁有以中國為中心的供應鏈的原始設備製造商來說，不確定性和風險從未如此重大。我們在美國、墨西哥、英國、印度、印尼和馬來西亞的全球製造基地為降低這些風險提供了可行的替代方案。

Finally, on to the healthcare division. Q1 sales were down slightly year over year due to challenging market conditions as we mentioned before, still the division delivered improved profitability in part due to a more streamlined infrastructure. To support our customers, this division continues to offer innovative solutions and market its differentiation offerings like the Rothman Index-based predictive analytics software and safe and sound patient alarm management software.

最後，談談醫療保健部門。正如我們之前提到的，由於市場條件充滿挑戰，第一季銷售額比去年同期略有下降，但該部門的盈利能力有所提高，部分原因是基礎設施更加精簡。為了支援我們的客戶，該部門繼續提供創新解決方案並行銷其差異化產品，例如基於羅斯曼指數的預測分析軟體和安全可靠的患者警報管理軟體。

We are focused on developing the next generation of patient monitoring solutions and continue to progress accordingly with an improved cost structure and a growing opportunity pipeline. We expect healthcare's performance to improve over the balance of fiscal '25.

我們專注於開發下一代患者監護解決方案，並透過改善成本結構和不斷增長的機會管道繼續取得相應進展。我們預計醫療保健的表現將在 25 財年的剩餘時間內改善。

In summary, with a significant backlog and a clear path to near term opportunities, we are increasingly confident about our prospects for fiscal 2025 and beyond. Our strategy of being a vertically integrated supplier with a flexible and responsive global footprint that meets its customers' needs while we continue to invest in and acquire strategic technologies and capabilities has created a robust business with a long-term sustainable growth potential.

總之，憑藉大量積壓訂單和通往近期機會的明確途徑，我們對 2025 財年及以後的前景越來越有信心。我們的策略是成為垂直整合的供應商，擁有靈活、反應迅速的全球足跡，滿足客戶的需求，同時我們繼續投資和獲取策略技術和能力，創造了具有長期可持續成長潛力的強勁業務。

Finally, as you know, I have announced my retirement from my position as Chief Executive Officer of the company at the end of calendar 2024, though I will remain as Executive Chairman of the Board. In 1987 we laid the foundation for what would become OSI Systems starting as the opto sensors in company and embarked on a new chapter by going public in 1997. From the beginning, our mission has been unwavering to deliver essential components and systems that enhance the safety and health of society. With the seasoned expertise of our current OSI management team, I'm confident in our ability to ascend to even more significant achievements.

最後，如您所知，我宣布將於 2024 年年底從公司執行長的職位上退休，但我將繼續擔任董事會執行主席。1987 年，我們為後來的 OSI Systems 奠定了基礎，該公司最初是一家光電感測器公司，並於 1997 年上市，開啟了新的篇章。從一開始，我們的使命就堅定不移地提供必要的組件和系統，以增強社會的安全和健康。憑藉我們目前 OSI 管理團隊經驗豐富的專業知識，我對我們取得更重大成就的能力充滿信心。

We expect to announce a successor before the end of the quarter as such. This is expected to be my last earnings call as CEO and it has been my privilege to lead the company over the past years, and I look forward to supporting OSI's journey ahead. With that, I turn the call over to Alan to talk in more detail about our financial performance and updated guidance before opening the call for questions. Thank you.

我們預計將在本季末之前宣布繼任者。預計這將是我作為執行長的最後一次財報電話會議，我很榮幸在過去幾年中領導公司，我期待為 OSI 的未來發展提供支援。就此，我將電話轉給艾倫，在開始提問之前更詳細地討論我們的財務表現和最新指導。謝謝。

Thank you, Deepak. Now we will review in greater detail the financial results for the fiscal '25 first quarter. Again, Q1 revenues were up 23% compared with revenues in the first quarter of the prior fiscal year. This increase was primarily driven by our largest division security. The 36% year-over-year increase in Q1 security division revenues was led by strong growth in our cargo and vehicle inspection product sales as well as solid growth in our aviation and checkpoint product sales.

謝謝你，迪帕克。現在我們將更詳細地回顧 25 財年第一季的財務表現。與上一財年第一季相比，第一季營收再次成長 23%。這一增長主要是由我們最大的安全部門推動的。第一季安全部門營收年增 36%，主要得益於我們的貨運和車輛檢查產品銷售的強勁成長以及航空和檢查站產品銷售的穩健成長。

Q1 revenues included continued shipments from the $200 million-plus cargo contract announced in January '23 and also from the $500 million-plus cargo contract announced in March '23. In addition year-over-year security division services revenues increased 11%. Third-party opto sales were solid delivering an 8% year-over-year increase driven by growth from our new Mexico operations.

第一季營收包括 2023 年 1 月宣布的 2 億多美元貨運合約以及 2023 年 3 月宣布的 5 億多美元貨運合約的持續出貨。此外，安全部門服務收入較去年同期成長 11%。在我們新墨西哥業務成長的推動下，第三方光電產品銷售穩健，較去年同期成長 8%。

We continued to see certain opto customers adjusting inventory levels and ordering patterns which we anticipate seeing through the second quarter of fiscal '25 and perhaps a little beyond. And revenues in the health care division in the first quarter of '25, as Deepak mentioned, were roughly the same as Q1 revenues in the last fiscal year.

我們繼續看到某些光電客戶調整庫存水準和訂購模式，我們預計這種情況會持續到 25 財年第二季甚至更晚。正如 Deepak 所提到的，25 年第一季醫療保健部門的收入與上一財年第一季的收入大致相同。

The fiscal '25 Q1 gross margin of 35.3% was in line with the 35.4% gross margin in Q1 of last fiscal year, and up sequentially from the 32.1%. In Q4 of fiscal '24. Our gross margin will generally fluctuate from period to period based on revenue mix, and volume, impacts of changes in supply chain costs and inflation generally, among other factors.

25 財年第一季的毛利率為 35.3%，與上一財年第一季的 35.4% 毛利率持平，比上一財年的 32.1% 有所上升。24 財年第四季。我們的毛利率通常會根據收入組合、數量、供應鏈成本變化的影響和通貨膨脹等因素而隨時間波動。

Moving to operating expenses. We continue to work diligently across each of our divisions to improve efficiency and manage our SG&A cost structure. Q1 SG&A expenses were $72 million or 21.0% of sales compared to $60 million or 21.4% of sales in Q1 of the prior year. The year-over-year dollar increase in costs resulted primarily from higher compensation costs in support of the company's growth and the weakening of the US dollar creating unfavorable foreign exchange rates.

