ePlus inc (PLUS) 2025 Q3 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the ePlus earnings results conference call. As a reminder, this conference call is being recorded.

女士們、先生們，大家好。歡迎參加 ePlus 收益結果電話會議。提醒一下，本次電話會議正在錄音。

I would like to introduce your host for today's conference. Mr. Kleyton Parkhurst, Senior Vice President. Sir, you may begin.

我想向大家介紹今天會議的主持人。資深副總裁 Kleyton Parkhurst 先生。先生，您可以開始了。

Thank you for joining us today. On the call is Mark Marron, CEO and President; Darren Raiguel, COO and President of ePlus Technology; Elaine Marion, CFO and Erica Stoecker, General Counsel.

感謝您今天加入我們。參加電話會議的是執行長兼總裁 Mark Marron； Darren Raiguel，ePlus Technology 營運長兼總裁；財務長 Elaine Marion 和總法律顧問 Erica Stoecker。

I want to take a moment to remind you that the statements we make this afternoon that are not historical facts may be deemed to be forward-looking statements and are based on management's current plans, estimates and projections.

我想花點時間提醒您，我們今天下午做出的非歷史事實的陳述可能被視為前瞻性陳述，並且基於管理層當前的計劃、估計和預測。

Actual and anticipated future results may vary materially due to certain risks and uncertainties detailed in the earnings release we issued this afternoon and our periodic filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K, quarterly reports on Form 10-Q and other documents we might file with the SEC.

由於我們今天下午發布的收益報告和我們定期向美國證券交易委員會提交的文件（包括我們最近的 10-K 表年度報告、10-Q 表季度報告和我們可能向美國證券交易委員會提交的其他文件）中詳細說明的某些風險和不確定性，實際和預期的未來結果可能會有重大差異。

Any forward-looking statement speaks only as of the date of which the statement is made and the company undertakes no responsibility to update any of these forward-looking statements in light of new information, future events or otherwise.

任何前瞻性陳述僅代表陳述作出之日的觀點，本公司不承擔根據新資訊、未來事件或其他情況更新任何前瞻性陳述的責任。

In addition, we will be using certain non-GAAP measures during the call. We've included a GAAP Financial reconciliation in our earnings release, which is posted on the investor information section of our website at www.eplus.com.

此外，我們將在電話會議中使用某些非公認會計準則指標。我們在收益報告中加入了 GAAP 財務對帳表，該報告發佈在我們的網站 www.eplus.com 的投資者資訊部分。

I'd now like to turn the call over to Mark Marron. Mark?

現在我想把電話轉給馬克馬龍。標記？

Thank you, Kley. Good afternoon, everyone and thank you for joining us. I will give a recap of our fiscal third quarter, 2025 highlights and an update on our business overall. Elaine will follow with a discussion of our financial results, and I will then conclude with an update of our current outlook.

謝謝你，克萊。大家下午好，感謝大家的參與。我將回顧我們第三財季的業績、2025 年的亮點以及我們整體業務的最新情況。接下來，伊萊恩將討論我們的財務業績，然後我將總結我們目前的前景。

We continue to execute on our strategic priorities of expanding our footprint and customer base and broadening our suite of solution and service offerings, as we're investing in the most promising growth areas. We continue to see the evolution of our industry transition to a more radical consumption and subscription-based model which has impacted the comparability of our quarterly results.

我們將繼續執行我們的策略重點，擴大我們的業務範圍和客戶群，拓寬我們的解決方案和服務產品，同時投資最有前景的成長領域。我們繼續看到我們的行業向更積極的消費和訂閱模式轉變，這影響了我們季度業績的可比性。

As noted last quarter, our revenue trends reflect an acceleration of gross billings recorded on a net basis as well as a move towards more ratable revenue models. Software subscriptions orders have continued to increase year-over-year with these deals being recognized on a net basis or ratably. While this evolution helped to contribute to a flat year-over-year revenue, we delivered solid growth in gross billings, gross profit and gross margin.

