Daktronics, Inc. Announces Next Steps in Ongoing Business Transformation Plan
Daktronics Inc (NASDAQ: DAKT) has announced the next phase of its ongoing business transformation plan aimed at accelerating profitable growth, increasing profit margins, and driving returns consistently in the mid-to-high teens. The company has formed an internal Business Transformation Office (BTO) and an ad hoc transformation committee of the Board to oversee execution of strategic initiatives.
Key points include:
- Board initiates search for a new Chief Financial Officer
- Sheila Anderson appointed to new role of Chief Data and Analytics Officer
- Company evaluating opportunities to use and potentially augment its $29 million share repurchase authorization
- Expects Q2 fiscal 2025 revenue, gross profit, and operating income to be in line with analyst consensus
The company aims to grow revenue faster than its addressable market, expand operating margins, and generate returns on capital consistently above its cost of capital.
Daktronics Inc (NASDAQ: DAKT) ha annunciato la prossima fase del suo piano di trasformazione aziendale in corso, volto ad accelerare la crescita redditizia, incrementare i margini di profitto e generare ritorni costantemente nella fascia medio-alta dei teen. L'azienda ha costituito un Ufficio di Trasformazione Aziendale (BTO) interno e un comitato di trasformazione ad hoc del Consiglio per supervisione l'esecuzione delle iniziative strategiche.
I punti chiave includono:
- Il Consiglio avvia la ricerca di un nuovo Chief Financial Officer
- Sheila Anderson è stata nominata nuovo Chief Data and Analytics Officer
- L'azienda sta valutando opportunità per utilizzare e, potenzialmente, aumentare la sua autorizzazione all'acquisto di azioni di 29 milioni di dollari
- Si aspetta che i ricavi, il profitto lordo e il reddito operativo del secondo trimestre fiscale 2025 siano in linea con il consenso degli analisti
L'azienda mira a far crescere i ricavi più rapidamente del suo mercato indirizzabile, ad espandere i margini operativi e a generare ritorni sul capitale costantemente superiori al suo costo del capitale.
Daktronics Inc (NASDAQ: DAKT) ha anunciado la próxima fase de su plan de transformación empresarial en curso, con el objetivo de acelerar el crecimiento rentable, incrementar los márgenes de beneficio y generar retornos consistentemente en la banda media-alta de los adolescentes. La compañía ha formado una Oficina de Transformación Empresarial (BTO) interna y un comité de transformación ad hoc del Consejo para supervisar la ejecución de iniciativas estratégicas.
Puntos clave incluyen:
- El Consejo inicia la búsqueda de un nuevo Director Financiero
- Sheila Anderson fue nombrada nueva Directora de Datos y Análisis
- La empresa evalúa oportunidades para utilizar y potencialmente aumentar su autorización de recompra de acciones de 29 millones de dólares
- Se espera que los ingresos, el beneficio bruto y el ingreso operativo del segundo trimestre fiscal de 2025 estén alineados con el consenso de los analistas
La empresa busca hacer crecer los ingresos más rápido que su mercado direccionable, expandir los márgenes operativos y generar retornos sobre el capital de manera consistente por encima de su costo de capital.
다크트로닉스(Daktronics Inc) (NASDAQ: DAKT)는 수익성 있는 성장 가속화, 이익 마진 증가, 일관되게 중상위 수익률 달성을 목표로 하는 지속적인 비즈니스 전환 계획의 다음 단계를 발표했습니다. 회사는 내부 비즈니스 전환 사무소(BTO)를 구성하고 전략적 이니셔티브 실행을 감독하기 위한 이사회의 특별 전환 위원회를 설립했습니다.
주요 사항은 다음과 같습니다:
- 이사회는 새로운 CFO를 위한 검색을 시작합니다
- 쉘라 앤더슨이 새로운 데이터 및 분석 책임자로 임명되었습니다
- 회사는 2,900만 달러의 자사주 매입 승인 활용 및 증대 기회를 평가하고 있습니다
- 2025년 회계연도 2분기 매출, 총 이익 및 운영 소득이 애널리스트의 컨센서스와 일치할 것으로 기대합니다
회사는 자사 제품에 대한 수익을 시장이 타겟으로 삼는 것보다 빠르게 증가시키고, 운영 마진을 확대하며, 자본에 대한 수익을 지속적으로 자본 비용 이상으로 창출할 계획입니다.
