Daktronics Inc (DAKT) 2025 Q2 法說會逐字稿

Good day, ladies and gentlemen, and.

女士們、先生們、大家好。

Thank you for standing by.

感謝您的支持。

Welcome to the Daktronics second quarter, fiscal year 2025 financial results conference call.

歡迎參加達科電子2025財年第二季財務業績電話會議。

(Operator Instructions)

（操作員指令）

At this time, I would like to turn the conference over to Ms. Carla Gatzke, you may begin.

現在，我想將會議交給卡拉·加茨克女士，您可以開始了。

Thank you, Howard.

謝謝你，霍華德。

Good morning, everyone.

大家早安。

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

感謝您參加我們的第二季財報電話會議。

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

我想審查一下我們的披露信息，提醒投資者和參與者，除了歷史事實陳述之外，我們還將討論前瞻性陳述，反映我們對未來財務業績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 risk and uncertainties which could cause actual results to differ materially from our expectations.

這些前瞻性陳述反映了公司對未來事件的期望或信念，所有前瞻性陳述都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。

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 margins.

這些風險包括但不限於經濟和市場條件的變化、成長管理、未來合約的時間和規模以及訂單利潤的波動。

The introduction of new products and technology availability and costs of raw materials, components and shipping services, geopolitical and governmental actions and other important factors.

新產品和技術的推出、原材料、零件和航運服務的可用性和成本、地緣政治和政府行動等重要因素。

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 second quarter, 2025 quarterly earnings release and its most recent annual report on Form 10-K

在該公司 2025 年第二季的季度收益報告和最新的 10-K 表年度報告中

our second quarter, 2025 earnings release contain certain non-GAAP financial measures and was furnished to the SEC, the Securities and Exchange Commission on a Form 8-K this morning.

我們的 2025 年第二季財報包含某些非 GAAP 財務指標，並於今天早上以 8-K 表格的形式提交給美國證券交易委員會 (SEC)。

We also made slides available for today's call and all of these documents are available on the Investors section at Daktronics website, www.daktronics.com.

我們也為今天的電話會議提供了幻燈片，所有這些文件都可以在達科電子網站 www.daktronics.com 的投資者部分找到。

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

我將把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。

I appreciate all you joining us today, we demonstrated our continued strong execution towards driving growth and returns above our cost of capital, again this quarter, we achieved sales growth in the first half of our fiscal year, typically the highest seasonal period and a record in a quarter for cash generation which illustrates our disciplined management of working capital on the quarter sales growth and further strengthens our balance sheet positioning U.S. to well as

感謝大家今天加入我們，我們展示了我們持續強勁的執行力，推動增長和高於資本成本的回報，本季度，我們再次實現了上半年財報的銷售增長，這通常是季節性增長最高的時期，也是創紀錄的季度現金產生量，顯示我們對營運資本進行了嚴格的管理，促進了季度銷售成長，並進一步加強了我們的資產負債表定位，包括美國和

we look into the future, as you can see on our slide presentation on page 3 fiscal second quarter -- 2025 highlights we delivered great value to our customers with tight efficiencies and cost reductions in our manufacturing areas and consistently meeting project deadlines during the quarter all while driving forward our strategic and digital transformations.

我們展望未來，正如您在第3 頁幻燈片演示中看到的，2025 年第二財季的亮點是我們通過提高效率和降低製造領域的成本，以及在整個季度始終如一地滿足項目期限，為客戶帶來了巨大的價值。

During the quarter, we completed innovative and visually striking installations at the L.A. Clippers' Intuit Dome, the Miami Heat's Kaseya Center, numerous college and high school sporting facilities and upgraded many commercial locations to the latest digital technologies.

在本季度，我們在洛杉磯快艇隊的 Intuit Dome、邁阿密熱火隊的 Kaseya 中心以及眾多大學和高中體育設施完成了創新且具有視覺衝擊力的安裝，並將許多商業場所升級為最新的數位技術。

Our sales growth and careful working capital management drove cash flows from operations of $43.3 million for the fiscal second quarter and $62.8 million for the first half of the year.

我們的銷售成長和謹慎的營運資本管理推動第二財季的營運現金流達到 4,330 萬美元，上半年的營運現金流達到 6,280 萬美元。

Additionally, we made strong progress along our stated digital transformation road map with work toward the launch of our enterprise performance management tools and upgrades of our service and systems maintenance solutions set to go live as planned in the second half of the fiscal year.

此外，我們在既定的數位轉型路線圖上取得了長足進展，致力於推出企業績效管理工具併升級我們的服務和系統維護解決方案，並將按計劃於財年下半年上線。

In addition, we are working to enhance and add new show control capabilities.

此外，我們正在致力於增強和增加新的節目控制功能。

Our show control software solution provides dynamic seamless and fully immersive game day and event production.

我們的表演控制軟體解決方案提供動態無縫且完全沉浸式的比賽日和活動製作。

It is really exciting to see the first ever flame ball center hung installation at the Miami Heat Building.

看到邁阿密熱火隊大樓內首次安裝火焰球中心確實令人興奮。

First of its kind creations using LED technology is something that drives our company forward and excites our employees bringing this iconic sculpture to life for the Miami Heat.

首次使用 LED 技術進行創作，推動了我們公司向前發展，並激勵我們的員工為邁阿密熱火隊將這個標誌性的雕塑變為現實。

The Kaseya Center and their audiences is a great engineering feat that we are proud to have accomplished we look forward to providing other customers, similar types of creations to amaze their fans and audiences.

Kaseya 中心及其觀眾是一項偉大的工程壯舉，我們對此感到自豪，我們期待為其他客戶提供類似的創作，以讓他們的粉絲和觀眾驚嘆。

In addition to the record generation of cash, we delivered a solid quarter and first half year of financial performance growing revenue 4.5% to $208 million at 26.8% gross margins and earning a 9.2% adjusted operating margin for the quarter backlog is at $236 million declining as planned as we move into our seasonally lower volume, third quarter.

