DAKTRONICS INC /SD/ [DAKT] Filings

10-Q 1 dakt-20230128.htm 10-Q dakt-20230128

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 28, 2023

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___.

Commission File Number: 0-23246

Daktronics, Inc.

(Exact Name of Registrant as Specified in its Charter)


South Dakota			46-0306862
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

201 Daktronics Drive	Brookings,	SD	57006
(Address of Principal Executive Offices) (Zip Code)

(605) 692-0200

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, No Par Value	DAKT	Nasdaq Global Select Market
Preferred Stock Purchase Rights	DAKT	Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o	Smaller reporting company	o
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of the registrant’s common stock outstanding as of March 1, 2023 was 45,465,728.

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DAKTRONICS, INC. AND SUBSIDIARIES

FORM 10-Q

For the Quarter Ended January 28, 2023

Table of Contents


		Page
Part I.	Financial Information	1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets as of January 28, 2023 and April 30, 2022	1
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended January 28, 2023 and January 29 , 202 2	2
	Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three and Nine Months Ended January 2 8 , 202 3 and January 29 , 202 2	3
	Condensed Consolidated Statements of Shareholders' Equity for the Three and Nine Months Ended January 2 8 , 202 3 and January 29 , 202 2	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended January 2 8 , 202 3 and January 29 , 202 2	6
	Notes to the Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	31

Part II.	Other Information	32
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	32

Index to Exhibits		33
Signatures		34

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PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data) (unaudited)


	January 28, 2023		April 30, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	10,022	$	17,143
Restricted cash	708		865
Marketable securities	530		4,020
Accounts receivable, net	115,840		101,099
Inventories	164,879		134,392
Contract assets	36,098		41,687
Current maturities of long-term receivables	1,716		2,798
Prepaid expenses and other current assets	8,770		14,963
Income tax receivables	3,258		603
Total current assets	341,821		317,570

Property and equipment, net	73,795		66,765
Long-term receivables, less current maturities	452		1,490
Goodwill	3,293		7,927
Intangibles, net	1,220		1,472
Investment in affiliates and other assets	33,071		32,321
Deferred income taxes	—		13,331
TOTAL ASSETS	$	453,652	$	440,876

LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	70,592	$	76,313
Contract liabilities	97,703		90,393
Accrued expenses	32,711		34,959
Warranty obligations	10,998		11,621
Income taxes payable	382		408
Total current liabilities	212,386		213,694

Long-term warranty obligations	19,216		17,257
Long-term contract liabilities	12,674		10,998
Other long-term obligations	6,397		7,076

Line of Credit	23,638		—
Deferred income taxes	—		287
Total long-term liabilities	61,925		35,618

SHAREHOLDERS' EQUITY:
Preferred Shares, no par value, authorized 50,000 shares; no shares issued and outstanding	—		—
Common Stock, no par value, authorized 115,000,000 shares; 47,373,959 and 46,733,544 shares issued at January 28, 2023 and April 30, 2022, respectively	63,002		61,794
Additional paid-in capital	49,719		48,372
Retained earnings	82,011		96,608
Treasury Stock, at cost, 1,907,445 shares at January 28, 2023 and April 30, 2022, respectively	(10,285)		(10,285)
Accumulated other comprehensive loss	(5,106)		(4,925)
TOTAL SHAREHOLDERS' EQUITY	179,341		191,564
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	453,652	$	440,876

See notes to condensed consolidated financial statements.

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DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)


	Three Months Ended				Nine Months Ended
	January 28, 2023		January 29, 2022		January 28, 2023		January 29, 2022
Net sales	$	184,975	$	139,558	$	544,334	$	448,767
Cost of sales	143,262		117,250		445,123		362,007
Gross profit	41,713		22,308		99,211		86,760

Operating expenses:
Selling	12,908		12,735		41,866		37,012
General and administrative	9,861		8,328		27,989		24,100
Product design and development	7,250		6,925		21,655		21,283
Goodwill impairment	4,576		—		4,576		—
	34,595		27,988		96,086		82,395
Operating income (loss)	7,118		(5,680)		3,125		4,365

Nonoperating (expense) income:
Interest (expense) income, net	(398)		56		(721)		134
Other expense, net	(1,380)		(793)		(2,335)		(2,613)

