Daktronics Inc (DAKT) 2024 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Daktronics fiscal year 2024 third quarter earnings results conference call.

女士們、先生們，美好的一天，歡迎參加達科 2024 財年第三季財報電話會議。

As a reminder, this conference is being recorded, Wednesday, February 28, 2024, and is available on the company's website at www.daktronics.com. (Operator Instructions) I would now like to turn the conference over to Ms. Carla Gatzke, Corporate Secretary for Daktronics, for some introductory remarks.

謹此提醒，本次會議將於 2024 年 2 月 28 日星期三進行錄製，並可在公司網站 www.daktronics.com 上查看。 （操作員說明） 現在我想將會議轉交給 Daktronics 公司秘書 Carla Gatzke 女士做一些介紹性發言。

Please go ahead, Carla.

請繼續，卡拉。

Thank you, Kevin.

謝謝你，凱文。

Good morning, everyone.

大家，早安。

Thank you for participating in our third quarter earnings conference call.

感謝您參加我們的第三季財報電話會議。

I would like to review our disclosure, cautioning investors and participants that in addition to statements of historical fact, we will be discussing forward-looking statements reflecting our expectations and plans about the future, our future financial performance and future business opportunities.

我想回顧一下我們的揭露，提醒投資者和參與者，除了歷史事實的陳述之外，我們還將討論反映我們對未來、未來財務表現和未來商業機會的預期和計劃的前瞻性陳述。

These forward-looking statements reflect the company's expectations or beliefs concerning future events.

這些前瞻性陳述反映了公司對未來事件的期望或信念。

All forward-looking statements involve risk and opportunities that could cause actual results to differ materially to differ materially from our expectations.

所有前瞻性陳述都涉及風險和機遇，可能導致實際結果與我們的預期有重大差異。

Such risks include, but are not limited to changes in economic and market conditions, management of growth, timing and magnitude of future contracts and orders, fluctuations and margins, the introduction of new products and technology availability of raw materials components and shipping services and other important factors.

這些風險包括但不限於經濟和市場條件的變化、成長管理、未來合約和訂單的時間表和規模、波動和利潤、新產品的推出和原材料組件和運輸服務的技術可用性以及其他風險。重要因素。

These identified factors could cause actual results to differ materially from those discussed in this call.

這些已確定的因素可能會導致實際結果與本次電話會議中討論的結果有重大差異。

In the company's 2024 quarterly earnings release and in its most recent annual report on Form 10-K.

在該公司 2024 年季度收益發布和最新的 10-K 表格年度報告中。

I second quarterly 2024 earnings release contains certain non GAAP financial measures and was furnished to the SEC on a Form eight K this morning, clarify Third Quarter 2024 earnings release.

我的 2024 年第二季財報發布包含某些非 GAAP 財務指標，並已於今天上午以 8 K 表格的形式向 SEC 提供，以澄清 2024 年第三季收益發布。

We also made slides available for today's call.

我們也為今天的電話會議提供了幻燈片。

All of these documents are available on the Investors section at Daktronics website, www.daktronics.com.

所有這些文件均可在 Daktronics 網站 www.daktronics.com 的投資者部分取得。

I'll turn the call over to our CEO, Reece Kurtenbach.

我會將電話轉給我們的執行長 Reece Kurtenbach。

Thank you, Carla.

謝謝你，卡拉。

Good morning, everyone.

大家，早安。

Thank you all for joining us today.

感謝大家今天加入我們。

Our third quarter and year to date results reflect our team's strong execution of our strategies across all our business areas.

我們第三季和今年迄今的業績反映了我們團隊在所有業務領域中強有力地執行我們的策略。

These strategies have raised the bar for execution and expectations of profitability in our operating model.

這些策略提高了我們營運模式的執行標準和獲利預期。

As a result, we have delivered record sales and operating income to date in fiscal 2024 and drove robust operating cash generation in the third quarter.

因此，我們在 2024 財年迄今實現了創紀錄的銷售額和營業收入，並在第三季推動了強勁的營業現金產生。

These results serve as evidence of the success of our past decisive and deliberate actions taken to adapt to challenging business conditions and to improve our customers' experience while increasing our profitability and working capital levels.

這些結果證明了我們過去為適應充滿挑戰的業務條件、改善客戶體驗、同時提高盈利能力和營運資本水平而採取的果斷和深思熟慮的行動取得了成功。

Results also testify to the resiliency and strength of our teams within Daktronics and to our strategy of capturing demand in diversified markets and innovating across technology platforms.

結果也證明了達科團隊的彈性和實力，以及我們捕捉多元化市場需求和跨技術平台創新的策略。

If you have opened the slide deck, I invite you to turn to slide 3 titled fiscal third quarter 2024 highlights and to follow the financial outcomes for the quarter.

