Daktronics Inc. (DAKT)

[starbuxsux]

Daktronics misses by $0.04, beats on revs; guides Q4 rev

7:14 AM ET 11/22/11 | Briefing.com

Reports Q2 (Oct) earnings of $0.09 per share, $0.04 worse than the Capital IQ Consensus Estimate of $0.13; revenues rose 7.1% year/year to $135.9 mln vs the $129.12 mln consensus. Co issues upside guidance for Q3, sees Q3 revs approaching $118.7 mln vs. $109.67 mln Capital IQ Consensus Estimate. "Given the positive top line performance, we were disappointed in the gross margin performance. The good news in this regard is that much of the underperformance was due to one-time costs. These one-time costs included adjustments to reserves for preexisting warranty claims, increased cost estimates on an international project, and new product introduction costs. The impact of these and other one-time items reduced our gross profit percentage by more than two percentage points... We were pleased to see growth in our backlog as we enter what is typically the slowest quarter of our fiscal year. With the strong backlog and despite the fact we have fewer work days in the quarter with the holidays, we could see net sales in the third quarter approaching to the level of the first quarter of fiscal 2012. Taking into account the non-recurring items for this quarter, we also expect that gross profit margins will improve in the third quarter of fiscal 2012."