Daktronics Inc - DAKT STOCK NEWS

Daktronics has been chosen by the Green Bay Packers to install two main and two auxiliary LED video displays, alongside 60 concourse displays at Lambeau Field. This project, encompassing around 24,500 square feet and totaling 79.5 million pixels, is set for completion in spring 2023 for the upcoming football season. The main displays will feature a 6mm pixel spacing, boasting over 26.3 million pixels each, making them the highest resolution displays in professional football. Daktronics aims to enhance fan engagement and experience with these state-of-the-art systems.

Daktronics (NASDAQ: DAKT) reported record Q3 FY2023 net sales of $185.0 million, a 32.5% increase year-over-year. The product order backlog reached $429.1 million, up from $353.3 million last year. Gross profit margin improved significantly from 16.0% to 22.6%. Operating income stood at $7.1 million, with an adjusted operating income of $11.7 million, compared to a loss of $5.7 million in Q3 FY2022. Key drivers for performance included strategic pricing, enhanced operational efficiency, and inventory management. The company also extended a $10.0 million credit facility, enhancing liquidity amidst ongoing supply chain improvements.

Daktronics Inc (DAKT) will release its third quarter fiscal 2023 financial results on March 8, 2023, before the market opens. A conference call will follow at 10:00 AM CT, hosted by CEO Reece A. Kurtenbach and CFO Sheila M. Anderson. This call will feature forward-looking statements and other significant information concerning the company's performance. Participants are required to pre-register for phone access to the call. Daktronics remains a leading supplier in large-screen video displays and electronic scoreboards, with a strong market presence across various business units.

Daktronics (NASDAQ-DAKT) will debut a new 4K and HDR-capable video display at Citizens Bank Park, home of the Philadelphia Phillies, on April 6, 2023. This display will be 77% larger than the previous one, measuring approximately 85 feet high and 151 feet wide, totaling nearly 12,900 square feet. It features enhanced resolution, improved viewing angles, and the ability to showcase multiple graphic zones, providing fans with an exceptional game experience. Daktronics continues to lead in sports venue technology, having integrated LED systems in nearly 60% of professional sports facilities in North America.

Alta Fox Capital Management has become the largest shareholder of Daktronics (NASDAQ: DAKT), owning over 5.8% of its outstanding shares. In a letter to the Board of Directors, Alta Fox criticized management under Reece Kurtenbach, citing a decline of more than 60% in share value during his tenure, contrasting sharply with the Russell 2000's growth. Alta Fox expressed disappointment over the Board's lack of decisive action regarding corporate governance and management issues, urging engagement for a turnaround. They emphasized their commitment to improving the company and supporting local South Dakota stakeholders.

Daktronics, Inc. (NASDAQ-DAKT) has amended its credit agreement with U.S. Bank to extend the maturity of $10 million of its $45 million credit facility to May 1, 2023. This extension is part of the independent Strategy and Financing Review Committee's efforts established in December 2022 to enhance the company’s liquidity and financial structure. The committee, chaired by Howard I. Atkins, engages financial and legal advisors to explore long-term liquidity options, including reviewing financing proposals. However, there's no guarantee that these efforts will result in a successful transaction or improvement.

Alta Fox Capital Management has expressed deep concerns regarding Reece Kurtenbach, Chairman and CEO of Daktronics (NASDAQ: DAKT), citing severe governance issues and poor financial decision-making leading to significant shareholder losses. They claim that under Kurtenbach's leadership, Daktronics has seen a 60% decline in total returns since his appointment in 2013, contrasting sharply with the 110% growth of the Russell 2000 index during the same period. Furthermore, Alta Fox accuses management of nepotism, ineffective capital expenditures, and failing to respond to their proposals for necessary governance changes. Alta Fox holds around 4% of Daktronics and is considering escalating their efforts to drive change.

Daktronics (NASDAQ-DAKT) has announced a significant upgrade at Target Field ahead of the 2023 baseball season, installing 22 new LED displays totaling over 23,000 square feet, marking a 63% increase from 2022. The main video display will grow 75% in size and be HDR-capable, enhancing game day experiences. Additionally, production of 13.1 million LEDs has commenced, with installation to be completed by April 8. This project is part of a longstanding partnership with the Minnesota Twins, showcasing Daktronics’ commitment to delivering cutting-edge technology in sports facilities.