Daktronics revenues have recovered from covid but supply chain issues are impacting the digital billboard maker’s profits. Here are the results from the Daktronics 2Q FY 22 earnings release and earnings call for the 3 months ended October 31, 2021.
- Revenue increased by 30% to $165 million due to eased pandemic site restrictions. The company’s commercial sales, which include digital billboards, increased by 13% to $34 million. Commercial orders increased by 79% to $58 million which suggests revenues should be strong for the next couple quarters..
- Net income declined by 30% to $2.4 million due to inflation in materials and freight costs and higher payroll.
Daktronics CEO Reece Kurtenbach expects supply chain issues to continue:
“During the first half of the year, we have experienced headwinds in the availability of materials, labor and transport, creating inflationary pressures in our cost structure. These headwinds in supply chain disruptions began to emerge as a result of the pandemic and the changes in global demand. Specifically, we are impacted by the global shortage of semiconductors and related electronic components, other materials needed for production, shipping container shortages, and freight availability. We expect these factors will cause volatility in our revenue cycles and production costs through the remaining fiscal year and into our fiscal 2023…”
The company is expanding indoor and spectaculars
“In our Commercial business unit, we are focused on strategies to support the expansion of solutions for indoor applications, continued replacement and new investment activity in the out-of-home and retail segments, and increasing success in the spectacular segment. This segment includes multi-million dollar projects that are discretionary choices by customers, which can cause ups and downs in timing and trends.”
[wpforms id=”9787″]
Paid Advertisement
