OSI Systems Inc (OSIS) 2025 Q2 法說會逐字稿

Hello, everyone and welcome to the OSI Systems Inc second quarter, 2025 conference call.

大家好，歡迎參加 OSI Systems Inc 2025 年第二季電話會議。

(Operator Instructions) advising your hand is raised to withdraw your question. And please be advised that today's conference is being recorded.

(操作員指示)建議您舉手撤回您的問題。請注意，今天的會議正在錄音。

Now it's my pleasure to turn the call over to the Executive Vice President and Chief Financial Officer of OSI, Alan Edrick. Please proceed.

現在我很高興將電話轉給 OSI 執行副總裁兼財務長 Alan Edrick。請繼續。

Thank you. Good morning, and thank you for joining us. I'm Alan Edrick, Executive Vice President and CFO of OSI Systems, and I'm here today with Ajay Mehra, OSI's new President and CEO. Welcome to the OSI Systems Fiscal '25 Second Quarter Conference Call.

謝謝。早安，感謝您加入我們。我是 OSI Systems 的執行副總裁兼財務長 Alan Edrick，今天和我一起在場的是 OSI 的新總裁兼執行長 Ajay Mehra。歡迎參加 OSI Systems 25 財年第二季電話會議。

We are pleased that you can join us as we review our financial and our operational results.

我們很高興您能加入我們，共同審查我們的財務和營運表現。

Earlier today, we issued a press release announcing our fiscal '25 second 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.

今天早些時候，我們發布了一份新聞稿，宣布了我們 25 財年第二季的財務表現。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》中關於此類前瞻性陳述的安全港條款。 。

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 statements based upon subsequent events or new information or otherwise.

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，我們將同時參考 GAAP 和非 GAAP 財務指標來描述公司的表現。有關公司業績的非 GAAP 指標和可比 GAAP 指標以及這些數字的定量調整的更多信息，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 second quarter of fiscal '25 and then turn the call over to Ajay 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 2025.

我將首先對我們 25 財年第二季的財務表現進行高層總結，然後將電話轉給 Ajay 討論我們的業務和營運表現。然後，我們將更詳細地介紹我們的財務業績，並討論 2025 財年的最新展望。

Our second quarter financial results were excellent with record Q2 revenues and operating income at the security division and solid performance by the Opto division. We are excited by the momentum across our business and are confident that we are well positioned for the second half of the fiscal year.

我們第二季的財務表現非常出色，安全部門的第二季營收和營業收入創下了創紀錄，而光電部門的表現也十分穩健。我們對整個業務的發展勢頭感到非常興奮，並有信心為本財年下半年做好充分準備。

So let's start with a high-level summary of our fiscal '25 Q2 results. First, revenues increased 12% year-over-year to a Q2 record of $420 million, with growth in each of the three divisions highlighted by the 16% year-over-year revenue increase in our Security division.

那麼，讓我們先對 25 財年第二季的業績做一個概括總結。首先，第二季營收年增 12%，達到創紀錄的 4.2 億美元，三個部門均有成長，其中安全部門營收年增 16%。

Second, the strong revenue growth led to record Q2 non-GAAP adjusted earnings per share of $2.42. Third, bookings were significant. And with a book-to-bill ratio of 1.2 in the quarter, we finished the quarter with a record backlog of more than $1.8 billion. Our strong backlog and robust pipeline of opportunities provide good visibility going forward.

其次，強勁的營收成長推動第二季非公認會計準則調整後每股盈餘達到創紀錄的 2.42 美元。第三，預訂量很大。本季的訂單出貨比為 1.2，我們本季的積壓訂單量創下了超過 18 億美元的紀錄。我們強大的積壓訂單和強勁的機會管道為我們的未來提供了良好的可視性。

And fourth, we generated operating cash flow of $53 million in Q2 as $76 million jump over the same quarter in the last fiscal year. This performance was driven by strong profits and an improvement in working capital metrics.

第四，我們第二季的營運現金流為 5,300 萬美元，較上年同期增加 7,600 萬美元。這一業績得益於強勁的利潤和營運資本指標的改善。

As you may know, we had mentioned in our previous call that our strong operating cash flow dynamics was expected to return in '25. Before diving more deeply into our financial results and discussing our updated outlook for the full fiscal year, I will turn the call over to Ajay.

您可能知道，我們在先前的電話會議中提到，我們強勁的營運現金流動態預計將在 25 年恢復。在深入探討我們的財務表現並討論我們對整個財年的最新展望之前，我將把電話轉給阿賈伊。

Thank you, Alan, and thank you everyone for joining us today. I'm pleased to join this call as CEO for the first time after assuming the role on January 1. It is gratifying to report another record breaking second quarter for fiscal 2025 where we achieve revenues of $420 million representing a 12% growth year-over-year and strong earnings.

謝謝你，艾倫，也謝謝大家今天的到來。我很高興自 1 月 1 日擔任執行長以來第一次以執行長的身份參加這次電話會議。令人欣慰的是，2025 財年第二季我們再次創下了新紀錄，實現營收 4.2 億美元，年增 12%，獲利強勁。

The quarterly performance was driven primarily by excellent execution in security and solid results from the Optoelectronics and Manufacturing division. Our continued healthy backlog, as Alan pointed out, an expanding opportunity pipeline provides us confidence for robust growth in the second half and a fiscal year and positions us well for the future.

季度業績主要得益於安全方面的出色表現以及光電子和製造部門的穩健業績。正如艾倫指出的那樣，我們持續健康的積壓訂單和不斷擴大的機會管道為我們提供了下半年和財年強勁增長的信心，並為我們的未來做好了準備。

Let me discuss each division's performance, starting with Security. The Security division delivered Q2 revenues of $290 million representing a 60% growth over Q2 in the prior year. Bookings were also excellent as we achieved a book-to-bill ratio of approximately 1.2 for the quarter.

讓我討論一下每個部門的表現，從安全部門開始。安全部門第二季營收為 2.9 億美元，較去年同期成長 60%。預訂情況也十分出色，本季我們的訂單出貨比達到約 1.2。

During Q2, we continued to deliver on programs and numerous locations, including airports, ports, borders and critical infrastructure. In addition, our turnkey projects are performing well in Albania, Puerto Rico, Guatemala and Uruguay, which as we mentioned before, commenced earlier last quarter.

第二季度，我們繼續履行專案職責並涵蓋眾多地點，包括機場、港口、邊境和關鍵基礎設施。此外，我們在阿爾巴尼亞、波多黎各、瓜地馬拉和烏拉圭的交鑰匙工程表現良好，正如我們之前提到的，這些工程於上個季度初開始。

During the quarter, we received significant orders for both aviation and cargo products and announced a few of these wins shortly after the quarter ended. First, we announced a $27 million award to provide checkpoint and whole baggage inspection products for an international airport.

在本季度，我們收到了大量航空和貨運產品的訂單，並在季度結束後不久宣布了其中一些訂單。首先，我們宣布撥款2700萬美元為國際機場提供檢查站和全行李檢查產品。

The products to be provided include RTT 110, explosive detection systems for screening whole baggage, Orion 920 CT checkpoint screening systems, which are integrated with our Rapiscan trade return systems. In addition, we will supply our trace and other screening systems for air cargo.

即將提供的產品包括用於檢查整個行李的爆炸物檢測系統 RTT 110、Orion 920 CT 檢查站檢查系統，這些系統與我們的 Rapiscan 貿易退貨系統整合在一起。此外，我們還將提供空運貨物的追蹤和其他篩檢系統。

This award is the latest in a string of major international airport awards received in the past few quarters. which indicate promising growth for our aviation security product revenues going forward.

該獎項是過去幾季以來機場獲得的一系列重大獎項中最新的一個。這表明未來我們的航空安全產品收入將有可觀的成長。

Second, we announced an $81 million order from an international customer for Eagle M60 mobile high-energy cargo and vehicle inspection systems for border security applications. Third, we announced a $32 million award from an international customer for M60s, including service and support for port and border security applications.

其次，我們宣布收到一份國際客戶價值 8,100 萬美元的訂單，要求訂購用於邊境安全應用的 Eagle M60 行動高能貨物和車輛檢查系統。第三，我們宣布從國際客戶處獲得了一筆價值 3,200 萬美元的 M60 合同，包括為港口和邊境安全應用提供的服務和支援。

Expanding our install base among aviation and border security customers, not only broadens our hardware install base but also significantly boost our potential for future recurring service revenues. Our aviation contracts open up avenues for additional revenue through follow up training, hardware maintenance, spare parts and upgrades to our automated threat detection algorithms.