除了創紀錄的現金產生之外，我們上季和上半年的財務業績表現穩健，營收成長4.5%，達到2.08 億美元，毛利率為26.8%，本季調整後營業利潤率為9.2%，積壓訂單為2.36 億美元，下降正如計劃的那樣，我們進入了季節性銷量較低的第三季。

As you will recall, our third quarter is historically lower because fall sports installations have been completed.

您可能還記得，我們​​的第三季歷史上較低，因為秋季運動設施已經完成。

There is a natural slowdown of outdoor construction projects, and we have two major holidays in the period, reducing the overall days of production because of these dynamics and the reality, many of our costs are more fixed in the near-term operating margins are often lower in our fiscal third quarter.

戶外建築專案自然放緩，而且在此期間我們有兩個主要假期，由於這些動態和現實，我們的許多成本在短期內更加固定，因此總體生產天數減少，營業利潤率往往我們第三財季的業績較低。

The management team activates different mitigation strategies to reduce costs during this time such as reduction in shifts and utilizers capacity to focus teams on revenue generation and overall improvement activities.

管理團隊啟動不同的緩解策略來降低這段時間內的成本，例如減少輪班和利用能力將團隊重點放在創造收入和整體改善活動上。

Sheila will further discuss financial results later in the call but first, please turn to slide 4 market vertical FQ two review for more details in live events.

希拉 (Sheila) 將在電話會議稍後進一步討論財務結果，但首先，請轉到幻燈片 4 市場垂直 FQ 兩個審查，以獲取現場活動中的更多詳細資訊。

In addition to the installations already highlighted, we completed delivery for several large projects which included center hung video ribbon boards and other cutting-edge displays to provide innovative great game day experiences in various arenas and stadiums.

除了已經重點介紹的安裝之外，我們還完成了幾個大型項目的交付，包括中心懸掛的視頻帶板和其他尖端顯示器，為各個競技場和體育場提供創新的精彩比賽日體驗。

Customers in Trusting Electronics included University of Connecticut, University of Kansas, the LA Lakers crypto.com Arena, Van Handel Boston Convention Center, Philadelphia Phillies, Baylor University and the AAA Charlotte Knights.

Trusting Electronics 的客戶包括康乃狄克大學、堪薩斯大學、洛杉磯湖人隊 crypto.com 球場、範漢德爾波士頓會議中心、費城費城人隊、貝勒大學和 AAA 夏洛特騎士隊。

Our outlook for this segment remains similar to our last call.

我們對這領域的展望與上次預測類似。

We expect live events demand to remain strong as venues, enhance facilities to entertain fans and attract athletes.

我們預計，隨著場館設施的改善、娛樂愛好者和吸引運動員的增加，現場賽事的需求將保持強勁。

Orders in this market are large, and installations can be lengthy and complex and therefore creates variability in period-to-period order and sales volumes.

該市場的訂單量很大，安裝過程可能很長且複雜，因此會造成不同時期的訂單和銷售量變化。

As we plan each for each season, we like in each to a graduating class with each year having a certain number of new systems and potential upgrades or replacements.

當我們為每個季節制定計劃時，我們喜歡將每個季節都變成一個畢業班，每年都有一定數量的新系統和潛在的升級或替換。

Some class sizes are larger or smaller with individual owners or customers determining when their projects will move forward.

有些班級規模較大或較小，由個人業主或客戶決定其專案何時進度。

As we evaluate the current class of available projects in the near term, we now expect spring baseball project orders to be a smaller class as a number of potential upgrades have moved out to future seasons.

當我們評估近期可用的當前項目類別時，我們預計春季棒球項目訂單數量將會減少，因為許多潛在的升級已經轉移到未來的季節。

As we look ahead, we continue to expect healthy demand for in the bowl applications and expansion into outside the bowl as more focus is being placed on entertainment areas, spaces like entryways, atriums, concourses and adjacent entertainment zones.

展望未來，隨著人們越來越關注娛樂區、入口、中庭、大廳和相鄰娛樂區等空間，我們繼續預期碗內應用和碗外擴展的需求將保持強勁。

Our narrow pixel pitch line of products matches the needs of customers for many of these locations and continues to be in demand.

我們的窄像素間距產品線滿足了許多此類場所客戶的需求，並且持續受到歡迎。

Our commercial business primarily consists of sales through resellers, mainly sign companies to many types of customers and applications including military utilities, transportation, national retailers, quick serve restaurants, casinos, shopping centers, cruise ships, commercial building owners, petroleum retailers and other on premise.

我們的商業業務主要包括透過經銷商銷售，主要是簽約公司向許多類型的客戶和應用，包括軍事公用事業、運輸、國家零售商、快餐店、賭場、購物中心、遊輪、商業建築業主、石油零售商和其他前提。

Customers also included in this segment are out of home advertising companies and larger advertising displays called spectaculars.

此部分客戶還包括戶外廣告公司和更大型的廣告展示設備（稱為「spectacles」）。

Orders can vary in this market also because of the larger size orders in these two segments.

由於這兩個領域的訂單規模較大，因此該市場的訂單也會有所不同。

During the quarter, we secured a large project for the center formerly known as the CNN Center in Atlanta which drove the order volume increases.

本季度，我們為亞特蘭大原先的 CNN 中心贏得了一個大型項目，這推動了訂單量的成長。

In addition, out of home orders increased as a result of our continued strategies to promote to independent out of home operators and serve the large national out of home advertisers winning us additional orders.

此外，由於我們持續推行向獨立戶外廣告業者推廣和為全國大型戶外廣告商提供服務的策略，戶外廣告訂單有所增加，為我們贏得了更多訂單。

Our focus for this market is to grow our core areas and 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.

我們對這個市場的重點是發展我們的核心領域，並繼續建立我們的 AV 整合商網絡，以推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領域。

As an example during the quarter, we were successful in a sale of an NPP product through an AV channel for use at the George H.W. Bush library.