Daktronics Inc (NASDAQ: DAKT) a annoncé la prochaine phase de son plan de transformation des affaires en cours, visant à accélérer la croissance rentable, augmenter les marges bénéficiaires et générer des rendements de manière constante dans la fourchette intermédiaire à élevée des adolescents. L'entreprise a créé un Bureau de Transformation des Affaires (BTO) interne et un comité de transformation ad hoc du Conseil d'administration pour superviser l'exécution des initiatives stratégiques.
Les points clés comprennent :
- Le Conseil commence la recherche d'un nouveau directeur financier
- Sheila Anderson a été nommée au nouveau poste de Directrice des Données et Analyses
- L'entreprise évalue les opportunités d'utiliser et potentiellement d'augmenter son autorisation de rachat d'actions de 29 millions de dollars
- Elle s'attend à ce que les revenus, le bénéfice brut et le résultat d'exploitation du deuxième trimestre de l'exercice 2025 soient conformes au consensus des analystes
L'entreprise vise à accroître ses revenus plus rapidement que son marché adressable, à élargir ses marges opérationnelles et à générer des rendements sur son capital de manière constante au-dessus de son coût du capital.
Die Daktronics Inc (NASDAQ: DAKT) hat die nächste Phase ihres laufenden Transformationsplans angekündigt, der darauf abzielt, profitables Wachstum zu beschleunigen, Gewinnmargen zu erhöhen und konsequent Rückflüsse im mittelhohen Teenagerbereich zu steigern. Das Unternehmen hat ein internes Business Transformation Office (BTO) eingerichtet und einen ad hoc Transformationsausschuss des Vorstands gebildet, um die Umsetzung strategischer Initiativen zu überwachen.
Wichtige Punkte sind:
- Der Vorstand beginnt mit der Suche nach einem neuen Finanzchef
- Sheila Anderson wurde zur neuen Chief Data and Analytics Officer ernannt
- Das Unternehmen bewertet Möglichkeiten, die Genehmigung für den Rückkauf von Aktien in Höhe von 29 Millionen US-Dollar zu nutzen und potenziell zu erhöhen
- Erwartet, dass die Umsätze, der Bruttogewinn und das Betriebsergebnis im zweiten Quartal des Geschäftsjahres 2025 mit dem Konsens der Analysten übereinstimmen
Das Unternehmen hat das Ziel, den Umsatz schneller als seinen adressierbaren Markt zu steigern, die Betriebsmargen zu erweitern und kontinuierlich Renditen auf das Kapital über den Kapitalkosten zu generieren.
- Formation of Business Transformation Office to drive strategic initiatives
- Board's ad hoc transformation committee to oversee execution of initiatives
- Search for new CFO with experience in business transformations
- Creation of Chief Data and Analytics Officer role to support digital transformation
- $29 million remaining under existing share repurchase authorization
- Q2 fiscal 2025 financial performance expected to be in line with analyst consensus
- None.
Insights
Daktronics' announcement of its business transformation plan signals a significant strategic shift aimed at enhancing profitability and shareholder value. The formation of a Business Transformation Office and an ad hoc transformation committee demonstrates a serious commitment to change. Key points include:
- Focus on accelerating profitable growth and increasing margins
- Target of mid-to-high teens returns on invested capital
- Search for a new CFO with transformation experience
- Creation of a Chief Data and Analytics Officer role
$29 million remaining in share repurchase authorization
The company's strong fiscal 2024 performance, with record revenue and profit and
Daktronics' transformation plan reflects broader industry trends towards digital transformation and operational efficiency. Key observations:
- The focus on deeper market penetration and expansion into adjacent verticals suggests potential for market share growth
- Emphasis on digital transformation aligns with industry-wide shifts towards data-driven decision-making
- The goal to grow revenue faster than the addressable market indicates an aggressive growth strategy
The company's strong balance sheet and liquidity position (
Business Transformation Office Driving Strategic Initiatives to Accelerate Profitable Growth, Increase Margins and Drive Consistent Returns on Invested Capital in the Mid-to-High Teens
Ad Hoc Transformation Committee of the Board to Oversee Execution of Strategic Initiatives
Board of Directors Initiates Search for New Chief Financial Officer to Support the Achievement of the Company’s ROIC Goals
Sheila Anderson Named to Newly Created Role of Chief Data and Analytics Officer to Lead Digital Transformation
BROOKINGS, S.D., Oct. 21, 2024 (GLOBE NEWSWIRE) -- Daktronics Inc (“Daktronics” or the “Company”) (Nasdaq – DAKT) today announced the next phase of its ongoing business transformation plan to accelerate profitable growth, increase profit margins, and drive returns that are consistently in the mid-to-high teens and well above the Company’s cost of capital.
