BENSALEM, Pa., Oct. 24, 2008 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith announces that it is investigating potential claims against Daktronics, Inc. ("Daktronics" or the "Company") (Nasdaq:DAKT) concerning possible securities violations in relation to Daktronics' announcement after the close of trading on April 5, 2007, revising downward its previously issued earnings guidance for the fiscal fourth quarter ending April 28, 2007. The investigation focuses on the timing of sales of significant amounts of personally held Daktronics shares by various insiders of the Company and whether statements previously issued by Daktronics on November 15, 2006 and February 14, 2007 about the Company's business, operations and prospects were false and misleading by failing to disclose or indicate, among other things, that: (1) large orders were being delayed; (2) the Company was unable to control its operating expenses; and (3) the Company was not performing according to internal expectations.
On November 15, 2006, the Company provided full-year net sales guidance of $450 million; thereafter, on February 14, 2007, the Company provided fourth quarter guidance of $106 to $118 million in net sales, with earnings in the range of $0.12 to $0.19 per share.
On April 5, 2007, the Company shocked investors when it revised the Company's fourth quarter guidance down to a range of $101 to $106 million in net sales, with earnings in a range of $0.06 to $0.10 per share. As a result of this news, the Company's stock declined by $5.71 per share, more than 20%, to close on April 9, 2007, at $21.62 per share.
In a press release issued April 5, 2007, the Company explained: "Heading into the fourth quarter, we had anticipated that the order volume earlier in the quarter would be sufficient to achieve our estimated range of sales. However, we were unable to book enough orders earlier in the quarter to generate the sales, which is causing the revision in estimates." The investigation, in part, pertains to the Company's February 14, 2007, statements that were issued weeks into the Company's fiscal fourth quarter, around the same time the Company subsequently stated that it was unable to book the level of orders the Company had anticipated would be necessary to achieve the Company's guidance.
If you purchased shares of Daktronics between November 15, 2006 and April 5, 2007 and would like to learn more about these claims, or if you have information or wish to discuss these matters or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com.