舉例來說，本季度，我們成功透過 AV 管道銷售了一款 NPP 產品，供喬治 H.W. 使用。布希圖書館。

This slide also includes a picture of an installation at Quantico Marine Base.

這張投影片還包括匡蒂科海軍陸戰隊基地設施的圖片。

A testament to our focus on the military AV channel and use of NPP products for multiple applications in our transportation market.

這證明了我們專注於軍用 AV 管道以及在運輸市場中將 NPP 產品用於多種應用。

Variability in orders versus prior periods is natural in this segment which is a large project business and therefore lumpy.

由於這一領域是大型專案業務，因此訂單量與前期相比有所波動是很正常的。

Despite the down order comparison, our financial performance for this segment was solid as we fulfilled a backlog of orders from long time repeat customers including one at our Sioux Falls Regional Airport, we continue to see a trend in upgrades in and around airports for digital signage.

儘管訂單量下降，但我們在這一部門的財務表現仍然穩健，因為我們完成了包括蘇福爾斯地區機場在內的長期回頭客的積壓訂單，我們繼續看到機場內部和周邊地區數字標牌升級的趨勢。

Our teams are focused on winning projects for intelligent transportation systems including traffic management centers, airport projects and other mass transit system projects.

我們的團隊專注於贏得智慧交通系統項目，包括交通管理中心、機場項目和其他公共交通系統項目。

The outlook for this segment remains solid and is poised to take advantage of selling our full line of video displays systems from our NPP products to our pre-qualified and trusted ITS systems used by state and city governments

該細分市場的前景仍然穩固，並有望利用我們的全系列視訊顯示系統（從我們的 NPP 產品到州和市政府使用的經過預先認證且值得信賴的 ITS 系統）進行銷售

International.

國際的。

During the quarter, we were awarded a number of contracts in the out of home space in Saudi Arabia and Australia.

本季度，我們在沙烏地阿拉伯和澳洲獲得了多項戶外廣告領域的合約。

While orders continue to be slow as compared to prior years which we believe continues to reflect economic and geopolitical uncertainty.

與前幾年相比，訂單繼續增長緩慢，我們認為這仍然反映了經濟和地緣政治的不確定性。

We are actively quoting opportunities to additional out of home customers and for several midsize sports products and continue to see signs of converting more quotes into orders with our existing customer base and a focus on these types of new orders from a Broadway array of customers.

我們正在積極地為更多的戶外客戶和幾種中型體育產品提供報價機會，並繼續看到將更多報價轉化為現有客戶群的訂單的跡象，並專注於來自百老匯一系列客戶的這些類型的新訂單。

We are laying the groundwork for future repeat and upgrade types of orders in the future.

我們正在為將來的重複和升級類型的訂單奠定基礎。

The picture displayed on this slide is for an MPP product installation in Singapore.

此投影片上顯示的圖片是新加坡的 MPP 產品安裝。

In addition, customers value our product designs tailored specifically to their unique needs as evidenced by a strong response to our Eco-Smart energy savings product which is desired by our energy sensitive customers.

此外，客戶非常重視我們根據他們的獨特需求而客製化的產品設計，這從我們的 Eco-Smart 節能產品受到能源敏感型客戶青睞這款產品的強烈反響就可以看出。

In, High Schools, the market continues to convert to full video usage which drove the increase in orders for the quarter.

在高中，市場繼續轉向全視訊使用，這推動了本季訂單的成長。

We began deliveries of our new higher margin product to not only support our customers but further bolster our contribution margin for this segment.

我們開始交付新的利潤率更高的產品，不僅為了支持我們的客戶，也為了進一步提高我們在這一領域的貢獻利潤率。

The pictured installation at Warren Harding High School in Ohio is one example of the number of high schools upgrading outdoor installations to video displays and increasingly demand has grown for full video usage indoors as well as mentioned a moment ago.

圖中所示的是俄亥俄州沃倫哈丁高中的安裝，是眾多高中將戶外安裝升級為視頻顯示器的一個例子，而且正如剛才提到的，室內全視頻使用的需求也日益增長。

With respect to our show control software, we continue to make progress on.

關於我們的演出控制軟體，我們不斷取得進展。

Our major enhancements of control systems to enhance the live event experience and improve workflow efficiencies.

我們大力改善控制系統，以增強現場活動體驗並提高工作流程效率。

These enhancements will empower our customers to deliver dynamic presentations using cutting edge scoring and timing software, 3D data visualizations, real-time rendering and integrated data through sports specific applications.

這些增強功能將使我們的客戶能夠使用尖端的計分和計時軟體、3D 資料視覺化、即時渲染和整合資料透過特定體育應用程式進行動態演示。

The addressable market for our new solution is broad, including anyone supporting Live Events, entertainment and sports, even if they're not using, Daktronics displays and is slated for release by fiscal year end.

我們的新解決方案的目標市場非常廣泛，包括任何支援現場活動、娛樂和體育的人，即使他們不使用達科電子顯示器，並且計劃在財政年度結束時發布。

Additionally, we are introducing cloud access, allowing customers to schedule, store and manage their content and data sources from anywhere.

此外，我們還推出了雲端訪問，讓客戶可以從任何地方安排、儲存和管理他們的內容和資料來源。

The work that we are doing here success of nicely to increase our recurring revenue streams, which we intend to be a driver for gross margin expansion over time as, Sheila will detail in a moment during the second half of the year, we are set for two major internal technology launches at the core of our digital transformation road map.

我們在這裡所做的工作很好地增加了我們的經常性收入來源，我們打算隨著時間的推移將其作為毛利率擴張的驅動力，正如Sheila 稍後將詳細介紹的那樣，在下半年，我們準備我們數位轉型路線圖的核心是兩項重大內部技術的發布。

These launches are the building blocks of the future foundation for which we will service our customers, measure our performance and manage the overall business.

這些產品的發布是我們未來為客戶提供服務、衡量我們的業績和管理整體業務的基礎。

We'll also continue to develop our overall comprehensive transformation efforts through the rest of the fiscal year.

