DAKTRONICS INC /SD/
10-Q, 2000-12-12
MISCELLANEOUS MANUFACTURING INDUSTRIES
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================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   -----------

                                    FORM 10-Q

               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                 For the quarterly period ended October 28, 2000
                                                ----------------

                             Commission file number
                                     0-23246

                                DAKTRONICS, INC.
             (Exact name of registrant as specified in its charter)

         South Dakota                                     46-0306862
         ------------                                     ----------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
 incorporation of organization)


                       331 32nd Avenue Brookings, SD 57006
                       -----------------------------------
      (Address of principal executive offices)            (Zip Code)


        Registrant's telephone number, including area code (605) 697-4000
                                                           --------------


           ----------------------------------------------------------
    (Former name, address, and/or fiscal year, if changed since last report)

         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes _X_ No ___

         Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.


                    Class                 Outstanding at November 30, 2000
                    -----                 --------------------------------
         Common Stock, No par value                   8,935,079

================================================================================

<PAGE>


                        Daktronics, Inc. and Subsidiaries

                                Table of Contents


Part I. Financial Information                                            Page(s)
                                                                         -------

         Item 1. Financial Statements
                 Consolidated Balance Sheets -
                 October 28, 2000 and April 29, 2000.................... 3 - 4

                 Consolidated Statements of Income -
                 Three months and six months ended
                 October 28, 2000 and October 30, 1999.................. 5

                 Consolidated Statements of Cash Flows -
                 Six months ended October 28, 2000 and
                 October 30, 1999....................................... 6

                 Notes to Consolidated Financial Statements............. 7-8

         Item 2. Management's Discussion and Analysis of
                  Financial Condition and Results of Operations......... 9-12

         Item 3. Quantitative and Qualitative Disclosures
                  about Market Risk..................................... 13

Part II. Other Information

         Item 4. Submission of matters to a Vote of Security Holders.... 13

         Item 6. Exhibits and Reports on Form 8-K....................... 13

Signatures


                                        2
<PAGE>


Part I.
Item 1.

                        DAKTRONICS, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                             (Dollars in thousands)

<TABLE>
<CAPTION>
                                                         OCTOBER 28,
                                                            2000              APRIL 29,
ASSETS                                                   (UNAUDITED)            2000
                                                         -----------         ----------
<S>                                                      <C>                 <C>
CURRENT ASSETS
  Cash and cash equivalents.........................     $       357         $    1,217
  Accounts receivable less allowance
    for doubtful accounts of $202 at
    October 28, 2000 and $232 at April 29, 2000.....          27,314             23,562
  Current maturities of long-term
    receivables.....................................           2,006              1,541
  Inventories.......................................          19,728             13,849
  Costs and estimated earnings in
    excess of billings on uncompleted
    contracts.......................................           7,454              5,177
  Prepaid expenses and other........................             331                451
  Income taxes receivable...........................              --                647
  Deferred income taxes.............................           1,418              1,418
                                                         -----------         ----------
    Total current assets............................          58,608             47,862
                                                         -----------         ----------
LONG-TERM RECEIVABLES
AND OTHER ASSETS
  Advertising rights................................           1,444                824
  Long-term receivables,
    less current maturities.........................           5,322              6,081
  Intangible and other assets.......................           1,306                850
                                                         -----------         ----------
                                                               8,072              7,755
                                                         -----------         ----------
PROPERTY AND EQUIPMENT,
  at cost
    Land............................................             545                528
    Buildings.......................................           8,690              8,008
    Machinery and equipment.........................          18,499             16,372
    Office furniture and equipment..................           5,614              4,258
    Transportation equipment........................           1,569                970
                                                         -----------         ----------
                                                              34,917             30,136
  Less accumulated depreciation.....................          14,919             13,346
                                                         -----------         ----------
                                                              19,998             16,790
                                                         -----------         ----------
                                                         $    86,678         $   72,407
                                                         ===========         ==========
</TABLE>


The accompanying notes are an integral part of these Consolidated Financial
Statements.