正如上個季度所指出的，我們的收入趨勢反映了淨額記錄的總帳單的加速成長以及向更可評估的收入模式的轉變。軟體訂閱訂單持續逐年增加，這些交易以淨額或按比例確認。雖然這種轉變導致收入與去年同期持平，但我們的總營業額、毛利和毛利率都實現了穩健成長。

It is also a solid forward indicator for growth with our subscription orders up 51.4% year-over-year, accounting for almost 46% of our open orders currently, compared to 31.7% last year and growth of over $100 million. On a consolidated basis, total revenues were flat as lower product sales were partially offset by faster growing high margin service revenue, which is partially reflected in our gross profit being up 5.3%.

這也是一個強勁的成長指標，我們的訂購訂單年增 51.4%，目前占我們未結訂單的近 46%，而去年這一比例為 31.7%，成長超過 1 億美元。從合併口徑來看，總收入持平，因為較低的產品銷售額被更快成長的高利潤服務收入部分抵消，這部分反映在我們的毛利成長 5.3% 上。

We believe customers are still digesting purchases from last year's inventory flush primarily impacting our networking and data centre cloud sales. The main factor though was that we had a much higher gross than net adjustment this year, which was up 840 basis points from the prior year and impacted our top line revenues by approximately $60 million.

我們相信客戶仍在消化去年庫存激增帶來的購買量，這主要影響了我們的網路和資料中心雲端銷售。但主要因素是，今年我們的總調整額遠高於淨調整額，比前一年高出 840 個基點，對我們的營業收入產生了約 6,000 萬美元的影響。

This year-over-year increase in SG&A expenses was primarily due to increase head count from the Bailiwick acquisition as-well-as investments in the business. Of note, much of the increased head count were customer facing employees.

銷售、一般及行政費用 (SG&A) 年成長主要是由於 Bailiwick 收購以及業務投資導致員工人數增加。值得注意的是，新增員工大部分都是面對客戶的員工。

Adjusted EBITDA decreased 15% as higher earnings in the finance segment were offset by a decrease in our technology business adjusted EBITDA. We continue to see softer-than-expected hardware sales and lower demand from some enterprise customers.

調整後的 EBITDA 下降了 15%，因為金融部門的收益增加被技術業務調整後的 EBITDA 的下降所抵消。我們繼續看到硬體銷售低於預期，並且一些企業客戶的需求下降。

As we have moved towards the services led model, our services revenues continue to grow nicely increasing 52% year-on-year and reaching a new high of $114 million with services gross profit up 45% year-over-year.

隨著我們轉向服務主導模式，我們的服務收入持續保持良好成長，年增 52%，達到 1.14 億美元的新高，服務毛利年增 45%。

Revenue in the quarter benefited from the acquisition of Bailiwick early in the year, which is integrating well and organic managed services revenue increased 28% year-over-year. Our finance segment delivered another solid quarter with revenue increasing 20% primarily due to an increase in proceeds from the sale of equipment, as-well-as higher portfolio earnings and transaction gains.

本季營收受惠於年初對 Bailiwick 的收購，該公司整合良好，有機託管服務收入較去年同期成長 28%。我們的金融部門又一個季度表現穩健，收入成長了 20%，這主要歸功於設備銷售收益的增加，以及投資組合收益和交易收益的增加。

As we look at our longer-term growth drivers AI is a good place to start, in an ePlus AI survey. 76% of IT leaders have said their organizations have yet to reach AI maturity. They noted the top challenges they are facing are a skills gap, security concerns and cost.

ePlus 的一項 AI 調查顯示，當我們著眼於長期成長動力時，AI 是一個很好的起點。 76% 的 IT 領導者表示，他們的組織尚未達到 AI 成熟度。他們指出，他們面臨的最大挑戰是技能差距、安全問題和成本。

There is a disparity between AI aspirations and AI readiness and most companies are in the early stages of their AI journey. With that, we continue to build out our AI Ignite and Secure GenAI programs that deliver services and solutions our customers need to make informed decisions.

人工智慧願景與人工智慧準備之間存在差距，大多數公司都處於人工智慧之旅的早期階段。藉此，我們繼續建立我們的 AI Ignite 和 Secure GenAI 計劃，為客戶提供做出明智決策所需的服務和解決方案。

Our Secure GenAI program is a platform developed by ePlus utilizing leading AI technology from our strategic partners to deliver a Secure GenAI chatbot experience. This allows customers to test use cases and convert them into actionable plans with built in guard rails. Ultimately, our Secure GenAI program helps our customers more quickly make informed decisions and adopt GenAI safely.