如果您已開啟投影片，我邀請您前往標題為 2024 年第三季財務亮點的投影片 3，並關注該季度的財務表現。

To put our fiscal 2024 results delivery into perspective, our third quarter is historically a seasonally low volume quarter for revenue, and therefore, historically could result in a breakeven or even a loss-making quarter.

從我們的 2024 財年業績交付來看，我們的第三季度歷來是營收的季節性低銷量季度，因此，歷史上可能會導致盈虧平衡，甚至虧損。

However, reflecting back to fiscal 2023, third quarter, we fulfilled back ordered work as we had new designs available to take advantage of the available parts in our supply chains and as other supply chain-related pressures were resolving.

然而，回顧 2023 財年第三季度，我們完成了延期交貨的工作，因為我們有新的設計可以利用供應鏈中的可用零件，並且其他與供應鏈相關的壓力正在解決。

This resulted in extraordinarily high volume and high profit for the third and fourth quarter of fiscal 2023, a unique time for us during this fiscal year's third quarter, despite a return to more traditional seasonality and fulfilling a lower volume volume of orders as compared to last year's surge.

這導致2023 財年第三季和第四季的銷售和利潤異常高，這對我們來說是本財年第三季的一個獨特時期，儘管我們回歸了更傳統的季節性，並且與去年相比，履行的訂單量較低。年的激增。

We drove an $8 million profit operating profit and generated $9 million in operating cash flow.

我們實現了 800 萬美元的營運利潤，並產生了 900 萬美元的營運現金流。

During fiscal Q3, we experienced robust order volume of 192 million live events and the Commercial Business Unit orders strengthened in the quarter and all domestic markets saw growth.

在第三財季，我們的現場活動訂單量強勁，達到 1.92 億場，商業業務部門訂單在本季度有所加強，所有國內市場均出現成長。

Third quarter orders grew 29% more than last year's third quarter, bringing year to date order growth to 6.6% for the year.

第三季訂單比去年第三季成長 29%，使今年迄今的訂單成長率達到 6.6%。

These increases reflect our focus on profitable order generation and our serviceable address available markets or SAM backlog continues to decrease from last year's built-up levels as we recognize the anniversary of the resolution of supply chain challenges and utilize our capacity to deliver customer orders at market expected lead times.

這些增長反映了我們對盈利訂單產生的關注，以及我們的可服務地址可用市場或SAM 積壓量比去年的累積水平繼續減少，因為我們認識到解決供應鏈挑戰的周年紀念日，並利用我們的能力在市場上交付客戶訂單預期的交貨時間。

With respect to sourcing, our revamped and more diversified supply chains are functioning well across our suppliers.

在採購方面，我們經過改造且更加多元化的供應鏈在供應商中運作良好。

As we primarily compete with companies that obtain their products from China and compete on price, we've continued to evaluate our price position in the market and are adjusting our prices to achieve our order attainment goals at profitable levels.

由於我們主要與從中國獲取產品並在價格上競爭的公司競爭，因此我們繼續評估我們在市場上的價格地位，並正在調整我們的價格，以在盈利水平上實現我們的訂單達成目標。

Given our results to date this year and the momentum in our order flow, we feel good about our positioning to drive profitable growth and cash flow generation into the fourth quarter and beyond.

鑑於我們今年迄今的業績以及訂單流的勢頭，我們對推動第四季度及以後盈利增長和現金流產生的定位感到滿意。

For additional details on the financial results for the quarter, I'll now turn it over to Sheila.

有關本季度財務業績的更多詳細信息，我現在將其轉交給 Sheila。

Thank you, Reece.

謝謝你，里斯。

Please turn your attention to slide 4, titled, SQ3 FY 2024 financial highlights, for the quarterly overview.

請將您的注意力轉向幻燈片 4，標題為“2024 財年第三季財務摘要”，以了解季度概述。

Orders for the third quarter of fiscal 2024 increased by 29.4% from the third quarter of fiscal 2023 through strong demand in the live events business unit, returning demand in the spectacular and out of home markets in our Commercial Business Unit and solid growth in High School Park and Recreation and transportation business units.

由於現場活動業務部門的強勁需求、商業業務部門壯觀的戶外市場需求回升以及高中業務的穩健增長，2024 財年第三季度的訂單較 2023 財年第三季度增長了 29.4%公園、休閒和交通業務單位。

These higher orders offset the decline in the international business units orders as compared to last year.

與去年相比，這些訂單的增加抵消了國際業務部門訂單的下降。

Third quarter, we believe international demand softness relates to the economic and geopolitical geo political conditions.

第三季度，我們認為國際需求疲軟與經濟和地緣政治條件有關。

We generated sales of $170 million for the third quarter of fiscal 2024.

2024 財年第三季我們的銷售額為 1.7 億美元。

As compared to $185 million of sales for the third quarter of fiscal 2023.

相比之下，2023 財年第三季的銷售額為 1.85 億美元。

This 7.9% sales volume declined as the industry is returning to more traditional seasonal trends.

