One Stop Systems Inc (OSS) 2024 Q1 法說會逐字稿

Good day, everyone, and welcome to today's One Stop Systems' 2024 quarter one conference call and webcast. At this time, all participants are in a listen only mode. (Operator Instructions) Please note this call is being recorded. I will be standing by if you should need any assist.

大家好，歡迎來到今天的一站式系統 2024 年第一季電話會議和網路廣播。此時，所有參與者都處於只聽模式。（操作員說明）請注意此通話正在錄音。如果您需要任何幫助，我將隨時待命。

It is now my pleasure to turn the conference over to President and CEO, Mr. Mike Knowles. Please go ahead, sir.

現在我很高興將會議交給總裁兼執行長麥克·諾爾斯先生主持。請繼續，先生。

Thank you, Jennifer, good afternoon, everyone, and thank you for joining today's call. To they joined the company as CEO almost a year ago, we are focused on transitioning our business away from legacy media and niche enterprise customers to pursue emerging opportunities within large and growing defense and commercial markets. As early adopters of applications that will utilize artificial intelligence or AI machine learning or ML and sensor processing at the edge, we believe defense and commercial markets supports significant opportunities for the company's market leading rugged enterprise class compute products.

謝謝詹妮弗，大家下午好，謝謝您參加今天的電話會議。他們大約一年前加入公司擔任首席執行官，我們致力於將我們的業務從傳統媒體和利基企業客戶轉變為在大型且不斷增長的國防和商業市場中尋求新興機會。作為在邊緣利用人工智慧或人工智慧機器學習或機器學習和感測器處理的應用程式的早期採用者，我們相信國防和商業市場為該公司市場領先的堅固型企業級運算產品提供了巨大的機會。

Have also had the opportunity to engage with current and prospective customers and continually hear positive feedback on the value of OSS.'s products as well as our engineering and support capabilities. I continue to believe our existing products and future roadmap align extremely well with the growing market trends and technology adoption.

還有機會與現有和潛在客戶互動，並不斷聽到有關 OSS. 產品價值以及我們的工程和支援能力的正面回饋。我仍然相信我們現有的產品和未來的路線圖與不斷增長的市場趨勢和技術採用非常契合。

With strong product offerings our efforts over the past 12 months have focused on building a team of proven sales, business development and program management associates. This first phase of our transformation created the necessary infrastructure to identify new opportunities and rebuild our sales pipeline to serve new defense and commercial applications and customers.

憑藉強大的產品供應，我們在過去 12 個月的努力重點是建立一支由經過驗證的銷售、業務開發和專案管理人員組成的團隊。我們轉型的第一階段創造了必要的基礎設施，以發現新的機會並重建我們的銷售管道，為新的國防和商業應用和客戶提供服務。

I'm extremely pleased with the progress we have made throughout my first year at OSS, as we have assembled a strong sales organization, expanded our five year unfactored pipeline to over $1 billion and enter new multi-year and large scale platform base sales opportunities with new and existing customers. In addition, approximately 70% of our current pipeline is comprised of platform opportunities which we believe will help contribute predictable multiyear revenue and backlog to our OSS.

我對在OSS 第一年的進展感到非常滿意，因為我們組建了強大的銷售組織，將我們的五年未保理管道擴大到超過10 億美元，並進入了新的多年和大規模平台基礎銷售機會與新舊客戶。此外，我們目前管道中約 70% 由平台機會組成，我們相信這些平台機會將有助於為我們的 OSS 貢獻可預測的多年收入和積壓訂單。

We have also pursued a second phase of our transformation aimed at creating a growth-focused multiyear strategic plan. Our new strategic plan was presented to our Board of Directors in early May, and we are now incorporating their feedback. Once our plan is finalized in the next month or two, we plan on including the growth strategies we are pursuing to achieve our five year financial targets and an updated presentation and subsequent quarterly conference call.

我們也進行了第二階段的轉型，旨在製定以成長為重點的多年策略計畫。我們的新策略計劃已於五月初提交給董事會，我們現在正在採納他們的回饋。一旦我們的計劃在未來一兩個月內最終確定，我們計劃包括我們為實現五年財務目標而追求的成長策略以及更新的簡報和隨後的季度電話會議。

The third phase of our transformation will focus on executing against our 5-year strategic plan to profitably scale our business and build greater long-term value for our customers, associates and shareholders. So with this overview, I'd like to review the progress we made during the 2024 first quarter and our expectations for the remainder of the year before turning the call over to John, to provide additional information on our first quarter results and balance sheet.

