TSS Inc (TSSI) 2024 Q3 法說會逐字稿

Greetings and welcome to the TSS, Inc. Third quarter 2024 financial results conference call.

歡迎參加 TSS, Inc. 2024 年第三季財務業績電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, James Carbonara, Investor Relations at Hayden IR.

現在我很高興向您介紹主持人，Hayden IR 投資者關係部門的 James Carbonara。

Thank you.

謝謝。

Sir, you may begin.

先生，您可以開始了。

Thank you, operator, and good afternoon, everyone.

謝謝接線員，大家下午好。

Thank you for joining us for TSS's conference call to discuss the Company's third quarter 2024 financial results.

感謝您參加 TSS 電話會議，討論本公司 2024 年第三季的財務表現。

Joining me today on this call are Darryll Dewan, President and CEO of TSS and Danny Chism, the Company's CFO.

今天參加本次電話會議的有 TSS 總裁兼執行長 Darryll Dewan 和公司財務長 Danny Chism。

As we begin the call, I'd like to remind everyone to take note of the cautionary language regarding forward-looking statements contained in the press release we issued today.

當我們開始通話時，我想提醒大家注意我們今天發布的新聞稿中包含的有關前瞻性陳述的警告性語言。

That same language applies to comments and statements made on today's conference call.

同樣的語言也適用於今天的電話會議上發表的評論和聲明。

This call will contain time-sensitive information as well as forward-looking statements, which are accurate only as of today, November 14, 2024.

本次電話會議將包含時間敏感資訊以及前瞻性陳述，這些資訊僅截至今天（2024 年 11 月 14 日）準確。

TSS expressly disclaims any obligation to update, amend, supplement, or otherwise review any information or forward-looking statements made on this conference call or replayed to reflect events or circumstances that may change or arise after the date indicated except as otherwise required by applicable law.

TSS 明確表示不承擔更新、修改、補充或以其他方式審查本次電話會議中所做或重播的任何資訊或前瞻性陳述的義務，以反映所示日期之後可能發生變化或出現的事件或情況，除非適用法律另有要求。

For a list of the risks and uncertainties that may affect the Company's future performance, please refer to the Company's periodic filings with the SEC.

有關可能影響公司未來業績的風險和不確定性列表，請參閱本公司向 SEC 定期提交的文件。

In addition, we will be referring to non-GAAP financial measures.

此外，我們也將提及非公認會計準則財務指標。

A reconciliation of the differences between these measures with the most directly comparable financial measures calculated in accordance with U.S. GAAP is included in today's press release.

今天的新聞稿中包含了這些指標與根據美國公認會計原則計算的最直接可比較的財務指標之間的差異的調節。

With that, Darryll, I'll turn the call over to you.

這樣，達裡爾，我會把電話轉給你。

Great.

偉大的。

Thank you, James, and good afternoon, everyone.

謝謝詹姆斯，大家下午好。

Thank you for joining us today for our third quarter 2024 earnings conference call.

感謝您今天參加我們的 2024 年第三季財報電話會議。

I'm very excited to share that today marks my two-year anniversary with TSS.

我很高興與大家分享，今天是我加入 TSS 兩週年紀念日。

I'm very proud of our team's accomplishments to date and we look forward to continuing this journey together.

我對我們團隊迄今為止所取得的成就感到非常自豪，我們期待著共同繼續這趟旅程。

You will hear today we have a lot of exciting things going on.

今天你會聽到我們發生了很多令人興奮的事情。

We delivered exceptional results in the third quarter across all key financial and operational metrics and customer satisfaction remains high.

我們在第三季的所有關鍵財務和營運指標上都取得了出色的業績，客戶滿意度仍然很高。

By all measures, it was a great quarter for TSS.

從各方面來看，對於 TSS 來說，這個季度都表現出色。

This strong performance demonstrates that we are successfully executing our business strategy to deliver growth in revenue, earnings, and cash flow while scaling our business and operations.

這一強勁的業績表明我們正在成功執行我們的業務策略，以實現收入、利潤和現金流的成長，同時擴大我們的業務和營運。

The actions we took in 2023 to streamline our operations by investing in people, systems and the physical layout of our main integration facility are producing excellent outcomes.

我們在 2023 年透過對人員、系統和主要整合設施的實體佈局進行投資來簡化營運而採取的行動正在產生出色的成果。

We are delivering for our customers, our shareholders, while laying a foundation for accelerating growth.

我們為客戶、股東提供服務，同時為加速成長奠定基礎。

For the third quarter, we delivered $70.1 million in total revenue, representing year-over-year growth of 689%, a nearly 12-fold increase in net income compared to the third quarter of last year, and an exponential increase in diluted EPS from just a $0.01 in Q3 of last year to $0.10 in Q3 of this year.

第三季度，我們實現總營收 7,010 萬美元，年增 689%，淨利較去年第三季增長近 12 倍，稀釋後每股收益呈指數級增長去年第三季僅為0.01 美元，今年第三季度為0.10 美元。

Importantly, the increases were driven by growth across all of our service offerings.

重要的是，這一成長是由我們所有服務產品的成長所推動的。

These impressive financial results are a direct outcome of our commitment to operational excellence, strengthening relationships with our customers, and highly attractive market in which we operate.

這些令人印象深刻的財務表現是我們致力於卓越營運、加強與客戶的關係以及我們所在的極具吸引力的市場的直接結果。

As you may recall, we made a significant investment in our production capacity in the second quarter.

您可能還記得，我們​​在第二季對產能進行了大量投資。

With these operational improvements, we have decreased our cycle time to complete racks and thereby increased our volume throughput.

透過這些營運改進，我們縮短了完成貨架的周期時間，從而提高了吞吐量。

Computer racks that historically taken a company two to three weeks to complete are now regularly down to turn times of less than one day.

過去公司需要兩到三週才能完成的電腦機架現在通常可以縮短到不到一天的時間。

The first stage of a highly publicized integration program for AI-enabled racks came online at the beginning of June.

廣為人知的人工智慧機架整合計​​畫的第一階段已於六月初上線。

The initial program carried well into the third quarter.

最初的計劃順利實施到了第三季。

Our procurement business where we sourced third-party hardware, software, and services, delivered an outstanding performance in Q3.

我們採購第三方硬體、軟體和服務的採購業務在第三季表現出色。

In last quarter's earning call, we shared that we expected procurement revenues in the third quarter to exceed $50 million in revenue.

在上季的財報電話會議上，我們表示預計第三季的採購收入將超過 5,000 萬美元。

I'm proud to report that we exceeded that target by a fair margin with $60.5 million procurement revenues in a quarter compared to $5.4 million this quarter a year-ago.

我很自豪地向大家報告，我們本季的採購收入為 6,050 萬美元，遠高於去年同期的 540 萬美元，超出了這一目標。

For those familiar with our history, you'll recall that our procurement segment often experiences quarter-to-quarter fluctuations due to size, timing, and revenue recognition methods used for these orders.

對於熟悉我們歷史的人來說，您會記得，由於這些訂單所使用的規模、時間和收入確認方法，我們的採購部門經常會經歷季度波動。

Although volumes may fluctuate quarter-to-quarter, this business lines overall trajectory remains upward consistently and increasingly contributing to our profitability.

儘管銷售量可能會按季度波動，但該業務線的整體軌跡仍然持續上升，並日益為我們的盈利能力做出貢獻。

Shifting to a quick look at our facilities management activities, primarily for our modular data center or MDCs as we refer to it, we continue to experience moderate overall growth with this segments revenue up 8% this quarter.

快速瀏覽我們的設施管理活動，主要是我們所說的模組化資料中心或 MDC，我們繼續經歷適度的整體成長，本季該部門的收入成長了 8%。

This is a more predictable business line for us with healthy gross margins, typically north of 50%.

對我們來說，這是一個更可預測的業務線，毛利率良好，通常在 50% 以上。

I've previously highlighted a few challenges in this business, primarily from rapidly increasing compute density and evolving cooling requirements.

