Daktronics (DAKT), a manufacturer of various electronic display systems, has reported a 52.88 percent jump in profit for the quarter ended Aug. 02, 2014, driven by growth in sales and expansion in margins.
The company earned $8.74 million or $0.20 a share in the first-quarter compared with $5.72 million or $0.13 a share a year ago. Analysts on average had predicted net income of $0.19 a share.
Revenue during the first-quarter grew 20.11 percent to $166.62 million from $138.72 million in the last year period.
Gross margin expanded by 46 basis points over the last year period to 26.05 percent. Total expenses as a percentage of revenues decreased to 91.83 percent from 93.80 percent in the same period last year. That has resulted in improvement of 198 basis points in operating margins to 8.17 percent.
The company posted operating income of $13.62 million, compared with $8.60 million in the previous year period.
''Our first quarter is historically one of the busiest quarters as we produce, deliver, and install for outdoor sports venues and other outdoor systems during the summer construction season. This year was no exception. Significant work was performed during the quarter for sports related projects including installations for the Jacksonville Jaguars, Cleveland Browns, and University of Arizona, Phoenix," said Reece Kurtenbach, president and chief executive officer.
Cash Position
As on Aug. 02, 2014, the company's cash balance stood at $61.14 million, up 176.38 percent or $39.02 million from Jul. 27, 2013.
Working Capital
Daktronics has witnessed an increase in the working capital over the last one year. The company's working capital stood at $145.75 million as at Aug. 02, 2014, up $19.95 million or 15.86 percent from $125.80 million on Jul. 27, 2013. It registered an increase in current ratio to 2.02 as at Aug. 02, 2014 from 1.99 on Jul. 27, 2013.
Shares of the company gained $1.10 or 9.17 percent to settle at $13.09 on Tuesday.