Financial Data and Key Metrics Changes - Q1 2026 revenue increased by 6.2% to $5.6 million, driven by the delivery of a custom cinema project and other client work [17] - Gross profit rose by 22% to $1.7 million, with an improved gross margin of 30% compared to 26.1% in Q1 2025 [17] - Operating expenses decreased by 8% to $1.32 million in Q1 2026, down from $1.44 million in Q1 2025 [17] - Operating income improved to $350,000 from an operating loss of $68,000 in the same period last year [18] - Net income for Q1 2026 was $509,000 or $0.05 per share, compared to a net loss of $25,000 in Q1 2025 [18] - Working capital rose by 12% to $4.8 million at the close of Q1 2026 [19] Business Line Data and Key Metrics Changes - The company achieved profitability in Q1 2026 due to higher revenue and lower operating expenses, reflecting solid operational execution [4][7] - The acquisition of the DCS Cinema loudspeaker line is expected to enhance the company's product offerings and market position [10][12] Market Data and Key Metrics Changes - Domestic box office receipts for Q3 were approximately $2.4 billion, nearly matching the previous year, indicating a stable exhibition industry [5] - The company anticipates Q2 2026 revenue of approximately $3.4 million, reflecting the impact of the holiday season on capital spending [20] Company Strategy and Development Direction - The company aims to build on its value proposition with new products and capabilities, particularly through the acquisition of DCS Cinema [5][12] - Focus on improving operational and financial performance while expanding capabilities to support customer needs in cinema technology [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the exhibition industry outlook, citing improved domestic box office trends and a stronger release calendar [14] - The company believes that the aging of legacy cinema systems will provide increasing opportunities for growth [14] Other Important Information - The acquisition of DCS Cinema was completed for $1.5 million in cash, expected to be accretive to the bottom line within two to three years [11][19] - The company has no long-term debt and maintains a solid cash position to support its operations and growth initiatives [19] Q&A Session Summary Question: Insights on DCS speaker line and revenue potential - The company intends to recoup the $1.5 million purchase cost of the DCS speaker line within two to three years [24] - The DCS line is well-respected and has significant potential that the previous owners may not have fully realized [25][26] Question: Compatibility with LEA power amplifiers - There are synergies between the DCS line and LEA power amplifiers, which could accelerate market acceptance [27] Question: Revenue opportunity for DCS speakers in theaters - Specific figures regarding revenue opportunities for outfitting theaters with DCS speakers were not available during the call [28] Question: International market approach and game plan - A clearer picture of the international market strategy will emerge after the onboarding process of the DCS business is completed [29]