starbuxsux
7年前
$DAKT - Daktronics New Billboard Technology Backed by Improved Support
10:00 AM ET 12/17/19 | GlobeNewswire
Daktronics New Billboard Technology Backed by Improved Support
Features added to industry-standard 400-millimeter module
BROOKINGS, S.D., Dec. 17, 2019 (GLOBE NEWSWIRE) -- Daktronics (NASDAQ-DAKT) of Brookings, South Dakota, announces the DB-6500, the latest addition to their DB-6000 LED digital billboard series. The Out of Home industry-standard 400 by 400-millimeter module features neighborhood-friendly emissions standards, a 10-year brightness guarantee, 12-year parts support and diagnostic information through System Health.
This latest series builds on the most reliable OOH digital billboard to date, Daktronics-backed lifetime image quality, and a host of features that simplify operator experience, now and in the future.
"Sourcing, design and development of the most reliable LED display technology has always been our core focus," said Collin Huber, Daktronics OOH sales manager. "Our latest digital billboard offering outfits display owners with the tested and proven technology to make them successful, with options to complement their various business models, while maintaining good relationships within communities."
Every Daktronics DB-6500 produces directional illumination, producing light out and downward, limiting light toward unintended areas like adjacent neighborhoods. When the situation calls for it, Daktronics even offers site-specific light emissions analysis to determine the brightness of the billboard both horizontally and vertically.
Guaranteed quality
The Daktronics DB-6500 comes with a brightness guarantee, so even after 10 years the display will shine at 5,000 nits. The company's confidence in the quality of its products is also evident in the 12-year parts guarantee.
"Most digital displays can look good for the first few years of consistent use," says Huber, "but at Daktronics, we believe every display should look good for its life. We vet our suppliers very carefully, so we can guarantee access to replacement parts during the billboard's life, providing consistency in brightness and color quality."
Daktronics uses fully sealed components, multiple calibration methods to ensure color consistency and features a factory-installed, integrated SmartLink(TM) controller for redundant communication paths and remote power. Daktronics also tests every component in a state-of-the-art product reliability lab with a thorough, multi-step process.
Diagnostic information
Another option for billboard operators is System Health, an annual subscription that provides diagnostic information about every part of the display hardware from the modules to the computers. It works with any scheduling software and provides diagnostics through one convenient, user-friendly platform called Venus(R) Control Suite.
Huber says it goes beyond the technology in the OOH market. "We understand that choosing a reliable technology partner is part of the upfront decision, and our engineers and reliability experts have that covered. But Daktronics also has OOH experts that can help with everything from permitting and legislation to ad sales strategies and scheduling."
To learn more about the DB-6500 and all the Daktronics LED billboards at www.daktronics.com/OOH.
About Daktronics
Daktronics helps its customers to impact their audiences throughout the world with large-format LED video displays, message displays, scoreboards, digital billboards, audio systems and control systems in sport, business and transportation applications. Founded in 1968 as a USA-based manufacturing company, Daktronics has grown into the world leader in audiovisual systems and implementation with offices around the globe. Discover more at www.daktronics.com.
SAFE HARBOR STATEMENT
Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. These forward-looking statements reflect the Company's expectations or beliefs concerning future events. The Company cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectations, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions and other risks noted in the Company's SEC filings, including its Annual Report on Form 10-K for its 2019 fiscal year. Forward-looking statements are made in the context of information available as of the date stated. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
MEDIA RELATIONS
Joni Schmeichel
OOH Marketing
Tel 605-691-3639
Email Joni.Schmeichel@daktronics.com
> Dow Jones Newswires
December 17, 2019 10:00 ET (15:00 GMT)
chmcnfunds
11年前
Bearish SA article:
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Daktronics: Displaying Signs Of Trouble
Must Read | Sep. 15, 2015 9:44 AM ET | About: Daktronics, Inc. (DAKT)
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Summary
Daktronics (NASDAQ:DAKT) lacks a competitive advantage, this makes it a weak candidate for a long term portfolio.