隨著行業回歸更傳統的季節性趨勢，銷量下降了 7.9%。

And because during last year's back half of the second quarter and during the third quarter, the supply chain stabilization allowed us to physically finish a high volume of orders and deliver for revenue recognition in those quarters.

因為在去年第二季後半段和第三季期間，供應鏈的穩定使我們能夠實際完成大量訂單並在這些季度實現收入確認。

As Reece highlighted, the third quarter is our historically low sales volume quarter because of sports seasonality, outdoor construction malls in the winter months and fewer workdays due to the holiday breaks.

正如 Reece 所強調的那樣，由於體育季節性、冬季戶外建築商場以及假日導致的工作日減少，第三季度是我們銷售歷史最低的季度。

This year's third quarter volume was as expected.

今年第三季的銷售量符合預期。

Supply chains also continued to flow generally as expected, gross margin as a percentage of net sales increased to 24.5% for the third quarter of fiscal 2024 as compared to 22.6% in the third quarter of fiscal 2023.

供應鏈也持續如預期持續流動，2024 財年第三季毛利率佔淨銷售額的百分比增至 24.5%，而 2023 財年第三季為 22.6%。

The 190 basis point increase in gross profit percentage is attributable to strategic pricing actions and stability in our diversified supply chain.

毛利率成長190個基點歸功於策略定價行動和多元化供應鏈的穩定性。

Operating margin was 4.7% of sales during the third quarter of fiscal 2024 as compared to last year's 3.8% or adjusted 6.3% without the noncash goodwill impairment charge recorded in last year's quarter three fiscal 2020 for third quarter's positive operating margin rate is attributable to our continued careful management of operating expenses again, it's notable that we delivered an $8 million Third Quarter Fiscal 2020 for operating profit in our seasonally lowest volume quarter of the year.

2024 財年第三季的營業利潤率為銷售額的4.7%，而去年為3.8%，調整後為6.3%（不考慮去年第三季記錄的2020 財年第三季的非現金商譽減損費用），營業利潤率正值歸因於我們的再次繼續謹慎管理營運費用，值得注意的是，我們在2020 財年第三季度實現了800 萬美元的營運利潤，而這是我們季節性銷售最低的季度。

Please turn to slide.

請轉到幻燈片。

As a highlight year to date, performance orders for the first nine months of fiscal 2024 increased by 6.6% as compared to the first nine months of fiscal 2023 through strong demand in live events, transportation and High School Park and Recreation business units.

作為今年迄今為止的一個亮點，由於現場活動、交通以及高中公園和娛樂業務部門的強勁需求，2024 財年前 9 個月的演出訂單較 2023 財年前 9 個月增長了 6.6%。

Commercial orders are down for the nine months from last year due to a large to a due to a lack of large project bookings and a reduction in order spend by the Out of Home segment customers in the first six months of the year, partially offset by the third quarter improvement in order placements.

由於缺乏大型專案預訂以及今年前 6 個月戶外細分市場客戶的訂單支出減少，商業訂單比去年同期下降了 9 個月，但部分抵消了第三季度訂單量有所改善。

International also was down slightly on a nine month basis.

國際航空也較九個月略為下降。

Sales grew 10.6% for the first nine months which aligns to the order volume and built-up backlog coming into the first part of the fiscal year.

前 9 個月的銷售額成長了 10.6%，這與本財年上半年的訂單量和累積積壓訂單量相符。

Gross margin as a percent of net sales increased to 27.7% for the first nine months of fiscal 2024 as compared to 18.2% in the first nine months of fiscal 2023.

2024 財年前 9 個月的毛利率佔淨銷售額的百分比增至 27.7%，而 2023 財年前 9 個月的毛利率為 18.2%。

The 950 basis points increase in gross profit percentage is attributable to our strategic pricing actions, our investments in factory automation, our focus on cost effective and high-quality product designs and the stability of our diversified supply chain after investments and operational areas and organic growth.

毛利率成長950個基點歸功於我們的策略定價行動、對工廠自動化的投資、對成本效益和高品質產品設計的關注以及投資和營運領域和有機成長後多元化供應鏈的穩定性。

The resulting operating margin was 11.2% of sales during the third quarter of fiscal 2024 as compared to last year's 0.6% or 1.4% at that goodwill impairment was repeat removed from the calculation of non-GAAP calculation, but helpful to compare the improvements.

2024 財年第三季的營業利潤率為銷售額的 11.2%，而去年為 0.6% 或 1.4%，因為商譽減損被重複從非 GAAP 計算中刪除，但有助於比較改進情況。

The balance sheet -- from a balance sheet perspective, our cash position net of debt increased due to cash generation from the profitable quarter and management of working capital.