我們轉型的第三階段將專注於執行我們的五年策略計劃，以獲利方式擴展我們的業務，並為我們的客戶、員工和股東創造更大的長期價值。因此，透過此概述，我想回顧一下我們在2024 年第一季度取得的進展以及我們對今年剩餘時間的預期，然後再將電話轉給約翰，以提供有關我們第一季度業績和資產負債表的更多資訊。

Overall, I'm encouraged by our performance during the 2024 first quarter as consolidated revenue, bookings, gross margin and EBITDA met or exceeded our plan. This is a testament to the focus and investments we've made over the past year within our sales and product teams and a diverse sales pipeline we are building.

總體而言，我對 2024 年第一季的業績感到鼓舞，因為合併收入、預訂量、毛利率和 EBITDA 達到或超過了我們的計劃。這證明了我們過去一年在銷售和產品團隊以及我們正在建立的多元化銷售管道中所做的關注和投資。

I want to thank everyone at OSS for their continued hard work during the quarter. Our first quarter results also reflect the early days of a multiyear investment cycle for the rugged AI, ML and Edge computing solutions we provide. The recent explosion in overall AI and ML investments have primarily benefited hardware data center and select software companies.

我要感謝 OSS 的每個人在本季度持續的辛勤工作。我們第一季的業績也反映了我們提供的堅固耐用的人工智慧、機器學習和邊緣運算解決方案的多年投資週期的早期階段。最近人工智慧和機器學習整體投資的爆炸性成長主要使硬體資料中心和特定軟體公司受益。

While we believe these trends will benefit OSS in the coming quarters and years. Many of the opportunities we are pursuing are still in development, testing and concept phases. The near-term focus of our sales organization is to identify customers, prioritize resources and pursue strategic platform based opportunities that are funded or have a high likelihood of getting funded and require rugged enterprise class compute solutions at the edge.

我們相信這些趨勢將在未來幾季和幾年內使 OSS 受益。我們正在尋求的許多機會仍處於開發、測試和概念階段。我們銷售組織的近期重點是識別客戶、優先考慮資源並尋求基於策略平台的機會，這些機會已獲得資助或很有可能獲得資助，並且需要邊緣的堅固企業級運算解決方案。

Discovering opportunities at the design phase allows OSS to get specked in early in the platform, which we believe solidifies our position once the project moves to commercialization. In addition, this approach creates a moat around our business as we offer highly engineered solutions that not only meet current technology requirements, but also provide the compute power needed to meet future technology requirements, thus creating a protected incumbent position. This is a multiyear approach that we expect to create significant value as programs are developed and commercialized.

在設計階段發現機會使 OSS 能夠在平台的早期階段就加入進來，我們相信一旦專案進入商業化，這將鞏固我們的地位。此外，這種方法為我們的業務創造了一條護城河，因為我們提供精心設計的解決方案，不僅滿足當前的技術要求，而且還提供滿足未來技術要求所需的運算能力，從而創造一個受保護的現有地位。這是一個多年的方法，我們希望隨著專案的開發和商業化，創造巨大的價值。

Recent example of our potential with the order we announced in the first quarter to design and manufacture new ruggedized liquid cooling system for cooling self-driving technology and a commercial autonomous truck deployment. The initial $300,000 order was for new design and prototypes. More importantly, this reflects the progress we are making building valuable relationships with the customers' engineering teams and pursuing opportunities that provide integrated solutions on a platform. While this customer is still years away from final configuration and production, we believe our current development work supports a significant multiyear revenue opportunity for OSS in the future.

最近的例子是我們在第一季宣布的訂單，該訂單旨在設計和製造新型堅固耐用的液體冷卻系統，用於冷卻自動駕駛技術和商用自動卡車部署，這體現了我們的潛力。最初的 30 萬美元訂單用於新設計和原型。更重要的是，這反映了我們在與客戶的工程團隊建立有價值的關係以及尋求在平台上提供整合解決方案的機會方面所取得的進展。雖然該客戶距離最終配置和生產還需要數年時間，但我們相信我們目前的開發工作將為 OSS 未來提供重要的多年收入機會。

We are actively pursuing similar relationships, and we started to break out separate revenue and cost lines in our financial results associated with customer funded development project to show our potential and track new wins more easily. We have defined program related development work as customer funded development on our financial statements.

