Daktronics (NasdaqGS:DAKT) Conference January 22, 2026 02:30 PM ET Company ParticipantsHoward Atkins - CFOBrad Wiemann - CEOConference Call ParticipantsAnja Soderstrom - Senior Equity AnalystAnja SoderstromGood afternoon. We're going live with Daktronics. I'm going to give it a couple of seconds for the audience to populate before we kick it off. Okay, so good afternoon, everyone. We have Daktronics with us here, ticker DAKT. I'm Anja Soderstrom, a senior equity analyst here at Sidoti, covering the name. My ...

Core Insights - The article highlights the significant role of LED screens in various industries, particularly in film production and immersive entertainment experiences, emphasizing that nearly 80% of global LED display products are sourced from China, with Guangdong Huizhou being a key production area [1][2]. Group 1: Industry Development - The LED screen industry has evolved from traditional manufacturing to intelligent manufacturing, enhancing the quality and performance of products [3]. - LED screens are now utilized in diverse applications, including outdoor advertising, 8K ultra-high-definition televisions, smart car interiors, and immersive virtual spaces for cultural tourism projects [4]. Group 2: Technological Advancements - The use of LED screens in film production has eliminated the need for physical sets, relying instead on virtual studios that require high display quality, addressing challenges such as refresh rates and moiré patterns [5]. - Innovations in LED technology have led to the development of specialized products for film shooting, ensuring natural and clear visuals for both the naked eye and cameras [5]. Group 3: Digital Transformation - The demand for larger and more impactful LED screens has driven companies towards digital transformation, ensuring product quality and maintenance efficiency [7]. - Each LED display module is now equipped with a QR code that provides comprehensive production information, enabling full lifecycle quality management [9]. Group 4: Collaborative Innovation - The presence of a complete industrial chain in Huizhou allows for rapid problem-solving, reducing the time needed to address technical challenges from months to weeks [10]. - This efficient collaboration has accelerated product iteration and expanded the reach of Chinese LED products to global events and immersive experiences in various countries [12]. Group 5: Market Growth - The Guangdong super high-definition video industry is projected to exceed 900 billion yuan in revenue by 2024, positioning it as the tenth trillion-yuan industry cluster in Guangdong [14]. - The advancements in LED technology and collaborative innovation are contributing to the rise of a trillion-yuan industry cluster, providing robust hardware support for the high-quality development of China's film and cultural industries [14].

Core Viewpoint - The LED display industry in Guangdong Huizhou is pivotal for global film production and immersive entertainment experiences, with nearly 80% of LED display products sourced from China [1][13]. Group 1: Technological Advancements - The LED screens used in film production have overcome challenges related to high-definition display, color reproduction, and moiré pattern optimization, ensuring that visuals appear natural and clear both to the naked eye and on camera [4][6]. - The production of LED screens has transitioned from traditional manufacturing to intelligent manufacturing, with digital transformation enhancing quality management through real-time data tracking [8]. Group 2: Industry Collaboration - The LED industry in Huizhou benefits from a complete supply chain, allowing for rapid problem-solving and innovation through collaboration among upstream and downstream enterprises, reducing the time to address technical challenges from months to weeks [11]. - This efficient collaboration has accelerated product iteration and expanded the reach of Chinese LED products to global events and immersive experiences in various countries [13]. Group 3: Market Growth and Economic Impact - The Guangdong ultra-high-definition video industry is projected to exceed 900 billion yuan in revenue by 2024, positioning it as the tenth trillion-yuan industry cluster in Guangdong [13]. - The rise of the LED industry in Guangdong is contributing significantly to the high-quality development of China's film and cultural industries, supported by robust hardware capabilities [15].

Core Insights - The global LED video display market is projected to see an 8.3% year-on-year increase in shipment volume and a 6.9% increase in revenue by Q3 2025, driven by strong performance in the Middle East, Africa, Asia, Oceania, and Latin America despite declines in Eastern Europe and North America [1] Group 1: Market Performance - The Asia-Pacific region (excluding China) leads the global market with a shipment share of 17.2% and a revenue share of 16.1%, experiencing a shipment growth of 35.9% and revenue growth of 39.8% [3] - The Middle East and Africa have become key growth drivers, with a shipment share rising to 6.8%, the highest since 2021, fueled by infrastructure development and investments in digital transportation and sports venues [3] - In China, the market's shipment share has dropped to its lowest level since 2021, with a shipment growth of 2.3% but a revenue decline of 7.1%, as demand shifts towards control rooms and industries requiring smaller pixel pitches and ultra-high-definition displays [3] Group 2: Technological Innovations - Advances in Mini-LED and Micro-LED production technologies are reshaping the market, particularly through the development of Chip-on-Board (COB) and Micro LED in Package (MIP) technologies, which enhance performance and efficiency while reducing costs [1] - AI technology is being leveraged to improve energy efficiency and image quality, particularly in major markets like China and Western Europe, by automatically adjusting brightness based on power-critical areas [2] - The demand for LED displays is growing across various applications, including immersive cultural displays in public spaces, AI-driven digital signage in retail, and high-resolution monitoring solutions in smart city command centers and data centers [2] Group 3: Regional Market Dynamics - North America shows resilience amid recent tariff adjustments, with companies like Samsung, AOTO, Unilumin, and SiliconCore achieving year-on-year growth in high-value segments such as small-pitch displays and virtual production [4] - The expansion of manufacturing lines outside of China is expected to further support market development in the Latin America and Caribbean regions [4]

12月24日，Omdia发布最新报告指出，2025年第三季度全球LED视频显示产品出货量同比增长8.3%，营 收同比增长6.9%。尽管东欧和北美市场出现两位数下滑，但在中东及非洲、亚洲及大洋洲以及拉丁美 洲和加勒比地区强劲表现的带动下，整体市场仍保持稳定增长。 ...