轉向營運費用。我們繼續在每個部門努力工作，以提高效率並管理我們的銷售、管理和行政費用結構。第一季的 SG&A 費用為 7,200 萬美元，佔銷售額的 21.0%，而上年第一季為 6,000 萬美元，佔銷售額的 21.4%。美元成本年增主要是因為支持公司成長的薪酬成本上升以及美元疲軟造成不利的外匯匯率。

Research and development expenses in Q1 of fiscal '25 were $17.8 million or 5.2% of revenues compared to $15.9 million or 5.7% of revenues in the same prior year quarter. We continue to dedicate considerable resources to R&D particularly in our security and our healthcare divisions as we remain focused on innovative product development, which we view as vital to the long-term success of our businesses. We recorded $1.2 million of restructuring and other charges in Q1 of fiscal '25 compared to $0.5 million in the same quarter of the last year.

25 財年第一季的研發費用為 1,780 萬美元，佔營收的 5.2%，而去年同期為 1,590 萬美元，佔營收的 5.7%。我們繼續將大量資源投入研發，特別是在安全和醫療保健部門，因為我們仍然專注於創新產品開發，我們認為這對我們業務的長期成功至關重要。我們在 25 財年第一季記錄了 120 萬美元的重組和其他費用，而去年同期為 50 萬美元。

Moving to interest and taxes. Net interest and other expenses in Q1 increased to $7.4 million in fiscal '25 from $5.7 million in fiscal '24, primarily due to a higher amount of borrowings, partially offset by the favorable impact of the convertible notes issued during Q1 which were partially used to repay higher cost borrowings.

轉向利息和稅收。第一季的淨利息和其他費用從24 財年的570 萬美元增加到25 財年的740 萬美元，主要是由於借款金額增加，部分被第一季發行的可轉換票據的有利影響所抵消，這些可轉換票據部分用於償還成本較高的借款。

Our reported effective tax rate under GAAP was 21.9% in Q1 of fiscal '25 compared to 23.4% in Q1 last year. Excluding the impact of discrete tax items, our normalized effective tax rate which is the rate reflected in our calculation of non-GAAP adjusted EPS was 24% in Q1 of fiscal '25 compared to 25.8% in Q1 of '24.

我們報告的 25 財年第一季按照 GAAP 計算的有效稅率為 21.9%，而去年第一季為 23.4%。排除離散稅項的影響，我們的標準化有效稅率（即我們計算非 GAAP 調整後每股收益所反映的稅率）在 25 財年第一季為 24%，而 24 財年第一季為 25.8%。

I will now turn to a discussion of our non-GAAP adjusted operating margin. Overall, our adjusted operating margin in the first quarter of fiscal '25 increased to 10.3% from 9.6% in Q1 of fiscal '24. The Q1 fiscal '25 non-GAAP adjusted operating margin of 14.4% in the security division was up slightly from the comparable prior year quarter and included the absorption of the notable adverse FX. The adjusted operating margin in our opto division was 12.0% in the first quarter of fiscal '25 compared to 12.8% in last year's Q1. Excluding the adverse impact of FX in the opto division, the margin was relatively in line year over year. The health care division reported a nominal increase in its adjusted operating margin.

我現在將討論我們的非公認會計準則調整後營業利潤率。整體而言，我們在 25 財年第一季調整後的營業利潤率從 24 財年第一季的 9.6% 增至 10.3%。安全部門的 25 財年第一季非 GAAP 調整後營業利潤率為 14.4%，較上年同期略有上升，其中包括了顯著不利的外匯影響。我們的光電部門調整後的 25 財年第一季營業利潤率為 12.0%，而去年第一季為 12.8%。排除光電部門外匯的不利影響，利潤率較去年同期相對穩定。醫療保健部門報告稱，其調整後的營業利潤率名義上有所增長。

Moving to cash flow. Cash used in operations in the first quarter was $37 million primarily in relation to higher inventories and receivables. In support of the security division's revenue growth. Capex in the first quarter was $7.7 million, while depreciation and amortization expense in Q1 was $11.5 million. With respect to cash flow, I wanted to take a moment to provide some additional accounting insight on our receivables and DSO, both of which have risen primarily due to our significant international security contracts.

轉向現金流。第一季營運中使用的現金為 3,700 萬美元，主要與庫存和應收帳款增加有關。支持安全部門的收入成長。第一季的資本支出為 770 萬美元，第一季的折舊和攤提費用為 1,150 萬美元。關於現金流，我想花點時間提供一些關於我們的應收帳款和 DSO 的額外會計見解，這兩者的增長主要是由於我們重要的國際安全合約。

Under GAAP, we typically recognize revenue as we ship or deliver products depending upon the specific contractual obligations. For civil works, we typically recognize revenue over time as we complete the construction phase and ultimately install the products. On certain contracts, like our significant international security contracts we earlier referenced, billing is triggered by the achievement of certain project milestones which are highly influenced by the customer's timeline and sign off.

根據公認會計原則，我們通常根據特定的合約義務在運輸或交付產品時確認收入。對於土木工程，我們通常會在完成施工階段並最終安裝產品時確認收入。在某些合約中，例如我們之前提到的重要國際安全合同，計費是由某些專案里程碑的實現觸發的，這些里程碑在很大程度上受到客戶的時間表和簽字的影響。

As such, an unbilled receivable is recorded as we recognize revenue under GAAP, the billing and the resulting cash collection occur subsequent to the achievement of the milestone. Therefore, the elevated AR and DSO is normal course for large government contracts does not factor into the cash economics of the transactions and is just timing related. Our goal is to collect cash as early as we can. And the trends for typical build receivables remain strong as DSO for build receivables is approximately 87 days.

因此，當我們根據公認會計原則確認收入時，會記錄未開立發票應收帳款，開立發票和由此產生的現金回收發生在實現里程碑之後。因此，對於大型政府合約來說，增加 AR 和 DSO 是正常現象，不會影響交易的現金經濟性，而只是與時間相關。我們的目標是儘早收集現金。典型應收帳款的趨勢仍然強勁，因為應收帳款的 DSO 約為 87 天。

We anticipate operating cash flow could be quite significant in the second half of fiscal '25 and potentially even stronger in fiscal '26. Our balance sheet is solid with net leverage of about 2.3 as calculated under our credit facility. Aside from $7.5 million of annual required principal repayments under our bank term loan, the bulk of our debt matures in fiscal '27.

我們預計，25 財年下半年的營運現金流可能相當可觀，26 財年甚至可能更強勁。我們的資產負債表穩健，根據我們的信貸額度計算，淨槓桿約為 2.3。除了我們銀行定期貸款每年要求償還的 750 萬美元本金之外，我們的大部分債務在 27 財年到期。

As mentioned earlier during Q1, we issued $350 million of convertible notes with a coupon of 2.25% two and fiscal 30 and an initial conversion price of approximately $192. The proceeds were used to partially pay down our bank revolver and to purchase approximately 531,000 shares of our common stock as well as cover transaction costs.