我之前強調過該業務中的一些挑戰，主要來自快速增加的計算密度和不斷變化的冷卻要求。

We believe the expanding adoption of AI-enabled technology will drive incremental demand for MDCs and produce revenue in 2025 and beyond due primarily long lead times for the new modular data centers.

我們相信，人工智慧技術的廣泛採用將推動對 MDC 的需求增加，並在 2025 年及以後產生收入，這主要是由於新的模組化資料中心的交付時間較長。

Whether this materializes predicted remains to be seen, we are strategically positioned to capitalize on this trend particularly if AI clusters are delivered as freestanding racks or modules.

這是否會實現預期還有待觀察，我們的策略定位是利用這一趨勢，特別是如果人工智慧集群以獨立式機架或模組的形式提供。

We believe this maybe an attractive option for medium to large enterprises that want computing power.

我們相信這對於需要運算能力的大中型企業來說可能是個有吸引力的選擇。

They may not have the ability to scale and justify the cost of installing new direct liquid cooling systems needed to support the next generations of expected AI rack technology and MDC maybe a cost effective way for enterprises to enter that space.

他們可能沒有能力擴展並證明安裝支援下一代預期 AI 機架技術所需的新直接液體冷卻系統的成本合理，而 MDC 可能是企業進入該領域的一種經濟高效的方式。

Our key customers have robust pipelines and deals are beginning to close.

我們的主要客戶擁有強大的管道，交易已開始完成。

So our strategic inclusion and key customer programs signals optimism by us as pipelines materialize.

因此，我們的策略包容性和關鍵客戶計劃表明我們對管道的實現持樂觀態度。

Subsequent to quarter end, we entered into a long-term agreement with our primary customer, solidifying our position as a key partner for executing its technology roadmap by developing required integration and testing capacity to meet the demand driven by high-performance infrastructure supporting generative AI.

季度末後，我們與主要客戶簽訂了長期協議，透過開發所需的整合和測試能力來滿足支援生成人工智慧的高效能基礎設施驅動的需求，從而鞏固了我們作為執行其技術路線圖的關鍵合作夥伴的地位。

This agreement greatly mitigates operational risk for each of us, enhances our revenue visibility, and consequently greatly supports our ability to finance the needed investment in capacity and capabilities.

該協議極大地降低了我們每個人的營運風險，提高了我們的收入可見性，從而極大地支持了我們為產能和能力所需的投資提供資金的能力。

It is a significant milestone for TSS and speaks volumes as to the status of our relationship with this important customer.

這是 TSS 的一個重要里程碑，充分說明了我們與這位重要客戶的關係狀況。

The base case scenario for volume stipulated in agreement is similar to or greater than the peak volume of AI-enabled rack integrations that we delivered earlier this summer.

協議中規定的基本案例場景數量類似於或大於我們今年夏天早些時候交付的人工智慧機架整合的峰值數量。

Volume expectations are dependent on sales execution by our OEM partner, but our partner has shown great confidence in TSS by committing to help to smooth what otherwise could be a feast or famine business.

銷售預期取決於我們的 OEM 合作夥伴的銷售執行情況，但我們的合作夥伴對 TSS 表現出了極大的信心，承諾幫助平穩開展原本可能是盛宴或飢荒的業務。

In the end, the negotiation of agreement was underpinned by our mutual recognition that we are in the very early stages of the development of AI infrastructure, which we both expect to be a massive multi-year market opportunity.

最終，協議談判的基礎是我們共同認識到我們正處於人工智慧基礎設施發展的早期階段，我們都預計這將是一個巨大的多年市場機會。

While the operational improvements we made in the second quarter in our facility were a great interim step, we recognized that given current market trends, the expected increasing power requirements of upcoming generations of AI rack technology, our customer's technology outlook and our goal to become the primary production partner for the AI-related technology roadmap, we need to deliver and further expand our capacity.

雖然我們在第二季度在我們的設施中所做的營運改進是一個偉大的臨時步驟，但我們認識到，鑑於當前的市場趨勢、下一代人工智慧機架技術​​的預期不斷增長的電力需求、我們客戶的技術前景以及我們成為作為人工智慧相關技術路線圖的主要生產合作夥伴，我們需要交付並進一步擴大我們的產能。

So in concert with this new customer service agreement, plans are underway for our relocation of our factory and headquarters to a new location just a few miles from where we stand today.

因此，為了配合這項新的客戶服務協議，我們正在計劃將工廠和總部搬遷到距離我們今天所在地僅幾英里的新地點。

This is a substantial next step in positioning our business for continued rapid growth.

這是我們的業務持續快速成長的重要一步。

Given our current trajectory and accelerating demand for AI-enabled technologies, we need more space to access and access to increase power.

鑑於我們目前的發展軌跡以及對人工智慧技術不斷增長的需求，我們需要更多的空間來獲取和增加電力。

We expect our volume of rack integrations to be at or above the volumes that we experienced since June 2024.

我們預計機架整合量將達到或高於 2024 年 6 月以來的水準。

But importantly, the next generation of racks will consume up to 6x more power than those being produced today.

但重要的是，下一代機架的能耗將是目前生產的機架的 6 倍。

At the new facility, we will expand our capacity by more than 60% from 105,000 square feet today to almost 170,000 square feet of operating space, and more importantly, we will gain access to significantly greater power to accommodate the foreseeable technology roadmap.

在新工廠，我們的產能將擴大 60% 以上，從目前的 105,000 平方英尺擴大到近 170,000 平方英尺的營運空間，更重要的是，我們將獲得更大的能力來適應可預見的技術路線圖。

In capacity planning, one key region we are favored by our partners is our ability to be agile and our ability to quickly modify production lines and process to meet custom and new requirements.

在產能規劃方面，我們受到合作夥伴青睞的一個關鍵領域是我們的敏捷能力以及快速修改生產線和流程以滿足客製化和新要求的能力。

That trade is manifested in our systems and physical layout of any building we move to.

這種貿易體現在我們的系統和我們搬到的任何建築物的物理佈局中。

Site plans call for investment of approximately $25 million to $30 million for improvements with a significant portion of that cost allocated to bring an additional power into the building.

場地規劃需要投資約 2500 萬至 3000 萬美元進行改進，其中很大一部分成本用於為大樓提供額外的電力。

The investment will provide greatly expanded cooling capacity for our rack testing and validation stations, tripling our capacity to test and validate direct liquid-cooled racks in addition to the more traditional air-cooled racks.

這項投資將為我們的機架測試和驗證站提供極大擴展的冷卻能力，除了更傳統的風冷機架之外，使我們測試和驗證直接液冷機架的能力增加兩倍。

As we have alluded to in recent announcements, cooling methodologies are in development for racks with dramatically increasing power consumption.

正如我們在最近的公告中提到的，正在開發針對功耗急劇增加的機架的冷卻方法。

The thermal dynamics of which will all but require direct liquid cooling to effectively dissipate the heat generated.

其熱動力學幾乎需要直接液體冷卻來有效消散產生的熱量。

Our flexibility to handle air cooling and or direct liquid cooling is a critical differentiator of our service.

我們處理空氣冷卻和/或直接液體冷卻的靈活性是我們服務的關鍵優勢。

We have explored several buildings and are in the process of finalizing a lease agreement for our preferred property and we are exploring bank debt financing alternatives for the leasehold improvements.

我們已經勘察了幾棟建築物，正在為我們的首選房產敲定租賃協議，並且我們正在探索用於改善租賃權的銀行債務融資替代方案。

Based on the structure of this multi-year agreement with our customer, we are comfortable that the revenues generated from that will be sufficient to cover the variable and fixed costs related to our rack integration activities.

根據與客戶簽訂的這份多年期協議的結構，我們確信由此產生的收入將足以支付與我們的機架整合活動相關的可變和固定成本。

Including the incremental lease obligation and debt service on any debt we incurred to finance the capital investment.

包括增量租賃義務和我們為資本投資融資而產生的任何債務的償債義務。

We expect to begin operations at this new facility after the first of the year, and to be fully operational and supporting our long-term customer agreement from this new location in early 2025.