擴大我們在航空和邊境安全客戶中的安裝基礎，不僅拓寬了我們的硬體安裝基礎，而且還顯著提升了我們未來經常性服務收入的潛力。我們的航空合約透過後續培訓、硬體維護、備件和自動威脅偵測演算法升級開闢了額外收入的管道。

Similarly, some of our border and cargo security clients, aside from seeking these types of services mentioned also utilize a proprietary search scan, multi-site integration platform. This platform allows us to increase future revenues through new user licenses and software upgrades. Our inspection systems have a typical life cycle of seven to 10 years, thereby creating predictable stream of ongoing recurring service revenues.

同樣，我們的一些邊境和貨物安全客戶除了尋求上述類型的服務外，還使用專有搜尋掃描、多站點整合平台。該平台使我們能夠透過新的用戶許可和軟體升級來增加未來的收入。我們的檢查系統的典型生命週期為七到十年，從而創造可預測的持續經常性服務收入流。

Lastly, we announced a $23 million order to support deploying and integrating long range radio frequency critical communication systems. As part of the award, we're expected to provide essential hardware and technical services to enhance the US government's strategic RF communication capabilities in a critical region.

最後，我們宣布了一項價值 2300 萬美元的訂單，用於支援部署和整合遠端射頻關鍵通訊系統。作為合約的一部分，我們有望提供必要的硬體和技術服務，以增強美國政府在關鍵地區的戰略射頻通訊能力。

This is an excellent win for us in our recently acquired our solutions business. Furthermore, we are optimistic that we can enhance this business in the marketplace by utilizing our global reach across regions and offering solutions to customers with critical security communication and surveillance requirements.

這對我們最近收購的解決方案業務來說是一個極大的勝利。此外，我們樂觀地認為，我們可以利用我們跨地區的全球影響力，為有關鍵安全通訊和監控需求的客戶提供解決方案，從而增強該業務在市場上的地位。

Our security pipeline includes a wide range of opportunities, both internationally and domestically. Moreover, domestic growth would accelerate driven by the new administration's national security policies. In both major political parties supporting enhanced for security, we are well positioned to play a key role

我們的安全管道涵蓋了國內外的廣泛機會。此外，在新政府的國家安全政策的推動下，國內成長將會加速。在兩大政黨都支持加強安全的情況下，我們有能力發揮關鍵作用

A nonintrusive and specie technologies are ideally suited to bolster security at airports, ports, waters and other critical infrastructure points. Overall, while product revenue growth has been robust, we expect service revenue as a percentage of overall security revenues to increase and these historically have a higher margin.

非侵入式和物種技術非常適合加強機場、港口、水域和其他關鍵基礎設施點的安全。整體而言，雖然產品收入成長強勁，但我們預期服務收入在整體安全收入中的百分比將會增加，而且從歷史上看，服務收入的利潤率更高。

Moving on to Optoelectronics. Optoelectronics delivered another impressive quarter on modest top line growth, achieving a quarterly record with $101 million in revenues. This record was in part driven by our flex circuit operation, which serves consumer and medical technology customers was a major contributor to Q2 growth. Based on Opto's recent trends and our dialogues with key OEMs, we believe that the phase where many customers were adjusting inventory levels and tempering demand forecast is now mostly in the past.

繼續討論光電子學。光電業務本季再創佳績，營收溫和成長，實現季度營收 1.01 億美元，創歷史新高。這項記錄在一定程度上得益於我們的柔性電路業務，該業務為消費者和醫療技術客戶提供服務，是第二季度成長的主要貢獻者。根據 Opto 最近的趨勢以及我們與主要 OEM 的對話，我們認為許多客戶調整庫存水準和調整需求預測的階段現在已基本過去。

During the quarter. We announced an $11 million order to provide critical electronics subassemblies for a long-standing health care OEM customer. We also announced an order for $6 million from a different health care OEM to provide optical sensors for its patient care devices.

在本季度。我們宣布了一項價值 1100 萬美元的訂單，為一家長期醫療保健 OEM 客戶提供關鍵的電子組件。我們也宣布了另一家醫療保健OEM廠商的價值600萬美元的訂單，為其病人照護設備提供光學感測器。

These orders exemplify the kind of repeat business we consistently secure from established customers. Accounting for approximately 80% of this division's total revenue. We are actively working with clients looking to diversify away from China by relocating component or value added manufacturing to our international facilities.

這些訂單體現了我們始終如一地從老客戶那裡獲得回頭客的品質。約佔該部門總收入的80%。我們正積極與客戶合作，尋求透過將零件或增值製造轉移到我們的國際工廠來實現業務從中國轉移。

Given our current demand visibility, we anticipate the division will deliver a robust performance in the second half of the fiscal year. And finally, let's discuss the health care division where Q2 revenues grew 7% year-over-year with improving profitability.

鑑於我們目前的需求可見性，我們預計該部門將在本財年下半年取得強勁業績。最後，讓我們討論一下醫療保健部門，該部門第二季度營收年增 7%，獲利能力也有所提高。

Although less than we typically see, it was nice to see a return to growth in health care. Indicative of a pickup in order activity from hospitals and solid execution of our sales strategy built around a clinical workflow and predictive analytics solutions.

儘管比我們通常看到的要少，但看到醫療保健恢復成長仍然是令人欣慰的。這表明醫院的訂單活動有所回升，並且我們圍繞臨床工作流程和預測分析解決方案建立的銷售策略得到了穩步執行。

During the quarter, we announced a $6 million order from a US based hospital system to provide patient monitoring solutions and related supplies. We expect to provide a range of patient monitoring solutions and accessories to support this customer and others.

本季度，我們宣布了來自美國醫院系統的價值 600 萬美元的訂單，以提供患者監測解決方案和相關用品。我們希望提供一系列病人監測解決方案和配件來支援該客戶和其他客戶。

While we continue to invest in developing new products including our next generation platform, we are intently focused on driving growth and improving the overall operating performance of our security division.

在我們繼續投資開發包括下一代平台在內的新產品的同時，我們專注於推動成長並提高安全部門的整體營運績效。

On a personal note, I'm honored and excited to begin the President and CEO role at OSI. The company has a critical mission to support the global community safety, security and wellbeing. Having been part of this company's journey, I have seen the potential in all of our operational divisions and the talented individuals who have been key to our success. I look forward to continuing OSI's growth.

就我個人而言，我很榮幸能夠擔任 OSI 的總裁兼執行長一職。該公司肩負著支持全球社區安全、保障和福祉的重要使命。作為這家公司發展歷程的一部分，我看到了我們所有營運部門的潛力以及對我們成功至關重要的優秀人才。我期待 OSI 繼續發展。

Overall, we are pleased with OSI's first half look and look forward to an even stronger performance in the second half. I will now return the call to Alan to discuss our financial performance further before we open the call for questions. Thank you.

總體而言，我們對 OSI 上半年的表現感到滿意，並期待下半年有更強勁的表現。在我們開始提問之前，我現在將回電給艾倫，進一步討論我們的財務表現。謝謝。

Thank you, Ajay. Now I will review in greater detail the financial results for the fiscal '25 second quarter. As previously mentioned, our Q2 revenues were up 12% compared with revenues in the second quarter of the prior fiscal year. This increase was primarily driven by our largest division security.

謝謝你，阿傑。現在我將更詳細地回顧 25 財年第二季的財務表現。如前所述，我們的第二季營收與上一財年第二季的營收相比成長了 12%。這一增長主要得益於我們最大的部門安全。

The 16% year-over-year increase in Q2 Security Division revenues was fueled by growth in aviation checkpoint product sales, including strong growth in trace detection system sales. Q2 revenues included continued shipments from the $200 million-plus cargo contract and also from our two contracts with Sadana in Mexico.

安全部門第二季營收年增 16%，這得益於航空檢查站產品銷售的成長，其中包括痕跡偵測系統銷售的強勁成長。第二季的收入包括價值 2 億多美元的貨運合約的持續出貨量，以及與墨西哥 Sadana 簽訂的兩份合約的出貨量。

In addition, the business inquired, acquired in fiscal Q1 is gaining momentum and contributed to the Security division revenues nicely.

此外，第一財季收購的業務發展勢頭強勁，為安全部門的收入做出了良好貢獻。

Third-party Opto sales were solid, delivering a 4% year-over-year increase, driven by growth from our Flex business as well as others. The rightsizing of inventory levels, as Ajay mentioned, with our opto customers is largely complete and we anticipate an acceleration of the revenue growth rate in the Opto division as early as Q3.