如同先前在第一季提到的，我們發行了 3.5 億美元的可轉換票據，票面利率為 2.25%，2 期和 30 財年，初始轉換價格約為 192 美元。所得款項用於部分償還我們的銀行左輪手槍併購買約 531,000 股普通股以及支付交易費用。

This transaction provides enhanced liquidity to capitalize on future strategic initiatives while simultaneously being immediately accretive given a significant reduction in interest costs and a reduction in our share account. As a result of completion of the convertible notes deal and partial paydown of our bank debt and the interest rate swap we entered into approximately two years ago, over 70% of our debt was fixed versus floating at the end of Q1.

這項交易提供了增強的流動性，以利用未來的策略性舉措，同時由於利息成本的大幅降低和我們的股票帳戶的減少而立即增值。由於完成了可轉換票據交易、部分償還了我們的銀行債務以及我們大約兩年前簽訂的利率互換協議，截至第一季末，我們超過 70% 的債務是固定債務而不是浮動債務。

Finally turning to guidance. We are updating our fiscal '25 revenues and non-GAAP diluted EPS guidance. For fiscal year '25, we anticipate revenues in the range of $1.67 billion to $1.695 billion, increasing our guidance on year-over-year revenue growth from a range of 5.3% to 7.2% to a range of 8.5% to 10.2% growth. We are also increasing fiscal '25 non-GAAP adjusted earnings per diluted share guidance to a range of $9 to $9.30 per share or 10.7% to 14.4% growth. This fiscal '25 non-GAAP diluted EP guidance excludes potential impairment restructuring and other charges, amortization of acquired intangible assets and their associated tax effects, as well as discrete tax and other nonrecurring items.

最後轉向指導。我們正在更新 25 財年收入和非 GAAP 稀釋後每股盈餘指引。對於 25 財年，我們預計營收在 16.7 億美元至 16.95 億美元之間，將我們對同比收入成長的指導從 5.3% 至 7.2% 提高到 8.5% 至 10.2%。我們也將 25 財年非 GAAP 調整後每股攤薄收益指引提高至每股 9 美元至 9.30 美元，成長 10.7% 至 14.4%。此 25 財年非 GAAP 攤薄 EP 指引不包括潛在的減損重組和其他費用、收購的無形資產攤銷及其相關稅收影響，以及離散稅收和其他非經常性項目。

We currently believe this guidance reflects reasonable estimates. The actual impact on the company's financial results of timing changes on the expected conversion of backlog to revenues, disruptions in the supply chain and inflation is difficult to predict, and could vary significantly from the anticipated impacts currently reflected in our guidance. Actual revenues and non-GAAP EPS could also vary from the guidance indicated above, due to other risks and uncertainties discussed in our sec filings.

我們目前認為該指導反映了合理的估計。積壓訂單預期轉換為收入、供應鏈中斷和通貨膨脹的時間變化對公司財務表現的實際影響很難預測，並且可能與我們指導中目前反映的預期影響有很大差異。由於我們在美國證券交易委員會備案文件中討論的其他風險和不確定性，實際收入和非 GAAP 每股盈餘也可能與上述指引有所不同。

We continue to remain focused on the growth of our businesses. We believe our efforts will enable OSI to continue providing innovative products and solutions. We would like to take this opportunity to thank the Global OSI team for its continued dedication in supporting our customers and partners. And as a lifelong Dodgers fan while, we respect the Yankees, I must conclude with the Dodgers.

我們繼續專注於我們業務的成長。我們相信，我們的努力將使 OSI 能夠繼續提供創新的產品和解決方案。我們想藉此機會感謝全球 OSI 團隊持續致力於支持我們的客戶和合作夥伴。作為道奇隊的終身球迷，我們尊重洋基隊，但我必須以道奇隊結束。

At this time, we will open the call to questions

此時我們將開啟提問環節

Josh Nichols, B Riley.

喬許·尼科爾斯，B·萊利。

Yeah, thanks. Go Dodgers. Indeed. I guess just looking at this, I wanted to get a little bit more color. I mean, this is actually usually the seasonally slower quarter, particularly in Europe in the later summer months, but the security backlog is doing quite well. The overall backlog actually kind of increased $100 million sequentially. I know you announced $80 million-plus or so like security awards during the quarter, but you did have about $0.25 billion in security revenue. Can you provide just a little bit more granularity on what's been driving that backlog growth overall, Despite it being a little bit seasonally slow as we kind of touched on?

是的，謝謝。去道奇隊吧。的確。我想只是看著這個，我想得到更多一點的顏色。我的意思是，這實際上通常是季節性較慢的季度，特別是在夏季末的歐洲，但安全積壓情況相當不錯。總體積壓訂單實際上比上一季增加了 1 億美元。我知道你們在本季宣布了大約 8000 萬美元左右的安全獎勵，但你們確實有大約 2.5 億美元的安全收入。您能否更詳細地說明推動總體積壓增長的因素，儘管正如我們所提到的，積壓的增長有點季節性緩慢？

Sure, Josh. This is Alan, great question. So yes, we've seen strength in our security division. And you're right with sometimes a typically slower seasonal quarter on the revenue side. We really saw strength across our businesses. We saw it across the geographies. The Americas, Asia Pacific, and the EMEA region. We saw strength across our product lines and the aviation and the cargo and solutions. So it was really a nice bookings quarter for us, positioning us with an excellent backlog as we look out to the rest of fiscal '25 and beyond.

當然，喬許。這是艾倫，問得好。所以，是的，我們看到了安全部門的實力。有時，收入方面的季節性季度通常會放緩，這是正確的。我們確實看到了我們業務的優勢。我們在各個地區都看到了這一點。美洲、亞太地區和歐洲、中東和非洲地區。我們看到了我們的產品線、航空、貨運和解決方案的優勢。因此，這對我們來說確實是一個很好的預訂季度，在我們展望 25 財年剩餘時間及以後的情況時，我們擁有大量的積壓訂單。

Thanks. Then just kind of curious you clearly the lead horse when you look at security cargo vehicle inspection. You did note that you're seeing good revenue as well as opportunities on aviation and things like that as well. What's the opportunity do you think to potentially increase size and market share on that piece of the business where you're still probably like a the number two, number three player, instead of the lead player like you are on traditional cargo and vehicle inspection systems?

謝謝。然後只是有點好奇，當您查看安全貨運車輛檢查時，您顯然是領頭馬。您確實注意到，您看到了良好的收入以及航空等領域的機會。您認為有哪些機會可以擴大該業務的規模和市場份額，您可能仍然是第二、第三的參與者，而不是像傳統的貨物和車輛檢查系統那樣的領先參與者？

Good question, again, there is people here. But definitely, we see good pipelines, strong expectations in the aviation and air cargo space primarily into the international sector, As I mentioned in Latin America, in Asia and in Europe, everywhere, there is much more traffic of passengers going which is making the airports get to the next level of upgrading their systems.

