Daktronics Q3 2020 Earnings Report
Key Takeaways
Daktronics reported Q3 fiscal year 2020 results with increased net sales but decreased profitability. Net sales increased by 10.9% to $127.7 million, while the company faced an operating loss of $9.2 million and a net loss of $12.7 million, or $0.28 per diluted share.
Net sales increased by 10.9% to $127.7 million compared to Q3 2019.
The company experienced an operating loss of $9.2 million and a net loss of $12.7 million, or $0.28 per diluted share.
Orders remained relatively flat at $135.0 million compared to $135.4 million in Q3 2019.
Product order backlog at the end of Q3 2020 was $187 million, up from $168 million a year earlier.
Daktronics
Daktronics
Daktronics Revenue by Segment
Forward Guidance
Daktronics anticipates growth opportunities but faces near-term uncertainties due to the coronavirus situation, which may impact order timing and supply chains.
Positive Outlook
- Sales opportunities in the marketplace are growing.
- Active project bids have increased this year compared to last year in all business units.
- The dynamic audio-visual communication systems market is expected to grow over the long-term.
- Growth is seen in current markets, with access to new markets through increased capabilities of NPP displays.
- The company continues to invest in new technologies and market development.
Challenges Ahead
- Orders and sales timing may be impacted by the coronavirus situation (COVID-19).
- Potential customer order delays due to COVID-19.
- Potential supply chain disruptions due to COVID-19.
- Fixed ongoing costs need to be covered.
- Strategic investments are required.
Revenue & Expenses
Visualization of income flow from segment revenue to net income