Daktronics Stock Tumbles

Daktronics, Inc. (DAKT), is a company from Brookings, South Dakota - USA, that develops its business around the marketing area, by providing design, development, and support of visual display solutions.

Daktronics products include timing systems, digit displays, sound systems, indoor and outdoor scoreboards and statistics software for the sports area; video, graphics, animation and controllers that manage the display’s operation for the commercial area; and an all set of different electronic displays for the transportation area.

On the fiscal year that ended on last April 29th, Daktronics, Inc’s revenue rose about 34% to $309 Million and its net income rose more than 34% to around $21 Million. Revenue improvement reflects the increase in demand from their clients, mostly outdoor advertising companies, and higher sales of their standard galaxy product (commercial area). Expenses with product design & development, as well as new selling efforts have offset part of the Net income. Their Profit Margin rounds 6.8%, while Operating Margin is near 10.28%.

Daktronics recently reported fiscal 2007 first quarter net sales of over $92 million and a net income of $5 million, meaning $0.12 per each diluted share, while a year ago the results were lower at $0.11 per diluted share.
According to company records, Daktronics is achieving a more solid performance each quarter, mostly sponsored by business in Asia, where fiscal incentives are supporting the investment and business growth of the company in the region.
Jim Morgan, CEO of the company stated at the results presentation that:

“We estimate net sales for the second quarter of fiscal 2007 will be in the range of $95 to $105 million, with earnings in the range of $0.13 to $0.18 per share. Earnings per share estimates include the impact of stock option expensing of approximately $0.01 per share. With our performance in the first quarter, we are increasing our estimate of net sales for the year to be in excess of $372 million, up more than 20% for the year as a whole.”

Daktronics, Inc. is trading near the $22.50 level at the Nasdaq, almost $10 bellow its 52 weeks high at $31.14, but yet much higher than the low at $10.