Daktronics Inc (DAKT) 2025 Q3 法說會逐字稿

Good day and thank you for standing by. Welcome to the Daktronics third quarter fiscal year 2025 financial results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session.

您好，感謝您的支持。歡迎參加達科電子2025財年第三季財務業績電話會議。此時，所有參與者都處於只聽模式。演講者演講結束後，將有問答環節。

(Operator Instructions)

（操作員指示）

Please be advised that today's conference is being recorded. I'd like to hand the conference over to first speaker today, Carla Gatzke, Corporate Secretary, please go ahead.

請注意，今天的會議正在錄音。我想將會議交給今天的第一位發言者，公司秘書 Carla Gatzke，請發言。

Thank you. Good morning, everyone. Thank you for participating in our third quarter earnings conference call. During today's presentation, we will make forward-looking statements reflecting our expectations and plans about our future of financial performance and future business opportunities. These forward-looking statements reflect the company's expectations or beliefs about future events based on information currently available to us.

謝謝。大家早安。感謝您參加我們的第三季財報電話會議。在今天的演示中，我們將做出前瞻性陳述，反映我們對未來財務表現和未來商業機會的期望和計劃。這些前瞻性陳述反映了公司根據我們目前掌握的資訊對未來事件的預期或信念。

Of course, actual results could differ. Please refer to slide two of the presentation that accompanies today's call, our press release, and our SEC filings for information on risk factors, uncertainties, and exceptions that could cause actual results to differ materially from these expectations.

當然，實際結果可能會有所不同。請參閱今天電話會議附帶的簡報的第二張投影片、我們的新聞稿以及我們向美國證券交易委員會提交的文件，以獲取有關可能導致實際結果與這些預期存在重大差異的風險因素、不確定性和例外情況的資訊。

During this presentation, we will also refer to non-GAAP financial measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure in appendix to the accompanying presentation slides, which may be found in the investor relations page of our website at www.daktronics.com.

在本次演示中，我們也將參考非公認會計準則財務指標。您可以在隨附的簡報幻燈片附錄中找到這些非 GAAP 指標與最直接可比較的 GAAP 指標的對賬，該對帳可在我們網站 www.daktronics.com 的投資者關係頁面找到。

Our earnings release for the 2025, third quarter, which was furnished to the SEC on a Forum AK this morning, also contains non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as a discussion of certain limitations when using non-GAAP financial measures are included in the earnings release, which has been posted separately to the investor's relation page of our website.

我們今天上午在 Forum AK 上向美國證券交易委員會提交的 2025 年第三季財報報告也包含非 GAAP 財務指標。這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對賬，以及使用非 GAAP 財務指標時某些限制的討論都包含在收益報告中，該報告已單獨發佈在我們網站的投資者關係頁面上。

I'll turn the call over to our current Lead Independent Director to become Chairman of the Board, Andrew.

我將把電話轉給我們現任首席獨立董事、即將擔任董事會主席的安德魯 (Andrew)。

Sheila.

希拉。

Thanks, Carl. Hi everyone. I'm Andrew Siegal here in Brookings with the team. First, I'd like to thank the investors who have dialled in today. And before we move into a review of the results from the quarter, I'd like to share some perspective from the board regarding the leadership transition that you would have seen in the company's press release earlier this morning.

謝謝，卡爾。大家好。我是安德魯·西格爾，來自布魯金斯，和團隊在一起。首先，我要感謝今天撥入電話的投資人。在我們開始回顧本季的業績之前，我想分享一些董事會對領導層變動的看法，您可能在今天早上的公司新聞稿中看到過。

After more than 34 years at Daktronics, Reece Kurtenbach is stepping down from his roles as Chairman, President, and CEO. So, on behalf of the board, I'd like to thank Reece for his many years of leadership and commitment to Daktronics.

在達科電子公司工作了 34 年後，里斯·庫爾滕巴赫 (Reece Kurtenbach) 辭去董事長、總裁兼執行長的職務。因此，我謹代表董事會感謝里斯多年來對達科電子的領導和承諾。

This commitment to you, our investors, our employees, our customers, and the communities we serve, and for all that he's accomplished, strengthen and protect. The company's resilient position as a recognized industry leader with world class strengths in product design and engineering, manufacturing, and of course the installation, integration, and services capabilities that allow us to exceed our customers' expectations. We're making this change today to move more quickly and demonstrably toward our objective of growing long term shareholder value.

對您、我們的投資者、我們的員工、我們的客戶和我們所服務的社區的承諾，以及他所取得的成就，都得到了加強和保護。公司作為公認的行業領導者，擁有世界一流的產品設計和工程、製造以及安裝、整合和服務能力，這些優勢使我們能夠超越客戶的期望。我們今天做出這項改變是為了更快、更明顯地實現增加長期股東價值的目標。

To capitalize on the tremendous opportunity that our markets represent, we believe the company must accelerate change to enhance our global competitiveness and drive new levels of commercial success and financial performance. To do this, the board believes we have to add new capabilities around these core strengths I mentioned just a moment ago. Today's announcement reflects our commitment to ensuring that we have the right leadership for long-term growth, profitability, and balance sheet efficiency goals.

為了利用我們市場所代表的巨大機遇，我們認為公司必須加快變革，以增強我們的全球競爭力，並推動商業成功和財務表現達到新的水平。為了做到這一點，董事會認為我們必須圍繞我剛才提到的這些核心優勢增加新的能力。今天的公告反映了我們的承諾，確保我們擁有正確的領導力，以實現長期成長、獲利能力和資產負債表效率目標。

The board will engage a nationally recognized executive search firm to help identify a permanent CEO who will lead Daktronics on this mission. While this process continues. The board has appointed Brad Wiemann, the company's Executive Vice President, as interim President and CEO, Brad's been with Electronics since 1993. Earlier in his career, he served the company across manufacturing, engineering, product development, and other functions. In his current role, he oversees the company's commercial and high school and parks and recreation business.

董事會將聘請一家全國知名的高階主管搜尋公司來幫助尋找一位能夠帶領達科電子完成這項使命的常任執行長。這個過程仍在繼續。董事會已任命公司執行副總裁布拉德·維曼 (Brad Wiemann) 為臨時總裁兼首席執行官，布拉德自 1993 年起就在電子公司工作。在他職業生涯早期，他曾在該公司從事製造、工程、產品開發和其他職能部門的服務。他目前的職責是負責公司的商業、高中以及公園和娛樂業務。

Which makes them responsible for about 35% of the company's revenue. Additionally, the board has asked board member Howard Atkins to serve as acting CEO until a permanent CFO is named, allowing Sheila Anderson to fully dedicate herself to her previously announced new role of Chief Data and Analytics Officer.

這使得他們貢獻了公司約 35% 的收入。此外，董事會已要求董事會成員 Howard Atkins 擔任代理首席執行官，直至任命正式首席財務官，以便 Sheila Anderson 能夠全身心投入到她之前宣布的首席數據和分析官新職位中。

Howard will also continue to serve as the Chief Transformation Officer in both cases partnering closely with Brad.

霍華德也將繼續擔任首席轉型官，與布拉德密切​​合作。

So with that, I will turn it over to Reece to walk through the highlights from the third quarter. Reece.

因此，我將把時間交給里斯來回顧第三季的亮點。里斯。

Thank you, Andrew. Good morning, everyone, and thank you for joining us today. Turning to our slide presentation on page three, fiscal second quarter 2025 highlights, we drove sequential order growth in the third quarter. Orders in our commercial segment increased nicely with further out of home bookings, international rebound rebounding driven by the out of home business, and in live events we secured an order for a major NFL stadium.

