Daktronics, Inc. Announces 2025 Fiscal Third Quarter Results & Leadership Transition

Leadership Transition - Reece Kurtenbach is stepping down as Chairman, President, and CEO of Daktronics, effective March 5, 2025, and will transition to an advisory role [4] - Brad Wiemann has been appointed as Interim CEO, while Howard Atkins takes on the role of Acting CFO and Chief Transformation Officer [4][7] - Andrew Siegel, the current Lead Independent Director, will become the Chairman of the Board [8] Financial Performance - For fiscal Q3 2025, Daktronics reported net sales of $149.5 million, a decrease of 12.2$3.6 million, contrasting with an operating income of $8.0 million in the same quarter last year [5][18] - Net loss for the quarter was$17.2 million, with adjusted net income of $0.5 million after excluding certain expenses [5][40] Orders and Backlog - Product and service orders totaled$186.9 million for the quarter, a decrease of 2.7% from the third quarter of fiscal 2024 [5][14] - The product order backlog was $273.2 million as of January 25, 2025, up from$236.0 million at the end of the previous quarter [5] Business Transformation and Outlook - The company is undergoing a business transformation aimed at achieving revenue growth faster than the addressable market, which is estimated to be in the 7-10% range [10] - The transformation plan includes initiatives to drive profitable growth, reduce product and structural costs, and enhance operational efficiencies [11][12] - Recent U.S. government actions, including tariff policies, may impact near-term business conditions and project bookings [3] Cash Flow and Financial Position - Cash flows from operations for the third quarter were $12.0 million, with a total of$74.8 million generated in the first nine months of fiscal 2025 [5][23] - As of January 25, 2025, the company had cash, restricted cash, and marketable securities totaling $132.2 million, with total debt of$42.5 million [22]