Daktronics Inc (DAKT) 2026 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Daktronics second quarter FY26 financial results conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的耐心等待。歡迎參加達科電子2026財年第二季財務業績電話會議。（操作人員指示）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, Lindsey Vetter. Please go ahead, mam.

現在我謹將會議交給今天的演講嘉賓林賽·維特。請您繼續，女士。

Thank you, Michelle. Good morning, everyone. Thank you for participating in our second quarter earnings conference call. During today's presentation, we will make forward-looking statements reflecting our expectations and plans about 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.

謝謝你，米歇爾。各位早安。感謝您參加我們第二季財報電話會議。在今天的演講中，我們將發表一些前瞻性聲明，反映我們對未來財務表現和未來業務機會的預期和計劃。這些前瞻性陳述反映了公司基於目前可獲得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 expectations that could cause actual results to differ materially from these expectations. During this presentation, we will also refer to non-GAAP financial measures.

當然，實際結果可能會有所不同。請參閱今天電話會議簡報的第 2 頁投影片、我們的新聞稿和我們向美國證券交易委員會提交的文件，以了解可能導致實際結果與這些預期有重大差異的風險因素、不確定性和預期。在本次示範中，我們也將提及非GAAP財務指標。

You can find the reconciliation of each non-GAAP measure to the most directly comparable GAAP measure in the appendix to the company presentation slides, which can be found on the Investor Relations page of our website at www.daktronics.com. Our earnings release for the 2026 second quarter, which was furnished to the SEC on a Form 8-K this morning, also contain certain non-GAAP financial measures.

您可以在公司簡報的附錄中找到每個非GAAP指標與最直接可比較的GAAP指標的調節表，該附錄可在我們網站www.daktronics.com的投資者關係頁面找到。我們今天上午以8-K表格形式向美國證券交易委員會提交的2026年第二季財報也包含一些非GAAP財務指標。

Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures as well 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.

獲利報告中包含了這些非公認會計準則財務指標與最直接可比較的公認會計準則財務指標的調節表，以及對使用非公認會計準則財務指標時某些局限性的討論，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 Brad Wiemann, Daktronics Interim President and CEO.

我將把電話轉給達科電子臨時總裁兼執行長布拉德·維曼。

Well, thank you, Lindsey. And good morning, everyone. Thank you for joining our second quarter fiscal 2026 call. I'm joined on the call by Howard Atkins, Board member and acting Chief Financial Officer. We will review our fiscal 2026 second quarter results and accomplishments and then take your questions. Turning to our slide presentation on slide 3. Here are the key messages from the second quarter.

謝謝你，琳賽。大家早安。感謝您參加我們2026財年第二季電話會議。與我一同參加電話會議的還有董事會成員兼代理財務長霍華德‧阿特金斯。我們將回顧 2026 財年第二季的業績和成就，然後回答大家的問題。現在請看投影片簡報的第3張。以下是第二季的主要資訊。

We delivered another quarter of solid results, driving revenue and profit expansion through exemplary execution through the first half of the year. The second quarter of each year is typically marked by a heavy slate of project completions and our team's performance with respect to manufacturing, installation and service execution was excellent, with overall efficient project production and delivery supporting our progressively strong results.

我們又取得了穩健的季度業績，透過上半年的出色執行，推動了營收和利潤的成長。每年的第二季通常都是專案竣工量很大的時期，我們的團隊在製造、安裝和服務執行方面的表現非常出色，高效的專案生產和交付也為我們不斷取得強勁的業績提供了支持。

During the quarter, we completed a number of large-scale installations, including Miami Freedom Park in Major League Soccer; Baltimore Orioles, Major League Baseball; Aramco Stadium in Saudi Arabia; Zayed Sports City, Abu Dhabi; Philly Airport; San Antonio Spurs; University of Buffalo Football; and a nice digital signage project in Cincinnati Convention Center.

本季度，我們完成了許多大型安裝項目，包括美國職業足球大聯盟的邁阿密自由公園；美國職棒大聯盟的巴爾的摩金鶯隊；沙烏地阿拉伯的阿美體育場；阿布達比的紮耶德體育城；費城機場；聖安東尼奧馬刺隊；布法羅大學橄欖球隊；以及辛辛那提會議中心的一個很棒的數字標誌項目。

Our sales and marketing team secured large orders in our live events segment related to three Major League baseball stadiums and three Major League soccer arenas for recent project wins. We are five for five on large-scale Major League baseball project for fiscal year 2026. We also captured strong growth in our Transportation segment with good uptake of airport and intelligent transportation system projects domestically; and our international segment also drove double-digit growth.

我們的銷售和行銷團隊在最近的項目中成功獲得了與三個美國職棒大聯盟體育場和三個美國職業足球大聯盟體育場相關的現場活動領域的大訂單。我們在 2026 財年的五個大型美國職棒大聯盟項目中全部獲得批准。在國內，機場和智慧交通系統專案取得了良好的市場反響，交通運輸業務也實現了強勁成長；國際業務也實現了兩位數的成長。

These efforts together produced 12% fiscal second quarter order growth from last year's across all business segments. Through our efforts, we delivered our third consecutive quarter of top line growth. We continue to improve our profitability in the quarter through both value-based pricing bounded by guardrails and a sharp focus on operational and cost efficiencies.

這些努力共同促成了第二財季所有業務部門訂單量較去年同期成長 12%。透過我們的努力，我們實現了連續第三個季度營收成長。本季度，我們透過約束措施的價值定價和對營運及成本效率的高度重視，持續提高獲利能力。

These efforts produced our second quarter of driving operating income over $20 million. While tariff expenses continue to be dynamic and impactful, we are maintaining flexibility on being responsive to this changing environment. We ended the quarter with product backlog of $321 million, which grew 36% year-over-year, giving us a multi-quarter revenue runway for revenue growth.

這些努力使我們第二季的營業收入超過了 2000 萬美元。儘管關稅支出持續變化且影響巨大，但我們將保持靈活性，以應對這種不斷變化的環境。本季末，我們的產品積壓訂單為 3.21 億美元，年成長 36%，為我們提供了未來幾季的營收成長空間。

Turning to slide 4. In our live events business, as I mentioned, we won 6 Major League sports projects this past quarter, 3 Major League baseball and three Major League soccer, driving 26.5% order growth from last year. As I mentioned, we are five for five on large Major League baseball projects in fiscal year '26. Additionally, we won several other stadium and arena display enhancements, as customers continue to expand their digital

翻到第4張投影片。正如我之前提到的，在我們的現場活動業務中，上個季度我們贏得了 6 個美國職業運動聯盟項目，其中 3 個是美國職棒大聯盟項目，3 個是美國職業足球大聯盟項目，與去年相比訂單增長了 26.5%。正如我之前提到的，我們在 2026 財年完成了五個大型美國職棒大聯盟項目，全部成功。此外，我們還贏得了其他幾個體育場館和競技場顯示器升級項目，因為客戶正在不斷擴展其數位化業務。

display footprint throughout the venue. We continue to enhance our product and service offerings to align with customer needs and desires such as our narrow pixel pitch product lines, advanced control system capabilities to engage fans and improved seamless control and management of display content from anywhere, giving venue operators greater flexibility and control over their digital assets. Pictured here is CHI Health in Omaha, Nebraska.