我們預計該新工廠將於今年年初開始運營，並於 2025 年初在該新工廠全面投入營運並支援我們的長期客戶協議。

Turning to corporate governance for just a second.

暫時轉向公司治理。

We recently announced the appointment of Michael Fahy as an Independent Director to our Board and as a member of our audit and compensation committee.

我們最近宣布任命 Michael Fahy 為董事會獨立董事以及審計和薪酬委員會成員。

Michael has a proven track record leading digital transformation and advanced new technology solutions that deliver significant revenue growth.

Michael 擁有領先的數位轉型和先進的新技術解決方案的良好記錄，可帶來顯著的收入成長。

He has been involved with IT infrastructure and supply chain businesses with customers, including many of the largest technology companies in the world.

他一直與客戶一起參與 IT 基礎架構和供應鏈業務，其中包括許多全球最大的科技公司。

Mike will be an invaluable member of the team as we continue to execute our growth strategy and further scale our business.

隨著我們繼續執行我們的成長策略並進一步擴大我們的業務，麥克將成為團隊中的寶貴成員。

With Mike's appointment, our Board now is comprised of four Directors, three are whom are independent.

隨著麥克的任命，我們的董事會現在由四名董事組成，其中三名是獨立董事。

Concurrent with our earnings, we began trading today on the NASDAQ Capital Market.

在獲得收益的同時，我們今天開始在納斯達克資本市場進行交易。

This is a great milestone.

這是一個偉大的里程碑。

We pursued this uplisting to improve our investors trading liquidity and to widen the pool of potential investors, including institutional investors whose investment policies may prevent them from investing in companies trading over the counter.

我們進行此掛牌是為了提高投資者的交易流動性，並擴大潛在投資者的範圍，包括投資政策可能阻止他們投資場外交易公司的機構投資者。

We believe this is a huge accomplishment and a step forward, another sign of the maturing of our company.

我們相信這是一項巨大的成就，向前邁出了一步，是我們公司成熟的另一個標誌。

Our ticker symbol has not changed and there should be no disruption to clearing of trades already executed.

我們的股票代碼沒有改變，已經執行的交易的清算不會受到干擾。

Serving our customers with the highest levels of quality and integrity is the bedrock of our company.

以最高水準的品質和誠信服務客戶是我們公司的基石。

It is the basis by which we operate and is critical to our success.

它是我們運作的基礎，對我們的成功至關重要。

We were thrilled to be awarded the Professional Services Best Deployment Partner Award for 2024 by our largest customer.

我們很高興被我們最大的客戶授予 2024 年專業服務最佳部署合作夥伴獎。

The award highlights our rapid adaptability and unwavering commitment to our customer service.

該獎項凸顯了我們的快速適應能力和對客戶服務堅定不移的承諾。

Our dedicated service and collaborative spirit have enabled us to execute, meet, and often exceed our customer's expectations.

我們的專注服務和協作精神使我們能夠執行、滿足並經常超越客戶的期望。

The award is an incredible honor as is the opportunity to serve this customer each and every day.

該獎項是一項令人難以置信的榮譽，也是每天為該客戶提供服務的機會。

We value this relationship.

我們重視這種關係。

We are pushing the boundaries of what's possible in AI and high-performance computing infrastructure.

我們正在突破人工智慧和高效能運算基礎設施的極限。

The market for AI infrastructure continues to advance.

人工智慧基礎設施市場持續發展。

Customers are raising significant capital to deploy AI infrastructure.

客戶正在籌集大量資金來部署人工智慧基礎設施。

Many of the initial adopters are data center and cloud technology companies building specifically for AI.

許多最初的採用者是專門為人工智慧建構的資料中心和雲端技術公司。

The vast majority of the market likely will be medium and larger enterprises that will build high-performance compute environments, not just for large language models and other training, but for AI application deployment.

絕大多數市場可能是中型和大型企業，它們將建立高效能運算環境，不僅用於大型語言模型和其他培訓，還用於人工智慧應用程式部署。

We are working with our key customer and partners and directly with end user customers begin to understand how hyperdense compute required for AI will be implemented in the vast majority of data center sites.

我們正在與我們的主要客戶和合作夥伴合作，並直接與最終用戶客戶合作，開始了解如何在絕大多數資料中心站點中實施人工智慧所需的超密集運算。

We will have more on this and report more on this in the quarters to come.

我們將在未來幾季提供更多相關資訊並報告更多相關內容。

So, allow me now to turn the call back to Danny to discuss our numbers in a little bit more detail.

因此，現在請允許我將電話轉回丹尼，更詳細地討論我們的數字。

Danny?

丹尼？

Thanks, Darryll.

謝謝，達裡爾。

By all accounts, it was a great quarter for TSS.

從各方面來看，對於 TSS 來說，這是一個很棒的季度。

Let's jump into it.

讓我們開始吧。

Consolidated revenues for the third quarter of this year was $70.1 million, almost 8 times to $8.9 million total revenues reported this quarter of last year.

今年第三季的綜合收入為 7,010 萬美元，幾乎是去年本季報告的總收入 890 萬美元的 8 倍。

This is also a substantial increase in sequential results up from $12.2 million in the second quarter of 2024.

這也比 2024 年第二季的 1,220 萬美元大幅成長。

The increase was driven in large part by growth in our lower margin procurement services business, as well as growth in our higher margin systems integration business.

這一成長在很大程度上是由於我們利潤率較低的採購服務業務的成長以及利潤率較高的系統整合業務的成長所推動的。

Revenue this period grew in all major product lines compared to this quarter last year.

與去年本季相比，本季所有主要產品線的營收均有所成長。

Our segment reporting looks a little different this quarter than it did last quarter.

本季我們的分部報告看起來與上季略有不同。

Beginning in the third quarter, we are breaking out our systems integration and facilities management revenues in a bit more detail to increase the transparency and give investors a clearer picture of the drivers of our business.

從第三季開始，我們將更詳細地公佈我們的系統整合和設施管理收入，以提高透明度，讓投資者更清楚地了解我們業務的驅動因素。

Particularly within the Systems Integration segment, we are providing a bit more detail to understand the portion of growth driven by the procurement activities versus systems integration activities.

特別是在系統整合領域，我們提供了更多詳細信息，以了解採購活動與系統整合活動驅動的成長部分。

And in the MD&A section of the 10-Q filed earlier this afternoon, you'll find a tabular presentation of the procurement activities in particular in a bit more detail.

在今天下午早些時候提交的 10-Q 的 MD&A 部分中，您會發現採購活動的表格演示，特別更詳細。

Not only the revenues, but cost of goods, gross profits, and gross margins for each of those components of the Systems Integration segment.

不僅是收入，還包括系統整合部門每個組成部分的商品成本、毛利和毛利率。

Total revenue from the Systems Integration segment increased from $7.1 million in the prior year quarter to $68.1 million in the current quarter.

系統整合部門的總收入從去年同期的 710 萬美元增至本季的 6,810 萬美元。

Current quarter segment revenues are comprised of $7.6 million from integration services and $60.5 million from procurement services.

本季的部門收入包括來自整合服務的 760 萬美元和來自採購服務的 6,050 萬美元。

The integration services revenues of $7.6 million represents growth of 361% compared to $1.7 million in the year-ago quarter.

整合服務收入為 760 萬美元，與去年同期的 170 萬美元相比成長了 361%。

The growth was driven by an increase in the AI-enabled rack integrations, which began late in the second quarter.

這一增長是由第二季末開始的人工智慧機架整合的增加所推動的。

Demand for this business is robust and the recently signed multi-year agreement mentioned by Darryll to provide these services greatly reduces the effect of fluctuating demand or supply chain issues that are inherent in this business, allowing us to maintain the facility and staffing levels to quickly serve our customer's needs, enhancing our flexibility and ability to delight our customer.

該業務的需求強勁，Darryll 提到的最近簽署的提供這些服務的多年協議大大減少了該業務固有的需求波動或供應鏈問題的影響，使我們能夠快速維持設施和人員配備水平滿足客戶的需求，增強我們的靈活性和取悅客戶的能力。

Revenue from facility management totaled $2 million compared to $1.8 million in the same quarter last year, up 8% year-over-year.

