Daktronics Inc (DAKT) 2024 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Daktronics' fiscal year 2024 fourth quarter earnings results conference call. As a reminder, this conference is being recorded today, Wednesday, June 12, 2024, and is available on the company's website at www.daktronics.com.

女士們、先生們，美好的一天，歡迎參加達科 2024 財年第四季財報電話會議。謹此提醒，本次會議於今日（2024 年 6 月 12 日星期三）錄製，可在本公司網站 www.daktronics.com 上查看。

I would now like to turn the conference over to Ms. Carla Gatzke, company Secretary for Daktronics for some introductory remarks. Please go ahead, Carla.

現在我想請達科公司秘書 Carla Gatzke 女士做一些介紹性發言。請繼續，卡拉。

Thank you, Siobhan, and good morning, everyone. Thank you for participating in our fourth quarter earnings conference call. I would like to review a few 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 our future financial performance, and future business opportunities.

謝謝你，Siobhan，大家早安。感謝您參加我們的第四季財報電話會議。我想回顧一些揭露內容，提醒投資者和參與者，除了歷史事實的陳述外，我們還將討論前瞻性陳述，反映我們對未來財務表現和未來商業機會的期望和計劃。

These forward-looking statements reflect the company's expectations or beliefs concerning future events. All forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from our expectations. 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 in margin, the introduction of new products and technology, availability of raw material, components and shipping services, and other important factors.

這些前瞻性陳述反映了公司對未來事件的期望或信念。所有前瞻性陳述均涉及風險和不確定性，可能導致實際結果與我們的預期有重大差異。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、利潤波動、新產品和技術的引入、原材料、零件和運輸的可用性服務和其他重要因素。

This identified factors could cause actual results to differ materially from those discussed in this call in the company's fourth quarter 2024 quarterly earnings release and its most recent annual report on Form 10-K. Our fourth quarter 2024 earnings release contain certain non-GAAP financial measures and was furnished to the SEC on a Form 8-K this morning. We will also make slides available for today's call. All of these documents are available on the Investors section of the Daktronics' website, www.daktronics.com.

這些確定的因素可能導致實際結果與該公司 2024 年第四季季度收益發布和最新 10-K 表格年度報告中討論的結果有重大差異。我們的 2024 年第四季財報包含某些非 GAAP 財務指標，並已於今天上午以 8-K 表格形式提交給 SEC。我們還將為今天的電話會議提供幻燈片。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. Good morning, everyone, and thank you all for joining us today. I would like to start by saying congratulations to the Daktronics team for an amazing year. We began and finished fiscal 2024 strong, demonstrating the increased power of our more profitable business model resulting from the operating improvements we've made over the past two years. We achieved record revenue and solid expansion in our operating profitability and cash flow generation.

謝謝。大家早安，感謝大家今天加入我們。首先，我要祝賀達科團隊度過了令人驚嘆的一年。我們在 2024 財年開始和結束時表現強勁，這證明了我們在過去兩年中取得的營運改善所帶來的盈利能力更強的業務模式的力量的增強。我們實現了創紀錄的收入，並在營業利潤和現金流方面實現了穩健擴張。

As you can see on our slide presentation on page 3, fiscal 2024 was a year of terrific accomplishment as we executed on a number of strategies and made progress toward our long-term objectives. Some highlights of our year: we refinanced the company to ensure we have the resources available to serve our customers and build long-term value for our shareholders.

正如您在第 3 頁的幻燈片簡報中看到的那樣，2024 財年是取得巨大成就的一年，我們執行了多項策略並在實現長期目標方面取得了進展。今年的一些亮點：我們為公司進行了再融資，以確保我們擁有可用資源來服務客戶並為股東創造長期價值。

We executed consistently to incrementally raise the base profitability of the business by allocating resources to growing business segments and the most profitable projects. We generated substantially higher cash flow through our increased profitability and our management of working capital and through efforts such as reduction in inventory levels post supply chain correction.

我們始終如一地將資源分配給不斷成長的業務部門和最賺錢的項目，逐步提高業務的基本獲利能力。透過提高獲利能力和營運資金管理，以及透過供應鏈調整後降低庫存水準等努力，我們產生了大幅增加的現金流。

On the product front, we continue to innovate to maintain our technology leadership as seen in releases like additional Narrow Pixel Pitch product lines used primarily in indoor applications. With respect to our end market penetration, our teams deepened our relationship with AV integrators in new customer areas to reach growing markets. As an example, we delivered displays to a number of military sites this past year.