Income (loss) before income taxes	5,340		(6,417)		69		1,886
Income tax expense (benefit)	1,627		(2,067)		14,666		177
Net income (loss)	$	3,713	$	(4,350)	$	(14,597)	$	1,709

Weighted average shares outstanding:
Basic	45,387		45,223		45,320		45,263
Diluted	45,448		45,223		45,320		45,442

Earnings (loss) per share:
Basic	$	0.08	$	(0.10)	$	(0.32)	$	0.04
Diluted	$	0.08	$	(0.10)	$	(0.32)	$	0.04

See notes to condensed consolidated financial statements.

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DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(in thousands)

(unaudited)


	Three Months Ended				Nine Months Ended
	January 28, 2023		January 29, 2022		January 28, 2023		January 29, 2022

Net income (loss)	$	3,713	$	(4,350)	$	(14,597)	$	1,709

Other comprehensive (loss):
Cumulative translation adjustments	1,976		(714)		(187)		(1,137)
Unrealized gain (loss) on available-for-sale securities, net of tax	6		(10)		6		(10)
Total other comprehensive (loss), net of tax	1,982		(724)		(181)		(1,147)
Comprehensive income (loss)	$	5,695	$	(5,074)	$	(14,778)	$	562

See notes to condensed consolidated financial statements.

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DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(in thousands)

(unaudited)


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total
Balance as of April 30, 2022	$	61,794	$	48,372	$	96,608	$	(10,285)	$	(4,925)	$	191,564
Net loss	—		—		(5,326)		—		—		(5,326)
Cumulative translation adjustments	—		—		—		—		(642)		(642)
Unrealized gain (loss) on available-for-sale securities, net of tax	—		—		—		—		1		1
Share-based compensation	—		511		—		—		—		511
Employee savings plan activity	594		—		—		—		—		594

Balance as of July 30, 2022	62,388		48,883		91,282		(10,285)		(5,566)		186,702
Net loss	—		—		(12,984)		—		—		(12,984)
Cumulative translation adjustments	—		—		—		—		(1,521)		(1,521)
Unrealized (loss) gain on available-for-sale securities, net of tax	—		—		—		—		(1)		(1)
Share-based compensation	—		474		—		—		—		474

Tax payments related to RSU issuances	—		(140)		—		—		—		(140)
Balance as of October 29, 2022	$	62,388	$	49,217	$	78,298	$	(10,285)	$	(7,088)	$	172,530
Net Income	—		—		3,713		—		—		3,713
Cumulative translation adjustments	—		—		—		—		1,976		1,976
Unrealized gain (loss) on available-for-sale securities, net of tax	—		—		—		—		6		6
Share-based compensation	—		502		—		—		—		502

Employee savings plan activity	614		—		—		—		—		614

Balance as of January 28, 2023	$	63,002	$	49,719	$	82,011	$	(10,285)	$	(5,106)	$	179,341

See notes to condensed consolidated financial statements.

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DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(continued)

(in thousands)

(unaudited)


	Common Stock		Additional Paid-In Capital		Retained Earnings		Treasury Stock		Accumulated Other Comprehensive Loss		Total
Balance as of May 1, 2021	$	60,575	$	46,595	$	96,016	$	(7,297)	$	(2,335)	$	193,554
Net income	—		—		3,685		—		—		3,685
Cumulative translation adjustments	—		—		—		—		(373)		(373)
Share-based compensation	—		518		—		—		—		518
Employee savings plan activity	597		—		—		—		—		597
Treasury stock reissued	—		4		—		196		—		200
Balance as of July 31, 2021	61,172		47,117		99,701		(7,101)		(2,708)		198,181
Net income	—		—		2,374		—		—		2,374
Cumulative translation adjustments	—		—		—		—		(50)		(50)
Share-based compensation	—		494		—		—		—		494
Exercise of stock options	3		—		—		—		—		3
Tax payments related to RSU issuances	—		(199)		—		—		—		(199)
Balance as of October 30, 2021	$	61,175	$	47,412	$	102,075	$	(7,101)	$	(2,758)	$	200,803
Net loss	—		—		(4,350)		—		—		(4,350)
Cumulative translation adjustments	—		—		—		—		(714)		(714)
Unrealized gain (loss) on available-for-sale securities, net of tax	—		—		—		—		(10)		(10)
Share-based compensation	—		491		—		—		—		491
Exercise of stock options	5		—		—		—		—		5
Employee savings plan activity	614		—		—		—		—		614
Treasury stock purchase	—		—		—		(3,000)		—		(3,000)
Balance as of January 29, 2022	$	61,794	$	47,903	$	97,725	$	(10,101)	$	(3,482)	$	193,839

See notes to condensed consolidated financial statements.

