Daktronics Inc (DAKT) 2025 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Daktronics fourth-quarter fiscal year '25 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加達科電子 25 財年第四季財務業績電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference over to your speaker today, Carla Gatzke, Corporate Secretary. Please go ahead.

現在，我想將會議交給今天的發言人、公司秘書卡拉·加茨克 (Carla Gatzke)。請繼續。

Thank you, operator. Good morning, everyone. Thank you for participating in our fourth quarter earnings conference call. Today's presentation -- during today's presentation, we will make forward-looking statements reflecting our expectations and plans about our future 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.

謝謝您，接線生。大家早安。感謝您參加我們的第四季財報電話會議。今天的演示—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 2 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 2 張投影片、我們的新聞稿和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 a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure in the appendix to the accompanying presentation slides, which may be found on the Investor Relations page of our website at www.daktronics.com. Our earnings release for the 2025 fourth quarter, which is furnished to the SEC on a Form 8-K this morning also contains certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable measures -- 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 Relations page of our website.

在本次演示中，我們也將參考非公認會計準則財務指標。您可以在隨附簡報的附錄中找到每項非公認會計準則 (Non-GAAP) 指標與最直接可比較的公認會計準則 (GAAP) 指標的對帳表，該附錄可在我們網站 www.daktronics.com 的投資者關係頁面上找到。我們今天上午以 8-K 表格提交給美國證券交易委員會 (SEC) 的 2025 年第四季財報也包含某些非公認會計準則 (Non-GAAP) 財務指標。這些非 GAAP 財務指標與最直接可比較指標——GAAP 財務指標的對帳以及使用非 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 Andrew Siegel, Chairman of the Board, for some introductory remarks.

我會把電話轉給董事會主席安德魯‧西格爾 (Andrew Siegel)，請他做一些介紹性發言。

Thanks, Carla, and good morning, everybody, from here in Brookings. I thought maybe I'd just take a few brief minutes to set the stage. On our last quarter call, we shared several pieces of important news beyond our earnings report.

謝謝，卡拉，布魯金斯的各位早安。我想我可能只需要花幾分鐘來做好準備。在上一季的電話會議上，除了收益報告之外，我們還分享了幾條重要新聞。

First, the senior management transition in which your Board named a well-respected company veteran who has led the group of our largest and most profitable segments, Brad Wiemann as Interim CEO. We accelerated our financial transformation by asking Director Howard Atkins to take on the acting CFO role until our new CEO can make their own Chief Financial Officer selection.

首先，在高階主管變動中，董事會任命了一位備受尊敬的公司資深人士、曾領導我們最大、最賺錢的部門的布拉德·維曼 (Brad Wiemann) 擔任臨時執行長。我們要求董事 Howard Atkins 擔任代理財務官，直到新任執行長能夠自行選擇財務官，從而加快了我們的財務轉型。

And why you're hearing my voice today, he asked me to step up to become Chairman of the Board. Why does that matter? Well, I'm a non-insider shareholder who first invested on the conviction that the company was undervalued. I continue to view the stock as significantly undervalued, and I'm committed to closing that gap.

今天你們之所以能聽到我的聲音，是因為他要我擔任董事會主席。這有什麼關係？好吧，我是一名非內部股東，最初投資是因為確信該公司被低估了。我仍然認為該股票被嚴重低估，我致力於彌補這一差距。

Secondly, at the time, we announced that we had reached an agreement with our largest shareholder, Alta Fox, pursuant to which the company terminated our poison pill, converted to 9% subordinated debt. Undertook a comprehensive review of our exec compensation and added Alta Fox's appointee, Peter Feigin, President of the Milwaukee Bucks of the NBA to our Board.

其次，當時我們宣布已與我們的最大股東Alta Fox達成協議，根據該協議，該公司終止了我們的毒丸計劃，並將其轉換為9％的次級債務。對我們的高階主管薪酬進行了全面審查，並將 Alta Fox 任命的 NBA 密爾瓦基公鹿隊總裁 Peter Feigin 加入我們的董事會。

Peter is terrific. He jumped in right away with the voice of the customer to provide insight and guidance, particularly to our live events team. So I want to thank Connor Haley of Alta Fox for that recommendation for providing the financing like many of you have reached out for continuing to offer constructive ideas about the company's future.

彼得太棒了。他立即以客戶的聲音提供見解和指導，特別是對我們的現場活動團隊。因此，我要感謝 Alta Fox 的 Connor Haley 提出的建議，感謝他提供融資，就像你們中的許多人一樣，感謝你們繼續為公司的未來提供建設性的想法。

Third, we reincorporated the company in Delaware, where corporate law is well understood, clear and predictable. This re-domestication was accomplished with the overwhelming approval of shareholders, which reflects its importance. to supporting our ongoing business transformation plan while flexibly protecting shareholder interests. Then on top of this transition and transformation, another key word was thrown in the mix during the past almost three months for us, along with most US manufacturers, I'm taking it personally, that created many and multivariate challenges.

第三，我們在特拉華州重新註冊了公司，那裡的公司法易於理解、清晰且可預測。這次重新本土化是在股東的壓倒性支持下完成的，這反映了其對支持我們正在進行的業務轉型計劃同時靈活保護股東利益的重要性。然後，除了這種轉變和轉型之外，在過去近三個月裡，另一個關鍵字又出現在我們以及大多數美國製造商面前，我個人認為，這給我們帶來了許多多元的挑戰。

Those challenges were met and managed by the executive team extraordinarily well. Seeing how quickly and often the landscape changed since Liberation Day, it was really remarkable how the potential impact from so many vectors and just the overall uncertainty was expertly met by this team.

執行團隊出色地應對並處理了這些挑戰。看到自解放日以來情況變化如此之快、如此頻繁，這支團隊如此巧妙地應對瞭如此多因素的潛在影響以及整體不確定性，真是令人驚嘆。

So I can report to you that our fourth fiscal quarter was in addition to being transitional transformation and reactive to the tariff policy uncertainty was, in fact, a quarter of strength, stability, and optimism. There actually aren't sufficient words that I can come up with at least to describe what Brad and Howard and the entire team managed to accomplish in these few short months, but you can clean from our order and backlog growth and absence of upheaval. Further, as you'll hear about shortly from Brad and Howard, our business and digital transformation remains on track to achieve the objectives we set on the last quarter call. I want to thank the entire senior leadership team for their diligence and their steadiness navigating this transition.

因此，我可以向你們報告，我們的第四財季除了過渡轉型和對關稅政策不確定性的反應之外，實際上是一個充滿力量、穩定和樂觀的季度。事實上，我實在無法用足夠的詞語來描述布拉德、霍華德和整個團隊在這短短幾個月內所取得的成就，但您可以從我們的訂單和積壓增長以及沒有發生任何動盪中看出這一點。此外，正如您很快就會從布拉德和霍華德那裡聽到的那樣，我們的業務和數位轉型仍在按計劃進行，以實現我們在上個季度電話會議上設定的目標。我要感謝整個高階領導團隊在這過渡過程中的勤奮與穩定。

Personally, I can tell you that I've come to appreciate the character of this team, their loyalty of the company and its stakeholders and their openness to executing the change that this transformation plan is now driving. Now it doesn't show up on the balance sheet, but it's an incredible asset, nonetheless, and I thank the team. Our fourth quarter results reflect this focus and determination. The Daktronics Board remains committed to the shareholders it represents just as our executive team remains committed to our customers and to maintaining and further developing the unique qualities that make Daktronics the best in the business. And yes, to transforming our operations in order to achieve our revenue growth, margin expansion, and ROIC targets.

