Daktronics Reports $21.4 Million Net Income and $208.3 Million Revenue for Quarter Ending October 26, 2024

Daktronics, Inc. reported a net income of $21.4 million for the quarter ending October 26, 2024, a significant increase from $2.2 million in the same period last year. The company's revenue for the quarter reached $208.3 million, up 4.5% from $199.4 million in the prior year. This growth was primarily driven by higher sales in the Live Events and Transportation segments, which offset declines in the International segment. Gross profit for the quarter was $55.9 million, representing a gross margin of 26.8%, slightly down from 27.2% a year earlier.

In comparison to the previous fiscal period, Daktronics experienced a decline in operating income, which fell to $15.8 million from $19.4 million year-over-year. This decrease was attributed to a rise in operating expenses, which increased by 15.3% to $40.1 million, largely due to higher general and administrative costs associated with staffing and digital transformation initiatives. The company also reported a notable change in non-operating income, with a gain of $10.3 million from the change in fair value of a convertible note, compared to a loss of $10.7 million in the prior year.

Strategically, Daktronics has focused on enhancing its product offerings and expanding its market presence. The company has invested in capacity and resources to support growth, particularly in the digital display systems market. The firm is also advancing its digital transformation efforts, with plans to spend between $8 million and $10 million on these initiatives in fiscal 2025. Additionally, Daktronics has formed a Business Transformation Office to review its operations and develop strategic initiatives aimed at improving customer outcomes and market penetration.

Operationally, Daktronics reported a product order backlog of $236 million as of October 26, 2024, down from $306.9 million a year earlier. This decrease reflects the fulfillment of orders at a faster pace as supply chain conditions have improved. The company’s cash and cash equivalents increased to $134.4 million, up from $81.3 million at the end of the previous fiscal year, indicating a strong liquidity position. The total employee headcount has also risen, reflecting the company's investment in staffing to support its growth initiatives.

Looking ahead, Daktronics anticipates that its order volume and operating expenses will exceed those of fiscal 2024 as it continues to capitalize on the growing demand for digital display systems. However, the company acknowledges that market conditions and customer commitment timing may impact future sales and profitability. The firm remains committed to leveraging its leadership position in the audiovisual industry to drive long-term growth through technological advancements and strategic investments.