Found this article. Interesting that Lamar and Clear Channel talk about hibernation for next two years. Ouch


http://www.argusleader.com/article/20090...

Daktronics cuts 25 jobs
Sioux Falls plant takes a hit with a drop in orders, income
Megan Luther • mmluther@argusleader.com • September 4, 2009

Post a Comment Recommend(1)Print this pageE-mail this articleShare
Del.icio.usFacebookDiggRedditNewsvineBuzz up!TwitterDaktronics is laying off 25 assembly line workers at its digital billboard factory in Sioux Falls.


The news comes little more than a week after the company reported that its net income fell 85 percent during its first fiscal quarter because of a decline in orders and a more competitive marketplace.


Steve Dyer, an analyst with Craig-Hallum Capital Group, said that from a profitability standpoint, the layoffs should have been done a long time ago.


"They have sacrificed profit for their employees and the community," Dyer said. "I think you've seen other companies that have reacted a lot sooner."


Company officials said last week they expect declines during the second and third quarters as well.
"One trend we are seeing in most areas of our business is extremely aggressive pricing at times from some competitors. We believe it is not sustainable but can be extremely disruptive in the short term," Jim Morgan, the company's president and chief executive, stated last week.


Some of those who were laid off did receive severance packages, according to Staci Perry, Daktronics communications manager. She added that future layoffs are not out of the question.


"It really depends on how many orders we book," she said.
According to Dyer, Daktronics' two largest customers, Lamar and Clear Channel, have indicated that they will be in hibernation for the next two years.


During the first quarter, Daktronics recorded net sales of $113.5 million, a 30 percent decrease from the same period the previous year. Net income totaled $1.4 million, compared to $9.7 million during the same period a year ago.
During the first quarter, Morgan also said the company cut about 100 employees, primarily through attrition.


The Sioux Falls plant will continue to employ 150 workers.