就我個人而言，我可以告訴你，我開始欣賞這個團隊的性格、他們對公司及其利益相關者的忠誠度以及他們對執行這項轉型計劃所推動的變革的開放態度。現在它沒有出現在資產負債表上，但它仍然是一筆不可思議的資產，我感謝團隊。我們的第四季業績體現了這種專注和決心。達科電子董事會始終致力於服務其所代表的股東，正如我們的執行團隊始終致力於服務我們的客戶，並致力於保持和進一步發展使達科電子成為業內最佳企業的獨特品質。是的，我們要轉變營運方式，以實現營收成長、利潤率擴大和投資報酬率目標。

I mentioned a moment ago that the company had undertaken a comprehensive executive compensation review. That's now been completed. And you will have seen this morning some detail of the plan the Board has adopted in the 8-K we filed. Most basically, we're making our compensation more competitive. Obviously, we're in the market with the search for CEO and to follow a CFO. So we do have an appreciation for where market is.

我剛才提到，公司已經進行了全面的高階主管薪酬審查。現在已經完成了。今天上午，大家應該已經看到了董事會在我們提交的 8-K 文件中採納的計劃的一些細節。最基本的是，我們正在使我們的薪酬更具競爭力。顯然，我們在市場上尋找執行長並追隨財務長。所以我們確實了解市場的現況。

But more than just making sure comp is competitive, so we attract first-rate talent. The objective is to align the comp plan with the goals of the transformation. So primarily, the principles of the plan are meant to further incent our sales leaders toward driving revenue and for functional leaders to achieve the margin expansion and shareholder return goals of the transformation. So we've now implemented a new exec compensation philosophy, again, with the help of nationally recognized consultants who match best practices to the company's culture.

但我們不僅要確保薪資具有競爭力，還要吸引一流的人才。目標是使薪酬計劃與轉型目標一致。因此，該計劃的主要原則是進一步激勵我們的銷售領導者推動收入成長，並激勵職能領導者實現轉型帶來的利潤擴張和股東回報目標。因此，我們現在又在全國知名顧問的幫助下實施了新的高階主管薪酬理念，將最佳實踐與公司文化結合。

That philosophy uses a full range of compensation and incentive tools to maximize company-wide performance. On the CEO search, in particular, we don't yet have anything to announce with respect to that, but the search committee is very pleased with the quality and quantity of candidates who have responded positively to the opportunity and express their excitement about the company and the possibilities before us. So we're on track. And personally, I'm feeling good about the temporal progress here.

這一理念利用全方位的薪酬和激勵工具來最大限度地提高全公司的績效。特別是在執行長搜尋方面，我們目前還沒有任何消息可以宣布，但搜尋委員會對候選人的品質和數量感到非常滿意，他們對這個機會做出了積極回應，並對公司和我們面前的可能性表達了興奮之情。所以我們的進展順利。就我個人而言，我對這裡的時間進展感到滿意。

So with those preliminaries, let me turn the call to Brad Wiemann, our President -- our Interim President and CEO. Brad?

因此，在完成這些準備工作後，請允許我將電話轉給我們的總裁——臨時總裁兼執行長 Brad Wiemann。布拉德？

Okay. Thank you, Andrew, and good morning, everyone. Thank you for joining our fourth quarter fiscal 2025 call. I'm on the call with Howard Atkins, our Board member and Acting Chief Financial Officer, and we will be reviewing our fiscal fourth quarter and 2025 results accomplishments and then take your questions. Please turn to slide 3 of the presentation, and we'll get started.

好的。謝謝你，安德魯，大家早安。感謝您參加我們的 2025 財年第四季電話會議。我正在與我們的董事會成員兼代理財務長霍華德·阿特金斯 (Howard Atkins) 通話，我們將回顧我們第四季度和 2025 年的財務業績，然後回答您的問題。請翻到簡報的第 3 張投影片，我們就開始吧。

The main message I want to share with you today is emphasized here. We had a strong finish to a transformational year. We replenished our backlog in the fourth quarter, we were up 29% from Q3 and up 17% year-over-year broad-based. Through strong customer demand, our teams drove strong order growth in the second half with $50 million in new order flow booked across all segments in the fourth quarter alone. This supported 15% sequential sales growth from the third quarter, replenished our backlog and is setting us up well as we head into fiscal 2026.

我今天想和大家分享的主要訊息就在這裡強調。我們圓滿結束了轉型之年。我們在第四季度補充了積壓訂單，較上季成長了 29%，較去年同期成長了 17%。透過強勁的客戶需求，我們的團隊在下半年推動了強勁的訂單成長，光是第四季度所有部門的新訂單流量就達到 5,000 萬美元。這支持了第三季 15% 的連續銷售成長，補充了我們的積壓訂單，並為我們進入 2026 財年做好了準備。

Additionally, we work to preserve gross margins through improved value-based pricing and increasing manufacturing efficiencies, including better aligning our capacity to demand and lowering manufacturing costs, which improved our segment's contribution margins. This minimized the effect of year-over-year volume decrease resulting from lower Q3 orders really related to an atypical delayed baseball ordering season and resulted in adjusted operating income of $6 million. The business and digital transformation plan is in place. Our execution of the plan is on track and driving results, and we more than doubled the fourth quarter operating cash flow year over year.

此外，我們致力於透過改進基於價值的定價和提高製造效率來維持毛利率，包括更好地根據需求調整我們的產能和降低製造成本，從而提高我們部門的貢獻利潤率。這最大限度地減少了由於第三季訂單減少（實際上與棒球訂購季節異常延遲有關）而導致的同比銷量下降的影響，並導致調整後的營業收入達到 600 萬美元。業務和數位轉型計劃已經到位。我們的計劃執行進展順利，並取得了成果，第四季度的經營現金流同比增長了一倍以上。

Turning to slide 4. We'll talk about our market verticals. In live events, we won major new projects. Some are mentioned here. These include a variety of applications for main video, auxiliary video, fascia, ribbon, interior displays, a wide variety of products and applications.

翻到幻燈片 4。我們將討論我們的垂直市場。在現場活動中，我們贏得了重大新項目。這裡提到了一些。這些包括主視訊、輔助視訊、面板、帶狀顯示、室內顯示等各種應用以及各種各樣的產品和應用。

Repeat -- these are repeat customers. The one is only on this one, University of Illinois, a very large multimillion dollar system. You may have seen that in our news release. The rest are new customers, all of which are multimillion dollar systems, including Charles Schwab Field in Omaha, as you likely known as the Home of College World Series. Miami Freedom Park, home of the Inter-Miami Football Club, the University of Nebraska Football. Surprisingly, this is our first install at the University of Nebraska. We're happy to do it.

重複——這些是回頭客。就這一個，伊利諾大學，一個非常龐大、耗資數百萬美元的系統。您可能已經在我們的新聞稿中看到過。其餘的都是新客戶，都是價值數百萬美元的系統，包括位於奧馬哈的嘉信理財球場（Charles Schwab Field），您可能知道它是大學世界大賽的主場。邁阿密自由公園，邁阿密國際足球俱樂部、內布拉斯加大學足球隊的主場。令人驚訝的是，這是我們在內布拉斯加大學的第一次安裝。我們很樂意這麼做。

We're replacing competitor's display on the north end. And this is, like I said, first video at that stadium. Cincinnati Convention Center purchased seven 15-millimeter exterior displays. Due to the atypical delay in baseball activity, and that was industry-wide, not just us, during the first year -- during the year, orders for fiscal 2025 decreased 12% year over year and for Q4 decreased 11% year over year, following a record FY24 and fourth quarter. We continue to enhance our products and services as we expect continued growth in the live events business for both in-bowl applications, but also outside the bowl as more emphasis is placed on entertaining and informing fans through digital technology throughout the venue, which aligns with our control system capabilities, our service and subscription offerings, our narrow pixel pitch product offerings.

我們正在更換北端競爭對手的顯示器。正如我所說，這是在該體育場拍攝的第一段影片。辛辛那提會議中心購買了七台 15 毫米戶外顯示器。由於棒球活動出現異常延遲，而且這種情況不僅限於我們，而是整個行業都出現了延遲，在第一年——2025 財年的訂單同比下降 12%，第四季度的訂單同比下降 11%，而 2024 財年和第四季度的訂單均創下了歷史新高。我們將繼續增強我們的產品和服務，因為我們預計現場活動業務不僅在碗內應用，而且在碗外也將繼續成長，因為整個場地更加重視透過數位技術來娛樂和通知粉絲，這與我們的控制系統功能、我們的服務和訂閱產品以及我們的窄像素間距產品產品相一致。

Our teams continue to focus on winning business aligned with our corporate transformation objectives on long-term profitable growth. In the picture here is Jack Trice Stadium at the University of Iowa, where fans will be welcomed with new products. We're switching over from our previously installed 15-millimeter high-definition technology to a 13-millimeter high-definition technology. The large screen in this project will be 36 feet by 157 feet.

