Daktronics, Inc. (DAKT), a supplier of large screen video and graphic displays, reported Tuesday a decline in third-quarter net income, hurt by higher manufacturing related costs. The results came in slightly below analysts' consensus estimates.
Net income for third quarter decreased to $4.2 million, or $0.10 per share, from $5.4 million, or $0.13 per share, in the previous year.
On an average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share in the third quarter. Analysts' estimate typically excludes special items.
Net sales in the quarter increased 9% to $129.2 million from $118.2 million in the corresponding period last year. Three analysts expected the company to report revenue of $124.17 million in the third quarter.
Jim Morgan, president and chief executive of Daktronincs, said that gross margin for the quarter declined due to several factors, including an issue with the company's finishing process in manufacturing resulting in additional warranty costs and the added cost of excess manufacturing capacity.
Backlog at the end of third quarter was about $128 million, compared to a backlog of about $138 million a year earlier.
For the nine months ended January 31, 2009, net income was $26.1 million, or $0.63 a share, compared to $20.5 million, or $0.50 a share, in the prior year. Net sales surged to $460.1 million from $370.6 million. The first quarter of fiscal 2009 contained one additional week as compared to the first quarter of 2008.
According to Morgan, the company expected continued weakness in much of its business into fiscal 2010 due to the economic downturn.
"Our operating expenses declined in the fiscal 2009 third quarter as compared to the fiscal 2009 second quarter. We intend to further reduce these costs during the fourth quarter of fiscal 2009", said Bill Retterath, chief financial officer of Daktronics.
DAKT is currently trading at $7.17, down $0.64 or 8.19%, on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.