資產負債表－從資產負債表的角度來看，由於獲利季度產生的現金和營運資金的管理，我們扣除債務的現金狀況增加。

Cash net of debt was $27.2 million, and we generated $53.8 million of operating cash flow during the first nine months because of our profitability and our ability to lower investments in inventory levels from the height of the supply chain challenges.

扣除債務的現金為 2720 萬美元，前 9 個月我們產生了 5380 萬美元的營運現金流，因為我們的盈利能力以及我們在供應鏈挑戰最嚴重的時候降低庫存水平投資的能力。

Our working capital ratio at quarter end was 2.2 compared to 1.6 at the same time last year.

季度末我們的營運資本比率為 2.2，去年同期為 1.6。

For an update on the market verticals, I'll turn it back over to you, Reece.

有關垂直市場的最新信息，我會將其轉回給您，Reece。

Thank you, Sheila.

謝謝你，希拉。

Please reference slide 6 titled, market verticals update.

請參考標題為「市場垂直更新」的投影片 6。

Our mission is to support our customers to inform, entertain and persuade their audiences and their customers.

我們的使命是支持我們的客戶告知、娛樂和說服他們的受眾和客戶。

Let us look more specifically into our business areas.

讓我們更具體地看看我們的業務領域。

In live events.

在現場活動中。

We again, partnered with the Detroit Tigers to deliver the second largest main video display in baseball's, major leagues at Comerica Park, updating and upgrading our previous installation from 2012 five additional displays will be installed along the fascia dugout and line score locations ahead of the 2024 baseball season.

我們再次與底特律老虎隊合作，在聯信公園(Comerica Park) 提供棒球大聯盟中第二大的主視頻顯示屏，更新和升級了我們從2012 年開始安裝的設備，在比賽開始之前，將在筋膜休息區和記分線位置安裝另外5 個顯示器2024 年棒球賽季。

Moving forward, we expect live events demand to remain strong as there are a number of projects being bid as venues, enhanced facilities to entertain fans and attract athletes.

展望未來，我們預計現場活動需求將保持強勁，因為有許多項目正在競標作為場館、增強設施以娛樂球迷和吸引運動員。

We see this trend continuing and more focus being placed on entertainment areas and the experience outside the bowl in places like entry ways, atriums, concourses and adjacent entertainment areas.

我們看到這種趨勢仍在持續，人們更加關注娛樂區域以及碗外入口通道、中庭、大廳和鄰近娛樂區域等地方的體驗。

Commercial orders, especially from customers in the out-of-home advertising space can be sensitive to economic conditions and they can rebound quickly as conditions improve.

商業訂單，尤其是來自戶外廣告領域客戶的訂單，可能對經濟狀況很敏感，隨著經濟狀況的改善，它們可能會迅速反彈。

This market is also sensitive to the large national advertisers spending decisions, which is why we also focus on winning other independent billboard sales.

這個市場對全國大型廣告商的支出決策也很敏感，這就是為什麼我們也專注於贏得其他獨立廣告看板銷售的原因。

We saw a nice order rebound in Q three and both national and local out-of-home customers.

我們在第三季看到全國和本地戶外客戶的訂單出現了良好的反彈。

However, large national out-of-home companies are noting plans to continue to constrain spending in the coming calendar year.

然而，大型全國戶外公司注意到，計劃在未來一年繼續限制支出。

We continue to innovate and provide competitive differentiation in the marketplace to reach the needs of our customers.

我們不斷創新並在市場上提供競爭優勢，以滿足客戶的需求。

For example, we are seeing interest in our light direct digital billboards, light direct narrows the viewing cone of the display preventing light emissions from spilling into surrounding areas and targeting only the intended audience in urban and rural environments.

例如，我們看到了人們對我們的光直接數位廣告看板的興趣，光直接縮小了顯示器的視錐範圍，防止光發射溢出到周圍區域，並僅針對城市和農村環境中的目標受眾。

We continue to build out our AV integrator network to market our narrow pixel product lines, especially in control room applications used by military utility and transportation agencies, transportation.

我們繼續建立我們的視音頻整合商網絡，以行銷我們的窄像素產品線，特別是在軍事公用事業和運輸機構、交通運輸使用的控制室應用中。

Our teams are focused in winning projects for intelligent transportation systems, as highlighted by fiscal Q. three wins and on projects in Arkansas and Tennessee International.

我們的團隊專注於贏得智慧交通系統項目，正如財政季度的三個勝利所強調的那樣，以及阿肯色州和田納西州國際機場的項目。

During the quarter, we won a stadium project and orders for transportation areas yet orders have been slow this year, which we believe is due to economic and geopolitical uncertainty.

本季度，我們贏得了體育場項目和交通領域的訂單，但今年訂單增長緩慢，我們認為這是由於經濟和地緣政治的不確定性。

Customers continue to demonstrate interest in projects but are delaying buying decisions.