設施管理收入總計 200 萬美元，而去年同期為 180 萬美元，年增 8%。

As Darryll mentioned, this is generally a fairly predictable revenue stream with gross profit margins, generally above 50%, though that was down slightly this quarter.

正如 Darryll 所提到的，這通常是一個相當可預測的收入來源，毛利率通常高於 50%，儘管本季略有下降。

We see the potential for more robust growth in this segment in 12 to 18 months as more medium and large enterprise clients consider using modular data centers as a cost efficient means to harness the power of AI technology without the need to build out full data centers with all the requisite cooling capacity.

我們認為，隨著越來越多的中型和大型企業客戶考慮使用模組化資料中心作為一種經濟高效的手段來利用人工智慧技術的力量，而無需建立完整的資料中心，我們認為該領域在12至18 個月內有更強勁成長的潛力。

Revenue from procurement services totaled $60.5 million up more than 1000% compared to $5.4 million in a year-ago quarter.

採購服務收入總計 6,050 萬美元，較去年同期的 540 萬美元成長 1,000% 以上。

Recognized procurement revenues and related costs as well as the resulting gross margin percentage based on recorded values can be heavily influenced by whether we transform the product.

已確認的採購收入和相關成本以及基於記錄值得出的毛利率百分比可能會受到我們是否改造產品的嚴重影響。

If we do something to transform the product, we report the gross value of the transaction along with the gross costs of those goods called gross deals, often resulting in recognized gross margins as low as 3% to 4%.

如果我們對產品進行改造，我們會報告交易的總價值以及這些商品的總成本（稱為總交易），通常會導致公認的毛利率低至 3% 到 4%。

If we merely act as an agent in buying and selling the product, we record our revenue as an agency fee called net deals resulting in a 100% margin.

如果我們只充當買賣產品的代理，我們會將我們的收入記錄為稱為淨交易的代理費，從而產生 100% 的利潤。

In periods where we have an increase in the proportion of procurement activities that are gross deals versus net deals, it tends to inflate our gross revenues and costs and decrease the recognized gross margin percentage and vice versa without much impact, if any on the gross profit dollars recorded.

在我們採購活動的總交易比例與淨交易比例增加的時期，往往會誇大我們的總收入和成本，並降低已確認的毛利率百分比，反之亦然，但對毛利潤沒有太大影響（如果有的話）美元記錄。

This in turn can also have an impact on the company's blended gross margin percentages based on recorded values as the procurement business has much lower margins than the remainder of our business.

這反過來也會對公司基於記錄值的混合毛利率百分比產生影響，因為採購業務的利潤率比我們其他業務的利潤率低得多。

Increases in the recorded amount of gross procurement activities will have a downward effect on the company's overall margin percentages reported.

採購活動總額的增加將對公司報告的整體利潤率產生下降影響。

In the third quarter of 2024, the majority of procurement activities were gross deals, and in the comparable prior year quarter, the majority were net deals.

2024 年第三季度，大部分採購活動為總交易，而去年同期的大部分採購活動為淨交​​易。

As a result, the procurement gross margin percentage based on recorded U.S. GAAP values was 6.1% in the current quarter versus 30.4% in the prior year quarter, while the gross profit dollars increased to 125% from $1.7 million to $3.7 million.

因此，根據記錄的美國 GAAP 值，本季的採購毛利率為 6.1%，去年同期為 30.4%，而毛利從 170 萬美元增至 370 萬美元，增至 125%。

In analyzing what I consider the true economics of our procurement activities, while it's non-GAAP, I find it most useful for me to look at the gross revenues and gross costs of procurement activities regardless of whether they were recorded as gross or net deals.

在分析我所認為的採購活動的真實經濟學時，雖然它不是非公認會計準則，但我發現對我來說最有用的是查看採購活動的總收入和總成本，無論它們是記錄為總交易還是淨交易。

On that basis, our gross revenues were up 94% from $41 million in the prior year quarter to $79.6 million in the quarter ended September 30, 2024.

在此基礎上，截至 2024 年 9 月 30 日的季度，我們的總營收從去年同期的 4,100 萬美元成長了 94%，達到 7,960 萬美元。

Gross profits increased from $1.7 million to $3.7 million, just like the GAAP figures.

毛利從 170 萬美元增加到 370 萬美元，與 GAAP 數據一樣。

And the resulting gross margin percentages based on these gross values improved from 4% in the prior year quarter to 4.7% in the current quarter.

基於這些總價值的最終毛利率百分比從去年同期的 4% 提高到本季的 4.7%。

On this same basis, year-to-date gross procurement revenues increased 33% from $90.5 million in the prior year-to-date period to $120.6 million in the current year-to-date period with gross margins on that basis improving from 3.9% to 4.4%.

在此基礎上，年初至今的總採購收入從去年同期的 9,050 萬美元增加到本年迄今的 1.206 億美元，成長了 33%，毛利率從 3.9% 提高至 4.4%。

As we continue to scale and grow, the mix of our revenues will likely drive quarter-to-quarter fluctuations in our gross margins.

隨著我們不斷擴大規模和成長，我們的收入組合可能會推動毛利率的季度波動。

The overall gross margin for the entire company was 11.3% this quarter compared to 31.9% in the Q3 of 2023.

本季整個公司的整體毛利率為 11.3%，而 2023 年第三季為 31.9%。

This decrease is primarily due to the dramatic increase in revenues from our lower margin procurement services business combined with a greater portion of those sales being recorded as gross deals.

這一下降主要是由於我們利潤率較低的採購服務業務的收入大幅增加，而且其中大部分銷售額被記錄為總交易。

This business line while lower in margin, serves as a conduit to providing some higher value add higher margin integration services.

該業務線雖然利潤率較低，但可以作為提供一些更高附加價值、更高利潤的整合服務的管道。

And it contributes nicely to the bottom line all by itself.

它本身就對利潤做出了很好的貢獻。

Individual customer engagements in this business may be much larger than our typical integration or facilities management engagements.

個人客戶在此業務中的參與可能比我們典型的整合或設施管理參與要大得多。

While procurement revenues remain, it may remain at elevated levels for the next three to six months in comparison to historical trend, we don't currently expect them to be at quite the same level that we saw this quarter.

雖然採購收入仍然存在，但與歷史趨勢相比，在未來三到六個月內可能會保持在較高水平，但我們目前預計它們不會達到本季度的水平。

As much of our procurement activity is ultimately related to Federal Government buying, we believe this can contribute to some seasonality in these revenues.

由於我們大部分的採購活動最終與聯邦政府的採購有關，我們相信這可能會導致這些收入出現一定的季節性。

As the Federal Government budget ends on September 30 each year, we believe this may generally lead to an increase in procurement revenues in the quarter ending September 30, and again in the quarter ending December 31 each year as Federal Agencies receive their budgets for the new fiscal year.

由於聯邦政府預算於每年9 月30 日結束，我們認為這通常可能會導致截至9 月30 日的季度採購收入增加，並且隨著聯邦機構收到新預算，每年12 月31 日結束的季度採購收入也會增加。

Because revenues can be heavily impacted by gross versus net procurement deals, even without any difference in economic reality, I prefer to view our consolidated costs as a percentage of gross profit rather than percentage of revenues, which is generally the same regardless of the gross profits are generally the same regardless of how procurement activity is recorded and therefore more comparable between periods.

由於收入可能會受到總採購交易與淨採購交易的嚴重影響，即使經濟現實沒有任何差異，我更願意將我們的綜合成本視為毛利潤的百分比，而不是收入的百分比，無論毛利潤如何，收入的百分比通常是相同的無論採購活動如何記錄，通常都是相同的，因此不同時期之間更具可比性。

SG&A expenses improved as a percentage of gross profit to 49% in the third quarter of 2024, down from 72% in the year-ago quarter.