                                        3
<PAGE>


                        DAKTRONICS, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS (CONTINUED)
                  (Dollars in thousands, except per share data)

<TABLE>
<CAPTION>
                                                         OCTOBER 28,
                                                            2000              APRIL 29,
LIABILITIES AND SHAREHOLDERS' EQUITY                     (UNAUDITED)            2000
                                                         -----------         ----------
<S>                                                      <C>                 <C>
CURRENT LIABILITIES
  Note payable, bank................................     $    10,113         $    7,202
  Current maturities of
    long-term debt..................................           2,956              2,349
  Accounts payable..................................           9,748              7,327
  Customer deposits.................................           1,805              1,721
  Accrued expenses..................................           6,519              5,521
  Billings in excess of costs and
    estimated earnings on uncompleted contracts.....           3,400              3,079
  Income taxes payable..............................           1,111                 --
                                                         -----------         ----------
    Total current liabilities.......................          35,652             27,199
                                                         -----------         ----------

LONG-TERM DEBT
  less current maturities...........................           7,784              7,893

DEFERRED INCOME.....................................             293                312

DEFERRED INCOME TAXES...............................             772                772

SHAREHOLDERS' EQUITY
  Common stock, no par value
    Authorized 30,000,000 shares
    Issued October 28, 2000 8,931,799 shares;
    April 29, 2000 8,873,542 shares.................          12,629             12,232
  Additional paid-in capital........................              93                 93
  Retained earnings.................................          29,464             23,915
                                                         -----------         ----------
                                                              42,186             36,240
Less:
  Cost of 9,840 treasury shares.....................              (9)                (9)
                                                         -----------         ----------
                                                              42,177             36,231
                                                         -----------         ----------
                                                         $    86,678         $   72,407
                                                         ===========         ==========
</TABLE>


The accompanying notes are an integral part of these Consolidated Financial
Statements.


                                        4
<PAGE>


                        DAKTRONICS, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
             (Dollars in thousands, except earnings per share data)
                                   (unaudited)

<TABLE>
<CAPTION>
                                                     THREE MONTHS ENDED                SIX MONTHS ENDED
                                                     ------------------                ----------------
                                                OCTOBER 28,      OCTOBER 30,      OCTOBER 28,      OCTOBER 30,
                                                   2000             1999             2000             1999
                                                (13 WEEKS)       (13 WEEKS)       (26 WEEKS)       (26 WEEKS)
                                               ------------     ------------     ------------     ------------
<S>                                            <C>              <C>              <C>              <C>
Net sales .................................    $     42,114     $     37,127     $     76,650     $     68,594
Cost of goods sold ........................          29,306           27,380           53,517           50,613
                                               ------------     ------------     ------------     ------------
        Gross profit ......................          12,808            9,747           23,133           17,981
                                               ------------     ------------     ------------     ------------
Operating expenses:
    Selling ...............................           4,462            3,740            8,923            7,013
    General and administrative ............           1,413            1,182            2,625            2,095
    Product design and development ........           1,187              971            2,491            1,986
                                               ------------     ------------     ------------     ------------
                                                      7,062            5,893           14,039           11,094
                                               ------------     ------------     ------------     ------------
        Operating income ..................           5,746            3,854            9,094            6,887
Nonoperating income (expense):
    Interest income .......................             166              192              362              283
    Interest expense ......................            (293)            (305)            (579)            (569)
    Other income, net .....................             142              194              372              300
                                               ------------     ------------     ------------     ------------
        Income before income taxes ........           5,761            3,935            9,249            6,901
Income tax expense ........................           2,334            1,592            3,700            2,791
                                               ------------     ------------     ------------     ------------
        Net income ........................    $      3,427     $      2,343     $      5,549     $      4,110
                                               ============     ============     ============     ============

Earnings per share (basic) ................    $        .38     $        .27     $        .62     $        .47
                                               ============     ============     ============     ============
Earnings per share (diluted) ..............    $        .36     $        .26     $        .59     $        .45
                                               ============     ============     ============     ============
</TABLE>


The accompanying notes are an integral part of these Consolidated Financial
Statements.