謝謝你，安德魯。大家早安，感謝大家今天加入我們。翻到第三頁的幻燈片演示，2025 財年第二季的亮點是，我們推動了第三季訂單的連續成長。我們商業部門的訂單成長良好，戶外預訂量進一步增加，戶外業務推動國際市場反彈，並且在現場活動中，我們獲得了一個大型 NFL 體育場的訂單。

As we have discussed in the past, the third quarter is historically a seasonally lower volume quarter because fall sports installations have been completed. There is a natural slowdown of outdoor construction projects, and we have two major holidays in the period, reducing the overall days of production. To offset these nearer term dynamics and the reality of deleverage of fixed costs, we successfully activated mitigation strategies to preserve margins such as cost reductions, reduction in shifts, and utilize capacity to focus teams on revenue generation and overall improvement activities.

正如我們過去所討論過的，從歷史上看，第三季度是季節性較低的季度，因為秋季運動設施已經完成。戶外施工項目自然會放緩，而且我們在此期間有兩個主要假期，導致整體生產天數減少。為了抵​​消這些近期動態和固定成本去槓桿的現實，我們成功啟動了緩解策略來維持利潤率，例如降低成本、減少輪班，並利用能力讓團隊專注於創造收入和整體改善活動。

We also had a more favourable mix of business with higher portions of sales for product versus last year's higher level of contractor type installation work in the third quarter. These actions resulted in a steady gross profit margin compared to last year's third quarter, despite a 12% decrease in sales volume. Managing the business for profitability and effectively managing our working capital drove growth in cash flow from operations again despite lower volumes.

與去年第三季承包商類型的安裝工作相比，我們的業務組合也更加有利，產品銷售佔比更高。這些舉措使得儘管銷售量下降了 12%，但毛利率與去年第三季相比保持穩定。儘管業務量較低，但透過管理業務以實現盈利並有效管理營運資金，經營現金流再次實現成長。

During the third quarter, our business transformation office completed the rigorous analysis and planning phase of our transformation plan and launched a number of initiatives designed to create additional sustainability in our operating margins. We also made strides in testing and training for launches of our updated service systems and enterprise performance management tools under our digital transformation program.

在第三季度，我們的業務轉型辦公室完成了轉型計畫的嚴格分析和規劃階段，並推出了一系列旨在提高營業利潤率永續性的措施。我們也在數位轉型計畫下更新的服務系統和企業績效管理工具的測試和培訓方面取得了進展。

Additionally, the analytical work completed allowed for a refinement of ambitious financial targets, especially the achievement of growing revenue faster than our addressable market, which is currently estimated between 7% to 10%. Operating margins at a sustainable 10% to 12% and 17% to 20% in return on capital by fiscal 2028. I'll give a more complete update on the business and digital transformation program shortly. We remain overall optimistic about the long-term potential in our end markets, and we believe our strategic initiatives will position as well for future growth.

此外，完成的分析工作使我們能夠完善雄心勃勃的財務目標，特別是實現收入成長速度超過我們可尋址市場的成長速度，目前估計可尋址市場的成長速度在 7% 到 10% 之間。到 2028 財年，營業利潤率將達到可持續的 10% 至 12%，資本回報率將達到 17% 至 20%。我很快就會就業務和數位轉型計劃提供更完整的更新。我們對終端市場的長期潛力總體上保持樂觀，我們相信我們的策略舉措也將為未來的成長做好準備。

I invite you to turn to slide four market vertical fiscal third quarter review for more details. Our focus is to drive profitable revenue growth in markets that achieve a rate of return higher than our cost of capital. Our approach in each market is based on our future views of these subsegments, including growth and profitability, alignment with our product portfolio and development roadmap, and market penetration to leverage long lasting customer relationships.

我邀請您翻到投影片四，查看市場垂直第三財季回顧，了解更多詳情。我們的重點是推動那些實現高於資本成本回報率的市場中的獲利收入成長。我們在每個市場採取的策略都基於我們對這些細分市場的未來看法，包括成長和獲利能力、與我們的產品組合和發展路線圖的一致性，以及市場滲透率，以利用長期的客戶關係。

We benefit from our value propositions being best in class in the industry for providing valuable products and services driving ongoing customer satisfaction. Let's discuss how our segments performed in Q3 in live events, the demand for Major League Baseball this season was smaller as a number of potential upgrades moved out into future seasons. We won one of the few large projects available, and this office was offset by securing a major project for a new customer and for a new NFL stadium. This project is planned to be converted to revenue late in our fiscal '26 and into fiscal '27.

我們的價值主張在業界處於領先地位，能夠提供有價值的產品和服務，持續提高客戶滿意度。讓我們討論一下我們的部門在第三季度的現場活動中的表現，由於許多潛在的升級轉移到未來的賽季，本賽季對美國職棒大聯盟的需求較小。我們贏得了為數不多的大型項目之一，而這個辦事處也通過為新客戶和新的 NFL 體育場獲得一個重大項目而得到了補償。該專案計劃於 2026 財年末至 2027 財年轉化為收入。

Our outlook for this segment remains similar to our last call. We expect live events demand to remain strong as venues enhance facilities to entertain fans and attract athletes.

我們對這領域的展望與上次預測相似。我們預計，隨著場館加強設施以娛樂球迷和吸引運動員，現場賽事的需求將保持強勁。

Orders in this market are large, and installation can be lengthy and complex, creating variability in period-to-period order and sales volumes. Our teams are focused on winning business with an attractive return on capital. Pictured here is an example of a video used in a minor league baseball stadium in Akron, Ohio. The rubber ducts are a recurring customer and highlights the use of digital display technology to enhance their venue to attract and entertain fans.

這個市場的訂單量很大，安裝過程可能很長且複雜，導致不同時期的訂單和銷售量有差異。我們的團隊致力於以誘人的資本回報贏得業務。圖中是俄亥俄州阿克倫市小聯盟棒球場使用的影片範例。橡膠管道是回頭客，並強調使用數位顯示技術來增強場地以吸引和娛樂粉絲。

Looking ahead, we continue to expect healthy secular demand for the in-bow applications and expansion outside the bowl as more focus is placed on entertainment areas such as entryways, atriums, concourses, and adjacent entertainment zones. Our narrow pixel pitch line of products matches the needs of customers for many of those locations and continues to be in demand.

展望未來，隨著人們更加關注入口、中庭、大廳和相鄰娛樂區等娛樂區域，我們繼續預期對船頭內應用和碗外擴展的長期健康需求。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 we call those sign companies to many types of customers and applications, including military utilities, transportation, national retailers, quick serve restaurants, casinos, shopping centres, cruise ships, commercial building owners, petroleum retailers, and other on-premises customers. Also included in this segment are out of home advertising companies and larger advertising displays we call spectaculars, and orders can vary in this market also because of larger size orders in these two segments.

我們的商業業務主要包括透過經銷商（我們稱之為標誌公司）向許多類型的客戶和應用程式銷售，包括軍事設施、運輸、全國零售商、快餐店、賭場、購物中心、遊輪、商業建築業主、石油零售商和其他內部客戶。此部分還包括戶外廣告公司和我們稱為「spectacles」的大型廣告展示，並且由於這兩個部分的訂單規模較大，因此該市場的訂單可能會有所不同。

Out of home activity was strong for our longtime national customers as we continued to drive orders from independent billboards. Spectacular order wins included an upgraded display for the rooftop of the Target building in Minneapolis. We continue to build out our AV integrator network and marketing to government and military customers to sell our narrow pixel pitch displays.