在產品方面，我們不斷創新以保持我們的技術領先地位，例如主要用於室內應用的其他窄像素間距產品線等。在我們的終端市場滲透方面，我們的團隊加深了與新客戶領域的視音頻整合商的關係，以進入不斷成長的市場。例如，去年我們向許多軍事場所提供了顯示器。

We laid essential groundwork for our digital transformation strategy, making progress in our services systems area and investing in enterprise performance management software. In our facilities, we further optimize our operations in manufacturing and site fulfillment processes as we return to serving customers within market lead times.

我們為數位轉型策略奠定了重要基礎，在服務系統領域取得了進展，並投資了企業績效管理軟體。在我們的工廠中，我們進一步優化製造和現場履行流程的運營，以在市場交貨時間內為客戶提供服務。

These accomplishments serve as evidence of the success of the actions taken over the last 18 months to capture and leverage lessons learned from challenging business conditions to improve our customers' experiences, to increase our profitability, and to optimize working capital levels. The results also testifies to the resiliency and strength of Daktronics teams to execute our strategy of capturing demand in diverse markets and creating differentiation by innovating across technology platforms.

這些成就證明了過去 18 個月所採取的行動取得了成功，這些行動旨在捕捉和利用從充滿挑戰的業務條件中吸取的經驗教訓，以改善客戶體驗、提高盈利能力並優化營運資本水平。結果也證明了達科團隊的彈性和實力，以執行我們捕捉不同市場需求並透過跨技術平台創新創造差異化的策略。

I invite you to turn to slide 4, titled fiscal fourth quarter 2024 highlights to follow the fourth quarter's financial outcomes. Our quarterly performance was terrific, particularly in comparison to last year's growth and was a great end to a great year. Our teams continued with strong performance and we exceeded the outlook we described last quarter. In the fourth quarter, we were able to fulfill multiple sports related projects as teams ready for summer and fall sports. In fiscal Q4, we generated sales volume of $216 million, a 2.9% growth from last year. Full year sales grew 8.5% for the year. The robust increases are attributable to our drive to capture a greater share of our SAM.

我邀請您翻到投影片 4，標題為“2024 年第四季財報亮點”，以了解第四季度的財務表現。我們的季度業績非常出色，特別是與去年的成長相比，這為美好的一年畫上了圓滿的句號。我們的團隊繼續保持強勁的表現，超越了上季描述的前景。在第四季度，我們作為團隊為夏季和秋季運動做好了準備，完成了多個與運動相關的項目。第四財季，我們的銷售額達到 2.16 億美元，比去年成長 2.9%。全年銷售額成長 8.5%。強勁的成長歸功於我們努力爭取更大的 SAM 份額。

Operating income was up over four times fiscal 2023, and we generated over $63 million in cash flow from operations. We continue to efficiently decrease backlog from last year's built-up levels as we recognize the anniversary of the resolution of many supply chain challenges and utilized our capacity to deliver customer orders at market expected lead times.

2023 財年營業收入成長了四倍多，我們的營運現金流超過 6,300 萬美元。由於我們認識到解決許多供應鏈挑戰的周年紀念日，並利用我們的能力在市場預期的交貨時間內交付客戶訂單，因此我們繼續有效地減少去年的積壓水平。

As we primarily compete with companies that obtain their products from China and compete on price, we continue to evaluate our price position in the market and carefully consider pricing adjustments to achieve our order attainment goals at profitable levels. Given our results to date this year and the momentum in order flow, we feel good about our positioning to drive profitable growth and cash flow generation into fiscal 2025 and beyond.

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，因此我們將繼續評估我們在市場上的價格地位，並仔細考慮定價調整，以在盈利水平上實現我們的訂單達成目標。鑑於我們今年迄今的業績以及訂單流的勢頭，我們對自己在 2025 財年及以後推動盈利增長和現金流生成的定位感到滿意。

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

有關本季度和年度財務業績的更多詳細信息，我現在將其交給 Sheila。

Thank you, Reece. Please turn your attention to slide number 5 FQ4 FY 2024 financial highlights for the quarterly overview. The quarter over quarter comparisons in this slide and related discussion, our outlook, and for fiscal quarters ended April 27, 2024, and April 29, 2023, unless stated otherwise.