The company competes in what is becoming a commodity industry with narrowing margins.
Don’t be fooled: this dividend doesn’t look sustainable, and could signal few worthwhile investment opportunities.
The company has significant off balance sheet commitments, and may not have such a pristine financial position.
We believe the consensus is overly optimistic, and there is a greater probability of earnings falling short.
We can all agree that most investors would love to achieve a track record even half as phenomenal as Warren Buffett's. Unfortunately, that is easier said than done. Much can be learned by Mr. Buffett's patient approach, and his disciplined selection of only outstanding companies that can become compounding machines, creating enormous wealth. With that in mind, we believe that Daktronics (NASDAQ:DAKT) is a mediocre company, competing in a commodity industry, and this stock will not generate the returns needed to help your portfolio outperform.
At first glance, Daktronics seems like an investor's dream. The stock yields 4.78% at a P/E of ~23x, and the stock has increased revenues over the last five years. However, when looking more closely, prudent investors will realize that the company lacks many of the essential characteristics of an outstanding common stock.
Company Description
Daktronics is a producer of digital displays used in various public places, such as sports venues, billboards and other advertising displays. The industry demand is cyclical, as well as seasonal. Seasonality is dictated by sports season, when customers may be renovating venues, while cyclicality is dictated by the broader economy, advertising expenditures, and technological developments, which typically leads to display replacement every 8 to 12 years. The company operates in five segments: Live Events, High School Parks and Recreation, Transportation, Commercial and International.
Where's the moat?
Perhaps the most important factor that determines a company's success is the presence of a competitive advantage. Unfortunately, Daktronics lacks this advantage, as evidenced when analyzing sales, earnings and ROE over the last ten years. DAKT essentially sells a low margin, commodity product. Other articles have pointed to sales growth as a sign of prosperity, but a closer look displays a much more troubling situation.
Exhibit 1: Revenue Growth Vs. Net Income Growth
(click to enlarge)
As illustrated above, revenues appear to be cyclical, so much of the growth can also be seen as a return to the top of the cycle. However, digital signage is still in its early stages and there could in fact be a reason to believe in accelerating sales growth. However, this brings us to the most troubling aspect of the DAKT story. Since 2006, revenues have roughly doubled, but earnings have remained flat (barring the 2010 loss).
What does this mean? Well, DAKT is being forced to increase sales volumes simply to maintain profits, as they struggle with declining margins and a downward pressure on prices. We believe that this is primarily driven by a lack of differentiation and moat. A display is a display, and we believe that large buyers (governments for the Transportation segment, and sports teams and stadium owners in the Live Events segment) have sufficient bargaining power to force DAKT to accept lower margin sales, or risk losing out on projects to competitors. Management has admitted to as much in their discussion and analysis to Q2 2015 (Seeking Alpha).
Exhibit 2: Gross Margin, Net Margin, ROE and ROA
(click to enlarge) (click link below for charts/tables)
Analyzing the trend in margins and returns, we see a clear downward trend. Increasing sales activity is actually driving lower marginal returns. This is similar to the PC or television set business, where hardware manufacturers experienced declining returns as penetration increased. While digital signage for commercial use is considered a growth area, we believe that the lionshare of returns will go to companies providing content for these displays, not to hardware manufacturers.
How Safe is the Dividend?
DAKT shareholders are currently enjoying a pretty hefty dividend, yielding 4.78% at the time of writing. In the current interest rate environment, this would appear to be the income-producing stock that yield-hungry investors have been looking for. We don't disagree, on the surface, the yield is very enticing. Though our best investments have come from looking below the surface, and that is where the cracks appear. We take issue with certain areas of the dividend policy. For one, a very high payout ratio makes us wonder if it is even sustainable. Over the last twelve months, the payout ratio has been 108%, and in the last fiscal year it was 85%. The cyclicality of the industry, and the long revenue cycles do not cooperate with such a high payout ratio. We do not feel comfortable when the company has to dig into their cash reserves to satisfy dividend payments. Rather, the company should be protecting cash reserves in order to meet future commitments, or as a buffer during low points in the business cycle.