                                        5
<PAGE>


                        DAKTRONICS, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                          SIX MONTHS ENDED
                                                                          ----------------
                                                                     OCTOBER 28,      OCTOBER 30,
                                                                        2000             1999
                                                                     (26 WEEKS)       (26 WEEKS)
                                                                    ------------     ------------
<S>                                                                 <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income ...................................................    $      5,549     $      4,110
  Adjustments to reconcile net income to
    net cash provided by (used in) operating activities:
      Depreciation .............................................           1,573            1,121
      Amortization .............................................             142              155
      Provision for doubtful accounts ..........................              28                8
      Change in operating assets and
        liabilities ............................................          (6,478)          (9,493)
                                                                    ------------     ------------
          Net cash provided by (used in)
            operating activities ...............................             814           (4,099)
                                                                    ------------     ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of property and equipment ...........................          (4,781)          (3,633)
  Other, net ...................................................            (469)             (92)
                                                                    ------------     ------------
  Net cash (used in)
      investing activities .....................................          (5,250)          (3,725)
                                                                    ------------     ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Net borrowings on notes payable ..............................           2,911            7,661
  Proceeds from lease ..........................................              --              390
  Proceeds from long-term debt .................................           1,659               --
  Principal payments on
    long-term debt .............................................          (1,161)            (948)
  Proceeds from exercise of stock options ......................             167               62
                                                                    ------------     ------------
  Net cash provided by
    financing activities .......................................           3,576            7,165
                                                                    ------------     ------------
  (Decrease) in cash and cash equivalents ......................            (860)            (659)
Cash and cash equivalents:
  Beginning ....................................................           1,217            1,050
                                                                    ------------     ------------
  Ending .......................................................    $        357     $        391
                                                                    ============     ============
</TABLE>


The accompanying notes are an integral part of these Consolidated Financial
Statements.


                                        6
<PAGE>


                        DAKTRONICS, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                  (Dollars in thousands, except per share data)
                                   (unaudited)


NOTE A.  GENERAL
         The consolidated financial statements include the accounts of
Daktronics, Inc. and its subsidiaries (Company). Intercompany accounts and
transactions have been eliminated in consolidation.

         The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with instructions for Form 10-Q and,
accordingly, do not include all information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, the unaudited financial statements contain all adjustments,
consisting of normal recurring accruals, necessary to present fairly the
consolidated financial position of the Company as of October 28, 2000 and the
results of its operations and cash flows for the six months ended October 28,
2000 and October 30, 1999. These results may not be indicative of the results to
be expected for the full fiscal year.

         These statements should be read in conjunction with the financial
statements and footnotes included in the Company's Annual Report on Form 10-K
for the year ended April 29, 2000, previously filed with the Commission.

         Earnings per common share has been computed on the basis of the
weighted-average number of common shares outstanding during each period
presented. A reconciliation of the income and common stock share amounts used in
the calculation of basic and diluted earnings per share (EPS) for the six months
ended October 28, 2000 and October 30, 1999 follows:

                                                                          Per
                                                   Net                   Share
                                                 Income     Shares      Amount
                                                --------   ---------   --------
For the six months ended October 28, 2000:
         Basic EPS ..........................   $  5,549   8,887,870   $   0.62
         Effect of dilutive securities:
           Exercise of stock options ........         --     474,546       0.03
                                                --------   ---------   --------
         Diluted EPS ........................   $  5,549   9,362,416   $   0.59
                                                ========   =========   ========

For the six months ended October 30, 1999:
         Basic EPS ..........................   $  4,110   8,746,120   $   0.47
         Effect of dilutive securities:
           Exercise of stock options ........         --     347,670        .02
                                                --------   ---------   --------
         Diluted EPS ........................   $  4,110   9,093,790   $   0.45
                                                ========   =========   ========

         On December 7, 1999, the Company declared a two-for-one stock split in
the form of a stock dividend of one share of common stock for each one share
outstanding, payable to shareholders of record on December 20, 1999. All data
related to common shares has been retroactively adjusted based upon the new
shares outstanding after the effect of the two-for-one stock split for all
periods presented.