During fiscal 2023 and 2024, the Company significantly strengthened its balance sheet and fulfilled orders, resulting in reducing its backlog to more normal levels, delivering record revenue and profit, and a fiscal year-end 2024 liquidity of more than
To drive continued progress, Daktronics has formed an internal Business Transformation Office (“BTO”), which includes the Chief Executive Officer, other members of the leadership team and senior executives from a leading global strategic and operational consulting firm. To underscore the importance of these initiatives and to oversee their execution, the Board has formed an ad hoc transformation committee, chaired by director Howard Atkins, who is also a member of the BTO. Mr. Atkins has extensive experience in transformational efforts.
The BTO has undertaken a comprehensive review of the Company’s business, strategy and operations and is developing a set of strategic initiatives, enabled in part by the Company’s previously announced digital transformation, to provide even better outcomes for customers, deeper penetration of its current and adjacent market verticals, above-market growth, and more efficient delivery, fulfilment, and service. The goal of these initiatives is to grow revenue faster than the Company’s addressable market, expand operating margins, and generate returns on capital in the mid-to-high-teens and consistently above the Company’s cost of capital.
The Board has initiated a search for a new Chief Financial Officer and is seeking to recruit an experienced public company CFO who has served as an integral partner in business transformations aimed at driving returns on capital.
Sheila Anderson, who has served as the company’s CFO since 2012, has been appointed to the newly created position of Chief Data and Analytics Officer to support and accelerate the Company’s digital transformation. Ms. Anderson will continue to serve in her role as CFO until her successor is identified.
“With a strong foundation in place and exciting initiatives underway, we believe Daktronics is well positioned to drive sustainable, profitable growth and strong returns on capital,” said Reece Kurtenbach, Daktronicsʹ Chairman, President and Chief Executive Officer. “I look forward to working closely with the committee and the entire Board of Directors to advance these important initiatives. Together, we are committed to taking actions that will enhance and expand Daktronics’ market leadership position and create significant long-term value for our customers, shareholders and all stakeholders.”
The Board notes that the Company has approximately
At this time, Daktronics expects to deliver fiscal 2025 second quarter revenue, gross profit and operating income approximately in line with the current analyst consensus.1 Daktronics expects to release its fiscal Q2 earnings and host a conference call in early December, at which time the Company will discuss results for the quarter and management’s expectations for the full fiscal year; details for this call will be announced separately.
ABOUT DAKTRONICS
Daktronics has strong leadership positions in, and is the world's largest supplier of, large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. The company excels in the control of display systems, including those that require integration of multiple complex displays showing real-time information, graphics, animation, and video. Daktronics designs, manufactures, markets and services display systems for customers around the world in four domestic business units: Live Events, Commercial, High School Park and Recreation, and Transportation, and one International business unit. For more information, visit the company's website at: www.daktronics.com.
SAFE HARBOR STATEMENT
Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. These forward-looking statements reflect the Company's expectations or beliefs concerning future events. The Company cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectations, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts and orders, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions, increased regulation and other risks described in the company's SEC filings, including its Annual Report on Form 10-K for its 2024 fiscal year. Forward-looking statements are made in the context of information available as of the date stated. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
Forward-looking statements are made in the context of information available as of the date stated. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
FOR MORE INFORMATION
Sheila Anderson, Chief Financial Officer
Investor Relations
Tel 605-692-0200
Email investor@daktronics.com
LHA Investor Relations
Carolyn Capaccio / Jody Burfening
DAKTIRTeam@lhai.com
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1 FactSet calculates consensus revenue, gross profit and operating income for Q2 2025 to be
FAQ
What is Daktronics' (DAKT) business transformation plan aiming to achieve?
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