BROOKINGS, S.D., Nov. 08, 2024 (GLOBE NEWSWIRE) -- Daktronics, Inc. (“Daktronics” or the “Company”) (NASDAQ-DAKT), the leading U.S.-based designer and manufacturer of best-in-class dynamic video communication displays and control systems for customers worldwide, today announced that, after careful deliberation, the Board of Directors (the “Board”) has determined that it is in the best interests of the Company and its common shareholders to exercise the Company’s right to convert an initial $7.0 million in f ...

Business Transformation and Strategic Initiatives - The company has announced the next phase of its business transformation plan aimed at accelerating profitable growth, increasing profit margins, and driving returns on invested capital in the mid-to-high teens, well above the company's cost of capital [1] - A Business Transformation Office (BTO) has been formed, including the CEO, leadership team, and senior executives from a global consulting firm, to drive strategic initiatives [2] - The Board has formed an ad hoc transformation committee, chaired by Howard Atkins, to oversee the execution of these initiatives [2] - The BTO is developing strategic initiatives to improve customer outcomes, deepen market penetration, achieve above-market growth, and enhance delivery and service efficiency [3] - The company aims to grow revenue faster than its addressable market, expand operating margins, and generate returns on capital consistently above its cost of capital [3] Leadership and Organizational Changes - Sheila Anderson, the current CFO since 2012, has been appointed to the newly created role of Chief Data and Analytics Officer to lead the company's digital transformation [4] - The Board has initiated a search for a new CFO with experience in business transformations to support the company's ROIC goals [3][4] - Sheila Anderson will continue as CFO until her successor is identified [4] Financial Performance and Outlook - During fiscal 2023 and 2024, the company significantly strengthened its balance sheet, reduced its backlog to normal levels, delivered record revenue and profit, and ended fiscal 2024 with liquidity of over $135 million [2] - The company expects fiscal 2025 Q2 revenue, gross profit, and operating income to be in line with analyst consensus estimates of $200 million, $49.7 million, and $11.6 million, respectively [7] - The company plans to release its fiscal Q2 earnings and host a conference call in early December to discuss results and management's expectations for the full fiscal year [5] Share Repurchase and Market Position - The company has approximately $29 million remaining under its existing share repurchase authorization and is evaluating opportunities to use and potentially augment this authorization [4] - Daktronics is the world's largest supplier of large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems, with strong leadership positions in these markets [5] Digital Transformation and Market Expansion - The company's digital transformation is a key enabler of its strategic initiatives, aiming to provide better customer outcomes, deeper market penetration, and more efficient delivery and service [3] - The company operates in four domestic business units (Live Events, Commercial, High School Park and Recreation, and Transportation) and one International business unit, serving customers globally [5]

While the market sighed a collective breath of relief after the Fed cut 50-bps, this week has been anything but bullish for the broad market. I'm looking at 5 consecutive red daily candles on the Russell 2000. Long-term investors out there should not despair. Rather, there are going to be a ton of stocks which were overvalued which are going to come on back down to Earth. Rather than blindly buying all the dips out there thought, you should focus your attention on stocks with strong earnings trends, and try ...

Ozgur Donmaz Thesis On July 18, 2023, I started coverage of Daktronics (NASDAQ:DAKT) and explained how the company performed after posting buoyant Q4 2023 earnings results, despite the ongoing supply chain issues and inflationary pressures. Sales posted a record high, thanks to robust demand and smart pricing strategies; meanwhile, growth in gross profit margins was underpinned by the company's efforts to keep costs down despite higher expenses and growing economic risks and I pointed out concerns over long ...

xjben/iStock via Getty Images Investment thesis In my previous article covering the company, I rated Daktronics (NASDAQ:DAKT) shares a Buy given its leading position in the US market and attractive valuation at a P/E multiple of 9.2. I outlined my expectations for solid mid-single growth with rising margins in the medium term. The company's Q1 fiscal 2025 results indicated that growth fell slightly short of my expectations, although margins remained strong. In addition to the weaker growth, I also attribute ...

