May 14, 2020

Brookings-based Daktronics Inc. has cut 100 positions in anticipation of COVID-19 continuing to disrupt the business.

“This represents less than 5  percent of our workforce and most of these people held professional jobs in South Dakota. We regret the effect our actions will have on each person leaving Daktronics,” the company said in a statement.

“Predicting the future is always difficult and especially so in times of COVID-19. However, we are able to better grasp the impacts of this crisis on different areas of our business and are now anticipating some disruption will exist through the summer and, in some segments, into 2020 and beyond.”

COVID-19 has created disruptions since its initial outbreak, first impacting Daktronics’ China operations in February, the company said. In April, its Ireland and Minnesota production facilities suspended work for two weeks. The China facility briefly closed but is now open. Daktronics also has a production plant in Sioux Falls.

Some customers have continued to place orders, while others delayed purchases, the company said in an April statement. The supply chain team is watching for potential short supply situations and shipping disruptions and, if necessary, is using alternative sources and shipping methods.

Daktronics is the world’s largest supplier of large-screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems. Its products are found in places such as stadiums, arenas, shopping malls, Times Square and mass transportation centers.

Daktronics also announced in April that it is preserving liquidity by drawing down its existing line of credit and pursuing other sources of financing, reducing investments in capital assets, reducing executive pay and board member compensation and instituting initiatives to reduce other costs in the business.

The board of directors voted to suspend stock repurchases under its share repurchase program and to suspend dividends for the foreseeable future.

“The COVID-19 situation is dynamic, and we will continue monitoring and adapting as necessary,” the company said. “The core drivers of our business remain intact, and we expect growth again in the future. Through all of this, we will continue to serve our customers and focus on developing a stronger organization.”