在整個場館內展示產品。我們不斷改進產品和服務，以滿足客戶的需求和願望，例如我們的窄像素間距產品線、先進的控制系統功能以吸引粉絲，以及從任何地方改進的無縫控制和管理顯示內容，使場館運營商能夠更靈活地控制其數位資產。圖為位於內布拉斯加州奧馬哈的 CHI Health 醫療中心。

In our commercial business, growth in our on-premise advertising business remained strong and up double digit year-over-year. After a strong performance in the first quarter, as customers continue to successfully transition to next-generation fuel price products, which are short term in nature and offer quick deliveries and feature-rich enhancements.

在我們的商業業務中，我們的現場廣告業務成長依然強勁，較去年同期成長兩位數。在第一季取得強勁業績之後，客戶繼續成功過渡到下一代燃油價格產品，這些產品具有短期性質，可提供快速交付和功能豐富的增強功能。

In our out-of-home business, our pipeline of opportunities is expanding as optimism and sentiment continue to rise with independent billboard operators, as we further develop our perception -- their perception of our value proposition through recognition of our brand strength, image quality, reliability, service responsiveness and reputation for innovation with the release of our new billboard product offerings.

在我們的戶外廣告業務中，隨著獨立廣告看板業者的樂觀情緒和信心持續上升，我們的機會管道也不斷擴大。我們透過推出新的廣告看板產品，進一步提升了他們的認知——他們對我們的價值主張的認知，這體現在我們品牌的實力、圖像品質、可靠性、服務響應能力以及創新聲譽的認可上。

The outdoor spectaculars projects in city centers continues to be highly competitive and variable in available projects. However, our indoor spectacular projects sold through AV integrator channels are growing through narrow pixel pitch product line introductions with streamlined tools and services. We are seeing growth in the government and military space as well as out-of-home advertising in transportation centers.

城市中心的戶外景觀項目競爭依然非常激烈，可供選擇的項目也多種多樣。然而，我們透過 AV 整合商通路銷售的室內壯觀項目正在透過推出像素間距更小的產品線以及簡化的工具和服務而不斷成長。我們看到政府和軍事領域以及交通樞紐的戶外廣告都在成長。

Orders in this segment decreased 5% year-over-year, primarily driven by fewer large projects awarded in the outdoor spectacular business during the quarter. Pictured here is Park Outdoors. This is their 50th install of a Daktronics digital billboard in Syracuse, New York. Transportation business orders grew 15% from last year, driven by increased demand in our Intelligent Transportation Systems and aviation, along with strong demand for whole matrix parking solutions.

該領域的訂單年減 5%，主要原因是本季戶外特效業務中授予的大型項目減少。圖中所示為戶外公園。這是他們在紐約州錫拉丘茲安裝的第 50 塊達科電子數位廣告看板。交通運輸業務訂單比去年增長了 15%，這主要得益於智慧交通系統和航空領域需求的成長，以及對整體矩陣式停車解決方案的強勁需求。

We were awarded a five-year procurement contract from the Utah Department of Transportation for intelligent transportation message displays. Through focused marketing and partner network growth, we have also improved our brand position for indoor solutions, leading to quarter-over-quarter opportunity growth. Pictured here is Spokane International Airport parking application display.

我們獲得了猶他州交通部為期五年的智慧交通資訊顯示器採購合約。透過有針對性的行銷和合作夥伴網路拓展，我們也提高了室內解決方案的品牌地位，從而實現了季度環比成長。圖中所示為斯波坎國際機場停車申請顯示器。

This is a nice combination of our strengths in roadways display -- roadway displays, airports and parking solutions. Our international business, which serves all the end markets of our domestic segments served outside of North America, is developing well as our efforts to realign our focus on key geographies over the past several quarters is paying off.

這是對我們在道路顯示、機場和停車解決方案方面的優勢的一個很好的結合。我們的國際業務服務於北美以外所有國內業務的終端市場，發展良好，這得益於我們過去幾個季度以來對重點地區的重新調整。

Second quarter orders in this segment increased 23.6% from last year, with strong demand in the Middle East and European regions from advertising, stadium and transportation customers. We are also seeing strong uptake of our indoor solutions across multiple markets, especially government entities through growing AV integrator channel partners.

第二季度該領域的訂單量比去年同期增長了 23.6%，其中中東和歐洲地區的廣告、體育場和交通運輸客戶的需求強勁。我們還看到，我們的室內解決方案在多個市場，特別是政府機構中，透過不斷增長的 AV 整合商通路合作夥伴，得到了強有力的推廣。

Pictured here is a large digital billboard installed at the Metropolitan in Dubai, in partnership with Media247. In our High School Park & Recreation business, after a record first quarter, our second quarter orders were comparable with orders in the second quarter of last year. We have expanded our presence among the 30,000-some high schools in the US and continue to win projects by leveraging our strong value propositions and market differentiators.

圖中所示為與 Media247 合作，在杜拜大都會飯店安裝的大型數位廣告看板。在我們的高中公園和娛樂業務中，在創紀錄的第一季之後，我們第二季的訂單量與去年第二季的訂單量相當。我們已將業務拓展至美國約 3 萬所高中，並憑藉強大的價值主張和市場差異化優勢不斷贏得專案。

We expect continued strong uptake of our leading solutions and adoption of professional services, particularly in curriculum development and sports marketing going forward. In the picture here, we have Dak Prescott being recognized for his generous contributions to his high school alma mater, Haughton High, Haughton, Louisiana, part of which included a Daktronics video system.

我們預計未來我們的領先解決方案和專業服務將繼續廣泛應用，尤其是在課程開發和體育行銷領域。照片中，達克·普雷斯科特因其對母校路易斯安那州霍頓市霍頓高中的慷慨捐助而受到表彰，其中就包括一套達科電子視訊系統。

Turning to slide 5. We announced this morning that we are enhancing our global manufacturing footprint with the opening of a facility in Saltillo, Mexico, with a target for production operation in late April 2026. This location is strategic in that it offers a broadened network increasing the agility of our global production capacity, provides opportunity for growth in line with our growth projections, favorable trading relationship with the United States and trading relationships with key supplier countries.

翻到第5張投影片。今天上午我們宣布，我們將在墨西哥薩爾蒂約開設一家工廠，以擴大我們的全球製造規模，目標是在 2026 年 4 月下旬開始投產營運。該地點具有戰略意義，因為它提供了更廣泛的網絡，提高了我們全球生產能力的靈活性，提供了符合我們成長預測的成長機會，與美國建立了有利的貿易關係，並與主要供應商國家建立了貿易關係。

Overall, the new facility will complement our existing footprint and offer optionality as we optimize production going forward. Moving to slide 6. Our commitment to innovation continues to drive market differentiation and value for our customers. In the second quarter, we've made significant progress in the following areas.

總體而言，新設施將與我們現有的佈局形成互補，並為我們未來優化生產提供更多選擇。切換到第6張投影片。我們對創新的持續投入，不斷推動我們在市場上的差異化優勢，並為客戶創造價值。第二季度，我們在以下領域取得了顯著進展。

Delivering solutions that address evolving market demands. First, we expanded our narrow pixel pitch offering in the US market with an additional 2.5-millimeter chip-on-board model. This new model is more robust and lighter weight than previous product offerings and delivers superior image quality at low skewing distances, making them ideal for high-end retail, corporate environments and venue applications where visual excellence is nonnegotiable.

