<SEC-DOCUMENT>0000921895-25-000239.txt : 20250204
<SEC-HEADER>0000921895-25-000239.hdr.sgml : 20250204
<ACCEPTANCE-DATETIME>20250204145947
ACCESSION NUMBER:		0000921895-25-000239
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20250204
DATE AS OF CHANGE:		20250204
EFFECTIVENESS DATE:		20250204

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DAKTRONICS INC /SD/
		CENTRAL INDEX KEY:			0000915779
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS MANUFACTURING INDUSTRIES [3990]
		ORGANIZATION NAME:           	04 Manufacturing
		IRS NUMBER:				460306862
		STATE OF INCORPORATION:			SD
		FISCAL YEAR END:			0426

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-38747
		FILM NUMBER:		25587355

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 5128
		STREET 2:		201 DAKTRONICS DRIVE
		CITY:			BROOKINGS
		STATE:			SD
		ZIP:			57006
		BUSINESS PHONE:		6056974000

	MAIL ADDRESS:	
		STREET 1:		P O BOX 5128
		CITY:			BROOKINGS
		STATE:			SD
		ZIP:			57006

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BREACH INLET CAPITAL MANAGEMENT, LLC
		CENTRAL INDEX KEY:			0002009914
		ORGANIZATION NAME:           	
		IRS NUMBER:				475493198
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		75 PORT CITY LANDING
		STREET 2:		SUITE 110
		CITY:			MT. PLEASANT
		STATE:			SC
		ZIP:			29464
		BUSINESS PHONE:		843.212.4799