我們的 Secure GenAI 程式是由 ePlus 開發的平台，利用我們策略夥伴的領先 AI 技術來提供 Secure GenAI 聊天機器人體驗。這使得客戶能夠測試用例並將其轉換為具有內建護欄的可操作計劃。最終，我們的安全 GenAI 計劃可幫助我們的客戶更快地做出明智的決策並安全地採用 GenAI。

We're also leveraging the benefits of AI internally to create efficiencies that improve customer satisfaction, and we expect it will provide cost savings long-term. With our internal use of AI, we're seeing an increase in quality, due to automation and an ability to resolve inquiries and tickets faster.

我們也在內部利用人工智慧的優勢來提高效率，從而改善客戶滿意度，我們預計它將長期節省成本。隨著我們內部使用人工智慧，我們看到品質有所提高，這得益於自動化以及更快解決查詢和票證的能力。

As such, we expect that AI will help us deliver enhanced customer experiences. Security is key to customers long-term road map, especially related to AI initiatives around data-strategy, governance and risk. Our security offerings also continue to be a solid performer for us.

因此，我們希望人工智慧能夠幫助我們提供增強的客戶體驗。安全是客戶長期路線圖的關鍵，尤其是與資料策略、治理和風險相關的人工智慧計畫。我們的安全產品也持續表現穩健。

Our security gross billings accounted for 21.2% of our trailing 12 months gross billings. We continue to benefit from very attractive cash flow characteristics. In turn, our balance sheet provides financial flexibility to support future growth initiatives.

我們的安全總營業額佔過去 12 個月總營業額的 21.2%。我們繼續受益於極具吸引力的現金流特徵。反過來，我們的資產負債表提供了財務靈活性來支持未來的成長計畫。

We will continue to be disciplined and strategic with our deployment of capital, as we prioritize investing in the business to drive long term growth both organically and via M&A transactions as-well-as return excess cash to our shareholders.

我們將繼續嚴格且有策略地部署資本，優先投資業務，透過有機成長和併購交易推動長期成長，並向股東返還多餘的現金。

I will now turn the call over to Elaine to discuss our financial results in more detail, Elaine?

我現在將電話轉給 Elaine，讓她更詳細地討論我們的財務業績，Elaine？

Thank you, Mark, and thank you everyone for joining us today. I will now review our financial performance for the third quarter of fiscal 2025. Consolidated net sales of $511 million were modestly above the $509.1 million reported in last year's third quarter. In our technology business sales were flat year-over-year as the decline in product sales was more than offset by continued strength in services demand.

謝謝你，馬克，也謝謝大家今天的到來。我現在將回顧我們 2025 財年第三季的財務表現。合併淨銷售額為 5.11 億美元，略高於去年第三季的 5.091 億美元。我們的技術業務銷售額與去年同期持平，因為產品銷售的下降被持續強勁的服務需求所抵消。

The decline in product sales reflects the a shift towards sales of third-party software and services resulting in higher netted down revenues as mark mentioned as-well-as lower sales of product as a result of last year's supply chain easing particularly from enterprise customers.

產品銷售額的下降反映了向第三方軟體和服務銷售的轉變，導致淨收入增加（正如馬克所提到的），同時由於去年供應鏈（尤其是來自企業客戶的）的放鬆，產品銷售額也下降。

Notably gross billings growth of 6.6% year-over-year outpace net sales growth highlighting continued demand for ePlus offerings and the netting down effect. Our strategic focus on services continues to deliver results as service revenue grew 52% in the quarter with strong contribution from both professional and managed services.

值得注意的是，總營業額年增 6.6%，超過了淨銷售額的成長，凸顯了對 ePlus 產品的持續需求和淨額結算效應。我們對服務的策略重點持續取得成果，本季服務收入成長了 52%，專業服務和託管服務的貢獻強勁。

The professional services segment benefited from the Bailiwick acquisition while growth in the managed services segment was broad based. Within our technology business, our two largest markets continue to be telecom, media and entertainment and technology representing 24% and 17% respectively of technology business net sales on a trailing 12-month basis.