提供滿足不斷變化的市場需求的解決方案。首先，我們在美國市場擴大了窄像素間距產品線，新增了一款 2.5 毫米晶片封裝型號。這款新型號比以往的產品更堅固、更輕，並且在低傾斜距離下可提供卓越的圖像質量，使其成為高端零售、企業環境和對視覺效果要求極高的場所應用的理想選擇。

Second. We introduced our new billboard product series, a next-generation entry-level digital billboard designed and cost-optimized for the out-of-home advertising market. This product brings enhanced performance and operational efficiency to outdoor applications, expanding our competitive positioning in the billboard space.

第二。我們推出了全新的廣告看板產品系列，這是一款專為戶外廣告市場設計和成本優化的新一代入門級數位廣告看板。該產品為戶外應用帶來更佳的性能和運作效率，擴大了我們在廣告看板領域的競爭地位。

Third. sports venues are demanding easy-to-use integrated and mobile technology solutions, our new All Sport Lite mobile scoring app delivers a modern approach to entry-level scoreboard control. Designed for youth sports, practices and community events, it makes scoring simple and intuitive for everyone from coaches to volunteers.

第三，體育場館需要易於使用的整合式行動技術解決方案，我們全新的 All Sport Lite 行動計分應用程式為入門級記分板控制提供了一種現代化的方法。該軟體專為青少年體育運動、訓練和社區活動而設計，使從教練到志工的每個人都能輕鬆直觀地進行計分。

Last, we launched our Venus Control Suite Live, our cloud-hosted content management system, purpose-built for live event venues. This platform enables seamless control and management of display content from anywhere, giving venue operators greater flexibility and control over their digital assets. For the remainder of fiscal 2026, we have three significant product launches planned.

最後，我們推出了 Venus Control Suite Live，這是一款專為現場活動場所打造的雲端託管內容管理系統。該平台能夠從任何位置無縫控制和管理顯示內容，使場館營運商能夠更靈活地控制其數位資產。在 2026 財年剩餘時間內，我們計劃推出三款重要產品。

A next-generation LED street furniture featuring our enhanced LED technology that targets the premium out-of-home advertising market and delivers improved visual performance and operational capabilities for urban environments. We are also developing a next-generation advanced indoor video display that incorporates customer and market feedback to offer improved visual experience, improved robustness and greater cost efficiency.

新一代 LED 街道家具採用我們增強的 LED 技術，瞄準高端戶外廣告市場，為城市環境提供更佳的視覺效果和運作能力。我們也正在開發下一代先進的室內視訊顯示器，整合了客戶和市場的回饋，以提供更好的視覺體驗、更高的耐用性和更大的成本效益。

We are also preparing for the launch of our specialized large-digit fuel price system, which expands our product line offering for high-rise signage for long-distance viewability. The photos shown here are an example of our indoor pixel pitch at a Major League soccer stadium, Sporting Kansas City's Children's Mercy Park, an 18,000-seat stadium designed specifically for soccer.

我們也在準備推出我們專門的大數位燃油價格系統，這將擴展我們面向高層建築標誌的產品線，以實現遠距離可視性。這裡展示的照片是我們在美國職業足球大聯盟球場——堪薩斯城體育隊的主場兒童慈善公園球場——建造的室內像素球場的範例。該球場是一個擁有 18,000 個座位的專門為足球設計的體育場。

And below that, a shot of our All-Sport Lite mobile scoring app, which makes it easy and intuitive to run a Daktronics scoreboard with just a mobile device. Our progress down the innovation road map is on schedule. Turning to slide 7. The implementation of our transformation plan remains on track and continues to deliver tangible benefits to the business and our reported results.

下面這張圖展示了我們的 All-Sport Lite 行動計分應用程序，它讓用戶只需使用行動裝置即可輕鬆直觀地運行 Daktronics 記分板。我們在創新路線圖上的進展一切順利。翻到第7張投影片。我們的轉型計畫實施進展順利，並持續為公司業務和績效帶來實際利益。

Here is an update for the second quarter on initiatives and progress. The strategic price adjustments we have implemented align with our value-selling approach allowing us to maintain our premium positioning while protecting margin in the current challenging environment. This initiative is on track, and results to date continue to show customer acceptance of our value propositions.

以下是第二季各項措施和進展的最新情況。我們實施的策略性價格調整與我們的價值銷售策略一致，使我們能夠在當前充滿挑戰的環境下保持高端市場定位，同時保障利潤率。這項計劃進展順利，迄今為止的成果也持續顯示客戶認可我們的價值主張。

The Software-as-a-Service product trial was launched successfully. This initiative was designed to help identify priority areas for a broader subscription management strategy that we continue to expand upon and will further develop over the next several quarters. The Software-as-a-Service initiative augments how we serve the market, developing recurring revenue subscription models and simplify customer engagement.

軟體即服務產品試用版已成功上線。這項措施旨在幫助確定更廣泛的訂閱管理策略的優先領域，我們將繼續擴展該策略，並在接下來的幾個季度中進一步發展該策略。軟體即服務 (SaaS) 計畫增強了我們服務市場的方式，開發了經常性收入訂閱模式，並簡化了客戶互動。

Our disciplined approach of prioritizing high-growth international geographies and market segments as concentrating our resources where we see the strongest demand and best returns. Our digital transformation projects are improving our process efficiency, modernizing our technologies, driving data insights that improve decision-making and create value for our customers.

我們採取嚴謹的方法，優先發展高成長的國際地區和市場領域，將資源集中在需求最強勁、回報最高的地區。我們的數位轉型專案正在提高流程效率，實現技術現代化，推動數據洞察，從而改善決策並為客戶創造價值。

We are overhauling our quoting platform to make it easier and more efficient for our customers to do business with us. Additionally, as part of our digital transformation, we are building out our AI experimentation road map and governance, upgrading our ERP system and making service platform enhancements.

我們正在對報價平台進行全面改造，以使我們的客戶更輕鬆、更有效率地與我們開展業務。此外，作為數位轉型的一部分，我們正在建立人工智慧實驗路線圖和治理體系，升級我們的ERP系統並改善服務平台。

And as part of our strategic planning process, we are proactively aligning our operations and product designs with the evolution we anticipate in the underlying technologies that drive customer experience and demand. Actions that we have completed include the following drivers of cost benefits and customer experience.

作為策略規劃流程的一部分，我們正在積極調整我們的營運和產品設計，以適應我們預期推動客戶體驗和需求的底層技術的發展。我們已完成的行動包括以下提高成本效益和改善客戶體驗的因素。

Achieving faster inventory turnover and improved inventory efficiency, enhancing our customer experience with our modernized service system launched in May. Deploying AI-guided troubleshooting tools with our technical services team to speed resolution of customer issues. Improving our input costs through leverage of our purchasing power, reducing product complexity and time to market, and aggressively renegotiation of key supply contracts to secure better terms and pricing.

