Daktronics released financials for the three months ended October 31, 2020.   Revenues are down but the company stayed profitable due in part to expenses cuts.   Here are the highlights from the earnings release and earnings call.

• Revenues declined by 27% to $127.4 million for the three months ended October 31, 2020.  All of the company’s business units were down except on-premise signs.  CFO and Treasurer Sheila Anderson explained the decline in the digital billboard business:”…businesses which rely on revenues from out-of-home advertising or who are reliant on customer foot traffic to drive sales, have been adversely impacted by stay-at-home orders or quarantine orders. This has delayed their discretionary spending, capital spending in many cases.”.
• Net income declined to $3.4 million in the 3 months ended October 31, 2020 versus $7.3 million for the prior year, due to reduced revenues.

CEO Reece Kurtenbach was bullish on the company’s commercial unit (which makes digital billboards)

In our Commercial business unit, we see growth opportunities because of expansion of solutions for indoor applications, the continued replacement in new investment in the out-of-home and retail segments, and opportunities in the Spectacular segment…I think that what we’ve seen in the out-of-home advertising, is that when uncertainty looms, they are one of the first to pull back. But as they see positive signs, they are one of the first back in to make investments…and we’ve seen some out-of-home companies continue to invest during the downturn, so some variability there as well.

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