Core Viewpoint - The case study highlights how Zhouming Technology utilized LED visual and audio integration solutions to support the 15th National Games, showcasing its innovative approach to smart sports venues and contributing to the economic vitality of the Guangdong-Hong Kong-Macao Greater Bay Area [1][19]. Group 1: Event Overview - The 15th National Games took place from November 9 to 21, 2025, across Guangdong, Hong Kong, and Macao, marking the first joint hosting of a national sports event by these regions [4]. - Zhouming Technology deployed over 10,000 square meters of LED displays and smart lighting products across more than 20 major venues, achieving comprehensive visual coverage for the event [4][5]. Group 2: Technological Integration - Zhouming's audio-visual integration solutions included a full range of products such as LED displays, sound systems, and lighting, all controlled by a centralized platform to ensure synchronized operation [9][10]. - The integration of AI technology into the LED smart lighting system allowed for real-time monitoring and adjustments, reducing energy consumption by over 30% while enhancing the spectator experience [12]. Group 3: Economic Impact - The event generated significant economic activity, with market development revenue reaching 1.84 billion yuan, and tourism in Guangzhou and Shenzhen seeing year-on-year increases of 114.5% and 134.2% in accommodation and entertainment spending, respectively [15][16]. - Zhouming's solutions not only supported the event but also activated the "sports + cultural tourism" economic model, creating a closed-loop economy from event hosting to consumer engagement [15][16]. Group 4: Post-Event Value - Zhouming's solutions are designed for post-event utilization, allowing venues to transition to community sports and educational activities, thereby enhancing public access to sports facilities [17][19]. - The technology implemented will continue to support various events and activities, enriching the cultural and recreational life of the community [19].

Core Viewpoint - The company highlights that in traditional LED displays, the largest cost component is the lamp beads, while in MicroLED technology, the chip cost is the most significant. The MicroLED industry is still in its early development stage, and breakthroughs in chip cutting technology could significantly reduce costs, enhancing the cost-performance ratio of MicroLED products and expanding their application range [1] Group 1: Cost Structure - In traditional LED displays, lamp beads represent the largest portion of costs [1] - In MicroLED technology, chip costs are the highest [1] Group 2: Industry Development - The entire MicroLED industry chain is currently in the early stages of development [1] - A breakthrough in upstream chip cutting technology could lead to significant cost reductions [1] Group 3: Product Application and Market Demand - The company's MicroLED products have been successfully applied in high-end meetings, cinemas, all-in-one machines, and special industries [1] - MicroLED products maintain a relatively stable and high-profit level within the company's display categories [1] - There has been a notable increase in overseas demand for MicroLED products this year [1]

Core Viewpoint - The article highlights that ULVAC has won a bid to supply a sputtering machine for the MLED BP equipment upgrade and technical transformation project for Yuansheng Optoelectronics, a subsidiary of BOE Technology Group [2][5]. Company Overview - Yuansheng Optoelectronics is a wholly-owned subsidiary of BOE, operating the B6 factory in Inner Mongolia, which began operations in 2013 and is capable of producing 5.5-generation LCD and rigid OLED panels. The LCD panels are primarily used in automotive displays and medical devices, while OLED products focus on mobile devices [5]. - The sputtering machine is a Physical Vapor Deposition (PVD) device used to create thin films on substrates in a vacuum environment, essential for constructing circuits on the backplane (BP) of Mini and Micro LED chips [5]. Equipment Details - The specific equipment being supplied is the SMD-1500 sputtering machine, suitable for 5.5-generation glass substrates measuring 1300 mm x 1500 mm. Although the price of the equipment was not disclosed, it was previously reported that similar machines were sold for 490 million KRW each [6]. - This collaboration between ULVAC and BOE is not new, as they have a history of working together in the equipment supply sector. The current delivery of a single sputtering machine is likely aimed at performance validation for MLED BP production processes [6].

Core Viewpoint - Xiaomi is set to launch the Xiaomi 17 series, including Xiaomi 17, Xiaomi 17 Pro, and Xiaomi 17 Pro Max, which will feature significant upgrades and competitive specifications against the iPhone [2][3]. Group 1: Product Specifications - The Xiaomi 17 series will globally debut the fifth-generation Snapdragon 8 flagship processor, with single-core scores exceeding 4000 and multi-core scores over 11000 on GeekBench 6, and AnTuTu scores surpassing 4 million [3]. - The Xiaomi 17 will feature a 6.3-inch 1.5K display, while the Xiaomi 17 Pro Max will have a larger 6.85-inch 2K display [3]. - The Xiaomi 17 will be equipped with a 7000mAh battery, supporting 100W wired fast charging and 50W wireless fast charging [4]. Group 2: Collaboration and Branding - The Xiaomi 17 series continues the collaboration between Xiaomi and Leica for camera technology development [7].

Core Viewpoint - The company, Zhouming Technology, has successfully commercialized its textured screen, a new type of LED display that integrates artistic design with functional display capabilities [1] Group 1: Product Innovation - The textured screen features a nano-optical layer that allows it to display realistic textures such as wood grain, marble, and concrete when not in use, while functioning as a high-definition display when powered on [1] - The product embodies the philosophy of "displaying art when off, and showing content when on," aiming to merge display technology with architectural materials [1] Group 2: Market Impact - The introduction of the Unatural textured screen is expected to lead LED displays into the decorative building materials market, significantly enhancing the application and popularity of LED technology [1] - The textured screen is designed to revitalize various spaces, including homes, hotels, retail environments, office buildings, restaurants, and cultural and public spaces, thereby giving "new life and vitality" to these areas [1]