第三方光電產品銷售穩健，年增 4%，這主要得益於我們的 Flex 業務以及其他業務的成長。正如 Ajay 所提到的，我們與光電子客戶的庫存水準調整工作已基本完成，我們預期光電子部門的營收成長率最早將在第三季加速。

And the Healthcare division returned to growth, reporting a 7% increase in year-over-year sales in Q2. The fiscal '25 Q2 gross margin of 35.1% was solid. Our gross margin in Q2 last year of 37.9% was the strongest in any quarter of fiscal '24, due to a very favorable product mix and security.

醫療保健部門恢復成長，第二季銷售額年增 7%。25 財年第二季的毛利率為 35.1%，表現穩健。由於非常有利的產品組合和安全性，我們去年第二季的毛利率為 37.9%，是 24 財年各季度中最高的。

Our gross margin will generally fluctuate from period to period based on revenue mix and volume impacts of changes in supply chain cost X and inflation among other factors. Moving to operating expenses. SG&A expenses were $71 million or 16.8% of sales compared to $72 million or 19.2% of sales in Q2 of the prior year.

我們的毛利率通常會根據收入組合、供應鏈成本變化的影響以及通貨膨脹等因素而在不同時期波動。轉向營運費用。銷售、一般及行政開支為 7,100 萬美元，佔銷售額的 16.8%，而去年同期第二季為 7,200 萬美元，佔銷售額的 19.2%。

The 240-basis point improvement resulted from leveraging our fixed cost structure and maintaining strong discipline in managing such costs. We work diligently across each of our divisions to improve efficiency and manage our SG&A cost structure.

240 個基點的改善得益於我們利用固定成本結構並在管理此類成本方面保持嚴格的紀律。我們各部門都勤奮努力地提高效率並管理銷售、一般和行政費用 (SG&A) 成本結構。

Research and development expenses in Q2 of fiscal '25 were $18 million or 4.3% of revenues compared to $16 million or 4.4% of revenues in the same prior year quarter. We continue to dedicate considerable resources to R&D, particularly in our Security and Healthcare divisions as we remain focused on innovative product development, which we view as vital to the long-term successes of our businesses. We recorded a $0.2 million restructuring and other charges in Q2 of fiscal '25 compared to $1 million in the same quarter of the prior year.

25 財年第二季的研發費用為 1,800 萬美元，佔營收的 4.3%，去年同期為 1,600 萬美元，佔營收的 4.4%。我們繼續投入大量資源進行研發，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 財年第二季記錄了 20 萬美元的重組和其他費用，而去年同期為 100 萬美元。

Moving to interest and taxes. Net interest and other expenses in Q2 fiscal '25 increased to $8.6 million from $6.5 million in Q2 fiscal '24 and primarily due to a higher amount of borrowings associated with the investment in working capital for the sales growth and acquisition completed in Q1 and stock buyback, 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。2025 財年第二季的淨利息和其他支出從2024 財年第二季的650 萬美元增至860 萬美元，主要原因是與第一季完成的銷售成長和收購以及股票回購相關的營運資本投資相關的借款金額增加部分抵消了第一季發行的可轉換票據的有利影響，這些票據部分用於償還更高成本的借款。

Our reported effective tax rate under GAAP was 23.3% in Q2 of fiscal '25 compared to 20.2% in Q2 of last year. However, excluding the impact of discrete tax benefits, our normalized effective tax rate, which is the rate reflected in our calculation of non-GAAP adjusted EPS was 24.0% in Q2 fiscal '25 compared to 25.8% in Q2 of '24.

根據 GAAP，我們報告的 25 財年第二季有效稅率為 23.3%，而去年同期為 20.2%。但是，不包括單獨稅收優惠的影響，我們的標準化有效稅率，即我們計算非GAAP 調整後每股收益時反映的稅率，在25 財年第二季度為24.0%，而24 年第二季度為25.8 %。

I'll now turn to a discussion of our non-GAAP adjusted operating margin. Overall, our adjusted operating margin in the second quarter of fiscal '25 was a solid 15.0%, up sequentially from 10.3% in Q1. This quarter faced a tough comp as Q2 in fiscal '24 was 15.5%, which was the strongest adjusted operating margin quarter of FY '24.

現在我將討論我們的非公認會計準則調整後的營業利潤率。整體而言，我們 25 財年第二季的調整後營業利潤率穩定達到 15.0%，較第一季的 10.3% 有所上升。本季面臨嚴峻的競爭情勢，因為 24 財年第二季的利潤率為 15.5%，這是 24 財年調整後營業利潤率最高的一個季度。

The Q2 adjusted operating margin in the Security division was 19.9%, although down year-over-year due to this tough comp, this represented the second strongest adjusted operating margin in the Security division's history. Due to a ramp-up of newer Opto operations, the Opto division's adjusted operating margin was 12.8% in the second quarter of fiscal '25 compared to 13.4% on last year's Q2.

安全部門第二季調整後營業利潤率為 19.9%，儘管由於業績不佳導致同比下降，但這代表著安全部門歷史上第二高的調整後營業利潤率。由於新的 Opto 業務的擴大，Opto 部門的調整後營業利潤率在 25 財年第二季為 12.8%，而去年第二季為 13.4%。

We anticipate nice adjusted operating margin expansion in Opto in the second half of fiscal '25. The Healthcare division's adjusted operating margin while wider than we would like, still increased 300 basis points year-over-year.

我們預計 Opto 的調整後營業利潤率將在 25 財年下半年實現良好的擴大。醫療保健部門的調整後營業利潤率雖然高於我們的預期，但仍比去年同期增加了 300 個基點。

Moving to cash flow. Q2 marked a return to significant cash flow with cash provided by operations of $53 million. CapEx in the '25 second fiscal quarter was $5.5 million, while depreciation and amortization expense in fiscal Q2 was $10.6 million. We saw a nice improvement in DSO in Q2 and as solid collections led to a 16% reduction in DSO from Q1.

轉向現金流。第二季標誌著現金流重回大幅成長，經營活動提供的現金為 5,300 萬美元。25 財年第二季的資本支出為 550 萬美元，而財年第二季的折舊和攤提費用為 1,060 萬美元。我們在第二季度看到 DSO 有了很大的改善，並且由於穩定的收款導致 DSO 比第一季減少了 16%。

As we mentioned last quarter, our receivables and DSO are both above typical levels mainly because of the timing of billings and collections for our significant international security cargo contracts.

正如我們上個季度提到的，我們的應收帳款和 DSO 都高於正常水平，這主要是因為我們重要的國際安全貨物合約的計費和收款時間。

For these contracts, building is triggered by the achievement of significant project milestones, which are highly influenced by the customers' time line and sign off. So under GAAP, we recorded an unbilled receivable for revenue earnings and then bill and collect cash subsequent to the achievement of the relevant milestone.

對於這些合同，建設是由重大專案里程碑的實現引發的，而這在很大程度上受到客戶的時間表和簽署的影響。因此，根據 GAAP，我們記錄了未開立應收帳款作為收入，然後在實現相關里程碑後開立發票並收取現金。

Note, while unbilled receivables are elevated relative to the historical levels, and represent a significant source of future cash flow, the balance decreased by 19% at the end of Q2 versus the end of Q1. We continue to anticipate operating cash flow could be significant in the second half of fiscal '25.

請注意，雖然未開立發票應收帳款相對於歷史水準較高，且代表著未來現金流的重要來源，但第二季末的餘額較第一季末減少了 19%。我們繼續預計25財年下半年的經營現金流可能會很可觀。

Our balance sheet is solid with net leverage of approximately 2.1 as calculated under our credit agreement. Aside from $7.5 million of annual required principal payments under our bank term loan, the bulk of our bank debt matures in fiscal '27. We estimate over 70% of our debt was fixed versus floating at the end of Q2 of fiscal '25.

我們的資產負債表穩健，根據我們的信用協議計算，淨槓桿比率約為 2.1。除了我們的銀行定期貸款每年需要支付的 750 萬美元本金外，我們大部分的銀行債務將在 27 財年到期。我們估計，截至 25 財年第二季末，我們的 70% 以上的債務是固定的，而不是浮動的。

And finally, turning to guidance. We are increasing our fiscal '25 revenues and non-GAAP diluted EPS guidance. For the full fiscal year, we anticipate revenues in the range of $1.685 billion to $1.710 billion, increasing our guidance on year-over-year revenue growth to a range of 9.5% to 11.1%. We are also increasing FY '25 non-GAAP adjusted earnings per diluted share guidance to a range of $9.10 to $9.40 per share, representing 11.9% to 15.6% growth.

