Daktronics mention in KC Star Article

[filbert]

Actually a Wall Street Journal article, but ran in the Kansas City Star (registration required).

Dak excerpt:

The technology has driven Daktronics Inc. of Brookings, S.D., the largest U.S. maker of scoreboards, into other types of outdoor signs, including some in New York’s Times Square and London’s Piccadilly Circus.

Daktronics has edged ahead of an Asian rival, Lighthouse Technologies, of Hong Kong, in a race to make the biggest LED screen. Two months ago, Daktronics unveiled a 50-foot-high by 140-foot-wide screen for Dolphin Stadium in Miami, beating Lighthouse’s 132-foot screen, which sits above touristy Nathan Road in Hong Kong.

[thebluehatman]

Re: Daktronics mention in KC Star Article

dak is gonna be making way bigger in the near future. there is a couple of big projects on going.

[bub94]

Re: Daktronics mention in KC Star Article

The Miami Dolphins asked Daktronics to hopefully not sell a bigger display than theirs.  Ooops, we are making one for the Texas Longhorns that is bigger.  Both are HD displays too. The Dolphins are also adding a huge ProAd around the stadium.  That will be a site to see when they host of Superbowl.   We are starting to break ground on another addition plus the SF announcement means we are just getting bigger and bigger.

[89rabbit]

Re: Daktronics mention in KC Star Article

Here is a story about Daktronics in the Grand Forks paper:

http://www.grandforks.com/mld/grandf...e/14878488.htm

Wrestling scoreboard helped Daktronics pin sports market

DIRK LAMMERS
Associated Press

BROOKINGS, S.D. - Sales of sports scoreboards, video displays and digital billboards have helped boost Daktronics' stock to an all-time high as shareholders prepare for Friday's two-for-one stock split.

But company founders Al Kurtenbach and Duane Sander weren't dreaming of putting megascreens in big-league ballparks when they started Daktronics out of a Brookings garage and basement.

In 1968, Kurtenbach and Sander were South Dakota State University electrical engineering professors interested in biomedical instrumentation. When it became clear they didn't have access to enough money or a nearby teaching hospital to run a biotech company, they looked for other places where technology could lend a hand, said Kurtenbach, Daktronics' board chairman. . . . (read more)


Go State!

[89rabbit]

Re: Daktronics mention in KC Star Article

Yet another story about Daktronics:

http://www.brookingsregister.com/mai...36&page=23

Dak buys interest in Arena Media

BY REGISTER STAFF

Daktronics, Inc., announced Wednesday that it has acquired a $6 million stake in one of the country’s largest sports- and entertainment-venue communications companies.

As part of the deal, the Brookings manufacturer will also form a strategic partnership with New York-based Arena Media Networks that will provide targeted, digital advertising and sponsorship opportunities at facilities across the country.

The agreement provides for a $6 million equity investment in Arena Media Networks by Daktronics and creates an opportunity for the expansion of equipment sales, services and media revenues for the parties. . . . (read more)

[thebluehatman]

Re: Daktronics mention in KC Star Article

http://www.texassports.com/index.php...ange_well_id=2
When asked what he expected would be the reaction of Texas Football fans to the new 134-feet wide and 55-feet high scoreboard that will be unveiled this September, Mike Miller of Earl Miller Productions said, "I hope it will be, 'Wow, that thing is pretty big!"

Indeed.

So big, that it is the world's largest high-definition scoreboard from Daktronics, a South Dakota-based firm.

Think of it as the world's largest big-screen TV at 1,740 inches.

Miller sounded almost as though he was a fan as he spoke of the scoreboard that is the heart of an $8 million upgrade of the video and sound in Darrell K Royal-Texas Memorial Stadium.

"I'm strictly part of the production side for The University," Miller said. "I've not been involved in the operation stuff. Our job is to program it, to put as much information as possible on it."

"The scoreboard is another example of DeLoss' (Dodds, men's athletics director) push to excellence," Baker began. "It is another example of his desire for Texas to be the best."

watch the scoreboard construction on time lapse http://mackbrown-texasfootball.com/?change_well_id=9994

[thebluehatman]

Re: Daktronics mention in KC Star Article

http://hosted.ap.org/dynamic/stories...MPLATE=DEFAULT

Shares of Daktronics Inc., a maker of electronic scoreboards and video displays, tumbled nearly 27 percent in Wednesday trading after the company's fiscal first-quarter earnings missed Wall Street estimates.

The Brookings, S.D-based company reported quarterly profit of $5 million, or 12 cents per share, up from $4.6 million, or 11 cents per share, a year ago, but below analysts' 16-cent consensus estimate, according to a poll by Thomson Financial.

Shares were down $8.31, or 27 percent, to $22.66, in midday Nasdaq trading. Over the past year, the stock rose from a 52-week low of $9.96 to hit a high of $31.14 in Tuesday intraday activity, before losing more than a quarter of its value Wednesday.

Jim Morgan, Daktronics' president and chief executive officer, said the company's backlog of orders placed but not yet shipped shot up to a record $123 million, up from $83 million at the end of the previous year's quarter.

Bill Retterath, Daktronics' chief financial officer, said the company experienced lower gross profit margins during the quarter due to difficulties on three large sports projects that led to higher costs. Other factors included higher costs with its expansion, its self-funded insurance plan and student part-time employees working full-time hours during summer months.