我們的團隊繼續專注於贏得與我們長期獲利成長的企業轉型目標一致的業務。圖為愛荷華大學的傑克特賴斯體育場，這裡將用新產品歡迎球迷。我們正在從先前安裝的 15 毫米高清技術轉換為 13 毫米高清技術。該項目的大螢幕尺寸為 36 英尺 x 157 英尺。

In our commercial business, all areas saw demand and success in order wins with orders for the year increasing 31% from last year and for the fourth quarter, increasing 44% from the fourth quarter of 2024. This business consists of out-of-home and on-premise advertising sales and larger advertising displays, which we call spectaculars, conducted primarily through channel partners such as signed company resellers and AV integrators.

在我們的商業業務中，所有領域都看到了需求並取得了訂單成功，全年訂單比去年增長了 31%，第四季度比 2024 年第四季度增長了 44%。該業務包括戶外和室內廣告銷售以及更大型的廣告展示（我們稱之為「spectacles」），主要透過簽約公司經銷商和 AV 整合商等通路合作夥伴進行。

In the on-premise area, customers are successfully transitioning to our next-generation [field price] products, which offer quick deliveries and feature-rich enhancements. Demand in the out-of-home market has been strong throughout the year, which reflects greater optimism that has been developing both in the national and independent billboard operators who are more often choosing Daktronics due to our recognized brand strength and image quality and reliability as well as our service responsiveness. We released the next-generation billboard product in the fourth quarter, which has been well received by customers. Our investments in independent channel continue to pay off. We continue to bring additional AV partners on and are seeing double-digit order growth from this channel.

在現場區域，客戶正在成功過渡到我們的下一代[現場價格]產品，該產品提供快速交付和功能豐富的增強功能。戶外廣告市場的需求全年都保持強勁，這反映出國家和獨立廣告牌運營商的樂觀情緒日益增強，他們更多地選擇達科，因為我們擁有公認的品牌實力、圖像質量和可靠性以及我們的服務響應能力。我們在第四季度發布了下一代廣告看板產品，受到了客戶的一致好評。我們對獨立通路的投資持續獲得回報。我們將繼續引入更多的 AV 合作夥伴，並看到來自該管道的訂單實現了兩位數的成長。

This is a focus area for our indoor application growth. In the picture here is Syracuse University eSports facility. This is a direct view LED video wall, bringing eSports and gaming to life at Syracuse. In our transportation business, orders tend to be large, which creates order variability from quarter to quarter. Orders decreased 10% from last year, but increased 14% for the fourth quarter, driven by notable wins, a multimillion-dollar roadway project for an airport, intelligent transportation system win in California, which drives the implementation and deployment of transportation technology in California, where we are gaining acceptance of our products for intelligent transportation over-the-roadway use.

這是我們室內應用成長的重點領域。圖中是雪城大學電競設施。這是一面直觀的 LED 視訊牆，讓電子競技和遊戲在錫拉丘茲煥發生機。在我們的運輸業務中，訂單量往往很大，這導致每季的訂單量都有差異。訂單量較去年同期下降了 10%，但第四季度增長了 14%，這得益於顯著的訂單，包括數百萬美元的機場道路項目、加州的智能交通系統訂單，這些訂單推動了加州交通技術的實施和部署，我們的產品在道路智能交通領域的應用越來越受到認可。

We're also strengthening the airport market pipeline developed through our strategic relationships. This growth is being driven by customers interested in our chip-on-board solutions. In the picture here is a rather typical display for our Vanguard ITS roadway displays at Texas Department of Transportation. Going forward, we are focused on growing our ITS market by winning new agency approvals. The Buy America Act, BAA continues to go into full effect in October of 2026. We expect to benefit as a US manufacturer, and our teams are actively promoting the Buy America Act. Our adjacent growth plans are on track as we deliver chip-on-board solutions across multiple markets.

我們也透過策略關係加強了機場市場通路的開發。這一增長是由對我們的板載晶片解決方案感興趣的客戶推動的。圖中顯示的是德州交通部 Vanguard ITS 道路顯示器的典型情況。展望未來，我們致力於透過贏得新機構的批准來擴大我們的 ITS 市場。《購買美國產品法案》（BAA）將於 2026 年 10 月全面生效。我們希望作為美國製造商從中受益，我們的團隊正在積極推動「購買美國產品法案」。隨著我們向多個市場提供板載晶片解決方案，我們的相鄰成長計劃正在順利進行。

International. Our international business, which serves all the end markets of our domestic markets, which we serve outside of North America has been an area of concentration and focused development for the past several quarters. These efforts are paying off with orders growing 32% from last year and more than doubling from Q4 of last year. Our international orders increased every quarter throughout FY25, and we reached a peak in the fourth quarter coming in nearly at $25 million. Our largest growing market in FY25 were advertising. Fourth quarter from this was the largest quarter for advertising orders. This was driven by orders from customers in Saudi Arabia, UAE, Germany, Serbia, UK, Georgia, Australia for both new and replacement displays.

國際的。我們的國際業務服務於我們國內市場的所有終端市場，這些市場位於北美以外，是過去幾個季度我們重點關注和重點發展的領域。這些努力得到了回報，訂單量比去年同期增長了 32%，比去年第四季增長了一倍多。2025 財年，我們的國際訂單每季都在增加，第四季達到峰值，接近 2,500 萬美元。我們 25 財年成長最快的市場是廣告。第四季是廣告訂單最多的一個季度。這是由沙烏地阿拉伯、阿聯酋、德國、塞爾維亞、英國、喬治亞、澳洲的客戶訂購新顯示器和替換顯示器所推動的。

In our Events segment, we had -- we won a very large multimillion-dollar project, Aramco stadium at Al Khobar, Saudi Arabia, a planned multipurpose facility. Our products were specified into those projects. In the Industry segment, we won multiple command and control projects across the Middle East throughout fiscal year '25. Pictured here is a recent installation at Al Arabiya in Dubai, an out-of-home company there.

在我們的活動部門，我們贏得了一個價值數百萬美元的大型項目，即位於沙烏地阿拉伯阿爾科巴爾的阿美體育場，這是一個計劃中的多功能設施。我們的產品被指定用於這些項目。在工業領域，我們在 25 財政年度贏得了中東地區的多個指揮和控制專案。圖中是杜拜戶外廣告公司 Al Arabiya 最近安裝的裝置。

In our High School Park and Recreation business, we drove record orders for the year and the quarter. Orders grew 19% for the year and 33% for the fourth quarter. Industry-leading value propositions allow the sales team to implement value selling, which separates us from our competition. We are experiencing strong adoption of professional services, particularly in curriculum development and sports marketing. The market continues to convert to full video indoor and outdoor. Schools of all sizes are purchasing video with the help of Daktronics Sports Marketing. In addition, Daktronics Curriculum, a Software-as-a-Service product, which brings in recurring revenue, teaches students career-ready production skills. Pictured here is Frederic School District in Frederic, Wisconsin.

在我們的高中公園和娛樂業務中，我們推動了年度和本季創紀錄的訂單。全年訂單成長 19%，第四季訂單成長 33%。業界領先的價值主張使銷售團隊能夠實施價值銷售，這使我們在競爭中脫穎而出。我們正在大力推廣專業服務，特別是在課程開發和運動行銷方面。市場繼續向室內和室外全視頻轉變。各種規模的學校都在 Daktronics Sports Marketing 的幫助下購買影片。此外，Daktronics Curriculum 是一款軟體即服務產品，可帶來經常性收入，教導學生職業所需的生產技能。圖為威斯康辛州弗雷德里克市的弗雷德里克學區。

Turning to slide 5. Of course, new products and services are essential for our continued growth and value-added differentiation. In the fourth quarter, we released and sold new products, a digital billboard product and an outdoor video display system. These products leverage platform technology to reduce product complexity, leverage supply chains, and simplify both manufacturing and installation processes.