客戶繼續表現出對專案的興趣，但正在推遲購買決定。

Our sales teams continue to be responsive to customers and are actively quoting opportunities in high schools.

我們的銷售團隊繼續回應客戶，並積極引用高中的機會。

The trend going forward continues to be conversion to full video.

未來的趨勢仍然是轉換為完整影片。

We are well positioned to meet this demand and believe we are in the early stages of this transition.

我們有能力滿足這一需求，並相信我們正處於這一轉變的早期階段。

We are looking to speed up and simplify the sales processes and increased our market reach process by deploying sales strategies.

我們希望透過部署銷售策略來加快和簡化銷售流程，並擴大我們的市場覆蓋範圍。

To make certain items available to be purchased online.

使某些商品可以在線購買。

We also continue to develop our sales channel and these efforts are going well.

我們也繼續開發我們的銷售管道，這些努力進展順利。

We are continuing to offer more products through these online and partner channels and have improved processes to make the buying process more efficient.

我們將繼續透過這些線上和合作夥伴管道提供更多產品，並改善流程以提高購買流程的效率。

From a big picture perspective, our customers use our control capabilities to create, manage and schedule content for engagement with fans and audiences.

從大局來看，我們的客戶使用我們的控制功能來創建、管理和安排與粉絲和觀眾互動的內容。

We continue to make progress on our multiyear strategy to create more capabilities to aid in the service and maintenance of our systems as well as continually add to the feature set of our cloud-based and locally hosted systems.

我們繼續在多年策略上取得進展，以創建更多功能來幫助我們的系統服務和維護，並不斷添加基於雲端和本地託管系統的功能集。

These capabilities are increasingly offered through software as a service, and we are investing in people and capabilities to grow these higher margin opportunities.

這些功能越來越多地透過軟體即服務來提供，我們正在對人員和能力進行投資，以擴大這些更高利潤的機會。

If you would focus on slide 7, titled strategic focus.

如果您關注投影片 7，標題為「策略重點」。

Overall, our target markets are large and growing with resilient demand, driven by our customers' desire to improve their audience experience in sports, commercial and transportation environments.

總體而言，我們的目標市場規模龐大，並且在客戶希望改善體育、商業和交通環境中的觀眾體驗的願望的推動下，需求不斷增長。

More specifically, we are focused on profitable growth by capturing more of our serviceable available market or SAM by expanding the share of customer spend, adding new customers, developing control options and expanding the services we offer driving increases in monthly recurring revenues.

更具體地說，我們專注於利潤成長，透過擴大客戶支出份額、增​​加新客戶、開發控制選項和擴大我們提供的服務來推動每月經常性收入的成長，從而佔領更多可用市場或 SAM。

For example, we are offering frameworks a content design platform that enables students and staff the ability to access top-level content to elevate their brand for event production and promotions.

例如，我們提供內容設計平台框架，使學生和工作人員能夠存取頂級內容，以提升他們的活動製作和促銷品牌。

We're also working to capture new ways to use in-demand project products such as expanding applications using our indoor narrow pixel pitch product, which are applicable across all our businesses.

我們也致力於尋找使用需求項目產品的新方法，例如使用我們的室內窄像素間距產品擴展應用程序，這些產品適用於我們所有的業務。

For example, we sold additional concourse displays from our MPP. product line to the Green Bay Packers, Atlanta Field and existing customer using our traditional products internationally, we are driving live events, commercial and transportation opportunities as the economic conditions continue to improve and we are focused on developing and marketing to the military by attending tradeshows specific to the industry and growing relationships with AV integrators focused on this market.

例如，我們透過 MPP 出售了額外的大廳顯示器。綠灣包裝工隊、亞特蘭大球場和國際上使用我們傳統產品的現有客戶的產品線，隨著經濟狀況的持續改善，我們正在推動現場活動、商業和運輸機會，我們專注於透過參加貿易展向軍隊進行開發和行銷針對特定行業以及與專注於該市場的 AV 整合商不斷發展的關係。

As we grow revenues, we are working to further increase our nimbleness and flexibility in capacity allocation and utilization.

隨著收入的成長，我們正在努力進一步提高產能分配和利用的靈活性。

We are investing over the coming fiscal years and improvements in our demand planning tools and alignment to capacity for integrated business planning and are expanding factory qualifications to have flexibility for where a product is built to maximize the use of our infrastructure and dynamically aligning capacity to adjust to seasonality and varying order flow by market.

我們將在未來的財政年度進行投資，改進我們的需求規劃工具並調整綜合業務規劃的能力，並擴大工廠資格，以便在產品的生產地點具有靈活性，從而最大限度地利用我們的基礎設施並動態調整產能以進行調整季節性和市場不同的訂單流。

Turning to slide 8 and slide nine, we are we appreciate the feedback and questions that we received from our shareholders and wanted to take this opportunity to address some of the questions most frequently asked.