專業服務部門受益於 Bailiwick 收購，而託管服務部門的成長基礎廣泛。在我們的技術業務中，我們最大的兩個市場仍然是電信、媒體和娛樂以及技術，分別佔過去 12 個月技術業務淨銷售額的 24% 和 17%。

SLED, healthcare and financial services accounted for 16%, 13% and 10% respectively, with the remaining 20% from other end markets. Our financing segment posted a solid quarter with revenues of $17.8 million up 19.8% from $14.9 million in last year's third-quarter due to higher proceeds from sales of equipment and portfolio earnings.

SLED、醫療保健和金融服務分別佔16%、13%和10%，其餘20%來自其他終端市場。我們的融資部門本季表現穩健，營收為 1,780 萬美元，較去年第三季的 1,490 萬美元成長 19.8%，這得益於設備銷售收益和投資組合收益的增加。

Consolidated gross profit grew 5.3% faster than our revenue growth to $140.9 million. Representing a consolidated growth margin of 27.6% up from 26.3% in the prior year. The 130-basis point expansion was primarily driven by higher product margins which benefited from a shift in mix to third-party maintenance and subscriptions.

綜合毛利成長 5.3%，達到 1.409 億美元，比營收成長快 5.3%。綜合成長率為 27.6%，高於上年度的 26.3%。130 個基點的擴張主要得益於產品利潤率的提高，這得益於產品組合向第三方維護和訂閱的轉變。

While product margins were higher than last year, a higher proportion of product sales to certain enterprise customers at lower overall margins weighed on product margins. But this was offset by contribution from the netting effect I've mentioned.

雖然產品利潤率高於去年，但由於產品銷售給某些企業客戶的比例較高，且整體利潤率較低，因此對產品利潤率構成了壓力。但這被我所提到的淨額效應的貢獻所抵消。

Professional services growth margin declined to 40.1% from 43.3% due to a shift in mix of services provided. While managed services gross margin declined to 29.8% from 31.8%. Consolidated operating expenses increased 17.3% year-over-year to $112.4 million.

由於所提供服務組合的轉變，專業服務成長利潤率從 43.3% 下降至 40.1%。而託管服務毛利率則從31.8%下降至29.8%。綜合營運費用年增 17.3% 至 1.124 億美元。

Primarily reflecting increased head count due to the Bailiwick and PEAK Resources acquisitions as well as continued investments in our business to support our growth. Our head count at the end of the quarter increased to 2,291 from 1,897 a year ago. Primarily reflecting additions of customer facing professionals acquired in the Bailiwick transaction.

主要反映了由於 Bailiwick 和 PEAK Resources 收購而導致的員工人數增加，以及對我們業務的持續投資以支持我們的成長。本季末，我們的員工人數從一年前的 1,897 人增加到 2,291 人。主要反映了 Bailiwick 交易中獲得的面向客戶的專業人員的增加。

Operating income was $28.5 million down from $38 million and earnings before taxes declined to $32.2 million from $38.4 million in the prior year quarter. During the third quarter, we realized interest income of $1.8 million and foreign exchange gains of $1.9 million resulting in other income of $3.7 million. Our effective tax-rate was 25% versus 29% a year ago, due to lower state taxes.

營業收入從去年同期的 3,800 萬美元下降至 2,850 萬美元，稅前利潤從去年同期的 3,840 萬美元下降至 3,220 萬美元。第三季度，我們實現利息收入 180 萬美元，外匯收益 190 萬美元，其他收入 370 萬美元。由於州稅較低，我們的有效稅率為 25%，而一年前為 29%。

Third quarter, consolidated net earnings were $24.1 million or $0.91 per share down from net earnings of $27.3 million or a $1.02 per share in last year's third quarter. Non-GAAP diluted earnings came in at a $6 per share compared to a $18 per share last year. Our diluted share count at the end of the quarter was $26.6 million compared to $26.7 million in the prior year third quarter.

