Revenue declined but Daktronics was close to breakeven for the 3 months ended January 31, 2021.  Here are the highlights from the Daktronics 3Q FY 21 earnings release and earnings call.

• Revenues declined by 26% to $94 million for the third quarter of fiscal 2021 (three months ended January 30 2021) as covid impacted new orders.  Demand was healthy for the on-premise business but the company’s other businesses, including digital billboards suffered.
• The company’s net loss shrank from $12 million in the third quarter of fiscal 2020 to $236,000 in the third quarter of fiscal 2021 due to lower personnel costs, reduced contractor use, lower travel and entertainment and lower marketing expense.
• The company’s balance sheet is healthy.  Cash balances are $77 million.   The company has suspended dividends, share repurchases and capexp to conserve cash. Debt/equity is 0.91.  Insider considers debt/equity low if below 1.

Kurtenbach on reduced revenues

Areas of our business that were impacted the most are those that serve customers in large gathering spaces which includes our sports and entertainment, mass transit, and airport markets. Our Out-of-Home advertising customers were impacted due to a reduction in national advertising spend and have chosen to delay orders. Customers using on-premise applications are less impacted and are continuing to utilize audio visual systems to inform and persuade their audiences during this time.

Kurtenbach on the outlook for 2021

Our backlog going into the fourth quarter is strong and we believe the audiovisual industry fundamentals will drive long-term growth for our business. However, the near-term outlook shows areas of contraction and greater volatility. We are focused on promoting our value to new and core markets, while managing our cost structure to meet the uncertain demand.

[wpforms id=”9787″]

Paid Advertisement