Welcome to our dedicated page for Daktronics news (Ticker: DAKT), a resource for investors and traders seeking the latest updates and insights on Daktronics stock.
Daktronics Inc (NASDAQ: DAKT) is a global leader in designing and manufacturing electronic scoreboards, programmable display systems, and large-screen video displays for a multitude of applications including sports, commercial, and transportation sectors. Founded in 1968, the company was initially created to provide career opportunities for South Dakota college graduates and has since expanded its vision and operations worldwide.
Product and Service Offerings
Daktronics offers a comprehensive range of products and services that include:
- Electronic scoreboards for high school, collegiate, and professional sports teams.
- Large-screen video displays for stadiums and arenas.
- Programmable display systems for commercial advertising and transportation information.
- Audio systems to complement visual displays.
- Control systems for seamless management of multimedia content.
Market Segments
The company operates through five reportable segments:
- Commercial: Digital billboards, message displays, and LED signs for businesses and advertising.
- Live Events: Scoreboards and video displays for sports venues.
- High School Park and Recreation: Scoreboards and display systems for educational institutions and local sports facilities.
- Transportation: LED displays providing information at airports, train stations, and highways.
- International: Operations outside the United States catering to a global audience.
Recent Achievements
Daktronics has recently installed a curved, HDR-capable display at Gillette Stadium, enhancing the in-stadium experience for New England Patriots and New England Revolution fans. Another notable project includes the new six-display LED system at Comerica Park, which will significantly improve the fan experience for Detroit Tigers' supporters.
Financial Performance
The company generates most of its revenue from live events and has a strong presence in the professional sports market, integrating LED systems in over 50% of all professional sports facilities in the United States and Canada.
Global Reach and Partnerships
Daktronics has a robust global presence, providing critical display technology in nearly 100 countries. Their partnerships extend across various industries, ensuring the delivery of vital information and entertainment to millions of people daily, whether at airports, highways, or sports arenas.
For more information, visit the company's website at: www.daktronics.com or contact their investor relations team.
Cree LED, a Penguin Solutions brand (PENG), and Daktronics (DAKT) have established a multi-year, global patent license agreement effective December 2024. The agreement grants Daktronics access to Cree LED's patented technology, with exceptions.
Cree LED, with over 35 years of expertise in LED die and packaging technology, maintains a substantial intellectual property portfolio focused on LED display applications. The agreement allows Daktronics, a leader in large-scale LED displays, to utilize these patents without concern for potential patent disputes during the agreement term.
While specific licensing terms remain confidential, the partnership enables Daktronics to confidently deliver state-of-the-art LED display systems to the market.
Breach Inlet Capital, a top 10 shareholder of Daktronics (DAKT) with nearly 2% ownership, has issued a public letter expressing concerns about the company's board and supporting fellow shareholder Alta Fox. The letter criticizes several issues including: delayed CFO search announcement following a going concern notice, late disclosure of consultant hiring, and vague financial targets. The firm points out that management and board members have sold approximately $19 million in stock (35% of holdings) in the past six months.
Breach Inlet Capital proposes immediate changes including board declassification, appointment of four shareholder-nominated directors, separation of CEO and Chairman roles, and restructuring of executive compensation. The letter also highlights the board's rejection of Glen Herrick, a qualified candidate for both board and CFO positions, suggesting potential entrenchment issues.
Alta Fox Capital Management, Daktronics' (NASDAQ: DAKT) largest shareholder with 11.7% ownership, has issued a statement addressing what they describe as misleading claims from the company. Alta Fox clarifies their position regarding their convertible promissory note and reiterates their belief that Daktronics can achieve approximately $40 per share and ~100% upside by FY28.
The investor criticizes Daktronics' governance practices, including a staggered Board, poison pill, and alleged nepotism. Alta Fox's equity position is worth nearly $114 million once converted, representing about 5 times the shares held by the entire Board. The firm plans to nominate independent director candidates and emphasizes their right to call a special shareholder meeting.
Daktronics (NASDAQ:DAKT) has responded to public statements from Alta Fox Capital Management regarding their $25 million convertible debt investment from May 2023. The company reveals that Alta Fox demanded early repayment of the 20-month-old debt at more than triple its face value and nearly 50% above fair value. Daktronics' Board rejected this proposal as too costly for shareholders.