由於我們繼續推動獨立廣告看板的訂單，我們長期的全國客戶的戶外廣告活動表現強勁。令人矚目的訂單包括為明尼阿波利斯塔吉特大廈的屋頂升級顯示。我們繼續建立我們的 AV 整合商網絡，並向政府和軍事客戶行銷我們的窄像素間距顯示器。

Our efforts are paying off as we have received orders from a number of new AV integrators and are seeing repeat business from this developing channel. Pictured here is an example of a narrow pixel pitch product utilized in an e-gaming facility at a university. We have made progress on manufacturing the displays for the centre, the order in Atlanta we mentioned last quarter. We expect the remaining revenue and installation to be complete late Q4.

我們的努力得到了回報，因為我們已經收到了許多新的 AV 整合商的訂單，並且看到了來自這個發展中管道的回頭業務。圖中是大學電子遊戲設施中使用的窄像素間距產品的一個例子。我們在為該中心製造顯示器方面取得了進展，這是我們上個季度提到的亞特蘭大的訂單。我們預計剩餘的收入和安裝將在第四季末完成。

Our focus for this market is to grow our core areas like spectacular on-premises, and out of home and continue to develop the AB integrator channel to market our narrow pixel pitch product lines, especially in control room applications used by military utilities, and transportation agencies.

我們對這個市場的關注點是發展我們的核心領域，如壯觀的室內和戶外，並繼續開發 AB 整合商管道來推銷我們的窄像素間距產品線，特別是在軍事設施和運輸機構使用的控制室應用中。

Transportation Variability in orders versus prior periods is natural in this segment, which is a large project business and therefore lumpy. Despite the down order comparison, our financial performance for this segment was solid as we fulfil the backlog of orders from long time repeat customers. We continue to see a trend in upgrades and in in and around airports for digital signage.

運輸訂單與前期相比有所波動是很正常的，因為這是一個大型專案業務，因此波動較大。儘管訂單量下降，但由於我們完成了長期回頭客的積壓訂單，因此該部門的財務表現仍然穩健。我們持續看到機場內外數位看板升級的趨勢。

Our teams are focused on winning projects for intelligent transportation systems, including traffic management centres, airport projects, and other mass transit systems projects. The outlook for this segment remains solid and is poised to take advantage of selling our full line of video display systems from our NPP products to our prequalified and trusted ITS systems used by state and city governments.

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。該領域的前景仍然穩固，並準備利用我們的全系列視訊顯示系統進行銷售，從我們的 NPP 產品到州和市政府使用的經過預審合格且值得信賴的 ITS 系統。

Pictured here is the Intuit dome parking ramp that was installed last summer. This highlights the use of digital outside of sports and the interdependencies between our business units. International during the quarter, a high number of bids were converted to purchases, especially in the out of home space.

圖中是去年夏天安裝的 Intuit 圓頂停車坡道。這凸顯了體育以外的數位技術的應用以及我們業務部門之間的相互依賴性。本季度，國際上大量投標轉化為購買，尤其是在戶外廣告領域。

We are actively quoting opportunities to additional out of home customers and for several mid-sized sports projects 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 broad array of customers, we are laying the groundwork for future repeat and upgrade types of orders in the future. Pictured here at the digital display at Gaddafi Stadium in Pakistan.

我們正在積極向更多戶外客戶和幾個中型運動項目提供報價機會，並繼續看到更多報價轉化為訂單的跡象。憑藉我們現有的客戶群以及對來自廣泛客戶的此類新訂單的關注，我們正在為未來重複和升級類型的訂單奠定基礎。圖為巴基斯坦卡扎菲體育場的數位顯示器。

High schools the market continues to convert to full video usage while orders were down slightly within the quarter due to varied timing in order placement. We are booking orders at a record pace on a year-to-date basis. Quoting activity is outpacing last year's record performance. We began deliveries of our new higher margin product not only to support our customers but further bolster our contribution margin in this segment.

高中市場繼續轉向全視訊使用，但由於訂單下達時間不同，本季訂單略有下降。今年迄今為止，我們的訂單量達到了創紀錄的速度。報價活動超過了去年的創紀錄表現。我們開始交付新的利潤率更高的產品，不僅是為了支持我們的客戶，也是為了進一步提高我們在這領域的貢獻利潤率。

The pictured installation at Hayward High School in Wisconsin highlighting the conversion to LED video being a durable market trend. Our teams continue building, testing, and implementing capabilities as we continue to advance our control systems to enhance the live event entertainment experience and improve workflow efficiencies. 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.

圖中所示為威斯康辛州海沃德高中的安裝情況，凸顯了 LED 影片的轉變已成為一種持久的市場趨勢。隨著我們不斷改進控制系統以增強現場活動娛樂體驗並提高工作流程效率，我們的團隊將繼續建置、測試和實施功能。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、即時渲染以及透過特定體育應用程式整合的資料來進行動態演示。

The addressable market for our new solution is broad, including anyone supporting live events, entertainment, and sports, even if they're not using electronics displays, and is slated for a release this summer. Additionally, we are introducing cloud access, allowing customers to schedule, store, and manage their content and data sources from anywhere. The work that we are doing here sets us up nicely to increase our recurring revenue streams which we intend to be a driver for gross margin expansion over time.

我們的新解決方案的目標市場非常廣泛，包括支援現場活動、娛樂和體育的任何人，即使他們不使用電子顯示器，並且計劃於今年夏天發布。此外，我們還引入了雲端訪問，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。我們在這裡所做的工作為我們增加經常性收入流奠定了良好的基礎，我們希望這能成為毛利率長期擴張的驅動力。

Over the coming months, our teams will continue to test and refine features and develop the marketing and launch plans. Overall, long term demand for digital displays is expected to continue growing, driven by new indoor LED product availability, and our customers' desire to inform, entertain, and persuade their audiences using dynamic mediums.

在接下來的幾個月裡，我們的團隊將繼續測試和完善功能並制定行銷和發布計劃。總體而言，受新型室內 LED 產品的推出以及客戶希望使用動態媒體向受眾提供資訊、娛樂和說服的願望的推動，數位顯示器的長期需求預計將持續增長。

We will get into more of that, but first, for additional details on the financial results of the quarter and year, I'll now turn it over to Sheila.

我們將對此進行更深入的探討，但首先，為了了解有關本季度和年度財務業績的更多詳細信息，我現在將把時間交給 Sheila。

Thank you, Reece. I invite you to turn to slide five and six titled Fiscal Q3 and year-to-date Fiscal 2025 Financial highlights to follow the third quarter and year-to-date financial outcomes. The quarter over quarter comparisons in this slide and related discussion are as of and for the fiscal quarters ended January 25th, 2025, October 26th, 2024, and January 26th, 2024, January 20th, 2024, unless otherwise stated.

謝謝你，里斯。請您翻到第五張和第六張幻燈片，標題為“2025 財年第三季度和年初至今的財務亮點”，以了解第三季度和年初至今的財務結果。除非另有說明，本投影片和相關討論中的季度環比比較均截至 2025 年 1 月 25 日、2024 年 10 月 26 日以及 2024 年 1 月 26 日、2024 年 1 月 20 日的財政季度。

Orders for the third quarter of fiscal 2025 decreased by 2.7% from the third quarter of fiscal '24. This decline was primarily due to reduced orders in the live events, high school park and recreation, and transportation business units. As BRL highlighted, variable ability in our order rate between periods is natural in the large project business areas, influenced by the time of year for sports projects and due to some delayed buying behaviours.