我們也將在本財年剩餘時間內繼續推動我們的整體綜合轉型工作。

Refining our transformation initiatives and making selected investments in transformational actions designed to drive future years, revenue growth, profitability, and sustainable returns in the mid to upper teams, for ROIC, I will discuss this more after a bit but first for additional details on the financial results for the quarter and the year,

完善我們的轉型舉措，並有選擇地投資於旨在推動未來幾年收入成長、盈利能力和中上層團隊可持續回報的轉型行動，至於投資回報率，我將在稍後進一步討論，但首先要了解有關本季和年度的財務業績，

I'll turn it over to Sheila.

我將把它交給希拉。

Thank you, Reece.

謝謝你，里斯。

I invite you to turn to slide 5 and 6 titled fiscal quarter two and year-to-date fiscal 2025.

請翻到投影片 5 和 6，標題為「2025 財年第二季和年初至今」。

Financial Highlights to follow the second quarter and first half of the year's financial outcomes.

財務要點將聚焦於第二季和今年上半年的財務表現。

The quarter-over-quarter, comparisons in this slide and related discussion are as of and for the quarters ended October 26, 2024, July 27, 2024, and October 28, 2023.

本投影片中的季度環比比較和相關討論均截至 2024 年 10 月 26 日、2024 年 7 月 27 日和 2023 年 10 月 28 日的季度。

Unless otherwise stated order volume for the quarter declined primarily due to the order decreases in live Events, transportation and international business units.

除非另有說明，本季訂單量下降主要是因為現場活動、運輸和國際業務部門的訂單減少。

Variability in orders comparatively is natural in these large project business areas and the time of year for sports projects, these declines were offset by large project bookings in the spectacular area and ended calendar year purchases by our out of home customers in the commercial business unit and were offset by solid growth in the High School parks and recreation business unit.

在這些大型項目業務領域和體育項目年度時間中，訂單的變化相對來說是自然的，這些下降被壯觀地區的大型項目訂單和商業業務部門戶外客戶的年終購買所抵消。部門的穩健成長所抵銷。

Because of the market's adoption towards the use of video displays.

因為市場對視訊顯示器的使用越來越接受。

Orders for the first half of the year increased 3.3% based on the strong return to more normal seasonal trends.

由於季節性趨勢強勁回歸正常，上半年訂單成長了 3.3%。

As compared to prior years.

與前幾年相比。

Product backlog level was $236 million.

產品積壓水準為2.36億美元。

At the end of the quarter, quoting activity remains active across all segments.

截至本季末，所有部門的報價活動依然活躍。

The quarter sales increase was a result of comparatively higher volumes in live Events and Transportation business units offset by lower sales levels in the international business unit.

本季銷售額的成長是由於現場活動和交通運輸業務部門的銷售量相對較高，但國際業務部門的銷售額較低。

Sales in our commercial and High School Park and Recreation business units were relatively flat.

我們的商業和高中公園及娛樂業務部門的銷售額相對持平。

This mixed difference is the result of variability of orders, as describes with the higher levels of sales In Q2 2025 we generated similar sales to last year's record level on a year-to-date comparison, gross profit percentage of net sales decreased slightly to 26.8% for the second quarter of fiscal 2025, as compared to 27.2% a year ago.

這種混合差異是訂單變化的結果，正如銷售額較高水準所描述的那樣。下降，為26.8 % ，而去年同期為 27.2%。

This solid gross profit level is a reflection of volume mix some price improvement and careful management of manufacturing and service fulfillment costs on a year-to-date basis.

這一穩定的毛利水準是年初至今產量組合、價格改善和對製造及服務履行成本的謹慎管理的體現。

Gross profit of 26.6% as compared to 29% is attributable to the sales mix.

毛利為 26.6%，而去年同期為 29%，歸因於銷售組合。

Differences between periods.

不同時期之間的差異。

We continue to generate operating income consistently through the last five quarters.

在過去五個季度中，我們繼續穩定地創造營業收入。

In the high single digits, operating income was 7.6% of sales in Q2.

營業收入為高個位數，佔第二季銷售額的 7.6%。

And as adjusted for one time consulting related expenses was 9.2% on a year-to-date basis was 8.8% or 9.8%.

經調整後的一次性諮詢相關費用為 9.2%，年初至今為 8.8% 或 9.8%。

As adjusted operating expense increases reflected the investments in staffing to support our digital transformation and future sales growth initiatives and salary and wages increases.

調整後的營業費用增加反映了對人員的投資，以支持我們的數位轉型和未來的銷售成長計​​劃以及薪資和薪資的成長。

During the second quarter, we also incurred $3.2 million in non-recurring consulting services to help us implement and accelerate our strategies to grow and drive efficiencies and consistent profitability levels.

在第二季度，我們還花費了 320 萬美元的非經常性諮詢服務來幫助我們實施和加速我們的成長策略並提高效率和持續的獲利水準。

We expect to invest up to 5 to $6 million more during fiscal 2025.

我們預計在 2025 財年將額外投資 500 萬至 600 萬美元。

For the business and digital transformation initiatives.

對於業務和數位轉型計劃。

Our sales growth in careful working capital management drove record cash flows from operations of $43.3 million for the second quarter and $62.8 million for the first half of the year, cash restricted cash and marketable securities totaled $134.4 million at the end of the quarter.

我們在謹慎的營運資本管理下實現了銷售成長，推動了第二季經營現金流達到創紀錄的4,330 萬美元，上半年達到6,280 萬美元，季末的現金限制現金和有價證券總額達到1.344 億美元。

And our working capital grown to $243.7 million with a working capital ratio of 2.3:1.

我們的營運資本成長至 2.437 億美元，營運資本比率為 2.3:1。

Management's focus remains on maintaining the strong balance sheet and on managing working capital through the expected growth of the company.

