Daktronics Inc. (DAKT) Posts Q4 Results backed by Solid Pipeline and Backlog

QualityStocks would like to highlight Daktronics, Inc. (NASDAQ: DAKT). The company is recognized worldwide in its industry as the leading designer and manufacturer of electronic scoreboards, programmable display systems, and large screen video displays, using light emitting diode (LED) technology.

In the company’s news yesterday,

Daktronics posted its fiscal 2011 fourth-quarter financial results.

The company reported fourth-quarter revenues of $114.4 million, compared to revenues of $92.0 million for fiscal fourth quarter 2010.

Net income for the fourth quarter 2011 was $3.0 million, or $0.07 per diluted share, compared to a net loss of $4.9 million, or $(0.12) per diluted share for the comparable quarter of 2010.

Backlog at the end of the fiscal 2011 fourth quarter was approximately $131 million, compared to a backlog of approximately $127 million a year earlier.

For the full-year ended April 30, 2011, Daktronics reported revenues of $441.7 million compared to $393.2 million reported for fiscal 2010. Full year 2011 net income was $14.2 million, or $0.34 per diluted share, compared to a loss of $7.0 million, or $(0.17) per share for 2010.

The company attributes the positive results mainly to strength in its Commercial and International business units, though it is experiencing growth in other areas as well.

“We closed out fiscal year 2011 with continued strong performance in the two business units that have been leading our recovery from the slowdown of the past couple of years,” Jim Morgan, president and CEO of Daktronics stated in the press release. “Orders increased 23 percent year over year in our Commercial business unit and 38 percent year-over-year in our International business unit. We continue to see constraints to growth in our Live Events and Schools and Theaters business units, which were the last parts of our business to enter into the economic downturn. We saw an improvement in gross margins on new orders booked during the quarter, which we attribute to better cost performance of our new generation products.”

Going forward, Morgan said the company’s strategy is to grow its top line and enhance the quality and strength of its products and financial position.

“Our focus continues to be on winning orders to continue to grow the top line, while at the same time continuing to reduce costs by improving our processes across the company and further reducing the manufactured costs of our products through leveraging a global supply chain and product development initiatives. At the same time, we continue initiatives to improve reliability and quality, maintain a high level of on-time delivery, and strengthen our after-sales service delivery. We will continue to focus on free cash flow, with our priorities for cash being funding operations, including developing new and improved product offerings, expanding markets for existing products, and investing in business process improvement initiatives to create shareholder value over time,” Morgan stated.

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Forward-Looking Statement:

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.