Daktronics Clocks 39% Sales Growth In Q4; Warns On Volatile Supply Chain, Labor Conditions

Daktronics, Inc. DAKT reported fourth-quarter FY22 net sales growth of 38.8% year-over-year to $162.2 million, beating the consensus of $146.10 million. Orders for the quarter increased 67% Y/Y.
The gross margin was 18.5% for Q4 compared to 23.6% a year earlier, and the operating margin was breakeven, compared to 1% for 4Q21.
EPS loss was $(0.02) compared to $0.01 in 4Q21.
Product order backlog was $472 million, driven by order volume of $846.1 million and softer conversion to sales due to supply chain challenges.
DAKT held cash and equivalents at the end of FY22 of $22 million. Net cash used in operating activities for FY22 totaled $(27.04) million, compared to cash generated $66.21 million a year ago.
"We expect dynamic and volatile supply chain and labor conditions to persist at least through the calendar year. As the environment evolves, we plan to adjust and adapt our pricing and our production schedules to best serve our customers," said Reece Kurtenbach, chairman, president, and CEO.
Price Action: DAKT shares are trading lower by 2.69% at $3.43 during the market session on Wednesday.