最後，談到指導。我們正在提高 25 財年營收和非 GAAP 稀釋每股盈餘預期。我們預計整個財年的營收將在 16.85 億美元至 17.10 億美元之間，並將年收入成長預期上調至 9.5% 至 11.1%。我們也將 25 財年非 GAAP 調整後每股攤薄收益預期上調至 9.10 美元至 9.40 美元之間，增幅為 11.9% 至 15.6%。

The fiscal '25 non-GAAP diluted EPS 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. We currently believe this guidance reflects reasonable estimates.

25財年非公認會計準則稀釋每股盈餘指引不包括潛在減損、重組和其他費用、收購無形資產的攤銷及其相關稅務影響，以及單獨稅和其他非經常性項目。我們目前認為該指引反映了合理的估計。

The actual impact on the company's financial results and timing changes on the expected conversion of backlog to revenues and new bookings is difficult to predict and put very significantly from the anticipated impact currently reflected in our guidance.

對公司財務表現的實際影響以及時間變化對積壓訂單向收入和新訂單的預期轉化的影響很難預測，並且與我們目前指導中反映的預期影響有很大不同。

Actual revenues and non-GAAP earnings per diluted share could also vary from the guidance indicated above due to other risks and uncertainties discussed in our SEC filings.

由於我們提交給美國證券交易委員會的文件中討論的其他風險和不確定性，實際收入和非公認會計準則每股攤薄收益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'd like to take this opportunity to thank the global OSI team for its continued dedication in supporting our customers and partners.

我們將繼續專注於業務的成長。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 OSI 全球團隊持續致力於支持我們的客戶和合作夥伴。

And at this time, we'd like to open the call to questions.

現在，我們想開始回答問題。

(Operator Instructions)

（操作員指令）

Josh Nichols with B. Riley.

喬許·尼科爾斯 (Josh Nichols) 和 B. Riley。

Yeah, thanks for taking my question and AJ congratulations on the new role. Things are off to a great start. Looking at you touched on it briefly, I think, but, well, it's early days, the new administration clearly has an increased focus on border security.

是的，感謝您回答我的問題，並祝賀 AJ 獲得新職位。一切開始都很順利。我認為你只是簡要地提到了這一點，但現在還為時過早，新政府顯然更加關注邊境安全。

Any context you could provide around the potential increase in opportunity for versus what you're currently doing on the US border front and how that could change if there's some increased allocations to the budgets for some of these three letter agencies that they are going to be doing a lot of the border security is there's an anticipated ramp up over the next few years, presumably?

您能否提供一些背景信息，說明與您目前在美國邊境方面所做的工作相比，可能帶來的機會增加，以及如果增加對這些三個字母機構的預算撥款，情況將如何變化？幾年，邊境安全工作預計會增加嗎？

Josh, this is Ajay. Thank you. So great question. It's been not even three days. But I think, as you know, that border security really is by part, is an issue. And there's been a lot of movement both on the House and on the Senate trying to reconcile the bills, which are substantially higher than what they were previously in terms of total funding.

喬希，這是阿傑。謝謝。這個問題問得真好。還不到三天。但我認為，如你所知，邊境安全確實是一個問題。眾議院和參議院都採取了巨大的行動來試圖協調這些法案，這些法案的總資金比之前的法案要高得多。

So we think with the new emphasis with the new administration, it's positive. We believe that the technology that we provide and not just the technology but some of the software like CertScan, which we're able to really go in and look to see if drugs, the wrong people are coming in is really a plus for us.

因此，我們認為，新政府的新重點是正面的。我們相信，我們提供的技術不僅僅是技術，還包括一些軟體，例如 CertScan，我們能夠真正進入並查看是否有毒品和不法之徒進入，這對我們來說確實是一個優勢。

We are the dominant player with CBP. And we feel very good as we go forward. And I think that we'll see more and more over the next three, six months but all indications from our end are positive.

我們是 CBP 的主要參與者。我們前進的步伐非常順利。我認為，在接下來的三到六個月裡，我們會看到越來越多的情況，從我們的角度來看，所有跡像都是正面的。

Thanks for the context and then just a little bit deeper. I mean, on the recent acquisition, the RF solutions business seems to be that that business is already doing pretty well. I noticed the company secured, I think a $23 million award already.

感謝您提供的背景信息，我們再深入一點。我的意思是，就最近的收購而言，射頻解決方案業務似乎已經做得很好了。我注意到該公司已經獲得了價值 2,300 萬美元的獎金。

Could you talk a little bit about some of the opportunities that you see layering this into O SI systems given that you have a much larger global sales infrastructure and the opportunity to kind of expand the revenue base relative to what it was currently doing before you acquired the business.

鑑於你們擁有更大的全球銷售基礎設施，以及相對於收購之前而言擴大收入基礎的機會，您能否談談將其納入 O SI 系統的一些機會？

I think you kind of answered your question over there because, yes, one of the advantages that this company has now is it's got the OSI's financial muscle as well as the different areas that we are in all over the world.

我想你已經回答了你的問題，因為是的，這家公司現在的優勢之一是它擁有 OSI 的財力以及我們在世界各地的不同領域。

So we definitely are going to help them. We are integrating them, working very closely. I mean, just keep in mind, they're on the defense sector, but also they're over the horizon radar, it's really crucial for border security and drug interdiction.

所以我們肯定會幫助他們。我們正在整合它們，緊密合作。我的意思是，請記住，它們位於國防部門，但它們也位於視距雷達上，這對於邊境安全和禁毒至關重要。

Keep in mind that these radars provide broad range based surveillance systems that enables tracking of aircraft, drones, surface ships and designated zones around the US border. And we feel that's an opportunity as we go forward, besides, obviously, their traditional opportunities in defense. So we are talking to the customers, and we have had a very positive response.

請記住，這些雷達提供了廣泛的監視系統，可以追蹤美國邊境周圍的飛機、無人機、水面艦艇和指定區域。我們覺得這是我們前進的一個機會，此外，顯然，這也是他們在防守方面的傳統機會。因此，我們正在與客戶進行溝通，並且得到了非常積極的回應。

Also, I think from an OSI perspective, we have customer base, which is very similar to theirs, but it's got us deeper into those customers. And more and more, we have more to discuss with them. So we're not just discussing scanning, but we're discussing how we protect the overall border, for example.

此外，我認為從 OSI 的角度來看，我們擁有與他們非常相似的客戶群，但我們對這些客戶的了解更加深入。我們有越來越多的事情要與他們討論。因此，我們不只是討論掃描，而且還討論如何保護整個邊界。

Mariana Perez Mora with Bank of America.

美國銀行的瑪麗安娜·佩雷斯·莫拉 (Mariana Perez Mora)。

Hello, everyone and thank you for taking my question. So the first one is going to be around Mexico, and I appreciate the details you gave in the prepared remarks. But like could you please describe how much of a contribution Mexico was to the quarter? And how should we think about that going forward, at least in the second half of the year? I see that book-to-bill was really strong in the quarter. And you also had like a really strong start to the year with orders. So is that enough to offset any slowdown in terms of like recognition of the Sabina contracts? Or like how should we think about that transition? Thank you.

大家好，謝謝你回答我的問題。第一個問題將圍繞墨西哥展開，我很感謝您在準備好的演講中提供的詳細資訊。但是您能否描述一下墨西哥對本季的貢獻有多大？那麼，至少在今年下半年，我們該如何看待這個問題呢？我發現本季的訂單出貨比非常強勁。而且你們今年的訂單量也開局強勁。那麼，這是否足以抵消對 Sabina 合約認可度方面的任何放緩？或者我們應該如何看待這種轉變？謝謝。

Hi, Mariana, this is Alan. Good question. The Mexico contract was a significant contributor to us in the first half of the year. In the second half of the year, it's anticipated to continue to be a significant contributor, but at a lighter amount than we saw in the second half of fiscal '24 with a very robust backlog and the strong opportunity pipeline we're effectively replacing the strong Mexico revenues that we had in Q3 and Q4, a portion thereof with non-Mexico contracts, and we feel extremely, extremely confident about that. So really a robust opportunity set.

