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Aug 01, 2020

Daktronics Q1 2021 Earnings Report

Daktronics reported increased operating income and net income despite a decrease in net sales and orders, as customers reduced spending due to COVID-19 implications.

Key Takeaways

Daktronics reported a decrease in net sales and orders for the first quarter of fiscal year 2021, impacted by COVID-19. However, operating income and net income increased due to cost management. The company is focused on managing costs and promoting value in new markets amidst the uncertain demand.

Net sales decreased by 20.3% compared to the first quarter of fiscal 2020.

Operating income increased to $9.5 million, compared to $7.6 million in the same period last year.

Net income rose to $7.5 million, up from $7.0 million in the first quarter of fiscal 2020.

Orders for the first quarter of fiscal 2021 decreased by 34.8% compared to the previous year.

Total Revenue
$144M
Previous year: $180M
-20.3%
EPS
$0.17
Previous year: $0.16
+6.3%
Order Backlog
$192M
Gross Margin
24.9%
Previous year: 25.2%
-1.2%
Operating Margin
6.6%
Previous year: 4.2%
+57.1%
Gross Profit
$35.8M
Previous year: $45.5M
-21.4%
Cash and Equivalents
$44.6M
Previous year: $20.8M
+114.9%
Free Cash Flow
$5.48M
Previous year: -$24.1M
-122.7%
Total Assets
$380M
Previous year: $382M
-0.4%

Daktronics

Daktronics

Daktronics Revenue by Segment

Forward Guidance

The audio-visual industry fundamentals will drive long-term growth, but the near-term outlook shows contraction and greater volatility overall. Customers are expected to continue to have disruptions in revenues caused by COVID-19 throughout the current fiscal year.

Positive Outlook

  • Audio-visual industry fundamentals will drive long-term growth

Challenges Ahead

  • Near-term outlook shows contraction and greater volatility overall
  • Customers will continue to have disruptions in revenues caused by COVID-19 throughout the current fiscal year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income