Daktronics, Inc. (NASDAQ: DAKT), a leading designer and manufacturer of dynamic video communication displays, has announced a major leadership transition alongside its fiscal third-quarter results for 2025.
Reece Kurtenbach, who has served as Chairman, President, and CEO, will step down from his roles, transitioning into an advisory position to support the company’s digital transformation efforts. Effective at the close of business on March 5, 2025, Brad Wiemann, the company’s Executive Vice President, will assume the role of Interim CEO. Wiemann, a veteran at Daktronics since 1993, has held multiple leadership positions across manufacturing, engineering, and product development.
Additionally, board member and former Wells Fargo CFO Howard Atkins has been appointed Acting CFO and Chief Transformation Officer. This shift allows Sheila Anderson to focus fully on her role as Chief Data and Analytics Officer. Meanwhile, Andrew Siegel, the current Lead Independent Director, will take over as Chairman of the Board. The Board of Directors has initiated a search for a permanent CEO.
Fiscal Q3 2025 Financial Performance
For the third quarter, which ended on January 25, 2025, Daktronics reported a 12.2% year-over-year decrease in sales, totaling $149.5 million. Gross profit as a percentage of net sales remained stable at 24.6%, compared to 24.5% in the same quarter last year. However, the company posted an operating loss of $3.6 million, compared to an operating income of $8.0 million in Q3 2024. Adjusted operating income, after excluding consultant and advisory expenses, was $1.2 million.
The company reported a net loss of $17.2 million for the quarter, though adjusted net income, which excludes non-cash debt adjustments and consultant-related costs, was $0.5 million. Despite the decline in sales, cash flow from operations remained strong at $12.0 million for the quarter and $74.8 million for the first nine months of the fiscal year. Product and service orders totaled $186.9 million, a 2.7% decrease from Q3 2024, while the order backlog grew to $273.2 million.
Business Outlook and Transformation
The company remains optimistic about the long-term demand for digital display systems, though it acknowledges potential near-term disruptions due to global tariff policies and changes in U.S. federal funding priorities. Daktronics continues its business transformation plan, focusing on increasing profitability, reducing product and structural costs, and advancing its digital transformation initiatives.
Sheila Anderson emphasized the company’s strategic objectives, including growing revenue faster than the addressable market (7-10% annually), expanding operating margins to 10-12%, and achieving a return on capital of 17-20% by fiscal 2028. Immediate operational efficiencies have already been realized, including renegotiating supply agreements and optimizing manufacturing operations.
With a new leadership structure in place, Daktronics aims to strengthen its market leadership position and accelerate commercial growth. The company is also introducing a new management compensation plan designed to attract and retain top talent while aligning with long-term shareholder interests.
“Since its founding over 50 years ago, Daktronics has grown into a global leader in video communication technology,” said Kurtenbach. “With a solid foundation and ongoing transformation initiatives, I am confident the company will continue its trajectory of success.”
As the leadership transition unfolds, the company remains committed to innovation, operational efficiency, and sustained growth in a competitive global market.
By: DNU staff