第三季度，合併淨收益為 2,410 萬美元或每股 0.91 美元，低於去年第三季的淨收益 2,730 萬美元或每股 1.02 美元。非公認會計準則稀釋收益為每股 6 美元，去年為每股 18 美元。本季末我們的稀釋股本為 2,660 萬美元，而去年同期第三季的稀釋股本為 2,670 萬美元。

Consolidated adjusted EBITDA amounted to $39.2 million versus $46.2 million in the third quarter of fiscal '24, for the nine months ended December 31, 2024. Our consolidated net sales totaled $1.57 billion down from $1.67 billion in the prior year.

截至 2024 年 12 月 31 日的九個月，合併調整後 EBITDA 為 3,920 萬美元，而 2024 財年第三季為 4,620 萬美元。我們的綜合淨銷售額總計 15.7 億美元，低於上年的 16.7 億美元。

The decrease primarily reflects lower product sales in the technology business, partially offset by growth in services and stronger performance in our financing segment. Technology business, net sales were $1.52 billion year-to-date compared to $1.63 billion last year.

這一下降主要反映了技術業務產品銷售額的下降，但服務業務的成長和融資部門業績的增強部分抵消了這一下降。科技業務今年迄今的淨銷售額為 15.2 億美元，去年同期為 16.3 億美元。

Despite the decline in net sales, gross billings in the technology business were essentially flat year-over- year, at 2.49 billion. Year-to-date consolidated gross profit rose 0.7% to $423.4 million while gross margin rose 180 basis points to 27%.

儘管淨銷售額下降，但科技業務的總營業額與去年同期基本持平，為 24.9 億美元。年初至今的綜合毛利潤上漲 0.7% 至 4.234 億美元，毛利率上漲 180 個基點至 27%。

Gross margin expansion was driven by higher product margins which benefited from an increase in netted down revenues partially offset by lower upfront margins. For the nine months ended December 31, 2024, our consolidated net earnings were $82.8 million or $3.10 per diluted share, compared to $93.8 million or $3.52 per diluted share in the comparable period last year.

毛利率的擴大是由產品利潤率的提高所推動的，產品利潤率的提高得益於淨收入的增加，但前期利潤率的降低部分抵消了這一增長。截至 2024 年 12 月 31 日的九個月，我們的合併淨收益為 8,280 萬美元或每股攤薄收益 3.10 美元，而去年同期為 9,380 萬美元或每股攤薄收益 3.52 美元。

And non-GAAP earnings per share were $3.56 versus $3.99 . Adjusted EBITDA was $134.4 million down from $153.6 million in the comparable period last year. We ended the quarter with cash and cash equivalents of $253.1 million consistent with the balance at the close of fiscal 2024.

非 GAAP 每股盈餘分別為 3.56 美元和 3.99 美元。調整後的 EBITDA 為 1.344 億美元，低於去年同期的 1.536 億美元。本季末，我們的現金和現金等價物為 2.531 億美元，與 2024 財年末的餘額一致。

Operating cash flow for the first nine months was $141.2 million compared to $143.5 million last year and included cash used to fund working capital, the Bailiwick acquisition and share repurchases. We ended the quarter with $99 million in inventory down from $139.7 million at the end of fiscal 2024 inventory turns were 13 days down significantly from 27 days in the third quarter of fiscal 2024.

前九個月的營運現金流為 1.412 億美元，而去年同期為 1.435 億美元，其中包括用於資助營運資金、Bailiwick 收購和股票回購的現金。本季末，我們的庫存為 9,900 萬美元，低於 2024 財年末的 1.397 億美元，庫存週轉時間為 13 天，較 2024 財年第三季的 27 天大幅下降。

As a result, our cash conversion cycle improved to 32 days down meaningfully from 54 days in the prior year. During the first nine months of the year, we repurchased approximately 380,000 shares under our repurchase plan at a cost of $30 million.

因此，我們的現金轉換週期從去年的 54 天大幅縮短至 32 天。今年前九個月，我們根據回購計畫回購了約 38 萬股，耗資 3,000 萬美元。

Our strategy continues to focus on our core priorities, driving organic growth, expanding through a accretive acquisitions and returning capital to shareholders through our repurchase program.

