BROOKINGS, S.D., June 08, 2022 (GLOBE NEWSWIRE) — Daktronics, Inc. today reported fiscal year and fourth quarter 2022 results.

Fiscal 2022 financial highlights:

• Fiscal net sales of $611.0 million as a result of record orders and eased pandemic related site restrictions
• Operating income of $4.0 million realized through headwinds of inflation in materials, personnel and freight related expenses
• Product order backlog of $472 million⁽¹⁾, driven by record order volume of $846.1 million⁽¹⁾ and softer conversion to sales due to supply chain challenges

Some reflections rom Reese Kurtenbach,  Daktronics President and CEO.

Last year at this time, lockdowns were ending and people began gathering, renewing our customers’ confidence in their business outlook and allowing our order volume to rebound from pandemic year lows. Daktronics products and solutions are chosen for our industry-leading value as highlighted by our all-time order record of $846 million for the year. Part of this record was attributed to being selected as the dynamic video system provider for the LA Clippers’ new arena Intuit Dome and the Real Madrid Soccer Club’s Santiago Bernabéu Stadium. Customers also placed orders sooner than historical patterns to secure our manufacturing capacity for their future deliveries.

While orders have recovered from the pandemic the supply chain has not, which is a key reason our product backlog grew to $472 million. Our production levels have frequently been disrupted by varying supply chain challenges. Semiconductor parts, including integrated circuits and other components needed for production, have had sporadic availability because of global demand growth, allocations, slowed transportation, or continued Covid restrictions in certain geographies. These factors injected a level of disruption in our organization over the past year. To combat these headwinds and support timely deliveries, we have increased our investment in inventories, adjusted delivery expectations, redesigned product lines for other available material, and increased investment in automated manufacturing machinery. We responded to inflationary pressures by increasing pricing in all areas starting in the third quarter of fiscal 2022. We continue to monitor our supply chains and our marketplaces and adapt our pricing methodologies accordingly.”

Outlook for FY2023 and Beyond

We expect dynamic and volatile supply chain and labor conditions to persist at least through the calendar year. As the environment evolves, we plan to adjust and adapt our pricing and our production schedules to best serve our customers. Our focus remains on strategically investing in new technologies and solutions, resilient supply chains, production capacity, and growing and serving our existing and new customers and markets. These strategies position us for long-term growth and increasing value for our stakeholders.

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