2024 年第三季度，SG&A 費用佔毛利的百分比從去年同期的 72% 下降至 49%。

On a dollar basis, SG&A expenses increased to $3.9 million in the third quarter of 2024 up from $2 million in the year-ago quarter.

以美元計算，2024 年第三季的 SG&A 費用從去年同期的 200 萬美元增加到 390 萬美元。

Our SG&A costs have increased as we've invested in people, capacity and processes.

隨著我們對人員、產能和流程的投資，我們的銷售、管理和管理成本增加。

The current quarter SG&A expenses also include some larger than normal accruals for commissions and other incentive compensation driven by the outsized operating results.

本季的銷售、管理及行政費用還包括一些高於正常應計費用的佣金及其他由超額經營業績驅動的激勵性薪酬。

Through the use of well-designed incentive compensation plans, we believe we can reward and encourage outstanding performance by our staff like we saw this quarter while automatically scaling back costs in periods with results that may not be as robust.

透過使用精心設計的激勵薪酬計劃，我們相信我們可以獎勵和鼓勵員工的出色表現，就像我們在本季度看到的那樣，同時在業績可能不那麼強勁的時期自動削減成本。

Operating profit margin in the third quarter of 2024 was $3.8 million and 48% of gross profit respectively compared to $0.7 million and 25% in Q3 of 2023.

2024 年第三季的營業利潤率分別為 380 萬美元和毛利的 48%，而 2023 年第三季的營業利潤率為 70 萬美元和 25%。

Calculated as a percentage of recorded total revenue rather than gross profits, our operating income margin was 5.4% in the current quarter compared to 8.1% in the prior year quarter.

以記錄總收入而非毛利的百分比計算，本季我們的營業利潤率為 5.4%，而去年同期為 8.1%。

This was largely driven by the large increase in gross procurement deals discussed earlier.

這主要是由前面討論的總採購交易大幅增加所推動的。

During the quarter, we had net interest expense of $1.1 million.

本季度，我們的淨利息支出為 110 萬美元。

This was comprised of $1.3 million of interest expense tied to factoring the receivables from our largest customer, mostly related to procurement activity, partially offset by $0.2 million of interest income earned from cash on hand.

其中包括與我們最大客戶的應收帳款保理相關的 130 萬美元利息支出，主要與採購活動相關，部分被手頭現金賺取的 20 萬美元利息收入所抵銷。

This compares to net interest expense of $0.5 million in Q3 2023 comprised of $661,000 of interest expense partially offset by $179,000 of interest income on bank deposits.

相比之下，2023 年第三季的淨利息支出為 50 萬美元，其中 661,000 美元的利息支出被銀行存款利息收入 179,000 美元部分抵銷。

Combining the impact of all these items, net income for the third quarter of 2024 was $2.6 million more than 11 times to $209,000 net income in Q3 of 2023.

綜合所有這些項目的影響，2024 年第三季的淨利潤為 260 萬美元，是 2023 年第三季淨利潤 209,000 美元的 11 倍多。

Earnings per diluted share was $0.10 for the third quarter of 2024 up from just a $0.01 in the third quarter of last year.

2024 年第三季攤薄後每股收益為 0.10 美元，去年第三季僅為 0.01 美元。

Adjusted EBITDA, which excludes interest, taxes, depreciation, amortization, and stock-based compensation, was $4.3 million up from $0.9 million in the year-ago quarter.

調整後 EBITDA（不含利息、稅金、折舊、攤提和股票薪酬）為 430 萬美元，高於去年同期的 90 萬美元。

Turning to the year-to-date results for a second.

我們再來看看今年迄今為止的業績。

For the nine months ended September 30, 2024, total revenues were up 227% to $98.1 million compared to $30 million in the year-ago period.

截至 2024 年 9 月 30 日的 9 個月，總營收成長 227%，達到 9,810 萬美元，而去年同期為 3,000 萬美元。

Gross profit for the first nine months of 2024 increased 96% to $15.1 million, and our SG&A costs improved to 59% of gross profit down from 84% year-to-date 2023.

2024 年前 9 個月的毛利成長了 96%，達到 1,510 萬美元，SG&A 成本佔毛利的比例從 2023 年迄今的 84% 下降到了 59%。

Year-to-date our net income was $4.1 million compared to a net loss of $262,000 in the 2023 year-to-date period and diluted EPS improved from a $0.01 loss to $0.16 in the current period.

年初至今，我們的淨利潤為 410 萬美元，而 2023 年年初至今的淨虧損為 262,000 美元，稀釋後每股收益從本期虧損 0.01 美元改善至 0.16 美元。

Turning to our balance sheet.

轉向我們的資產負債表。

As of September 30, 2024, we had cash and cash equivalents and short-term deposits totaling $46.4 million.

截至 2024 年 9 月 30 日，我們的現金和現金等價物以及短期存款總計 4,640 萬美元。

And again, the end of the period debt free.

再次，期末無債務。

The cash balance is somewhat inflated as we get paid almost immediately for billings to our largest customer through a financing program they have in place whereas we typically get 30 to 45-day terms to pay our vendors.

現金餘額有些誇大，因為我們幾乎立即透過最大客戶制定的融資計劃收到帳單，而我們通常需要 30 至 45 天的期限來向供應商付款。

In periods such as the current quarter, when procurement activities are unusually large, we carry a larger than normal cash balance.

在本季等採購活動異常龐大的時期，我們的現金餘額高於正常水準。

We estimate that after removing the float we enjoy by receiving payments on factored receivables prior to needing to pay our vendors, the remaining unrestricted cash balance available to fund daily operations or invest for growth is currently about $10.6 million.

我們估計，在消除我們在需要向供應商付款之前接收保理應收帳款所享有的浮動資金後，可用於資助日常運營或投資增長的剩餘不受限制的現金餘額目前約為 1060 萬美元。

For the first nine months of 2024, we generated cash flow from operations of $36.9 million, including the timing benefit from procurement activities compared to $8.6 million in the first nine months of 2023.

2024 年前 9 個月，我們的營運現金流為 3,690 萬美元，其中包括採購活動的時間效益，而 2023 年前 9 個月為 860 萬美元。

Net working capital, which nets out temporary fluctuations due to timing of payments to vendors and receipts from customers increased from $893,000 at the beginning of this year to $4.3 million at the end of September 2024.

淨營運資本（扣除因向供應商付款的時間和從客戶處收貨的時間而產生的臨時波動）從今年年初的 893,000 美元增加到 2024 年 9 月底的 430 萬美元。

As Darryll mentioned, while we have not yet finalized the lease agreement and there's always risk until it's completed, we've had very productive discussions with our bank to finance the majority of the $25 million to $30 million we plan to invest in our new facility with an eye to aligning debt service payments with revenues from our AI rack building activities.

正如達裡爾所提到的，雖然我們尚未敲定租賃協議，並且在完成之前始終存在風險，但我們與銀行進行了非常富有成效的討論，為我們計劃投資新設施的2500 萬至3000 萬美元中的大部分提供了資金著眼於使償債付款與我們的人工智慧機架建設活動的收入保持一致。

Although other banks have expressed strong interest in financing this need, we believe we'll be successful in putting in place a facility with our existing bank with repayment terms that include a fully amortizing term loan.

儘管其他銀行對融資這一需求表示了濃厚的興趣，但我們相信，我們將成功地與現有銀行建立一項貸款，其還款條件包括完全攤銷定期貸款。

All-in-all, it was another great quarter financially.

總而言之，這又是一個財務狀況良好的季度。

While we are not providing specific financial guidance at this time, based on our current visibility, we expect profitability in the fourth quarter to be slightly below the third quarter level due to the timing of incoming projects and a smaller pipeline of procurement deals in Q4 compared to Q3.

雖然我們目前沒有提供具體的財務指導，但根據我們目前的可見性，我們預計第四季度的盈利能力將略低於第三季度的水平，因為與第四季度相比，傳入項目的時間安排和採購交易管道較小。

The additional contribution from procurement deals is nice when they spike, but with limited overhead, direct labor or square footage dedicated to these activities, we don't need to cover significant costs in periods with lighter procurement activities.