2025財年第三季的訂單較24財年第三季下降了2.7%。這一下降主要是由於現場活動、高中公園和娛樂以及交通業務部門的訂單減少。正如 BRL 所強調的，在大型專案業務領域，我們不同時期的訂單率變化能力是自然的，受到體育項目季節的影響以及一些延遲的購買行為。

In live events we booked a large project for an NFL stadium, and this will convert into revenue late in fiscal '26 and primarily realized in FY'27. These declines were offset by order bookings and commercial and international business units. Those increases both led by the strength of the out of home niche.

在現場活動中，我們為 NFL 體育場預訂了一個大型項目，這將在 26 財年末轉化為收入，並主要在 27 財年實現。這些下降被訂單量以及商業和國際業務部門所抵消。這些成長均是由戶外廣告市場的強勁成長所推動的。

Orders for the first nine months of the year increased by 1.2%. third quarter fiscal 2025 orders increased by 5.2% from the second quarter of fiscal 2025. We have been seeing delays in US-based project bookings across markets likely due to recent actions by the US government, including global tariff policy and federal funding priority uncertainties. We anticipate these conditions may impact the timing of expected orders in the near term, especially in our transportation business.

今年前九個月的訂單量增加了1.2%。 2025財年第三季的訂單量較2025財年第二季成長了5.2%。我們發現，美國各個市場的專案預訂都出現了延遲，這可能是由於美國政府最近採取的行動，包括全球關稅政策和聯邦資金優先順序的不確定性。我們預計這些情況可能會影響短期內預期訂單的時間，尤其是在我們的運輸業務中。

To date, orders for the first nine months of the year increased by 1.2%. Based on the strong return to more normal seasonal trends compared to prior years and the large NFL project bookings, the project backlog was $273 million at the end of the quarter. Quoting activity remains active across all segments despite macroeconomic uncertainties.

截至目前，今年前九個月的訂單成長了1.2%。由於與前幾年相比季節性趨勢強勁回歸正常，且 NFL 項目訂單量較大，本季末項目積壓金額為 2.73 億美元。儘管宏觀經濟存在不確定性，但所有領域的報價活動仍然活躍。

Net sales for the third quarter of fiscal '25 decreased by 12.2% compared to the third quarter of fiscal '24. The third quarter of every fiscal year is characterized by seasonally lower volume. The sales decrease is driven by comparatively lower volumes in live events, particularly offset by increased fulfilment in the commercial, international, and high school park and recreation business units.

25財年第三季的淨銷售額與24財年第三季相比下降了12.2%。每個財政年度的第三季都是季節性交易量較低的時期。銷售額下降是由於現場活動數量相對較低，特別是被商業、國際和高中公園及娛樂業務部門的業績成長所抵消。

On a year to day basis, sales levels are 3% lower compared to last year's record sales. Gross profit as a percentage of net sales with 24.6%, similar to the 24.5% for the third quarter of fiscal '24. Maintaining gross profit on a 12% volume reduction highlights the solid performance in adjusting and managing costs as demand fluctuates on a seasonal basis. Our teams utilize several tactics, including reducing shifts and workload schedules to adjust for lower volumes and preserve gross profit margins.

與去年同期相比，銷售額下降了 3%。毛利潤佔淨銷售額的百分比為 24.6%，與 24 財年第三季的 24.5% 相似。在銷量減少 12% 的情況下仍保持毛利，凸顯了在需求隨季節波動時調整和管理成本的穩健表現。我們的團隊採用多種策略，包括減少輪班和工作量安排，以適應較低的工作量並維持毛利率。

On a year to day basis, gross profit was 26.1% compared to 27.7%, attributable to the sales mix differences between periods. During the quarter we incurred additional costs for our business and digital transformation, down affiliation change, and corporate governance matters. These costs, combined with lower gross margin dollars due to lower volume, resulted in an operating loss of 2.4% of sales in Q3, adjusted for one-time consulting and corporate governance related expenses, operating margin was positive at 1%. On a year to day basis, the operating margin was 6% or 7.7% as adjusted.

與去年同期相比，毛利為 26.1%，而去年同期為 27.7%，歸因於不同時期的銷售組合差異。本季度，我們因業務和數位轉型、附屬機構變更以及公司​​治理事宜而產生了額外成本。這些成本加上因銷售下降而導致的毛利率下降，導致第三季營業虧損 2.4%，經一次性諮詢和公司治理相關費用調整後，營業利潤率為正 1%。按年比較，營業利益率為 6%，調整後為 7.7%。

Increased operating expenses reflect investments and staffing resources to support information technology and digital transformation plans, as well as some sales team expansion to support opportunities for future growth. During the third quarter, we incurred $2.1 million in consulting services to support the implementation and acceleration of our strategies to grow and drive efficient and consistent profitability levels. We expect to invest $1 million to $2 million more in the fourth quarter of this 2025 for the business and digital transformation initiative. Additionally, we incurred $2.7 million in advisory related expenses for corporate governance matters and expect some costs related to this work in the fourth quarter.

營運費用的增加反映了支援資訊科技和數位轉型計畫的投資和人力資源，以及一些銷售團隊的擴張以支持未來的成長機會。第三季度，我們花了 210 萬美元用於諮詢服務，以支持實施和加速我們的策略，從而實現成長並推動高效、持續的獲利水準。我們預計將在 2025 年第四季為業務和數位轉型計畫再投資 100 萬至 200 萬美元。此外，我們在公司治理事務方面的諮詢相關費用為 270 萬美元，預計第四季將產生與此項工作相關的一些費用。

Our careful working capital management and business profitability, adjusting operating loss for non-cash excesses like depreciation and loan fair value change, drove cash flows from operations of $12 million for the fiscal quarter and $75 million on a year-to-date basis.

我們謹慎的營運資本管理和業務獲利能力，調整了折舊和貸款公允價值變動等非現金超額的經營損失，推動本財季經營現金流達到 1,200 萬美元，年初至今達到 7,500 萬美元。

Cash restricted cash and marketable securities totals $132.2 million at the end of the quarter. Our working capital grew to $232 million with a ratio of 2.4 to 1. Management's focus remains on maintaining a strong balance sheet and managing working capital levels through the expected growth of the company.

本季末，現金限制性現金和有價證券總額為 1.322 億美元。我們的營運資本成長至 2.32 億美元，比率為 2.4 比 1。管理層的重點仍然是維持強勁的資產負債表並透過公司的預期成長來管理營運資本水準。

During the third quarter, we converted $13.9 million of face value of the $25 million senior second line secured promissory note and have delivered these shares. Additionally, subsequent to the end of the quarter, we converted the remaining balance of the note and expect to deliver shares early in March, which will pay off the convertible note in full, saving the company approximately $5 million in interest over the remaining term.

在第三季度，我們將面額 2,500 萬美元的二級優先擔保本票中的 1,390 萬美元兌換成現金，並交付了這些股票。此外，在本季結束後，我們轉換了票據的剩餘餘額，並預計將於 3 月初交付股票，這將全額償還可轉換票據，從而為公司在剩餘期限內節省約 500 萬美元的利息。

Note that these shares were included in the waiting for the full quarter because of the anti-dilutive nature of the fair value impacts to income. But in future quarters, these shares will be in fully included in the EPS. To offset a portion of share dilution resulting from the convertible note into common stock, we began executing on our existing share repurchase authorization, and during the quarter we purchased $9 million worth of shares for approximately or approximately 535,000 shares.