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DAKTRONICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)


	Nine Months Ended
	January 28, 2023		January 29, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(14,597)	$	1,709
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	12,543		11,544
Gain on sale of property, equipment and other assets	(588)		(737)
Share-based compensation	1,487		1,503
Equity in loss of affiliates	2,596		1,966
Provision (recovery) for doubtful accounts, net	674		(600)
Deferred income taxes, net	13,028		151
Goodwill impairment	4,576		—
Change in operating assets and liabilities	(29,206)		(41,000)
Net cash used in operating activities	(9,487)		(25,464)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(21,809)		(10,024)
Proceeds from sales of property, equipment and other assets	612		838
Purchases of marketable securities	—		(4,045)
Proceeds from sales or maturities of marketable securities	3,490		—
Purchases of equity and loans to equity investees	(3,240)		(6,695)
Net cash used in investing activities	(20,947)		(19,926)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on notes payable	283,115		—
Payments on notes payable	(259,477)		—
Principal payments on long-term obligations	—		(200)
Payments for common shares repurchased	—		(3,000)
Proceed from exercise of stock options	—		8
Tax payments related to RSU issuances	(140)		(199)
Net cash provided by (used in) financing activities	23,498		(3,391)

EFFECT OF EXCHANGE RATE CHANGES ON CASH	(342)		98
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(7,278)		(48,683)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH:
Beginning of period	18,008		80,402
End of period	$	10,730	$	31,719

Supplemental disclosures of cash flow information:
Cash paid for:
Interest	$	760	$	—
Income taxes, net of refunds	4,456		1,601

Supplemental schedule of non-cash investing and financing activities:
Demonstration equipment transferred to inventory	$	—	$	53
Purchases of property and equipment included in accounts payable	1,538		1,795
Contributions of common stock under the ESPP	1,207		1,211

See notes to condensed consolidated financial statements.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(dollar amounts in thousands, except per share data)

(unaudited)

Note 1. Basis of Presentation

Daktronics, Inc. and its subsidiaries (the “Company”, “Daktronics”, “we”, “our”, or “us”) are an industry leader in designing and manufacturing electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial and transportation applications.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions affecting the reported amounts therein. Due to the inherent uncertainty involved in making estimates, actual results in future periods may differ from those estimates.

Certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. The balance sheet at April 30, 2022 has been derived from the audited financial statements at that date, but it does not include all the information and disclosures required by GAAP for complete financial statements. These financial statements should be read in conjunction with our financial statements and notes thereto for the fiscal year ended April 30, 2022, which are contained in our Annual Report on Form 10-K previously filed with the Securities and Exchange Commission ("SEC"). The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year.

Daktronics, Inc. operates on a 52- or 53-week fiscal year, with our fiscal year ending on the Saturday closest to April 30 of each year. When April 30 falls on a Wednesday, the fiscal year ends on the preceding Saturday. Within each fiscal year, each quarter is comprised of 13-week periods following the beginning of each fiscal year. In each 53-week fiscal year, an additional week is added to the first quarter, and each of the last three quarters is comprised of a 13-week period. The nine months ended January 28, 2023 and January 29, 2022 contained operating results for 39 weeks.

Cash and cash equivalents and restricted cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the totals of the same amounts shown in the condensed consolidated statements of cash flows. Restricted cash consists of cash and cash equivalents held in bank deposit accounts to secure issuances of foreign bank guarantees.