好問題，再說一遍，這裡有人。但毫無疑問，我們看到了良好的管道，對航空和航空貨運空間主要進入國際領域的強烈期望，正如我所提到的，在拉丁美洲、亞洲和歐洲，世界各地都有更多的旅客運輸，這使得機場的系統升級到了新的水平。

At the same time, we have said many times before on our calls, air cargo is a very focused space for us, and we continue to grow in that business. And our idea also is that we want to do something different innovative, what I said mentioned employee screening both at the airports and air cargo freight facilities. So all that adds up to in our opinion that that whole area will continue to see growth and we are well positioned into it. At the same time, I know that people ask us about the US. We are working with TSA and whenever the next replacement cycle comes in, we'll be ready.

同時，我們之前在電話中多次說過，航空貨運是我們非常關注的領域，我們將繼續在該業務中發展。我們的想法也是，我們想做一些不同的創新，我剛才提到的在機場和航空貨運設施進行員工篩選。因此，我們認為，所有這些加在一起，整個領域將繼續成長，我們已經做好了充分的準備。同時，我知道人們向我們詢問美國的情況。我們正在與 TSA 合作，每當下一個更換週期到來時，我們都會做好準備。

Thanks. Then just last question for me, just touching on the acquisition. Good to see the company adding some RF to the to the product portfolio. I know you described it as a bolt on acquisition. So I assume it's not going to be a huge contributor to revenue or EPS for this year. But if you could provide any additional color on that, and then also expectations in terms of potential synergies or how you could layer this into your global footprint for sales and manufacturing and potentially ramp up sales or expand margins on that front?

謝謝。接下來是我的最後一個問題，涉及收購。很高興看到該公司在產品組合中添加了一些射頻。我知道您將其描述為收購的螺栓。因此，我認為它不會對今年的收入或每股盈餘做出巨大貢獻。但是，如果您可以提供任何額外的信息，然後還有對潛在協同效應的期望，或者如何將其納入您的全球銷售和製造足跡，並有可能提高銷售額或擴大這方面的利潤？

Again, good question. As you know that our strategy is that we look at one plus one must make more than two. This is a strategic acquisition. It's a little different technology, but it fits very well in because the same customers that this company works with, we work with the same customers both domestically and international. And with the footprint being larger, we expect that we'll be able to put this together and be able to go after a much broader customer base. At the same time, with our service support with our manufacturing, it definitely has synergy into it. But more important into it, it broadens our technology platform, which is what we've been doing for the last decade or so to broaden our product portfolio.

再說一遍，好問題。大家知道，我們的策略是我們看一加一必須大於二。這是一次策略性收購。這是一種有點不同的技術，但它非常適合，因為與該公司合作的客戶相同，我們與國內和國際的相同客戶合作。隨著足跡的擴大，我們希望能夠將其整合在一起，並能夠追求更廣泛的客戶群。同時，有了我們的服務支援和我們的製造，它肯定具有協同效應。但更重要的是，它拓寬了我們的技術平台，這也是我們在過去十年左右的時間裡一直在做的事情，以拓寬我們的產品組合。

Appreciate, Deepak, and congratulations again.

感謝，迪帕克，再次祝賀。

Thank you.

謝謝。

Mariana Perez Mora, Bank of America.

瑪麗安娜·佩雷斯·莫拉，美國銀行。

Thank you so much. And Deepak, congratulations on the professional journey and also on the well, like partial retirement, I guess.

太感謝了。迪帕克，祝賀你的職業生涯，也祝賀你的健康，例如部分退休，我猜。

So my first question is about the pipeline. And I understand for competitive reasons, you cannot give like a lot of like granularity into it. But how should we think about the pipeline of opportunities in the next like 6 months or 12 months? And is there like particular, like, I don't know, big contracts there that we should be watchful for specific regions, like how should we think about that?

所以我的第一個問題是關於管道的。我理解，出於競爭的原因，你不能給予它太多的粒度。但我們應該如何考慮未來 6 個月或 12 個月的機會管道？是否有特別的，例如，我不知道，我們應該對特定地區保持警惕的大合同，例如我們應該如何考慮這一點？

Well, again, good question. But you also answered it too, that we can't be very specific. Basically, we have been saying for a long time, we consider ourselves in the cargo space as a leading company. We are very much focused on to it domestically with CBB, and other state department, and other customers there. Internationally, with the broad base that we have, there's a lot of activity. And the other thing that it's tough to say it, but as the world becomes more unsafe, requires more security awareness, and we have the product for that and we have a very broad reach. So we look at this as a very strong pipeline, very strong globally. And with our name, and our reputation, and our services in various parts of the world, we definitely get invited to every dance there is.

好吧，又是一個好問題。但你也回答了，我們不能說得很具體。基本上，我們長期以來一直在說，我們認為自己是貨運領域的領導公司。我們非常關注國內與 CBB、其他國務院以及其他客戶的合作。在國際上，我們擁有廣泛的基礎，有許多活動。另一件事很難說，但隨著世界變得越來越不安全，需要更多的安全意識，而我們擁有這方面的產品，我們的影響範圍非常廣泛。因此，我們認為這是一個非常強大的管道，在全球範圍內都非常強大。憑藉我們的名字、我們的聲譽以及我們在世界各地的服務，我們肯定會被邀請參加那裡的每一場舞會。

So if I were to -- let me ask it in a different way. If I were to assume about like 50% of your backlog is going to convert into the next like '12 months. And then the services or a piece of that of the aftermarket that you're going to support is not there. I'm still missing about around like the four of the revenues that you need to still like get into contracts. How strong is the pipeline compared to that?

因此，如果我要——讓我以不同的方式提問。如果我假設大約 50% 的積壓訂單將轉換為接下來的 12 個月。然後您要支援的服務或售後市場的一部分就不存在了。我仍然缺少您仍然希望簽訂合約所需的四項收入。相比之下，管道有多強大？

Very strong. And all the time, we've been saying it, these kind of contracts take longer years and time, the bigger the size it is. So we've been working with these customers for a long time. And with our reputation and our success in US, and Mexico, and other places, we feel very good about it that these things will mature in a timely fashion.

非常強。我們一直在說，這類合約的規模越大，需要的年資和時間就越長。因此，我們與這些客戶合作了很長時間。憑藉我們在美國、墨西哥和其他地方的聲譽和成功，我們對這些事情能夠及時成熟感到非常滿意。

What are the key risks that you're looking at in terms of like timing of those opportunities?

您在這些機會的時機方面考慮的主要風險是什麼？

Would you repeat it again? I didn't get the --

你能再重複一遍嗎？我沒有得到--

What are the key risks that could delay some of these opportunities? Any challenges?

可能會延遲其中一些機會的主要風險是什麼？有什麼挑戰嗎？

Well, obviously the economy, the world economy is always a potential risk. But besides that, from time to time, things can change, unrest there or something else there, government funding. So I don't see any specific risk, history speaks for itself. We already are in this unrest both in Middle East and in the Ukraine Russia area.