當採購交易激增時，額外貢獻是不錯的，但由於專門用於這些活動的管理費用、直接勞動力或面積有限，我們不需要在採購活動較少的時期支付大量成本。

We expect the first half of 2025 to be in line with our second and third quarters of 2024 in aggregate.

我們預計 2025 年上半年的整體情況將與 2024 年第二季和第三季的情況一致。

With that, I'll turn the call back over to Darryll to share some insights into our expectations for the future and provide some closing remarks and Q&A.

接下來，我會將電話轉回達裡爾，分享我們對未來期望的一些見解，並提供一些結束語和問答。

Darryll?

達裡爾？

Thanks, Danny.

謝謝，丹尼。

Folks, to recap, I'm very proud of our TSS team's ability to execute our operational commitments and our vision and the high level of collaboration, planning, and teamwork that we have with our key customer.

各位，回顧一下，我對我們的 TSS 團隊執行我們的營運承諾和願景的能力以及我們與主要客戶的高水準協作、規劃和團隊合作感到非常自豪。

Our detailed focus on the customer and those relationships is critical to our continued success.

我們對客戶和這些關係的細緻關注對於我們持續成功至關重要。

This allows us to continue to innovate and execute in ways that have laid the foundation for long-term success for TSS, our customers and our investors.

這使我們能夠繼續創新和執行，為 TSS、我們的客戶和投資者的長期成功奠定基礎。

So Tom, if it's okay with you, I'll turn it back and we can handle the Q&A.

湯姆，如果你同意的話，我會把它轉回去，我們可以處理問答。

(Operator Instructions)

（操作員說明）

Thank you.

謝謝。

And your first question today is coming from Gurdeep Janjua from Murchinson.

今天你們的第一個問題是來自默欽森 (Murchinson) 的 Gurdeep Janjua。

Your line is live.

您的線路已上線。

Please go ahead.

請繼續。

Hey, guys.

嘿，夥計們。

Thanks for taking the question and congratulations on the uplist to NASDAQ.

感謝您提出問題並祝賀您登上納斯達克。

That's huge.

那是巨大的。

Certainly opens you up to several near-term catalysts as well.

當然也會讓你接觸到一些近期的催化劑。

So your business has obviously seen tremendous growth in the last little bit here.

因此，您的業務顯然在最後一段時間內取得了巨大的成長。

And it looks like this growth is expected to continue for the foreseeable future with this multi-year agreement.

透過這份多年期協議，這種成長預計將在可預見的未來持續下去。

I think there's been some talk on Twitter about you guys actually building the xAI supercomputer for Elon Musk.

我認為 Twitter 上有一些關於你們實際上正在為 Elon Musk 建立 xAI 超級電腦的討論。

So when I look at the financial position of the company today and the very strong stance that the company has taken against any dilutive equity financing, it really increases my confidence in management's ability to drive home that long-term shareholder value.

因此，當我看到公司今天的財務狀況以及公司對任何稀釋性股權融資採取的非常強硬的立場時，這確實增強了我對管理層實現長期股東價值的能力的信心。

Now, my question is around future growth.

現在，我的問題是關於未來的成長。

So you seem like you're the hottest play in AI right now.

所以你看起來是目前人工智慧領域最熱門的人物。

And on top of that, we saw today that SMCI, your biggest competitor is facing serious concerns about around a potential delisting risk.

最重要的是，我們今天看到你們最大的競爭對手 SMCI 面臨潛在退市風險的嚴重擔憂。

So there's a very high probability that you'll be taking on a majority of their customers.

因此，您很有可能會吸引他們的大多數客戶。

So that's a company that was trading out 30 times EBITDA back in June before all their internal control issues were brought to light.

因此，在所有內部控制問題曝光之前，這家公司在 6 月的 EBITDA 交易金額就達到了 30 倍。

So how do you plan to execute on the potential upside scenario here and maybe mirror that valuation multiple?

那麼，您計劃如何執行這裡潛在的上行情景，並可能反映該估值倍數？

Gurdeep a lot of questions baked in there and some assumptions.

古迪普提出了很多問題和一些假設。

So let me see if I can answer overall.

那麼讓我看看我是否可以整體回答。

Thank you for your question and appreciate your comments.

感謝您的提問並感謝您的評論。

As you know, we can't comment on the customers and some things that you brought up.

如您所知，我們無法對客戶和您提出的一些事情發表評論。

But we're very proud of what we're doing.

但我們對我們正在做的事情感到非常自豪。

On the growth trajectory, one of the reasons why we're moving is to accommodate growth.

在成長軌跡上，我們採取行動的原因之一是適應成長。

And we expect that there's going to be some spikes.

我們預計將會出現一些峰值。

We anticipate the spikes.

我們預計會出現峰值。

We're prepared for those spikes.

我們已經為這些峰值做好了準備。

And we're also prepared for what we think is a more robust line of business, like we say, just a few minutes ago that we started to see in the middle of the year with a large project.

我們也為我們認為更強大的業務線做好了準備，就像我們幾分鐘前所說的那樣，我們在年中開始看到一個大型專案。

We're excited about that.

我們對此感到興奮。

We think it's going to continue.

我們認為這種情況將會持續下去。

We're prepared for that.

我們已為此做好準備。

And all I'm saying is bring it on, we'll take it, we'll take as much as you can give us and we'll go from there

我想說的是，帶上它，我們會接受它，我們會盡可能地接受你能給我們的，我們將從那裡開始

The other I would share on that Gurdeep is, as we move to our new facility, part of what we're looking at is not only what the current needs of our customer are.

關於 Gurdeep，我要分享的另一個內容是，當我們搬到新工廠時，我們所關注的部分不僅僅是客戶當前的需求。

But really can we build out to take 1 times, 2 times or 3 times that kind of volume if that exists.

但如果存在的話，我們確實可以建造 1 倍、2 倍或 3 倍的體積。

At least when we do our channel checks, it looks like there's a pretty significant amount of volume of the AI rack building coming.

至少當我們進行渠道檢查時，看起來會有相當大量的人工智慧機架建設即將到來。

And so we're preparing ourselves to be ready to take one not just the same kind of volume that we've done in the last four months, but really up to 2 times, 3 times, 4 times that amount.

因此，我們正在做好準備，不僅要準備好與過去四個月相同的數量，而且要達到這個數量的 2 倍、3 倍、4 倍。

Hey, Gurdeep to answer your question.

嘿，古迪普來回答你的問題。

Yeah, it did.

是的，確實如此。

I do have a follow up here if you feel you entertain it.

如果你覺得你喜歡的話，我確實會在這裡跟進。

Please.

請。

Sorry, I know that I know Dell prefers to outsource a lot of this work to you guys.

抱歉，我知道戴爾更喜歡將大部分工作外包給你們。

But it seems like you'd be a great sort of in-house or buyout target for them at a price that is at least, I would say, anywhere, 2 times to 3 times more than where you're currently trading at.

但對他們來說，你似乎是一個很好的內部或收購目標，我想說，在任何地方，你的價格至少是你目前交易價格的 2 倍到 3 倍。

So the question is, is that something that you would entertain?

所以問題是，這是你願意接受的事情嗎？

I'm just curious to hear your thoughts around that.

我只是想聽聽你對此的想法。

Gurdeep, look, I mean, we have an obligation to a lot of constituents and many, many on this call today.

古迪普，聽著，我的意思是，我們對今天的電話會議上的許多選民和許多很多人負有義務。

And we will entertain anything that's good for the business, the future growth, our shareholders, our investors, our employees.

我們將接受任何對業務、未來成長、我們的股東、我們的投資者、我們的員工有利的事情。

So really nothing's off the table.

所以真的沒有什麼是不可能的。

But I can promise you that we are singularly focused on just execution and let everything else happen as it may.

但我可以向你保證，我們只專注於執行，其他一切就順其自然吧。

Awesome.

驚人的。

Thank you very much.

非常感謝。

All right.

好的。

Thank you.

謝謝。

All right.

好的。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Kris Tuttle from Blue Caterpillar.