轉向投影片 8 和投影片 9，我們感謝股東提供的回饋和問題，並希望藉此機會解決一些最常見的問題。

First, we are often asked why we don't give guidance today.

首先，我們經常被問到為什麼我們今天不提供指導。

As you know, our demand is project driven and therefore, can be lumpy.

如您所知，我們的需求是專案驅動的，因此可能是不穩定的。

Demand is also highly seasonal.

需求也具有很強的季節性。

And additionally, demand can be impacted by customers and construction site schedules all making it difficult to give precise estimates for the future.

此外，需求可能會受到客戶和建築工地進度的影響，這使得我們很難對未來做出準確的估計。

What we can say today is that over the next three to five years, we are working to drive sales growth with our sights on $1 billion of annual revenue and operating margin sustainability in the mid to upper end of the 5% to 10% range.

今天我們可以說的是，在未來三到五年內，我們將努力推動銷售成長，目標是年收入達到 10 億美元，營業利潤率可持續保持在 5% 到 10% 範圍的中高端。

As we move forward, we are investing in processes and systems to increase our level of control over the controllable elements of our business.

隨著我們的前進，我們正在對流程和系統進行投資，以提高我們對業務可控要素的控制水準。

This work is expected to increase our ability to be responsive to changing conditions as we grow in an increasingly complex global marketplace.

隨著我們在日益複雜的全球市場中成長，這項工作預計將提高我們應對不斷變化的條件的能力。

By taking these actions.

透過採取這些行動。

Our goal is to raise our visibility in, as I mentioned, a lumpy seasonal business and enhance our internal planning capabilities.

正如我所提到的，我們的目標是提高我們在不穩定的季節性業務中的知名度，並增強我們的內部規劃能力。

It is important to note we but as we look more on an annual perspective in order to identify prevailing trends in our businesses and plan accordingly, while maintaining as much flexibility as possible.

值得注意的是，我們更著眼於年度視角，以確定我們業務的普遍趨勢並做出相應的計劃，同時保持盡可能多的靈活性。

We will continue to reevaluate our guidance practices over time to help our investors understand our outlook.

隨著時間的推移，我們將繼續重新評估我們的指導實踐，以幫助我們的投資者了解我們的前景。

Investors also ask what is our capital capital allocation strategy.

投資者也問我們的資本配置策略是什麼。

We historically planned around 5% of sales in research and development expenses and roughly 3% of sales on average in capital spending to maintain our technology leadership, manage and maintain our manufacturing capacity information system and infrastructure and sales demonstration equipment.

我們歷來計劃將銷售額的5% 左右用於研發費用，平均將銷售額的3% 左右用於資本支出，以保持我們的技術領先地位，管理和維護我們的製造能力資訊系統以及基礎設施和銷售演示設備。

We also look for opportunistic acquisitions that can help us advance our technologies, penetrate new geographies or help expand our serviceable addressable market going forward as we increase our sustainability and cash flow generation we could consider repayment of our debt, and we may also consider the resumption of quarterly dividends and or share repurchases.

我們也尋找機會性收購，幫助我們推進技術、滲透新的地區或幫助擴大我們未來的可用目標市場，因為我們提高了可持續性和現金流量的產生，我們可以考慮償還債務，我們也可以考慮恢復季度股利和/或股票回購。

Turning to slide 9.

轉到投影片 9。

Finally, we want to reiterate that our Board has aligned management compensation structure with investors' priorities for profitable growth.

最後，我們要重申，我們的董事會已將管理層薪酬結構與投資者實現盈利增長的優先事項保持一致。

Specifically, the incentive compensation program is based on operating income as our key metric with targets of 10%.

具體來說，激勵薪酬計畫以營業收入為關鍵指標，目標為10%。

The strategies we described previously are designed to help us move towards that achievement, capturing profitable SAM, developing best-in-class solutions and managing expenses, maximizing our utilization and increasingly increasing the agility of our manufacturing capacity and automation through our systems and processes, our keys to managing expenses.

我們先前描述的策略旨在幫助我們實現這一成就，獲取可盈利的SAM、開發一流的解決方案和管理費用、最大限度地提高利用率並透過我們的系統和流程不斷提高製造能力和自動化的敏捷性，我們管理費用的關鍵。

Turning to fiscal Q4 2024 qualitative outlook, I'd encourage you to reference slide 10.

談到 2024 年第四財季的質性展望，我鼓勵您參考投影片 10。

Given what we see in our businesses today, we anticipate our fiscal fourth quarter seasonality to be similar to pre-pandemic patterns, which is historically an increase in revenue and profitability as compared to the third quarter.

鑑於我們今天在業務中看到的情況，我們預計第四財季的季節性與大流行前的模式相似，從歷史上看，與第三季度相比，收入和盈利能力都有所增長。

While we are not offering a quantitative outlook, qualitatively, we look for fiscal 2020 for fourth quarter net sales to increase sequentially and decrease from the year ago.

