Daktronics, Inc.

Good day, and thank you for standing by. Welcome to the Daktronics third quarter fiscal year 2025 financial results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Carla Gasky, Corporate Secretary. Please go ahead.

Thank you. Good morning, everyone. Thank you for participating in our third quarter earnings conference call. 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. Of course, actual results could differ. Please refer to slide two 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 recommendations. During this presentation, we will also refer to non-GAAP financial measures. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure in appendix to the accompanying presentation slides, which may be found in the investor relations page of our website at www.dactronics.com. Our earnings release for the 2025 third quarter, which was furnished to the SEC on a form this morning, also contains non-GAAP financial measures Reconciliation of these non-GAAP financial measures to the most directly comparable 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 investors' relations page of our website. I'll turn the call over to our current lead independent director to become chairman of the board, Andrew Siegel.

Thanks, Carl. Hi, everyone. I'm Andrew Siegel here in Brookings with the team. First, I'd like to thank the investors who have dialed in today. And before we move into a review of the results from the quarter, I'd like to share some perspective from the board regarding the leadership transition that you would have seen in the company's press release earlier this morning. After more than 34 years at Daktronics, Rich Kurtenbach is stepping down from his role as chairman, president, and CEO. So on behalf of the board, I'd like to thank Rich for his many years of leadership and commitment to Daktronics His commitment to you, our investors, our employees, our customers, and the communities we serve, and for all that he's accomplished, strengthen and protect the company's resilient position as a recognized industry leader with world-class strengths in product design and engineering, manufacturing, and of course, the installation, integration, and services capabilities that allow us to exceed our customers' expectations. We're making this change today to move more quickly and demonstrably toward our objective of growing long-term shareholder value. To capitalize on the tremendous opportunity that our end markets represent, we believe the company must accelerate change to enhance our global competitiveness and drive new levels of commercial success and financial performance. To do this, the board believes we have to add new capabilities around these core strengths I mentioned just a moment ago. Today's announcement reflects our commitment to ensuring that we have the right leadership for long-term growth, profitability, and balance sheet efficiency goals. The board will engage a nationally recognized executive search firm to help identify a permanent CEO who will lead Daktronics on this mission. While this process continues, the board has appointed Brad Wieman, the company's executive vice president, as interim president and CEO. Brad's been with Daktronics since 1993. Earlier in his career, he served the company across manufacturing, engineering, product development, and other functions. In his current role, he oversees the company's commercial and high school and parks and recreation business, which makes him responsible for about 35% of the company's revenue. Additionally, the board has asked board member Howard Atkins to serve as acting CEO until a permanent CFO is named, allowing Sheila Anderson, to fully dedicate herself to her previously announced new role of Chief Data and Analytics Officer. Howard will also continue to serve as the Chief Transformation Officer, in both cases partnering closely with Brad.