Total Revenue

Down ~12% (from $170.30M in Q3 2024 to $149.51M in Q3 2025)

Total Revenue declined by roughly 12% YoY due to lower overall sales volumes and a contraction in key domestic markets, reflecting weaker demand compared to Q3 2024. " " " "

U.S. Revenue

Down ~17% (from $152.96M in Q3 2024 to $127.16M in Q3 2025)

U.S. Revenue fell by about 17% YoY, indicating significant softness in the domestic market which likely resulted from reduced orders and potential challenges in core business segments relative to the previous period. " "

International Revenue

Up ~29% (from $17.34M in Q3 2024 to $22.35M in Q3 2025)

International Revenue increased by approximately 29% YoY, suggesting stronger performance and market penetration overseas—this growth contrasts with domestic declines and reflects improved export or international demand compared to Q3 2024. " "

Operating Performance

Shift from operating income of $8.04M in Q3 2024 to an operating loss of $3.63M in Q3 2025; Basic EPS turned negative from $0.23 to -$0.36

Operating performance deteriorated dramatically with margin compression and cost challenges; the shift to an operating loss and negative EPS indicates that rising expenses, potential adverse sales mix effects, and lower revenue from key segments have eroded profitability relative to the prior period. " " "

Liquidity

Cash increased to $132.17M (up from $76.76M) and long-term debt decreased to $41.02M (down from $53.16M)

Liquidity improved markedly as stronger cash flows, effective working capital management, and strategic debt reduction bolstered the balance sheet, even while operating results weakened; this suggests a deliberate focus on financial stability despite declining operational performance. " " " "

Revenue Growth

FY 2028

no prior guidance

7% to 10% "

no prior guidance

Operating Margins

FY 2028

no prior guidance

10% to 12% "

no prior guidance

Return on Capital

FY 2028

no prior guidance

17% to 20% "

no prior guidance

Order Bookings

FY 2028

no prior guidance

year-over-year growth "

no prior guidance

Digital Transformation

FY 2028

no prior guidance

$1 million to $2 million (to be spent in Q4 FY 2025) "

no prior guidance

Product Development

FY 2028

no prior guidance

$40 million annually "

no prior guidance

International Market Performance & Geopolitical Uncertainty

Q4 2024 noted improved orders with easing geopolitical delays " " ; Q1 mentioned overall slow international market with delayed decisions " ; Q2 detailed declining orders and uncertainty tied to tariffs and geopolitical risk. " " " "

Q3 highlights improved conversion from quotes to orders if no geopolitical incident occurs, with continued caution on international softness. "

Consistently relevant; sentiment remains cautious yet optimistic if geopolitical risks remain low.

Digital Transformation Initiatives & Investment

Q4 2024 introduced modernization of internal systems " " " ; Q1 and Q2 emphasized investments in enterprise performance management, service system upgrades, and automation to lower structural costs. " " " "

Q3 continues detailed investments with additional consulting expenses and upgrades (e.g., enterprise performance tools and service systems) expected to drive future efficiencies. " " "

A consistently positive theme with incremental investments that signal long‐term strategic benefits.

Supply Chain Optimization & Renegotiation of Agreements

Q4 2024 mentioned stabilization of input costs and reduced supply chain disruptions " " ; Q1 noted stable supply chain reliability " ; Q2 did not address renegotiation.

Q3 introduces an aggressive push for supply chain optimization and active renegotiation with suppliers to maximize terms. "

An emerging emphasis in the current period, shifting from passive monitoring to proactive supplier optimization.

Margin Pressure & Operating Efficiency Improvement

Q4 2024 reported improved gross and operating margins through efficiency and careful cost management " ; Q1 and Q2 discussed managing margin pressures with digital initiatives and cost reduction measures. " " " "

Q3 reaffirms strategies (cost reductions, business transformation, and digital investments) to maintain stable gross margins despite a 12% drop in sales volume. " " "

A consistently addressed topic with ongoing efforts to safeguard profitability via operational improvements.

Tariff Uncertainty & U.S. Manufacturing Advantage

Q2 highlighted uncertainty around tariffs affecting imported components while noting a U.S. manufacturing advantage provided by domestic facilities " " " ; Q1 and Q4 did not mention it.

Q3 emphasizes broader tariffs on Chinese products and reinforces the competitive edge of being a U.S. manufacturer, offering a degree of protection from tariff impacts. "

An emergent focus in Q3 that builds on earlier insights from Q2, accentuating the strategic benefit of U.S. manufacturing.

E-sales Channel Expansion

Q4 2024 outlined expansion via online and partner channels, especially targeting high school markets " ; Q2 discussed growth of e-sales focusing on smaller, standard orders " ; Q1 did not mention this channel.

Q3 highlights further product additions and better back-office integrations within the e-sales channel, notably benefiting the High School Park and Recreation segment. "

A steadily growing initiative, now with enhanced system integration and product focus.

Competitive Pressure from Low-cost Competitors

Q4 2024 acknowledged pressure from low-cost competitors, particularly from China " ; Q1 and Q2 discussed competition from Southeast Asia and Chinese producers. " "

Q3 does not mention competitive pressure from low-cost competitors.

Previously consistent, this topic has dropped from discussion in Q3, suggesting a potential deprioritization amid other strategic concerns.

Revenue and Order Forecast Uncertainty

Q4 2024 alluded to external factors (geopolitical, economic conditions) influencing forecast variability " " " ; Q1 mentioned typical project timing issues; Q2 described lumpy revenues due to large project dynamics. " " "

Q3 details substantial uncertainty driven by seasonal trends, delayed orders, and international softness, though strong quoting activity and long-term growth optimism remain. " " "

A long-standing source of concern with evolving drivers; current sentiment reflects a cautious outlook amid multiple external uncertainties.

Product Innovation with Chip on Board Technology

Only Q4 2024 discussed this innovation as improving ruggedness, contrast, and brightness in their Narrow Pixel Pitch line, though its impact was still uncertain. "

Not mentioned in Q1, Q2, or Q3.

This topic is no longer emphasized in recent calls, indicating it may not be a current focal point.

Recurring Revenue Opportunities in Control Systems and Content Services

Q4 2024 highlighted lifecycle-driven service opportunities with high margins " " ; Q1 and Q2 focused on advancing control systems and adding professional services to boost Monthly Recurring Revenue. " "

Q3 underscores enhancements such as cloud access capabilities and advanced control systems aimed at expanding recurring revenue streams and driving gross margin expansion. "

A stable, bullish theme with continuous strategic emphasis on driving high-margin recurring revenues.

Expansion into Military Markets

Q4 2024 described leveraging narrow pixel pitch displays and partnerships with integrators to target military applications " " ; Q1 mentioned expanding the AV integrator network for military, utility, and transportation control rooms " ; Q2 did not address it.

Q3 reiterates focus on military market expansion, citing new orders from AV integrators and repeat business aimed at control room applications for military and other agencies. "

A consistently pursued growth area with renewed emphasis in Q3, indicating its potential large impact on future revenue.