謝謝你，里斯。請關注第 5 號投影片 2024 財年第四季的財務摘要，以了解季度概覽。除非另有說明，本投影片和相關討論中的季度環比比較、我們的展望以及截至 2024 年 4 月 27 日和 2023 年 4 月 29 日的財政季度。

Orders increased by 14.6%, primarily driven by strengthening in live events and international business unit orders, strong demand in the live events business unit with the result of success in capturing SAM from projects for colleges and universities. International orders are starting to rebound as some stability and economic improvement has increased customers' desires to move forward on projects.

訂單成長 14.6%，主要是由於現場活動和國際業務部門訂單的增加、現場活動業務部門的強勁需求以及成功從高校項目中獲取 SAM 的推動。由於穩定和經濟改善增加了客戶推進專案的願望，國際訂單開始反彈。

Our commercial business unit continues to see softness in large projects, and there was some slowing in the high school park and recreation and transportation business units in the quarterly comparison. We generated sales of $216 million for the fourth quarter of fiscal 2024 as compared to $210 million last year. This 2.9% increase in sales volume is the result of fulfilling college and university orders and live events, transportation order delivery, a solid win rate, and on-time deliveries. This was somewhat offset by a sales decline in international.

我們的商業業務部門的大型項目繼續疲軟，並且在季度比較中，高中公園以及娛樂和交通業務部門的成長有所放緩。 2024 財年第四季度，我們的銷售額為 2.16 億美元，而去年為 2.10 億美元。銷售量成長 2.9% 是由於履行學院和大學訂單和現場活動、運輸訂單交付、穩定的獲勝率和準時交付的結果。這在一定程度上被國際銷售下降所抵消。

Gross margin as a percent of net sales increased to 25.7% as compared to 24.8% in the fourth quarter of fiscal 2023. The increase in gross profit percentage is attributable to our strategic focus on profitable markets and projects, manufacturing efficiencies, and stability in our diversified supply chain.

毛利率佔淨銷售額的百分比上升至 25.7%，而 2023 財年第四季為 24.8%。的供應鏈。

Operating margin was 9% of sales as compared to last year's 8.7%, Fiscal 2024's fourth quarter positive operating margin rate is attributable to our continued careful management of operating expenses while investing in our digital transformation and product innovation.

營業利益率為銷售額的 9%，而去年為 8.7%，2024 財年第四季的正營業利潤率歸功於我們在投資於數位轉型和產品創新的同時，持續謹慎管理營業費用。

Please turn to slide 6 for the highlights year to date performance. The year over year comparison, this slide and related discussion are as of and for fiscal years ended April 27, 2024, and April 29, 2023, unless otherwise stated. For the year, orders were up $59 million or 8.7% as compared to the prior year. Order volume growth is attributable to a stable macroeconomic environment in North America to the continued use and market adoption of digital display technology and to our success in capturing existing and new customers orders for larger project-based sports and transportation business.

請參閱投影片 6，了解今年迄今的業績亮點。除非另有說明，本投影片和相關討論的同比比較數據截至 2024 年 4 月 27 日和 2023 年 4 月 29 日結束的財政年度。今年訂單量比上年增加 5,900 萬美元，即 8.7%。訂單量的成長歸因於北美穩定的宏觀經濟環境、數位顯示技術的持續使用和市場採用以及我們成功地為基於專案的大型體育和運輸業務贏得了現有和新客戶的訂單。

As we are a project-based business, large-sized project orders can impact levels of orders. During fiscal 2024, fewer large sized projects were booked to orders in commercial and international as there were fewer larger projects available in the marketplace this past year. However, we believe our market share held.

由於我們是一家以專案為基礎的企業，大型專案訂單可能會影響訂單水準。 2024 財年，由於去年市場上可用的大型項目較少，商業和國際訂單中的大型項目較少。然而，我們相信我們的市場份額仍然存在。

For the year, sales increased $64 million or 8.5% due to the stable operating environments and supply chain combined with our past investments in capacity. We continue to invest in operating improvements to offer sustainable utilization of our capacity. These conditions resulted in more efficient fulfillment processes and a return to market expected lead times and paired with the strong order volume resulted in growth of net sales.

由於穩定的營運環境和供應鏈，加上我們過去的產能投資，今年銷售額成長了 6,400 萬美元，即 8.5%。我們持續投資於營運改進，以實現產能的永續利用。這些條件導致了更有效率的履行流程和返回市場的預期交貨時間，再加上強勁的訂單量，導致了淨銷售額的成長。

For the year, gross margins improved to 27.2% as compared to 20.1%. This gross margin percentage increase is attributable to continuing strategic pricing actions, the record sales volume over fixed manufacturing cost structure, stabilization of input costs, and fewer supply chain and operational disruptions during fiscal 2024 as compared to during fiscal 2023.

