Daktronics Profitable in 4Q 2017

Digital billboard manufacturer Daktronics earned a profit of $0.9 million on revenue of $144 million in the fourth quarter of  fiscal 2017 (3 months ended April 29, 2017) versus a net loss of $2.9 million on revenue of $138 million during the fourth quarter of fiscal 2016  Here are highlights from the earnings release and conference call transcript.  The market treated the release as good news.  Daktronics was up 7% for the day.

  • Revenue and Net Income totaled $586 million and $10 million, respectively, for fiscal 2017 (12 months ended April 29, 2017).
  • Commercial Business Unit orders, which include digital billboards, increased 12% during fiscal 2017.  CEO Reece Kurtenbach said Daktronics retained digital billboard market share in with national operators and expanded market share with independent billboard operators.
  • The company’s warranty expense declined from 4.1% of sales during fiscal 2016 to 2.5% of sales during fiscal 2017.   Lower warranty costs helped boost profits during fiscal 2017.
  • Kurtenbach was bullish on the prospects for the firm’s commercial business: “In our commercial business unit we see opportunities for growth because of the number of unique digital opportunities in the spectacular segment. New customers and replacement cycles for national account based business, expansion of solutions for indoor applications and improved volumes in the billboard segment.

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