$DAKT reports record Q3 2023 revenue growth of 32.5% YoY
Mar 8th 2023, 2:04 pm
Analyst Summary: Daktronics, Inc. reported its Q3 2023 financial results today ending January 28, 2023. The company’s revenues increased by 32.5% YoY, reaching a record $185 million, improving gross profit margins, operating income, and cash flow. The Chairman, President, and CEO of Daktronics, Reece Kurtenbach, credited the company's success to working through historic demand amid an unprecedented operating environment while carefully aligning production planning, inventory, and labor force to match strong customer demand. Kurtenbach also announced the progress across all initiatives of its liquidity enhancement program, including the company's ability to reduce order cycle times after the supply chain disruptions brought on by the pandemic. As for its outlook, the company expects that the advanced technology and systems it designs, engineers, manufactures and services will grow further long-term, and its increased production capacity, factory automation investments, and reduced supply chain disruptions will benefit its Q4 financial results. Nonetheless, the company warns of caution due to the ever-evolving geopolitical and global economic environment. In conclusion, the company's strategic actions show that it is well-positioned to harness market opportunities, with a robust order pipeline and backlog once normalized inventory levels are reached. Quotes: "I am proud of how our employees delivered for our customers while facing historically high demand and an unprecedented operating environment." - Reece Kurtenbach, Daktronics' Chairman, President, and Chief Executive Officer Forward-Looking Statements: The Company has a robust order pipeline and backlog, and it expects the markets for the company's products to grow over the long term. The company is closely monitoring production capabilities, inflation's impact on material prices and labor, and supply conditions in the ever-evolving geopolitical and global economic environment to ensure quick adjustment of resources and product pricing. The company's Board's independent Strategy and Financing Review Committee is currently working with management to evaluate financing alternatives, although the company's capital position remains a priority.