Dycom Industries (DY) 8-K Dycom Announces Fiscal 2007 Third Quarter Earnings and Provides Guidance for the Next Fiscal Quarter

EXHIBIT 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE	Contact:	Steven E. Nielsen, President and CEO
		Richard L. Dunn, Senior Vice President
		and CFO
		(561) 627-7171

Palm Beach Gardens, Florida May 22, 2007

DYCOM ANNOUNCES FISCAL 2007 THIRD QUARTER EARNINGS AND PROVIDES
GUIDANCE FOR THE NEXT FISCAL QUARTER

Palm Beach Gardens, Florida, May 22, 2007—Dycom Industries, Inc. (NYSE: DY) announced its results today for the third quarter ended April 28, 2007. The Company reported income from continuing operations for the quarter ended April 28, 2007 of $12.6 million, or $0.31 per common share diluted, versus a loss from continuing operations for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted. Income from continuing operations for the quarter ended April 28, 2007 includes a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. The loss from continuing operations for the quarter ended April 29, 2006 includes a goodwill impairment charge of approximately $14.8 million net of tax, or $0.37 per common share diluted. Excluding these items, non-GAAP income from continuing operations was $11.1 million, or $0.27 per common share diluted, for the quarter ended April 28, 2007 and $8.3 million, or $0.21 per common share diluted, for the quarter ended April 29, 2006.

For the nine months ended April 28, 2007 income from continuing operations was $27.7 million, or $0.68 per common share diluted. For the nine months ended April 29, 2006 income from continuing operations was $7.9 million, or $0.19 per common share diluted. Income from continuing operations for the nine months ended April 28, 2007 includes a gain on sale of real estate of $1.5 million net of tax, or $0.04 per common share diluted. Income from continuing operations for the nine months ended April 29, 2006 includes a goodwill impairment charge of approximately $14.8 million net of tax, or $0.35 per common share diluted. Excluding these items, non-GAAP income from continuing operations was $26.2 million, or $0.65 per common share diluted for the nine months ended April 28, 2007 and $22.7 million, or $0.53 per common share diluted, for the nine months ended April 29, 2006.

Total contract revenues from continuing operations for the quarter ended April 28, 2007 were $291.6 million compared to $251.1 million for the quarter ended April 29, 2006, an increase of 16.2%. Total contract revenues from continuing operations for the nine months ended April 28, 2007 were $820.5 million compared to $741.8 million for the nine months ended April 29, 2006, an increase of 10.6%. Included in contract revenues for the three and nine month periods ended April 28, 2007 is $1.4 million

from a business acquired on March 30, 2007. Stock-based compensation expense, on a pre-tax basis, for the three and nine month periods ended April 28, 2007 was $1.4 million and $ 4.8 million, respectively, compared to stock-based compensation expense of $1.4 million and $3.3 million for the three and nine month periods ended April 29, 2006, respectively .

Net income for the quarter ended April 28, 2007 was $12.4 million, or $0.31 per common share diluted, versus a net loss for the quarter ended April 29, 2006 of $6.5 million, or $0.16 per common share diluted. Net income for the nine months ended April 28, 2007 was $27.6 million, or $0.68 per common share diluted, versus net income for the nine months ended April 29, 2006 of $8.1 million, or $0.19 per common share diluted.

Dycom also announced its outlook for the fourth quarter of fiscal 2007. The Company currently expects revenue from continuing operations for the fourth quarter of fiscal 2007 to range from $295 million to $315 million and diluted earnings per share from continuing operations to range from $0.29 to $0.34, including stock-based compensation expense of approximately $1.5 million on a pre-tax basis. Management 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 23, 2007; Call 800-230-1085 (United States) or 612-234-9960 (International) and request “Dycom Earnings” conference call.A live webcast of the conference call will be available athttp://www.dycomind.com. If you are unable to attend the conference call at the scheduled time, a replay of the live webcast will also be available athttp://www.dycomind.com until Friday, June 22, 2007.

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 locating services to various utilities including telecommunications providers, and other construction and maintenance services to electric utilities and others.

Fiscal 2007 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 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, the impact of any future acquisitions and whether they can be efficiently integrated into our existing operations, the anticipated outcome of other contingent events, including litigation, liquidity needs and the availability of financing, as well as other risks and uncertainties described in the Risk Factors section of the Company’s Annual Report on Form 10-K for the year ended July 29, 2006, and other factors discussed from time to time in our other filings with the Securities and Exchange Commission, including Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake to update forward-looking statements.

