Financial Data and Key Metrics Changes - Revenue growth of 21.6% year-over-year, reaching $182 million in Q3 2026, despite challenges from holidays and adverse weather [4][15] - Net income after tax was $3 million, or $0.06 per fully diluted share, with adjusted net income rising to $4.6 million [17][18] - Gross profit margin remained flat at 24%, impacted by lower margin projects in the Live Events segment and additional tariff expenses of $6 million [16][17] Business Line Data and Key Metrics Changes - Live Events segment saw significant project wins, including six Major League Baseball projects, contributing to a robust backlog [5][6] - Transportation segment orders increased by a record 130% year-over-year, with notable projects secured at major U.S. airports [9][10] - Commercial business remains strong, although there was a temporary decline in out-of-home advertising due to delays from a key account [8][36] Market Data and Key Metrics Changes - International business experienced a decline compared to last year, but secured significant orders from stadiums in Spain and Australia [10] - High school market orders grew by 13.4% year-over-year, reflecting strong demand for digital display solutions [11] - The overall market sentiment remains positive, with projects moving forward and being well-funded [53] Company Strategy and Development Direction - The company is focused on enhancing product offerings, including narrow pixel pitch products and advanced control systems [8][12] - Strategic price adjustments and the development of software-as-a-service initiatives are aimed at improving customer engagement and recurring revenue [12] - The company plans to continue investing in operational excellence and product innovation to maintain competitive advantages [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong momentum heading into Q4 2026, supported by a solid backlog and market demand [28][29] - The company is adapting to geopolitical uncertainties and maintaining a flexible operational approach [44] - Future growth strategies will focus on customer-led initiatives and optimizing profitability [30] Other Important Information - The company announced the acquisition of intellectual property from X Display Company, enhancing its capabilities in Micro LED technology [6] - A share repurchase program has been ongoing, with approximately 1.3 million shares repurchased at an average price of $17.6 [23][24] - The cash balance at the end of the quarter was $144 million, reflecting a 13% increase from the previous year [24] Q&A Session Summary Question: Can you discuss the pipeline and win rates in Live Events? - Management noted a robust pipeline and strong win rates, with a successful track record in Major League Baseball projects [32][33] Question: What is the status of the commercial market and reseller channels? - The commercial market remains strong, with ongoing growth in the reseller and integrator channels, particularly in indoor product lines [35][39] Question: How are margins expected to evolve given the tariff impacts? - Management indicated that operational initiatives are well underway, with expectations for margin improvements as these initiatives are fully realized [41][42] Question: What is the outlook for the Mexico facility? - The Mexico facility is on track to be operational by the first quarter of FY 2027, with no significant impact on margins anticipated [50] Question: How is customer sentiment amid current uncertainties? - Overall sentiment remains positive, with projects being well-funded and moving forward, particularly in the U.S. market [53]

Fiscal Third Quarter 2026 Results Call March 4, 2026 NASDAQ: DAKT CONTROL SYSTEMS DYNAMIC MESSAGE SIGNS SAFE HARBOR STATEMENT Forward-Looking Statements: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the federal securities laws and is intended to receive the protections of such laws. All statements, other than historical facts, included or incorporated in this release could be deemed forward-looking statements, particularly statemen ...