[Haldersham]

Re: Daktronics mention in KC Star Article

I dont think there are any reasons to panic if you own Dak Stock. I am not selling. It sounds like its about not being able to book the revenue from orders that are complete or being completed. Its about timing differences between matching revenue and expenses. In fact if I had some idle cash I would use this opportunity to buy more shares. Wall street estimates do not run the company, its the managers, employees who do and if they are hanging in there, I am too. It sounds as though the Brookings plant is at capacity.

[thebluehatman]

Re: Daktronics mention in KC Star Article

time to buy while the stock is low .  on a side note Rounds visits the new video products area to cut a ribbon and "break"ground for our new addition for next year tomorrow.  nothing like breaking ground on a project that is already having major dirtwork broken and a ribbon cutting for something that is already under operation to a degree.

I am looking forward to meeting a former Jackrabbit at work though tomorrow night.

[filbert]

Re: Daktronics mention in KC Star Article

Yup, looks like a buying opportunity to me . . .

[89rabbit]

Re: Daktronics mention in KC Star Article

More Daktronics news, this time from the Register:

http://www.brookingsregister.com/mai...64&page=23

Now you’ll see Daktronics at the pump

BY REGISTER STAFF

Brookings display manufacturer Daktronics Inc. has been making a serious run at getting its displays into commercial situations – in every form from highway billboards to shopping mall walls.
But this week Daktronics revealed one of its boldest moves to date: they’re gonna get you at the gas pump. Dak screens will soon appear at service stations across America, beaming sales messages to consumers as they fill up the family SUV. . . . (read more)


Go State!

[jackrabit1]

Re: Daktronics mention in KC Star Article

I wouldn't put much stock in Dak's drop... the market is so skittish, a janitor can sneeze at the NYSE and the market loses a hundred points!

[filbert]

Re: Daktronics mention in KC Star Article

More Daktronics news, this time from the Register:

http://www.brookingsregister.com/mai...64&page=23

Now you’ll see Daktronics at the pump

BY REGISTER STAFF

Brookings display manufacturer Daktronics Inc. has been making a serious run at getting its displays into commercial situations – in every form from highway billboards to shopping mall walls.
But this week Daktronics revealed one of its boldest moves to date: they’re gonna get you at the gas pump. Dak screens will soon appear at service stations across America, beaming sales messages to consumers as they fill up the family SUV. . . . (read more)


Go State!

I walked into a Dick's Sporting Goods in Independence and was greeted by a life-sized Daktronics scoreboard hanging right in the middle of the store. I think Dak is doing OK.

The big worry I'd have if I owned Dak stock (which, as far as I know, I don't ) is that they'll either not ramp up production fast enough to take care of their backlog (and send customers away to competitors), or (imho the more serious concern) that they'll overshoot on production capacity and wind up with too much capacity and insufficient orders to keep all of the assembly floors busy.

People get paid good money to answer those concerns.

Update: Thingy's Sporting Goods is actually "d i c k ' s" Sporting Goods. Maybe I need to consider changing the @#$@ Censored list.

[bub94]

Re: Daktronics mention in KC Star Article

I wish when we had a press release and we mention how much work we have, we wouldn't list it as "backlog". That actually sounds like we are so far behind but it is actually incorrect. I wouldn't say we are 100% on time with everything, but we do ship the majority of our products on time. Also, some of the "backlog" is for customers who want us to ship in the next quarter. Electronic Assembly is in the process of moving to our new addition. We are in the process of switching over to a lean manufacturing flow line for our process. This has been trying our patience of how we used to build all the displays in the Electonics Assembly area. This did take a little out of our last quarter results. By the time next quarter comes around, we should be back up there.

[Haldersham]

Re: Daktronics mention in KC Star Article

I wish when we had a press release and we mention how much work we have, we wouldn't list it as "backlog".  That actually sounds like we are so far behind but it is actually incorrect.  I wouldn't say we are 100% on time with everything, but we do ship the majority of our products on time.  Also, some of the "backlog" is for customers who want us to ship in the next quarter.  Electronic Assembly is in the process of moving to our new addition.  We are in the process of switching over to a lean manufacturing flow line for our process.  This has been trying our patience of how we used to build all the displays in the Electonics Assembly area.  This did take a little out of our last quarter results.  By the time next quarter comes around, we should be back up there.

Strickly from an accounting point of view, what I am grasping is that the sometimes the point of sale is not complete which would then result in revenue recognition cyle not being complete and therefore understating revenue for the quarter. All the expenses for Dak count as soon as a invoice is booked and a check is sent to the vendor,  or an employee is paid. There would not be any deferred expenses that I can think of but it does result in a bit of a mismatch of revenue and expenses which results in lower gross margin and all the other earnings indicators. And Yikes, the Wall Street guys sell off. They will be buying back again soon.

As you stated the customer sometimes want you to ship the product in the next year or even next quarter and this is not always helpful in revenue recognition. Backlog is kind of a nasty term but it seems to be kind of standard, I dont know if  there is another term that could be used in its place.

I just finished reading in the SDSU Foundation brochure an article about the SDSU scoreboards, which were financed by the Foundation. The way it was explained the participating advertising partners will make a pledge that is spread over 10 years and will repay the foundation. If I am following this correctly, the point of sale for Daktronics would have been when scoreboards were up and running and they received their check from the SDSU foundation.  I suspect many of the other transactions are more involved and unless you have privity to every transaction, its hard to follow. Apparently the Wall Street guys are having that problem too.

I just got my Dakt annual report, so should look at it closer, but as I stated before, this one off quarter does not indicate a trend by any means. I wish I could buy some more stock. I see DAKT bounced back by 35 cents a share today so some one out there is buying.