Daktronics Inc Stock Price, News & Analysis

Daktronics has completed the installation of new end wall video displays and over 3,000 linear feet of ribbon displays at the Crypto.com Arena in Los Angeles. This project enhances the fan experience during games for the Los Angeles Lakers, LA Kings, Los Angeles Clippers, and Los Angeles Sparks. The new displays feature 5.9-millimeter pixel spacing and will provide live video, statistics, and graphics. This marks a significant upgrade as Daktronics continues to lead in LED solutions for major venues.

The Board of Directors of Daktronics announced the retirement of James Morgan effective September 7, 2022. Morgan has been with the company since 1969, serving as a Director since 1984 and contributing as Chair of the Nominating and Corporate Governance Committee since June 2020. His leadership has significantly influenced the company, including his past role as CEO from 2001 until 2013. Lance Bultena has been appointed as the new chairperson of the committee. Chairman Reece A. Kurtenbach expressed gratitude for Morgan's contributions and noted that his expertise will be missed.

Daktronics reported Q1 FY2023 results with net sales at $171.9 million, marking an 18.8% increase year-over-year. Despite strong demand, the company faced an operating loss of $5.5 million due to inflation and supply chain issues. Orders dropped 6.3% compared to last year but remained robust at $170.2 million. The product backlog stood high at $469.1 million. Operating expenses rose to $31.3 million, reflecting a 18% increase. Free cash flow worsened to negative $33.1 million due to strategic investments and high accounts receivable.

Daktronics, Inc. (NASDAQ: DAKT) announced a Cooperation Agreement with Prairieland Holdco, LLC, involving Board of Directors changes as part of ongoing refreshment efforts. Andrew Siegel will be nominated to the Board for election at the 2022 Annual Meeting, expanding the Board from seven to eight directors. Following the agreement, over half of the Board will comprise new members within two years, emphasizing a focus on long-term growth and shareholder engagement. Siegel aims to leverage Daktronics’ potential, which he believes is currently undervalued.

Daktronics has achieved a historic milestone by surpassing $800 million in orders for fiscal year 2022, driven by significant projects including the LA Clippers' Intuit Dome Halo Board. This innovative display will enhance the fan experience at the Clippers' new arena, set to open in 2024. Daktronics is expanding manufacturing capabilities, doubling production of SMD LED products and adding 90,000 square feet to its Brookings factory. The Halo Board will use cutting-edge technology, showcasing 38,375 square feet of digital display with over 233 million LEDs.

Daktronics reported fiscal year 2022 results with net sales of $611.0 million, driven by record orders of $846.1 million. Operating income stood at $4.0 million despite inflationary pressures on materials and logistics. The product order backlog reached $472 million, indicating strong demand but slower conversion to sales due to supply chain challenges. Gross profit margins declined to 19.1% from 25.0% year-over-year. The company anticipates ongoing supply chain volatility in FY2023, planning strategic investments in production and pricing adjustments to maintain growth.

Daktronics Inc (Nasdaq – DAKT) will release its fiscal year and fourth quarter financial results on June 8, 2022, before the market opens. A conference call will be held at 10:00 AM CT, featuring CEO Reece A. Kurtenbach and CFO Sheila M. Anderson, who will provide forward-looking statements and key information. Stakeholders can join the call via dial-in or webcast.

Daktronics is recognized as the largest supplier of large-screen video displays and related systems worldwide, operating in multiple business segments.

Daktronics has partnered with the Toronto Blue Jays to enhance the Rogers Centre ahead of the 2022 season by installing 10 LED displays spanning over 14,000 square feet with more than 11 million LEDs. The centerpiece is a HDR-capable video display measuring approximately 49 feet high by 110.5 feet wide, offering a versatile viewing experience. The improved setup will provide fans with live video, statistics, and sponsorship content. Daktronics, a leader in audiovisual systems since 1968, now operates in nearly 60% of professional sports facilities across the U.S. and Canada.

Daktronics reported fiscal Q3 2022 net sales of $139.6 million, aided by record orders totaling $214.8 million. Despite this, the company faced an operating loss of $5.7 million due to increased material costs, labor expenses, and warranty charges. The gross profit margin fell to 16.0%, down from 25.4% a year earlier. Cash and securities dropped to $35.8 million from $81.0 million in Q3 2021. The backlog reached $353 million, reflecting supply chain challenges.

The firm anticipates ongoing supply chain volatility, but remains optimistic about long-term growth in the audiovisual industry.