翻到幻燈片 5。當然，新產品和服務對於我們的持續成長和增值差異化至關重要。第四季度，我們發布並銷售了新產品、數位廣告看板產品和戶外視訊顯示系統。這些產品利用平台技術來降低產品複雜性、利用供應鏈並簡化製造和安裝流程。

Over to the right is the new digital billboard in New Orleans or Lamar. In addition, we are in the process of rolling out control system solutions. These include Live Switch, which provides video switching and replay for high school venues. In our fiscal year '26, our current year, we will continue to add capabilities to enable expansion into college and university applications.

右邊是新奧爾良或拉馬爾的新數位廣告看板。此外，我們正在推出控制系統解決方案。其中包括 Live Switch，它為高中場館提供視訊切換和重播。在我們的 26 財年，也就是當前年度，我們將繼續增加功能，以便擴展到學院和大學的應用程式。

The following, our cloud-based Software-as-a solutions control solution, which drives further recurring revenue. Venus Live, which brings new capability to our show control solution for live events. Show Control next generation, scoring, statistics, graphics, content creation, and display control and the photo in this picture shows a view of Display Studio, which is an in-game tool to display content across all the displays within the venue. Display Studio is a tool that is part of Daktronics events-focused show control solution. The photo from this picture is Acrisure Stadium, home of the Pittsburgh Steelers.

以下是我們基於雲端的軟體即解決方案控制解決方案，可帶來進一步的經常性收入。Venus Live 為我們的現場活動節目控制解決方案帶來了新功能。顯示控制下一代、得分、統計、圖形、內容創建和顯示控制，這張圖片中的照片展示了 Display Studio 的視圖，它是一種遊戲內工具，用於在場地內的所有顯示器上顯示內容。Display Studio 是 Daktronics 以事件為中心的顯示器控制解決方案的一部分的工具。這張照片中的照片是匹茲堡鋼人隊的主場阿克里舒爾體育場。

Turning to slide 6. With respect to business transformation, we made strong progress on these initiatives in the fourth quarter, and our implementation plan is on track and driving results. Actions we have taken to date include taking price adjustments, which I mentioned a moment ago, allowing us to preserve our value-based products and services positioning. Launch of SaaS trials to target customers, focused approach on prioritized growth areas, business verticals and geographies, driving faster inventory turnover and improved inventory efficiency by leveraging our platform designs to reduce complexity. Released a modernized service software system that will help us to enhance customer experience through better service management and enablement of self-service options.

翻到幻燈片 6。在業務轉型方面，我們在第四季度取得了重大進展，我們的實施計劃正在按計劃進行並取得成果。我們迄今為止採取的行動包括我剛才提到的價格調整，這使我們能夠保持基於價值的產品和服務定位。針對目標客戶推出 SaaS 試用版，專注於優先成長領域、業務垂直領域和地理，利用我們的平台設計降低複雜性，加快庫存週轉速度並提高庫存效率。發布了現代化的服務軟體系統，將幫助我們透過更好的服務管理和自助服務選項來提升客戶體驗。

We are working on launching an AI-guided troubleshooting and technical services, making increased use of our purchasing power to improve our input costs and simplifying some of our products, which allows us to bring them to market more quickly. We more than doubled our operating cash flow in the fourth quarter and drove 54.5% growth in operating cash flow for the year, supported by the business transformation efforts as outlined.

我們正在致力於推出人工智慧引導的故障排除和技術服務，更多地利用我們的購買力來改善我們的投入成本，並簡化我們的一些產品，這使我們能夠更快地將它們推向市場。在業務轉型努力的支持下，我們第四季的營運現金流增加了一倍以上，全年經營現金流成長了 54.5%。

Turning to slide 7. Significant progress was made in digital transformation during fiscal year '25, the goal of which is increased internal efficiency and ease of purchasing for our customers. Our e-sales channel is in place, and we're adding new products and services. We're testing of our enterprise price performance management, which is now in implementation phase. We launched new control systems, as mentioned. Sales tool development is on track for Configure Price Quote, which we plan to have an initial release in the latter part of FY26.

翻到幻燈片 7。25財年，數位轉型取得了重大進展，目標是提高內部效率並方便客戶採購。我們的電子銷售管道已經到位，我們正在增加新的產品和服務。我們正在測試企業價格績效管理，目前正處於實施階段。如上所述，我們推出了新的控制系統。配置價格報價的銷售工具開發正在按計劃進行，我們計劃在 2026 財年後期發布初始版本。

Additionally, our plan over the next 6 to 12 months is to enable subscription management, upgrade our ERP, the enterprise performance management release for fulfillment performance reporting, customer data unification across all systems and data governance for better decision-making and regulation compliance.

此外，我們在未來 6 到 12 個月的計劃是實現訂閱管理、升級我們的 ERP、企業績效管理版本以實現績效報告、跨所有系統的客戶資料統一以及資料治理，以實現更好的決策和法規遵循。

Now I'll turn the call over to Howard Atkins, our acting Chief Financial Officer, to review our financials. Howard?

現在我將把電話轉給代理財務長霍華德·阿特金斯 (Howard Atkins)，來審查我們的財務狀況。霍華德？

Thank you, Brad, and thanks to all of you who are listening in today for your interest in the company. I will be starting my presentation for those of you who are following along with the deck on slide 8. In order to provide clarity about our underlying financial results, I'd like to first go over the nonrecurring and other special items that hit the income statement.

謝謝你，布拉德，也感謝今天收聽節目的所有人對公司的關注。對於那些正在觀看第 8 張投影片的觀眾，我將開始我的演講。為了清楚說明我們的基本財務結果，我想先介紹損益表中的非經常性項目和其他特殊項目。

During the year, we incurred $16.5 million in nonrecurring expenses in connection with various transformation initiatives. About half of those costs, $7.5 million to be precise, were incurred in the fourth quarter. The full year and fourth quarter special items break down as follows: first, we had consulting costs of $7.1 million in the full year and $1 million in the fourth quarter for the business and digital transformation initiatives that we've been talking about. The consulting engagements -- these consulting engagements were concluded successfully in the fourth quarter. The implementation is beginning to produce the intended results and no further consulting cost is being accrued at this time for these particular initiatives.

本年度，我們因各種轉型措施而產生了 1,650 萬美元的非經常性支出。其中約一半的成本（準確地說是 750 萬美元）發生在第四季。全年和第四季度的特殊項目細分如下：首先，我們全年的諮詢費用為 710 萬美元，第四季度的諮詢費用為 100 萬美元，用於我們一直在談論的業務和數位轉型計劃。諮詢業務－這些諮詢業務已於第四季成功結束。實施工作開始產生預期結果，目前這些特定措施尚未產生進一步的諮詢費用。

Next, we recorded expenses for various corporate governance matters, including legal and advisory costs for re-domiciling and shareholder relations of $3.9 million for the quarter and $6.8 million for the year. And finally, we recorded $2.6 million for both the fourth quarter and the full year for advisory, severance, and other compensation costs associated with the management transition that we announced in the end of the third quarter. All of these nonrecurring expenses flow through G&A expense, and therefore, they impacted pretax operating income. In addition to the above-the-line nonrecurring expenses, we took or incurred several other special noncash valuation adjustments, including the following -- we recorded a noncash benefit of $2.8 million and a charge of $22.5 million for the quarter and year, respectively, for the change in fair value of the convertible note due to its conversion and changes in the stock price over the fair value measurement period in the third and fourth quarter.

