Tallahassee, FL 2/21/12 (StreetBeat) -- Electronic scoreboard and billboard maker Daktronics Inc (Nasdaq: DAKT) posted a profit that missed estimates for a third straight quarter, and warned of a decline in first-quarter sales as it failed to book enough business.The company typically sees weak profits in its third quarter ending December but the wide margin of the earnings miss surprised investors, sending its shares down 10 percent in morning trade.
The company earned $1.7 million, or 4 cents per share, for the quarter, while analysts were looking for 7 cents a share.
"As a result of the lower order volume in the third quarter ... net sales could decline in the fourth quarter of fiscal 2012 compared to the third quarter of fiscal 2012, which would put pressure on our gross profit margins," said Chief Executive Jim Morgan.
The company said it expects fourth-quarter orders to be up on a year-over-year basis, and it would continue to cut costs to improve gross margins.
Operating expenses rose 14 percent in the third quarter.
Net income fell to $1.7 million, or 4 cents per share, from $1.8 million, or 4 cents per share, a year ago.
Net sales for the quarter rose to $123 million from $100 million a year ago.
Analysts, on average, were looking for third-quarter earnings of 7 cents per share on revenue of $117.4 million, according to Thomson Reuters I/B/E/S.
Shares of the company, were down more than a dollar at $10.17 on the Nasdaq.
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