今年毛利率從 20.1% 提高至 27.2%。毛利率百分比的成長歸因於持續的策略定價行動、固定製造成本結構的創紀錄銷售、投入成本的穩定性以及與 2023 財年相比，2024 財年供應鏈和營運中斷較少。

Please note that all expense lines increase for executive variable compensation and employee profit-sharing achieved because of our operating margin level attainment during fiscal 2024. These expenses totaled $6.4 million, of which $3 million was recorded in cost of sales, $1.2 million in selling, $1.4 million in general and administrative expenses, and $0.8 million in product design and development.

請注意，由於我們在2024 財年實現了營業利潤水平，因此高階主管可變薪酬和員工利潤分享的所有費用項目都會增加。萬美元記錄在銷售成本中， 140 萬美元用於一般管理費用，80 萬美元用於產品設計和開發。

After investing in operational areas, margin base compensation related expenses and organic growth the resulting operating margin was 10.6% of sales in fiscal 2024 as compared to last year's 2.8% or 3.4% of goodwill impairment [removed] from the calculation. It is a non-GAAP metric, but helpful to compare the improvements.

在投資營運領域、利潤基礎補償相關費用和有機成長之後，2024 財年的營運利潤率為銷售額的 10.6%，而去年的商譽減損（從計算中刪除）為 2.8% 或 3.4%。這是一個非 GAAP 指標，但有助於比較改進。

We strengthened the company's balance sheet during the year end quarter. Our cash position at year end was $81.7 million compared to $24.7 million, with the increase of $63 million due to cash flow generation from the profitable year and efficient management of working capital and $15 million from debt net. We used $21 million for investments in property and equipment and our investments in affiliates, restricted cash, and marketable securities totaled $81.7 million at the end of the year. Debt at fair value was $53 million. Our working capital ratio improved during the year. At fourth quarter end, the ratio was 2.1:1 as compared to 1.6:1 last year. Now I'll turn it over to Reece.

我們在年末季度加強了公司的資產負債表。我們年末的現金部位為 8,170 萬美元，去年為 2,470 萬美元，增加了 6,300 萬美元，這是由於盈利年度產生的現金流和營運資金的有效管理以及債務淨額增加了 1,500 萬美元。截至年底，我們使用 2,100 萬美元用於財產和設備投資，對附屬公司、限制性現金和有價證券的投資總額為 8,170 萬美元。以公允價值計算的債務為 5,300 萬美元。年內我們的營運資金比率有所改善。截至第四季末，該比例為 2.1:1，而去年為 1.6:1。現在我將把它交給里斯。

Thanks, Sheila. Please reference slide 7 titled market verticals update. Our mission is to support our customers as they inform, entertain, and persuade their customers and audiences. Let us look more specifically into our business areas.

謝謝，希拉。請參考標題為「市場垂直更新」的投影片 7。我們的使命是在客戶告知、娛樂和說服客戶和受眾時為他們提供支援。讓我們更具體地看看我們的業務領域。

In live events during the quarter, we completed the Detroit Tigers project along with a number of other college and university projects. We expect live events demand to remain strong as venues enhanced facilities to entertain fans and attract athletes. We see this trend continuing and more focus being placed on entertainment areas and the experience outside the ball in places like entry ways, atriums, concourses, and adjacent entertainment areas. Our Narrow Pixel Pitch line of products match the needs of customers for these places.

在本季的現場活動中，我們完成了底特律老虎隊計畫以及許多其他學院和大學計畫。我們預計，隨著場館增強設施以娛樂球迷和吸引運動員，現場賽事需求將保持強勁。我們看到這種趨勢仍在持續，人們更加關注娛樂區域以及球外入口、中庭、大廳和鄰近娛樂區域等地方的體驗。我們的窄像素間距產品線滿足了這些場所客戶的需求。

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. This market is also sensitive to the large national advertisers spending decisions, which is why we also focus on winning other independent billboard sales and have seen important increases in this market vertical over the last year. We continue to innovate and provide competitive differentiation in the marketplace to reach the needs of our customers.

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。該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，並在去年看到該垂直市場的顯著成長。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。

We continue to build out our AV integrator network to market our Narrow Pixel Pitch product lines, especially in control room applications used by military, utility, and transportation agencies. To date, we have installed 131 displays on 43 different bases globally. And in FY 2024, the American Transmission Company in Wisconsin purchased two large screens, one 8.5 feet high by 86 feet wide, and another 6.5 feet high by 52 feet wide.