接下來，我們記錄了各種公司治理事項的費用，包括本季 390 萬美元和全年 680 萬美元的遷冊和股東關係的法律和諮詢費用。最後，我們在第四季度和全年記錄了 260 萬美元的諮詢費、遣散費以及與我們在第三季末宣布的管理層變動相關的其他薪酬成本。所有這些非經常性費用都流向一般及行政費用，因此影響了稅前營業收入。除了上述非經常性費用外，我們還採取或發生了幾項其他特殊的非現金估值調整，包括以下內容——由於可轉換票據的轉換以及第三季度和第四季度公允價值計量期間股價的變化，我們分別記錄了本季度和年度的 280 萬美元的非現金收益和 2250 萬美元的費用。

At year-end, we recorded a noncash provision for possible loan losses of $15.5 million on a loan to an affiliate in which we have a minority position. This was done at year-end 2025. These asset valuation impacts went through other income and therefore, impacted reported net income but not operating income. Finally, under GAAP, we reviewed all of our estimated costs for open warranties and overtime project contracts in effect as of our year-end reporting date for any additional expected costs due to the significantly higher reciprocal tariff rates that would have been in effect at that time at year-end, which impacted overtime revenue recognition and warranty expense. These tariff estimates impacted operating income negatively in the fourth quarter by $1.2 million. At the substantially lower tariff rates now under discussion in the recent pause period, this impact would largely be reversed.

截至年底，我們為向一家我們擁有少數股權的附屬公司提供的貸款計提了 1,550 萬美元的非現金準備金，以應對可能的貸款損失。這項工作將於 2025 年底完成。這些資產估值影響了其他收入，因此影響了報告的淨收入，但不會影響營業收入。最後，根據 GAAP，我們審查了截至年末報告日有效的所有開放保固和加班項目合約的預估成本，以查找由於年末時生效的互惠關稅稅率大幅提高而產生的任何額外預期成本，從而影響加班收入確認和保固費用。這些關稅估算對第四季度的營業收入產生了 120 萬美元的負面影響。在最近的暫停期內正在討論的大幅降低的關稅稅率下，這種影響將在很大程度上被逆轉。

On slide 9, making the adjustments for these nonrecurring expenses, adjusted operating income for 2025 was $50 million, still down from our record $87 million operating income in '24, but nevertheless, the second highest adjusted operating income year in the company's history. And more importantly, the second highest year in orders and net sales. As a percentage of revenue, adjusted operating income margin was 6.6% in 2025 versus 10.6% in 2024.

在第 9 張投影片上，對這些非經常性費用進行調整後，2025 年的調整後營業收入為 5,000 萬美元，雖然仍低於 24 年創紀錄的 8,700 萬美元營業收入，但儘管如此，這仍然是公司歷史上調整後營業收入第二高的年份。更重要的是，今年的訂單量和淨銷售額都排名第二。以收入百分比計算，調整後的營業收入利潤率在 2025 年為 6.6%，而在 2024 年則為 10.6%。

Let me talk a little bit now on slide 10 about revenue and particularly the revenue tailwind that we see coming into 2026. For those of you who haven't been tracking the company over time, let me first try to provide some perspective on orders and revenue.

現在，讓我在第 10 張投影片上稍微談談收入，特別是我們看到的 2026 年收入順風。對於那些沒有長期關注該公司的人，讓我先嘗試提供一些有關訂單和收入的觀點。

As the world returned to some semblance of normality as COVID receded several years ago, pent-up demand for our products and services resulted in significant post-COVID order growth between 2021 and 2024. Combined with our resolution of supply chain bottlenecks during that period, a recapitalization of the company, selective value-based price increases and new product introductions, the company emerged from that period a larger, healthier organization, which produced record sales and record profits in 2024 with some of that revenue completed in early 2025.

幾年前，隨著新冠疫情消退，世界逐漸恢復正常，對我們產品和服務的壓抑需求導致 2021 年至 2024 年期間新冠疫情后訂單大幅增長。結合我們在此期間解決的供應鏈瓶頸、公司資本重組、選擇性的基於價值的價格上漲和新產品的推出，公司在那段時期成為一個更大、更健康的組織，並在 2024 年創造了創紀錄的銷售額和創紀錄的利潤，其中部分收入在 2025 年初完成。

Now with orders in early '25 dipping below revenue for a bit, our revenue declined bottoming out in a seasonally soft third quarter of 2025. The team began rebuilding order flow in the third quarter of last year and particularly in the fourth quarter, with fourth quarter orders up 17% year over year from the fourth quarter of 2024. This growth was broad-based, resulting in a more diverse revenue mix and resulting in a product backlog at year-end 2025 of $342 million, up 8% from a high year-end 2024 backlog.

現在，由於 25 年初的訂單量略低於收入，我們的收入在 2025 年第三季季節性疲軟的情況下觸底。該團隊於去年第三季度，尤其是第四季開始重建訂單流，第四季的訂單量較 2024 年第四季年增 17%。這種成長基礎廣泛，帶來了更加多樣化的收入結構，並導致 2025 年底的產品積壓訂單達到 3.42 億美元，比 2024 年底的高積壓訂單增長 8%。

Now while this order growth did produce a 17% sequential increase in fourth quarter revenue from the third quarter, about $70 million of the third and fourth quarter orders will start generating revenue only when the projects have started in fiscal '26. The good news here is this is setting the stage for what is shaping up to be a solid revenue growth throughout the coming year, and we are encouraged additionally by the revenue trends that we see at the beginning of the new fiscal year.

雖然訂單成長確實使第四季營收較第三季環比成長了 17%，但第三季和第四季的訂單中約有 7,000 萬美元只有在 26 財年專案啟動後才會開始產生收入。好消息是，這為來年穩健的營收成長奠定了基礎，新財年開始時看到的營收趨勢也令我們感到鼓舞。

Let me now turn to slide 11, which addresses our balance sheet strength and talks a little bit about our capital allocation. We very firmly believe that maintaining a strong balance sheet is important to building a resilient business. Our balance sheet today is stronger than ever. In 2025, inventory was efficiently reduced, one of the quick win ideas from the business transformation project that we undertook last year.

現在我翻到第 11 張投影片，它討論了我們的資產負債表實力，並稍微談了談我們的資本配置。我們堅信，保持強勁的資產負債表對於打造有韌性的企業至關重要。我們今天的資產負債表比以往任何時候都更加強勁。2025年，有效降低庫存，這是我們去年進行的業務轉型專案的速效理念之一。

Over the year, manufacturing groups reduced inventory by 23%, now as sales revenue grows going forward, we would expect to begin adding to inventory again, but obviously now from a lower base than otherwise would have been the case. As previously reported, we converted the 9% subordinated note to common for the terms of that note and neutralize the additional common shares via open market share purchases. The retirement of the note, net-net will save about $1 million in annualized net interest expense versus today's short-term investment rates. We monitor our credit exposure to past due customer and vendor receivables on the balance sheet and to date, have not seen any discernible weakening.

在過去的一年裡，製造集團將庫存減少了 23%，現在隨著銷售收入的成長，我們預計會再次開始增加庫存，但顯然現在的基數比沒有增加基數時要低。如前所述，我們根據該票據的條款將 9% 次級票據轉換為普通股，並透過公開市場股票購買來中和額外的普通股。與今天的短期投資利率相比，該票據的贖回將淨節省約 100 萬美元的年度淨利息支出。我們監控資產負債表上逾期客戶和供應商應收帳款的信用風險敞口，到目前為止，尚未發現任何明顯的減弱。

Now through our efficient working capital management and efforts to preserve adjusted margin, we generated $97.7 million in operating cash flow and ended 2025 with $128 million in cash, up 57% from last year. The significant increase in cash has provided us added flexibility to invest capital for value creation. We've been maintaining product development and selected IT investments, as we previously disclosed in the third quarter at relatively high levels as we invest in high-growth, wider-margin business products and projects and digital transformation to improve selling effectiveness and internal efficiency. We will continue to review product development and IT regularly to make sure we are prioritizing the highest return investments.