	January 28, 2023		January 29, 2022
Cash and cash equivalents	$	10,022	$	30,883
Restricted cash	708		836
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows	$	10,730	$	31,719

We have foreign currency cash accounts to operate our global business. These accounts are impacted by changes in foreign currency rates. Of our $10,022 in cash and cash equivalents balances at January 28, 2023, $3,257 were denominated in U.S. dollars, of which $498 were held by our foreign subsidiaries. As of January 28, 2023, we had an additional $6,765 in cash balances denominated in foreign currencies, of which $5,421 were maintained in accounts of our foreign subsidiaries.

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Liquidity and Going Concern

The accompanying condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

During much of the past calendar year, we have experienced negative impacts in our business driven by global economic conditions and supply chain disruptions. These conditions have caused volatility in our cash flow, pricing, order volumes, lead-times, competitiveness, revenue cycles, and production costs. To adapt, we used cash and line of credit borrowings to increase our investment in inventory to add stability to our production processes to fulfill backlog and used cash to invest in property and equipment to expand our capacity and add automation. To improve operations and cash flows, we have increased prices of our goods and services. In addition, we instituted a liquidity enhancement plan program focusing our teams on improving our cash flow and enhancing our liquidity. Our ability to fund inventory levels, operations, and capital expenditures in the future will be dependent on our ability to generate cash flow from operations in these conditions, to maintain or improve margins, and to use funds from our credit facility. $35,000 of our credit facility expires in April 2025 and $10,000 expires in May 2023, and it requires us to comply with certain covenants.

Although supply chain disruptions have started to ease and we expect our inventory levels and working capital levels to decline, we cannot be certain we will not experience future disruptions or need additional liquidity to fund inventory levels, operations, and capital expenditures. Therefore, we plan to obtain additional liquidity to meet our obligations as they come due in the 12 months following the date of this Report, and we cannot be assured that such liquidity will be available or the form of such liquidity, such as equity raises or debt financing. These conditions raise substantial doubt about our ability to continue as a going concern.

In response to these conditions, the Board of Directors formed an independent Strategy and Financing Review Committee in December 2022, to address the Company's near-term credit needs and to examine alternatives for strengthening the Company's longer-term financial structure and liquidity profile. The Committee retained financial and legal advisors to explore additional ways to improve our long-term liquidity profile. We are pursuing additional liquidity through various means from potential financing sources, including but not limited to obtaining financing secured by a mortgage on our facilities, a sales-leaseback transaction, leasing property and equipment, longer-term asset-based lending structures, and junior capital. We have continued focusing on reducing working capital and improving profitability through activities in our liquidity enhancement plan. Because these plans are not finalized and are subject to market conditions and restrictions from our existing financing agreements that are not within our control, they cannot be deemed probable. As a result, we have concluded that our plans do not alleviate substantial doubt about our ability to continue as a going concern.

Refer to "Note 7. Financing Agreements" for additional considerations related to our financing agreements.

The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty.

Variable Interest Entities

We consolidate entities in which we have a controlling financial interest by first considering if an entity meets the definition of a variable interest entity ("VIE") for which we are deemed to be the primary beneficiary, or if we have the power to control an entity through a majority of voting interest or through other arrangements.

Variable Interest Entities: A VIE is an entity (i) that lacks sufficient equity to finance its activities without additional subordinated financial support from other parties; (ii) whose equity holders lack the characteristics of a controlling financial interest; and/or (iii) that is established with non-substantive voting rights. A VIE is consolidated by its primary beneficiary, which is defined as the party who has a controlling financial interest in the VIE through (a) the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance, and (b) the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. This assessment may involve subjectivity in the determination of which activities most significantly affect the VIE’s performance and making estimates about current and future fair value of the assets held by the VIE and financial performance of the VIE. In assessing the Company's interests in the VIE, we also consider interests held by its related parties, including de facto agents. Additionally, we assess whether it is a member of a related party group that collectively meets the power and benefits criteria and, if so, whether we are most closely associated with the VIE. In performing the related party analysis, we consider both qualitative and

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quantitative factors including, but not limited to: the characteristics and size of its investment relative to the related party; our and the related party's ability to control or significantly influence key decisions of the VIE, including consideration of involvement by de facto agents; the obligation or likelihood for us or the related party to fund operating losses of the VIE; and the similarity and significance of the VIE’s business activities to those of us and the related party. The determination of whether an entity is a VIE, and whether we are the primary beneficiary, may involve significant judgment, and depends upon facts and circumstances specific to an entity at the time of the assessment.

