Daktronics, Inc. Announces 2023 Fiscal Second Quarter Results, Details Liquidity Enhancement Program

About this update from Daktronics, Inc.

[{"type":"text","content":"BROOKINGS, S.D., Dec. 12, 2022 (GLOBE NEWSWIRE) -- Daktronics, Inc. (NASDAQ - DAKT) today reported results for fiscal 2023 second quarter which ended October 29, 2022 and provided details on the initiatives underway to improve liquidity and cash generation as the company emerges from pandemic-related conditions that led to historic inventory buildup. Q2 FY2023 financial highlights: Net sales of $187.4 million, a 14.0 percent and 9.0 percent increase from the second quarter of fiscal 2022 and the first quarter of fiscal 2023, respectivelyOrders(1) of $182.8 million, a 11.7 percent increase from the second quarter of fiscal 2022Product order backlog remains at historically high levels of $463.1 million(1) Operating income of $1.5 million and net loss in large part due to a $13.0 million non-cash deferred tax asset valuation adjustment Reece Kurtenbach, chairman, president, and chief executive officer stated, \"We achieved sales increases even though our capacity was constrained due to significant and unusual part shortages, a challenging labor environment, operating disruptions from COVID-19 related absences, and the first quarter COVID-19 mandated shutdown of our Shanghai production facilities. I am proud of our team's ability to increase our sales output during the second quarter and through the first half of the year under these conditions. \"The unprecedented and persistent supply chain conditions caused lower gross profits through fulfillment as well as higher costs for materials, labor, and freight that were not all able to be passed on to our customers. We made the strategic decision to keep delivery windows for our customers as close as possible to the originally committed date as supply chain and manufacturing constraints would allow, even though this sometimes added additional costs to fulfill projects. To address supply chain volatility, we aggressively secured inventory to fulfill orders for our customers, consuming cash while increasing predictability of operations. We did all this because Daktronics has distinguished itself for 54 years by meeting our customer commitments on delivery dates, product quality and customer support. Our people displayed enormous strength, adaptability, and resiliency over the past year and a half to maintain that reputation, securing supplies of critical components and responding to custo...

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