嗯，顯然經濟，世界經濟始終是個潛在的風險。但除此之外，事情有時會發生變化，例如那裡的騷亂或其他的事情，例如政府的資助。所以我沒有看到任何具體的風險，歷史不言而喻。我們已經在中東和烏克蘭俄羅斯地區陷入了動盪。

Our requirement our pipeline has not weakened. We continue to look at it. And as I mentioned, as you go, what is called the other side of the coin, not security, as you look at what is called, people are moving away from China, they want to set up manufacturing in other parts of the world. We have the product and the infrastructure to be there for ports and borders, for crossings, for airports, air cargo. So we look at that, we don't look at it as any risk anyway.

我們對管道的要求並沒有減弱。我們繼續關注。正如我所提到的，所謂的硬幣的另一面，而不是安全，正如你所看到的，人們正在遠離中國，他們想在世界其他地方建立製造業。我們擁有港口和邊境、過境點、機場、航空貨運所需的產品和基礎設施。所以我們會考慮這一點，無論如何我們都不認為它有任何風險。

Great. And then let me tap double tap into what you just mentioned but not only from a security point of view, but from the optoelectronics type of opportunity. You mentioned this like $5 million order that you received. Could you please give us some color around the demand especially in the US or the UK for this type of like niche sensors or electronics?

偉大的。然後讓我雙擊您剛才提到的內容，不僅從安全角度，而且從光電類型的機會。你曾提到你收到的 500 萬美元訂單。您能否給我們一些關於需求的信息，特別是在美國或英國對此類利基感測器或電子產品的需求？

Again, good question. So the reason we mentioned that $5 million is a significant order, that's in the optoelectronics side. Those are components and subassemblies that we make for other OEMs. And what we mentioned is that that pipeline is a very reliable pipeline because we are designed to those customers. In the medical industry, in aerospace industry, defense industry, consumer industry, so that we have a very good foresight into that pipeline. And our customer base is very strong. And our manufacturing global in Malaysia, Indonesia, India, UK, that helps us very much, and the new facility in Mexico as people start looking at more alternate to China. So that looks like again a good opportunity and a good strong visibility.

再說一遍，好問題。所以我們之所以提到 500 萬美元是一筆重要訂單，而且是在光電方面。這些是我們為其他原始設備製造商製造的組件和子組件。我們提到的是，該管道是非常可靠的管道，因為我們是為這些客戶設計的。在醫療產業、在航空航太產業、國防工業、消費產業，使我們對該管道有非常好的遠見。我們的客戶群非常強大。我們在馬來西亞、印尼、印度、英國的全球製造對我們幫助很大，墨西哥的新工廠也讓人們開始尋找中國以外的替代方案。所以這看起來又是一個很好的機會和良好的知名度。

Thank you. And last one from me on the receivables. Thank you for the color on the unbilled receivables. But when you think about like future contracts, considering this like accounting issues, but also that you're actually transferring some of your assets. Is there any way you can like request earlier payment or a down payment from these international customers in contracts that are this large or how that works?

謝謝。我最後一封關於應收帳款的郵件。感謝您對未開立應收帳款的顏色。但是，當你考慮未來的合約時，考慮會計問題，而且你實際上正在轉移一些資產。您是否可以透過任何方式要求這些國際客戶在如此大的合約中提前付款或預付款，或者如何運作？

Mariana, this is Alan. Great question. We have very often in the past requested considerable advances in down payment which helped to frame some of the inventory build up, and some of the AR. When we can get that, we absolutely do. There are certain contracts that go out by RFP, where we cannot really dictate terms. The terms are kind of dictated by the customers in those regards. And if they make good, strong economic sense for us to take the contract, even though it might require some adverse cash flow on a short term basis. We'll go ahead and proceed with that. But whenever we can get customer advances or can negotiate payment terms that are more favorable to us, we absolutely do. We're keenly in tune with that.

瑪麗安娜，這是艾倫。很好的問題。過去，我們經常要求預付大量預付款，這有助於建立一些庫存累積和一些應收帳款。當我們能做到這一點時，我們絕對會做到。有些合約是透過 RFP 簽訂的，我們無法真正規定條款。在這些方面，這些條款是由客戶決定的。如果它們對我們來說具有良好的、強烈的經濟意義，就可以接受這份合同，即使短期內可能需要一些不利的現金流。我們將繼續進行下去。但只要我們能夠獲得客戶預付款或能夠協商對我們更有利的付款條件，我們絕對會這樣做。我們對此非常贊同。

Great, thank you so much.

太好了，非常感謝。

Matt Akers, Wells Fargo.

馬特·埃克斯，富國銀行。

Yeah. Hi, thanks for the question. I guess following up on that, the working capital and thanks for the color. Alan, I guess is there a target we should think about getting back to like, days of receivables or however you want to frame it? I'm just trying to think if there's an opportunity to get back to kind of the, the level of receivables we were at two or three years ago or something in the business change that maybe that that's going to linger a little bit higher than it had been in the past?

是的。你好，謝謝你的提問。我想接下來，營運資金和顏色的感謝。艾倫，我想我們是否應該考慮回到應收帳款天數或您想要的任何目標？我只是在想，是否有機會回到兩三年前的應收帳款水平，或者業務發生什麼變化，也許這種水平會比現在高一點曾經是過去嗎？

Yeah. Good, question, Matt. We do believe that we can get back to the DSO levels that we had experienced in the past. As you mentioned, a big part of the higher DSO and unbuilt receivable relates to the Big Mexico contract, the Cedna contract that we refer to. And while that's a great contract from us, from sales and an earnings perspective and a great beachhead for us, it does have those milestones where the cash flow isn't necessarily as strong.

是的。好，問題，馬特。我們確實相信我們可以回到過去經歷過的 DSO 水平。正如您所提到的，較高的 DSO 和未建造應收帳款的很大一部分與 Big Mexico 合約（我們指的 Cedna 合約）有關。雖然從銷售和盈利的角度來看，這是我們的一份很棒的合同，並且對我們來說是一個很好的灘頭陣地，但它確實有一些里程碑，但現金流不一定那麼強勁。

We'll certainly look to get more contracts like that in the future and that could have an adverse impact in our DSO from time to time. But if you look at us from a historical perspective, we operate generally speaking in a relatively narrow band of DSO that is much lower than where it is today, and we would anticipate kind of returning to that norm in the future.

我們將來肯定會希望獲得更多這樣的合同，這可能會不時對我們的 DSO 產生不利影響。但如果你從歷史的角度來看我們，一般來說，我們的 DSO 範圍相對較窄，遠低於今天的水平，我們預計未來會恢復到這一標準。

Yeah, got it. Okay, thanks. And I guess on the health care business, good to see the profit up even with sales, kind of flattish.I guess you talked a little bit about how you got there. And should we see kind of a similar benefit year over year where I know there's some seasonality in there but kind of a similar kind of uptick?