我們繼續建立我們的視音頻整合商網路來行銷我們的窄像素間距產品線，特別是在軍事、公用事業和運輸機構使用的控制室應用中。迄今為止，我們已在全球 43 個不同基地安裝了 131 台顯示器。 2024 財年，威斯康辛州的美國傳輸公司購買了兩個大螢幕，一個高 8.5 英尺，寬 86 英尺，另一個高 6.5 英尺，寬 52 英尺。

In transportation, our teams are focused on winning projects for intelligent transportation systems, airport projects, and other mass transit systems projects. Other highlights of our Q4 performance include orders from Texas and North Carolina, Department of Transportation's, as well as an order from Southwest Airlines.

在交通運輸領域，我們的團隊專注於贏得智慧交通系統、機場專案和其他公共交通系統專案的專案。我們第四季度業績的其他亮點包括來自德克薩斯州和北卡羅來納州交通部的訂單以及來自西南航空的訂單。

International: during the quarter, we won a stadium project for orders for -- and orders for transportation areas, a stronger finish to a year in which orders were slow, which we believe is due to economic and geopolitical uncertainty. Customers continue to demonstrate interest in projects but have been delaying buying decisions. Our sales teams continue to be responsive to customers and are actively quoting opportunities, and we are starting to see signs of more quotes converting into orders.

國際：本季度，我們贏得了體育場項目的訂單以及交通領域的訂單，為訂單緩慢的一年帶來了強勁的收官，我們認為這是由於經濟和地緣政治的不確定性。客戶繼續表現出對專案的興趣，但一直在推遲購買決定。我們的銷售團隊繼續回應客戶並積極報價機會，我們開始看到更多報價轉換為訂單的跡象。

High schools: the trend going forward in this end market continues to be a conversion to full video. In fiscal 2022, our sales were $112 million in this market and have grown to $170 million in fiscal 2024. We are well positioned to meet this demand and believe we are in the early stages of that transition. We are looking to speed up and simplify the sales processes and increase our market reach by deploying sales strategies to make certain items able to be purchased online.

高中：這一終端市場的未來趨勢仍然是向完整視訊的轉換。 2022 財年，我們在該市場的銷售額為 1.12 億美元，並在 2024 財年增長至 1.7 億美元。我們希望透過部署銷售策略使某些商品能夠在線上購買來加快和簡化銷售流程並擴大我們的市場覆蓋範圍。

We also continue to develop our e-sales channel, and these efforts are going well so we are continuing to offer more products through these online and partner channels and have improved systems to make the buying process more efficient.

我們也繼續開發我們的電子銷售管道，這些努力進展順利，因此我們將繼續透過這些線上和合作夥伴管道提供更多產品，並改進系統以使購買流程更加高效。

Our customers use our control capabilities to create, manage, and schedule content for engagement with fans and audiences. We continue to make progress in our multiyear strategy to create more capabilities to aid in the service and maintenance of our systems and plan to upgrade our solutions by the end of the calendar year as well as continually add to the feature set of our cloud-based and locally hosted system.

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。我們繼續在多年策略中取得進展，以創建更多功能來幫助我們的系統服務和維護，並計劃在今年年底之前升級我們的解決方案，並不斷添加基於雲端的功能集和本地託管系統。

For example, we recently launched a four-output media player that is compatible with our Venus Control Suite, a cloud-based software, our displays use, which improves our control features. These capabilities are increasingly offered through software as a service, and we are investing in people and capabilities to grow these higher margin and less capital-intensive opportunities.

例如，我們最近推出了一款四輸出媒體播放器，它與我們的維納斯控制套件（一種基於雲端的軟體）相容，我們的顯示器使用它，從而改進了我們的控制功能。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，以增加這些更高利潤和資本密集度較低的機會。

Turning to slide 8, titled FY 2025 strategic priorities. Overall, we have a unique leadership position in our target markets, which are large, growing, and enjoy resilient demand, driven by our customers' desire to improve their audience experience in sports, commercial, and transportation environments. Based on our accomplishments in fiscal 2024, we are implementing a set of initiatives in fiscal '25 to continue to drive future revenue growth and returns. We are not done with our efforts to enhance the return on invested capital that our business can deliver.