我們正在積極尋求類似的關係，並且我們開始在與客戶資助的開發項目相關的財務業績中劃分單獨的收入和成本線，以展示我們的潛力並更輕鬆地跟踪新的勝利。我們在財務報表中將與專案相關的開發工作定義為客戶資助的開發。

Through customer funded development programs we are typically providing a more integrated solution compared to the company's historic offerings. In addition, it establishes OSS's and a comment on what is almost always a multiyear contracts. As a result, we expect our business model to benefit from a higher mix of annual recurring revenue and contracted multi-year backlogs in the future.

透過客戶資助的開發計劃，與公司的歷史產品相比，我們通常提供更整合的解決方案。此外，它還建立了 OSS 以及幾乎總是多年合約的評論。因此，我們預計我們的業務模式將受益於未來年度經常性收入和合約多年積壓訂單的更高組合。

Development relationships are expected to take 1 to 2 years before leading to production orders. So as our business scales, we expect to benefit from steady quarter-on-quarter revenue growth while building a solid foundation of potential large scale program opportunities. Additional customer momentum in the quarter included a pilot project to provide a liquid immersion cooled data storage system for use in a deployable ground station.

開發關係預計需要 1 到 2 年的時間才能產生生產訂單。因此，隨著我們的業務規模擴大，我們預計將從穩定的季度收入成長中受益，同時為潛在的大型專案機會奠定堅實的基礎。本季度的其他客戶動力包括一個試點項目，該項目提供用於可部署地面站的液浸冷卻資料儲存系統。

This project has begun and is expected to lead to follow-on production orders in the coming quarters. We started shipping our latest Gen 5 4U Pro accelerator system to a large composable infrastructure provider for the expected shipments to total between $4 million, $6 million over the next three years. It is important to note that we are early in our transformation as we grow revenues to more customers within the defense and commercial markets. At the same time, we will continue to feel the impact in the second quarter from transition of a former media customer.

該項目已經開始，預計將在未來幾季產生後續生產訂單。我們開始向一家大型可組合基礎設施供應商運送最新的 Gen 5 4U Pro 加速器系統，預計未來三年的出貨量總計在 400 萬至 600 萬美元之間。值得注意的是，我們正處於轉型的早期階段，因為我們為國防和商業市場中的更多客戶增加了收入。同時，我們將在第二季繼續感受到前媒體客戶轉型的影響。

Finally, we are not immune from softer European demand impacting our Bressner business and a prolonged US government budgeting process, resulting from an extended continuing resolution for fiscal year 2024, which affected certain contracts in the first quarter.

最後，我們也不能倖免於歐洲需求疲軟影響我們的 Bressner 業務，以及由於 2024 財年的持續決議延長而導緻美國政府預算流程延長，這影響了第一季度的某些合約。

As we successfully transform our business and navigate a more fluid operating environment, we are focused on controlling the items under our control and maintaining a strong balance sheet. Near term priorities include converting our growing pipeline into new bookings, maintaining a positive book-to-bill ratio, investing in product development and supporting our expanding customer base.

隨著我們成功地實現業務轉型並駕馭更流暢的營運環境，我們專注於控制我們控制下的專案並保持強勁的資產負債表。近期的優先事項包括將我們不斷增長的管道轉化為新的預訂、保持積極的訂單出貨比、投資於產品開發以及支持我們不斷擴大的客戶群。

I'm also pleased with the progress we made over the past three months, improving our working capital efficiency. These efforts allowed OSS to generate $2 million in positive operating cash flow during the quarter, which we used to pay down term loans at Bressner and increase our cash position. As a result, we ended the quarter with a stronger balance sheet that included net cash and short-term investments of $12.9 million compared to $11.8 million at December 31, 2023.

我也對過去三個月我們在提高營運資金效率方面取得的進展感到滿意。這些努力使 OSS 在本季度產生了 200 萬美元的正營運現金流，我們用這些現金流來償還 Bressner 的定期貸款並增加我們的現金狀況。因此，本季結束時，我們的資產負債表更為強勁，其中包括淨現金和短期投資 1,290 萬美元，而 2023 年 12 月 31 日為 1,180 萬美元。

We believe our balance sheet provides us with significant flexibility to support our long-term growth strategies, and we are committed to being good stewards of the company's capital. As we look to the remainder of 2024, we are excited by the long-term strategies we are pursuing to scale our business and drive profitable growth. Our OSS segment ended the first quarter with a book-to-bill ratio of 1.1, and we anticipate positive order trends will continue throughout the remainder of the year as our growing pipeline successfully converts to orders and backlog.

