* Q1 EPS $0.06 vs est. loss $0.04
* Q1 rev down 11 pct at $100.5, beats est. $94.7 mln
* Sees slight sequential increase in Q2 sales
* Shares up 15 pct
Aug 24 Electronic scoreboard and billboard
maker Daktronics Inc (DAKT.O) posted a surprise quarterly
profit, helped by lower expenses and a spurt in orders, and
said the worst of the downturn was behind it, sending its
shares up 15 percent.
The company, which forecast a slight sequential increase in
second quarter sales, also said it had won back a significant
digital billboard order from a "major outdoor advertising
company" during the quarter.
Daktronics, whose main customers are outdoor advertisers
Lamar Advertising Co (LAMR.O) and Clear Channel Outdoor
Holdings Inc (CCO.N), struggled for the most of last year with
falling orders as the credit crisis forced firms to clamp down
on advertising and marketing spend.
The company, which uses LED technology to light up its
scoreboards and signages, said orders for the two most recent
quarters were up from the last year.
The company, however, warned of parts shortages hurting
second-quarter sales and said it expects continued pressure on
gross profit margins given the current pricing environment and
For the May-July quarter, the company posted a net income
of $2.4 million, or 6 cents a share, compared with $1.4
million, or 3 cents a share, last year.
Sales fell 11 percent to $100.5 million. Total operating
expenses dropped 16 percent.
Analysts on average were looking for a loss of 4 cents a
share on revenue of $94.7 million, according to Thomson Reuters
Daktronics shares rose as much as 16 percent to a high of
$9.05 -- their biggest intra-day percentage jump in nearly two
years. They have shed more than 13 percent of their value in
the last 52 weeks.
(Reporting by Saqib Iqbal Ahmed in Bangalore)