Daktronics moves to profit for 4th quarter
BROOKINGS (AP) -- Daktronics Inc. posted to a profit for its fiscal fourth quarter, reversing a year-ago loss, as revenue rose for the video display maker.
Its earnings, however, fell far short of market expectations and shares sank in trading Wednesday.
Daktronics, based in Brookings, S.D., earned $1.8 million, or 4 cents per share, for the three months ended April 27. That's compared with a loss of $505,000, or 1 cent per share, in the same quarter last year.
Revenue increased 11 percent to $124.5 million from $112 million.
Analysts were anticipating earnings of 7 cents per share on revenue of $123 million.
Daktronics CEO Jim Morgan said that competition remains intense, but strong demand and a backlog of orders should help the company achieve modest growth in fiscal 2014. The company noted a backlog of $141.3 million at the end of the fourth quarter, versus a backlog of $122.8 million last year.
Morgan said the company should also get a boost from new products and a recent acquisition of Belgium company OPEN Out-of-Home Solutions.
Shares of Daktronics fell 77 cents, or 7 percent, to $10.24 by midday. The company's stock peaked in February at $12.47.