你好，瑪莉安娜，我是艾倫。好問題。墨西哥合約對我們上半年的貢獻很大。預計今年下半年，它將繼續成為重要的貢獻者，但其貢獻程度將低於 2024 財年下半年，我們擁有非常強勁的積壓訂單和強大的機會管道，我們正在有效地取代我們在第三季度和第四季度的墨西哥收入強勁，其中一部分來自非墨西哥合同，我們對此非常有信心。這確實是一個強勁的機會。

Mexico is important to us. But as we have said, we shipped a significant amount last year, shipping a significant amount this year, but we are really well positioned for the future because we have such a strong backlog of non-Mexico business and such a strong opportunity set as well..

墨西哥對我們很重要。但正如我們所說，去年我們的出貨量很大，今年的出貨量也很大，但我們對未來確實處於有利地位，因為我們在墨西哥以外的業務積壓量很大，而且機會也很多。 ..

Thank you. And then when you think about this transition, right, especially because the early stages of this contract were mostly products. How should we think about the product versus services mix? Second quarter and probably in the like the trend towards like the next 12 months?

謝謝。然後當你考慮到這種轉變時，對的，特別是因為這個合約的早期階段主要是產品。我們該如何思考產品與服務的組合？第二季以及未來 12 個月的趨勢可能類似嗎？

So this is Ajay. I think that if you look at the product that's getting shipped, we always say that one of the things, the products that we ship leads us to recurring service revenue. So we feel really into '26 and really '27 and beyond that we're going to see some very good recurring revenue for certain risk.

這就是阿傑。我認為，如果你看一下正在運送的產品，我們總是說，其中一件事是，我們運送的產品會為我們帶來經常性的服務收入。因此，我們確實感覺到，在26年、27年及以後，我們將會看到在面臨一定風險的情況下，獲得非常好的經常性收入。

All these products have to be serviced in Mexico, for example. So that revenue will continue. And as I mentioned earlier, that service revenue has very good margins. So we're fully expecting that.

例如，所有這些產品都必須在墨西哥進行維修。這樣收入就會持續下去。正如我之前提到的，該服務收入的利潤率非常好。所以我們完全期待這一點。

And maybe to supplement that, this is Alan, we've had significant product revenue growth over the last few years. And as those products are now beginning to roll off of warranty and create service revenue, as Ajay described, we expect to see real strong service revenue growth at the higher contribution margins beginning as early as now, this sort of Q3. So it's a nice position to be in with a strong installed base that we put out there moving to this more recurring revenue at higher margin is a nice position to be in.

也許是為了補充這一點，這是艾倫，過去幾年我們的產品收入顯著增長。正如 Ajay 所描述的，隨著這些產品現在開始脫離保固期並產生服務收入，我們預計從現在開始，也就是第三季度，服務收入將真正強勁增長，貢獻利潤率也將更高。因此，我們擁有強大的安裝基礎，能夠以更高的利潤率獲得更多的經常性收入，這是一個很好的地位。

Thank you. And one more from my end. I'm just curious, like part of this like radio frequency critical communications award that you got. How much of that is like incremental to the portfolio you acquired? And how much is more like a recompete of like what the existing portfolio was?

謝謝。這是我這邊的另一個。我只是很好奇，就像您獲得的射頻關鍵通訊獎一樣。其中有多少是相對於您所收購的投資組合而言的增量？這在多大程度上更像對現有投資組合的重新競爭？

Well, I think this is there's always incremental business, but this one is new as we move forward. So we're actually looking not just to get the incremental business but get the growth, as I mentioned earlier, with having the OSI muscle behind us and being able to not just get into the defense side, but maybe also the border security side where we can see new business, and we're very focused on maintaining the business that we have, getting business, but looking at new opportunities.

嗯，我認為總是有增量業務，但這個是我們前進過程中出現的新業務。因此，我們實際上不僅希望獲得增量業務，而且希望獲得成長，正如我之前提到的那樣，借助 OSI 的力量，我們不僅可以進入國防領域，還可以進入邊境安全領域。 ，我們非常專注於維護現有業務，獲取業務，同時也尋找新的機會。

Perfect. Thank you so much for the call.

完美的。非常感謝您的來電。

Larry Solow with CJS Securities.

CJS Securities 的 Larry Solow。

Great. Thank youAjay, I welcome you, congratulate you on your new role as well. I guess, first question for you, A.J. You mentioned sort of this expanding opportunity pipeline. And you've spoken a lot about most of your kind of end markets and verticals.

偉大的。謝謝你阿傑，我歡迎你，也祝賀你的新角色。我想，第一個問題要問你，A.J。您提到了這個不斷擴大的機會管道。您已經談了很多關於大多數終端市場和垂直市場。

I'm just curious if any those verticals stand out, where there's more opportunity for expansion going forward? I mean, obviously, we've talked a lot about ports and borders, and it does sound like the new administration to were bipartisan or maybe not a significant real change there, although maybe headlines sound like it will change.

我只是好奇這些垂直產業是否脫穎而出，未來在哪裡有更多的擴展機會？我的意思是，顯然，我們已經談了很多關於港口和邊境的問題，聽起來新政府是兩黨合作的，或者可能沒有帶來重大的實際變化，儘管頭條新聞聽起來可能會發生變化。

But maybe just a question is, does the new administration drive these to expand opportunities? Or where are you seeing kind of outsized opportunity growth?

但或許唯一的問題是，新政府是否會推動這些以擴大機會？或是您在哪裡看到了超大的機會成長？

So I think thank you, first of all, Larry. But the growth is across the border. So yes, we talk about border security, that's in the news. Sure, we're going to we think we're going to see growth. A lot of it is just starting. And as Alan pointed out, it's not just about the initial product, but it's about what else can we do. Can we integrate some of it with our CertScan software, get recurring revenues, get to service revenue.

所以我首先要感謝你，拉里。但這種成長是跨越國界的。是的，我們談論邊境安全，這是新聞。當然，我們認為我們將會看到成長。許多事情才剛開始。正如艾倫指出的那樣，這不僅關乎最初的產品，還關乎我們還能做什麼。我們能否將其中一些與我們的 CertScan 軟體集成，獲得經常性收入，獲得服務收入。

Aviation is huge. Internationally, we have a lot of opportunities. We've announced a couple of orders, and we feel on the check baggage as well as a checkpoint, there are a lot of opportunities. TSA, as you know, they've had some changes there with the new administration administrator coming in.

航空業規模龐大。在國際上，我們有很多機會。我們已經宣布了一些訂單，我們覺得在托運行李和檢查站方面有很多機會。如您所知，TSA 隨著新行政管理人員的上任，已經進行了一些變更。

We don't know who that's going to be. But their check baggage, which we have an excellent product in our RTG. Those are, in some cases, 20-plus years old. So they have to replace those probably in the next two, three, four years when they start.

我們不知道那會是誰。但他們的托運行李，我們的 RTG 中有一款優質產品。在某些情況下，它們已經有 20 多年的歷史了。因此，當他們開始營運時，他們可能必須在未來兩、三、四年內更換它們。

They're tray systems where we participate in. And these are huge opportunities, not just in the US but internationally. And I think as you look the Opto side, we keep on we talk about security, but the moving away from China manufacturing, we, as a company, are uniquely situated with a lot of international facilities that we have around the world where we can accommodate that.

它們是我們參與的托盤系統。這些都是巨大的機遇，不僅在美國，而且在國際上。我認為，就 Opto 而言，我們一直在談論安全性，但隨著我們逐漸遠離中國製造，作為一家公司，我們擁有獨特的地理位置，在世界各地擁有許多國際設施，我們可以適應這一點。

And really, we do business with a lot of defense companies on the security side and Opto side, and I think we can really merge those opportunities and go talk to the customers as a large company who is unique in providing obviously the security side, but the ability to manufacture on the Opto side.

事實上，我們在安全和光電子領域與許多國防公司都有業務往來，我認為我們可以真正地整合這些機會，作為一家在安全領域獨樹一幟的大公司，去與客戶溝通，但是光電方面的製造能力。

And medical, for us, we're investing a lot of money in the next-generation products, looking at how we broaden that product line just like we're doing in security. So we feel very good about all the growth opportunities. So I would not just say it's just on ports and borders. That's one very significant pillar, but there's a lot more out there.

對我們來說，在醫療領域，我們正在對下一代產品投入大量資金，研究如何拓寬該產品線，就像我們在安全領域所做的那樣。因此，我們對所有的成長機會感到非常樂觀。所以我不會只說這只涉及港口和邊境。這是一個非常重要的支柱，但還有很多其他的支柱。

Right? And, and on the ports and borders in particular, it feels like you've announced several larger size deals, most of them were actually international. I'm just curious is the, do you feel like you got a bigger opportunity now? Well, obviously international is a bigger geographical region but is the US seems to me seems like maybe it's lower on your proportion of what's driving ports and borders today. Is that a fair statement?