管理層的重點仍然是維持強勁的資產負債表並透過公司預期的成長來管理營運資金。

As previously announced, we have delivered also fax the notice of conversion of the initial $7 million in face value of the $25 million senior secured line promissory note on November 11, 2024.

如前所述，我們也已於 2024 年 11 月 11 日透過傳真發送了 2,500 萬美元優先擔保額度本票的初始面值 700 萬美元的轉換通知。

With the conversion date of yesterday, December 3, 2024, we intend to convert the remainder of the convertible note over the next several months in tranches of up to $7 million in face value every 30 days.

轉換日期為昨天，即 2024 年 12 月 3 日，我們打算在接下來的幾個月內每 30 天分批轉換可轉換票據的剩餘部分，票面價值最高可達 700 萬美元。

As provided for in the convertible note, the company will deliver shares when also fax certifies, the delivery of shares will not cause its ownership to exceed the maximum percentage currently at 3% and will increase to 14.99% in late January.

根據可轉換債券的規定，該公司將在傳真證明的情況下交付股票，交付股票不會導致其持股比例超過目前 3% 的最高百分比，並將在 1 月底增加到 14.99%。

The conversion when completed will save $5.4 million of interest over the remaining term to offset the share dilution that will result from the conversion of this note into common stock.

轉換完成後將在剩餘期限內節省 540 萬美元的利息，以抵銷將該票據轉換為普通股所導致的股份稀釋。

We intend to execute on our existing share repurchase authorization as soon as practical.

我們打算盡快執行現有的股票回購授權。

Given our financial performance, our view of market growth and our strong positioning in the market and with the strategic initiatives we're undertaking, we are well positioned to drive profitability and cash flow generation through the remainder of fiscal 2025 and beyond.

鑑於我們的財務表現、對市場成長的看法以及我們在市場中的強大地位以及我們正在採取的戰略舉措，我們有能力在 2025 財年剩餘時間及以後推動盈利能力和現金流創造。

Now, please turn to slide 7 titled fiscal Year 2025 Digital Transformation and strategic priorities on the digital transformation front.

現在，請翻到第 7 張投影片，標題為「2025 財年數位轉型和數位轉型的策略重點」。

As we previously discussed, we're investing in foundational enterprise performance management tools that will strengthen our management systems and improve data availability to guide capital allocation decisions and focus our investments in the most profitable business areas.

正如我們之前所討論的，我們正在投資基礎企業績效管理工具，這將加強我們的管理系統並提高數據可用性，以指導資本配置決策並將我們的投資集中在最賺錢的業務領域。

We are on track for our phased implementation of these integrated business planning tools and processes and to achieve the value these tools provide first up is our consolidation and reporting tools.

我們正在分階段實施這些綜合業務規劃工具和流程，而要實現這些工具提供的價值，首先要實現的是我們的合併和報告工具。

Implementation, testing and training has started.

實施、測試和培訓已經開始。

In addition, we made progress on design and data collection of information needed for integrated business planning.

此外，我們在綜合業務規劃所需資訊的設計和資料收集方面也取得了進展。

This configuration data gathering and testing is set to be completed by the end of the fiscal year and utilized beginning fiscal '26 to better align our strategic operational and financial planning.

此配置資料收集和測試預計將在本財政年度結束前完成，並從 26 財年開始使用，以更好地協調我們的策略營運和財務規劃。

We also made substantial progress in testing and creating deployment plans for the launch of our modernized service systems and management tools.

我們在現代化服務系統和管理工具的測試和部署計劃制定方面也取得了實質進展。

These tools will both improve our internal operations and customer experiences as we expect this application to go live.

我們預計該應用程式將上線，這些工具將改善我們的內部營運和客戶體驗。

By the end of our fiscal year, we started planning for the automation in our front end quoting and sales processes which we planned to launch in phases.

在財政年度結束時，我們開始規劃前端報價和銷售流程的自動化，並規劃分階段推出。

Beginning in fiscal '26.

從 26 財年開始。

These investments in digital transformation are expected to improve customer experiences, drive operational excellence and help us leverage our operations as we grow the business and grow our profitability.

這些在數位轉型方面的投資預計將改善客戶體驗，推動卓越運營，並幫助我們在發展業務和提高盈利能力的同時充分利用我們的營運。

With that.

就這樣。

I'll turn it back to Reece to provide an overview for the other areas of strategic focus.

我將把話題轉回給里斯，讓他概述其他策略重點領域。

Thank you, Sheila.

謝謝你，希拉。

We're also making investments to drive profitable growth and accelerate the lowering of our overall structural and product costs to increase market competitiveness.

我們也正在進行投資以推動獲利成長並加速降低整體結構和產品成本，以提高市場競爭力。

Not only do we see the digital transformation efforts as foundational to lowering our structural costs, but we're also investing in people capabilities and working with consultants to accelerate those strategies.

我們不僅將數位轉型工作視為降低結構性成本的基礎，而且我們還在投資於人才能力並與顧問合作以加速這些策略的實施。

Finally, we continue to execute on strategies to both grow and capture greater share of our SAM.

最後，我們將繼續執行策略，以發展並奪取更大的 SAM 份額。

These strategies include advancing our control system capabilities as I previously mentioned and adding professional services and other content to drive MRR ensuring we are delivering enhanced returns as we help our customers achieve success in their investment offerings.

這些策略包括提升我之前提到的控制系統能力，以及增加專業服務和其他內容以推動 MRR，確保我們在幫助客戶在投資產品中取得成功的同時提供更高的回報。

Turning to slide 8 titled FY'2025 strategic priorities, we continued execute on our business transformation plan.

轉到第 8 張投影片，標題為“2025 財年策略重點”，我們繼續執行業務轉型計劃。

The goal of which is to grow revenue faster than the company's addressable market, expand operating margins and generate returns on capital in the mid high teams and consistently above the company's cost of capital.

其目標是使收入成長速度快於公司的目標市場，擴大營業利潤率，並在中高水準產生資本回報率，並持續高於公司的資本成本。

During the quarter.

