Daktronics Inc - DAKT STOCK NEWS

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.

Daktronics (NASDAQ-DAKT) collaborated with Heritage Outdoor Media to install an LED digital billboard in Times Square, featuring 8-millimeter resolution SMD technology. This high-definition display, located at 1530 Broadway, aims to enhance branding opportunities for businesses amid significant foot traffic, averaging 260,000 daily visitors. The installation was completed in less than seven working days, minimizing disruptions. The billboard includes advanced features like augmented reality and social media interactivity, positioning it as a pivotal advertising space in a prime location.

Daktronics reported fiscal Q2 2023 results with net sales of $187.4 million, a 14% increase year-over-year. Orders were $182.8 million, up 11.7% compared to last year, with a backlog of $463.1 million. However, the company faced a net loss due to a $13 million non-cash tax asset adjustment, raising concerns about its ongoing viability. Cash and marketable securities fell to $7.7 million from $61.6 million a year prior. Operating income was $1.5 million, with gross profit margins declining to 16.9%.

Daktronics, Inc. (NASDAQ - DAKT) expands its Board of Directors to eight members by appointing Howard I. Atkins as the eighth director. This move follows a Cooperation Agreement with Prairieland Holdco, LLC, aimed at enhancing shareholder value. Atkins, a seasoned financial executive, is expected to contribute significantly to the board's strategic development efforts. His term will last until the 2023 annual meeting, and he will serve on the Board’s compensation committee. The board's refreshment process underscores Daktronics' commitment to long-term growth and value creation.