雖然我們沒有提供定量展望，但從定性角度來看，我們預計 2020 財年第四季的淨銷售額將季增，比去年同期下降。

Period, which was again a high-volume period in which we were fulfilling back orders related to the pandemic recovery.

這段時間又是一個高產量時期，我們正在履行與疫情復甦相關的延期交貨訂單。

We are positioned for continued sequential Martin margin and cash flow generation in conclusion, our summary on Slide 11 recaps our key highlights.

最後，我們的定位是持續連續的馬丁利潤和現金流生成，我們在幻燈片 11 上的總結回顧了我們的主要亮點。

Our year-to-date results offer evidence that we have overcome the challenges caused by the constrained supply chain and pandemic implications of recent years, we enjoy our position as a global industry leader in best in class video communication systems.

我們今年迄今為止的結果證明，我們已經克服了近年來供應鏈受限和大流行影響帶來的挑戰，我們享有作為一流視訊通訊系統的全球行業領導者的地位。

We are the technology leader in our industry and are the only US manufacturer of scale with a global footprint.

我們是業界的技術領導者，也是唯一一家業務遍及全球的美國規模製造商。

What differentiates us from our competitors is our US base, our technology leadership, the high quality of our solutions, our high touch service and our large entrenched customer base.

我們與競爭對手的區別在於我們的美國基地、我們的技術領先地位、我們的解決方案的高品質、我們的高接觸服務和我們龐大的根深蒂固的客戶群。

Our target markets are large and growing with resilient demand, driven by audience experience, sports fan engagement and customer success with our systems, we are focused on a multiyear journey to capture the growth in existing SAM and in other areas.

我們的目標市場規模龐大，並且隨著需求的彈性而不斷增長，在觀眾體驗、體育迷參與度和客戶使用我們的系統取得成功的推動下，我們致力於透過多年的努力來捕捉現有SAM 和其他領域的成長。

This places us for sustainable revenue, earnings and cash flows.

這使我們能夠實現可持續的收入、利潤和現金流。

We are very proud of our results and grateful to our teams who work together to deliver them, and we look forward to a solid end to the year.

我們對我們的成果感到非常自豪，並感謝我們的團隊共同努力實現這些成果，我們期待今年有一個堅實的結束。

With that, I would ask the operator to please open the line for questions.

這樣，我會要求接線員打開電話詢問問題。

(Operator Instructions) BJ Cook, Singular Research.

（操作員指令）BJ Cook，Singular Research。

Yes, thanks for taking my question, guys.

是的，謝謝你們提出我的問題，夥伴們。

On new order growth was quite a bright spot for the quarter.

新訂單成長是本季的一大亮點。

Interestingly, last quarter there were higher orders in international and transportation and a decrease in commercial this quarter was quite the opposite.

有趣的是，上季度國際和運輸領域的訂單有所增加，而本季商業領域的訂單下降則恰恰相反。

I know your results can kind of be choppy, but is there anything unique that you're seeing in those segments, given the jump in in new orders?

我知道您的結果可能有點不穩定，但是考慮到新訂單的增加，您在這些細分市場中看到了什麼獨特的東西嗎？

Bj, for Phil, I appreciate the question and thanks for joining us this morning.

Bj，菲爾，我很欣賞這個問題，並感謝您今天早上加入我們。

And I think what you're seeing is as we described here, lumpiness.

我認為你所看到的就是我們在這裡所描述的，塊狀。

We believe international and transportation tends to be large order based and that order books in a certain period and then it fulfills in subsequent periods.

我們認為，國際和運輸往往以大訂單為基礎，在特定時期訂購書籍，然後在隨後的時期履行。

And so I think what you're seeing is a normal kind of impact of our business, which is why we tend to look over our larger periods to kind of smooths some of that out.

因此，我認為您所看到的是我們業務的正常影響，這就是為什麼我們傾向於審視較長時期以消除其中的一些影響。

Great.

偉大的。

Thanks.

謝謝。

You guys mentioned in your remarks some new sources of revenues and SaaS, recurring revenue and military as well.

你們在發言中提到了一些新的收入來源和 SaaS、經常性收入和軍事。

Can you expand on those or how far along in the sales process are you are those different opportunities?

您能否詳細說明這些機會，或者您在銷售流程中對這些不同的機會進行了多遠的了解？

Certainly, our -- what we call our narrow pixel pitch product has really matured into a nice of a line of different pixel pitches and different ways that our customers can use them.

當然，我們所謂的窄像素間距產品確實已經成熟，成為一系列不同像素間距和客戶可以使用它們的不同方式的產品線。

And the other AV integrator own reseller chain that we sell.

我們銷售的其他 AV 整合商擁有自己的經銷商鏈。

A lot of that through, continues to grow and be developed some of, but there's still room to continue to add AV integrators and build our visibility in that market space on the software as a system and some of these other content services.