	MAIL ADDRESS:	
		STREET 1:		75 PORT CITY LANDING
		STREET 2:		SUITE 110
		CITY:			MT. PLEASANT
		STATE:			SC
		ZIP:			29464
</SEC-HEADER>
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<TYPE>PX14A6G
<SEQUENCE>1
<FILENAME>px14a6g14315003_02042025.htm
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.5pt 0.9pt 0 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.5pt 0.85pt 0 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.5pt 0.9pt 0 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0.85pt 0 0; text-align: center"><B>NOTICE OF EXEMPT SOLICITATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.5pt 0.85pt 0 0; text-align: center">Submitted Pursuant to Rule 14a-6(g)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.9pt 0 0; text-align: center"><B>(Amendment No. <U>&nbsp;&nbsp;</U>)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.</TD><TD>Name of the Registrant:<BR>
<BR>
Daktronics, Inc.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">2.</TD><TD>Name of Person Relying on Exemption:<BR>
<BR>
Breach Inlet Capital Management, LLC</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">3.</TD><TD>Address of Person Relying on Exemption:<BR>
<BR>
75 Port City Landing, Suite 110<BR>
Mt. Pleasant, SC 29464</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">4.</TD><TD>Written Materials. The following written material is attached hereto:<BR>
<BR>
Press release, dated February 4, 2025.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">* * *</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in">Written material is submitted
pursuant to Rule 14a-6(g)(1) promulgated under the Securities Exchange Act of 1934. This is not a solicitation of authority to vote any
proxy. Breach Inlet Capital Management, LLC (together with its affiliates, &ldquo;Breach Inlet Capital&rdquo;) is not asking for your
proxy card and will not accept proxy cards if sent. The cost of this filing is being borne entirely by Breach Inlet Capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><B>PLEASE NOTE: Breach Inlet
Capital is not asking for your proxy card and cannot accept your proxy card. Please DO NOT send us your proxy card.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in"><I>(Written material follows
on next page)&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Breach Inlet Capital Announces Intention to Vote
Against Daktronics&rsquo; Proposed Reincorporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>Believes Eliminating Cumulative Voting is Contrary
to Best Interests of Shareholders</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">CHARLESTON, S.C.--(BUSINESS WIRE)-- Breach Inlet Capital
Management, LLC (together with its affiliates, &ldquo;Breach Inlet Capital&rdquo; or &ldquo;we&rdquo;) is an investment firm focused on
underfollowed and misunderstood small cap equities. Today, we issued the following open letter to shareholders of Daktronics, Inc. (NASDAQ:
DAKT) (&ldquo;DAKT&rdquo; or the &ldquo;Company&rdquo;) explaining our intention to <B><U>vote AGAINST</U></B> the Company&rsquo;s proposed
reincorporation from South Dakota to Delaware, pursuant to which DAKT primarily is seeking to eliminate cumulative voting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: right">February 4, 2025</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Fellow Shareholders:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Breach Inlet Capital remains a top 10 shareholder
of DAKT with ownership of 2.0% of its outstanding shares, which is more than each of the Company&rsquo;s directors and executive officers.
We previously issued a public letter in December 2024 encouraging the Board of Directors of the Company (the &ldquo;Board&rdquo;) to act
in the best interests of shareholders and offering recommendations that we believe would improve DAKT.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Instead of heeding our advice, the Board has taken
steps to eliminate a valuable shareholder right. Specifically, the Board has called a special meeting of shareholders seeking shareholder
approval to reincorporate the Company from South Dakota to Delaware. While the Board claims the Delaware reincorporation would &ldquo;protect
the interests of shareholders<I>,</I>&rdquo;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>1</SUP></FONT>
the Board&rsquo;s self-professed primary motive for seeking reincorporation is the elimination of cumulative voting. This makes clear
to us that the Board is attempting to further entrench itself and the management team at the expense of shareholders. Cumulative voting
is a powerful tool that enables minority shareholders to more easily gain Board representation and hold a company&rsquo;s leadership team
accountable. The elimination of such a right is not in the best interests of shareholders. It is quite telling that the Board is seeking
to remove this pro-shareholder right, but not eliminate the shareholder-unfriendly classified Board structure as part of the reincorporation
process.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Furthermore, according to the preliminary proxy statement
filed by Alta Fox Capital Management, LLC (&ldquo;Alta Fox&rdquo;) on January 31, 2025, &ldquo;advisors to the Company reached out to
advisors to Alta Fox and threatened that if a negotiated resolution could not be reached promptly, the Company would remove cumulative
voting.&rdquo; If true, this means that Alta Fox&rsquo;s publicly disclosed efforts to improve DAKT&rsquo;s corporate governance were
met by the Board with a threat (and ultimately concerted action) to eliminate a valuable right to all shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As outlined in our prior public letter, we want significant
enhancements to DAKT&rsquo;s corporate governance, leadership, investor communications, executive compensation practices and capital allocation
decisions. While we appreciate the constructive conversations we have had with certain members of DAKT leadership, it is readily apparent
that the Board is unwilling to make the changes that we and other shareholders believe are necessary. Therefore, we believe it is extremely
important for shareholders to maintain the current cumulative voting right. Otherwise, eliminating such right is likely to make it more
difficult for shareholders to reconstitute the composition of the Board with candidates who are committed to acting in the best interests
of all shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the foregoing reasons, we intend to <B><U>vote
AGAINST</U></B> the Company&rsquo;s proposed reincorporation from South Dakota to Delaware.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Best Regards,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><IMG SRC="image_001.jpg" ALT="" STYLE="height: 25px; width: 97px"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Chris Colvin, CFA</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Founder and Portfolio Manager</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Breach Inlet Capital Management, LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>THIS IS NOT A SOLICITATION OF AUTHORITY TO VOTE YOUR PROXY. DO NOT SEND
US YOUR PROXY CARD. BREACH INLET CAPITAL IS NOT ASKING FOR YOUR PROXY CARD AND WILL NOT ACCEPT PROXY CARDS IF SENT. BREACH INLET CAPITAL
IS NOT ABLE TO VOTE YOUR PROXY, NOR DOES THIS COMMUNICATION CONTEMPLATE SUCH AN EVENT.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<HR ALIGN="LEFT" SIZE="1" STYLE="width: 33%">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><SUP>1</SUP></FONT>
Source: Preliminary Proxy filed by DAKT on 1/21/25</P>

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