我們的策略持續專注於我們的核心優先事項，推動有機成長，透過增值收購進行擴張，並透過回購計畫向股東返還資本。

With that, I will turn the call back over to Mark. Mark?

說完這些，我會把電話轉回給馬克。標記？

Thank you, Elaine. We are investing both organically and in-organically to develop a portfolio that provides us with multiple levers for growth across a broad range of verticals to drive growth and diversification. Growth of our gross profit and services are key indicators of the success of our go to market plans and being a trusted adviser for our customers.

謝謝你，伊萊恩。我們正在進行有機投資和非有機投資，以開發一個投資組合，為我們提供跨越廣泛垂直領域的多種成長槓桿，以推動成長和多樣化。我們的毛利和服務的成長是我們進入市場計劃的成功以及成為客戶值得信賴的顧問的關鍵指標。

Our recent results reflect both the fast growth of our services led business model and the accelerating shift towards ratable subscription and as a service revenue recognition model. This has resulted in mixed results for the quarter, and we will continue to adapt and adjust as the market transitions. As a result, we're adjusting our fiscal 2025 financial outlook.

我們最近的業績既反映了我們以服務為主導的業務模式的快速成長，也反映了向按比例訂閱和服務收入確認模式的加速轉變。這導致本季的業績好壞參半，我們將繼續隨著市場轉型而適應和調整。因此，我們正在調整 2025 財年的財務前景。

Turning to guidance, we now forecast revenue range of $2.07 billion to $2.11 billion for fiscal year 2025 and an adjusted EBITDA range of $165 million to $171 million. Our guidance reflects higher gross to net adjustments than previously expected and also factors in the near-term potential of tariffs and how this might affect short term decisions. We will continue to monitor this closely and expect to share more insight at the time of our year end conference call.

談到指引，我們現在預測 2025 財年的營收範圍為 20.7 億美元至 21.1 億美元，調整後的 EBITDA 範圍為 1.65 億美元至 1.71 億美元。我們的指導反映了比之前預期更高的總額與淨額調整，同時也考慮了關稅的近期潛力以及這可能如何影響短期決策。我們將繼續密切關注此事，並期望在年底電話會議上分享更多見解。

We are making investments in the business focusing on high growth areas where we seek the best return opportunities, and we are confident this will support our commitment to growth in 2025 and beyond. Our balance sheet and financial condition are healthy, which gives us a solid foundation for expansion.

我們正在對業務進行投資，重點關注高成長領域，尋求最佳回報機會，我們相信這將支持我們對 2025 年及以後成長的承諾。我們的資產負債表和財務狀況健康，這為我們的擴張奠定了堅實的基礎。

In conclusion, we remain confident in the growth opportunities for our business moving forward and our ability to execute.

總之，我們對未來業務的成長機會和執行能力仍然充滿信心。

Operator, please open the line for questions.

接線員，請打開熱線以回答問題。

(Operator Instructions)

（操作員指示）

Maggie Nolan, William Blair

瑪吉諾蘭，威廉布萊爾

Hi, thank you. Can you talk a little bit about your expectations for product sales that are included in the guide and maybe a couple of quarters beyond that?

你好，謝謝。您能否談談對指南中包含的產品銷售情況以及未來幾季的預期？

Sorry, Maggie, did you say, we didn't hear your expectation for product sales in the quarter and then going forward.

抱歉，瑪吉，您說的是，我們沒有聽到您對本季及未來產品銷售的預期。

Yeah, the fiscal fourth quarter and if you can go a couple quarters beyond that flush out the trends you're seeing, given that it's been a weak spot.

是的，第四財季以及之後幾季的情況，你就能發現其中的趨勢，因為第四財季一直是個弱點。

Yeah, it's actually -- I think we noted it on the last earnings call as well Maggie. That there's a softening in the market around some of the hardware or product demands If you will. We specifically saw it with some select enterprise accounts in this quarter. We would expect it to continue into next quarter.

是的，事實上──我想我們在上次財報電話會議上也提到了這一點，瑪姬。如果你願意的話，市場對某些硬體或產品的需求會減弱。我們在本季的一些精選企業帳戶中特別看到了這一點。我們預計這種情況將持續到下個季度。

The other things that affected our, I'll say bottom line not so much top line, was some of the upfront gross margins on product sales that was more of an [anomaly], but that was offset by the netted down revenues. The other interesting thing in play here, Maggie is the market is really changing.

