Daktronics, Inc. has announced the next steps in 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 significantly strengthened its balance sheet and fulfilled orders during fiscal 2023 and 2024, resulting in reducing its backlog to more normal levels and delivering record revenue and profit. As of fiscal year-end 2024, the company has reported liquidity of more than $135 million.
To further drive progress, Daktronics has formed an internal Business Transformation Office (BTO) comprising the chief executive officer, other members of the leadership team, and senior executives from a leading global strategic and operational consulting firm. Additionally, the board has formed an ad hoc transformation committee to oversee the execution of strategic initiatives.
The BTO has conducted a comprehensive review of the company's business, strategy, and operations to develop a set of strategic initiatives aimed at achieving above-market growth, expanding operating margins, and generating returns on capital in the mid-to-high teens and consistently above the company’s cost of capital.
As part of these changes, the board has initiated a search for a new chief financial officer to support the company’s goals related to 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.
The board has also noted that the company has approximately $29 million remaining under its existing share repurchase authorization and is evaluating opportunities to use and potentially augment that authorization over time.
Looking ahead, Daktronics expects to deliver fiscal 2025 second-quarter revenue, gross profit, and operating income approximately in line with the current analyst consensus. The company plans to release its fiscal Q2 earnings and host a conference call in early December to discuss results for the quarter and management’s expectations for the full fiscal year.
Daktronics, Inc. is a leading supplier of large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems, with strong leadership positions in various business units. The market has reacted to these announcements by moving the company's shares 0.1% to a price of $13.57. For the full picture, make sure to review Daktronics's 8-K report.