                                       7
<PAGE>


NOTE B.  INVENTORIES
         Inventories consist of the following:

                                                   October 28,      April 29,
                                                      2000            2000
                                                   ----------     -----------

                Raw materials...................   $   10,387      $    7,403
                Work-in-process.................        3,902           1,341
                Finished goods..................        5,439           5,105
                                                   ----------      ----------
                                                   $   19,728      $   13,849
                                                   ==========      ==========

NOTE C.  LITIGATION
         There are no pending material legal transactions against the Company.

NOTE D.  RECENT ACCOUNTING PRONOUNCEMENTS
         In December 1999, the staff of the Securities and Exchange Commission
issued Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial
Statements". SAB No. 101 summarizes some of the staff's interpretations of the
application of generally accepted accounting principles to revenue recognition.
The Company will adopt SAB No. 101 when required in the fourth quarter of 2001.
The Company is in the process of determining the impact the adoption will have
on its financial statements.


                                       8
<PAGE>


Item 2.

     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
                                  OF OPERATIONS


         The following discussion highlights the principal factors affecting
changes in financial condition and results of operations.

         This discussion should be read in conjunction with the accompanying
Consolidated Financial Statements and Notes to Consolidated Financial
Statements.

         In addition to statements of fact, this report contains forward-looking
statements reflecting the Company's expectations or beliefs concerning future
events which could materially affect Company performance in the future. The
Company cautions that these and similar statements involve risk and
uncertainties including changes in economic and market conditions, seasonality
of business in certain market niches, impact of large orders, management of
growth, and other risks noted in the Company's Securities and Exchange
Commission (SEC) filings which may cause actual results to differ materially.
Forward-looking statements are made in the context of information available as
of the date stated. The Company undertakes no obligation to update or revise
such statements to reflect new circumstances or unanticipated events as they
occur.

GENERAL
         The Company designs, manufactures and sells a wide range of
computer-programmable information display systems to customers in a variety of
markets throughout the world. The Company focuses its sales and marketing
efforts on markets rather than products. Major categories of markets include
sport, business and government.

         The Company's net sales and profitability historically have fluctuated
due to the impact of large product orders, such as display systems for the
Olympic Games and major league sports, as well as the seasonality of the sports
market. The Company's gross margins on large product orders tend to fluctuate
more than those for small standard orders. Large product orders that involve
competitive bidding and substantial subcontract work for product installation
generally have lower gross margins. Although the Company follows the percentage
of completion method of recognizing revenues for these large orders, the Company
nevertheless has experienced fluctuations in operating results and expects that
its future results of operations may be subject to similar fluctuations.

         The Company operates on a 52 - 53 week fiscal year, with fiscal years
ending on the Saturday closest to April 30 of each year. The first three
quarters end on the Saturday closest to July 31, October 31 and January 31.

RESULTS OF OPERATIONS
         The following table sets forth the percentage of net sales represented
by items included in the Company's Consolidated Statements of Income for the
periods indicated:


                                       9
<PAGE>


<TABLE>
<CAPTION>
                                                THREE MONTHS ENDED                SIX MONTHS ENDED
                                                ------------------                ----------------
                                            OCTOBER 28,     OCTOBER 30,      OCTOBER 28,      OCTOBER 30,
                                               2000            1999             2000             1999
                                            (13 WEEKS)      (13 WEEKS)       (26 WEEKS)       (26 WEEKS)
                                           ------------    ------------     ------------     ------------
<S>                                            <C>              <C>              <C>              <C>
Net sales ...........................          100.0%           100.0%           100.0%           100.0%
Cost of goods sold ..................           69.6%            73.7%            69.8%            73.8%
                                            --------         --------         --------         --------
Gross profit ........................           30.4%            26.3%            30.2%            26.2%
Operating expenses ..................           16.8%            15.9%            18.3%            16.2%
                                            --------         --------         --------         --------
Operating income ....................           13.6%            10.4%            11.9%            10.0%
Interest income .....................            0.4%             0.5%             0.5%             0.4%
Interest expense ....................           (0.7%)           (0.8%)           (0.8%)           (0.8%)
Other income, net ...................            0.3%             0.5%             0.4%             0.4%
                                            --------         --------         --------         --------
Income before income taxes ..........           13.6%            10.6%            12.0%            10.0%
Income tax expense ..................            5.5%             4.3%             4.8%             4.0%
                                            --------         --------         --------         --------
Net income ..........................            8.1%             6.3%             7.2%             6.0%
                                            ========         ========         ========         ========
</TABLE>