BROOKINGS, S.D., Sept. 11, 2024 (GLOBE NEWSWIRE) -- Daktronics Inc. (Nasdaq: DAKT), a leading global designer and manufacturer of best-in-class dynamic video communication displays and control systems for customers worldwide, announced that Sheila Anderson, Chief Financial Officer, will present and host oneon-one meetings with investors at the Sidoti September Virtual Investor Conference, taking place on September 18-19, 2024. The presentation will begin at 10:00am ET on September 18, 2024 and can be access ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 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 July 27, 2024 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHAN ...

Exhibit 99.1 Daktronics, Inc. Announces 2025 Fiscal First Quarter Results Solid Sequential GAAP Revenue Growth, Margin Expansion, and Cash Flow Generation Earned $22.7 Million of Operating Income and Adjusted Net Income of $16.6 Million (1) BROOKINGS, S.D., September 4, 2024 – Daktronics, Inc. (NASDAQ-DAKT), the leading U.S.-based designer and manufacturer of best-in-class dynamic video communication displays and control systems for customers worldwide, today reported results for its fiscal 2025 first quart ...

Financial Data and Key Metrics Changes - The company reported a revenue of $226 million for Q1 2025, representing a 4.7% growth from the previous quarter but a decline from the record quarter of the previous year [14][15] - Gross margin increased sequentially to 26.4%, reflecting strong financial returns driven by volume mix and some price improvement [15] - Operating cash flow was reported at $19.5 million, showcasing a strong performance compared to the previous year [5][16] Business Line Data and Key Metrics Changes - In the Live Events segment, revenue was recognized from several large college projects, indicating strong demand in this area [6][7] - The commercial business saw an increase in orders, particularly from independent billboard operators, reflecting a rebound in demand [8][9] - The High Schools segment experienced order successes as the market shifts towards full video usage, with the introduction of a new higher-margin product [11] Market Data and Key Metrics Changes - International sales increased by 20% sequentially, driven by bookings for digital billboard rollouts, although overall international performance remains slow due to economic uncertainties [10] - The transportation segment saw growth in orders, particularly for intelligent transportation systems and airport projects [9] Company Strategy and Development Direction - The company is focused on digital transformation, improving cost structures, and expanding market share, with specific milestones planned for fiscal 2025 and 2026 [18][20] - Investments are being made in foundational enterprise performance management tools to enhance operational efficiencies and customer experiences [18][19] - The company aims to capture a greater share of its serviceable available market (SAM) through advancements in control system capabilities and professional services [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operating environment, citing stable supply chain reliability and good momentum entering Q2 [5][6] - The outlook for Live Events demand remains strong, with expectations for continued growth as venues enhance facilities [7] - Management acknowledged the competitive environment but emphasized the company's strong value proposition and service capabilities [28] Other Important Information - The backlog at the end of the quarter was $267 million, reflecting year-over-year order growth and a return to more normal seasonal trends [6][14] - The company has a strong balance sheet with cash, restricted cash, and marketable securities totaling $97.2 million [16] Q&A Session Summary Question: Can you talk about the backlog and when it might normalize? - Management expects the backlog to reflect more seasonal cycles, with Q1 and Q2 being higher sales months and a trend down in summer months [24][25] Question: Was any revenue in Q1 pulled in from Q2? - Management indicated that there was no unusual movement of revenue from Q2 into Q1 [26] Question: Is there room to expand the targeted operating margin? - Management believes there is room for both top-line and operating margin growth [27] Question: How is the competitive environment affecting market share? - Management noted that while data on market share is hard to come by, they focus on customers who value their offerings rather than those primarily driven by price [29][30] Question: What is the company's credit position? - Management confirmed a strong balance sheet with high levels of cash and no reliance on credit lines [31][32]

| --- | --- | --- | --- | --- | --- | |-------|-------|-------|----------------------------------------------------------|-------|-------| | | | | | | | | | | | DYNAMIC MESSAGE SIGNS | | | | | | | | | | | | | | Fiscal First Quarter 2025 Results Call September 4, 2024 | | DAKT | | | | | NASDAQ: | | | | | | | CONTROL SYSTEMS | | | | | | | | | | SAFE HARBOR STATEMENT In addition to statements of historical fact, this presentation contains forward-looking statements within the meaning of the Private Securities ...