正確的？特別是在港口和邊境問題上，感覺你們已經宣布了幾項規模較大的交易，其中大多數實際上是國際交易。我只是好奇，您是否覺得現在有了更大的機會？嗯，顯然國際是一個更大的地理區域，但在我看來，美國在當今推動港口和邊境發展的因素中所佔的比例可能較低。這是一個公正的說法嗎？

You know, I think that US is just as important, if not the most important to us. As you look at it, we've driven a lot internationally, but we have these IDIQs with CBP, for example. And I think there are going to be new IDIQs coming in.

你知道，我認為美國對我們來說同樣重要，即使不是最重要的。正如您所看到的，我們在國際上駕駛了許多車輛，但例如，我們與 CBP 有這些 IDIQ。我認為將會有新的 IDIQ 加入。

We have worked very closely with CBP and other organizations where we develop new products, they're coming out. We have the largest share of the market in the US And we feel as the next-generation products come out, which we've developed very closely talking to our customers.

我們與美國海關及邊境保護局（CBP）和其他組織密切合作，共同開發新產品，並將它們推出。我們在美國市場上佔有最大的份額，我們感覺到下一代產品的問世，是我們與客戶密切溝通後開發的。

So, it's not just something we're coming out with and integrating the hardware with the software where it makes it easier for people and to look for contraband, et cetera.

所以，這不僅僅是我們推出的將硬體與軟體整合在一起的東西，它還能讓人們更輕鬆地尋找違禁品等等。

And keep in mind, a lot of people just look at security as an expense. But at the end of the day, when we introduce these products, and I'm not going to go into some specifics for competitive reasons, but it really facilitates the trade coming through the borders. And in the end, it's really cheaper overall for the consumer at the end of it. So, a lot going on, but the US is important. I think there's a good opportunity for the next several years.

請記住，很多人只是將安全視為一項費用。但最終，當我們推出這些產品時，出於競爭原因，我不會詳細討論，但它確實促進了跨境貿易。最終，對於消費者來說，整體而言確實是更便宜了。所以，發生了很多事情，但美國很重要。我認為未來幾年會有很好的機會。

Got you. And if I may just squeeze in a question for you just on the margin security. Like you said, the gross margin was down, but year-over-year because of the mix. But if we just look sequentially, looks like your services revenue were about flat and your margin went up like 550 bps. Is that mostly just on the SG&A leverage on the higher revenue? Is that the, I guess, the biggest driver or the predominant driver?

明白了。我可以向您提一個關於保證金安全性的問題嗎？正如您所說，毛利率有所下降，但由於產品組合原因，比去年同期有所下降。但如果我們僅按順序看，看起來您的服務收入基本上持平，而利潤率上升了 550 個基點。這主要只是因為銷售、一般及行政費用對較高收入的槓桿作用嗎？我猜，這是最大的驅動因素還是主要的驅動因素？

Yes, Larry, it really is. The economies of scale as we leverage our fixed cost structure. So that is really kind of what drove it on a sequential basis for OSI Systems overall. You're exactly right.

是的，拉里，確實如此。當我們利用固定成本結構時，就會產生規模經濟。所以這其實是推動 OSI Systems 整體持續發展的因素。你說得完全正確。

Got you. And then just lastly, on the Opto division, up 4% in the quarter, a nice return to growth in the first half. You mentioned a lot of qualitative things, obviously, onshoring. I know you have a new facility in Mexico. What sort of what's the kind of driver of you mentioned margin expansion in the back half of the year. Is that also just on operating leverage? Or any color on that would be great.

明白了。最後，就光電部門而言，本季成長了 4%，實現了上半年良好的成長回歸。您提到了很多定性方面的事情，顯然是在岸外包。我知道你們在墨西哥有一個新工廠。您提到的下半年利潤率擴大的驅動因素是什麼？這也只是經營槓桿嗎？或任何顏色都可以。

Thanks. A Good question, Larry, this is Alan. So I'd say really what's going to drive the accelerated growth in Opto as we expect in the second half of the year is a few fold. One is kind of the rightsizing the inventory levels is largely behind us. So we're now seeing customers return to their normal ordering patterns. And in fact, our book-to-bill in Opto in our second quarter was north of one as well. So we expect that to drive accelerated growth.

謝謝。好問題，拉里，我是艾倫。因此我想說，真正推動光電產業加速成長的因素是，正如我們預期的那樣，今年下半年光電子產業將實現數倍的成長。一是庫存水準的合理調整已基本完成。所以我們現在看到顧客恢復了正常的訂購模式。事實上，我們第二季光電子業務的訂單出貨比也超過了 1。因此我們預計這將推動加速成長。

You mentioned the new operation that we have in Mexico. That is gaining momentum also, which will certainly help. The mix of business is expected to be favorable for us in the second half, which should also drive some margin expansion. So, all in all, we expect to see some nice top line growth, coupled with operating margin expansion in the second half for the Opto division.

您提到了我們在墨西哥的新業務。這一進程也正在加速，這肯定會有所幫助。預計下半年的業務組合將對我們有利，這也將推動利潤率的擴大。因此，整體而言，我們預計下半年光電部門的營收將實現良好成長，同時營業利潤率也將擴大。

Great, thanks Allen. I appreciate it.

太好了，謝謝艾倫。我很感激。

Christopher Glynn with Oppenheimer.

克里斯托弗·格林和奧本海默。

Yeah, thanks. Curious, I just want to dive into the aviation sector a little bit and welcome, Ajay. Good to hear you on the call. Curious, would you call the global kind of replacement upgrade cycle in aviation in its early days? I know the US is sort of lagging the international, but maybe kind of an innings rating for the international and the total global on that? And are you seeing improving win rates in aviation versus historical?

是的，謝謝。我很好奇，我只是想稍微深入了解航空領域，歡迎阿傑。很高興接到您的電話。好奇，您會把航空業早期的全球性替換升級週期稱為什麼？我知道美國隊在國際上落後了，但也許可以對國際隊和全球隊進行某種局數評級？與歷史相比，您是否看到航空戰的勝利率有所提高？

Thanks, Chris. So it's an interesting question because aviation is such a big market. And when you look at aviation, you've got checkpoints, within checkpoints, you have your checkpoint CT systems where you put your baggage through, you have people screening, you have trace. You have so many different products out there, and then obviously, you have your check baggage.

謝謝，克里斯。這是一個有趣的問題，因為航空業是一個巨大的市場。在航空領域，您設有檢查站，在檢查站內，您有檢查站 CT 系統，您可以將行李放在那裡，對人員進行篩檢，進行追蹤。市面上有這麼多不同的產品，當然，你還需要托運行李。

So coming to the US. the US has been focused on checkpoint CT. I think as we move forward, they are definitely going to look to see what they do in Trace, which. we have which we are a very significant player, and I believe one of the leaders.

所以來到美國。美國一直重點關注CT檢查站。我認為，隨著我們不斷前進，他們肯定會看看他們在 Trace 中做了什麼。我們是其中非常重要的參與者，我相信我們是領導者之一。

RTT on the check baggage is definitely a big opportunity for us as well. And we feel that TSA is going to have to look at potentially upgrading, replacing some of these products starting a couple of years from now. So that's maybe three years from now, but that's where the market is. And we feel that we're in a good position to participate.

托運行李上的 RTT 對我們來說無疑也是一個巨大的機會。我們認為，從現在起幾年內，TSA 將不得不考慮對其中一些產品進行升級和替換。所以這也許是三年後的事了，但市場現狀就是這樣。我們感到自己處於有利地位來參與其中。

Internationally, we're winning a lot of orders. It's a big market. Obviously, we are in the checkpoint as well as check baggage as well as Trace. We have bundled some of the products. Customers know us very well. And then market is, in some places, it's starting, some places it's in the middle. And keep in mind, as you get towards the end, another cycle starts. So it's a continuing cycle, it's not just you fill this up and it's going to go away.

在國際上，我們贏得了許多訂單。這是一個很大的市場。顯然，我們在檢查站，檢查行李以及追蹤。我們已經捆綁了一些產品。顧客非常了解我們。然後，在某些地方，市場才剛起步，在某些地方，市場仍處於中間階段。請記住，當您接近終點時，另一個循環就開始了。所以這是一個持續的循環，不是你填滿了它它就會消失。

It's almost like a car, you're going to have a car, I thought I have mentioned, I believe, in my prepared remarks, that was seven to 10 years was what some of this equipment is there for in avation, depending on technology, might even be, in some cases, a little faster, a little slower.