我們相信我們的資產負債表為我們提供了極大的靈活性來支持我們的長期成長策略，並且我們致力於成為公司資本的良好管理者。展望 2024 年剩餘時間，我們對我們為擴大業務和推動獲利成長而追求的長期策略感到興奮。我們的 OSS 部門在第一季結束時的訂單出貨比為 1.1，隨著我們不斷增長的管道成功轉化為訂單和積壓訂單，我們預計積極的訂單趨勢將在今年剩餘時間內持續下去。

We continue to invest in the future, and we are finalizing a new multiyear strategy that I look forward to sharing with you on our next call. I want to thank our team for their continued hard work and dedication as we pursue compelling growth strategies aimed at building greater value for our shareholders.

我們繼續投資未來，我們正在敲定一項新的多年策略，我期待在下次電話會議上與您分享。我要感謝我們的團隊在我們追求旨在為股東創造更大價值的引人注目的成長策略時所持續的辛勤工作和奉獻精神。

Through this overview, I'd like to turn the call over to our CFO, John Morrison, to review our 2024 first quarter financial results in more detail. John, please go ahead.

透過此概述，我想將電話轉給我們的財務長 John Morrison，以更詳細地審查我們 2024 年第一季的財務業績。約翰，請繼續。

Thank you, Mike, and good afternoon, everyone. I believe OSS has a clear path to deliver strong financial returns over the coming years, and I look forward to updating investors on the progress we are making on future calls.

謝謝麥克，大家下午好。我相信 OSS 有一條明確的道路可以在未來幾年實現強勁的財務回報，我期待著向投資者通報我們在未來電話會議中取得的最新進展。

Turning to our financial results for the first quarter ended March 31, 2024, our first quarter results reflect the continued transformation of our business model as well as the impact of a fluid operating environment. Despite these impacts I am pleased to report that our consolidated revenue, gross margin and EBITDA met or exceeded our plan.

轉向我們截至 2024 年 3 月 31 日的第一季財務業績，我們第一季的業績反映了我們業務模式的持續轉型以及流動營運環境的影響。儘管有這些影響，我很高興地報告，我們的綜合收入、毛利率和 EBITDA 達到或超過了我們的計劃。

As a reminder, the company is operating in two operating segments. Our OSS segment operates in the United States and its primary focus and involved in the design and manufacture of high-performance, rugged edge processing, compute, storage and connectivity systems. Our Pressure segment operates throughout Europe and as a system integrator for standard and custom, all in one hardware system and components. [Bressner] also serves as a channel for our products to the European and Middle East market.

提醒一下，該公司有兩個營運部門。我們的 OSS 部門在美國運營，其主要業務涉及高性能、堅固耐用的邊緣處理、運算、儲存和連接系統的設計和製造。我們的壓力部門在整個歐洲開展業務，並作為標準和客製化、一體化硬體系統和組件的系統整合商。 [Bressner] 也作為我們的產品進入歐洲和中東市場的管道。

The following comments are based upon comparison of first quarter results 2024 as compared to the first quarter of 2023. For the first quarter, we reported consolidated revenue of $12.7 million, which is clearly exceed our guidance of $12.5 million, the 24.6% year over year reduction in consolidated revenue was primarily due to the timing of orders for data storage [compute products] from our large defense customers.

以下評論是根據 2024 年第一季業績與 2023 年第一季業績的比較。第一季度，我們報告的綜合收入為 1270 萬美元，這明顯超出了我們 1250 萬美元的指導，綜合收入同比下降 24.6% 主要是由於我們的數據存儲[計算產品]訂單時間安排大型國防客戶。

Our orders from customer can fluctuate on a quarterly basis by millions of dollars which during the first quarter resulted in approximately $4.4 million swing on a year-over-year basis. For 2024, we anticipate a similar amount of annual order volume from this customer as compared to the prior year.

我們來自客戶的訂單每季可能波動數百萬美元，第一季導致年比波動約 440 萬美元。2024 年，我們預期該客戶的年度訂單量與前一年相似。

In addition, we experienced a $1.5 million year-over-year reduction in revenue related to our former media customers. This was offset by approximately $1.9 million in incremental revenue to an existing growth aerospace customer and $600,000 in additional revenue to the existing autonomous truck customers. Our Bressner segment revenue decreased 12.7% to $7.1 million as expected and primarily due to the discontinuance and relaying certain program.