轉向投影片 8，標題為 2025 財年策略重點。總體而言，我們在目標市場中擁有獨特的領導地位，這些市場規模龐大、不斷增長，並且在客戶改善體育、商業和交通環境中的觀眾體驗的願望的推動下，需求具有彈性。基於我們在 2024 財年的成就，我們正在 25 財年實施一系列舉措，以繼續推動未來的營收成長和回報。我們為提高業務所能提供的投資資本回報率所做的努力還沒有結束。

As highlighted in our press release, we are focused on different initiatives and priorities on a backbone of commitment to improve our return on capital and consistently earn returns above our cost of capital. These priorities include, taking the next steps in our digital transformation to enhance our internal systems. These include modernizing our field service systems, enterprise performance management tools, and automating quoting and sales processes.

正如我們在新聞稿中所強調的那樣，我們專注於不同的舉措和優先事項，致力於提高我們的資本回報率並持續賺取高於資本成本的回報。這些優先事項包括採取數位轉型的後續步驟來增強我們的內部系統。其中包括現代化我們的現場服務系統、企業績效管理工具以及自動化報價和銷售流程。

Our digital transformation will provide greater insights into our business and end markets, allowing us to continue to guide our investments to our most profitable business segments and to pursue growth through expanding our share of these customers' spend.

我們的數位轉型將為我們的業務和終端市場提供更深入的洞察，使我們能夠繼續將投資引導到利潤最高的業務領域，並透過擴大在這些客戶支出中的份額來追求成長。

Our second initiative is to continue to further penetrate our addressable markets through innovation, allocating resources, and capital to our most profitable opportunities and adding professional services, control systems, and other content to drive MRR, ensuring we are driving returns as we help our customers achieve success on their investment in our offerings.

我們的第二項措施是繼續透過創新進一步滲透我們的目標市場，將資源和資本分配給我們最有利可圖的機會，並添加專業服務、控制系統和其他內容來推動MRR，確保我們在幫助客戶的同時推動回報他們對我們產品的投資取得了成功。

Third, we are taking steps in parallel to lower our overall cost to operate the business and increase market competitiveness. This includes increasing the flexibility of our capacity and our plant manufacturing allocation and utilization, adjusting our production and capabilities to smoothly manage order flow, and boost operational effectiveness.

第三，我們正在同時採取措施降低業務營運的整體成本並提高市場競爭力。這包括提高我們的產能以及工廠製造分配和利用率的靈活性，調整我們的生產和能力以順利管理訂單流並提高營運效率。

With these initiatives, we will continue to advance many existing elements of our strategy and our competitive differentiation, including our premium value proposition; our US design, fulfillment, and high-touch services; our key investments and control systems; and our unique culture of lifetime service to our customers. We will keep you apprised of our progress as we implement our strategies and move through the year.

透過這些舉措，我們將繼續推動我們策略和競爭差異化的許多現有要素，包括我們的優質價值主張；我們的美國設計、履行和高接觸服務；我們的主要投資和控制系統；以及我們為客戶提供終身服務的獨特文化。我們將隨時向您通報我們實施策略和全年進展的進展。

In conclusion, our summaries on slide 9 recaps our key highlights. Fiscal 2024 was a terrific year, and our results demonstrate that our teams have built the foundation for a resilient business model and overcame the challenges caused by the constrained supply chain and other impacts from the pandemic. We are focused on a multiyear journey to drive our profitable growth and are committed to consistently earning returns above our cost of capital.

總之，我們在投影片 9 上的總結回顧了我們的主要亮點。 2024 財年是了不起的一年，我們的表現表明，我們的團隊已經為彈性業務模式奠定了基礎，並克服了供應鏈受限和疫情其他影響帶來的挑戰。我們專注於推動獲利成長的多年旅程，並致力於持續獲得高於資本成本的回報。

These strategies include focus on allocating resources to capture the growth in our existing SAM and develop growth in other areas, and are poised for durable revenue, earnings, and cash flow generation. We seek to utilize our position as a global industry leader in best-in-class video communication systems to grow profitably.

這些策略包括重點分配資源，以抓住我們現有 SAM 的成長並發展其他領域的成長，並為持久的收入、利潤和現金流創造做好準備。我們尋求利用我們作為一流視訊通訊系統全球行業領導者的地位來實現盈利增長。

We are differentiated from our competitors by our US base, our global footprint, our technology leadership, the high quality of our solutions, our large, entrenched customer base, and our services. We are extending our technology leadership in high-quality, high-touch solutions, serving our large, demand-resilient, growing markets. 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 our year.

我們與競爭對手的區別在於我們的美國基地、全球足跡、技術領先地位、高品質的解決方案、龐大且根深蒂固的客戶群以及我們的服務。我們正在擴大我們在高品質、高接觸性解決方案方面的技術領先地位，為我們龐大的、需求彈性大的、不斷增長的市場提供服務。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.

