Daktronics

[89rabbit]

Nice story about Daktronics in the Argus. They talk to Kirk Simet who is their national sales manager. He was a heck of a wrestler at State. I think he is in the SDSU Hall of Fame. Hope the Big D can help State with some new scoreboards/video boards. Anyone heard anything new lately?

http://www.argusleader.com/business/...yfeature.shtml

Daktronics scores big with stadium screens
By MICHAEL HIESTAND
USA Today

published: 5/4/2004

Brookings firm takes spotlight in strong sales

BROOKINGS - Nothing about Daktronics' no-frills industrial park suggests its flamboyant mission. The company, across from the Kum & Go in this town of 18,504, is built on bright lights and firing up emotions.

Kirk Simet, national sales manager, says, "We're in the 'wow' business."

It didn't start that way. Daktronics began in 1968 when Aelred Kurtenbach and Duane Sanders, electrical engineering professors from South Dakota State University, wanted to create jobs so their best students wouldn't have to go out of state to find work. They peddled $5 stock to anybody interested - shares now worth, after splits, about $2,700 - and took years before finding their calling: scoreboards and video screens.

Now those 65,000 boards and screens across America turn sports into sound and light shows. The screens or scoreboards are in stadiums or arenas used by at least 85 pro teams and will be making an eighth appearance in the Olympics this summer in Athens.

Sales are expected to reach $200 million this year, having more than tripled in seven years.

Houston's Toyota Center opened last year with a $6 million Daktronics system that includes a scoreboard needing 19 workers to operate it during games and featuring 13 video screens, some displaying more than 4.3 trillion shades of color.

"The first time we fired it up, it was mind-blowing," says Doug Swan, who directs the center's scoreboard operations. "People are absolutely overwhelmed." . . .

Facts about daktronics

Product: Electronic scoreboards, computer-programmable display systems and large video displays for sport, business and transportation applications.

Location: Brookings.

Founded: 1968.

Employees: 843.

2003 Revenue: $177.76 million.

Competitors: Mitsubishi in Japan, Barco in Belgium

[JACKGUY]

Re: Daktronics

You would think a company that is generating 176 million dollars and has benefited from cheap SDSU labor would step up to the plate and insure it's hometown school had the best scoreboards around. It's my understanding exclusive advertising on the boards is the hang up. I wonder if Daktronics is demanding for a discount on the scoreboards they want exclusivity and no charge for putting there name all over the boards. I hope this gets resolved soon!

[filbert]

Re: Daktronics

Story was also page 1 of sports section in USA Today . . . good press for Dak and for SDSU, any way you cut it.

I'd like to see a sweetheart deal between Dak and State for one of those Jacobs Field scoreboards in Coughlin, plus a mega-scoreboard in Frost, but Dak's always been a frugal outfit. Maybe J.Lohr or 3M or some deep-pocket agricorp can come up with some major scratch to open Daktronics' heart . . .

[jackmd]

Re: Daktronics

You would think a company that is generating 176 million dollars and has benefited from cheap SDSU labor would step up to the plate and insure it's hometown school had the best scoreboards around. It's my understanding exclusive advertising on the boards is the hang up. I wonder if Daktronics is demanding for a discount on the scoreboards they want exclusivity and no charge for putting there name all over the boards. I hope this gets resolved soon!

MY SENTIMENTS EXACTLY. I put in 3 years at Dak while attending SDSU. My starting wage was minimum (about $4.00 at the time) and my top wage wasn't over $6.50. My brother (now an attorney in Des Moines) also put in a couple of years and my youngest brother graduated from SDSU in 2003 and is currently a full time employee at Dak. Granted, the money was nice, the hours were flexible and I appreciated the work, but I know they got the better end of the deal.

Time for Dak to really step-up (I'm sure they already provide a fair amount) and "help" with some state-of-the-art boards throughout campus. Let's start with Frost and go from there (current boards are terrible). They coudl essentially be a beacon for other corporate sponsorship. Heck, we could even name the court, field, whatever after Daktronics (maybe this is going to far).

[Texas_Jacks_Fan]

Re: Daktronics

No, Its not going too far !

[SDSUFAN]

Re: Daktronics

Daktronics did not exist when I was a student so was reluctant to comment on the labor issue here. Those who have and expressed their views have every right to do so. Brookings has quite a legacy for low wages. I washed dishes at Wards Cafe for 5o cents an hour in 1962. No doubt the local wage scale has been a wayout for Dakotronics. As the company prospered it could have done better on labor costs, and what the true history here is not easily documented, but I have heard complaints before so Jackmd and Jackguy are not the only ones that have spoken out on this issue.

That being said, my connection to Daktronics is a stockholder. I bought 100 shares at 6 bucks each just after they went public on the NASDAQ. Got in on two stock splits, but they are restricted from paying cash dividends for a number of years. Its disclosed in their annual report, but the details are missing as how long and why.

So if they are making money and not paying dividends and retaining their profits, the IRS will be uping their ante soon could take a large bite out of Daktronics.

The smart move for Daktronics would be donate all the scoresboads they can to SDSU if it will work taxwise.

I not that sharp on corporate taxation so it would be an option, but so many other angles that have to be considered so dont know. I would hope this option is being looked at.