此外，我們與前媒體客戶相關的收入年減了 150 萬美元。這被現有成長型航空航太客戶約 190 萬美元的增量收入和現有自動駕駛卡車客戶的 60 萬美元額外收入所抵銷。我們的 Bressner 部門收入如預期下降 12.7% 至 710 萬美元，主要是由於某些節目的終止和轉播。

As Mike mentioned, in our first quarter financial statements, we started to break out separate revenue and cost line item associated with customer funded development work. Customer funded development typically represents non-reoccurring design and development work associated with the introduction of new products paid for by our customers. We expect our customer-funded development revenue to grow throughout 2024, benefiting from the strategies we are pursuing to provide more integrated solution to our growing customer base.

正如麥克所提到的，在我們第一季的財務報表中，我們開始分解與客戶資助的開發工作相關的單獨收入和成本項目。客戶資助的開發通常代表與客戶付費推出新產品相關的非重複設計和開發工作。我們預計，客戶資助的開發收入將在 2024 年全年成長，這得益於我們為不斷成長的客戶群提供更整合的解決方案所追求的策略。

Consolidated gross profit in the first quarter was 29.4% compared to 30.2% for the same period last year. This slight decline in our consolidated gross margin was primarily due to under-absorption of our production capability that was particularly offset by a more profitable mix of revenue in our Bressner segment. Compared to the fourth quarter, our consolidated gross margin was down 430 basis points, primarily due to manufacturing absorption.

第一季綜合毛利為29.4%，去年同期為30.2%。我們綜合毛利率的小幅下降主要是由於我們的生產能力吸收不足，這一點尤其被布雷斯納部門利潤更高的收入組合所抵消。與第四季相比，我們的綜合毛利率下降了 430 個基點，主要是由於製造業的吸收。

Total first quarter operating expenses decreased 5.4% to $5 million, which was attributable to the elimination of prior year costs associated with our organization restructuring and outside professional services, as well as reduced R&D expenses, which are primarily offset by higher marketing and selling expenses during the quarter.

第一季營運費用總額下降5.4%，至500 萬美元，這是由於消除了上一年與我們的組織重組和外部專業服務相關的成本，以及研發費用的減少，這主要被本季行銷和銷售費用的增加所抵消。

For the first quarter, the company reported a GAAP net loss of $1.3 million, or $0.06 per share compared to a net loss of $401,000 or $0.02 per share in the prior year. The company reported a non-GAAP net loss of $931,000 or $0.04 per share compared to non-GAAP net income of $90,000 or $0 per diluted share. Adjusted EBITDA, a non-GAAP metric was a loss of $456,000 compared to a positive EBITDA of $633,000 in the prior year first quarter.

第一季度，該公司公佈的 GAAP 淨虧損為 130 萬美元，即每股 0.06 美元，而上一年的淨虧損為 401,000 美元，即每股 0.02 美元。該公司公佈的非 GAAP 淨虧損為 931,000 美元，即每股 0.04 美元，而非 GAAP 淨利潤為 90,000 美元，即稀釋後每股收益 0 美元。調整後 EBITDA（非 GAAP 指標）虧損 456,000 美元，而去年第一季的 EBITDA 為正 633,000 美元。

Now looking at the balance sheet in more detail, as of March 31, 2024, our OSS had cash, cash equivalents and marketable securities of $12.9 million and total working capital of $34.3 million compared to total cash and cash equivalents, marketable securities of $11.8 million and total working capital of $30.6 million on December 31, 2023.

現在更詳細地查看資產負債表，截至2024 年3 月31 日，我們的OSS 擁有現金、現金等價物和有價證券為1,290 萬美元，總營運資本為3,430 萬美元，而現金和現金等價物、有價證券總額為1,180 萬美元截至2023年12月31日，營運資金總額為3,060萬美元。

Both assets have no borrowings outstanding under its $2 million working -- revolving line of credit at March 31, 2024 and December 31, 2023, respectively. The company's branch operation kind of consolidated balance outstanding on the term loan on March 31, 2024, of $1.4 million, down from the $2.1 million on December 31, 2023, and $3.2 million as of March 31, 2023. For the three months ended March 31, 2024, OSS generated $2 million in cash from operating activities compared to $24,000 for the three months ended March 31, 2023.

