Daktronics Reports Strong Fiscal Q1 2025 Results Daktronics, Inc. (NASDAQ: DAKT), a prominent U.S.-based designer and manufacturer of dynamic video displays and control systems, has released its financial results for the first quarter of fiscal 2025, ending July 27, 2024. The company reported robust performance and growth across several key metrics, reflecting its ongoing strategic advancements and market demand.
Fiscal Q1 2025 Financial Highlights:
– Sales : Daktronics achieved sales of $226.1 million, marking a 4.7 percent increase from the previous quarter, driven by heightened production and deliveries in sports and outdoor seasonal sectors.
– Gross Profit : The gross profit margin rose to 26.4 percent from 25.7 percent in the fourth quarter of fiscal 2024.
– Operating Income : Operating income surged to $22.7 million, up 16.9 percent from $19.4 million in the prior quarter.
– Adjusted Net Income : Excluding a non-operating non-cash debt fair value adjustment, adjusted net income stood at $16.6 million. The quarter’s net loss, including the adjustment, was $4.9 million.
– Order Backlog : The product order backlog was $267.2 million, down from $316.9 million at the end of the previous quarter, reflecting a continued reduction from prior overbuilt backlogs.
– Product Orders : New product and service orders totaled $176.2 million, showing a 14.4 percent decrease from the fourth quarter of fiscal 2024 but an 11.1 percent increase compared to the same quarter last year.
Reece Kurtenbach, Daktronics’ Chairman, President, and CEO, highlighted the company’s strong performance and strategic focus. “We are pleased with our strong start to the fiscal year, building on last year’s record performance. Our emphasis on efficient manufacturing and timely deliveries, particularly in our Live Events and High School Parks and Recreation units, has driven sequential revenue growth and improved margins,” Kurtenbach said. “Despite the fair value adjustment related to our convertible note, we generated operating cash flow of $19.5 million, underscoring our operational effectiveness.”
Kurtenbach outlined the company’s strategic priorities, emphasizing ongoing digital transformation and product innovation. Daktronics is preparing to release critical technologies for service and systems maintenance, aiming to modernize and automate operations. Additionally, the company plans upgrades to enterprise performance management tools and enhancements to its Show Control solution, which will introduce advanced features for live entertainment and sports applications.
The company anticipates continued strong demand across its business units and expects seasonal trends to normalize. Daktronics is committed to investing in its transformation plan to enhance shareholder returns and drive future growth.
Orders for Q1 fiscal 2025 increased by 11.1 percent year-over-year, driven by demand in the On-Premise, Spectacular, and Out-of-Home markets. However, order volumes decreased in the Live Events and International business units, impacted by global macroeconomic uncertainty. Net sales decreased by 2.8 percent from the same period last year due to lower volumes in certain sectors, although sequential growth was achieved.
Gross profit margin for the quarter was 26.4 percent, down from 30.6 percent a year ago, but improved from the previous quarter. Operating expenses rose 19.6 percent to $37.0 million due to investments in IT and sales team expansion. Despite these increases, the company’s operating income percentage improved compared to the previous quarter.
As of July 27, 2024, Daktronics held $97.2 million in cash, restricted cash, and marketable securities. The company reported $76.0 million in total current and long-term debt and maintained a working capital ratio of 2.2 to 1. Daktronics generated $19.5 million in cash from operations and invested $5.1 million in property and equipment during the quarter.
Daktronics is the world’s largest supplier of large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The company operates through domestic business units focused on Live Events, Commercial, High School Park and Recreation, and Transportation, as well as an International business unit.
By: Montana Newsroom staff