有了這個，我會請接線生打開電話詢問問題。

(Operator Instructions)

（操作員說明）

BJ Cook, Singular Research.

BJ Cook，奇異研究公司。

Hey guys, great quarter, and thanks for taking my call. But just a couple of questions. You're targeting some recurring revenue opportunities in control systems and content. I just kind of curious, are you marketing these services to new orders going out at existing customers and projects that are on the market now? And would you expect that over time to be meaningful part of the business?

嘿夥計們，很棒的季度，感謝您接聽我的電話。但只有幾個問題。您的目標是控制系統和內容中的一些經常性收入機會。我只是有點好奇，您是否正在向現有客戶和市場上現有項目的新訂單推銷這些服務？您是否希望隨著時間的推移，這將成為業務中有意義的一部分？

BJ, thanks for joining us on today's call, and I appreciate the question. Yes, to all of that, I guess is the answer. The services we offer are especially important as a new customer takes on a system and grow as their capability to them operate program, understand what they're trying to accomplish with their systems. And that is in sports, that is in commercial, that is in transportation.

BJ，感謝您參加今天的電話會議，我很高興提出這個問題。是的，我想這就是所有這些的答案。我們提供的服務對於新客戶使用系統並隨著他們操作程序的能力的增長、了解他們試圖透過系統實現什麼目標而成長尤其重要。那是在體育領域，那是在商業領域，那是在交通領域。

And then as they get through their first year in subsequent years, they often benefit from refreshing and there's a changeover and staffing off and so that future years is a continual opportunity to sell different services. And the displays themselves are often up projected to last 10 years or sometimes more, but the control capability, computers run at a different cycle. So there's often a desire to refresh the software capabilities and in systems where we provide dedicated on-site processing the computer systems, sometimes in year three and sometimes in year five as they go through the system lifecycle.

然後，當他們在接下來的幾年中度過第一年時，他們通常會從更新、人員變動和人員配置中受益，因此未來幾年是銷售不同服務的持續機會。顯示器本身的使用壽命通常預計可達 10 年甚至更長，但控制能力、電腦的運作週期卻不同。因此，人們經常希望更新軟體功能和系統，我們為電腦系統提供專門的現場處理，有時在第三年，有時在第五年，因為它們經歷了系統生命週期。

I got you. That makes sense. You highlighted a couple, new military shipments in products there. I guess typically the military thing was -- it's a big deal just to get in the area of certifications, get to kind of know somebody. I'm just wondering if these are -- kind of went through that process or they do customers and would you expect that to be kind of that opportunity to expand into more military business?

我接到你了。這就說得通了。您重點介紹了那裡的一些新的軍用產品。我想通常軍事方面的事情是──進入認證領域、了解某人就很重要了。我只是想知道這些是否經歷過這個過程，或者他們是客戶，您是否認為這是擴展到更多軍事業務的機會？

But we see the military business is very good. We have a differentiated product line with Made in America control system and control path as well as modules and displays. And we partner with AV system integrators that are focused on that market and provide what you described these kind of special requirements to even get on a base plus many of the other elements that go around to display to make one of these spaces successful.

但我們看到軍事業務非常好。我們擁有美國製造的控制系統和控制路徑以及模組和顯示器的差異化產品線。我們與專注於該市場的視音頻系統整合商合作，並提供您所描述的這些特殊要求，甚至可以建立一個基地，以及周圍展示的許多其他元素，以使這些空間之一取得成功。

And this product, we have, the Narrow Pixel Pitch product is increasingly what they go to replace LCD or projection type of technologies. And it unlocks uses that they previously maybe desire to have something, but the technology was just not quite right. And so we see that all of those are potentials for this kind of Narrow Pixel Pitch product for military and really other applications and control centers and elsewhere.

我們擁有的這款產品，即窄像素間距產品，越來越多地取代 LCD 或投影類型的技術。它解鎖了他們以前可能渴望擁有的東西的用途，但技術並不完全正確。因此，我們看到所有這些都是這種窄像素間距產品在軍事和其他應用以及控制中心和其他地方的潛力。

Okay. Thanks a lot, guys. Appreciate it.

好的。非常感謝，夥計們。欣賞它。

Thank you, BJ.

謝謝你，BJ。

Anja Soderstrom, Sidoti.