請注意，由於公允價值對收入的影響具有反稀釋性質，因此這些股票被納入整個季度的等待範圍。但在未來幾個季度，這些股票將完全納入每股盈餘。為了抵​​消可轉換票據轉換為普通股所導致的部分股份稀釋，我們開始執行現有的股份回購授權，並在本季度以約 535,000 股的價格購買了價值 900 萬美元的股份。

As we enter Q4, quoting activity is strong, and we continue to anticipate year over year growth in order bookings. However, we acknowledge that we are currently seeing some delays in order placements as companies evaluate the dynamic trade environment. Additionally, we recognize that spring baseball orders were smaller this year compared to last, and we have adjusted our capacity in the near term accordingly.

進入第四季度，報價活動強勁，我們預計訂單量將年增。然而，我們承認，由於公司正在評估動態貿易環境，我們目前看到訂單下達方面存在一些延遲。此外，我們認識到今年春季棒球訂單比去年少，因此我們已在短期內調整了產能。

Over the long term, given our continued financial performance, the underlying health healthy fundamental drivers of growth persisting in our end markets, our strong leading position in the market along with the strategic initiatives we're undertaking. We are well positioned for long term profitable growth and returns.

從長遠來看，鑑於我們持續的財務表現、終端市場持續存在的健康成長基本動力、我們在市場上的強大領先地位以及我們正在採取的策略性舉措。我們已做好充分準備，實現長期獲利成長和回報。

Now board member Howard Atkins will provide more details on our transformation.

現在董事會成員霍華德·阿特金斯將提供有關我們轉型的更多細節。

Thank you, Sheila. This is Howard Atkins also here in Brookings. You'll note that I'm going to talk about the business transformation in the company that's underway. There's a lot of detail in the press release and the deck that accompanies our remarks here today that speak to the specific initiatives that are underway. What I'd like to do is to try to provide some additional perspective. On what the company is trying to accomplish and what this business transformation is all about.

謝謝你，希拉。我是布魯金斯大學的霍華德‧阿特金斯。您會注意到，我將要談論公司正在進行的業務轉型。新聞稿和我們今天在此發表的演講中附帶的資料中有很多細節，談到了正在進行的具體舉措。我想做的是嘗試提供一些額外的觀點。關於公司想要實現的目標以及此次業務轉型的意義。

Many years ago, I worked for an enlightened CEO who used to tell his team that companies don't get better by being bigger. They get bigger by being better. Daktronics is already better, but in a nutshell, completing the journey from better to best is what the Daktronics business transformation is really all about being best for our shareholders by being best for our customers with the best team in the business. So let me describe what being best will look like at Daktronics. It's about providing great value to customers at economic returns that are well above the company's cost of capital.

許多年前，我曾為一位開明的執行長工作，他曾經告訴他的團隊，公司規模擴大並不會變得更好。他們透過變得更好而變得更強大。達科電子已經變得更好了，但簡而言之，完成從更好到最好的旅程才是達科電子業務轉型的真正意義所在，即透過業內最好的團隊為我們的客戶提供最好的服務，從而為我們的股東提供最好的服務。那麼，讓我來描述一下達科電子公司的最佳表現是什麼樣的。它是關於以遠高於公司資本成本的經濟回報為客戶提供巨大價值。

It's about continually developing and building durable client relationships. Nurturing relationships helps reduce customer acquisition costs over time, which in turn helps us provide a better deal for our customers and a better return for our shareholders. Staying ahead of the competition by continuing to innovate products and services that set performance and reliability standards in our industry.

這是關於不斷發展和建立持久的客戶關係。培養關係有助於隨著時間的推移降低客戶獲取成本，這反過來又有助於我們為客戶提供更好的交易並為股東帶來更好的回報。透過不斷創新產品和服務，樹立產業績效和可靠性標準，維持競爭優勢。

It means operating our businesses at maximum efficiency and lowest cost across the supply chain from procurement to inventory management, manufacturing, fulfilment, and aftermarket service. And finally, based on all of the above, delivering superior returns to our shareholders. The company's transformation from better to best in class can be expressed in a few key business and financial targets and objectives.

這意味著我們在從採購到庫存管理、製造、履行和售後服務的整個供應鏈中以最高效率和最低成本經營業務。最後，基於以上所有，為我們的股東帶來豐厚的回報。公司從優秀到一流的轉變可以透過幾個關鍵的業務和財務目標和目的來體現。

First, from a shareholder perspective, we're aiming for ROIC, return on invested capital in the top quartile of top performing publicly traded manufacturing companies, which we believe is in the 17% to 20% range based on all available market data, and we're aiming to accomplish that by no later than 2028.

首先，從股東的角度來看，我們的目標是讓 ROIC（投資資本回報率）達到表現最佳的上市製造公司的前四分之一，根據所有可用的市場數據，我們認為這一水平在 17% 到 20% 之間，我們的目標是不遲於 2028 年實現這一目標。

We're also looking for top line growth as Reece mentioned above our particular addressable market. In other words, verticals and geographies where we can compete on value and earn an adequate return on capital. We're currently setting 7% to 9% compounded annual growth over the next three fiscal years as our revenue target.

正如里斯上面提到的我們的特定目標市場，我們也在尋求營收成長。換句話說，我們可以在垂直產業和地理上進行價值競爭，並獲得足夠的資本回報。我們目前設定的未來三個財年的複合年增長率為7%至9%作為我們的收入目標。

Our market knowledge complemented by extensive global market surveys conducted recently with our consultant are being employed to strengthen the way in which our sales teams are engaged with their customers so that we can win more business by delivering value at a fair price. Another target improving the consistency and reliability of the company's revenue growth.

我們利用最近與顧問進行的廣泛的全球市場調查所獲得的市場知識，加強我們的銷售團隊與客戶的互動方式，以便我們能夠以合理的價格提供價值，從而贏得更多業務。另一個目標是提高公司收入成長的一致性和可靠性。

Historically, live events have accounted for a large share of the company's top line growth, in some periods as much as 75% of that growth. Now live events are a really important segment for the company, and we'll continue, we will continue to allocate capital to it.

從歷史上看，現場活動佔了公司營業收入成長的很大一部分，在某些時期甚至高達 75%。現在，現場活動對公司來說是一個非常重要的環節，我們將繼續為其投入資金。

But all the other reportable business segments are now developing plans to grow at a combined compound annual growth rate above the total corporate objective. As the revenue mix in the company is diversified, the quality of the company's revenue will improve, not just the total growth rate.

但所有其他可報告的業務部門現在都在製定計劃，以實現高於公司整體目標的綜合複合年增長率。隨著公司收入結構的多樣化，公司收入的品質將會提高，而不僅僅是整體成長率。

A deep portfolio review across each of our reportable segments, which was conducted with our consultant last fall, has helped the company identify verticals with the longest growth runway and or best margin capture potential, and which verticals need to be improved to have margins improved before additional strategic capital is allocated.

去年秋天，我們與顧問對每個可報告部門進行了深入的投資組合審查，這有助於公司確定成長跑道最長或最佳利潤獲取潛力的垂直行業，以及哪些垂直行業需要改進才能在分配額外戰略資本之前提高利潤率。

Portfolio reviews such as the one that was recently conducted will become a regular aspect of the company's capital allocation process. We will continue to invest in leading edge product development while simplifying the development process. Annual product development spend will be about $40 million this fiscal year and will continue at around that same annual level, although we're currently reviewing the specifics within that $40 million to make sure that investment of resources is exclusively focused on just the mission critical highest return initiatives.