At the end of each reporting period, we reassess whether changes in facts and circumstances cause a change in the status of an entity as a VIE or voting interest entity, and/or a change in our consolidation assessment. Changes in consolidation status are applied prospectively. An entity may be consolidated as a result of this reassessment, in which case, the assets, liabilities and noncontrolling interest in the entity are recorded at fair value upon initial consolidation. Any existing equity interest held by us in the entity prior to us obtaining control will be remeasured at fair value, which may result in a gain or loss recognized upon initial consolidation. However, if the consolidation represents an asset acquisition of a voting interest entity, our existing interest in the acquired assets, if any, is not remeasured to fair value but continues to be carried at historical cost. We may also deconsolidate a subsidiary as a result of this reassessment, which may result in a gain or loss recognized upon deconsolidation depending on the carrying values of deconsolidated assets and liabilities compared to the fair value of any interests retained.

See "Note 2. Investment in Affiliates" of the Notes to our Condensed Consolidated Financial Statements included in this Report.

Recent Accounting Pronouncements

There have been no material changes to our significant accounting policies and estimates as described in our Annual Report on Form 10-K for the fiscal year ended April 30, 2022.

Accounting Standards Adopted

There were no standards adopted since our last Quarterly Report on Form 10-Q.

Accounting Standards Not Yet Adopted

There are no significant new Accounting Standards Updates issued that the Company has not yet adopted as of January 28, 2023.

Note 2. Investments in Affiliates

We evaluated the nature of our investment in affiliates of XdisplayTM company, which is developing micro-LED mass transfer expertise and technologies, and Miortech (dba Etulipa), which is developing low power outdoor electrowetting technology. We determined that Miortech is a VIE, and based on management's analysis, we determined that Daktronics is not the primary beneficiary; therefore, the investment in Miortech is accounted for under the equity method.

The aggregate amount of our investments accounted for under the equity method was $17,145 and $16,916 as of January 28, 2023 and April 30, 2022, respectively. Our proportional share of the respective affiliates' earnings or losses is included in the "Other expense, net" line item in our condensed consolidated statements of operations. For the three and nine months ended January 28, 2023, our share of the losses of our affiliates was $895 and $2,596 as compared to $401 and $1,966 for the three and nine months ended January 29, 2022.

We purchased services for research and development activities from our equity method investees. The total of these related party transactions for the nine months ended January 28, 2023 and January 29, 2022 was $672 and $1,520, respectively, which is included in the "Product design and development" line item in our condensed consolidated statements of operations, and for the nine months ended January 28, 2023, $52 remains unpaid and is included in the "Accounts payable" line item in our condensed consolidated balance sheets.

During the nine months ended January 28, 2023, we invested $2,250 evidenced by convertible notes and $990 evidenced by promissory notes ("Notes") in our affiliates, which is included in the "Investment in affiliates and other assets" line item in our condensed consolidated balance sheets. During the nine months ended January 28, 2023, we converted $2,823 evidenced by the Notes to stock ownership. After this conversion of Notes to stock ownership, our ownership increased to

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54.5 percent in Miortech. Our ownership in XdisplayTM company is 16.4 percent as of January 28, 2023. The total amount of Notes included in the "Investments in affiliates and other assets" line item in our condensed consolidated balance sheets as of January 28, 2023 was $7,693.

Note 3. Earnings Per Share ("EPS")

The following is a reconciliation of the net income (loss) and common share amounts used in the calculation of basic and diluted EPS for the three and nine months ended January 28, 2023 and January 29, 2022:


	Net income (loss)		Shares	Per share (loss) income
For the three months ended January 28, 2023
Basic earnings per share	$	3,713	45,387	$	0.08
Dilution associated with stock compensation plans	—		61	—
Diluted earnings per share	$	3,713	45,448	$	0.08
For the three months ended January 29, 2022
Basic and diluted (loss) earnings per share	$	(4,350)	45,223	$	(0.10)

