BROOKINGS The longtime CEO of Daktronics, Reece Kurtenbach, stepped down at close of business Wednesday, the company said in a news release.
The news came as the scoreboard manufacturer also announced a $17.2 million loss in its fiscal third quarter on Wednesday.
Started in 1968 by Reece Kurtenbachs father Al and Duane Sander, the company has long been one of the citys largest employers with the bulk of its 2,000-some employees located in Brookings.
The leadership change comes amid a feud with investment group Alta Fox, which bought further into the company after a liquidity crisis in late 2022 caused Daktronivs to miss an earnings report and file a going concern declaration with the Securities and Exchange Commission.
A going concern is an accounting term used to reflect a company that is expected to be able to pay all its debts on time in the coming 12 months.
On Monday, Daktronics issued a statement saying it had come to a cooperation agreement with Alta Fox. Among the conditions were appointing Peter Feigin, president of the Milwaukee Bucks, to the Daktronics board, hosting an investor day in 2025 and giving Alta Fox input on its new chief financial officer. In return, Alta Fox agreed to drop any lawsuits against Daktronics and support its reincorporation in Delaware.
The reincorporation would not move the companys headquarters or physical plant.
The release Wednesday says that Reece Kurtenbach will transition to an advisory role, and Brad Wiemann, current executive vice president, will be appointed interim CEO.
Howard Atkins, a board member and former CFO of Wells Fargo, will be appointed acting CFO, allowing Sheila Anderson to transition out of the job.
Reece Kurtenbach has worked for the company for 34 years, the last 12 as CEO.
The companys outlook in the statement mentions new tariffs and changes in federal funding as headwinds for the company, which does significant business in China. Daktronics further said Wednesday it had a 12.2% decrease in sales from the same quarter in 2024 and an operating loss of $3.6 million.
Daktronics stock, which had been trading near $15 per share, plummeted on the news early Wednesday, dropping below $11 per share before rebounding to finish the day at $12.20 a drop of almost 15 percent.
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