截至2024年3月31日及2023年12月31日，這兩項資產的運作循環信貸額度分別為200萬美元，沒有未償還借款。截至2024年3月31日，該公司分行經營的定期貸款未償還綜合餘額為140萬美元，低於2023年12月31日的210萬美元和截至2023年3月31日的320萬美元。截至2024年3月31日的三個月，OSS從經營活動中產生了200萬美元的現金，而截至2023年3月31日的三個月為24,000美元。

Looking forward, we expect revenue of $13 million in the second quarter of 2024. Our revenue guidance for the second quarter of 2024 includes expected program delays from certain defense customers as a result of the prolonged government budget process and continuing resolution for the fiscal year 2024 and saw softer European customer demand for the near term.

展望未來，我們預計 2024 年第二季的營收為 1,300 萬美元。我們對 2024 年第二季的營收指引包括由於政府預算流程延長和 2024 財年持續解決而導致某些國防客戶的預期計劃延遲，以及歐洲客戶近期需求疲軟。

While we expect revenue in the second quarter will be down on a year-over-year basis, we believe we will continue to experience sequential revenue growth throughout the year. This will be supported by a continuing positive book-to-bill ratio as we execute on our converting our growing opportunity pipeline. In addition, European demand is expected to improve in the second half of 2023 -- 2024 and higher bookings in [co-assistance] to help support year-over-year revenue growth and positive consolidated EBITDA in the coming quarters.

雖然我們預計第二季的營收將年減，但我們相信全年營收將繼續成長。隨著我們轉換不斷增長的機會管道，持續的積極訂單出貨比將支持這一點。此外，歐洲需求預計將在 2023 年下半年至 2024 年有所改善，[共同援助] 預訂量將增加，以幫助支持未來幾個季度的同比收入增長和積極的綜合 EBITDA。

This completes our financial review for the quarter, and we'd like to now open the call to questions. Jennifer?

我們本季的財務審查到此結束，我們現在開始提問。詹妮弗？

(Operator Instructions)

（操作員說明）

Max Michaelis, Lake Street Capital Markets.

馬克斯‧米凱利斯 (Max Michaelis)，湖街資本市場。

Hey, guys. Thanks for taking my questions. First one for me, it's nice to see bookings kind of return to growth here. Just wondering if you could share a percentage increase from this quarter and maybe our bookings growth number for Q2.

大家好。感謝您回答我的問題。對我來說第一個，很高興看到這裡的預訂量恢復成長。只是想知道您是否可以分享本季的成長百分比以及我們第二季的預訂成長數字。

I'll take your question Max, I would think you're asking if we have the percentage growth year on year for bookings.

我會回答你的問題，麥克斯，我想你是在問我們的預訂量是否同比增長。

Yes. Maybe for this quarter and then maybe what are your expectations for Q2?

是的。也許是這個季度，然後您對第二季度的期望是什麼？

I don't unless John has [mentioned], we have those numbers handy, but we're expecting that could continue to see positive or book-to-bill ratios greater than one as we go into Q2 in the following quarters in the fiscal year.

除非約翰[提到]，否則我們手頭上有這些數字，但我們預計，當我們在接下來的財政季度進入第二季度時，訂單出貨比可能會繼續為正或大於 1年。

Alright. Thanks, guys. And then a couple more from me. Gross margin seemed outperformed, I think correct me if I'm wrong, prior expectation was for 32% to 33% in the OSS segment. I think you guys came in a little over 34%. What should we be expecting for maybe the outer quarters or Q2, Q3, Q4. Is this outperformance, can you continue or expect to return to norm?

好吧。多謝你們。然後還有我的一些。毛利率似乎跑贏大盤，如果我錯了，請糾正我，之前的預期是 OSS 細分市場的 32% 至 33%。我想你們的支持率略高於 34%。我們應該對外圍地區或第二季、第三季、第四季有何期待。這種表現是否出色，您能否繼續或期望恢復正常？

So are you going to be will turning to a norm of about 32.5% for all of us stand alone, and for Bressner you'll see more in the 23% to 24% range as we go throughout the year. And as you see our revenue increased over that period of time.

那麼，對於我們所有人來說，您是否會轉向大約32.5% 的標準，而對於布雷斯納來說，隨著我們全年的發展，您會看到更多在23% 到24% 的範圍內。正如您所看到的，我們的收入在那段時間有所增加。

Alright. And then last one for me. I know you guys are seeing some delays on the defense side. Wondering if you've seen any order cancellations.

