Daktronics F3Q09 (Qtr End 1/31/09) Earnings Call Transcript

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2009-02-24 10:29:11.0

Tags: Revenue, Call Transcript, Quarter, Earnings, Research & Development, Revenue Recognition, Operational Accounting, Business Operations, Financial Services, Finance, Seeking Alpha, Daktronics Inc.

Question-and-Answer Session

Operator

Thank you Mr. Morgan. The question-and-answer session will be conducted electronically. (Operators instruction). And our first question comes from Steve Altebrando with Sidoti & Company. Please go ahead. Your line is open.

Steve Altebrando - Sidoti & Company

Hi, guys. How are you?

William Retterath

Hi Steve, it's good.

Steve Altebrando - Sidoti & Company

I think, it's a previously top-line guidance of 585, I believe it was, is that something that's still reasonable ahead?

William Retterath

Yeah, that's in the ballpark, Steve.

Steve Altebrando - Sidoti & Company

Okay. Do you have number revenue for billboards in the quarter, revenue wise?

William Retterath

Revenue wise was approximately $10 million on billboard.

Steve Altebrando - Sidoti & Company

Okay. And was that sort of a run-off from previous orders or is that?

William Retterath

Yes it was a big set of order, there little less than 4 million for orders. So yes, there was a line-up for bookings in the second quarter.

Steve Altebrando - Sidoti & Company

Okay. And in terms of the margin issue, you spoke of the warranty. Is that something that you think is largely resolved as of the end of the January quarter another -- in other words there are couple 100 basis points impact, how long should we suspect that to continue?

James. Morgan

So, Steve the we're trying to finally quantify that, we've expected, we believe it's a limited scope as we say, up to this quarter we're continuing to evaluate that. So, there could be some more there and we think it's contained.

Steve Altebrando - Sidoti & Company

Okay. And then just a couple quick more, the Jets and Giants. Any color just for modeling purposes in terms of when you'll see revenue recognition, is there a certain quarter where you see a bulk of that?

William Retterath

Well, over the next two quarter, the remaining most of the -- we have about 27 million that's whole left the backlog for that contract. And now it's roughly 10 to 12 million in each of the next two quarters, what's the remaining going into the Q2 of fiscal 2010.

Steve Altebrando - Sidoti & Company

Okay.

James. Morgan

Keep in mind Steve that, that can change the timing on assets, normal in our business. But that's our current plan somewhere around that level.

William Retterath

That might accelerate a little.

Steve Altebrando - Sidoti & Company

 

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