最近進行的投資組合審查將成為公司資本配置流程的常規環節。我們將繼續投資於前沿產品開發，同時簡化開發流程。本財年的年度產品開發支出約為 4000 萬美元，並將保持在同一年度水平左右，但我們目前正在審查 4000 萬美元中的具體細節，以確保資源投資專門集中在關鍵任務最高回報計劃上。

Now the target achieving operating margins in the 10% to 12% range through structural cost reduction. Over the last eight months, the management team reviewed, valued, and developed specific implementation plans for about $18 million in cost savings by fiscal '28. At a full run rate from tighter in inventory management, simplifying product complexity in the company, more effective procurement contract negotiation, and leaner, more targeted, more adaptable manufacturing capacity.

現在的目標是透過降低結構性成本來實現 10% 至 12% 的營業利潤率。在過去的八個月中，管理團隊審查、評估並制定了具體的實施計劃，預計到 28 財年可節省約 1,800 萬美元的成本。以滿載運作的方式，加強庫存管理，簡化公司的產品複雜性，進行更有效的採購合約談判，並提高製造能力的精簡、針對性更強、適應性更強。

We will be completing the next round of our cost recovery reviews for additional cost savings as part of the fiscal 2026 annual plan, which will be completed in April, and we will report out the results from that plan in our next quarterly review.

作為 2026 財年年度計劃的一部分，我們將完成下一輪成本回收審查，以實現額外的成本節約，該計劃將於 4 月完成，我們將在下一次季度審查中報告該計劃的結果。

Now business transformations tend to be most successful when supported by business and financial management practices that are aligned with the objectives of the transformation and support the continuation of high-grade operating performance in the transformed company. Now at Daktronics, this is what my statement means. First, we've been looking at compensation our compensation program.

現在，當業務和財務管理實踐與轉型目標一致並支持轉型後的公司繼續保持高水準的營運績效時，業務轉型往往會取得最大的成功。現在在達科電子公司，這就是我的聲明的含義。首先，我們一直在研究我們的薪酬計劃。

Several months ago, the company engaged a top notch management consultant for compensation programs and with the support of that consultant, the company is putting finishing touches on a comp structure that is designed to align the long term interests of the executive team with the long term interests of our shareholders, align the annual variable comp program with clear and precise performance objectives. And enhance the company's ability to retain and as needed attract top talent.

幾個月前，公司聘請了一位頂尖的薪酬方案管理顧問，在該顧問的支持下，公司正在對薪酬結構進行最後的完善，旨在使管理團隊的長期利益與股東的長期利益保持一致，使年度浮動薪酬計劃與清晰、準確的績效目標保持一致。並增強公司留住和吸引頂尖人才的能力。

Planning. The company has been refining its annual strategic risk management and capital and CapEx planning to optimize capital allocation across the company, and you'll be hearing some more from us over the coming quarters in terms of what exactly that means in terms of refining the planning process. Pricing guardrails have been put in place to help ensure business pricing margins are consistent with value-based selling and achieving acceptable ROI return on investment.

規劃。該公司一直在完善其年度策略風險管理和資本及資本支出規劃，以優化整個公司的資本配置，在接下來的幾個季度中，您將會聽到我們更多關於完善規劃流程的具體含義的信息。已經制定了定價護欄，以幫助確保企業定價利潤與基於價值的銷售一致，並實現可接受的投資回報率。

A digital transformation, another important process underpinning our future. Shila is going to talk in a second about more detail on the digital transformation. I would just say here that getting our internal processes on a digital platform should improve efficiency and internal controls, as well as provide a more effective and reliable interface with our customers on pricing and service. Let me conclude by saying that the Daktronics business transformation is not a project, and it is more than a process.

數位轉型是我們未來的另一個重要過程。Shila 稍後將更詳細地討論數位轉型。我在這裡只想說，將我們的內部流程放到數位平台上應該可以提高效率和內部控制，並在定價和服務方面為我們的客戶提供更有效、更可靠的介面。最後我想說的是，達科電子的業務轉型不是一個項目，而是一個過程。

It's an ongoing effort by the company to leverage its competitive advantages, to realize and grow its full intrinsic value, be the best for its customers, the best for its team, and of course the best for its shareholders. There's a lot to do and a lot left to do. The team is committed to owning the transformation effort. Because the team is committed to owning the results. So, let me now turn it over to Sheila to discuss a little bit more detail on the digital transformation progress.

公司不斷努力利用其競爭優勢，實現並提高其全部內在價值，為客戶提供最好的服務，為其團隊提供最好的服務，當然也為其股東提供最好的服務。有很多事情要做，還有很多事情要做。該團隊致力於推動轉型工作。因為團隊致力於取得成果。現在，讓我將話題交給 Sheila，讓她更詳細地討論一下數位轉型的進展。

Let's move to slide nine digital transformation updates. Our IT and data technology platforms are key in our business transformation as it supports our aggressive growth ambitions, data-driven planning, and is foundational to creating operational efficiencies.

讓我們轉到第九張投影片，了解數位轉型的更新。我們的 IT 和數據技術平台是我們業務轉型的關鍵，因為它支援我們積極的成長目標、數據驅動的規劃，並且是提高營運效率的基礎。

In fiscal 2025, we added products to our e-sales channel and improved back office integrations with systems and processes while it delivered results, particularly in our high school park and recreation segment.

在 2025 財年，我們為電子銷售管道添加了產品，並改進了後台系統和流程的集成，同時取得了成果，特別是在我們的高中公園和娛樂部門。

Currently we are in the testing and training [pre-go] phases for certain parts of our enterprise performance management and service tools implementations. For our enterprise performance management tool, our testing of the consolidation and reporting phases are near completion, and we are set to run these systems parallel to ensure they seamlessly operate to launch as expected in May.

目前，我們正處於企業績效管理和服務工具實施的某些部分的測試和培訓[前期]階段。對於我們的企業績效管理工具，我們對合併和報告階段的測試已接近完成，我們準備好並行運行這些系統，以確保它們無縫運行並按預期在五月推出。

The enterprise performance management tool has additional phases plans launched throughout fiscal '26, including the data capture of detailed demand forecasts to be utilized to further enhance and better align our strategic, operational, and financial planning and make this data accessible and organized for teams to utilize in planning and capital allocation decision making.

企業績效管理工具在 26 財年推出了額外的階段計劃，包括捕獲詳細需求預測的數據，以進一步加強和更好地協調我們的策略、營運和財務規劃，並使這些數據可供團隊訪問和組織，用於規劃和資本配置決策。

The service system is set to launch this spring. Final documentation, training and testing is also being performed to ensure the finance system and service system seamlessly integrate. We have also made a technology vendor selection for the sales and quoting tools as we plan to launch that during fiscal 2026.

該服務系統預計將於今年春季推出。目前正在進行最終的文件編制、培訓和測試，以確保財務系統和服務系統無縫整合。我們也對銷售和報價工具進行了技術供應商選擇，計劃在 2026 財年推出這些工具。

As we look ahead, we are planning for an ERP upgrade to take advantage of the automation capabilities in the newest version.

展望未來，我們計劃升級 ERP，以利用最新版本的自動化功能。

With that, I'll turn it back over to you.