好吧。然後是我的最後一張。我知道你們看到了防守方面的一些延誤。想知道您是否看過任何訂單取消的情況。

On our side we have not seen order cancellations, Max, realistically, the biggest impact has been because of the CR. So there's a few bids that we have in that are tied to new programs. The government's not allowed to release new program, our award new programs under CR. So that CR for the defense department, I believe it was mid-April when it was finally lifted or other budgets approved. So the government now has been saying the last few weeks and months aligning and getting money flowing and awarded. So no cancellations in the in the forecast or in our pipeline.

在我們這邊，我們還沒有看到訂單取消，Max，實際上，最大的影響是因為 CR。因此，我們有一些與新項目相關的投標。政府不允許發布新項目，我們在CR下授予新項目。因此，我相信國防部的 CR 終於在四月中旬被取消或其他預算獲得批准。因此，政府現在一直在表示，在過去的幾週和幾個月裡，我們正在調整並讓資金流動並獲得獎勵。因此，在預測或我們的管道中沒有取消。

Okay. And then maybe other outside of defense in other commercial markets?

好的。那麼也許除了其他商業市場的防禦之外？

Yes, we have not seen cancellations in commercial either just some softness, if you will, as we mentioned in Bressner with the European economy. But as we've checked in with experts and data, they're right, there's still an expected recovery in the second half of the year.

是的，我們還沒有看到商業廣告的取消，或者只是出現一些疲軟，如果你願意的話，正如我們在布雷斯納關於歐洲經濟的文章中提到的那樣。但根據我們對專家和數據的核實，他們是對的，預計下半年仍將出現復甦。

All right, guys, thanks for taking my questions.

好吧，夥計們，謝謝你回答我的問題。

Thank you, Max.

謝謝你，麥克斯。

(Operator Instructions)

（操作員說明）

Joe Gomes with NOBLE Capital.

喬·戈麥斯 (Joe Gomes) 與 NOBLE Capital 合作。

Good afternoon. Thanks, for taking the questions.

午安.謝謝您提出問題。

Hi, Joe.

嗨，喬。

So when you talk, one if you could kind of size possibly when you transitioning away, understanding we all do for how big the legacy media customer was. But when you talk about the niche enterprise customers, what size of that type of business you're transitioning away from?

因此，當您談論時，如果您可以在過渡時考慮規模，了解我們都對傳統媒體客戶有多大感到滿意。但是，當您談論利基企業客戶時，您要放棄的此類業務的規模是多少？

Peter, I think you're asking what was the size of the of the immediate customer business we're moving away from now.

彼得，我想你是在問我們現在要放棄的直接客戶業務的規模有多大。

No, we all knew that, when you also say niche enterprise customers that you're transitioning away from. Just trying to get at what size of revenue contribution those customers were making to the company.

不，我們都知道，當您也提到您正在轉變的利基企業客戶時。只是想了解這些客戶對公司的收入貢獻有多大。

Yeah, they were minimal comparative to the media customer.

是的，與媒體客戶相比，他們是微不足道的。

Okay. It sounds lot of opportunity there. You guys think you're going to see some after the second quarter now some sequential growth. But really what's going to give you that confidence, there's just seems to be, you know, we've seen many delays, lot of fits and starts historically. And so just trying to get a better handle on what is there giving you that confidence that we're actually going to start to see it's sequential revenue growth here in the back half of the year?

好的。聽起來那裡有很多機會。你們認為第二季之後你們會看到一些連續成長。但真正能給你信心的是，你知道，歷史上我們已經看到了很多延誤、很多間歇和開始。因此，只是想更好地了解是什麼讓您有信心我們實際上將在今年下半年開始看到收入連續增長？

Yeah. Thanks, Joe. For the question. I think it's a couple of things. So right now we have multiple bids that are out for some of these the customer-funded development programs and a couple of other multi-year contract opportunities that we have out there. So that we'll expect to see from Q2 on to see those awards. Those are the ones that will start to lay in quarter on quarter ability to have a backlog built in. So that gives me confidence.

是的。謝謝，喬。對於這個問題。我認為有幾件事。因此，現在我們有多個投標，其中一些是客戶資助的開發項目，以及我們擁有的其他一些多年合約機會。因此，我們預計從第二季開始就能看到這些獎項。這些將開始按季度建立積壓訂單的能力。這給了我信心。

When I joined the company over a year ago, we did not have that the go for scale of these kinds of programs that we already had proposals out and we're pursuing. So that gives me some good confidence. The other one is I'll take it back to the comment I made as we've gone through and kind of reorganized and reestablished our pipeline around 70% of our pipeline is built out on customers that would be bringing multi-year type programs and opportunities to the company.