其他影響我們績效的因素（我想說的是，影響的是底線，而不是營收）是產品銷售的部分前期毛利率，這更像是一種[異常]現象，但被淨收入所抵消。這裡發生的另一件有趣的事情是，瑪吉，市場確實正在改變。

The OEMs are going more to, as a service consumption subscription model. So they're recognized on a net and ratable basis. I think you may have seen our netted down revenues; product sales were actually affected by 840 basis points. To put that in perspective, that's about $60 million in net sales. That would have went to our top line if it were flat to last year.

OEM 正在更多地採用服務消費訂閱模式。因此，它們是按照淨額和按比例計算的。我想你可能已經看到了我們的淨收入；產品銷售實際上受到了840個基點的影響。從這個角度來看，這相當於約 6,000 萬美元的淨銷售額。如果與去年持平，將進入我們的營收行列。

So it's a moving target. I would expect that they continue to be a soft demand for Q4 and then would expect it to start to pick up a little bit as we move into our Q1.

所以這是一個移動的目標。我預計第四季度的需求將繼續疲軟，然後隨著我們進入第一季度，預計需求將開始略有回升。

So on that last point, Mark, I mean, we've talked about the shift towards netted down product revenues. Are you calling an acceleration? Do you have an idea of maybe what might be driving that trend to accelerate at this moment in time?

因此，關於最後一點，馬克，我的意思是，我們已經討論了向淨產品收入的轉變。你在調用加速嗎？您是否知道目前是什麼原因推動了這一趨勢的加速發展？

Yeah, we've seen a couple different things Maggie. One, we still don't know if it's a new trend, if you look at just the last two quarters, last quarters are netted down revenues for product sales was affected by 940 basis points this quarter was 840 basis points.

是的，我們看到了一些不同的東西，瑪姬。首先，我們還不知道這是否是一個新趨勢，如果只看過去兩個季度，上個季度產品銷售淨收入受到了 940 個基點的影響，而本季度則受到了 840 個基點的影響。

That's significantly higher than last year and higher than what we were projecting in the beginning of the year. So there is that play, what's really happening here is the OEMs are changing how they're going to market. As we sell more software that subscription normally recognized on a net or maybe an annual basis. So it's really the product mix and solutions that we're selling that's affecting us right now.

這比去年同期高出很多，也高於我們年初的預測。所以，這就是實際情況，原始設備製造商正在改變他們的行銷方式。隨著我們銷售的軟體越來越多，訂閱費通常會以淨額或年度計算。因此，目前真正影響我們的是我們銷售的產品組合和解決方案。

Okay, thank you.

好的，謝謝。

No problem. Good hearing from you, Maggie. We'll talk to you soon.

沒問題。很高興收到你的來信，瑪姬。我們很快會和你聯絡。

Greg Burns, Sidoti & Company.

格雷格·伯恩斯（Greg Burns），Sidoti & Company。

Good afternoon. So I just wanted to talk, I guess a little bit more about the demand environment. I know you've been calling out this digestion of some of the product that's in the channel from the supply chain improving over the last year.

午安.所以我只是想多談談需求環境。我知道您一直在呼籲消化去年供應鏈管道中的一些產品。

That seems to be lingering longer than, probably we would have expected. So is there anything else going on what are you hearing from your customers? Like, is it beyond that this point? Is there other things driving, the soft demand or is it really just this digestion of product in the channel?

這似乎比我們預期的持續時間更長。那麼，您從客戶那裡聽到了什麼其他消息嗎？例如，它超出了這個點嗎？是否有其他因素推動，軟需求還是只是通路對產品的消化？

Yeah, it's the digestion, Greg. We can see it specifically in the networking space and a few select enterprise customers. So it is around supply chain for the most part. There are things going on overall in the industry, I think, as with tariffs and doge and everything else that's going on, I do think the election actually slowed things down a little bit for us in the beginning of the quarter.