《藍毛毛蟲》的克里斯‧塔特爾。

Hi.

你好。

Thank you.

謝謝。

Nice to see you guys are keeping busy.

很高興看到你們一直很忙。

My question is, and I think, it'd be generally interesting to people, the facilities management business, right, like how attractive do you think that is qualitatively long-term?

我的問題是，我認為，人們普遍對設施管理業務感興趣，對吧，就像您認為從長遠來看，它的吸引力有多大？

Like, is this a business that could look could be as good as the integration business in a few years?

例如，幾年後這個業務看起來會像整合業務一樣好嗎？

I would just love to get your perspective on how we should be thinking about that business over the longer term.

我很想聽聽您對我們應該如何長期考慮該業務的看法。

Hey, Kris, thanks for the question.

嘿，克里斯，謝謝你的提問。

If you research the market and the growth trajectory in a compounded average growth rates, IDC has some interesting stats in that space of around 12% to 13% CAGR growth.

如果您研究市場和複合平均成長率的成長軌跡，IDC 在該領域有一些有趣的統計數據，複合年增長率約為 12% 至 13%。

That's exciting because there's a lot of money involved.

這很令人興奮，因為涉及很多錢。

I can tell you that we think there is an opportunity for MDC growth around AI.

我可以告訴你，我們認為 MDC 圍繞人工智慧有成長的機會。

One of the long pole in the tents is getting the container, the lead time in a container.

帳篷裡的一根長桿是取得貨櫃，也就是貨櫃內的交貨時間。

Especially now as you think about what the design point needs to be for the container to accommodate direct liquid is little longer than we want and I think that the market wants, so it's going to come down, it's going to shrink.

特別是現在，當你考慮容納直接液體的容器需要什麼設計點時，它比我們想要的要長一點，我認為市場需要，所以它會下降，它會縮小。

And the players in that space know that.

該領域的參與者都知道這一點。

I think we're going to see some activity.

我想我們會看到一些活動。

I don't know if it could reach the volumes of what we're talking about on rack integration because those volumes are significantly expanding.

我不知道它是否能夠達到我們所討論的機架整合的容量，因為這些容量正在顯著擴大。

But I do think in the near-term, I'm optimistic that we should be able to talk more about what we see happening that is around the bookings level by the end of the year that will produce revenue in 2025 and 2026.

但我確實認為，在短期內，我樂觀地認為，我們應該能夠更多地討論我們所看到的圍繞今年年底預訂水平發生的情況，這將在 2025 年和 2026 年產生收入。

So I would say just let's see how this plays out.

所以我想說，讓我們看看結果如何。

And I'm optimistic that we'll see something positive.

我樂觀地認為我們會看到一些正面的事情。

Okay.

好的。

Great.

偉大的。

Thanks.

謝謝。

A lot guys.

很多傢伙。

Thanks Chris.

謝謝克里斯。

Thank you.

謝謝。

Your next question is coming from [Ian Carr] Ian, your line is live.

您的下一個問題來自 [Ian Carr] Ian，您的線路已上線。

Please go ahead.

請繼續。

Hey, guys.

嘿，夥計們。

Thanks for taking a chance to answer the question and congrats again on the great quarter.

感謝您有機會回答這個問題，並再次祝賀這個偉大的季度。

So I just have a question about your new facility.

我只是對你們的新設施有一個疑問。

I know you mentioned it's able to handle a lot more volume.

我知道你提到它能夠處理更多的音量。

But do you think you guys chose a facility that is large enough and if you do keep growing at the rate you are growing and hope to grow at, is this facility going to be able to handle that?

但你們認為你們選擇了一個足夠大的設施，如果你們確實以現在和希望的速度繼續增長，這個設施能夠處理這個問題嗎？

And in the current I know industrial park of where this facility is, are you going to be able to get a bigger facility if needed?

目前我知道該設施所在的工業園區，如果需要的話，您是否能夠獲得更大的設施？

And what does that timeline look like?

這個時間線是什麼樣的？

Ian, you sound like you've got some inside information here.

伊恩，聽起來你已經掌握了一些內幕。

No, just a follower of the company.

不，只是公司的追隨者。

That's all.

就這樣。

All right.

好的。

Yes, for the time being, we think it's sufficient.

是的，目前我們認為這已經足夠了。

Todd Marrott, runs our operations and Todd's got a variety of scenarios that allow us to plan out the growth.

托德·馬洛特 (Todd Marrott) 負責經營我們的業務，而托德提供了多種方案，使我們能夠規劃成長。

A lot of it on the rack integration side, primarily based on test times, the percentage of direct liquid versus air, the power needed, et cetera.

其中許多都在機架整合方面，主要基於測試時間、直接液體與空氣的百分比、所需的功率等等。

I think we've got a variety of different options in front of us that this facility will handle for a while.

我認為我們面前有多種不同的選擇，這個設施將在一段時間內處理這些選擇。

Incidentally where the facility is, there's additional space, stone throw away that is available should we need it.

順便說一下，在設施所在的地方，如果我們需要的話，還有額外的空間可以使用。

And we also have a facility we're in, which is another 100,000 square feet that we have the option to sublet or to utilize as a buffer.

我們還有一個 100,000 平方英尺的設施，我們可以選擇轉租或用作緩衝區。

So I think we're good.

所以我認為我們很好。

And by the way, what we spend time working on is, moving inventory to get more production capacity space in our existing facility, working with our customer on that.

順便說一句，我們花時間做的是轉移庫存，以便在我們現有的設施中獲得更多的生產能力空間，並與我們的客戶合作。

And that's actually been a pretty good move.

這其實是一個非常好的舉措。

So we're not wasting space, storing stuff.

所以我們不會浪費空間來存放東西。

So I'm optimistic.

所以我很樂觀。

I think Danny is, and I know Todd is that we've got a plan.

我認為丹尼是，我知道托德是，我們有一個計劃。

And if we're in a fortunate position where we blow through this plan, we know the market, we spent a lot of time surveying the market, we know where the players are for additional space.

如果我們幸運地完成了這個計劃，我們就了解市場，我們花了很多時間調查市場，我們知道玩家在哪裡可以獲得額外的空間。

So I think we're good.

所以我認為我們很好。

The other one I want to add on to that is really the primary driver of the move wasn't even square footage.

我想補充的另一個問題是，此舉的主要驅動力實際上甚至不是平方英尺。

We could have handled a good bit more volume where we are based on square footage.

如果我們以平方英尺為基礎，我們本可以處理更多的體積。

It was really power requirements.

這確實是電力需求。

So it is going to take us probably 18 to 24 months to get the power that we would need in the existing facility to do the kind of volume and the higher-powered racks that we see coming.

因此，我們可能需要 18 到 24 個月的時間才能在現有設施中獲得所需的電力，以實現我們預計即將推出的容量和更高功率的機架。

We've got roughly 2.5 megawatts coming into this building, a little bit more than that.

我們有大約 2.5 兆瓦的電力進入這棟大樓，比這個多一點。

And we will have upwards of 12 megawatts pretty quickly in 2025 and looking out at 20 or more megawatts within a year after that.

到 2025 年，我們的發電量很快就會達到 12 兆瓦，並預計在一年內達到 20 兆瓦或更多。

So really that was more the gating item than the square footage.

所以實際上這更多的是門控項目而不是平方英尺。

So that opens up a tremendous amount of opportunity with getting that.

因此，獲得這一點會帶來巨大的機會。

Awesome.

驚人的。

Thank you, guys.

謝謝你們，夥計們。

Appreciate it.

欣賞它。

Good luck for the rest of the year.

祝今年剩下的時間一切順利。

Ian, thanks buddy.

伊恩，謝謝朋友。

Appreciate your question.

感謝你的問題。

(Operator Instructions) Max Borges.

（操作員指示）馬克斯·博爾赫斯。

Hey, Max Borges, your line is live.

嘿，馬克斯·博爾赫斯，你的線路已上線。

You may proceed with your question.

你可以繼續你的問題。

Sorry, I had it on mute.