當我一年多前加入公司時，我們還沒有達到我們已經提出建議並正在追求的此類計劃的規模。這給了我很大的信心。另一個是我將回到我所做的評論，因為我們已經經歷了並重新組織和重新建立了我們的管道，我們大約 70% 的管道是建立在將帶來多年類型計劃的客戶基礎上的，為公司帶來的機會。

And as we prosecute those, it just continues to build a floor of a consistent available quarter-on-quarter year-on-year revenue that allows us to build off and drive that growth. So given the bids that we already have out and the ones that we have forecasted, we'll be submitting between Q2, Q3, Q4 this year. And that's what gives me the confidence that we drive the sequential growth for this year and establish that kind of firm foundation of kind of multiyear revenue opportunities.

當我們起訴這些措施時，它只是繼續建立一個穩定的季度年收入基礎，使我們能夠建立並推動這種成長。因此，考慮到我們已經給出的出價和我們預測的出價，我們將在今年第二季、第三季和第四季之間提交。這讓我有信心推動今年的連續成長，並為多年收入機會奠定堅實的基礎。

Great. Thanks. Thanks for that. And then I know it's very early days, but just maybe a little color here on, you hired Craig and looking at the international defense and opportunities and some international commercial opportunities? And just maybe kind of give us an update on progress to date?

偉大的。謝謝。感謝那。然後我知道現在還為時過早，但也許這裡有一點色彩，你聘請了克雷格並關注國際防守和機會以及一些國際商業機會？也許能給我們介紹一下迄今為止的進展？

Yes, we're making a steady progress, I think, on that effort. So Craig was the key addition. There's a lot just in the [USDOD] space that is bringing to bear into the pipeline given his experience in the markets. So we're really excited about leveraging that. He's already making an impact in just the few short weeks he's been here.

是的，我認為我們在這方面正在取得穩步進展。所以克雷格是關鍵的補充。鑑於他在市場上的經驗，[USDOD] 領域正在發揮很多作用。因此，我們對利用這一點感到非常興奮。在他來到這裡的短短幾週內，他已經產生了影響。

But in addition, his reach into Canada and some other areas, started to open up for some avenues for us to procure and pursue and look at the build our pipeline and our opportunities to go after given his experience in those markets. And I'd say the other thing is we've really spent in the last year a lot of time continuing to utilize our Bressner facility as an opportunity for channel to market for a lot of the products we're developing out of the US site here.

但除此之外，他對加拿大和其他一些地區的影響力，開始為我們開闢一些途徑來採購、尋求和考慮建立我們的管道以及考慮到他在這些市場的經驗，我們要追求的機會。我想說的另一件事是，去年我們確實花了很多時間繼續利用我們的布雷斯納工廠作為我們在美國網站開發的許多產品的市場通路機會這裡。

And they've done a really good job year on year, growing the amount of product they pull through and sell. We've been able to use that channel through training them and supporting their technical ability and their technical ability to operate with that in our products in Europe, but we've really expanded through trade shows and outreach all across Europe, the UK and into the Middle East with our reach in just the last year. So that's another way, we're finding expanding our international reach with the existing resources that we have as we continue to grow the company and as affordable, we'll look to expand upon that even more.

他們的工作一年比一年做得非常好，他們的產品數量和銷售量都在增加。我們已經能夠透過培訓他們並支持他們的技術能力以及他們在歐洲使用我們的產品的技術能力來使用該管道，但我們確實透過貿易展覽和在歐洲、英國和其他地區的推廣進行了擴展。 就在去年，我們的影響力就擴展到了中東。因此，這是另一種方式，隨著我們不斷發展公司，我們發現利用我們擁有的現有資源來擴大我們的國際影響力，並且在負擔得起的情況下，我們將尋求進一步擴展。

Great. Thanks for taking the question.

偉大的。感謝您提出問題。

Thanks, Joe.

謝謝，喬。

Thank you, Joe.

謝謝你，喬。

(Operator Instructions) It appears that we have no further questions at this time. I will now turn the program back over to our presenters for any additional or closing remarks.

（操作員說明）目前看來我們沒有其他問題了。我現在將把節目交還給我們的主持人，以供補充或結束語。

No additional remark, Jennifer, we thank you for your support and we can transition into the call.

沒有額外的評論，詹妮弗，我們感謝您的支持，我們可以轉入通話。

Thank you. Ladies and gentlemen, this concludes today's teleconference. You may now disconnect.

謝謝。女士們、先生們，今天的電話會議到此結束。您現在可以斷開連線。