Daktronics Announces Manufacturing Network Optimization Designed To Reduce Structural Costs, To Deliver $18M In Annualized Pre-Tax Savings By FY28, $15.8M In One-Time Charges

Actions expected to generate annualized incremental pre-tax savings of over $18.0 million at full run rate reached during fiscal 2028Company expects $15.8 million of non-recurring pre-tax restructuring and related charges during implementation of which approximately $7.0 million will impact Q2 fiscal 2027BROOKINGS, S.D., Oct. 14, 2026 (GLOBE NEWSWIRE) -- Daktronics, Inc. (NASDAQ:DAKT) ("Daktronics" or the "Company"), a recognized industry leader in digital display and control system technology, today announced manufacturing network optimization designed to reduce structural costs, improve factory utilization and manufacturing flexibility, and focus capital and resources on markets and technologies offering attractive long-term returns. The Company is taking these actions to execute the strategic growth and operational excellence initiatives described at its April 9, 2026 Investor Day and reaffirmed in its subsequent investor communications. Its announcement today also includes the financial impact of these actions on the current quarter, Q2 fiscal 2027 results and anticipated benefits to future quarterly and annual reporting periods.Highlights include:Determination to exit the highly customized portions of the international transportation business, reorganize APAC operations to better serve customer needs, and plans to announce a new international leader.Manufacturing network optimization actions including the phased-exit of operations from the Ireland manufacturing facility and realignment of production capacity among other manufacturing locations to efficiently and optimally serve customers.Manage micro-LED development costs while continuing to explore avenues for competitive advantage and commercial success.During the implementation period expected over the next six quarters, savings are expected to be $5.0 million during the second half of fiscal 2027 and $16.0 million during fiscal 2028. When implementation is completed, expected by mid-fiscal 2028, the Company expects incremental run rate expense savings of $4.5 million quarterly, or $18.0 million annualized. Please see attached table for estimated costs and expense savings by quarter for the second half of fiscal 2027 and for fiscal 2028.All of these components were identified in the Company’s multi-year transformation plan and are consistent with the Company’s stated business transformation fiscal 2028 targets of 7-10% revenue CAGR, 10-12% operating margin, and 17-20% ROIC.