說完這些，我將其交還給您。

Thanks, Sheila. In conclusion, our summary on slide 10 recaps our key highlights. Our performance serves as evidence that we are a sustainable trajectory of growth and increasing profitability. Our transformation program supports our commitment to grow revenues faster than the addressable market growth, achieve 17 to 20% return on capital, and 10% to 12% in operating margin by fiscal 2028.

謝謝，希拉。總之，投影片 10 的總結概括了我們的重點。我們的業績證明我們正保持可持續的成長軌跡和不斷提高的獲利能力。我們的轉型計畫支持我們的承諾，到 2028 財年，營收成長速度超過可尋址市場成長速度，實現 17% 至 20% 的資本回報率和 10% 至 12% 的營業利潤率。

Our multi-year transformational strategies and near-term progress on these goals demonstrates our commitment to improve and consistently earn returns above the cost of capital and in the top range of our industry.

我們多年的轉型策略和近期在這些目標上取得的進展表明，我們致力於提高並持續獲得高於資本成本且處於行業領先水平的回報。

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. 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創造價值。我們是唯一一家按地理市場提供服務的全球規模美國製造商，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，我請求接線員開通熱線以便解答任何問題。

Thank you. At this time, we'll conduct the question answer session.

謝謝。此刻，我們將進行問答環節。

(Operator Instructions)

（操作員指示）

Please stand by while we compile the Q&A roster.

請稍候，我們正在編制問答名單。

And our first question comes from a line of [Aaron Spekelo] of Greg Holm Capital Group. Your line is not open.

我們的第一個問題來自 Greg Holm Capital Group 的 [Aaron Spekelo]。您的線路未開通。

Yeah, good morning. Thanks for taking the questions. Maybe first for me on, some of the delays in bookings sounds like it's not, too broad based, maybe a little more focused in the transportation segment, but could you just give a little bit more color there, it sounds like you're still somewhat optimistic of growing orders for the year. Then if you can also just touch on, kind of early read on tariffs and what that, means for you, but also as you kind of compete in the market as well.

是的，早安。感謝您回答這些問題。首先，對我來說，一些訂單延遲聽起來似乎並不是太廣泛，可能更集中在運輸領域，但您能否再多講一點，聽起來您對今年的訂單增長仍然有些樂觀。那麼，如果您也可以稍微談一下，了解關稅以及這對您意味著什麼，同時也了解您在市場上的競爭情況。

Yeah, thanks. Many of our markets have these large projects that are part of the order mix, and that can create a lumpiness as order books on a particular day and then delivers over multiple weeks and quarters on into the future. And so, we continue to see strong activity in quoting and interest from customers that are out there. And so, we're seeing that the order mix and are still optimistic on future growth of the of the business as a whole. So, I would attribute most of this to large order mix and timings as far as tariffs.

是的，謝謝。我們的許多市場都有這些大型項目，它們是訂單組合的一部分，並且可能會產生不均勻性，因為訂單在特定日期預訂，然後在未來的幾週和數個季度內交付。因此，我們繼續看到客戶的報價活動和興趣十分活躍。因此，我們看到訂單組合，並且仍然對整個業務的未來成長持樂觀態度。因此，我認為大部分原因在於大訂單組合和關稅時間。

Yeah, that's a dynamic environment. Overall, though, what electronics as being a US manufacturer, we've been paying tariffs on semiconductors, which was the focus, especially out of China, which was the focus of previous tariff initiatives by the last administration as well as the first Trump administration.

是的，這是一個動態的環境。總體而言，作為美國電子產品製造商，我們一直在支付半導體關稅，這是焦點，尤其是來自中國的產品，這也是上屆政府以及第一屆川普政府先前關稅舉措的重點。

The current tariffs are broader based across all products coming in from China, and that we think hits our competitors harder than us because we've already been paying some tariff, and these are new to them in their world. So maybe a little opining on tariffs. In no way prescribe that I have a prediction of where all that's going, but a little bit of a comment on orders.

目前的關稅範圍廣泛，涵蓋所有來自中國的產品，我們認為這對我們的競爭對手的打擊比我們更大，因為我們已經支付了一些關稅，而這些關稅對他們來說是新鮮事物。所以也許對關稅有一點看法。我絕不意味著我對所有事情的走向有預測，只是對命令做了一點評論。

Any of that helpful?

這些有幫助嗎？

Yeah, no, that was thanks Reece. And then, maybe you touched on it a little bit with the high school segment, but the shift to kind of digital there, can you just talk about, where that market is, in general from a conversion standpoint, the drivers behind that, maybe from like a payback perspective and just, what that means for you, traditional boards versus video boards from like a content perspective just as we think about framing that growth opportunity.

是的，不，這要感謝 Reece。然後，也許您稍微談到了高中部分，但那裡向數位化的轉變，您能否從轉換的角度談談這個市場在哪裡，其背後的驅動因素是什麼，也許從回報的角度來看，這對您來說意味著什麼，從內容的角度來看，傳統板與視頻板，就像我們在考慮構建增長機會一樣。

Yeah, the high school market is very exciting. We've been, it's really a wide open. Those customers have been buying what we call standard fixed digit scoreboards from us for years, but they have aspired to have more of a video, what they see when they go to a professional stadium or college, they'd like to see in their local high school stadium or gymnasium. And we're seeing that interest as the quality of the product has continued to improve, and the prices have continued to become more competitive.

是的，高中市場非常令人興奮。我們去過，那裡真是一片開闊。這些客戶多年來一直在從我們這裡購買所謂的標準固定數字記分牌，但他們渴望獲得更多的視頻，他們希望在專業體育場或大學看到的東西，也希望在當地的高中體育場或體育館看到的東西。隨著產品品質不斷提高，價格也越來越具有競爭力，我們看到了人們的興趣。

More and more of these schools and organizations are reaching and installing video display systems. We think detronics has the best round out of. Display systems, control systems, and both the technical and professional services to make these types of customers successful. And of the 10,000 high schools that are out there today, we think fewer than 10% of them have converted one of their facilities to video as we sit today.

越來越多的學校和組織正在安裝視訊顯示系統。我們認為 detronics 的表現最佳。顯示系統、控制系統以及技術和專業服務，使這些類型的客戶成功。我們認為，在當今的 10,000 所高中中，只有不到 10% 的學校將其設施之一轉換為視訊設施。

And I might be low on 10,000 high schools. It might be more than that out there.

我可能還缺少 10,000 所高中。外面的情況可能不只這些。

All right, no, that's good color, thanks. And then, just on kind of capital allocation, it sounds like we'll get more color here in the coming quarters, but see you bought back some stock in the quarter, but just given, where the balance sheet's at, maybe just thoughts on kind of capital allocation at a high level with where that's all.

好的，不，顏色不錯，謝謝。然後，就資本配置而言，聽起來我們會在接下來的幾個季度中獲得更多細節，但看到你在本季度回購了一些股票，但考慮到資產負債表的情況，也許只是對高水平資本配置的思考，僅此而已。

Yeah, we continue to work with the board on capital allocation on a quarterly by quarterly basis, and we will, as you said, we will invest in the best way to get value out of our CapEx. How would we invest in just different development activities?

是的，我們將繼續與董事會合作，按季度進行資本配置，正如您所說，我們將以最佳方式進行投資，以從資本支出中獲取價值。我們如何投資不同的開發活動？

We continue to look at especially tuck in merger and acquisition opportunities, and then of course ways to more directly give value back to shareholders through stock buybacks and other vehicles.

