Digital billboard maker Daktronics has released financials results for the first quarter of FY 2022 (3 months ended July 31, 2021).

• Revenue increased 1% to $145 million.
• Net income declined from $7.5 million during the 3 months ended August 1, 2020 to $3.7 million during the 3 months ended July 31, 2022 due to inflation in material and freight costs and increased personnel spending.
• The company’s order backlog grew 48% to 285 million with increases in all the company’s sectors including digital billboards.

Daktronics CEO Reece Kurtenbach said the company faces supply chain issues.

“Late last fiscal year, order and quoting activities began to recover as the pandemic impacts subsided. Strong market conditions and recovery continued through the first quarter and orders increased in all business units. At the same time, material, labor, and freight availability constraints are creating headwinds in lead times and inflationary pressures. We expect these headwinds to persist through this calendar year with some impacts continuing into next calendar year. Our teams are performing well to keep up with the robust demand and working through the dynamic supply chain conditions.”

Insider’s take:  The next few quarters look bright based on the order backlog increase but cost pressures offset the bright revenue outlook.  Daktronics finished the day down 4% to $5.82 on a day when the S&P 500 was flat.

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