Diluted (loss) earnings per share	$	(4,350)	45,223	$	(0.10)
For the nine months ended January 28, 2023
Basic and diluted (loss) earnings per share	$	(14,597)	45,320	$	(0.32)

Diluted (loss) earnings per share	$	(14,597)	45,320	$	(0.32)
For the nine months ended January 29, 2022
Basic earnings per share	$	1,709	45,263	$	0.04
Dilution associated with stock compensation plans	—		179	—
Diluted earnings per share	$	1,709	45,442	$	0.04

Options outstanding to purchase 2,102 shares of common stock with a weighted average exercise price of $7.13 for the three months ended January 28, 2023 and 2,216 shares of common stock with a weighted average exercise price of $8.17 for the three months ended January 29, 2022 were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.

Options outstanding to purchase 2,089 shares of common stock with a weighted average exercise price of $7.59 for the nine months ended January 28, 2023 and 1,857 shares of common stock with a weighted average exercise price of $9.26 for the nine months ended January 29, 2022 were not included in the computation of diluted earnings per share because the effects would be anti-dilutive.

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Note 4. Revenue Recognition

Disaggregation of revenue

The following table presents our disaggregation of revenue by segments:


	Three Months Ended January 28, 2023
	Commercial		Live Events		High School Park and Recreation		Transportation		International		Total
Type of performance obligation
Unique configuration	$	9,929	$	53,437	$	3,380	$	11,446	$	8,138	$	86,330
Limited configuration	35,864		7,858		23,865		5,328		11,040		83,955
Service and other	4,174		6,453		1,067		804		2,192		14,690
	$	49,967	$	67,748	$	28,312	$	17,578	$	21,370	$	184,975
Timing of revenue recognition
Goods/services transferred at a point in time	$	36,746	$	10,125	$	22,716	$	5,571	$	11,861	$	87,019
Goods/services transferred over time	13,221		57,623		5,596		12,007		9,509		97,956
	$	49,967	$	67,748	$	28,312	$	17,578	$	21,370	$	184,975


	Nine Months Ended January 28, 2023
	Commercial		Live Events		High School Park and Recreation		Transportation		International		Total
Type of performance obligation
Unique configuration	$	20,198	$	148,467	$	17,828	$	35,330	$	20,762	$	242,585
Limited configuration	94,408		26,013		85,123		15,969		36,826		258,339
Service and other	12,526		18,890		3,176		2,498		6,320		43,410
	$	127,132	$	193,370	$	106,127	$	53,797	$	63,908	$	544,334
Timing of revenue recognition
Goods/services transferred at a point in time	$	97,381	$	31,029	$	80,935	$	16,702	$	38,756	$	264,803
Goods/services transferred over time	29,751		162,341		25,192		37,095		25,152		279,531
	$	127,132	$	193,370	$	106,127	$	53,797	$	63,908	$	544,334

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	Three Months Ended January 29, 2022
	Commercial		Live Events		High School Park and Recreation		Transportation		International		Total
Type of performance obligation
Unique configuration	$	4,112	$	25,950	$	4,167	$	9,803	$	8,606	$	52,638
Limited configuration	32,081		6,843		18,717		5,269		10,453		73,363
Service and other	3,902		6,264		837		751		1,803		13,557
	$	40,095	$	39,057	$	23,721	$	15,823	$	20,862	$	139,558
Timing of revenue recognition
Goods/services transferred at a point in time	$	32,829	$	8,540	$	17,351	$	5,576	$	10,967	$	75,263
Goods/services transferred over time	7,266		30,517		6,370		10,247		9,895		64,295
	$	40,095	$	39,057	$	23,721	$	15,823	$	20,862	$	139,558


	Nine Months Ended January 29, 2022
	Commercial		Live Events		High School Park and Recreation		Transportation		International		Total
Type of performance obligation
Unique configuration	$	12,258	$	110,986	$	15,241	$	25,320	$	26,051	$	189,856
Limited configuration	83,965		21,510		66,590		15,173		32,464		219,702
Service and other	11,116		18,344		2,531		1,941		5,277		39,209
	$	107,339	$	150,840	$	84,362	$	42,434	$	63,792	$	448,767
Timing of revenue recognition
Goods/services transferred at a point in time	$	85,570	$