現在，透過我們高效的營運資本管理和維持調整後利潤率的努力，我們產生了 9,770 萬美元的營運現金流，到 2025 年底，我們的現金為 1.28 億美元，比去年增長 57%。現金的大幅增加為我們投資資本創造價值提供了更大的靈活性。正如我們之前在第三季所揭露的那樣，我們一直保持產品開發和精選 IT 投資處於相對較高的水平，因為我們投資於高成長、利潤率更高的業務產品和專案以及數位轉型，以提高銷售效率和內部效率。我們將繼續定期審查產品開發和 IT，以確保我們優先考慮最高回報的投資。

And in 2025, we repurchased $29 million of common shares in the market at a volume-weighted average price of $14.23 per share, in part to neutralize the shares issued to retire the convertible note. And today, we announced the Board approval for an additional $10 million share repurchase program.

2025 年，我們以每股 14.23 美元的成交量加權平均價格在市場上回購了價值 2,900 萬美元的普通股，部分原因是為了抵銷為贖回可轉換票據而發行的股票。今天，我們宣布董事會批准額外 1000 萬美元的股票回購計畫。

Let me conclude by touching on tariff facts and impacts as much as we can talk about them and understand them. Ultimately, the ultimate cost of the tariff is not yet reliably determinable because the ultimate rates, of course, have not been set and keep on changing. It's unclear at this point whether imports for both finished products and imports and inputs will ultimately be subject to tariffs, although tariffs on both types of imports, finished products and inputs are currently on the table.

最後，我想盡可能多地談論和了解關稅的事實和影響。最終，關稅的最終成本尚無法可靠地確定，因為最終費率尚未確定且不斷變化。目前尚不清楚成品和進口及投入品的進口是否最終都會被徵收關稅，儘管目前已考慮對兩種進口產品（成品和投入品）徵收關稅。

Specific import codes are actually unclear. There are exceptions. Correct import codes are still uncertain and applicability. All of these things are still up in the air. And of course, competitor reactions are all over the place and ultimately also not known.

具體的進口代碼實際上並不清楚。也有例外。正確的導入代碼仍然不確定且適用。所有這些事情都還懸而未決。當然，競爭對手的反應也各不相同，而且最終也是未知的。

What I can tell you in terms of relevant Daktronics facts are the following. First, as we previously mentioned, about 80% of Daktronics finished product is manufactured in our US factories. Second, less than 50% of inputs used by Daktronics US factories are from imports from all countries into the United States, including China, but many other countries as well.

我可以告訴您有關 Daktronics 的事實如下。首先，正如我們之前提到的，達科電子約 80% 的成品都是在我們美國工廠生產的。其次，達科電子美國工廠使用的投入中，不到50%來自從包括中國在內的所有國家進口到美國的產品，但也包括許多其他國家。

Third, the pre-reciprocal tariffs, these are tariffs that we've been incurring since 2018, have been running at approximately $0.5 million per month since 2018. And since those were already in effect, have already been reflected over time in our operating costs and pricing. Next, new steel and metals tariffs, which were introduced in February, in our case, are very negligible.

第三，互惠前關稅，這些是我們自 2018 年以來一直在徵收的關稅，自 2018 年以來每月約為 50 萬美元。由於這些措施已經生效，並且已經隨著時間的推移反映在我們的營運成本和定價中。其次，二月實施的新鋼鐵和金屬關稅，對我們來說，是微不足道的。

And finally, in the first five weeks so far in fiscal 2026, the higher tariff rates that have been invoiced to us have cost us about $2 million. And I want to be really clear about what that means. That is gross. It's not -- it's before any pricing or manufacturing or operating expense mitigation efforts that are already underway. And more importantly, almost all of that $2 million is at the highest rates that were imposed by the United States on Chinese imports at the end of 2025, which were more than 3 times the rates currently being discussed between the two countries.

最後，截至目前，2026 財年的前五週內，我們收到的更高關稅已使我們損失了約 200 萬美元。我想清楚地解釋這意味著什麼。這太噁心了。事實並非如此——這是在任何已經進行的定價或製造或營運費用緩解措施之前。更重要的是，這200萬美元幾乎全部都是按照美國在2025年底對中國進口產品徵收的最高稅率徵收的，這一稅率是兩國目前正在討論的稅率的3倍多。

So basically, the things that were on the water after the April 2 Liberation Day announcement that have now initially come in, but before the US and China paused the reciprocal tariffs as of April 2 in that short one-month period, the $2 million just refers to that particular initial piece. And as we know, the -- we're currently in a pause, so we would expect that number to come down in any event for the time being.

所以基本上，4 月 2 日解放日公告發布後，在水上的貨物現在已經初步進港，但在 4 月 2 日美國和中國暫停互惠關稅之前的短短一個月內，200 萬美元只是指特定的初始貨物。我們知道，我們目前處於暫停狀態，因此我們預計這個數字無論如何都會暫時下降。

Brad will touch on tariff mitigating strategies in a moment. So now let me turn the call back to Brad.

布拉德稍後會談到關稅減免策略。現在讓我把電話轉回給布萊德。

Okay. Thank you, Howard. Turning to slide 13. We embarked on this journey really to generate better returns for all our stakeholders. We are targeting performance aligned with higher operating margins of 10% to 12%, operating in the top quartile ROIC target of 17% to 20% and achieving a compound annual growth of 7% to 10% by fiscal year '28.

好的。謝謝你，霍華德。翻到第 13 張投影片。我們踏上這段旅程的真正目的是為所有利害關係人創造更好的回報。我們的目標是實現與 10% 至 12% 的較高營業利潤率一致的業績，將 ROIC 目標設定在 17% 至 20% 的最高四分位數，到 28 財年實現 7% 至 10% 的複合年增長率。

Our plan is in place. We are executing on it. We have a lot of work to do, and our team is committed to its success. Our goal to achieve this plan through the business and digital transformation we talked about today to repeat includes value-based pricing, revenue mix diversification, new products for new applications, planning, risk management, capital allocation, executive compensation, and digital transformation.

我們的計劃已經實施。我們正在執行。我們有很多工作要做，我們的團隊致力於取得成功。我們今天談到的透過業務和數位轉型實現這項計劃的目標包括基於價值的定價、收入組合多樣化、新應用的新產品、規劃、風險管理、資本配置、高階主管薪酬和數位轉型。

Turning to slide 14. We have faced some headwinds, but we are not unaccustomed to challenges. With regard to the tariff environment, we'll adjust as needed. We have many levers to pull, and we will make no regrets adjustments. We can adjust prices as needed in keeping with our value-based positioning. We have protection clauses in our contracts. We have some flexibility in our supply chain, and we have a global footprint that affords us flexibility as needed. And we have an international business with room to grow and provides revenue diversification and reduces exposure to tariffs.

翻到第 14 張投影片。我們遇到了一些阻力，但我們並不陌生挑戰。對於關稅環境，我們會根據需要進行調整。我們有很多手段可以運用，而且我們不會後悔所做的調整。我們可以根據基於價值的定位來調整價格。我們的合約中有保護條款。我們的供應鏈具有一定的靈活性，並且我們的業務遍布全球，並且可以在需要時提供靈活性。我們的國際業務具有成長空間，可實現收入多樣化並降低關稅風險。

In terms of market positioning, this remains solid, and our long-term plan is intact. Our supply chain remains healthy and functional. We find that as is true of all of us, our customers are becoming acclimated to inflation and are accepting of it as a reality of doing business right now. The transformation plan is unaffected. We are moving ahead at pace on the initiatives that we have laid out and our long-term objectives remain in place.

就市場定位而言，我們的定位依然穩固，我們的長期計畫也完好無損。我們的供應鏈保持健康並正常運作。我們發現，就像我們所有人一樣，我們的客戶正在適應通貨膨脹，並接受它作為當前開展業務的現實。轉型計劃不受影響。我們正在穩步推進已製定的舉措，我們的長期目標依然沒有改變。

As for fiscal year 2026, demand for our technology-leading display solutions remains strong, and we are remaining flexible and competitive on a value basis in the macro environment. Our priorities are to execute diligently for our customers to complete the next steps of our business and digital transformation and to drive toward the achievement of our long-term financial objectives.

