Palm Beach Gardens, Florida, May 20, 2008--Dycom Industries, Inc. (NYSE: DY) announced today its results for the third quarter ended April 26, 2008. The Company reported income from continuing operations for the quarter ended April 26, 2008 of $7.7 million, or $0.19 per common share diluted, versus income from continuing operations for the quarter ended April 28, 2007 of $12.6 million, or $0.31 per common share diluted. Net income, including the results of discontinued operations, for the quarter ended April 26, 2008 was $6.9 million, or $0.17 per common share diluted, compared to net income of $12.4 million, or $0.31 per common share diluted, for the quarter ended April 28, 2007. Total contract revenues from continuing operations for the quarter ended April 26, 2008 were $293.4 million compared to $291.6 million for the quarter ended April 28, 2007, an increase of 0.6%. Stock based compensation expense for the each of the quarters ended April 26, 2008 and April 28, 2007 was $1.4 million, on a pre-tax basis.

Income from continuing operations for the quarter ended April 26, 2008 included a reduction of interest and income tax expense of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax related liabilities and a reduction of $1.7 million in the cost of earned revenues related to the reversal of a pre-acquisition payroll related accrual. The aggregate effect of these items was to increase income from continuing operations by $2.1 million, net of tax, or $0.05 per common share diluted for the quarter ended April 26, 2008. Income from continuing operations for the quarter ended April 28, 2007 included a gain on sale of real estate of $1.5 million, net of tax, or $0.04 per common share diluted. On a non-GAAP basis, excluding the aforementioned items, income from continuing operations for the quarter ended April 26, 2008 was $5.5 million, or $0.14 per common share diluted, versus $11.1 million, or $0.27 per common share diluted, for the quarter ended April 28, 2007. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

For the nine months ended April 26, 2008 income from continuing operations was $19.8 million, or $0.48 per common share diluted, versus income from continuing operations for the nine months ended April 28, 2007 of $27.7 million, or $0.68 per common share diluted. Net income, including the results of discontinued operations, for the nine months ended April 26, 2008 was $18.6 million or $0.45 per common share diluted, compared to net income of $27.6 million, or $0.68 per common share diluted for the nine months ended April 28, 2007. Total contract revenues from continuing operations for the nine months ended April 26, 2008 were $907.9 million compared to $820.5 million for the nine months ended April 28, 2007, an increase of 10.6%. Stock based compensation expense for the nine months ended April 26, 2008 and the nine months ended April 28, 2007 was $4.6 million and $4.8 million, respectively, on a pre-tax basis.

Income from continuing operations for the nine months ended April 26, 2008 included the accrual of $7.6 million related to the previously announced wage and hour class action settlement with respect to three of the Company’s subsidiaries. Additionally, income from continuing operations includes a reduction of interest and income tax expense of $0.3 million and $0.9 million, respectively, related to the reversal of certain income tax related liabilities and a reduction of $1.7 million in the cost of earned revenues related to the reversal of a pre-acquisition payroll related accrual. On a combined basis, these items decreased income from continuing operations $2.5 million, net of tax, or $0.06 per common share diluted for the nine months ended April 26, 2008. Income from continuing operations for the nine months ended April 28, 2007 included a gain on sale of real estate of $1.5 million, net of tax, or $0.04 per common share diluted. On a non-GAAP basis, excluding the aforementioned items, income from continuing operations for the nine months ended April 26, 2008 was $22.3 million, or $0.54 per common share diluted, versus $26.2 million, or $0.65 per common share diluted, for the nine months ended April 28, 2007. See the attached tables which present a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Dycom also announced its outlook for the fourth quarter of fiscal 2008. The Company currently expects revenue from continuing operations for the fourth quarter of fiscal 2008 to range from $305 million to $325 million and diluted earnings per share from continuing operations to range from $0.18 to $0.23, including stock based compensation expense of approximately $1.1 million on a pre-tax basis. Management currently believes that discontinued operations will not have a material impact on the quarter.

A Tele-Conference call to review the Company's results and address its outlook will be hosted at 9:00 a.m. (ET), Wednesday, May 21, 2008; Call 800-230-1096 (United States) or 612-332-0107 (International) and request "Dycom Results" conference call. A live webcast of the conference call, along with a slide presentation, will be available at http://www.dycomind.com under the heading “Investors” and subheading “Event Details.” If you are unable to attend the conference call at the scheduled time, a replay of the live webcast and the slide presentation will be available at http://www.dycomind.com until Friday, June 20, 2008.

Dycom is a leading provider of specialty contracting services throughout the United States. These services include engineering, construction, maintenance and installation services to telecommunications providers, underground facility locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others.

Fiscal 2008 third quarter and nine-month results are preliminary and are unaudited. This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act. Such statements include, but are not limited to, the Company’s expectations for revenues, stock-based compensation expense and earnings per share. These statements are based on management’s current expectations, estimates and projections. Forward-looking statements are subject to risks and uncertainties that may cause actual results in the future to differ materially from the results projected or implied in any forward-looking statements contained in this press release. Such risks and uncertainties include: business and economic conditions in the telecommunications industry affecting our customers, the adequacy of our insurance and other reserves and allowances for doubtful accounts, whether the carrying value of our assets may be impaired, whether acquisitions can be efficiently integrated into our existing operations, the impact of any future acquisitions, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks detailed in our filings with the Securities and Exchange Commission. The Company does not undertake to update forward-looking statements.

Click here for tables