NET SALES
         Net sales were $42.1 million and $76.7 million for the three and six
months ended October 28, 2000 compared to $37.1 million and $68.6 million for
the three and six months ended October 30, 1999. The increase in net sales was
due primarily to increases in net sales in the business markets and the
government markets.

GROSS PROFIT
         Gross profit increased 31% to $12.8 million for the three months ended
October 28, 2000 from $9.7 million for the three months ended October 30, 1999
while gross profit as a percentage of net sales increased to 30.4% from 26.3%,
respectively.

         Gross profit increased 29% to $23.1 million for the six months ended
October 28, 2000 from $18.0 million for the six months ended October 30, 1999
while gross profit as a percentage of net sales increased to 30.2% from 26.2%,
respectively.

         The increases were due to continued improvement in gross profit
percentage of sales as the Company continued its cost improvement programs,
including product standardization.

OPERATING EXPENSES
         Selling expenses increased to $4.5 million for the three months ended
October 28, 2000 from $3.7 million for the three months ended October 30, 1999.
Selling expenses increased to $8.9 million for the six months ended October 28,
2000 from $7.0 million for the six months ended October 30, 1999. The increases
were due primarily to the addition of sales staff and increased selling
activity.

         General and administrative expenses increased to $1.4 million and $2.6
million for the three and six months ended October 28, 2000 from $1.2 million
and $2.1 million for the three and six months ended October 30, 1999,
respectively. The increases were due to increases in salary and personnel to
support Company growth.

         Product design and development expenses were $1.2 million and $2.5
million for the three and six months ended October 28, 2000 and $971,000 and
$2.0 million for the three and six months ended October 30, 1999, respectively.
The increases were due to continued development and improvement of the family of
ProStar(R) Video Plus displays and the continued expansion and improvement of
existing products.


                                       10
<PAGE>


INTEREST INCOME
         The Company occasionally sells products on an installment basis or in
exchange for advertising revenues from the scoreboard or display, both of which
result in long-term receivables. Interest income was $166,000 and $362,000 for
the three and six months ended October 28, 2000 and $192,000 and $283,000 for
the three and six months ended October 30, 1999, respectively.

INTEREST EXPENSE
         Interest expense was $293,000 and $579,000 for the three and six months
ended October 28, 2000 and $305,000 and $569,000 for the three and six months
ended October 30, 1999, respectively.

INCOME TAX EXPENSE
         Income taxes as a percentage of income before income taxes were
approximately 40% for the six months ended October 28, 2000 and October 30,
1999.

NET INCOME
         Net income was $3.4 million and $5.5 million for the three and six
months ended October 28, 2000 compared to $2.3 million and $4.1 million for the
three and six months ended October 30, 1999, respectively. The increase was due
to the increase in net sales and the increase in gross profit percentage.

         Management believes that one of the principal factors that will affect
net sales and income growth is the Company's ability to increase the marketing
of its current and future products in existing markets and expand the marketing
of its products to new markets.

LIQUIDITY AND CAPITAL RESOURCES
         Working capital was $22.9 million at October 28, 2000 and $20.7 million
at April 29, 2000. Working capital provided by net income, depreciation and
amortization was offset by purchases of property and equipment and repayment of
long-term debt. The Company has historically financed working capital needs
through a combination of cash flow from operations and borrowings under bank
credit agreements.