至於2026財年，對我們技術領先的顯示解決方案的需求依然強勁，並且我們在宏觀環境中仍保持靈活性和價值競爭力。我們的首要任務是為客戶勤勉執行，完成我們業務和數位轉型的下一步，並推動我們的長期財務目標。

We are the global industry leader in best-in-class video communication displays and control systems. We are the only US manufacturer of scale with a global footprint and servicing by geographic market. We have new indoor products and control system solutions that are opening pathways to adjacent applications to more deeply serve our customer base with all their needs. We are excited and committed to our future and are executing toward our growth and return objectives. I want to thank the entire Daktronics team for their hard work and dedication, particularly during this transformation period and against the macro backdrop.

我們是全球一流的視訊通訊顯示和控制系統的行業領導者。我們是唯一一家業務遍及全球、按地理市場提供服務的美國規模製造商。我們擁有新的室內產品和控制系統解決方案，它們為相鄰的應用開闢了道路，從而更深入地滿足我們的客戶群的所有需求。我們對未來充滿期待並全心投入，並正在努力實現我們的成長和回報目標。我要感謝整個達科團隊的辛勤工作和奉獻精神，特別是在這段轉型時期和宏觀背景下。

Now I'll turn the call over to the operator for questions. Thank you.

現在我將把電話轉給接線員來回答問題。謝謝。

(Operator Instructions) Aaron Spychalla, Craig-Hallum Group.

（操作員指示）Aaron Spychalla，Craig-Hallum 集團。

Yeah. Good morning, Andrew, Brad, and Howard. Thanks for taking the question and thanks for all the good color and commentary so far. First for me, I guess, on the top line, as we think about revenue growth for FY26, can you just kind of talk a little bit about that? I know you don't guide, but looking at backlog, up high single digits and just some of your FY28 targets for high single-digit CAGR just hoping to get a little color on what growth might look like in FY26?

是的。早安，安德魯、布拉德和霍華德。感謝您提出這個問題，也感謝您迄今為止提供的所有精彩內容和評論。首先，我想，當我們考慮 26 財年的營收成長時，您能否稍微談談這一點？我知道您沒有提供指導，但是看看積壓訂單、高個位數增長以及 FY28 的一些高個位數複合年增長率目標，只是希望對 FY26 的增長情況有所了解？

Yeah. Thanks for the question. We are on track. All our markets were showing -- expecting growth across the board. We believe in the 7% to 10% compound annual growth that we talked about through FY28.

是的。謝謝你的提問。我們正走在正確的軌道上。我們所有的市場都顯示出全面成長的預期。我們相信，到 28 財年，複合年增長率將達到 7% 至 10%。

There's going to be some lumpiness year over year in that. But all in all, we think we can achieve that. We think FY26 is one of those years that can do that. So the business we have out there with the backlog and looking at the orders that we're seeing, we believe fits well into our plans.

每年都會出現一些不平衡的情況。但總而言之，我們認為我們可以實現這一目標。我們認為 26 財年是可以實現這一目標的年份之一。因此，從我們目前積壓的業務和看到的訂單來看，我們相信這些非常符合我們的計劃。

All right. And then on margins, I appreciate the color on the tariffs and that it's an uncertain kind of outlook there. Can you maybe just give a little more detail on some of the levers that you've maybe pulled so far? What might be to come and just how you're thinking that can impact margins here as we think about the growth in FY26 and potential margin expansion from here?

好的。然後在利潤率方面，我理解關稅的影響，而且前景也不確定。您能否更詳細地介紹一下您目前所採取的一些措施？當我們考慮 26 財年的成長和潛在的利潤率擴張時，可能會發生什麼？您認為這會如何影響利潤率？

Yeah. That's one of our strategic objectives, of course, as part of our plan. And that happens in a number of ways with the value-based pricing that we talked about throughout the presentation that those are our objectives, and those are in the implementation phase. So we've implemented a number of value-based pricing adjustments already. But we're also driving costs out of our operations and getting more lean as we look across the enterprise to improve our overall performance.

是的。當然，這是我們計劃的策略目標之一。這在我們整個演示過程中討論的基於價值的定價中以多種方式實現，這些是我們的目標，並且正處於實施階段。因此，我們已經實施了一些基於價值的定價調整。但我們也正在降低營運成本，並變得更加精簡，因為我們著眼於整個企業，以提高我們的整體績效。

And we saw that in FY25 to hold our margins and really a down revenue year, and we think we can carry that forward into FY26 further. In addition to that, we're bringing on new markets, new services that they're additive. They take time and they're small at first, but we believe that they're going to be accretive over time, beginning in FY26. So all those things combined, we believe, can lead to a higher operating margin here.

我們看到，25 財年我們的利潤率保持穩定，但收入卻下降，我們認為我們可以將這種趨勢延續到 26 財年。除此之外，我們也正在開拓新市場、提供新服務。它們需要時間，而且一開始規模很小，但我們相信，從 26 財年開始，它們會隨著時間的推移而不斷增加。因此，我們相信，所有這些因素結合起來可以帶來更高的營業利潤率。

All right. And then maybe turning to the Commercial segment, I guess, in particular, really good order activity there. Can you just give us an update on some of the efforts to expand the AV network there on the integration side? And just maybe talk about the shift to digital in that market at a high level, where are we in that conversion? And how much kind of green space is there for you as that market kind of shifts in the coming years?

好的。然後也許轉向商業領域，我想，特別是那裡的訂單活動非常好。您能否向我們介紹一下在整合方面擴展 AV 網路的一些最新舉措？或許我們可以從高層次談論該市場向數位化的轉變，我們處於這種轉變的哪個階段？隨著未來幾年市場變化，您能獲得多少綠色空間？

Yeah, a really good question. As you know, in our Commercial business, we serve really three -- we'll call it, four customer groupings. We have on-premise that serves primarily in the retail space. We participate mostly in the outdoor solutions for on-premise advertising and out-of-home, we're seeing a lot of optimism in that market from both the independent billboard operators as well as the national customers, they're buying really our products at a higher rate. I could speak to that in more detail later.

是的，這是一個非常好的問題。如您所知，在我們的商業業務中，我們實際上服務於三個——我們稱之為四個客戶群。我們擁有主要服務於零售領域的內部設施。我們主要參與戶外廣告和戶外解決方案，我們看到獨立廣告看板業者和全國客戶對該市場非常樂觀，他們確實以更高的價格購買我們的產品。我稍後可以更詳細地談論這個問題。

In our spectacular business, we're seeing growth. It's really related back to out-of-home as well. But the segment you're mentioning is focused around our AV integrator space and our independent channel. We see a lot -- you mentioned green space, we see a lot of opportunity here, a lot of room to expand upon that. So our plans are to do just that, and we're at the initial stages of really going at a more aggressive plan to grow that part of our business.

在我們出​​色的業務中，我們看到了成長。這確實也與戶外有關。但您提到的部分主要集中在我們的 AV 整合商空間和我們的獨立管道。我們看到了很多——您提到了綠地，我們在這裡看到了很多機會，並且有很多擴展空間。所以我們的計劃就是這樣的，我們正處於實施更積極計劃的初始​​階段，以發展我們業務的這一部分。

Our teams have been doing a great job focused primarily on retail and military. Military has had a little bit of a setback, primarily to doge. I think just some slowdown in the military spending market, although that's been small overall. I see a lot of optimism, and I think we can grow that piece of the business with a lot of upside. I hope that answers your question.

我們的團隊在零售和軍事領域一直表現出色。軍事方面遇到了一點挫折，主要是總督方面。我認為軍費開支市場有所放緩，儘管整體而言幅度不大。我看到了很多樂觀情緒，我認為我們可以讓這部分業務有很大的成長空間。我希望這能回答你的問題。

No, it does. Great. Thanks for the color. And then just maybe last, thinking about the working capital efforts underway so far, a lot of nice cash generation in the year. Just curious on additional kind of levers there. Where can that cash conversion -- can it get back to where it was a few years ago? And then any thoughts on capital allocation, just given the balance sheet would be helpful? Thanks.