透過五月推出的現代化服務系統，我們實現了更快的庫存週轉率和更高的庫存效率，從而提升了客戶體驗。我們正在與技術服務團隊合作，部署人工智慧引導的故障排除工具，以加速解決客戶問題。透過利用我們的購買力來改善我們的投入成本，降低產品複雜性和上市時間，並積極重新談判關鍵供應合約以確保更好的條款和價格。

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

現在我將把電話交給我們的代理財務長霍華德·阿特金斯，讓他來審查我們的財務狀況。霍華德？

Thank you, Brad, and good day, everyone. Thank you for your interest in Daktronics. The Daktronics team produced another solid quarter in the second quarter with double-digit year-over-year growth in new orders, in sales revenue and in operating income. This slide compares the second quarter with both last year's second quarter for the year-over-year comparison, and also the first quarter of fiscal '26 for the sequential quarter results.

謝謝你，布拉德，大家今天愉快。感謝您對達科電子的關注。達科電子團隊在第二季度又取得了穩健的業績，新訂單、銷售收入和營業收入均實現了兩位數的年增長。此投影片將第二季與去年同期進行比較（年比），並將第二季與 2026 財年第一季進行比較（季比）。

Let's start with the bottom-line net income. Daktronics second quarter '26 net income after tax was $17.5 million or $0.35 per fully diluted share. Last year's second quarter net income of $21.4 million included a $10.3 million fair value adjustment on the convertible note that has since been converted and also contained $2.8 million of consulting-related expenses associated with the business transformation initiatives.

我們先來看最終的淨收入。達科電子 2026 年第二季稅後淨利為 1,750 萬美元，即每股完全稀釋收益 0.35 美元。去年第二季淨收入為 2,140 萬美元，其中包括已轉換的可轉換票據的 1,030 萬美元公允價值調整，以及與業務轉型計畫相關的 280 萬美元諮詢費用。

Adjusted net income a year ago, therefore, was $13.9 million after removing these non-recurring expenses and non-cash benefit. So our second quarter 2026 net income rose 25.4% on a fully adjusted basis. Our effective tax rate in the second quarter was 20% compared to an average statutory tax rate of 25%. Since we've had solid earnings so far this year, we're able, starting this year, to take advantage of the new tax laws that permit accelerated depreciation of R&D and other expenses.

因此，扣除這些非經常性支出和非現金收益後，一年前的調整後淨收入為 1,390 萬美元。因此，經過全面調整後，我們 2026 年第二季的淨收入成長了 25.4%。第二季我們的實際稅率為 20%，而平均法定稅率為 25%。由於我們今年迄今為止的盈利狀況良好，因此從今年開始，我們可以利用新的稅法，加速研發和其他費用的折舊。

On a pretax basis, operating income for the quarter was $21.6 million compared with $15.8 million earned in the second quarter of 2025, which, if you remember, included $3.3 million of transformation-related consulting expenses. Our bottom-line results were driven by revenue growth at the top end of our 7% to 10% target range, and our capture of the pricing benefit and structural cost savings from the implementation of our business transformation initiatives.

以稅前計算，本季營業收入為 2,160 萬美元，而 2025 年第二季為 1,580 萬美元，如果你還記得的話，當時的收入包括 330 萬美元的轉型相關諮詢費用。我們的最終業績得益於營收成長達到 7% 至 10% 的目標範圍上限，以及我們透過實施業務轉型計畫所獲得的定價優勢和結構性成本節約。

Our gross profit margin was 27% in the second quarter and operating margin was 9.4%, both improved from last year and operating margin within striking distance of our target 10% to 12.5% range. These key margins are being driven by several factors. First, the impact of strong order growth, the backlog revenue tailwind we have generated off of three consecutive quarters and our efficient order to revenue conversion.

第二季度，我們的毛利率為 27%，營業利潤率為 9.4%，均較去年同期有所提高，且營業利潤率已接近我們 10% 至 12.5% 的目標區間。這些關鍵利潤率受多種因素影響。首先，強勁的訂單成長、連續三個季度積壓訂單帶來的收入成長以及高效的訂單到收入轉換率都產生了影響。

Second, the benefit of fixed cost operating leverage as total revenue grows relative to fixed costs. Third, of course, we've talked about value-based pricing initiatives, which are now built into our product and project pricing across the board. And finally, operating efficiencies, as Brad mentioned previously, up and down the supply chain from the business transformation work started late last year and other initiatives to reduce structural costs.

其次，隨著總收入相對於固定成本的成長，固定成本經營槓桿效應帶來的好處。第三，當然，我們已經討論過基於價值的定價策略，這些策略現在已全面融入我們的產品和專案定價中。最後，正如布拉德之前提到的，營運效率從去年底開始的業務轉型工作和其他降低結構性成本的舉措，貫穿整個供應鏈。

These benefits, of course, were offset in part by the tariff expense we have this year that we didn't have last year. This year, we incurred $8.8 million of tariff expense gross in the second quarter compared with $1.5 million of tariff expense in the second quarter of fiscal '25. Let me now turn to slide 9, which shows you our business segment revenue.

當然，這些收益部分被我們今年產生的關稅支出所抵消，而去年我們並沒有這些支出。今年第二季度，我們共產生 880 萬美元的關稅支出，而 2025 財年第二季的關稅支出為 150 萬美元。現在請看第 9 張投影片，其中顯示了我們業務部門的收入。

One of our key objectives has been to diversify our revenue sources, making us less dependent on any one business segment and generating more organically recurring total income. This table shows you the contributions to our revenue growth from each of our business segments in the second quarter of this year and last year and sequentially from the first quarter of fiscal '26.

我們的主要目標之一是實現收入來源多元化，減少對任何單一業務部門的依賴，並產生更多有機成長的總收入。此表顯示了我們各業務部門在今年第二季和去年第二季以及自 2026 財年第一季以來對我們營收成長的貢獻。

It also shows you, all the way on the right, the gross profit margin earned by each business segment in the second quarter. There are a number of factors, of course, which drive revenue in each of the business segments in various ways, including, among other things, order growth, which, as you know, has been very strong. Our value-based pricing initiatives.

圖表最右側也顯示了第二季各業務部門的毛利率。當然，有許多因素以各種方式推動各個業務部門的收入成長，其中包括訂單成長，正如您所知，訂單成長一直非常強勁。我們基於價值的定價策略。

Increases in the size and breadth of our sales and marketing teams; our ongoing focus on control systems, servicing and customer experience efforts; and of course, as Brad mentioned earlier, our leading edge in product innovation. We've had solid growth in either or both of the year-over-year and sequential revenue, as you can see in this table.

銷售和行銷團隊規模和範圍的擴大；我們持續關注控制系統、服務和客戶體驗工作；當然，正如布拉德之前提到的，我們在產品創新方面也處於領先地位。如本表所示，我們的年比和環比收入均實現了穩健成長。

The table also shows you as our mix has changed from the first quarter to the second quarter, if you remember, we had a higher concentration of HSPR revenue in the first quarter and a higher margin. As we go forward, as you'll see in a second, we're going to have a little bit greater concentration in live events. Let me now turn to the segment product backlog experience. In terms of order to revenue conversion, our product backlog stood at $321 million at mid-year, up nearly 36% from a year ago.

