Earnings
Home›Earnings›Previews›Daktronics to start shipping redesigned outdoor displa…
Daktronics to start shipping redesigned outdoor display products in Q4
The company said it plans to begin shipping the redesigned outdoor display product family in fiscal 2010 fourth quarter, even as it expects backlog to decline near term.
Management at Daktronics said it delivered positive bottom-line results despite declining revenues, attributing the performance to cost-reduction efforts and lean manufacturing over the prior three years, according to a Yahoo Finance earnings call summary.
Daktronics said warranty costs fell by about $2 million versus both the prior quarter and the same period a year earlier, as it also worked to improve after-sales service by consolidating field activities and rolling out new software to streamline processes.
The company is redesigning its entire outdoor display product family to increase manufacturing standardization while keeping customer flexibility. It noted increased international quoting activity over the past six to eight months and cited orders for a shopping mall in Australia and a theater in Paris.
Daktronics projected that product development spending would rise and likely exceed 5% of sales in the short term, capital expenditures would run between $15 million and $17 million for the year, and the effective tax rate would decrease as international income improves, particularly from lower-tax jurisdictions like China. It also said it expects to begin shipping the redesigned products in fiscal 2010 fourth quarter, while backlog is expected to decline near term.