這幾乎就像一輛車，你會有一輛車，我想我已經提到過，我相信，在我準備好的發言中，這些設備在未來七到十年內會用於航空業，這取決於技術，在某些情況下甚至可能會快一點，慢一點。

So it's a continuing business. And the key thing over there is as we get into this business, there is recurring service revenue as we move forward. So it is really there's no one answer beginning and middle. It's really a continuing business, the best way to answer it.

所以這是一項持續的業務。關鍵在於，當我們進入這個行業時，我們會不斷獲得經常性的服務收入。因此實際上沒有一個唯一的答案。這確實是一項持續的業務，這是最好的回答方式。

Great. That's really helpful for understanding that. And then, you mentioned the bulk of the debt coming due and, I'm not sure if you said fiscal '27 or calendar 27. But, you know, when are you, what are you anticipating for, pricing or timing as you redo that? How, how you know, far ahead are you interested in addressing that?

偉大的。這對於理解這一點非常有幫助。然後，您提到大部分債務即將到期，我不確定您說的是財政年度 27 年還是日曆年度 27 年。但是，您知道，您什麼時候重新做這件事，您對價格或時間有什麼期望？您如何知道您有興趣在未來很長一段時間內解決這個問題？

Hey, Chris, this is Allen. So, yeah, the credit facility, which is sort of our natural five year credit facility matures in December of 26 which is our fiscal '27 throughout the course of, you know, calendar 25.

嘿，克里斯，我是艾倫。是的，信貸安排，也就是我們的自然五年期信貸安排，將於 26 年 12 月到期，也就是我們的 27 財年，在整個 25 年日曆期間。

We'll be, we'll be working with our banks as we've done numerous times in the past to likely amend and extend the credit facility as you may know, even though we're not an investment grade company due to our size, we have investment grade pricing as it comes to the credit facility, so quite, quite favorable for us.

我們將與銀行合作，就像我們過去多次做的那樣，可能會修改和延長信貸安排，儘管由於我們的規模，我們並不是一家投資級公司，就信貸安排而言，我們擁有投資級定價，因此對我們來說非常有利。

Great. Thanks, that's all I got.

偉大的。謝謝，這就是我所得到的全部。

Matt Akers with Wells Fargo.

富國銀行的馬特‧艾克斯 (Matt Akers)。

Hey, good morning guys. Thanks for the question and congrats, Ajay, on the new role. I wanted to ask about cash. Good to see positive cash flow in the quarter, some of that working capital reversing. And I know, Alan, you mentioned the back half continue to see pretty good cash flow. Just curious, should we see that as still kind of lumpy around maybe some of these milestones of some of the big international products? Or are we to the point now where that's kind of a steadier free cash flow here going forward?

嘿，大家早安。感謝您的提問，並祝賀阿傑獲得新的職位。我想問一下有關現金的問題。很高興看到本季的現金流為正，部分營運資本出現逆轉。我知道，艾倫，你提到下半年的現金流繼續保持相當不錯的水平。只是好奇，我們是否應該認為這在某些大型國際產品的某些里程碑事件中仍然存在矛盾？或者我們現在已經到了這樣的地步：未來自由現金流將更加穩定？

Yeah, Matt. Good, good question. This is, this is Allen, it'll never be a sort of a steady pace of cash flow in the likes of our business. We'll always have some quarters that are, that are much stronger and some quarters that are, they're a little bit lighter.

是的，馬特。好問題。這就是艾倫，在我們的業務中，永遠不會出現穩定的現金流。我們總是會有一些季度表現強勁，有些季度表現較弱。

We have an opportunity to continue to sort of outperform on a cash flow basis with a strong free cash flow to net income conversion rate, given that we have some money, sort of tied up in working capital. So as the receivables begin to normalize, as does the inventory, there's opportunity for significant free cash flow generation and we expect to see that in our, in our second half and as we move into fiscal '24 and forward, so we think we'll continue to have a good free cash flow conversion rate.

鑑於我們擁有一些資金，類似於營運資金，我們有機會繼續在現金流方面表現出色，並擁有強勁的自由現金流與淨收入轉換率。因此，隨著應收帳款開始正常化，庫存也開始正常化，就有機會產生大量的自由現金流，我們預計在我們的下半年以及進入24 財年及以後會看到這一點，所以我們認為我們將繼續擁有良好的自由現金流轉換率。

So it's never going to be perfectly smooth due to kind of the nature of our business and some of the international contracts that we have.

所以，由於我們的業務性質以及我們簽訂的一些國際合同，事情永遠不會完全順利。

Yes. Got it. Okay. And I wanted to ask about tariffs, given how that's been kind of a topic with the new administration. Just curious how you think about any risk associated with either prices due to tariffs or customers. You guys have a lot of international business, Mexico, for example, just how you're kind of thinking about the risk around that.

是的。知道了。好的。我想問關稅問題，因為這是新政府正在討論的議題。只是好奇您如何看待因關稅或客戶而導致的價格風險。你們有很多國際業務，例如墨西哥，你們是如何考慮與之相關的風險的。

You know, It's a question that is on a lot of people's minds, obviously. I think it's a little too early to tell what's going to happen. But I will say from an OSI perspective, we're well situated because we have manufacturing facilities in the US We have manufacturing facilities in Europe, Asia. And we have the flexibility to turn things around and really work closely with our customers on what their needs are and if they need to address any tariff situation.

你知道，這顯然是很多人都在思考的問題。我認為現在談論將會發生什麼還為時過早。但我想說，從 OSI 的角度來看，我們的位置很有利，因為我們在美國有製造工廠，我們在歐洲、亞洲也有製造工廠。我們可以靈活地扭轉局面，並與客戶密切合作，了解他們的需求並確定他們是否需要解決任何關稅問題。

So I think at this point, it's a wait-and-see attitude, but I think it's much more of a challenge for companies that are manufacturing only outside the US and importing into the US For us, like I said, it's much more flexible, and we have the ability to really switch manufacturing to different locations. So we'll watch it just like everybody else is watching it.

因此，我認為目前還是一種觀望態度，但我認為，對於那些只在美國境外生產並進口到美國的公司來說，這更具挑戰性。靈活我們有能力將製造業務真正轉移到不同的地點。因此我們將會像其他人一樣觀看它。

Yes. Great. And then if I could squeeze one last one in. I guess, maybe any way to think about the seasonality between Q3 and Q4? I think, Alan, as you mentioned, Q2 last year, margins kind of unusually strong. Just anything to think about it as we go into the back half?

是的。偉大的。然後如果我能擠進最後一個。我想，也許有沒有什麼方法可以考慮第三季和第四季之間的季節性？我認為，艾倫，正如您所說，去年第二季度的利潤率異常強勁。當我們進入後半部時，還有什麼要考慮的嗎？

Yes, Matt, good question. We would see the back half weighted a bit more to Q4, as we typically do. Q4 tends to be our strongest quarter at the end of the fiscal year. As a result, we would see our revenue stronger there. And from a margin mix perspective, we would expect to see the operating margins stronger in Q4 than in Q3.

是的，馬特，這個問題問得好。正如我們通常所做的那樣，我們會看到後半部分對第四季度的權重稍微加大一些。第四季往往是我們財政年度末表現最強勁的一個季度。因此，我們在那裡的收入將會更高。從利潤率組合的角度來看，我們預期第四季的營業利潤率將高於第三季。

Great. Thank you.

偉大的。謝謝。

(Operator Instructions) Mariana Perez with Bank of America.

(操作員指示) 美國銀行的瑪麗安娜·佩雷斯 (Mariana Perez)。

So I have a follow-up to Matt's question. When we think about balance sheet and free cash flow, how should we think about receivables going forward and especially the unbilled receivables balance?

我對馬特的問題有一個後續問題。當我們考慮資產負債表和自由現金流時，我們應該如何考慮未來的應收帳款，特別是未開立應收帳款餘額？

Mariana, it's Alan. So we would expect that our DSO is going to improve going forward. Of course, we expect to grow the top line. So in absolute dollars, receivables could grow from time to time, but we'd expect to see our DSO down. With respect to unbilled receivables, we are really pleased to see a 19% decrease in our unbilled receivables from the end of Q1 to Q2, which is what we are anticipating.