表格也顯示，我們的產品組合從第一季到第二季發生了變化。如果你還記得的話，我們在第一季的 HSPR 收入佔比更高，利潤率也更高。接下來，正如你馬上就會看到的，我們將更加重視現場活動。現在讓我來談談細分產品待辦事項的經驗。就訂單到營收的轉換率而言，截至年中，我們的產品積壓訂單為 3.21 億美元，比去年同期成長了近 36%。

Now our product order to revenue conversion is a factor of a number of variables, including, for example, mix. As our mix changes, the product backlog can even take longer or shorter to come through. I just reported that our order mix in the second quarter, for example, was -- live events was about 35%, 36% of our order mix.

現在，我們的產品訂單到收入的轉換率取決於許多變量，例如產品組合。隨著產品組合的變化，產品積壓的交付時間可能會延長或縮短。我剛剛報告說，例如，我們第二季的訂單組成是——現場活動約占我們訂單組成的 35% 到 36%。

But as you can see on this chart, live events will be currently -- is currently about half of our backlog mix. What that means is that as it's weighted towards live events, some of the major products will be -- that we've announced and Brad talked about earlier, will be expected to start converting through next spring. And converting that full backlog will take some time but also results in more predictable growth and better revenue recurrence, giving us a multi-quarter revenue runway.

但正如您在這張圖表中看到的，現場活動目前約占我們積壓活動的一半。這意味著，由於它側重於現場活動，一些主要產品——我們已經宣布過，布拉德之前也談過——預計將在明年春天開始轉換。轉換所有積壓訂單需要一些時間，但也會帶來更可預測的成長和更好的收入經常性，從而為我們提供多個季度的收入保障。

Another factor here is timing. As we've previously disclosed, the Tennessee Titans order, for example, that we took -- booked in the late last year, will only start up and -- won't start up until after the third quarter that we're in right now. So time when the orders start actually has an impact on this revenue conversion. And the third factor I'd point out would be holidays.

另一個因素是時機。正如我們之前所揭露的那樣，例如，我們去年年底預訂的田納西泰坦隊的比賽，要到我們現在所處的第三季度之後才會開始。因此，訂單開始的時間實際上會對收入轉換率產生影響。我要指出的第三個因素是假期。

As a technical matter, in the third quarter, as you may remember, our third quarter revenue and income patterns typically are seasonally low. We have, as you know, in the third quarter, the Thanksgiving holiday, the Christmas holiday and New Year's, all of which reduce the time in which orders actually do get converted to revenue. So that's the principal reason why we have this typically slower third quarter.

從技術角度來說，您可能還記得，第三季我們的營收和利潤通常處於季節性低谷。如您所知，第三季有感恩節假期、聖誕節假期和新年假期，這些都會縮短訂單轉化為收入所需的時間。所以這就是第三季通常成長放緩的主要原因。

Now I'll move to slide 11, which discusses our inventory efficiency. One of the key initiatives undertaken as a result of our business transformation analysis late last calendar year has been a program of increasing the efficiency of our inventory management. This was an early win idea and the results have been very successful.

現在我將轉到第 11 張投影片，討論我們的庫存效率。去年底，我們開展了業務轉型分析，並據此制定了一項提高庫存管理效率的計畫。這是一個早期就提出的致勝策略，而且結果非常成功。

This chart shows you our inventory to sales ratio over the past five quarters and indicates that as revenue has grown, we have successfully operated the company with leaner inventories. This has in turn improved our overall balance sheet strength, giving us a higher investable cash position and has also helped contain tariff costs on excess inventory.

這張圖表顯示了我們過去五個季度的庫存銷售比率，顯示隨著收入的成長，我們成功地以更精簡的庫存來經營公司。這反過來又提高了我們整體的資產負債表實力，使我們擁有了更高的可投資現金，同時也有助於控制過剩庫存的關稅成本。

Let me now turn to our balance sheet. Balance sheet strength has been a hallmark of the company and will remain a hallmark of the company going forward. At the end of the second quarter with a net cash balance of $138.3 million, an increase of about 20% from the comparable quarter -- comparable year-end position of $115.5 million.

現在讓我來看看我們的資產負債表。資產負債表的穩健性一直是公司的標誌，並將繼續成為公司未來的標誌。第二季末，公司淨現金餘額為 1.383 億美元，比上一季成長約 20%——上年末淨現金餘額為 1.155 億美元。

The increase in our cash position, of course, is a consequence of our strong earnings as well as our working capital management, as I previously disclosed. As of today, the company can repurchase up to $25.7 million worth of shares, including $5.7 million of previously authorized unused share repurchase capacity plus an additional $20 million of share repurchase capacity just authorized by the Board.

當然，我們現金狀況的改善得益於我們強勁的獲利能力以及良好的營運資本管理，正如我之前所揭露的那樣。截至今日，該公司可回購價值高達 2,570 萬美元的股票，其中包括先前已授權但未使用的 570 萬美元股票回購額度，以及董事會剛授權的額外 2,000 萬美元股票回購額度。

We also announced in an 8-K that in late November, we have converted our commercial bank back-up credit line from an asset-based facility to a cash flow facility, which reduces its cost and provides the company with additional financing flexibility if necessary. So all in all, as our cash balance has increased, the company is in a terrific position to optimize its capital position and invest for higher returns for our stakeholders and particularly for our shareholders.

我們在 8-K 文件中宣布，11 月下旬，我們已將商業銀行備用信貸額度從資產抵押信貸轉換為現金流信貸，這降低了信貸成本，並在必要時為公司提供了額外的融資靈活性。總而言之，隨著現金餘額的增加，公司處於非常有利的地位，可以優化其資本狀況，並進行投資，從而為我們的利益相關者，特別是我們的股東，帶來更高的回報。

We have no borrowings, by the way, under our company's bank line of credit and none are contemplated. Let me now summarize our financial position and give you some ideas about the outlook. Again, we delivered a solid quarter of double-digit order revenue and income growth, while maintaining strong levels of operating profitability.

順便一提，我們公司目前沒有在銀行信貸額度下進行任何借款，也沒有這方面的計畫。現在讓我總結一下我們的財務狀況，並就前景展望提出一些看法。我們再次實現了兩位數的訂單收入和利潤成長，同時保持了強勁的營運獲利能力。

With the help of improved sales tools and processes and having more sales boots on the ground, we've built a strong backlog entering Q3 that gives us a good tailwind with a lot of capacity and potential revenue runway for the next few quarters and smoothing out our revenue generation over time. Our strengthened balance sheet offers us increased flexibility for capital optimization.

借助改進的銷售工具和流程，以及更多銷售人員的投入，我們在第三季度建立了強大的訂單儲備，這為我們提供了良好的發展動力，在未來幾個季度擁有充足的產能和潛在的收入增長空間，並使我們的收入增長隨著時間的推移而趨於平穩。我們增強的資產負債表為我們提供了更大的資本優化彈性。

Looking ahead, the third quarter of our fiscal years, as I mentioned earlier, are typically seasonally slower largely due to the fact, as I mentioned before, on the holidays, but we continue to target year-over-year revenue growth. We continue to invest in innovative products and services to extend our technology leadership.

展望未來，正如我之前提到的，我們財年的第三季度通常是季節性的淡季，這主要是因為假期的影響，但我們仍將以同比增長為目標。我們將繼續投資於創新產品和服務，以鞏固我們的技術領先地位。

And our focus on increasing the contribution that our services suite makes to consolidated revenue creates more recurring and less capital-intensive revenue streams, which is additive to our return on invested capital. Finally, we've, again, strengthened the balance sheet and have increased our share repurchase capacity to minimize the dilution in shares and contribute to investor returns. We are planning an Investor Day in early April, and we'll provide you with more specifics as they become available.