是的，明白了。好的，謝謝。我想在醫療保健業務上，很高興看到利潤成長，即使銷售量也持平。我們是否應該看到年復一年類似的收益，我知道其中存在一些季節性，但有類似的上升？

Yes, Matt. This is Alan, you're right. Seasonally speaking, the healthcare business is the slowest in the Q1 in the September quarter. So as Deepak mentioned in his earlier remarks, we do expect an improved performance through the rest of the year. The way we got to stronger profits on similar or slightly down revenues was also the initiatives that Deepak referred to where we enhanced the operational infrastructure and took out some costs.

是的，馬特。這是艾倫，你說得對。從季節性來看，醫療保健業務在 9 月的季度中是第一季最慢的。正如迪帕克在之前的演講中提到的那樣，我們確實預計今年剩餘時間的表現會有所改善。我們在收入相似或略有下降的情況下獲得更大利潤的方式也是迪帕克提到的我們增強營運基礎設施並降低一些成本的舉措。

The health care business for us is the highest contribution margin in business. So as revenues go up, there's an awful big pull through to operating income and EBITDA. So as we do anticipate revenues being stronger in future quarters than they were in Q1 coupled with the linear cost structure that we have, there's a really nice opportunity for some nice margin expansion.

對我們來說，醫療保健業務是利潤率最高的業務。因此，隨著收入的增加，營業收入和 EBITDA 也會得到巨大的拉力。因此，由於我們確實預計未來幾季的收入將比第一季強勁，再加上我們擁有的線性成本結構，因此這是實現利潤率擴張的絕佳機會。

Yeah, got it, thanks. I guess if I could squeeze in one more. I guess the acquisition -- maybe, I missed this, but is it possible to size that, or at least, I guess if we think about the guidance raise, kind of was most of that organic or was sort of the acquisition a big chunk of that?

是的，明白了，謝謝。我想我是否可以再擠一擠。我想這次收購——也許，我錯過了這一點，但是否有可能確定規模，或者至少，我想如果我們考慮指導性的提高，那麼大部分是有機的，或者是收購的很大一部分那個？

Sure, good question. The guidance raised, you really factored in our increasing confidence in the outlook, which is based upon the strong bookings along with the contributions from the security acquisition that you just mentioned, partly offset on the earnings side by forecasted increase and some interest costs and maybe some general conservatism based on market uncertainty. But the guidance raise was a factor of the of the acquisition and increased confidence in our overall business.

當然，好問題。提出的指導意見，您確實考慮到了我們對前景的信心不斷增強，這是基於強勁的預訂以及您剛才提到的證券收購的貢獻，部分抵消了收益方面的預測增長和一些利息成本，也許基於市場不確定性的一些普遍保守主義。但指導意見的提高是收購的因素，並增強了我們對整體業務的信心。

Got it, thank you.

明白了，謝謝。

Larry Solow, CJS Securities.

拉里·索洛，CJS 證券。

Great, thank you. And first of all, Deepak, congratulations. It's been a good almost 10 year run for us working with you. And I wish you best of luck in the transition. I'm sure you're not going anywhere so fast, but best of luck to you.

太好了，謝謝。首先，迪帕克，恭喜你。我們與您的合作已經近十年了，非常順利。我祝福您在過渡期間一切順利。我確信你不會那麼快去任何地方，但祝你好運。

I guess just following up on that first question -- on that last question, just on the the acquisition, I know you increased guidance by $0.15. Just any more granularity is the acquisition like half of that increase. Most of the increase just trying to get a little more specifics on that if you can.

我想只是跟進第一個問題 - 關於最後一個問題，就收購而言，我知道您將指導意見增加了 0.15 美元。只要粒度再大一點，收購量就等於成長的一半。如果可以的話，大部分的增加只是為了獲得更多細節。

Sure, the acquisition did contribute to both the top line increase and the bottom line increase. I mentioned earlier that the acquisition is expected to be accreted to us in fiscal '25. And we probably went a little bit conservative as we get to know the business even better. But yeah, you could say that the increase in guidance was split between the acquisition as well as just a greater confidence in our own organic business.

當然，這次收購確實對營收成長和利潤成長都有貢獻。我之前提到，此次收購預計將在 25 財年完成。隨著我們對業務的了解更加深入，我們可能會變得有點保守。但是，是的，你可以說指導的增加既是因為收購，也是因為對我們自己的有機業務的更大信心。

Okay, fair. And then just on the on the on the bookings and the backlog, I think it seems like it grew about $100 million from the end of the year or over the last quarter. Can you just give us any grant? Just specifically, I imagine most of it was security what was the book to bill above one in the quarter? Was any any more color on that?

好吧，公平。然後就預訂量和積壓訂單而言，我認為它似乎比年底或上個季度增長了約 1 億美元。你能給我們任何補助嗎？具體來說，我想其中大部分是安全性的，本季帳單高於一本的書是什麼？還有更多顏色嗎？

Sure, so good, strong bookings by the security business. The book to bill was approximately one for the quarter, grew a little bit associated with some acquired backlog as well. The growth in the backlog was really entirely attributable to our security division.

當然，安全部門的預訂量非常好。待開票的書籍大約是本季的一本，也與一些積壓的訂單有關。積壓的成長實際上完全歸因於我們的安全部門。

Got you. And you mentioned the margin which I think was up a little bit year over year, roughly flat on just the basis on the, just security. But I think you did mention there was down a few sort of one timers or non-recurring things. Did I hear that correctly?

明白你了。您提到了利潤率，我認為同比略有上升，僅在安全性的基礎上大致持平。但我認為你確實提到了一些單一計時器或非重複性的事情。我沒聽錯嗎？

Really, the main item that adversely impacted our operating margin, both in security and in opto and then of course, we're playing, the OSI was FX, with the weakening dollar that had an adverse effect on us this quarter and not to an amount. But we were able to absorb all that and still report what we believe to be very strong results. So I think there's some upside to that based upon what happens in FX in the future.

確實，對我們的營業利潤率產生不利影響的主要項目，無論是在安全方面還是在光電方面，當然，我們正在玩的 OSI 是外匯，美元疲軟對我們本季度產生了不利影響，而不是對數量。但我們能夠吸收所有這些，並且仍然報告我們認為非常強勁的結果。因此，我認為根據未來外匯市場的情況，這有一些好處。

Got you. And just on the, on the service portion, I know nice increase. I think revenue grew 11% again. That's mostly security, I think. Do we expect that service kind of piece to continue to kind of perhaps even grow faster than product revenue? Well, assuming you don't get much -- hopefully, you get big, larger deals going forward too. But, in the near term, so that service piece sort of maybe grow faster as some of these contracts -- some of these new installed things come off warranty and whatnot and you get more of that service piece kicking in. Is that sort of fair to say?