安雅·索德斯特羅姆，西多蒂。

Hi. Thank you for taking my question and congratulations on the strong quarter. I'm curious about the new flip-chip, has that been received? And what can we expect in potential contribution in terms of revenue and margins from that?

你好。感謝您提出我的問題，並祝賀本季的強勁表現。我很好奇新的倒裝晶片，收到了嗎？我們可以期望由此帶來的收入和利潤的潛在貢獻是什麼？

Thank you, Anja, for attending the call. We are very excited about this Chip On Board that's enabled partially through this flip-chip technology and it provides a really a lot of enhancements in our NPP product line. Oftentimes, we use that as a at a higher pixel picture or a tighter resolution. We use it. It's more rugged and durable. So it's more friendly. If somebody can now reach out and touch the face. It has a very high contrast. So it responds well in high-brightness sorts of situations. So we've seen a high receptivity to this product line in our customer base and our partner channels.

安雅，謝謝您參加電話會議。我們對這種板載晶片感到非常興奮，它部分是透過倒裝晶片技術實現的，它為我們的核電廠產品線提供了許多增強功能。通常，我們將其用作更高像素或更高解析度的圖片。我們用它。它更加堅固耐用。所以更加友善。如果有人現在可以伸出手來觸摸他的臉。它具有非常高的對比度。因此它在高亮度的情況下反應良好。因此，我們發現我們的客戶群和合作夥伴管道對該產品線有很高的接受度。

As far as a prediction on impact on profitability or revenue, may be it's too soon for us to estimate that.

至於對獲利能力或收入的影響的預測，我們現在估計可能還為時過早。

Okay. Thank you. And I have a follow-up on the return revenue question. Is that a higher margin, then the overall?

好的。謝謝。我有一個關於退貨收入問題的後續行動。利潤率是否比整體利潤率更高？

It is at a higher margin and it adds significantly to our customer satisfaction, which we think it increases the likelihood they'll buy from us again. As of today, it's a smaller portion of our overall revenue, but we think it's an exciting area and there's room to grow in the future.

它的利潤率更高，並且顯著提高了我們的客戶滿意度，我們認為這增加了他們再次從我們這裡購買的可能性。截至今天，它只占我們總收入的一小部分，但我們認為這是一個令人興奮的領域，未來還有成長的空間。

Okay. And what are you thinking in an international markets. It seems like the orders were increasing there at least?

好的。您在國際市場上有什麼想法？看起來至少那裡的訂單在增加？

We're hopeful that the geopolitical situation across the world will be less dynamic in the coming years. And it appears that the market is picking up. We still and we've had considerable interest during these times, but as described, it was hard to get that interest to convert into orders. But in the last few months, we've been seeing increasing indications that that's easier and easier. So we're hopeful that the international market will continue to pull out of the situation that it's in.

我們希望未來幾年世界各地的地緣政治局勢不要那麼不穩定。市場似乎正在回升。在這些時期我們仍然抱有相當大的興趣，但正如所描述的，很難將這種興趣轉化為訂單。但在過去的幾個月裡，我們看到越來越多的跡象表明這變得越來越容易。因此，我們希望國際市場能夠繼續擺脫目前的困境。

Overall, we're very excited about our international markets. A lot of this, the buying -- thinking from those customers is similar to what we have in the US and our market share is relatively small internationally, allowing us room to grow in those areas as well as we've invested a lot in the sales, service, and fulfillment teams, and we believe we can handle growth with our current footprint.

總的來說，我們對國際市場感到非常興奮。其中很多，這些客戶的購買想法與我們在美國的情況相似，而且我們的國際市場份額相對較小，這使我們在這些領域有增長的空間，並且我們在這些領域投入了大量資金。和履行團隊，我們相信我們能夠以目前的規模應對成長。

Okay. Thank you. That was all for me.

好的。謝謝。這就是我的全部。

Thank you.

謝謝。

Thank you. I am showing no further questions at this time. I would now like to turn the call back over to Reece Kurtenbach for any closing.

謝謝。我目前沒有提出任何進一步的問題。我現在想將電話轉回里斯·庫爾滕巴赫 (Reece Kurtenbach) 進行結束。

Yeah. Thank you, everyone, for attending today's conference. Appreciate the questions, and we'll see you in a few months when we have our first quarter earnings call. I hope you all have a great summer and we'll see you later in the early fall. Bye-bye.

是的。謝謝大家參加今天的會議。感謝您提出的問題，我們將在幾個月後召開第一季財報電話會議時與您見面。我希望大家度過一個愉快的夏天，我們將在初秋再見。再見。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。