在本季度。

We made significant progress in a number of areas including new show control capabilities, enterprise management tools and upgrades to service and system maintenance solutions which are set to go live in the second half of the fiscal year.

我們在許多領域取得了重大進展，包括新的展示控制能力、企業管理工具以及服務和系統維護解決方案的升級，這些進展將於本財年下半年上線。

Key components of this program include executing on our digital transformation initiatives carefully allocating resources to end market segments, prioritizing investments in areas which tectronics clear advantages and opportunities for market for above market growth.

該計劃的關鍵內容包括執行我們的數位轉型舉措，謹慎地將資源分配給終端市場，優先投資於具有明顯優勢和市場機會的領域，以實現高於市場的成長。

At acceptable margins, aligning product delivery with differing customer needs through a tiered product offering strategy with pricing aligned with the value delivered, achieving higher profit by reducing product input costs and focusing on efficiency, improvements in manufacturing and other operations, maximizing balance sheet efficiencies and refining our critical business and financial management practices including product pricing, business planning and incentive compensation to fully support our performance objectives.

在可接受的利潤率下，透過分層產品供應策略使產品交付與不同的客戶需求保持一致，定價與交付的價值保持一致，透過降低產品投入成本並注重效率、改進製造和其他營運來獲得更高的利潤，最大限度地提高資產負債表效率和改進我們的關鍵業務和財務管理實踐，包括產品定價、業務規劃和激勵薪酬，以全面支持我們的績效目標。

In terms of our process.

就我們的流程而言。

During the first quarter, we conducted a data driven analysis to identify numerous actionable opportunities to accelerate our profitable growth.

在第一季度，我們進行了數據驅動的分析，以確定大量可行的機會來加速我們的獲利成長。

In the second quarter, we launched a deeper initiative to further analyze plan, prioritize and road map specific initiatives.

第二季度，我們啟動了更深入的計劃，以進一步分析計劃、確定優先事項和具體措施的路線圖。

We are nearing the conclusion of this planning and this planning and choosing phase and can highlight some early learnings and initiatives

我們即將完成這項規劃和選擇階段，並可以重點介紹一些早期的經驗和舉措

Today, we have gained insights on our customer relationships and perceptions in the market, these insights confirmed we are aligning to the trends and needs of customers with our concentration quality service, on quality service and control system capabilities.

今天，我們對客戶關係和市場認知有了深入的了解，這些見解證實了我們透過集中優質服務、優質服務和控制系統能力來順應客戶的趨勢和需求。

We will continue to identify and adapt to market trends and buying behaviours and product needs to focus on product, quality and reliability services and support and control system capabilities.

我們將繼續識別和適應市場趨勢和購買行為及產品需求，重點關注產品、品質和可靠性服務以及支援和控制系統能力。

We have also found areas of opportunity for improved performance and are planning to reinvigorate our lean management practices and supplier management.

我們也發現了提高績效的機會領域，並計劃重振我們的精實管理實務和供應商管理。

We have identified opportunities in portfolio and management approaches, to the market pricing strategies, product and production costs.

我們已經在投資組合和管理方法、市場定價策略、產品和生產成本方面發現了機會。

Our teams are examining the breadth and complexity of our offerings and are evaluating ways to reduce cost to produce and install.

我們的團隊正在研究我們產品的廣度和複雜性，並正在評估降低生產和安裝成本的方法。

Our teams are doing a great job in using data driven strategy and proven methodologies to plan and prioritize value enabling initiatives.

我們的團隊在使用數據驅動策略和成熟方法來規劃和確定價值促進措施的優先順序方面做得非常出色。

We will continue our digital transformation initiatives including our enterprise performance management system implementation and modernized service tools.

我們將繼續推動數位轉型計劃，包括實施企業績效管理系統和現代化服務工具。

And we'll begin executing our back end and customer facing road map.

我們將開始執行我們的後端和麵向客戶的路線圖。

During the back half of the fiscal year, these initiatives are expecting to add more resilience to our operations in reacting to changing operating environments and more over result in above's revenue growth and mid to high teams' return on capital.

在本財政年度的後半段，這些舉措預計將增強我們的營運應對不斷變化的營運環境的彈性，並帶來更高的收入成長和中高團隊的資本回報率。

We're refining our forward-looking plans with the intention to report on actions no later than our Q3 call.

我們正在完善我們的前瞻性計劃，計劃不遲於第三季度電話會議報告行動情況。

We expect to capture the quickly realize the benefit of this effort in the second half of FY'2025 with additional benefits to be realized as we complete implementation by the end of FY'2026.

我們預計在 2025 財年下半年迅速實現這項努力的效益，並在 2026 財年末完成實施後實現更多效益。

In conclusion, our summary on slide 8 recaps our key highlights our consistent performance serves as evidence we are on a sustainable trajectory of growth and increasing profitability.

總而言之，第 8 頁的總結概括了我們的重點，我們一致的表現證明我們正處於可持續的增長和盈利能力不斷提高的軌道上。

Our multiyear transformational strategies and near-term progress on these goals.

我們的多年轉型策略以及這些目標的近期進展。

Demonstrates our commitment to improve and consistently earn returns above the cost of capital.

彰顯我們致力於提高並持續獲得高於資本成本的回報的決心。

And in the top range of our industry, we are focused on the right allocation of resources and capturing growth in existing profitables and developing growth in additional areas we are focused on accelerating digital transformations and other initiatives to lower structural and product costs.

在我們行業的高端領域，我們專注於正確分配資源、實現現有利潤的成長並在其他領域發展成長，我們專注於加速數位轉型和其他舉措，以降低結構和產品成本。

We are a global industry leader in best-in-class video communication displays and control systems, and we continue to focus on bringing value to our customers.

我們是全球一流的視訊通訊顯示和控制系統產業的領導者，我們將繼續致力於為客戶帶來價值。

We are the only US manufacturer of scale with a global footprint servicing by geographic market and consistently demonstrate world leading technology leadership, high-quality solutions and world-class service.