我們專注於提高服務組合對合併收入的貢獻，從而創造更多經常性收入和資本密集度較低的收入來源，這有助於提高我們的投資報酬率。最後，我們再次加強了資產負債表，並提高了股票回購能力，以最大限度地減少股票稀釋，並為投資者回報做出貢獻。我們計劃在四月初舉辦投資者日活動，具體細節將在確定後及時公佈。

Now I'll turn the call back to Brad.

現在我把電話轉回給布萊德。

All right. Thank you, Howard. Moving to slide 14. The forward-looking plan that we created three quarters ago was designed to materially improve our sustainable growth, market penetration, overall profitability and return on invested capital that our business model delivers. To date, our efforts are successfully accruing margin benefits, and we are tracking overall toward our objectives of operating margins of 10% to 12%, operating it in the top quartile return on invested capital target of 17% to 20% and achieving a compound annual growth rate of 7% to 10% by fiscal year 2028.

好的。謝謝你，霍華德。切換到第14張投影片。我們三個季度前製定的前瞻性計劃旨在從根本上改善我們的可持續成長、市場滲透率、整體盈利能力以及我們商業模式所帶來的投資資本回報率。迄今為止，我們的努力已成功帶來利潤成長，並且我們正朝著以下目標穩步邁進：營業利潤率達到 10% 至 12%，投資資本回報率達到 17% 至 20% 的前四分之一，並在 2028 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 work to do, and our team is committed to its success. Going forward, we will continue to implement improved financial planning protocols and incentive compensation plans that better align compensation with shareholder value and with annual operating performance, enhancing our ability to drive business results and compensate accordingly.

我們的計劃已經制定完畢。我們正在執行這項任務。我們還有很多工作要做，我們的團隊致力於取得成功。展望未來，我們將繼續實施改進的財務規劃規程和激勵薪酬計劃，使薪酬與股東價值和年度經營業績更好地掛鉤，從而增強我們推動業務成果並進行相應薪酬的能力。

Turning to slide 15. As we look forward to the second half, our product backlog, as Howard mentioned, is $321 million, up 36% year-over-year, capturing demand and driving multi-quarter revenue tailwind. We have demonstrated our increased efficiency and revenue conversion and successful inventory, supply chain, manufacturing and cost management. Our pipeline of market opportunities is supporting our growth objectives.

翻到第15張投影片。展望下半年，正如霍華德所提到的，我們的產品積壓訂單為 3.21 億美元，年增 36%，滿足了市場需求，並推動了多個季度的收入成長。我們已經證明了我們在提高效率和收入轉換率以及成功進行庫存、供應鏈、製造和成本管理方面的成就。我們擁有的市場機會儲備正在為我們的成長目標提供支援。

We are adding manufacturing capacity in Mexico and in Ireland to increase our flexibility and complement the 80% of product fulfillment currently completed in the US. We are staying responsive and flexible in a dynamic environment. We are focused on differentiated industry-leading product introductions and supporting growth through high-return product research and development, and we are executing our transformation plan with its benefits demonstrated in our results.

我們正在墨西哥和愛爾蘭增加生產能力，以提高我們的靈活性，並補充目前在美國完成的 80% 的產品交付。我們始終保持積極回應和靈活應對不斷變化的環境。我們專注於推出差異化的行業領先產品，並透過高回報的產品研發來支持成長，我們正在執行轉型計劃，其效益已在我們的業績中得到證明。

We are on track with our road map and our three-year growth, profitability and return targets. I want to thank the entire Daktronics team for their continued focus, strong performance, ingenuity and dedication.

我們正按計劃推進，實現三年成長、獲利和回報目標。我要感謝達科電子團隊全體成員的持續專注、出色表現、創新和敬業精神。

I'll now turn the call over to Andrew Siegel, Chairman of the Board, for some further remarks.

現在我將把電話交給董事會主席安德魯·西格爾，請他再補充幾句話。

Brad, thank you, and thanks to you and Howard for leading the team to another strong quarter as we'll execute on our plan to drive growth and shareholder returns. Both of you talked about the outlook. So it's an appropriate time for me to introduce Ramesh Jayaraman, who officially starts work at Daktronics today and will assume the President and CEO role as of the start of the fourth quarter in February.

布拉德，謝謝你，也感謝你和霍華德帶領團隊又取得了一個強勁的季度業績，我們將繼續執行計劃，推動增長並為股東帶來回報。你們倆都談到了前景。因此，現在正是我向大家介紹拉梅什·賈亞拉曼 (Ramesh Jayaraman) 的合適時機。他今天正式加入達科電子 (Daktronics) 公司，並將於 2 月第四季開始時擔任總裁兼執行長。

The Board's most important job is to make sure the person running the company has the energy, ambition, skills, experience, character and talent to lead the team to achieving the company's potential. Clearly, the steps that Board has taken over the past two-years demonstrate how much your Directors believe in and are committed to that potential.

董事會最重要的工作是確保公司領導者有足夠的精力、抱負、技能、經驗、品格和才能，帶領團隊實現公司的潛力。顯然，董事會在過去兩年中採取的措施表明，董事們對這一潛力抱有多大的信心和承諾。

You saw last week's announcement. So I don't need to repeat any of that except to summarize that the Board selected Ramesh from among many highly qualified and interested candidates for this position because he is a transformational leader. He's a proven operator, he's a business grower, he's built distribution channels all over the world, he's a high-energy guy who sets the sights high and build teams that deliver.

你已經看到了上週的公告。因此，我無需贅述，只需總結一下：董事會從眾多資歷深厚、積極進取的候選人中選擇拉梅什擔任此職位，是因為他是一位變革型領導者。他是一位經驗豐富的經營者，一位業務拓展者，他在世界各地建立了分銷管道，他精力充沛，目標遠大，並能組建高效的團隊。

He knows our industry well through his time at Harman and at Bosch. He's managed P&Ls, our size and bigger, and he's driven growth organically and through M&A at higher than market growth rates. So although he just started today and isn't in a place to start answering questions just yet, we wanted to use this opportunity to have him begin to introduce himself to all of you with more to come over the next few months, including at the Investor Day. Welcome, Ramesh.

他在哈曼和博世工作期間，對我們這個行業非常了解。他管理過損益表，規模與我們相當甚至更大的公司，並且透過內生成長和併購推動了公司實現高於市場平均成長率的成長。雖然他今天才剛上任，目前還不能回答問題，但我們想藉此機會讓他開始向大家介紹自己，在接下來的幾個月裡，包括在投資者日上，他還會與大家進行更多交流。歡迎你，拉梅什。

Thank you, Andrew. Good morning, everyone. I just want to take this opportunity to introduce myself and say how honored and energized I'm to join Daktronics. I have known Daktronics for the past nearly 10-years of association in the AV industry. I'm excited to join Daktronics at this pivotal time as we continue the journey of transformation for sustainable and profitable growth.