不，確實如此。偉大的。謝謝你的顏色。最後，也許只是最後，考慮一下迄今為止正在進行的營運資本努力，今年產生了很多不錯的現金。只是對那裡的其他類型的槓桿感到好奇。現金轉換率能恢復到幾年前的水準嗎？那麼，對於資本配置有什麼想法嗎？只給出資產負債表會有幫助嗎？謝謝。

Well, balance sheet, I'll ask -- answer the second question first. As we -- our objective here is to grow and grow at obviously profitable margins. So our first use of capital is going to be getting the growth. We talked about product development and the digital transformation, that's where our incremental capital expenditures are going in particular. We've talked about share repurchase, obviously, with this amount of cash, that is still very much on the table and it's economic for our shareholders to do that.

好吧，資產負債表，我首先要回答第二個問題。我們的目標是不斷成長，獲得明顯的獲利。因此，我們對資本的首要用途就是實現成長。我們討論了產品開發和數位轉型，這正是我們增量資本支出的重點。我們已經討論過股票回購，顯然，有了這麼多現金，我們仍然可以考慮回購股票，而且對我們的股東來說，這樣做也是經濟的。

So it's a little bit of all of the above. But the good news is we have the cash and the capital, and our objective is to get it deployed in the highest return ways we can.

所以，以上內容都有一點。但好消息是，我們擁有現金和資本，我們的目標是以盡可能最高回報的方式部署它們。

Anja Soderstrom, Sidoti.

安雅·索德斯特羅姆，西多蒂。

Congrats on the nice performance here and thank you for taking my questions, many of them have been answered already. But I'm curious for international, the strength there. What is this the primary driver for that? And do you see that continue into the first quarter?

恭喜您在這裡的精彩表現，感謝您回答我的問題，其中許多問題已經得到解答。但我對國際實力感到好奇。造成這種情況的主要驅動因素是什麼？您認為這種情況會持續到第一季嗎？

The strength in -- what are you saying or what which?

力量在於──你在說什麼或什麼？

Yeah.

是的。

We had a significant growth in orders in the third and the fourth quarter. We had a good pipeline to start with and which is very successful in getting that pipeline closed. What creates a good tailwind for us, though, is that because the orders basically came late in the year. The revenue associated with those orders is largely almost exclusively going to be earned in 2026, fiscal '26, rather than having already started to be earned in the third and the fourth quarter of 2025. So that's what creates this really interesting and -- opportunity for us to get the kind of revenue growth that we're looking for, for '26 and beyond.

第三季和第四季我們的訂單量顯著成長。我們一開始就有一條良好的管道，並且非常成功地關閉了該管道。不過，對我們來說，有利的因素是訂單基本上都是在年底才來的。與這些訂單相關的收入幾乎全部將在 2026 年（即 2026 財年）獲得，而不是在 2025 年第三季和第四季就已經開始獲得。所以，這為我們創造了一個真正有趣的機會，讓我們能夠獲得我們所期望的 26 年及以後的收入成長。

And the projects will start throughout the year, so it's not all going to happen in the first quarter necessarily, but it gives us a good start to the year and a mechanism for continued revenue growth throughout the year as the projects come on board.

這些項目將在全年啟動，因此不一定都會在第一季完成，但這為我們今年的開局提供了一個良好的開端，並且隨著專案的啟動，我們建立了全年持續收入成長的機制。

And how are the orders and backlog trending in the first quarter? Just in general -- or overall.

第一季的訂單和積壓訂單趨勢如何？只是一般而言——或者總體而言。

Early indications are business is still brisk.

早期跡象顯示業務依然活躍。

Okay. And then in terms of the onetime fees, should we expect more of those in fiscal 2026 or?

好的。那麼就一次性費用而言，我們是否應該預期 2026 財政年度會有更多費用？

Well, no, not in connection with any of the initiatives that we undertook last year, the consulting arrangements that we had for business transformation and one or two particular ones for the Digital Transformation to get that project going -- or completed, as I mentioned before. So those fees are done because the engagements that we have with the consultants are finished. I can't tell you that there won't be any additional consulting, but as far as the projects that we undertook last year, those are done.

嗯，不，與我們去年採取的任何舉措都無關，我們為業務轉型所做的諮詢安排以及為啟動或完成該項目而進行的一兩個特定數位轉型安排，正如我之前提到的。這些費用已經支付完畢，因為我們與顧問的約定已經結束。我不能告訴你不會有任何額外的諮詢，但就我們去年承擔的項目而言，那些已經完成了。

I will also say that these consulting fees are expected to be more than paid back in multiple times in terms of the transformation results that we expect over the next three years.

我還要說的是，從我們預期未來三年的轉型結果來看，這些諮詢費用預計將獲得數倍以上的回報。

Okay. Got it. And then lastly, you mentioned the Board approved a $10 million buyback program. Did you have anything left on the old one or?

好的。知道了。最後，您提到董事會批准了一項 1000 萬美元的回購計劃。舊的那個上還剩下什麼東西嗎？

We did, yes. So -- but we'll provide some further commentary on that shortly.

是的，我們做到了。所以——但我們很快就會對此提供進一步的評論。

(Operator Instructions) Mac Furst, Sinclair Research.

（操作員指示） Mac Furst，Sinclair Research。

This is Mac Furst with Singular Research. Congratulations on the quarter. This is a question for either Howard Atkins or Brad Wiemann. What do you expect business and digital transformation expenses to be in fiscal 2026?

我是 Singular Research 的 Mac Furst。恭喜本季。這個問題應該要問 Howard Atkins 或 Brad Wiemann。您預計 2026 財年的業務和數位轉型費用是多少？

When you say expensing, you're talking about additional fees or consulting expenses or?

當您說費用時，您指的是額外費用或諮詢費用嗎？

Overall expenses. And if you can break them down into consulting expenses and internal expenses, that's fine.

整體費用。如果你可以將它們分解為諮詢費用和內部費用，那就很好了。

At this point, as I said, we don't -- on the business transformation, that project, if you will, that we had last year with the outside consultant, has now really been integrated into the company. The company owns the results, so the company owns the process and our leadership team is very active in executing the plan and frankly, doesn't need any more consulting expense to make that happen. Now there may be some additional initiatives that we -- that, that team decides to take in 2025, that is not currently planned for, but I can't guarantee that some idea that we -- the team comes up within 2025 would require some outside help. But again, as far as the major project that we had last year, that's behind us now that engagement has ended.

在這一點上，正如我所說，我們還沒有——在業務轉型方面，如果你願意的話，我們去年與外部顧問合作的那個專案現在已經真正融入公司了。公司擁有結果，因此公司擁有流程，我們的領導團隊非常積極地執行計劃，坦白說，不需要任何更多的諮詢費用來實現這一目標。現在，我們團隊可能會決定在 2025 年採取一些目前尚未計劃的額外舉措，但我不能保證我們團隊在 2025 年提出的一些想法需要一些外部幫助。不過，就我們去年開展的那個重大計畫而言，現在合作已經結束，這個計畫也已經過去了。

Okay. So consulting fees for digital and business transformation in fiscal 2026 will be quite low. Okay. Thank you.

好的。因此，2026財年的數位化和業務轉型諮詢費用將會相當低。好的。謝謝。

And I'm showing no further questions at this time. And I would like to hand the conference back over to Brad Wiemann for closing remarks.

我現在沒有其他問題了。現在我想將會議交還給布拉德·維曼 (Brad Wiemann) 並請他作閉幕發言。

Okay. Thank you, everyone, for joining us today. And we appreciate all the work that our teams are doing. And I want to just, again, congratulate our leadership team and all the employees at Daktronics for the work that we've done throughout this past transformational year. Like I mentioned earlier, we have a lot of work yet to do, and we're tasked with that, and we're planning to accomplish it.

好的。感謝大家今天加入我們。我們感謝我們的團隊所做的所有工作。我想再次祝賀我們的領導團隊和達科電子的全體員工在過去的轉型之年中所做的工作。正如我之前提到的，我們還有很多工作要做，我們肩負著這些任務，並計劃完成它們。

So with that, I wish you all just a wonderful summer, enjoy it, and thank you for joining our call today.

因此，我祝福大家有個美好的夏天，享受它，並感謝你們今天參加我們的電話會議。

This concludes today's conference call. Thank you for participating, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接了。