我們是唯一一家在美國擁有規模的製造商，業務遍及全球，按地理市場提供服務，並始終如一地展示世界領先的技術領導力、高品質的解決方案和世界一流的服務。

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

因此，我想請接線員開通熱線以解答您的任何問題。

(Operator Instructions)

（操作員指令）

Our first question or comment comes from the line of Anja Soderstrom from Sidoti your line is open.

我們的第一個問題或評論來自 Sidoti 的 Anja Soderstrom，您的熱線是開放的。

Hi and, thank you for taking my question and congrats on the great quarter here.

你好，感謝您回答我的問題，並祝賀本季取得如此出色的成績。

So given that the second quarter was a lot better than we had expected, and your given your prior commentary about you expecting to be in line with consensus on the full year.

因此，鑑於第二季的表現比我們預期的要好得多，並且您之前曾表示預計全年業績將與市場普遍預期一致。

Do you expect a more steeper decline in revenue for the second half than we had before or, how should we think about that seasonality?

您是否預計下半年的營收下降幅度會比以前更大，或者我們應該如何看待這種季節性？

Once again, Anja we have a large project business, so revenue can be lumpy from quarter-to-quarter.

再說一次，安雅，我們有一個大型專案業務，因此收入每季可能會有波動。

But we do expect overall for the fiscal year that our orders and sales will be on par or exceed last year's.

但我們確實預期本財年的整體訂單和銷售額將與去年持平或超過去年。

Okay.

好的。

Thank you.

謝謝。

And in terms of the gross margins, they have held up pretty nicely over the last couple of quarters.

就毛利率而言，過去幾季一直保持相當良好的水平。

I understand.

我明白。

Now, when we're going into a more a softer season in the second half, they might be coming down.

現在，當我們進入下半個較為疲軟的賽季時，他們的表現可能會下降。

But how should we think about those gross margins for next year?

但我們該如何考慮明年的毛利率呢？

I think we're winning our fair share of orders, and so the at the pricing that we set in the marketplace, so I think in third quarter it's more of a volume situation than a price compression on certain projects.

我認為我們贏得了公平份額的訂單，而且按照我們在市場上設定的價格，我認為第三季更多的是數量情況，而不是某些項目的價格壓縮。

Okay.

好的。

Thank you, and you also mentioned the e-sales channel that you have launched and, how do you see that trending and how do you expect that to affect margins as that grow?

謝謝，您也提到了您已經推出的電子銷售管道，您認為該通路的發展趨勢如何？

That's a great question.

這是一個很好的問題。

We have continued to grow our e-sales channel, but it's really on small standard, very standard types of orders.

我們一直在擴大我們的電子銷售管道，但它實際上處理的是小標準、非常標準的訂單類型。

You might think of shot clocks that are in a high school basketball facility and we intend to continue to grow that in the back half of this fiscal year as well as in future fiscal years that should bring the selling cost down on every one of those orders and allow the sales teams that we have to focus on, higher value, more complex sales.

你可能會想到高中籃球場裡的投籃計時器，我們打算在本財年下半年以及未來財年繼續增加這一數字，這將降低每一份訂單的銷售成本並允許我們的銷售團隊專注於更高價值、更複雜的銷售。

So we believe that overall revenue will continue to grow the gross margins on those products.

因此我們相信整體收入將繼續增加這些產品的毛利率。

Will we will be able to maintain those and the selling costs overall for a unit like that should become more efficient.

我們是否能夠維持這些，而像這樣的單位的整體銷售成本應該會變得更有效率。

Okay.

好的。

Thank you.

謝謝。

And it seems like your operating expenses are going to be a bit inflated this year by the consulting fees you're spending on the digital transformation.

而且看起來，由於您在數位轉型上花費的諮詢費，您今年的營運費用將會略有增加。

So, are those, do you expect to contain paying consulting fees in next year?

那麼，您是否預計明年會支付諮詢費？

or should we expect margins maybe to have a positive effect from that falling off?

或者我們是否應預期利潤率的下降可能會產生正面的影響？

Yes, we have two major initiatives, a business transformation initiative and a digital transformation.

是的，我們有兩個主要舉措，一個是業務轉型舉措，另一個是數位轉型舉措。

The business transformation should be contained this year and much of our digital transformation will be in this year.

業務轉型應該會在今年進行，我們的數位轉型很大一部分將在今年進行。

But some of the initiatives, such as our configure price quoting and sales efficiency initiatives we believe will start in fiscal '26 Q1 and continue through fiscal '26 possibly even in FY'27.

但我們認為其中一些舉措，例如配置價格報價和銷售效率舉措將於 2026 財年第一季啟動，並持續到 2026 財年，甚至可能持續到 2027 財年。

And those might have some consulting fees and other costs associated with them as we work through those really exciting but can be challenging initiatives?

當我們進行這些令人興奮但又充滿挑戰的措施時，可能還會產生一些諮詢費和其他相關成本？

Okay.

好的。

Thank you.

謝謝。

And the last one for me before I get back in the queue with a new administration.

在我加入新政府之前，這是我最後一次發言。

Coming in and their sort of approach to the tariffs, how do you think that might affect Daktronics?

您認為他們對關稅的態度會對達科電子產生什麼影響？

Well, that's a great question.

嗯，這是一個很好的問題。

I wish I had better insight into what the new administration is going to do.

我希望我能更了解新政府將要做什麼。

But obviously we source a lot of semiconductors.

但顯然我們採購了很多半導體。

And a lot of semiconductors, and related materials, such as printed circuit cards, are sourced outside the U.S. and we bring into either our U.S. factories or one of our factories outside the US, and then bring the finished product in.

許多半導體和相關材料（例如印刷電路卡）都來自美國境外，然後我們將其運送到我們的美國工廠或美國境外的工廠，然後再將成品運回來。

And so tariffs will impact those products.

因此關稅將影響這些產品。

How much depends on the specific actions taken and it is difficult to predict.