謝謝你，安德魯。各位早安。我想藉此機會自我介紹一下，並表達我加入達科電子的榮幸和熱情。在影音產業，我與達科電子公司已有近 10 年的合作經驗。我很高興在這個關鍵時刻加入達科電子，我們將繼續轉型，實現永續和獲利成長。

I'm looking forward to working with the very talented Daktronics team and serving the team as their CEO. I'll be officially starting in the CEO role from February 1. And my time between now and then will be to be on a look less and learn more, so I can hit the ground running in the fourth quarter. Thank you again for your interest in Daktronics, and I look forward to meeting you at the upcoming Investor Day in April.

我期待與才華橫溢的達科電子團隊合作，並以執行長的身份為團隊服務。我將於2月1日正式就任CEO一職。從現在到那時，我的時間將用來減少觀望，多學習，以便我能在第四季度迅速進入狀態。再次感謝您對達科電子的關注，並期待在四月的投資者日上與您見面。

Brad, back to you.

布拉德，把鏡頭交還給你。

Okay. Thank you, Ramesh, and thank you, Andrew. I'll now turn the call back over to the operator for questions.

好的。謝謝你，拉梅什，也謝謝你，安德魯。現在我將把電話轉回給接線員，以便回答問題。

(Operator Instructions) Aaron Spychalla, Craig-Hallum.

（操作說明）Aaron Spychalla，Craig-Hallum。

First, I appreciate the continued disclosures in the presentation this quarter, especially on the backlog by segment. Can you just maybe talk about how you expect that to convert to revenue over the fiscal year and just kind of the margin profile in there? I know it can kind of vary by segment. And then just you talked a little bit about order conversion, just how does kind of book to ship how does that look if we kind of think about backlog plus that?

首先，我讚賞本季度報告中持續披露的信息，特別是按業務板塊劃分的積壓訂單情況。您能否談談您預計這筆投資在本財年將如何轉化為收入，以及其中的利潤率？我知道不同群體的情況可能會有所不同。然後您剛才稍微談到了訂單轉換率，從預訂到出貨的轉換率是多少？如果我們考慮到積壓訂單等因素，轉換率會是什麼樣的？

Well, a lot of factors go into order to revenue conversion. The one that we try to highlight on this particular call is the idea, and we've talked about this before, that a higher percentage of our backlog is now in the live events segment. I mentioned statistically, our orders -- live events orders in the second quarter were 36% of our total orders, but in terms of the backlog, it's about 50%.

影響收入轉換率的因素有很多。我們在這次電話會議上想要重點強調的是，我們之前也討論過，我們積壓的工作中，現場活動部分所佔的比例越來越高。我之前提到過，從統計數據來看，我們第二季的現場活動訂單佔總訂單的 36%，但就積壓訂單而言，這一比例約為 50%。

So that gives you some idea of how the backlog is skewed a little bit more towards live events. And live events orders, as you may remember, are -- they typically don't start right away. So they're not standard orders. They're customized orders and they have different starting dates. We mentioned that the Titans order doesn't even start until after the third quarter. So that's not going to be revenue in the third quarter yet.

這樣你就能大致了解，在積壓的工作中，現場活動的比例稍微高了一些。您可能還記得，現場活動的訂單——通常不會立即開始。所以它們不是標準訂單。這些都是客製訂單，開始日期各不相同。我們之前提到過，泰坦隊的比賽要到第三節之後才開始。所以這還不會是第三季的營收。

And that the stadium orders that Brad has talked about, which are fantastic and give us a good -- great runway, those will be spread out over -- through the spring, actually. So it takes a while to get to orders sometimes, but the good news is that gives us more recurring revenue over a longer period of time and more predictable revenue over a period of time. So that's one big factor.

還有布拉德提到的體育場館指令，這些指令非常棒，給了我們一個很好的緩衝期，這些指令實際上會在整個春季陸續執行。所以有時需要一段時間才能收到訂單，但好消息是，這能讓我們在更長的時間內獲得更多經常性收入，並在一段時間內獲得更可預測的收入。所以這是其中一個重要因素。

I mentioned the seasonally slow third quarter. We'll have that again this year because we always have those holidays and same holidays occur every third quarter, and so that will be a factor. And then, of course, the remaining factor is our potential order growth. So on top of the chart, I want to make sure we're not misleading you by showing you that chart. That chart just speaks to the backlog conversion.

我提到了通常來說，第三季是淡季。今年我們還會遇到這種情況，因為我們總是會有這些假期，而且同樣的假期每季第三季都會出現，所以這將是一個影響因素。當然，剩下的因素就是我們的潛在訂單成長。所以，在圖表頂部，我想確保我們展示的這張圖表不會誤導您。此圖表僅反映了積壓訂單的轉換率。

Of course, we're going to get new orders every quarter, and that is also going to be converted to -- adding to revenue growth and revenue occurrence. So lots of factors, Aaron, go into this. The one that we try to highlight for you here is the distinction, if you will, between orders and when they will start occurring as it pertains to live events in particular.

當然，我們每季都會收到新訂單，這些訂單也會轉化為收入成長和收入發生。亞倫，這裡面有很多因素要考慮。我們在這裡想向你強調的是，訂單和訂單何時開始執行之間的區別，尤其是在現場活動中。

Yes. Maybe just to add on to that, Aaron. Our standard order business typically turns in weeks four, six, eight weeks and our large project business has all those variables that Howard mentioned. So we have room in our third quarter yet to bring in orders and convert it to revenue in our standard order business.

是的。或許我只是想補充一點，亞倫。我們的標準訂單業務通常需要 4、6、8 週才能完成，而我們的大型專案業務則有 Howard 提到的所有那些變數。因此，我們在第三季還有空間來增加訂單，並將標準訂單業務轉化為收入。

Understood. And then maybe can you just touch on the margins that you've been adding to backlog? And maybe just looking at like year-over-year the kind of margin improvements, any way to just, at a high level, roughly quantify the breakdown between some of the value-added pricing or operating efficiencies just kind of to get a better idea and really good performance, especially considering the tariff impact as well?

明白了。然後，您能否簡要介紹一下您一直在添加到待辦事項清單中的那些邊角料？或許可以從年比利潤率的改善情況來看，有沒有辦法從宏觀層面大致量化一些增值定價或營運效率的組成，以便更好地了解業績表現，尤其是在考慮到關稅影響的情況下？

Well, that is the story. Value-add pricing and the operating efficiencies coming off of the work that we've already done on structural cost savings have positively contributed to -- mostly to the operating margin. I focus your attention to that. Because our gross profit margin has a number of other factors connected to it that change from quarter-to-quarter.

故事就是這樣。增值定價和我們在結構性成本節約方面所做的工作所帶來的營運效率的提高，對——主要是對營業利潤率的提高——做出了積極貢獻。請你注意這一點。因為我們的毛利率也受到許多其他因素的影響，這些因素每季都會改變。

But the storyline here is that we got pretty close again to a 10% operating margin and that really is a value-based pricing, order growth, structural cost efficiencies coming off of the work that we did already last year, offset in part by the extra tariff. So -- and that's a big item because our extra tariff expense this year is almost another $8 million on the tariff expense that we had in the quarter of this year that we didn't have a year ago, and we -- our margin is still up from where it was a year ago.