Furthermore, the high payout ratio makes us wonder if there is room for dividend growth. Remember, the importance is on the sustainability of the dividend. Investors jumping into this high-yield stock may be left unsatisfied when they realize that the cyclicality of the business has really created a rollercoaster ride for the dividend (Nasdaq). Since 2005, the company has shown an inconsistent dividend history; between increases, decreases and special dividends, we do not feel comfortable with the current payout. The income investor wants consistency in the dividend, and Daktronics does not offer that.
Dividend Signalling
At the same time we wonder what signal management is giving by paying out so much cash to shareholders? Over the past few years, management has constantly highlighted that the digital billboard industry is a growth segment, though why haven't they driven more cash into it? Is it because the opportunity is not as viable as it seems, or is management just talking but not acting? We think the former is the case. Why? Well, the company has made acquisitions in the last fiscal year, though both acquisitions were small in size, and in the Transportation and International segments. More specifically, OPEN Out-of-Home Solutions is a European manufacturer of cabinets and street furniture for the third-party advertising market, and Data Display is a European based company focused on the design and manufacture of transportation displays. The former is a vertical acquisition, and while diversifying their operations, it is not capitalizing on their core strengths. The latter is an acquisition in Transportation displays, the most regulated business segment. The company also has "not made pro forma disclosures as the results of its operations are not material to [their] consolidated financial statements" (Annual Report, 2015). In other words, two small acquisitions in non-core or difficult segments, has us wondering if perhaps management may have realized that the industry does not possess the grand opportunities that they speak about, hence the high payout ratio.
Exhibit 3: Payout Ratio
Off-Balance Sheet Financing and Other Commitments
The company's balance sheet is debt-free, though it should be noted that operations in this industry require significant commitments and obligations. These off-balance sheet commitments come in the form of operating leases, purchase obligations, and various business functions. In terms of cash commitments, the company will require a total outflow of 12,985,000, with approx. 95% due within the next 3 years. (Annual Report, 2015)
At the same time, the company also lists "Other commercial commitments", which are made up of: Standby letters of credit ($13.6M), Lines of credit interest ($62.0M), Surety bonds ($42.7M), and Guarantees ($1.1M).
Combining the Cash and Non-cash commitments, the company has obligations of about $70.5M, with the majority due within the next 3 years. Of course, the company does have dry-powder in the form of cash in the bank ($57.3M), and two bank credit lines (total of $75.0), though we highlight this to show that a clean balance sheet does not necessarily mean that the company has no commitments. As conservative investors, we place extra emphasis on off-balance sheet items as they could pose a potential problems in the future. In other words, we look at this situation as though we were buying 100% of the company, we'd need to have the cash ready to satisfy all future obligations, and in such a cyclical industry, a low point in the business cycle that coincides with maturing obligations could cause a cash crunch. Furthermore, the nature of off balance sheet items reduces transparency.
Expectations Analysis
Contrary to popular belief, earnings are irrelevant in the short term, but fundamental in the long run. Rather it is earnings surprises that move stock prices in the short run. Currently, the consensus is pricing DAKT at a forward P/E of 11.47 vs. a trailing P/E of 23.25 (FINVIZ.com). This indicates that the consensus is expecting DAKT to roughly double its EPS. This seems beyond optimistic in our view. Perhaps DAKT could increase earnings, but a double is quite the task. As mentioned earlier, over the last ten years, a near doubling in revenue has barely moved the needle on earnings. Furthermore, in Q1 2016 diluted EPS was down 55% YoY to $0.09 from $0.20, while revenues were down 9.8% YoY to $150.2M from $166.6M.
Given the soft pricing environment, the challenges in project delivery experienced in prior years, margin pressure from buyers, and a prolonged history of soft returns, we believe that there is a higher probability of earnings coming in under consensus. This could cause some short term pain for shareholders. We believe this is a further reason to avoid DAKT.