其中許多都在繼續成長和開發，但仍有空間繼續添加 AV 整合商，並在軟體即係統和其他一些內容服務的市場空間中建立我們的知名度。

We see great potential in those areas.

我們看到這些領域的巨大潛力。

But relatively new, we're adding customers in those areas, but really in the past 12 to 18 months that has started.

但相對較新，我們在這些領域增加了客戶，但實際上是在過去 12 到 18 個月內才開始的。

Thanks, guys.

多謝你們。

Appreciate it.

欣賞它。

Thanks, BJ.

謝謝，BJ。

Anja Soderstrom, Sidoti.

安雅·索德斯特羅姆，西多蒂。

Thank you for taking my question and congratulations on the good progress here.

感謝您提出我的問題並祝賀這裡取得的良好進展。

I'm just curious the backlog declining, understand that's due to a catch-up from last year as to type two, but when do you think that will revert to seeing growth again?

我只是好奇積壓量下降，明白這是由於去年第二類產品的趕上，但您認為什麼時候會再次看到成長？

Our backlog is going to fluctuate from quarter to quarter, Anja, as of as we book these large orders and then kind of work them off.

安雅，我們的積壓訂單會逐季度波動，因為我們預訂了這些大訂單，然後將其解決。

We believe, though that are a year ago, our backlog was too large.

我們相信，儘管那是一年前的事，但我們的積壓量太大了。

We had a lot of project in there and we weren't able to meet market lead times.

我們在那裡有很多項目，但無法滿足市場交貨時間。

And so we see the reduction year-over-year in backlog as a positive as we've as we've got our delivery more into market lead times of what I would also say that as we talked about seasonality, our fiscal Q1 and Q2 tend to be our largest revenue quarters.

因此，我們認為積壓的逐年減少是積極的，因為我們已經將交付時間更多地推向了市場提前期，我也想說，當我們談到季節性、我們的第一財季和第二財季時往往是我們營收最大的季度。

And so we would expect backlog to grow somewhat as we go into that period and then shrink as we go into Q three and then grow again as we would come back into the next fiscal year as we've just over experience at seasonality in and out.

因此，我們預計積壓訂單會在進入該時期時有所增加，然後在進入第三季度時有所減少，然後在進入下一個財年時再次增長，因為我們剛剛經歷了季節性進出的情況。

Is that helpful, Anja?

這有幫助嗎，安雅？

Yes, that was helpful.

是的，這很有幫助。

Thank you.

謝謝。

And then in terms of the gross margin fluctuating quite a bit as well, what is a sensible one to use going forward for forward projections?

然後，考慮到毛利率也波動很大，未來預測時使用什麼是明智的呢？

Revenue growth is the -- gross profit

收入成長是－毛利

--

--

The gross margins.

毛利率。

Gross margins, again, I think we're going to see a stabilization in our gross margins as the business environment just isn't as volatile as it was a year or so ago.

毛利率，我認為我們的毛利率將會穩定，因為商業環境不像一年前那麼不穩定。

Where does that all settle out is a good question.

這一切在哪裡解決是一個好問題。

And yes, we believe that we certainly are enjoying these gross margins and we're very sensitive to pricing adjustments and cost increases, and we're fighting to hold those gross margins quarter-after-quarter.

是的，我們相信我們確實正在享受這些毛利率，並且我們對價格調整和成本增加非常敏感，我們正在努力保持每個季度的毛利率。

As far as guidance on what gross margins would or could be, I don't think we're ready to give that at this time.

至於毛利率將是或可能是多少的指導，我認為我們目前還沒有準備好給出這一指導。

Okay.

好的。

Thank you.

謝謝。

That was all for me.

這就是我的全部。

Thank you, Anja.

謝謝你，安雅。

(Operator Instructions) And I'm not showing any further questions at this time.

（操作員說明）我目前不會提出任何進一步的問題。

I'd like to turn the call back over to Reece for any closing remarks.

我想將電話轉回給 Reece，讓其結束語。

Thank you, Kevin.

謝謝你，凱文。

I'd like to thank everyone for attending our conference call today.

我要感謝大家參加今天的電話會議。

I would like to let you know that we are appearing at the Sidoti Small-Cap Conference in March, and we often have one-on-ones following the conference call.

我想讓您知道，我們將出席三月份的 Sidoti 小型股會議，電話會議後我們經常進行一對一的交流。

We'll host the next earnings call likely in June as we release our annual results.

我們可能會在六月發布年度業績時召開下一次財報電話會議。

I hope you all have a great day and a great week, and thanks again for joining us.

我希望大家度過愉快的一天和愉快的一周，並再次感謝您加入我們。

Ladies and gentlemen, this does conclude today's presentation.

女士們、先生們，今天的演講到此結束。

You may now disconnect and have a wonderful day.

您現在可以斷開連接並度過美好的一天。