但這裡的故事是，我們再次非常接近 10% 的營業利潤率，這確實是基於價值定價、訂單成長以及去年已完成工作帶來的結構性成本效率，部分被額外的關稅所抵消。所以——這是一個很大的項目，因為我們今年的額外關稅支出比去年同期增加了近 800 萬美元，而去年同期我們並沒有這筆關稅支出，而且——我們的利潤率仍然比去年同期有所提高。

Yes. Understood. Yes, I was just trying to understand if you did kind of ex the tariff impact, it's almost 13% operating margin, up 400 basis points year-over-year. I was just trying to understand any kind of breakdown of what that split could be between value-added pricing and just maybe some breakdown of the operating initiatives.

是的。明白了。是的，我只是想了解一下，如果你已經扣除了關稅的影響，營業利潤率接近 13%，比去年同期成長 400 個基點。我只是想了解一下增值定價和營運舉措之間的具體分配比例。

But maybe third on the Mexico plant, can you just talk about how much that expands capacity by maybe in percentage terms or dollar terms? Are there any kind of segments this is focused on, in particular, and it seems like there's some benefits to the business from a tariff perspective. Just how much investment might be needed for that plant?

但關於墨西哥工廠的第三點，您能否談談它能以百分比或美元的形式擴大多少產能？這項政策主要針對哪些細分市場？從關稅角度來看，這似乎對企業有一些好處。這座工廠究竟需要多少投資？

Yes. It's a small investment. We're leasing the facility in Mexico. We're putting some equipment in there. What we build and how we go about it is going to be determined over time, but this was complementary to our plants here in the US as well. So we're able to bring product in, have it assembled, manufactured and brought into the States. It's a small operation at this time.

是的。這是一筆小投資。我們在墨西哥租了這間設施。我們正在裡面安裝一些設備。我們將建造什麼以及如何建造將隨著時間的推移而決定，但這與我們在美國的工廠也是互補的。因此，我們能夠將產品進口到美國，進行組裝、製造，然後運送到美國。目前規模還很小。

We have room for growth if we need to do that, and that leads into that comment I made about optionality earlier today, optionality into the future about our overall production capacity and where it's at and how it plays into tariffs and all the other things that come our way. So it's a small operation at this time.

如果需要，我們還有成長空間，這引出了我今天早些時候提到的關於選擇權的評論，即未來關於我們整體生產能力的選擇權，以及它如何影響關稅和所有其他可能發生的事情。所以目前這只是個小規模的行動。

No, I appreciate that. And then just maybe one last quick one. I appreciate again the slide on inventory management and just good to see the working capital management over the last year getting the cash conversion cycle down to kind of pre-COVID levels. Just how do you see that trending moving forward? How much more room for improvement do you see from those types of initiatives on working capital?

不，我很感激。然後，也許可以再來一個簡短的。我再次感謝您提供的關於庫存管理的幻燈片，很高興看到過去一年營運資金管理方面的工作，現金週轉週期已降至新冠疫情前的水平。您認為這種趨勢未來會如何發展？您認為這類在營運資金方面的措施還有多少改善空間？

I'd say it's going to remain a focus of the company, but we're pretty much where we try to get to as a result of the analysis that we did last year and basically pairing off excess inventory and putting in place the processes to keep it managed efficiently. So it'd be misleading to say it's going to improve a lot more from where it is right now. But as revenue grows, that's going to have a positive impact.

我認為這仍將是公司的重點，但我們已經基本達到了我們去年分析的目標，基本上是透過將過剩庫存進行匹配並建立流程來有效管理庫存而實現的。因此，如果說它會比現在的情況有更大的改善，那就具有誤導性了。但隨著收入增長，這將產生積極影響。

(Operator Instructions) Anja Soderstrom, Sidoti.

（操作說明）安雅·索德斯特羅姆，西多蒂。

Congrats on the nice performance here, and welcome on board Ramesh. I'm curious, given the strong backlog growth that we saw, how should we think about the third quarter softening?

恭喜你在這裡表現出色，歡迎拉梅什加入我們。鑑於我們看到的強勁積壓訂單成長，我很好奇我們應該如何看待第三季的疲軟態勢？

Well, you mentioned it. We have a great backlog coming in. The softening, Howard talked about it as far as the holidays, we have fewer days, fewer available work days to convert inventory or convert our backlog over into revenue. So that's the primary thing. But we are sitting in a nice backlog, and we'll use the factories to the extent that we can and plan to have employees take some time off during the holidays.

嗯，你剛才提到了。我們積壓了很多工作即將完成。霍華德談到假期期間的疲軟，我們可用於轉換庫存或將積壓訂單轉化為收入的工作日減少了。所以，這是最重要的事。但我們目前積壓了不少訂單，我們會盡可能利用工廠的生產能力，並計劃讓員工在假期期間休息一段時間。

Okay. And then in terms of the capacity, I know you are adding the Mexico plant, how should we think about the capacity utilization in the US and in the other facilities? Are you continue some production from there to Mexico or are you seeing the growth going into Mexico?

好的。至於產能方面，我知道你們正在墨西哥新建工廠，我們該如何考慮美國和其他工廠的產能利用率呢？你們會繼續從那裡向墨西哥輸送部分產品，還是說你們的成長重心已經轉移到墨西哥了？

No, this is really fitting into our growth objectives. So we -- that's the overall plan, the 7% to 10% that we talked about over the next three-years. This is complementary to that. So we don't plan to move any work from the US factories over to Mexico, and so this is part of our expansion plans.

不，這完全符合我們的成長目標。所以，這就是我們的總體計劃，也就是我們之前討論的未來三年內成長 7% 到 10%。這是那件事的補充。因此，我們不打算將任何工作從美國工廠轉移到墨西哥，這是我們擴張計劃的一部分。

And how far is this expansion is going to bring in terms of revenue before you need to expand further? Or is there other way you could expand in terms of -- no, how much revenue can this footprint facilitate before you need to expand further?

這次擴張能帶來多大的收入成長，之後才需要進一步擴張？或者，還有其他擴張方式嗎？ ——不，在需要進一步擴張之前，目前的規模能帶來多少收入？

Yes. This is a small footprint that we're bringing in over there and about 80% of what we manufacture for our customers worldwide comes out of our US factories. And that hasn't -- this isn't changing with that. So this is a part of our overall expansion plans of revenue, and it's a small footprint, like I mentioned. So I would still foresee us being around that 80% here in the US So just making up part of that growth expansion.

是的。這是我們引進到那裡的少量設備，我們為全球客戶生產的產品中約有 80% 產自我們的美國工廠。但這種情況並沒有改變——它不會因此而改變。所以這是我們整體營收擴張計畫的一部分，而且正如我剛才提到的，它規模很小。所以我仍然預期我們在美國能占到那 80% 左右，成為經濟成長的一部分。

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

我目前不再提出其他問題。現在，我謹將會議交還給布萊德·維曼，請他作閉幕致詞。

Well, thank you, everyone, for joining the call today. And we will be appearing at the Sidoti conference in January. Have a wonderful holiday season, as we want our employees to do as well. And we look forward to speaking with you on our third conference call, our third quarter call. Have a great day.

謝謝大家今天參加電話會議。我們將於一月出席 Sidoti 會議。祝您假期愉快，我們也希望我們的員工都能度過一個美好的假期。我們期待在第三次電話會議，也就是第三季電話會議上與您交流。祝你有美好的一天。

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。