Conclusion
Despite possible catalysts, like the entrance of an activist or an LBO, or even a strategy overhaul, we believe that the underlying fundamentals are simply mediocre to be part of a long term investor's portfolio. Buying this stock on the hope of a strategic buyer is simply speculation, and not investment. Furthermore, until we see evidence of margin improvement, or development of more unique product or service lines, which could insulate the company from the effects of competition, we fail to see the benefits of buying DAKT. We do not believe that this stock will provide meaningful returns in excess of the market, and so would recommend investors exit this position and seek better alternatives.
Additional disclosure: All financial information was sourced from 10-K and 10-Q reports unless otherwise stated. When making an investment decision always perform your due diligence, and consider suitability.
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http://seekingalpha.com/article/3510886-daktronics-displaying-signs-of-trouble
DAKT
chmcnfunds
11年前
4 Potentially Undervalued Stocks to Take Advantage of the Sell-Off
By Joel Anderson September 3, 2015 7:09AM
Well, it’s been a long time coming, but we appear to have our correction. After a lengthy bull market, we have a sharp, distinct pull back that has brought things down from the clouds. However, despite the doom and gloom coverage that seems to be flowing in from major media outlets that usually can’t muster much more market coverage than a daily check-in with the world’s worst stock index, there’s plenty of reason to believe that this won’t necessarily extend into a long-term bear market. After five years of massive gains, a pullback is probably a pretty normal, healthy occurrence.
That said, to quote the shrewdest of investors, Warren Buffett, investors should be “greedy when others are fearful.” In the event that this is just a correction, that would make the present an ideal opportunity to buy in and get the best price possible.
Push comes to shove, grabbing good stocks when they’ve been beaten down is a strategy that tends to work out in the long run.
Finding the Value Stocks Falling Through the Cracks
It should also be noted before any suggestion to buy recently falling stocks, there’s a real danger to value shopping. The phrase “catch a falling knife” is frequently used to caution against buying stocks just because they’re cheap. The harsh truth is that some stocks are bad at any price, and letting yourself get drawn in by a low one is an easy mistake to make. Or, to quote Mr. Buffett again, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
That said, a correction like the one we’ve just observed is bound to create opportunities. With the entire market headed downward lock-step, it stands to reason that at least some of the stocks losing ground are only doing so as part of the sell-off and not solely because of issues with the company. Which is, of course, not to say that there's no important issues these companies are grappling with. They wouldn't be seeing shares get beaten down if there was absolutely nothing. It's simply to suggest that the risk-off atmosphere is creating a sell-off that's far larger than those issues might warrant.
So, we’re going to take a look at four small-cap companies that are currently oversold based on their technical metrics, while also getting decent to good marks from analyst coverage. Whether they’re a wonderful company or not is up to you, but the fact is, they’ve gotten hit harder than most in recent weeks, and as markets start to bounce back, they should be well-positioned to benefit.
Daktronics ($DAKT)
Daktronics builds a variety of electronic display systems, including scoreboards, for markets in North America. The company’s 2015 has seen the stock decline over 30% with most of that coming in two big chunks following earnings reports in late February and then again this week.
Daktronics is crashing due to a big miss on revenue in its most recent report, and the company continues to struggle to improve margins in a competitive market.
However, despite dark times, there’s reason to believe this stock could be ready to bounce back. Revenue may have missed recently, but it has posted gains steadily for years. Projections for earnings next year are strong, with a PEG of 0.89, Forward P/E of 11.25, and a P/S ratio of 0.60. The technical data also indicates a stock ready to run, with a 14-day RSI of 26.45 and a price that spent most of August beneath its bottom Bollinger Band.
