BROOKINGS, S.D. (AP) -- Video display maker Daktronics Inc. said Tuesday that its fiscal second-quarter profit fell 43 percent from the same period last year because of warranty and marketing costs.
The company said its net income for the quarter ended Oct. 29 was $4 million, or 9 cents per share, compared to $7 million, or 17 cents per share, during the same period last year. Revenue during the quarter was $135.9 million, up 7 percent from $126.9 million during the prior year period.
Analysts on average expected higher earnings of 13 cents per share, according to a data from FactSet. But Daktronics' revenue was higher than the $128.7 million analysts expected.
Shares of the company fell 32 cents, or 3.4 percent, to $9.17 by mid-afternoon.
Daktronics makes electronic displays, ranging from outdoor scoreboards to large-screen video displays.
CEO Jim Morgan said the company's profit margins were hurt in the second quarter by adjustments to its reserves for preexisting warranty claims and one-time costs associated with introducing new products.
Those costs cut the company's profit margin by more than two percent during the quarter, Morgan said.
Morgan said he expects profit margins to improve during the company's current quarter. He said sales could approach the level of this year's first fiscal quarter, when revenue was $118.7 million.
Analysts were expecting fiscal third-quarter revenue of $109.1 million, according to FactSet.
Daktronics said it had a backlog of orders at the end of the second quarter worth about $136 million, compared to a backlog of about $121 million at the same time last year. The company had a backlog of $154 million at the end of its fiscal first quarter.
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