是的，這是消化，格雷格。我們可以在網路領域和一些精選的企業客戶中看到這一點。因此，它主要與供應鏈有關。我認為，整個行業都在發生一些事情，例如關稅、總督和其他正在發生的事情，我確實認為選舉實際上在本季度初讓我們的業務放緩了一點。

We did see our billings were flat to down in the October, November time frame and picked up in December. But we didn't pick up a lot of what I call the year end flush or what we normally expect in this quarter. So I those are still the cases there. I'll say a customer set standpoint, both sides and by vertical.

我們確實看到我們的帳單在 10 月和 11 月期間持平或下降，但在 12 月有所回升。但我們並沒有獲得很多我所說的年底成長或我們通常預期的本季成長。所以我認為那裡的情況仍然如此。我會說一個客戶設定的立場，兩側都是垂直的。

We're pretty diversified in fact, we've actually diversified more with the Bailiwick acquisition with some of their customers or expanded the verticals we were in some cases, so we feel somewhat protected long term, but there are some things going on that are affecting decisions right now.

事實上，我們的業務相當多元化，透過收購 Bailiwick 的部分客戶，我們實際上實現了更加多元化，或者在某些情況下擴大了我們的垂直業務，因此我們感到從長期來看受到了一定程度的保護，但目前發生的一些事情正在影響我們的決策。

Okay, and then in terms of this on-going shift towards more software subscription ratable models. Can you just talk about like what the value proposition for a VAR is in that type of model? Is there an increased risk of maybe this intermediation over time if can they go more easily direct to our customers with that model?

好的，然後就這種向更多軟體訂閱評級模式的持續轉變而言。您能談談這種模型中 VAR 的價值主張是什麼嗎？如果他們能透過這種模式更輕鬆地直接面向我們的客戶，那麼隨著時間的推移，這種中介的風險是否會增加？

No, Greg. In fact, it's actually an opportunity for us to build up our services. So in a lot of cases with the subscription, there's add on services, there's renewals, there's what they call life cycle management. So you try to get them to adopt the technology or software if you will up sell additional features and an incremental service, maybe provide some type of staffing and or managed service. So it's no different in terms of -- with the subscription versus hardware. I believe that would affect the channel.

不，格雷格。事實上，這實際上是我們建立服務的一個機會。因此，在許多情況下，訂閱都有附加服務、續訂，這就是所謂的生命週期管理。因此，如果您願意銷售附加功能和增量服務，或提供某種類型的人員配備和/或託管服務，您會嘗試讓他們採用該技術或軟體。因此，就訂閱和硬體而言沒有什麼不同。我相信這會影響通路。

Okay, great. Thank you.

好的，太好了。謝謝。

No problem. Thanks Greg.

沒問題。謝謝格雷格。

As there are no further questions at this time, I would like to turn the call back over to Mr Mark Marin for closing remarks.

由於目前沒有其他問題，我想將電話轉回給馬克馬林先生作結束語。

All right. Thank you everybody. Look I will read it; we still feel very strongly about our strategy and our focus areas that we're in. We're going to continue to build out our services led model. Our services were up 52%. There were approximately 23% of our net sales this quarter. We'll continue to leverage our customer base and customer segments.

好的。謝謝大家。看，我會讀它；我們仍然對我們的策略和我們所關注的領域有強烈的信心。我們將繼續建立我們的服務主導模式。我們的服務成長了52%。本季我們的淨銷售額約佔23%。我們將繼續利用我們的客戶群和客戶群。

Our strong balance sheet gives us flexibility to make in-organic and organic moves. So we feel good where we're positioned, and we've been in business for a long time. So we will adapt and adjust to this new norm, short term and be able to make the moves that we need to make. So I want to thank everybody for joining us today and look forward to seeing or hearing you on the next call. Thank you.

我們強大的資產負債表使我們能夠靈活地採取內部和內部措施。因此，我們對自己的定位感到滿意，而且我們已經經營了很長時間。因此，我們將在短期內適應並調整這個新常態，並能夠採取我們需要採取的行動。因此，我要感謝大家今天的參加，並期待在下次電話會議上見到或聽到你們。謝謝。

That concludes today's meeting. Thank you for your participation. You may now disconnect.

今天的會議到此結束。感謝您的參與。您現在可以斷開連線。