Daktronics Introduces New Flip-Chip COB LED Technology
Daktronics (NASDAQ: DAKT) has introduced its latest Flip-Chip COB LED display technology. This new addition to the Narrow Pixel Pitch (NPP) product family features pixel spacings from 1.8mm to 0.9mm and boasts increased durability, reliability, and lower power consumption. The Flip-Chip COB LEDs are designed to reduce heat, eliminate wire bonds for enhanced reliability, and feature a thin, lightweight cabinet design for easy installation. The technology ensures high-contrast, vibrant colors, and is robust against impact, moisture, dust, and static. The product caters to various brightness needs, suitable for environments with indirect sunlight. Daktronics is leveraging its extensive experience to ensure the longevity and success of this product.
- New product introduction: Flip-Chip COB LED technology.
- Enhanced durability with reduced heat and no wire bonds.
- Lower power consumption, leading to reduced ownership costs.
- Thinnest and lightest cabinet design in the market.
- Fast installation process with Speed Frame.
- High-contrast, vibrant color displays.
- Protection against impact, moisture, dust, static, and oxidation.
- Multiple brightness options for various indoor applications.
- Potential high initial cost for the new technology.
- Market acceptance risks for the new product.
- Dependency on the indoor display market performance.
Insights
From a technology perspective, Daktronics' introduction of Flip-Chip COB (Chip On Board) LED display technology is a notable advancement. Flip-Chip COB technology offers several advantages over traditional SMD (Surface Mount Device) and IMD (Integrated Matrix Device) LEDs. The removal of wire bonds enhances reliability and reduces failure points, which is critical in environments that require long-term durability. Additionally, the technology reduces power consumption, which can be a significant cost saver for businesses in the long run. The thinnest and lightest cabinet designs are particularly useful for installations in spaces where weight and aesthetics are important factors.
Also, the technology's encapsulant design, providing protection against impact, moisture, dust, static and oxidation, further improves the product's lifespan and reliability. This makes the Flip-Chip COB LEDs a viable option for various high-traffic indoor environments such as lobbies and concourses, where display durability is essential.
Overall, Daktronics has positioned itself well in the competitive LED display market with this release, potentially drawing interest from sectors that prioritize high-quality, reliable displays.
From a market research viewpoint, the launch of Flip-Chip COB technology by Daktronics can have several implications. The global market for LED displays is growing, driven by increasing adoption in advertising, public display and indoor applications. Daktronics' focus on narrow pixel pitch (NPP) displays—ranging from 1.8mm to 0.9mm—caters to a segment of the market that demands high-resolution and high-durability displays. The company's emphasis on low power consumption and increased reliability can offer competitive advantages, potentially attracting clients who are looking for long-term cost savings and dependable performance.
The Speed Frame installation process mentioned can also be a significant selling point, as it reduces setup time and improves the overall aesthetic of the display. Given the importance of quick and attractive setups in commercial spaces, this feature can enhance the product's appeal to businesses looking to minimize downtime during installation.
By addressing the needs of various indoor environments, including high-brightness areas, Daktronics is expanding its market reach. However, the company will need to continue innovating and possibly focus on competitive pricing to capture and retain market share in a highly competitive industry.
From a financial perspective, the introduction of Flip-Chip COB technology by Daktronics could have positive implications for the company's revenue and profitability. Innovations in LED display technology often lead to higher margins due to the premium pricing of advanced products. By offering a product that boasts lower power consumption and higher reliability, Daktronics can appeal to a broad range of commercial clients who prioritize total cost of ownership and operational efficiency.
The potential for reduced maintenance costs due to the enhanced durability of Flip-Chip COB LEDs could also lead to stronger client retention and satisfaction rates. This is particularly important for long-term contracts and repeat business, which can provide stable revenue streams.
However, investors should be cautious about the initial costs associated with launching new technology, including research and development expenses, marketing and scaling up production. These costs could impact short-term financials but are expected to pay off in the long term as the technology gains market acceptance.
Increased durability and reliability combine with lower power consumption in NPP display product
BROOKINGS, S.D., May 16, 2024 (GLOBE NEWSWIRE) -- Daktronics (NASDAQ-DAKT) of Brookings, South Dakota, has released its Flip-Chip COB (Chip On Board) LED display technology worldwide. The company’s latest addition to its Narrow Pixel Pitch (NPP) product family brings tighter pixel spacings ranging from 1.8 millimeters to 0.9 millimeters with increased durability and reliability combined with lower power consumption for an overall improved experience for customers.
“This product shows we’re staying on the cutting edge of technology in the LED industry,” said Adam Gilliland, Daktronics product manager. “As indoor applications have grown exponentially, it’s become increasingly important to meet the needs of the marketplace – one that is always looking for innovative, new ways to capture the attention and awe of their audiences.”
Flip-Chip COB LED Display Details
The new COB technology provides an alternative to traditional Surface Mount Device (SMD) and Integrated Matrix Device (IMD) LED options. It brings a lower amount of heat to the display face and removes the wire bonds to increase reliability. It also decreases the power consumption for a lower cost of ownership over time.
The cabinet for the COB product is the thinnest in the marketplace today and also the lightest weight available. Bringing this product to market with the company’s Speed Frame installation process ensures a fast install with borders to deliver a sleek, clean appearance.
Critical to the reliability and durability of the COB product is Daktronics' 35+ years of experience with coatings and encapsulants leading to a specific encapsulant design that provides a rich black matte finish for high-contrast, vibrant colors and crisp imagery. This accounts for the safety of the product during handling for shipping and installation as well as serving as a barrier to impact, moisture, dust, static and oxidation.
“Product reliability is extremely important to us here at Daktronics and ensuring our projects are successful on day one as well as many years into the future,” said Jim Vasgaard, Daktronics national sales manager for the AV sales channel. “We have a dedicated lab focused on product and component testing, among other things, to ensure we’re selecting the best parts that pass our stringent testing requirements to provide industry-leading reliability in our flip-chip COB LEDs, constant current drivers, power supplies and encapsulant.”
Finally, the product comes with various brightness options with specific applications in mind to combine with our rich black contrast to combat indoor indirect sunlight in multiple applications ranging from typical indoor office environments to high-ambient brightness lobbies, concourses and more.
“The thin, lightweight design feeds into these applications, along with the durability of the screen. You can touch and tap on the display itself without worry of damaging the product beyond repair,” added Gilliland. “These advantages are something we’re excited to see implemented across multiple installations in the near future.”
For more information on Daktronics COB technology, click here.
About Daktronics
Daktronics helps its customers to impact their audiences throughout the world with large-format LED video displays, message displays, scoreboards, digital billboards, audio systems and control systems in sport, business and transportation applications. Founded in 1968 as a USA-based manufacturing company, Daktronics has grown into the world leader in audiovisual systems and implementation with offices around the globe. Discover more 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 2023 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.
MEDIA RELATIONS
Justin Ochsner
Public Relations/Marketing
Tel 605-692-0200
Email justin.ochsner@daktronics.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/64a94fea-0550-4aeb-a02c-2880f7a4869a
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