這在多大程度上取決於採取的具體行動，而且很難預測。

Okay, I understand, thank you.

好的，我明白了，謝謝你。

That was all for me.

對我來說這就是全部了。

Well, thank you.

好吧，謝謝你。

I appreciate you on the call today.

我感謝您今天的來電。

Thank you.

謝謝。

Our next question or comment comes from the line of Mac Furst from Singular research, Mr. Frust, your line is open.

我們的下一個問題或評論來自 Singular research 的 Mac Furst，Frust 先生，您的線路是開放的。

Thank you.

謝謝。

This is Mac first with Singular Research.

這是 Mac 首次與 Singular Research 合作。

Congratulations on the quarter and thank you for taking my question.

恭喜本季取得的成績，感謝您回答我的問題。

Yes, no worries. appreciate you on the call today.

是的，不用擔心。感謝您今天的來電。

Yeah.

是的。

So with the new administration taking office in January, what other changes do you expect following kind of the question that the previous was raised?

那麼，隨著新政府在明年一月上任，根據先前提出的問題，您預計還會發生哪些變化？

Yeah, once again, lots of activity in that front right now, it appears that there'll be changes in the tariffs potentially in different regulations or the regulation environment or the regulatory environment.

是的，再說一次，目前這方面有很多活動，看來不同的法規、監管環境或監管環境的關稅可能會改變。

But too soon to really predict or to make a estimate on what, what we might change in our operations to account for that.

但現在還無法真正預測或估計我們可能會在營運中做出哪些改變來應對這個問題。

Yeah, you produce in China, but you do not sell it in China.

是的，你們在中國生產，但你們不在中國銷售。

So you basically import from China. with a large tariff expense of maybe even 35% on anything coming out of China, that would obviously depress your margin, right?

所以你基本上是從中國進口。從中國出口的任何產品的關稅費用可能高達 35%，這顯然會降低你的利潤率，對嗎？

Is that a fair statement?

這是公正的說法嗎？

I think I understood most.

我想我理解得最多了。

You broke up a little bit there, Mac, but let me try.

麥克，你那裡有點分手了，但讓我試試看。

We do have a factory in Shanghai, China and we produce really some nice products there, some of which come into the US, but much of which goes to countries outside the US, we also have another factory in Ireland where we produce products that sometimes come to the US and once again to many countries outside the US.

我們在中國上海有一家工廠，我們在那裡生產一些非常好的產品，其中一些進入美國，但大部分銷往美國以外的國家。到美國，並再次來到美國以外的許多國家。

And we have our major production in the kind of the South Dakota, Central Minnesota area of the US, of which we source many semiconductor items like LEDs, the ICs to turn those LEDs on and off, power supplies and other components.

我們的主要生產基地位於美國南達科他州和明尼蘇達州中部地區，我們從那裡採購許多半導體產品，如 LED、用於開啟和關閉 LED 的 IC、電源和其他組件。

And we source some of those through China and some from other companies outside of China.

我們向中國採購一些產品，也從中國以外的其他公司採購一些產品。

But China is a huge player in the semiconductor market.

但中國是半導體市場的巨大參與者。

And so there's they have some influence on the overall pricing and availability of many components.

所以它們對許多組件的整體定價和可用性有一定影響。

And those will be impacted by tariffs, certainly from China and possibly from other countries, depending on how broadly tariffs are applied by the next administration.

這些都會受到關稅的影響，肯定是來自中國，也可能是來自其他國家，這取決於下一屆政府徵收關稅的廣度。

Yeah.

是的。

Thank you very much.

非常感謝。

Thank you.

謝謝。

Thanks for answering my question.

感謝您回答我的問題。

I may point out Mac, that most of our competition produces outside the US, and in you know, China, the south, Southern China, so it won't be necessarily a competitive disadvantage because they will be in the same sort of environment.

我想指出的是，Mac，我們的大多數競爭對手都在美國以外的地區生產，例如中國南部，所以這並不一定是一種競爭劣勢，因為他們處於相同的環境中。

And we do have an advantage that we can bring in components and add value in the US.

我們確實有一個優勢，那就是我們可以在美國引進零件並增加價值。

Which is unusual in our industry, we're have the largest and, and really the biggest manufacturing facility in the US.

這在我們的行業中是不尋常的，我們擁有美國最大的製造工廠。

Okay.

好的。

Thank you for pointing that out.

感謝您指出這一點。

Thank you very much.

非常感謝。

Thanks Mac.

謝謝 Mac。

Thank you again.

再次感謝您。

The current relations on the quarter.

本季度的當前關係。

I appreciate that.

我很感激。

Thank you.

謝謝。

I'm sure no additional questions in the queue at this time.

我確信此時隊列中沒有其他問題。

I'd like to turn the conference back over to management for any closing remarks.

我想將會議交還給管理階層，以便他們做最後發言。

I appreciate everybody attending today's call and the nice words from Mac and Anju about the quarter.

我感謝參加今天電話會議的每個人，也感謝 Mac 和 Anju 對本季的讚美。

We do have investor outreach activities planned for the next quarter, including here in December, there's a benchmark discovery conference and a singular conference and we'll be attending both of those and we'll, we'll also of course host the next earning call at the end of our Q3 when we release results.

我們確實計劃在下一季度開展投資者拓展活動，包括 12 月份的基準發現會議和單一會議，我們將參加這兩個會議，當然，我們還將舉辦下一次收益我們在第三季度末發布業績時致電。

Appreciate all you joining us today.

感謝大家今天加入我們。

I hope you have a great holiday season, and I look forward to seeing you in February.

祝您有個愉快的假期，並期待在二月與您相見。

Thanks everyone.

謝謝大家。

Ladies and gentlemen, thank you for participating in today's conference.

女士們、先生們，感謝大家參加今天的會議。

This concludes the program.

本節目到此結束。

You may now disconnect everyone.

您現在可以斷開所有人的連線。

Have a wonderful day.

祝您有美好的一天。