The more I look for successful companies in the stock market, the more I want to stick with existing winners. I can't prove it scientifically, but it just seems to me that companies with a proven track record of wealth creation for stockholders are much more likely to keep generating good returns, as opposed to those stocks that are flat or represent turnaround situations.

One of my favorite companies for quite some time (I guess I have a lot of favorites) is Daktronics Incorporated (NASDAQ/DAKT). This innovative South Dakota company is one of the world's largest and best manufacturers of electronic scoreboards, computer-programmable displays, and large-screen video displays and control systems. This company installs big screens in sports stadiums and on highways. The company boasts an outstanding record of success, both operationally and on the stock market.

In its latest quarter, the fourth quarter ended April 28, 2007, Daktronics' revenues grew 23% over the comparable quarter to $110.8 million. Net income was $3.5 million, or $0.09 per diluted share, as compared with $7.1 million, or $0.17 per diluted share. The company's backlog at the end of the fiscal 2007 fourth quarter was approximately $127 million.

For all of fiscal 2007, revenues grew 40% to $433.2 million. Net income for the year was $24.4 million, or $0.59 per diluted share, as compared to $21.0 million, or $0.52 per diluted share, in fiscal 2006.

Daktronics just announced a significant reorganization of its business, creating five business units instead of three. The new business units are as follows: commercial, small sports venues, live events, transportation, and international. The company's goal is to better serve its customers with more focused operations in each customer group.

This is what I like about this company. It's always on the move. It's growing its financial results, and it's trying new things to better serve its customers and stockholders. The status quo just doesn't cut it. This is why Daktronics is likely to continue being a great success over the coming years. This company is a true innovator.