CEO of Daktronics resigns as LED company accelerates business transformation
Reece Kurtenbach, the Chairman, President & CEO of Daktronics, has decided to step down from his role and transition into an advisory position within the LED design and manufacturing firm based in South Dakota. With a career spanning 34 years, including 12 years as the CEO of the publicly traded company, Kurtenbach played a significant role in Daktronics’ growth over the years. Brad Weimann, a long-standing Daktronics employee since 1993 with a background in overseeing the Commercial and High School, Parks, and Recreation business lines, has been appointed as the interim CEO.
This leadership transition comes alongside several other changes within the company. Andrew Siegel, who joined the Daktronics board in 2022, has been named as the Chairman of the Board. Howard Atkins, the former CFO of Wells Fargo, will assume the roles of acting CFO & Chief Transformation Officer, allowing Sheila Anderson to focus on her primary role as Chief Data & Analytics Officer. Additionally, the company has initiated a search for a permanent CEO, engaging a national search firm for the task.
Following these announcements, Daktronics’ stock price experienced fluctuations, dropping initially but later showing signs of recovery. These changes are part of a broader business transformation journey that Daktronics has embarked upon in recent years. This transformation, driven by the company’s shareholders and a liquidity crisis in 2022 necessitating a ‘going concern’ declaration, aims to transition the company from a family-owned business to a more globally professionalized entity.
Key elements of this transformation include the company’s reincorporation in Delaware and the appointment of new independent directors like Bucks President Peter Feigin. The transformation plan outlined by Daktronics seeks to achieve specific financial milestones by 2028, including revenue growth, expansion of operating margins, and an increase in return on capital. Despite challenges, including a decline in sales in the third quarter of FY25 compared to the previous year, Daktronics remains focused on its strategic goals.
The company’s recent financial results reflected both successes and areas for improvement. Daktronics secured a major NFL stadium order during the last quarter, but consultant and advisor expenses related to business transformation initiatives impacted its operating income. However, the company ended FY23 with improved cash reserves, signifying progress in bolstering its financial position. As Daktronics advances through its transformation journey, it looks towards achieving sustainable growth and profitability in the years ahead.