—Tables Follow—

NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 28, 2007 and July 29, 2006
Unaudited

	April 28,		July 29,
	2007		2006
	($ in 000’s)
ASSETS
Current Assets:
Cash and equivalents	$	15,966	$	27,268
Accounts receivable, net		133,020		143,099
Costs and estimated earnings in excess of billings		95,176		79,546
Deferred tax assets, net		14,275		12,793
Inventories		9,119		7,095
Other current assets		10,393		9,311
Current assets of discontinued operations		616		5,196
Total current assets		278,565		284,308
Property and equipment, net		160,548		125,393
Intangible assets, net		322,076		265,133
Other		12,538		13,928
Non-current assets of discontinued operations		33		1,253
Total	$	773,760	$	690,015
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	25,967	$	25,715
Current portion of debt		3,515		5,169
Billings in excess of costs and estimated earnings		645		397
Accrued self-insured claims		26,992		25,886
Income taxes payable		8,426		4,979
Other accrued liabilities		52,107		44,337
Current liabilities of discontinued operations		1,495		5,311
Total current liabilities		119,147		111,794
Long-term debt		179,303		150,009
Accrued self-insured claims		31,822		30,770
Deferred tax liabilities, net non-current		16,756		6,576
Other liabilities		1,318		289
Non-current liabilities of discontinued operations		1,131		1,122
Stockholders’ Equity		424,283		389,455
Total	$	773,760	$	690,015

NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited

	Three Months			Three Months			Nine Months			Nine Months
	Ended			Ended			Ended			Ended
	April 28,			April 29,			April 28,			April 29,
	2007			2006			2007			2006
	(In 000’s, except per share amounts)
Contract revenues	$	291,643		$	251,077		$	820,488		$	741,810
Cost of earned revenues		233,657			204,309			662,193			608,581
General and administrative expenses (1)		23,712			20,622			66,786			57,999
Depreciation and amortization		15,327			11,861			41,964			34,678
Goodwill impairment charge		—			14,835			—			14,835
Total		272,696			251,627			770,943			716,093
Interest income		174			327			801			1,540
Interest expense		(3,596	)		(3,641	)		(11,306	)		(8,515	)
Other income, net		5,189			2,894			6,814			4,219
Income (loss) from continuing operations before income taxes		20,714			(970	)		45,854			22,961
Provision for income taxes		8,144			5,518			18,110			15,059
Income (loss) from continuing operations		12,570			(6,488	)		27,744			7,902
Income (loss) from discontinued operations, net of tax (3)		(125	)		(15	)		(154	)		188
Net income (loss)	$	12,445		$	(6,503	)	$	27,590		$	8,090
Earnings (loss) per common share — Basic:
Income (loss) from continuing operations	$	0.31		$	(0.16	)	$	0.69		$	0.19
Income (loss) from discontinued operations		—			—			(0.01	)		—
Net income (loss)	$	0.31		$	(0.16	)	$	0.68		$	0.19
Earnings (loss) per common share — Diluted:
Income (loss) from continuing operations	$	0.31		$	(0.16	)	$	0.68		$	0.19
Income (loss) from discontinued operations		—			—			—			—
Net income (loss)	$	0.31		$	(0.16	)	$	0.68		$	0.19
Shares used in computing earnings per common share (2):
Basic		40,469,787			40,163,176			40,324,503			42,413,595
Diluted		40,770,976			40,163,176			40,622,116			42,628,492

(1)	Includes stock-based compensation expense of $1.4 million and $4.8 million for the three and nine months ended April 28, 2007, respectively, and $1.4 million and $3.3 million for the three and nine months ended April 29, 2006, respectively.
(2)	The Company purchased 8.76 million common shares on October 11, 2005 pursuant to a “Dutch Auction” tender offer.
(3)	The Company discontinued the operations of one of its subsidiaries in fiscal 2007 and has reported those results separately as discontinued operations in the financial statements for all periods presented.

NYSE: “DY”

DYCOM INDUSTRIES, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP INFORMATION
Unaudited
($ in 000’s except per share amounts)

	Three Months			Three Months			Nine Months			Nine Months
	Ended			Ended			Ended			Ended
	April 28,			April 29,			April 28,			April 29,
	2007			2006			2007			2006
Items:
Gain on sale of real estate, net of tax	$	1,508		$	—		$	1,508		$	—
Goodwill impairment charge, net of tax		—			(14,835	)		—			(14,835	)
	$	1,508		$	(14,835	)	$	1,508		$	(14,835	)
GAAP income (loss) from continuing operations	$	12,570		$	(6,488	)	$	27,744		$	7,902
Adjustment for items above		(1,508	)		14,835			(1,508	)		14,835
Non-GAAP income from continuing operations	$	11,062		$	8,347		$	26,236		$	22,737
Earnings (loss) per common share from continuing operations:
Basic earnings (loss) per share from continuing operations — GAAP	$	0.31		$	(0.16	)	$	0.69		$	0.19
Adjustment for items above		(0.04	)		0.37			(0.04	)		0.35
Basic earnings per share from continuing operations — Non-GAAP	$	0.27		$	0.21		$	0.65		$	0.54
Diluted earnings (loss) per share from continuing operations — GAAP	$	0.31		$	(0.16	)	$	0.68		$	0.19
Adjustment for items above		(0.04	)		0.37			(0.04	)		0.35
Diluted earnings per share from continuing operations — Non-GAAP(1)	$	0.27		$	0.21		$	0.65		$	0.53
Shares used in computing GAAP earnings (loss) per common share from continuing operations and adjustment for items above:
Basic		40,469,787			40,163,176			40,324,503			42,413,595
Diluted		40,770,976			40,163,176			40,622,116			42,628,492
Shares used in computing Non-GAAP earnings per common share from continuing operations:
Basic		40,469,787			40,163,176			40,324,503			42,413,595
Diluted		40,770,976			40,395,055			40,622,116			42,628,492

(1) Amounts may not foot due to rounding.