明白你了。就服務部分而言，我知道有很大的成長。我認為收入再次增長了 11%。我認為這主要是為了安全。我們是否預期服務類業務的成長速度甚至可能快於產品收入的成長？好吧，假設你沒有得到太多——希望你未來也能得到更大的交易。但是，在短期內，隨著其中一些合約的出現，服務部分可能會增長得更快——其中一些新安裝的東西超出了保固期等等，你會得到更多的服務部分。這樣說公平嗎？

Larry, excellent insight and good question. You're right, our product revenue growth was far superior to our revenue growth last year. And even in the Q1, as we've been fulfilling some of these large contracts. But as we do fulfill them and they start rolling off of warranty, the service revenue really significantly increases. So you're right, there's a very good chance that our service revenue growth, recurring revenue will grow as we balance of the year at a faster clip than our product revenue. Now, of course, we hope to get some new very nice size product revenue deals too and fully expect we will. But you're right, we do expect to see an acceleration of our service revenue growth.

拉里，出色的洞察力和好問題。你是對的，我們的產品收入成長遠高於去年的收入成長。即使在第一季度，我們也一直在履行其中一些大型合約。但當我們確實滿足了這些要求並且他們開始停止保固時，服務收入確實顯著增加。所以你是對的，隨著我們的年度餘額成長，我們的服務收入成長、經常性收入很有可能以比產品收入更快的速度成長。當然，現在我們也希望獲得一些新的非常好的產品收入交易，並且完全期望我們會這麼做。但你是對的，我們確實期望看到我們的服務收入成長加速。

Got it. And then just so I can squeeze one more in just on the opto piece. I know you mentioned still some inventory management. But actually, I think it looks like if we kind of adjust out for the intersegment sales. You have some pretty nice growth. I think revenue would have been grew 8% right? All in there on an external basis is that, which is a pretty nice growth rate. Do you expect that to continue through the year? And the second part of the question, it looks like margin was a little offset and that was a little bit down. Anything to read into that? Thanks.

知道了。然後我就可以在光電片上再擠一個。我知道您也提到了一些庫存管理。但實際上，我認為如果我們對部門間銷售進行調整的話。你有一些相當不錯的成長。我認為收入會成長 8%，對嗎？從外部來看，這是一個相當不錯的成長率。您預計這種情況會持續一整年嗎？問題的第二部分，看起來利潤率有點偏移，而且有點下降。有什麼值得讀的嗎？謝謝。

Sure. Alan, again. So good questions. Sort of two things on the opto. On the revenues, you're right, the 8% external revenue growth was fantastic. I think we're still seeing some inventory right sizing and corrections by our customers. So I think that number will moderate here as we move into Q2. But as we move into the second half of the year, we expect stronger sales growth in opto. In terms of the margin, the margin impact on opto similar to securities in some sense was impacted by FX, when we put some notable FX in opto. Outside of that, our operating income and opto increased as well. So we would expect to see improved operating profits in the opto business particularly as we hit the back half of the year as well.

當然。艾倫，又來了。這麼好的問題。光電器件上有兩件事。就收入而言，你是對的，8% 的外部收入成長非常棒。我認為我們仍然看到客戶對庫存進行了一些調整和修正。因此，我認為隨著我們進入第二季度，這個數字將會放緩。但隨著進入下半年，我們預計光電領域的銷售成長將更加強勁。就保證金而言，當我們將一些值得注意的外匯放入光電中時，對光電的保證金影響在某種意義上類似於證券，受到外匯的影響。除此之外，我們的營業收入和光電也有所增加。因此，我們預期光電業務的營業利潤將會改善，特別是在今年下半年。

Got it. Thanks for all the call, I appreciate it. And good luck, again, Deepak. Thanks.

知道了。感謝大家的來電，我很感激。再次祝你好運，迪帕克。謝謝。

Christopher Glynn, Oppenheimer.

克里斯托弗·格林，奧本海默。

Thanks. First, Deepak, congratulations on your pending transition and the success of the company here. I had a question on the opto segment. Are you seeing any end markets -- as you try to look through reshoring near shoring and inventory adjustments, which you know that pattern must be getting a little long in the tooth, you see any actual like end demand or customer production, start to see any cyclical recovery?

謝謝。首先，Deepak，恭喜您即將完成的過渡以及公司在這裡的成功。我有一個關於光電部分的問題。您是否看到任何終端市場 - 當您嘗試查看近岸回流和庫存調整時，您知道這種模式必須有點過時，您會看到任何實際的終端需求或客戶生產，開始看到有週期性復甦嗎？

Well, if I understand your question, we don't see any end of any of our big products in opto. Is that what the question --

好吧，如果我理解你的問題，我們認為我們的光電大產品不會有任何終結。這就是問題所在嗎--

Any end market starting to move favorably from a cyclical perspective?

從週期性角度來看，終端市場是否開始朝有利的方向發展？

Yeah. We are -- you want to answer? I didn't understand it.

是的。我們是──你想回答嗎？我不明白。

Sure. Chris, this is Alan. Yeah, we are seeing some strength in defense. So we're seeing some strength in the defense markets. Maybe some continued softness in the in the medical markets with OEMs, but overall probably strength in the defense and the other markets being a bit more neutral.

當然。克里斯，這是艾倫。是的，我們看到了防守方面的一些實力。所以我們看到國防市場有一些實力。原始設備製造商的醫療市場可能會持續疲軟，但國防市場和其他市場的整體實力可能會比較中性。

Just to just to add on it. Now that I understand it, again, even in the opto area, we have a very good product line support for the defense business. And as there is more unrest in the world, that puts a little bit more requirement for opto electronic products for various defense equipment that is being asked for in these places. So we look at it that our opto defense business has seen some good pipeline growth and looks like good forecast going forward.

只是為了添加它。現在我明白了，即使在光電領域，我們也為國防業務提供了非常好的產品線支援。隨著世界各地的動盪加劇，這些地方對各種國防設備的光電產品提出了更高的要求。因此，我們認為我們的光電防禦業務已經出現了一些良好的管道成長，並且看起來未來前景良好。

Great, thank you for that. And on the -- putting the acquisition aside, on the organic component of the raised revenue guidance, is that more reflecting the pacing of Mexico or the other international or some of the activity on the normal kind of shorter lead time projects?

太好了，謝謝你。撇開收購不談，就提高的收入指導的有機組成部分而言，這是否更多地反映了墨西哥或其他國際國家的節奏，或者正常類型的較短交付時間項目的一些活動？

Sure, Chris, good question. This is Alan. It's really more on the other part of the business. I wouldn't say any of our increase really relates to Mexico. It's much more the other strong business that we do throughout the world in our various product lines in the security business.