Alta Fox reportedly threatened litigation, a special shareholder meeting, and board nominations if their terms weren't met. The company has made a counterproposal reflecting market value and continues to focus on its business transformation plan. Notably, Daktronics' stock closed at $19.24, exceeding Alta Fox's initial $16.23 target from May 2023.
Alta Fox Capital Management, Daktronics' largest shareholder with 11.7% ownership, has released a presentation highlighting governance issues and proposing reforms at the company. The investor criticizes the current leadership under CEO and Chairman Reece Kurtenbach for poor performance, citing 195% underperformance versus the S&P 500 during his tenure.
Alta Fox outlines a path to reach ~$40 per share through governance reforms including board refreshment, splitting CEO/Chairman roles, and improving investor communications. The firm plans to nominate independent director candidates for the 2025 annual meeting and proposes hiring a qualified CFO with public company experience.
The presentation criticizes Daktronics' family business mentality, noting that three of five named executive officers are Kurtenbach family members, and highlights concerns about ineffective corporate governance practices including staggered board terms and a poison pill.
Daktronics (DAKT), a global leader in video display systems, announced its participation in The Benchmark Company's 13th Annual Discovery One-on-One Investor Conference. The event will take place on December 11th, 2024 at the New York Athletic Club in New York City.
CEO Reece Kurtenbach and CFO Sheila Anderson will represent Daktronics, engaging in one-on-one meetings with investors and analysts throughout the conference. This format provides emerging growth companies direct access to institutional and individual investors.
Interested investors can schedule meetings with Daktronics executives through the conference's online registration system.
Daktronics (NASDAQ:DAKT) reported strong fiscal Q2 2025 results with sales of $208.3 million, up 4.5% year-over-year. The company achieved record cash flows from operations of $43.3 million for the quarter and $62.8 million for the first six months of fiscal 2025.
Key financial highlights include gross profit margin of 26.8%, operating income of $15.8 million, and net income of $21.4 million. Product order backlog stood at $236.0 million, while product and service orders reached $177.6 million for the quarter.
The company is executing its business transformation plan aimed at growing revenue faster than the addressable market and expanding operating margins. Daktronics also announced plans to convert its $25.0 million Convertible Note to common stock in tranches, which will save approximately $5.2 million in interest expense.
Daktronics (NASDAQ: DAKT) announced it will release its second quarter fiscal 2025 financial results on Wednesday, December 4, 2024, before market opens. The company will host a conference call and webcast at 10:00 AM CT on the same day, led by CEO Reece A. Kurtenbach and CFO Sheila M. Anderson.
Daktronics (NASDAQ:DAKT) has announced amendments to its Shareholder Rights Agreement, extending it to November 19, 2025, with a new exercise price of $40.00 and beneficial ownership thresholds of 15% (20% for passive investors). The company plans to convert $7 million of Alta Fox's $25 million convertible note into approximately 1.1 million shares, resulting in Alta Fox owning about 6% of outstanding shares. The Board rejected Alta Fox's proposal demanding $79 million to retire the note, viewing it as not in shareholders' best interests. The Rights Agreement extension aims to protect shareholder interests, particularly given Alta Fox's threats to nominate board candidates.
Daktronics (NASDAQ:DAKT) has announced plans to convert a $25 million convertible promissory note held by Alta Fox Capital Management into common stock, starting with an initial $7 million conversion on December 3, 2024. The remaining amount will be converted in tranches up to $7 million every 30 days. This decision follows the company's strong financial performance, with record revenue and profits in FY2024, and a stock price increase of over 300% in two years. The conversion will save approximately $5.4 million in interest expenses. To offset dilution, the company plans to execute share repurchases. Due to Alta Fox's 3% ownership Maximum Percentage limit, share delivery will be delayed until Alta Fox certifies lower ownership levels.
FAQ
What is the current stock price of Daktronics (DAKT)?
What is the market cap of Daktronics (DAKT)?
What does Daktronics Inc (DAKT) do?
When was Daktronics founded?
What are the main market segments of Daktronics?
Where can I find more information about Daktronics?
Does Daktronics operate internationally?
What recent projects has Daktronics completed?
How does Daktronics generate most of its revenue?
What products does Daktronics offer?
How can I contact Daktronics investor relations?
What is the company’s significance in the sports industry?
