Good day, ladies and gentlemen, and welcome to the Daktronics Fiscal Year 2022 Second Quarter Earnings Results Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded today, Wednesday, December 1, 2021, and is available on the Company's website at www.daktronics.com. [Operator Instructions] I would now like to turn the conference over to Ms. Sheila Anderson, Chief Financial Officer for Daktronics, for some introductory remarks. Please go ahead, Sheila.

Thank you, Latif. Good morning, everyone. Thank you for participating in our second quarter earnings conference call. I would like to review our disclosure, cautioning investors and participants that in addition to statements of historical facts, we will be discussing forward-looking statements reflecting our expectations and plans about our future financial performance and future business opportunities. All forward-looking statements involve risks and uncertainties which may be out of our control and may cause actual results to differ materially. Such risks include changes in economic conditions, changes in the competitive markets and landscape, including impacts of global trade discussions and policies, the impacts of governmental laws, regulations, and orders, including those resulting from pandemics, disruptions to our business caused by geopolitical events, military actions, work stoppages, natural disasters, or international health emergencies, such as the COVID-19 pandemic, management of growth, timing and magnitude of future contracts, fluctuations of margins, availability of raw materials, components, and shipping services, the introduction of new products and technology, and other important factors as noted and detailed in our 10-K and 10-Q SEC filings. With that, let me highlight some of our financials. During the first half of fiscal 2022, customer activity began increasing in varying degrees across our markets as effective vaccinations became available and utilized, allowing people to move more freely and safely. COVID-19 restrictions have reduced which improved economic outlooks and provided our customers with more confidence. Customers placed a record $163.7 million of orders for the second quarter of fiscal 2022 and for the first 6 months of the year at $345.5 million. These levels equated to increases of 20.7% for the second quarter and 34% increase on a year-to-date basis. Each business unit order volume grew through the first half of fiscal 2022. Commercial business unit orders increased due to the…

Thank you, Sheila. Good morning to everyone. As activities in our markets increase, we have and are increasing our capacity to maximize production and service capacity while prudently controlling costs through this time of growth. We will be strategically making investments in capital assets for our factories, for product developments to meet the needs of our customers, and for technology developments to be a market leader on into the future. We will also continue to invest in improving the strength and expertise of our internal operations and business systems to enhance our customer and employee experiences. During the first half of the year, we have experienced headwinds in the availability of materials, labor, and transport, creating inflationary pressures in our cost structure. These headwinds in supply chain disruptions began to emerge as a result of the pandemic and the changes in global demand. Specifically, we are impacted by the global shortage of semiconductors and related electronic components, other materials needed for production, shipping container shortages, and Freight availability. We expect these factors will cause volatility in our revenue cycles and production costs through the remaining fiscal year and into our fiscal 2023. We continue to focus on the supply chain to reduce our lead time in the short-term and improve our ability to deliver over the long-term. As we look out to the longer-term, we believe the audio-visual industry fundamentals remain strong and are poised for growth. Our strategies to provide long-term profitable value propositions for all of our stakeholders include offering comprehensive products and services that match our customer needs and expectations, expanding to new markets, often unlocked by the development of advanced technologies, such as narrow pixel pitch, micro LED, and control systems, growing and fostering our direct and indirect sales channels globally, providing world-leading solutions and services…

This concludes today's conference call. Thank you for participating. You may now disconnect.