抱歉，我把它靜音了。

How you doing guys?

你們怎麼樣？

Thanks for letting me ask a question.

謝謝你讓我問一個問題。

When you guys look at your future growth potential over these next few years, what do you think is the biggest potential bottleneck to that growth?

當你們審視未來幾年的未來成長潛力時，你們認為成長的最大潛在瓶頸是什麼？

Is it facilities?

是設施嗎？

Is it people?

是人嗎？

Is it power?

是權力嗎？

Power.

力量。

Power and probably availability of NVIDIA chips to our customers.

NVIDIA 晶片的功能以及可能為我們的客戶提供的可用性。

Yes.

是的。

I think go ahead.

我想繼續吧。

And what kind of impact do you think that will have as far as topping out how quickly you can grow?

您認為這會對您的成長速度達到高峰產生什麼樣的影響？

Is that the determining factor of how quickly you'll be able to grow is how quick you get those chips or the power, whichever one is your answer?

你能多快成長的決定因素是你多快獲得這些晶片或電源，無論你的答案是哪一個？

Answer?

回答？

You know, I think Max, like I mentioned earlier, we do a lot of scenario planning, what if.

你知道，我認為麥克斯，就像我之前提到的，我們做了很多場景規劃，假設會是什麼樣子。

And we have a very close working relationship with our customers, and we're constantly talking about technology and how do we adapt to the future technology.

我們與客戶有著非常密切的合作關係，我們不斷地談論技術以及我們如何適應未來的技術。

I mean, a kilowatt, I'm sorry, a rack today might be 88 kilowatts.

我的意思是，一千瓦，抱歉，今天的機架可能是 88 千瓦。

And I thought we were looking at mid early 200s and it's now approaching 300 and it's going to get even more powerful.

我以為我們看到的是 200 年代中期，現在已經接近 300 了，而且會變得更強大。

So the good news is, as I mentioned, Todd earlier, we're out in front of what that demand is going to be for power.

所以，正如我之前提到的，托德，好消息是，我們已經滿足了電力需求。

So I say power because everybody's chasing power.

所以我說權力是因為每個人都在追逐權力。

And it's going to be something we're going to have to deal with too.

這也將是我們必須處理的事情。

But we're out in front of it.

但我們已經在它前面了。

And I think we're okay.

我想我們還好。

I mean, I'm not saying we're not we're fat, dumb and happy sitting back, laying back and it's all good.

我的意思是，我並不是說我們不是，我們很胖，很笨，很高興坐下來，躺著，一切都很好。

It's a crazy world we live in.

我們生活在一個瘋狂的世界。

It's very frenetic and we just have to be out in front of it.

這是非常瘋狂的，我們必須走在它前面。

So I think we're okay for the time being based on our planning for anything in the next couple of years at least.

所以我認為，根據我們至少在未來幾年的計劃，目前我們還可以。

Yes.

是的。

And what we're moving, the city has been really cooperative in working with us on that.

對於我們正在採取的行動，該市在這方面與我們非常合作。

I believe they're in fact building a new substation near where we are.

我相信他們實際上正在我們附近建造一個新的變電站。

So I think that expands some possibilities for future expansion still.

所以我認為這仍然擴大了未來擴張的一些可能性。

You can't see it, but I'm smiling here because we're in Texas.

你看不到它，但我在這裡微笑，因為我們在德克薩斯州。

And usually around here when a guy or a woman or somebody says to you that you got a deal, it's good, it's good.

通常在這裡，當一個男人或一個女人或某人對你說你達成了協議時，這很好，這很好。

So we've got a really good relationship with the city, where we're going and where we're at actually.

因此，我們與這座城市有著非常良好的關係，無論我們要去哪裡，我們實際上在哪裡。

And I think we're okay.

我想我們還好。

As Danny said, Danny and Todd have been working really hard on this as well as the people representing us with this site.

正如丹尼所說，丹尼和托德以及在這個網站上代表我們的人們一直在努力工作。

And look man, there's no guarantee anywhere in this world, but I think we're in a good spot.

聽著，這個世界上任何地方都沒有任何保證，但我認為我們處於一個很好的位置。

Okay, great.

好的，太好了。

Thanks guys.

謝謝你們。

Appreciate the answer.

感謝您的回答。

Yes.

是的。

Thanks, Max.

謝謝，馬克斯。

And we have a question from Charles Hutchinson.

查爾斯·哈欽森向我們提出了一個問題。

Hi guys.

嗨，大家好。

I was wondering if you guys were operating near your full capacity when you guys were working on the June project.

我想知道你們在進行六月專案時是否已接近滿載運轉。

Short answer is no.

簡短的回答是否定的。

Yeah, that's it.

是的，就是這樣。

Charles, you don't have anything better than that.

查爾斯，你沒有比這更好的了。

Come on man, give me a better question.

來吧，夥計，給我一個更好的問題。

Yes.

是的。

I mean, I guess I would be curious how much of your capacity were you guys utilizing, and I guess what is the timeline on kind of utilizing that full capacity, if you have one?

我的意思是，我想我很好奇你們利用了多少容量，我想如果你們有的話，利用全部容量的時間表是什麼？

I wish I didn't say anything, we were good at no.

我希望我什麼也沒說，我們擅長不說。

The timeline, a lot of it depends on the demand signal.

時間表，很大程度上取決於需求訊號。

But we are good.

但我們很好。

I think, I mentioned once before that we have the capacity to grow 10x.

我想，我之前曾提到過，我們有能力成長 10 倍。

And I'm comfortable that we have that capacity.

我很高興我們有這樣的能力。

So the timeline, couple of years may be before we start to get a little tight.

因此，時間表可能需要幾年時間才能變得有點緊張。

But I think we're good for the time being.

但我認為我們暫時還不錯。

Great.

偉大的。

Thank you, guys.

謝謝你們，夥計們。

Now, but I'll also say this, I mean, somebody Gurdeep brought up the super micro.

現在，我還要說一下，我的意思是，有人古迪普提出了超微型。

I don't want to ever speak badly of anybody.

我不想說任何人的壞話。

I don't wish any ill will on anyone in our industry.

我不希望我們行業中的任何人受到任何惡意。

If there's a demand increase because of something related to that, we will adapt and adjust to it.

如果由於與此相關的原因而導致需求增加，我們將進行適應和調整。

And that would be a spike that we're not planning for, but we can prepare and adjust to.

這將是我們沒有計劃的高峰，但我們可以做好準備並進行調整。

So like I said earlier, bring it on, we'll take it on.

所以就像我之前說的，加油，我們會接受的。

Great.

偉大的。

Thank you, guys.

謝謝你們，夥計們。

You bet.

你打賭。

Thank you.

謝謝。

This does conclude today's Q&A session.

今天的問答環節到此結束。

I would now like to turn the floor back to Darryll Dewan for closing remarks.

現在我想請達裡爾·迪萬 (Darryll Dewan) 致閉幕詞。

Thank you, Tom, and thank you, everybody for listening to the call and Danny for your support here.

謝謝湯姆，謝謝大家收聽電話，謝謝丹尼在這裡的支持。

As I've said in previous calls, we remain focused on execution and we're excited to be an integration services leader at the intersection of advanced computing and AI.

正如我在之前的電話會議中所說，我們仍然專注於執行，我們很高興成為高階運算和人工智慧交叉領域的整合服務領導者。

We could not have accomplished this alone.

我們無法獨自完成這項任務。

We have a lot of people helping us.

有很多人幫助我們。

We thank each of them and you, our investors for believing in our company.

我們感謝他們每一個人以及您，我們的投資者對我們公司的信任。

We remain optimistic about our future and our growth opportunities.

我們對我們的未來和成長機會保持樂觀。

So thank you.

所以謝謝你。

I appreciate your participation today.

我感謝您今天的參與。

Thank you.

謝謝。

This does conclude today's conference call.

今天的電話會議到此結束。

You may disconnect your lines at this time and have a wonderful day.

此時您可以斷開線路並度過美好的一天。

Thank you once again for your participation.

再次感謝您的參與。