Daktronics, Inc.

Thank you for standing by, and welcome to the Daktronics Third Quarter Fiscal Year 2026 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 the session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Lindsay Vedder. Please go ahead.

Thank you, Jonathan. 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 expectations that could cause actual results to differ materially from these expectations. During this presentation, we will also refer to non-GAAP financial measures. You can find the reconciliation of each non-GAAP measure to the most directly comparable GAAP measure in the appendix to the accompanying presentation slides, which may be found on the investor relations page of our website at www.dektronix.com. Our earnings released for the 2026 third quarter, which was furnished to the SEC on Forum 8K this morning, also contains certain 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 Ernie's release, which has been posted separately to the investor relations page of our website. I'll turn the call over to Brad Wieman, Interim President and CEO through the third quarter for his review.

Well, good morning, everyone. Welcome to our call. Thank you for joining our third quarter fiscal 2026 call. I'm joined on the call by Howard Adkins, board member and acting chief financial officer, along with Ramesh Jayaraman, CEO and president, who is officially in the role as of February 1st. We will review our fiscal 2026 third quarter, which ended on January 31st, 2026, along with the results and accomplishments, and then take your questions. Turning to our slide presentation on slide three, here are the key messages for the third quarter. The team delivered another quarter of solid results, driving revenue growth of 21.6% year over year, despite the effectively shorter work period due to the three major holidays, as well as adverse weather conditions throughout the quarter. Our manufacturing team did a superb job in officially converting the order book we had built over the past few quarters. During the quarter, we progressed with several large-scale installations, including five Major League Baseball stadiums, such as the Seattle Mariner, as well as the University of Illinois football's video scoring system. Orders in the quarter were once again over $200 million. Our sales and marketing team secured large orders in our live event segment. Our transportation segment had a record quarter with a good uptake in airport and intelligent transportation system projects. With new order growth in the quarter at 7.6%, our product and services backlog grew to $342 million coming into Q4 and is 25% higher than it was this time last year. In December, we announced our acquisition of the intellectual property and the absorption of associated engineering teams from X Display Companies, or XTC, expanding our micro-LED and micro-integrated circuit capabilities. XTC advances our high-resolution, narrow-pixel-pitch product offerings and provides us a cost-effective pathway to service small-volume display opportunities with medium-sized disclosed solutions. While the Supreme Court decision on reciprocal tariffs is now known, the market outcome with respect to refunds is likely to be highly uncertain for the foreseeable future. Turning to slide 4. In our live events business, as I mentioned, we won another Major League Baseball project in the quarter, making us 6-for-6 a large Major League Baseball project in fiscal 26. Additionally, we won several other stadium and arena display enhancements as customers continue to expand their digital display footprint throughout their venues. We continue to enhance our product and service offerings to align with customer needs, such as our narrow pitch-to-pitch product line, advanced control system capabilities to engage fans, and improved seamless control and management of displayed content from anywhere, giving venue operators greater flexibility and control over their digital assets. Pictured here is the Seattle Mariners project. In our commercial business, on-premise advertising business remains strong. Customers continue to successfully transition to next-generation field-type products which was supported by a large order from a national customer. In our out-of-home business, we added several new customers this quarter, but we're down overall due to purchase delays from a key account, which we expect to recover in the fourth quarter. Our pipeline of opportunities continues to expand with independent billboard operators as more and more customers recognize our value proposition based on brand strength, image quality, reliability, service responsiveness, and reputation for innovation with the release of our new billboard products. In our outdoor spectacular segment, we booked a large order in Times Square, and we grew our pipeline of projects. We also expanded our indoor business sold through audio-visual integrator channels through our offerings of narrow pixel-pitch ship-on-board products. Pictured here is the Miami Beach Convention Center. Transportation business orders for both intelligent transportation systems and aviation were up a record 130% from last year. We secured a very significant project with one of the top five airports in the U.S., along with new orders from Caltrans in California. Pictured here is a rendering of that top five airport wind. In international, after a great order year in the third quarter of 2025, our international business was down from last year. However, we've secured sizable orders from two stadium customers in Spain and Australia as they are expanding their systems. We also see a strong uptake in indoor solutions across multiple markets, especially government entities, through growing our audio-visual integrator channel partners. Pictured here is an indoor video display at the United Arab Emirates University. The high school park and recreation continues to have a solid year with third quarter order growth of 13.4% over the last year. We have expanded our presence among the 37,000 high schools in the US and continue to win projects by leveraging our position in the communities we serve and enhancing our differentiating financial service offerings through Daktronics Sports Marketing. We expect continued strong uptake in our leading solutions and adoption of professional services, particularly in high school curriculum development and DAK classroom service offerings. Pictured here is Marathon High School in Florida. Turning to slide five. Key product releases. Our commitment to innovation continues to differentiate us as a value provider among our customers. In the third quarter, we introduced our next generation indoor video solution for high school arenas, as well as a next generation digital audio facade for outdoor audio solutions. For the remainder of fiscal 2026, we have two additional product launches planned. our next-generation LED street furniture, as well as specialized large-digit fuel price system offerings, which expands our product line for high-rise signage and long-distance viewability. The photos here show an example of our indoor narrow pixel pitch at Eldon High School in Eldon, Iowa, and our new digital audio facade installed at Dallas Independent School District in Dallas, Texas. Turning to slide six. Our plan to achieve a sustainably higher profit growth for the company remains on track in the third quarter. Here's an update of the third quarter on initiatives and progress. The strategic price adjustments we have implemented align with our value selling approach. The development of our software as a service initiative augments how we serve the market. developing recurring revenue subscription models, and simplifying our customer engagement. We are digitizing most aspects of our business to make it easier and faster for customers to do business with us and to improve internal operating efficiency and are actively applying artificial intelligence to improve productivity throughout the company. I will now turn it over to Howard Adkins, our Acting Chief Financial Officer, to review our financials. Howard?