當然，克里斯，好問題。這是艾倫.實際上更多的是業務的其他部分。我不會說我們的成長確實與墨西哥有關。這更是我們在全球透過安全業務的各種產品線所進行的另一項強大業務。

Great, thank you. That's all I've got.

太好了，謝謝。這就是我所擁有的一切。

(Operator Instructions) Jeff Martin, Roth Capital Partners.

（操作員說明）Jeff Martin，Roth Capital Partners。

Thank you. Good morning, Deepak and Alan. I wanted to dive in a little more on aviation. It was interesting that you talked about remote monitoring capabilities. Do you see that being a near-term driver or is that more of an intermediate to longer-term driver?

謝謝。早上好，迪帕克和艾倫。我想更深入地了解航空。有趣的是，您談到了遠端監控功能。您認為這是近期的驅動因素還是中長期的驅動因素？

I think it's a question of intermediate to longer term. We have some pilot projects already in the making. And just like what we did in the cargo side in the turnkey business, these kind of products take some time. And we had a control room that we are doing remote monitoring of the employee screening. We are looking at some, talking to some airports for their employee screening. So the answer is it's a longer term. And again, we think that this is a good potential and we are capable of doing it. We have the strength and the technology behind it learning from the cargo side, so that this looks like a good product line to -- a good product to go after.

我認為這是一個中長期的問題。我們已經在製定一些試點計畫。就像我們在交鑰匙業務的貨運方面所做的那樣，此類產品需要一些時間。我們有一個控制室，我們正在對員工篩選進行遠端監控。我們正在關註一些機場，並與一些機場洽談對員工進行篩選。所以答案是這是一個更長的期限。再說一次，我們認為這是一個很好的潛力，我們有能力做到這一點。我們擁有向貨運方面學習的實力和技術，因此這看起來是一個很好的產品線——一個值得追求的好產品。

Okay. And then respect -- with respect to the RF technology acquisition, help us understand strategically how RF fits into your existing product line, how much market opportunity this might open up? Is this something that you felt was lacking within your product portfolio that you needed to pursue? And then secondarily, could you just generally comment on the M&A environment, if there's an acceleration potentially forthcoming for us? I know you've been opportunistic with your M&A historically, but just curious if you expect M&A to be a more prominent contributor in the next couple of years?

好的。然後尊重－關於射頻技術的收購，幫助我們從策略上理解射頻如何融入你們現有的產品線，這可能會帶來多少市場機會？這是您認為您的產品組合中缺少但需要追求的東西嗎？其次，如果我們可能會加速併購，您能否對併購環境進行一般性評論？我知道您在併購方面歷來都是機會主義的，但只是好奇您是否期望併購在未來幾年中成為更突出的貢獻者？

Good question. First, the answer to your first question, this particular acquisition was a product line that is not in other products. We looked at that as a complementary, because we cater to the same customers both domestically and internationally. So we looked at it and said this technology fits very well into a broader portfolio, so that we can offer a broader service and be able to get to customers where this company had the product. And by the way, they have the proprietary products that they can sell, but they don't have the size.

好問題。首先，回答你的第一個問題，這次收購是其他產品中沒有的產品線。我們將其視為一種補充，因為我們在國內和國際上都迎合相同的客戶。因此，我們研究了它，並表示這項技術非常適合更廣泛的產品組合，這樣我們就可以提供更廣泛的服務，並能夠接觸到該公司擁有該產品的客戶。順便說一句，他們有可以銷售的專有產品，但他們沒有規模。

We have the size, and we have the infrastructure globally. So this fitted very well into it that we could go back and go to a broader base and grow the business. Reverse of that, there are certain customers where we think that now that we are in that we can sell some of the other products that we have and into the same customer base. So that way it gives us what we call one plus one is more than two and we can go grow the business as it grows.

我們有規模，也有全球基礎建設。因此，這非常適合我們可以回去並進入更廣泛的基礎並發展業務。相反，對於某些客戶，我們認為現在我們可以向同一客戶群銷售我們擁有的一些其他產品。這樣一來，我們就可以實現所謂的一加一大於二，我們可以隨著業務的成長而發展。

Thank you for that. What with respect to the second part of that question M&A, going forward? It seems like you've got significant potential to layer in leverage in the model from both the sales and manufacturing side of things. Is that something you perceive being more prominent contributor going forward?

謝謝你。關於該問題併購問題的第二部分，未來如何？看起來您在模型中從銷售和製造方面都具有巨大的潛力。您認為這是未來更突出的貢獻者嗎？

We've always looked at it. Like Alan mentioned, we have a good strong balance sheet. We have a very big focus to look at it, but we are very selective. It must make sense one plus one more than two. We continue to look at it, are there opportunities. We are not going to say it specifically, but we keep looking at a broader area all the time. And to answer your question, focus is going to be more focused on the security side than the other side, but we also look at the side.

我們一直都在關注它。正如艾倫所提到的，我們擁有強大的資產負債表。我們有一個非常大的重點來關注它，但我們也非常有選擇性。一加一大於二一定有意義。我們繼續看，有沒有機會。我們不會具體說，但我們一直在關注更廣泛的領域。為了回答你的問題，重點將更多地集中在安全方面而不是其他方面，但我們也會專注於側面。

Great. And then last one for me, Alan, if you could comment a little more detail on the guidance relative to maybe a shift, push the ride of your free cash flow expectations. I mean, you do have significant working capital to unwind here. But you just curious if you can quantify perhaps the EPS impacts, current guidance versus previous guidance with respect purely to the interest expense?

偉大的。最後一個對我來說，艾倫，如果你能就與可能的轉變相關的指導意見發表更多細節，推動你的自由現金流預期的發展。我的意思是，你確實有大量的營運資金可以在這裡放鬆。但您只是好奇是否可以量化每股​​收益的影響、當前的指導與先前的指導相比純粹的利息支出？

Yeah, good question, Jeff. I would say that there was probably a 5% to 10% impact to the additional borrowings and the cash flow moving a little bit to the right to our overall EPS guidance that we just provided, which compared to what we provided in our previous call.

是的，好問題，傑夫。我想說的是，與我們之前的電話會議中提供的相比，額外借款和現金流量可能對我們剛剛提供的總體每股收益指引產生了 5% 到 10% 的影響。

Very helpful. Thank you so much.

非常有幫助。太感謝了。

Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Deepak Chopra for any further remarks.

謝謝。今天節目的問答環節到此結束。我想將程式交還給 Deepak Chopra 以供進一步評論。

I want to thank everybody for listening to us, and I want to thank all the employees and our customers for trusting in us. And I'm looking forward to continued growth and I'm there to support the management of OSI. Thank you.

我要感謝大家傾聽我們的聲音，感謝所有員工和顧客對我們的信任。我期待著持續成長，並且我將支持 OSI 的管理。謝謝。

Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

感謝女士們、先生們參加今天的會議。這確實結束了該程式。您現在可以斷開連線。再會。