         Cash provided by operations for the six months ended October 28, 2000
was $814,000. Net income of $5.5 million plus depreciation and amortization of
$1.7 million were offset by an increase in accounts receivable and an increase
in inventories including costs and estimated earnings in excess of billings on
uncompleted contracts. Cash used by investing activities consisted of $4.8
million of purchases of property and equipment. Cash provided from financing
activities included $2.9 million of net borrowings under the Company's line of
credit, proceeds from long-term debt of $1.7 million and $167,000 in proceeds
from the exercise of stock options. Cash used for financing activities consisted
of $1.2 million of repayment of long-term debt.

         The Company has used and expects to continue to use cash reserves and
bank borrowings to meet its short-term working capital requirements. On large
product orders, the time between acceptance and completion may extend up to 12
months depending on the amount of custom work and the customer's delivery needs.
The Company often receives a down payment or progress payments on these product
orders. To the extent that these payments are not sufficient to fund the costs
and other expenses associated with these orders, the Company uses working
capital and bank borrowings to finance these cash requirements.

         The Company's product development activities include the enhancement of
existing products and the development of new products from existing
technologies. Product design and development expenses were $2.5 million for the
six months ended October 28, 2000 and $2.0 million for the six months ended
October 30, 1999, respectively. The Company intends to continue to incur these
expenditures to develop new display products using various display technologies
to offer higher resolution, and more cost effective and energy efficient
displays. Daktronics also intends to continue developing software applications
for its display controllers to enable these products to continue to meet the
needs and expectations of the marketplace.


                                       11
<PAGE>


         The Company has a credit agreement with a bank. The credit agreement
provides for a $20.0 million line of credit which includes up to $2.0 million
for standby letters of credit. The line of credit is at LIBOR rate plus 1.55%
(8.17% at October 28, 2000) and is due on October 1, 2002. As of October 28,
2000, $10.1 million had been drawn on the line of credit and no standby letters
of credit had been issued by the bank. The credit agreement is unsecured and
requires the Company to meet certain covenants. Financial covenants include the
maintenance of tangible net worth of at least $23 million, a minimum liquidity
ratio, a limit on dividends and distributions, and a minimum adjusted fixed
charge coverage ratio.

         The Company is sometimes required to obtain performance bonds for
display installations. The Company currently has a bonding line available
through a surety company that provides for an aggregate of $100.0 million in
bonded work outstanding. At October 28, 2000, the Company had $19 million of
bonded work outstanding against this line.

         The Company believes that if its growth continues, it may need to
increase the amount of its credit facility. The Company anticipates that it will
be able to obtain any needed funds under commercially reasonable terms from its
current lender. The Company believes that cash from operations, from its
existing or increased credit facility, and its current working capital will be
adequate to meet the cash requirements of its operations in the foreseeable
future.


                                       12
<PAGE>


Item 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
         The Company does not believe its operations are exposed to significant
market risk relating to interest rates or foreign exchange risk.


Part II. Other Information

Item 4. Submission of Matters to a Vote of Security Holders

         The following items and the results were submitted to the shareholders
at the annual meeting held on 16 August 2000.

1.       Election of the following three nominees as directors of the Company,
         until their successors are duly elected and qualified:

         Frank J. Kurtenbach:  For 8,493,091   Against 6,682   Abstain)
         Roland J. Jensen      For 8,493,091   Against 1,300   Abstain) 27,773
         James A. Vellenga     For 8,493,091   Against 600     Abstain)

2.       Ratification of the appointment of McGladrey & Pullen, LLP as
         independent auditors for the Company for the fiscal year ending 28
         April 2001.

         For 8,457,593         Against 21,675        Abstain 47,798

Item 6. Exhibits and Reports on Form 8-K
        b. Exhibit 27 is attached


                                       13
<PAGE>


                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                    /s/ Aelred J. Kurtenbach, Chairman and CEO
                                    --------------------------------------------
                                    Daktronics, Inc.
                                    (Dr. Aelred J. Kurtenbach, Chairman and CEO)
                                    (Chairman and CEO)


Date  December 12, 2000
      -----------------
                                    /s/ Paul J. Weinand, Treasurer
                                    --------------------------------------------
                                    Daktronics, Inc.
                                    (Paul J. Weinand, Treasurer)
                                    (Principal Financial Officer)


                                       14




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