Daktronics Inc., a maker of large video displays and electronic scoreboards, said Tuesday its fiscal second-quarter profit dropped sharply and it said it expects sales to drop more than average in the third quarter.
Net income of $4.8 million, or 12 cents per share, was down 60 percent from $12.2 million, or 30 cents per share, in the same quarter last year.
Revenue for the quarter ended Oct. 31 was $115.4 million, down 32 percent from $169.7 million in the year-ago period.
Analysts surveyed by Thomson Reuters expected earnings of 2 cents per share on revenue of $108.3 million.
"Our second quarter is typically our strongest quarter for revenue and our lightest quarter for orders due to the seasonality of the sports business," said Jim Morgan, president and CEO. "This seasonality, along with the impact of the holiday season, makes the third quarter typically the weakest quarter for revenue."
Daktronics, based in Brookings, S.D., said it expects sales in the third quarter will decline by more than the average of 15 percent due to the level of orders booked in the second quarter and expected bookings early in the third quarter.
"This has been a challenging time as we continue to reduce personnel costs and other discretionary spending," Morgan said.
Much of the company's cost-cutting has been through lower payroll and benefits costs, Morgan said.
Payroll cuts are sustainable, but Daktronics expects benefit costs to increase quarter over quarter, he said.
Shares of Daktronics rose 4 cents to $8.43 in midday trading.