____________________________________________
- See more at: http://www.equities.com/editors-desk/investing-strategies/technical-analysis/4-potentially-undervalued-stocks-to-take-advantage-of-the-sell-off#sthash.xb0Gwd55.dpuf
DAKT
chmcnfunds
11年前
Daktronics Introduces Revolutionary Digital Billboard Technology
By GlobeNewswire, September 02, 2015, 11:00:00 AM EDT
Building on Its Feature-Rich Digital Billboard Solution, the Company Has Incorporated an LED for the Industry, a New Control Solution and More
BROOKINGS, S.D., Sept. 2, 2015 (GLOBE NEWSWIRE) --
Daktronics (NASDAQ:DAKT) of Brookings, South Dakota, announces the latest advancement in digital billboard technology, the DB-5000 series. This innovative series sets a new image quality standard, couples it with industry-leading performance and reliability, all while lowering overall cost of ownership. The DB-5000 comes paired with Daktronics new, cutting-edge control solution for out of home (OOH) advertising, the Venus® Control Suite.
Daktronics industry experience and close vendor relationships brings a groundbreaking advancement in digital billboard technology. By collaborating with the leading manufacturer of LEDs, Daktronics new DB-5000 incorporates an LED for the industry that optimizes light output and precisely targets viewers, allowing them to experience advertising the way it was intended.
"Delivering designs that incorporate our customer's feedback and the latest technology has always been our development focus," said Lori Sieler, product manager at Daktronics. "The DB-5000 series leverages new LEDs that build on our commitment to deliver the highest image quality and display uniformity."
Daktronics digital billboard customers can expect an increase in display contrast, whiter whites, noticeably enhanced images, messages that "pop" and reduced power consumption.
The success of digital billboards is being recognized all around the world. A recent Nielsen study shows that 75 percent of travelers have noticed a digital billboard in the past month and that OOH spending increased by 5.1 percent in 2014.
"You don't see a major roadway without a display anymore," said Collin Huber, digital billboard sales manager at Daktronics. "Looking better than the competition increases advertising sales and profitability."
DB-5000 features include:
An LED for the industry
Cloud managed networking and security
Browser-based software
Front and rear billboard access
Integrated SmartLinkTM remote power control
Three proprietary methods of calibration
The new control solution for the DB-5000, the Venus Control Suite, delivers an all-in-one, easy-to-use business solution for OOH operators. Designed for mobile use, this control solution helps increase revenue with access to Daktronics exclusive scheduling model. Venus display management controls digital billboards, regardless of manufacturer, through a secure, web-based experience that allows users to operate from anywhere, on any device.
Venus features include:
Designed for mobile
Drag-and-drop scheduling
Live display views
Playlists for every occasion
"Building on years of customer feedback, we researched and designed a control solution that is tailored to the OOH user," said Jessie Koch, Daktronics product manager.
A number of Daktronics customers received a sneak peak of Venus Control Suite before launch.
"Venus Control Suite has everything a digital billboard operator needs to do their job," said Aaron Wyant, Scheduler for O2 Media. "It is intuitive and straightforward, from setting up clients, uploading content to auto scaling and resizing content in the correct aspect ratio. Venus saves me time, and I use it on the go, from anywhere, on my mobile devices."
Daktronics offers a cost-effective digital billboard solution that helps industry veterans grow their digital inventory and new entrants go digital. Find out more about the DB-5000 series and Venus Control Suite here http://www.daktronics.com/billboards
About Daktronics
Daktronics helps its customers to impact their audiences throughout the world with large-format LED video displays, message displays, scoreboards, digital billboards and control systems in sport, business and transportation applications. Founded in 1968 as a USA-based manufacturing company, Daktronics has grown into the world leader in audio-visual systems and implementation with offices around the globe. Discover more at www.daktronics.com.
SAFE HARBOR STATEMENT
Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and is intended to enjoy the protection of that Act. These forward-looking statements reflect the Company's expectations or beliefs concerning future events. The Company cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectations, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions and other risks noted in the Company's SEC filings, including its Annual Report on Form 10-K for its 2015 fiscal year. Forward-looking statements are made in the context of information available as of the date stated. The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
CONTACT: MEDIA RELATIONS
Joni Schmeichel
OOH Marketing
Tel 605-692-0200
Email joni.schmeichel@daktronics.com
Source: Daktronics
Read more: http://www.nasdaq.com/press-release/daktronics-introduces-revolutionary-digital-billboard-technology-20150902-00693#ixzz3khEzXpPU
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