瑪麗安娜，我是艾倫。因此，我們預計我們的 DSO 未來會有所改善。當然，我們希望實現營業收入的成長。因此，以絕對美元計算，應收帳款可能會不時成長，但我們預期 DSO 會下降。關於未開立發票應收帳款，我們非常高興地看到，從第一季末到第二季末，我們的未開立發票應收帳款減少了 19%，這正是我們預期的。

I believe as we get to the end of the fiscal year in June, we'll see those unbilled receivables significantly down from where they are today. And as we move the unbilled receivables to billed receivables and therefore, cash collection, that's what should drive sort of this outsized free cash flow for us as well. So a real nice position to be in for us.

我相信，隨著六月財政年度的結束，我們會看到這些未開立應收帳款金額較現在的水平大幅下降。當我們將未開立應收帳款轉為已開立發票應收帳款，從而實現現金回收時，這也應該會為我們帶來超額的自由現金流。這對我們來說確實是一個非常好的位置。

Thank you And one more on the contribution from the acquisition. Have you measure how much was it per share?

謝謝。你有沒有算每股多少錢？

Not per share. We did roughly $17 million of revenues in the quarter. So it performed quite nicely for us.

不是每股。本季我們的營收約為 1,700 萬美元。因此，它對我們來說表現得非常好。

Thank you so much.

太感謝了。

Jeff Martin with ROTH Capital Partners.

羅仕證券資本合夥公司的傑夫馬丁 (Jeff Martin)。

I wanted to dive into the surveillance business that you acquired in September a little more. In terms of the product portfolio, are there things you can do to enhance that offering? Is it where it should be? Do you need to invest significantly in R&D and other complementary products that are either in your existing security product portfolio or that you might look to acquire in the future to enhance that?

我想更深入地了解您在九月收購的監控業務。就產品組合而言，您可以做些什麼來增強其產品供應？它是否在它應該在的地方？您是否需要在現有安全產品組合中的研發和其他補充產品上進行大量投資，或者您可能在未來尋求收購以增強其安全產品組合？

So, Jeff, I think, I think I went into it a little bit but just to re emphasize, why, why this made sense was number one, the customer base that they have in the US with Dod and obviously internationally is really something that we're very familiar with and we're able to go and talk to those customers and really expand our offering.

所以，傑夫，我想，我想我已經講了一點，但只是想再次強調，為什麼這是有意義的，首先，他們在美國國防部和國際上擁有的客戶群，這確實是我們非常熟悉這些客戶，並且能夠與他們交談，從而真正擴大我們的產品範圍。

You go and look at, some of the products that they have. I mentioned the over the Horizon radar, obviously what everybody looks at it over the horizon radar is for, drones and missiles, like what's going on in Ukraine, everybody was looking at ballistic missiles coming through.

你去看看他們有哪些產品。我提到了超視距雷達，顯然每個人都在關注超視距雷達，以防無人機和飛彈，就像烏克蘭發生的事情一樣，每個人都在關注飛來的彈道飛彈。

And you know, and that's where satellites would pick up, but, cruise missiles and drones are causing just as much damage. So there's a big opportunity for traditional over the high radar to be there.

你知道，那是衛星可以接收訊號的地方，但是巡航飛彈和無人機造成的破壞也同樣大。因此，傳統的高空雷達在那裡有著很大的應用機會。

Having said that it really applies very closely, like I mentioned to what we do is more security because these radars can be used for, ships, vehicles, drones coming across the border carrying all kinds of drugs than anything else.

話雖如此，它確實非常適用，就像我提到的那樣，我們所做的是更多的安全，因為這些雷達可以用於監測穿越邊境攜帶各種毒品的船隻、車輛、無人機。

And the capabilities of drones from a payload is going to get bigger and bigger. So I think that's going to become a definitely more and more of a threat and then traditionally, they're in other defense areas like their ULF, which is ultra low frequency, which is only for communication of, you know, for submarines when they're underwater, that's the only form of communication that they really have. And there are opportunities in space and others.

無人機的有效載荷能力將會越來越大。所以我認為這肯定會成為越來越大的威脅，而傳統上，他們在其他防禦領域，例如他們的超低頻，也就是超低頻，只用於潛艇的通信，當它們在水下，這是它們唯一的溝通方式。太空和其他領域也存在機會。

But really the key opportunity for us is, is providing them with the capabilities from a financial standpoint, from a reach standpoint and really, you know, working much closer with some of the larger companies, defense contractors out there.

但對我們來說，真正的關鍵機會是，從財務角度、從影響力角度為他們提供能力，並且真正與一些較大的公司、國防承包商進行更緊密的合作。

As far as the question R&D, you know, they spend money on R&D, but a lot of that R&D is funded by their customers. So, you know, we'll, we think it's a very good fit and the opportunities are definitely there and, you know, we'll keep you informed over the next several quarters, but we feel good about it.

就研發問題而言，你知道，他們在研發上花錢，但很多研發資金來自他們的客戶。所以，你知道，我們認為這是一個非常合適的選擇，而且機會肯定存在，你知道，我們會在接下來的幾個季度內隨時向你通報情況，但我們對此感覺很好。

That's helpful. Appreciate that. So the security and the Opto have been covered pretty extensively. So all throughout health care division question out there. I know you've been working on next-generation patient monitoring system for several years now.

這很有幫助。非常感謝。因此，安全性和光學方面已經得到了相當廣泛的報導。因此整個醫療部門都存在這樣的問題。我知道您幾年來一直致力於下一代病人監測系統的研究。

Are you at a point where you can kind of give a time line on what the rollout of that new platform looks like? And you also have mentioned in the past that you're evaluating the leasing model within the industry, which could be a differentiator. And just maybe if you can give an update if that's gained much traction or if that's more pending the launch of the new patient monitoring platform.

您能否給出一個新平台推出的時間表？您之前也提到過，您正在評估行業內的租賃模式，這可能是差異化因素。也許您能提供最新消息，看看這項消息是否引起了廣泛關注，或者是否還有待新的病患監測平台的推出。

So I think that we've we're actually spending considerable resources on the new platform with our R&D team. I'm not going to give you an exact timing more for competitive reasons than anything else. But we think that it's '26 and beyond, but we feel good about what we're hearing, what progress we're making from that standpoint.

所以我認為我們實際上已經與研發團隊在新平台上投入了大量資源。我不會給你一個確切的時間，更多的是出於競爭的原因。但我們認為這是 26 年及以後的事，但我們對所聽到的消息以及從這個角度所取得的進展感到滿意。

And really, it's not just over there, but some of the other items and other products that we're able to offer besides our next-generation platform, whether it's remote monitoring, whether it's predictive analysis, et cetera.

實際上，它不僅在那裡，除了我們的下一代平台之外，我們還能夠提供一些其他項目和其他產品，無論是遠端監控，還是預測分析等等。

So all that really goes together. And the objective is that we become from a technology as well as from a sales standpoint, it gives us a good boost down the road. But exact timing, like I said, as we start introducing the products, we'll give you more color on that.

所以，所有這一切確實是結合在一起的。我們的目標是從技術和銷售的角度為我們的長遠發展提供良好的推動力。但具體的時間，就像我說的，當我們開始推出產品時，我們會為你提供更多詳細資訊。

Great. And then last question for me on the turnkey segment mentioned, existing customers are, are happy, things are going well, there. Are you seeing much opportunity to expand the customer base within the turnkey solutions offering.

偉大的。最後一個問題是關於交鑰匙部分的，現有客戶都很高興，一切都進展順利。您是否看到在交鑰匙解決方案中擴大客戶群的許多機會？

The short answer is yes, we're working on several opportunities. Like you know, these are not opportunities that happen in a couple of months. In some cases, you have to work with the international governments, you have to basically go through and educate them on the whole process. So it takes quite a while to get through it, but we are actively working on several opportunities right now.

簡短的回答是肯定的，我們正在努力尋找幾個機會。你知道，這些機會不是幾個月就能實現的。在某些情況下，您必須與國際政府合作，您基本上必須經歷並教育他們整個過程。因此，要花相當長的時間才能完成，但我們現在正在積極地抓住幾個機會。

Excellent. Thank you.

出色的。謝謝。

Thank you so much and I do not see any further questions in the queue back to you guys.

非常感謝，我沒有看到隊列中還有其他問題要問你們。

Well, thank you. Once again, thank you for participating in our conference call and we look forward to speaking with you at our next earning call.

好吧，謝謝你。再次感謝您參加我們的電話會議，我們期待在下次收益電話會議上與您交談。

And thank you everyone for participating in today's program. You may now disconnect.

也感謝大家參加今天的節目。您現在可以斷開連線。