The display maker offset revenue declines with lower warranty expenses and operational efficiencies in the first quarter.
Daktronics reported a first-quarter profit improvement despite lower revenues, driven by a $2 million reduction in warranty costs compared to both the prior quarter and Q1 2009. Management credited lean manufacturing and cost controls for the bottom-line resilience amid competitive pricing pressures.
International quoting activity rose over the past six to eight months, with recent orders secured for projects in Australia and France. The company expects to begin shipping redesigned outdoor display products in Q4 2010, following a strategic product family overhaul.
Competitors’ aggressive pricing was noted as disruptive but unsustainable, while after-sales service improvements stemmed from field activity consolidation and new software implementations.