Daktronics Inc. (NASDAQ:DAKT) Q3 2015 Earnings Conference Call - Final Transcript

Feb 24, 2015 • 11:00 am ET


Daktronics Inc. (NASDAQ:DAKT) Q3 2015 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Daktronics Fiscal Year 2015 Third Quarter Earnings Results Conference Call. As a reminder, this call is being recorded today Tuesday, February the 24th 2015, and is available on the company's website at www.daktronics.com. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]

I would now like to turn the conference over to Ms. Sheila Anderson, Chief Financial Officer for Daktronics for some introductory remarks. Please go ahead, Sheila.

Sheila Anderson

Thank you, operator. Good morning, everyone. Thank you for participating in our third quarter earnings conference call. I'd like to review your disclosure cautioning investors and participants that in addition to statements of historical facts, we will be discussing forward-looking statements reflecting our expectations and plans about future financial performance and future business opportunities. All forward-looking statements involve risks and uncertainties which may be out of our control and may cause actual results to differ materially. Such risks include changes in economic conditions, changes in the competitive and market landscape, management growth, timing and magnitude of future contracts, fluctuations of margins, the introduction of new products and technology and other important factors as noted and detailed in our 10-K and 10-Q SEC filings. Fiscal 2015 is the 53-week year and fiscal 2014 was the 52-week year. The extra week of fiscal 2015, so within that first quarter resulting in a 14-week quarter versus 13-week quarter comparison. Your date figures for the third quarter include 40- weeks of business versus 39-weeks, year-to-date comparison.

At this time, I would like to introduce Reece Kurtenbach, our Chairman, President and CEO for a few comments.

Reece Kurtenbach

Thank you, Sheila. Good morning, everyone on the line. As discussed in the release, the third quarter of the fiscal years is historically a slower order and profitability due to the seasonal nature of many of our businesses. While we plan for lower revenue and profitability in our Q3, it is not our intention to have an operating loss for the quarter, and obviously we're not pleased with these results. We do believe that our overall our businesses growing and in the quarter we continued our work to position Daktronics for ongoing success.

In response to our Q2, we enhanced our forecasting tools and planning structures and made progress to be better positioned to match our demand to our capacity to optimize revenue and profit levels during our peak seasons. We also lay the foundation to increase our overall module production capacity and this word will carry through Q4 to begin operation early in our Q1. We believe these two changes as well as other improvements will set us up for future success.

Finally, while the projects did not book in the third quarter, we have been awarded two significant orders and are working through the detailed contract negotiation and project schedules. We expect both of work orders during our fourth quarter. The first project is for the Atlanta Falcons. We were selected to provide a