Revenue during the quarter grew 7.82 percent to $169.99 million from $157.67 million in the previous year period. Gross margin for the quarter expanded 354 basis points over the previous year period to 26.06 percent. Total expenses were 92.55 percent of quarterly revenues, down from 96.45 percent for the same period last year. This has led to an improvement of 390 basis points in operating margin to 7.45 percent.

Operating income for the quarter was $12.67 million, compared with $5.60 million in the previous year period.

Reece Kurtenbach, chairman, president and chief executive officer stated, "We are pleased with our second quarter of fiscal 2017 financial performance. We achieved higher net sales and experienced improved profitability during the second quarter of fiscal 2017 compared to the second quarter of fiscal 2016. Our sales levels improved with the timing of large project delivery and we saw increases in demand in the Commercial and International businesses. Our High School Park and Recreation business unit is having a great year, with orders up more than 25 percent during the quarter. A year ago, we were working through a warranty issue that took time, attention, and financial resources away from improving our business. This year, we have been able to return our focus to product development activities."

Cash flow from investing activities was $1.63 million for the first half as against cash outgo of $11.97 million in the last year period. It has incurred net capital expenditure of $4.55 million on net basis during the first six months, down 56.16 percent or $5.83 million from year ago period.

The company has spent $10.33 million cash to carry out financing activities during the first six months as against cash outgo of $8.42 million in the last year period.

Cash and cash equivalents stood at $34.04 million as on Oct. 29, 2016, up 23.98 percent or $6.59 million from $27.46 million on Oct. 31, 2015.

Working capital declines
Daktronics, Inc has witnessed a decline in the working capital over the last year. It stood at $137.52 million as at Oct. 29, 2016, down 6.24 percent or $9.15 million from $146.66 million on Oct. 31, 2015. Current ratio was at 2.12 as on Oct. 29, 2016, down from 2.21 on Oct. 31, 2015.

Cash conversion cycle (CCC) has decreased to 39 days for the quarter from 74 days for the last year period. Days sales outstanding went down to 50 days for the quarter compared with 56 days for the same period last year.

Days inventory outstanding has decreased to 23 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding was almost stable at 34 days for the quarter, when compared with the previous year period.