我們將繼續關注併購機會，當然還有透過股票回購和其他方式更直接地向股東回饋價值的方法。

All right, that sounds good thanks for taking the questions I'll turn it over.

好的，聽起來不錯，感謝您回答這些問題，我會把它轉交給您。

Thank you one moment for our next question.

感謝您的提問。

Our next question comes from my line of Anja Soderstrom of Sidoti. Your line is now open.

我們的下一個問題來自 Sidoti 的 Anja Soderstrom。您的線路現已開通。

Hi, and thank you for taking my questions. So, You mentioned the internationals picking up. Are you seeing that continuing now into the fourth quarter or how is that trending?

您好，感謝您回答我的問題。所以，您提到了國際化的興起。您是否認為這種情況會持續到第四季或趨勢如何？

Yeah, International has been soft for us really since the pandemic, and we've been seeing really good quoting activity, but a softness in turning those quotes into orders in prior periods. We're continuing to see an increase in that conversion rate, and we believe that absent a geopolitical incident that that trend is likely to continue.

是的，自從疫情爆發以來，國際業務對我們來說確實一直很疲軟，我們看到了非常好的報價活動，但在前期將這些報價轉化為訂單方面卻比較疲軟。我們持續看到轉換率的上升，我們相信，如果沒有地緣政治事件，這種趨勢可能會持續下去。

And is there a specific region that's doing better or that you that you're calling out or?

是否有某個特定地區表現更好，或者您正在呼籲什麼？

Our strongest regions have historically been Europe, the Middle East, as well as Australia, and we're seeing good activity in those areas as well as some of the other areas outside.

我們歷史上最強大的地區是歐洲、中東以及澳大利亞，我們看到這些地區以及其他一些地區都表現良好。

Okay, thank you, and you also mentioned that you expect to spend about $40 million in annual product product development and so you're going to spend a little bit more on that it seems like, but are you also implementing some digital transformation initiatives there that might make it, also more efficient in addition to pay to spending more money on it?

好的，謝謝。您還提到，您預計每年在產品開發上花費約 4000 萬美元，所以看起來您在這方面的投入會稍微多一些，但是，除了投入更多資金之外，您是否也在那裡實施了一些數位轉型計劃，這可能會使其更有效率？

We believe our digital transformation will really positively impact our operations and really every area of Daktronics. And so, as we move forward into the future, we believe there will be efficiencies to be gained in product development, in our sales, in our services, as well as in our fulfilment operations.

我們相信，我們的數位轉型將對我們的營運以及達科電子的各個領域產生積極的影響。因此，隨著我們邁向未來，我們相信產品開發、銷售、服務以及履行營運的效率都將提高。

And I'll add [Anya] that in our product development line too there is about roughly half or a little less is spent on the control system side which adds some of these unique features and helps the customer automate or put up content, so that that's also true.

我還要補充一點 [Anya]，在我們的產品開發線上，大約有一半或更少的資金花在了控制系統方面，這增加了一些獨特的功能，並幫助客戶實現自動化或發佈內容，所以這也是事實。

Okay, thank you. That's helpful. And then in terms of you mentioned also you're renegotiating the supply agreements and scrapping of the entire supply chain, could you just elaborate on that?

好的，謝謝。這很有幫助。然後，就您提到的重新談判供應協議和廢除整個供應鏈而言，您能詳細說明一下嗎？

Sure, we have a practice of having regular. Supplier meetings, but we're taking a more aggressive approach as we look to the future for our volumes and have started at the top of the supplier list and have worked our way through to make sure we're maximizing our terms and conditions for the company.

當然，我們有定期的慣例。供應商會議，但我們採取了更積極的方式，因為我們著眼於未來的產量，並從供應商名單的頂部開始，並努力確保最大限度地為公司提供條款和條件。

Okay, thank you. I'll get back into you.

好的，謝謝。我會回到你身邊。

Thank you one moment for our next question. Our next question comes from the line of Mac Furst Singular Research. Your line is now open.

感謝您的提問。我們的下一個問題來自 Mac Furst Singular Research。您的線路現已開通。

Yeah, hi, this is Mac Furst for Singular Research. Quick question on the international markets. You said that the activity has picked up internationally, and you mentioned a couple of continents, Europe, Australia, but you said that international, the closure rate is not hasn't picked up.

是的，大家好，我是 Singular Research 的 Mac Furst。關於國際市場的快速提問。您說國際上的活動有所回升，並且您提到了幾個大洲，歐洲、澳大利亞，但您說國際上的關閉率並沒有上升。

How would you explain that go up, but--.

你會如何解釋這種上漲，但是——。

Maybe I should clarify my comments, Mac, is that we've been seeing strong quoting activity, but the conversion from quote to order hasn't been as strong in the past periods, but we've been seeing that picking up in the in the prior quarter and in the we believe it's still going on in the current quarter. And that absent, some geopolitical event, we believe that we will see a higher conversion rate of quotes in coming quarters as well.

也許我應該澄清一下我的評論，麥克，我們一直看到強勁的報價活動，但從報價到訂單的轉換在過去的時期並不那麼強勁，但我們看到上一季度的轉換有所回升，我們相信本季度仍在繼續。而且，如果沒有發生一些地緣政治事件，我們相信未來幾季的報價轉換率也會更高。

Thank you, Reece. I did have a question about, yeah, that answers my question. I did have a question about the import tariffs, but the previous analyst, took my question. So, thank you very much for answering it previously. Thank you.

謝謝你，里斯。我確實有一個問題，是的，這回答了我的問題。我確實對進口關稅有疑問，但先前的分析師回答了我的問題。所以，非常感謝您之前的回答。謝謝。

Appreciate it. Thank you. I'm showing no further questions at this time. I would now like to turn it back to Reece Kurtenbach for closing remarks.

非常感謝。謝謝。我目前沒有其他問題。現在我想請 Reece Kurtenbach 作最後發言。

Well, thank you. I appreciate everybody who attended today's conference. I would like to let you know that we do have investor outreach activities planned in the next quarter, including a virtual Sidoti small cap conference on March 19th and the Craig Hallam annual Institutional Investor conference on May 18th in Minneapolis.

好的，謝謝你。我感謝參加今天會議的所有人。我想告訴大家，我們確實計劃在下個季度開展投資者拓展活動，包括 3 月 19 日舉行的虛擬 Sidoti 小型股會議和 5 月 18 日在明尼阿波利斯舉行的 Craig Hallam 年度機構投資者會議。

We will host our next earnings call when we release our year-end results, and then I might just say a few words that as you saw and as Andrew mentioned earlier in the call, I am stepping back from my role at Dektronics. Appreciated interacting with all of you each quarter over the last 12 years, and I believe Dektronics is in a great spot and look forward to seeing its success in the ongoing future.

我們將在發布年終業績時召開下一次收益電話會議，然後我可能會說幾句話，正如您所看到的以及安德魯在電話會議中早些時候提到的那樣，我將辭去我在 Dektronics 的職務。感謝過去 12 年裡每季與大家的互動，我相信 Dektronics 處於良好的發展勢頭，並期待看到它在未來取得成功。

I wish you all a great spring and you will be talking with Brad Weeman and Howard Atkins at our next call. Thanks, everyone, and bye.

我祝大家春天愉快，下次通話時您將與布拉德·威曼和霍華德·阿特金斯交談。謝謝大家，再見。

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

感謝大家參加今天的會議。這確實結束了程序；您現在可以斷開連接了。