Daktronics, Inc. reported its financial results for the three months ended July 27, 2024, revealing a decline in revenue and profitability compared to the same period in the previous fiscal year. Net sales for the quarter totaled $226.1 million, a decrease of 2.8% from $232.5 million in the prior year. The company's gross profit also fell significantly, down 16.1% to $59.7 million, resulting in a gross profit margin of 26.4%, compared to 30.6% in the previous year. Operating income decreased by 43.5% to $22.7 million, while the company reported a net loss of $4.9 million, contrasting with a net income of $19.2 million for the same period in 2023. Basic and diluted earnings per share were both $(0.11), down from $0.42 in the prior year.
The decline in revenue and profitability was attributed to several factors, including a decrease in backlog and variability in order bookings across different segments. The Live Events segment saw increased sales due to fulfilling backlog orders, particularly in sports-related facilities, while the Transportation segment benefited from ongoing projects. However, the International segment experienced a downturn due to geopolitical and macroeconomic challenges.
On the balance sheet, Daktronics reported total current assets of $427.4 million, up from $401.9 million as of April 27, 2024. Cash and cash equivalents increased to $96.8 million, compared to $81.3 million in the previous quarter. Total liabilities rose to $315.7 million, with long-term debt increasing from $53.2 million to $74.5 million. Shareholders' equity slightly decreased to $238.2 million from $238.8 million.
The company’s product order backlog as of July 27, 2024, was $267.2 million, down from $323.7 million a year earlier, reflecting a faster pace of order fulfillment due to improved supply chain conditions. Daktronics anticipates that order volume and operating expenses will exceed those of fiscal 2024, with a focus on the timing and profitability of new orders.
Strategically, Daktronics is investing between $8 million and $10 million in digital and business transformation initiatives, which are expected to impact profitability in fiscal 2025. The company continues to focus on technological advancements in display technologies, including micro-LED and chip-on-board technologies, to enhance its market position in the growing demand for improved audience experiences across various sectors.
About DAKTRONICS INC /SD/
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