Zacks Investment Research has recently initiated coverage of AstroNova, Inc. (ALOT) with a Neutral recommendation, highlighting a range of opportunities in growth markets balanced against operational and financial challenges. AstroNova is well-positioned to capitalize on favorable industry trends. The global recovery in the aerospace sector has fueled demand for its Test & Measurement products, which generated $23.2 million in revenues during the first half of fiscal 2025. Key growth drivers include robust ...

Revenue Performance - Revenue for the second quarter of 2024 was $40.5 million, a 14.1% increase compared to $35.5 million in the same period of 2023[95] - Domestic revenue for Q2 2024 was $23.8 million, up 18.2% from $20.1 million in Q2 2023[95] - International revenue for Q2 2024 was $16.8 million, representing 41.3% of total revenue and an 8.8% increase from Q2 2023[95] - Hardware revenue in Q2 2024 was $12.4 million, a 9.7% increase compared to $11.3 million in Q2 2023[95] - Supplies revenue in Q2 2024 was $22.3 million, a 13.4% increase compared to $19.7 million in Q2 2023[96] - Service and other revenues in Q2 2024 were $5.8 million, a 28.1% increase compared to $4.6 million in Q2 2023[96] - Revenue for the first six months of the current year was $73.5 million, a 3.6% increase compared to the previous year's first six months revenue[99] - Domestic revenue for the first half of the current year was $43.3 million, a 6.2% increase from the prior year's domestic revenue of $40.8 million[99] - International revenue for the first six months of the current year was $30.2 million, a 0.1% increase from the previous year's international revenue of $30.1 million[99] - Hardware revenue in the first six months of the current year was $21.2 million, a 7.4% decrease compared to the prior year's first six months hardware revenue of $22.9 million[99] - Supplies revenue in the first half of the current year was $41.0 million, representing a 5.7% increase over the prior year's six months supplies revenue of $38.8 million[99] - Service and other revenues were $11.3 million in the first six months of the current year, a 22.2% increase compared to the prior year's first six months service and other revenues of $9.2 million[99] - Revenue from the PI segment increased $1.4 million or 5.4%, in the second quarter of the current year, with revenue of $27.2 million compared to $25.8 million in the same period of the prior year[102] - Revenue from the T&M segment was $13.4 million for the second quarter of the current fiscal year, representing a $3.6 million or 37.2% increase compared to revenue of $9.7 million for the same period in the prior year[104] Profit and Expenses - Gross profit for Q2 2024 was $14.3 million, a 47.5% increase compared to $9.7 million in Q2 2023[96] - Operating expenses for Q2 2024 were $13.3 million, a 21.6% increase compared to $10.9 million in Q2 2023[96] - R&D expenses in Q2 2024 were $1.4 million, a 9.3% decrease compared to Q2 2023, representing 3.5% of revenue[96] - Gross profit for the first six months of the current year was $26.3 million, a 19.0% increase compared to the prior year's gross profit of $22.1 million[99] - Operating expenses for the first six months of the current fiscal year were $23.9 million, a 9.4% increase compared to the prior year's first six months operating expenses of $21.8 million[99] Acquisitions and Integration - The company acquired MTEX New Solution, S.A. on May 6, 2024, integrating it into the Product Identification (PI) segment[93] - The company assumed MTEX's long-term debt obligations, including a term loan of EUR 1.5 million ($1.6 million) and government grant term loans of EUR 1.3 million ($1.5 million)[108] - The company paid $20.7 million for the MTEX acquisition, $3.3 million in principal payments on long-term debt, and $0.8 million in guaranteed royalty obligations during the quarter[109] - Risks related to tax rate changes, compliance with credit agreements, and integration of acquisitions like MTEX and Astro Machine[113] Financial Position and Cash Flow - Cash and cash equivalents as of August 3, 2024, were $4.8 million, with $13.0 million borrowed on the revolving line of credit and $17.0 million available for borrowing[105] - The company entered into a new term loan (Term A-2 Loan) of EUR 14.0 million and increased the revolving credit facility from $25.0 million to $30.0 million until January 31, 2025[105] - Net cash provided by operating activities for the first six months of fiscal 2025 was $7.1 million, compared to $4.7 million for the same period in fiscal 2024[109] - Inventory balance increased to $50.6 million at the end of Q2 fiscal 2025, up from $46.4 million at year-end, with inventory days on hand rising to 174 days from 168 days[109] - Accounts receivable increased to $23.5 million at the end of Q2 fiscal 2025, with days sales outstanding remaining at 49 days[109] - The Term A-2 Loan requires quarterly principal payments of EUR 583,333 through April 30, 2027, with the remaining balance due on August 4, 2027[106] - The company borrowed $0.8 million under a secured equipment loan facility with a fixed interest rate of 7.06%, maturing on January 23, 2029[107] - The revolving credit facility bears interest at a rate per annum equal to Term SOFR plus a margin ranging from 1.60% to 2.50%, depending on the company's consolidated leverage ratio[106] Risks and Uncertainties - Forward-looking statements involve risks and uncertainties, including general economic conditions, COVID-19 impact, and declining demand in test and measurement markets[113] - Risks include dependence on contract manufacturers, competition in specialty printer and data acquisition industries, and ability to control cost structure[113] - Potential risks from cybersecurity attacks, intellectual property disputes, and product failures due to design or manufacturing defects[113] - Challenges in attracting and retaining key employees, managing international sales, and foreign currency exchange rate impacts[113] - Potential inability to ship delayed hardware items on expected timelines[113] Market and Operational Risks - No material changes to market risk disclosures during the six months ended August 3, 2024[114]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $40.5 million, up 14.1% year-over-year, with a 12% increase excluding the MTEX acquisition [18] - Non-GAAP gross profit margins for the quarter were 35.6%, consistent with Q2 of fiscal '24, positively impacted by volume and non-recurring items in the aerospace product line [18] - Non-GAAP operating income was $2.2 million, slightly down from $2.3 million a year ago, primarily due to a loss in MTEX of $1.3 million [19] - Adjusted EBITDA for Q2 was $3.9 million, up 5.3% from the prior year [19] Business Line Data and Key Metrics Changes - The Test and Measurement (T&M) segment saw a revenue growth of 37%, with an operating profit margin of 28.7%, up 900 basis points year-over-year [7] - The Product Identification segment's revenue increased by over 5% year-over-year, driven by the MTEX acquisition and a recovery in QuickLabel and TrojanLabel hardware [11] - MTEX generated revenue of less than $0.8 million with an operating loss of $1.4 million, indicating challenges in integration and performance [9] Market Data and Key Metrics Changes - Sales to the United States accounted for 65.4% of total revenue in Q2 FY '25, up from 63.1% in FY '24, while sales to Europe decreased to 25.2% from 28% [13] - The backlog at the end of Q2 was $29.9 million, down from the first quarter of 2025 due to delayed shipments [20] Company Strategy and Development Direction - The company reaffirmed its expectations for mid-single-digit percent organic revenue growth for the full fiscal year 2025, while lowering adjusted EBITDA margin guidance to 9% to 10% due to MTEX integration challenges [10][22] - The focus remains on integrating MTEX and leveraging its advanced technologies to enhance product offerings and operational efficiencies [9][23] - Future targets include achieving an adjusted EBITDA margin of 13% to 14% in FY '26, with a commitment to continuous improvement and innovation [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities within the aerospace and T&M sectors, driven by the global recovery in air travel [23] - The integration of MTEX is expected to reveal strong synergies that could enhance operational efficiency and expand the technology portfolio [23] - Management remains optimistic about the long-term potential of the MTEX acquisition despite current integration challenges [9][23] Other Important Information - Cash and cash equivalents as of August 3, 2024, were $4.8 million, with liquidity over $20 million [20] - The company generated cash from operations of $7.1 million for the first six months of fiscal '25, compared to $4.7 million for the same period the previous year [21] Q&A Session Summary Question: Can you explain the difference in MTEX's EBITDA margins? - Management indicated that additional costs related to integration and system upgrades diverted resources from daily operations, impacting profitability [27][29] Question: What milestones should shareholders look for regarding MTEX's profitability? - Management noted that while Q2 results were not favorable, they expect MTEX to contribute $8 million to $10 million in revenue as integration progresses [31] Question: Why is M&A a key strategy moving forward? - Management emphasized the potential for significant returns from strategic acquisitions, particularly in aerospace and product identification sectors, while also considering organic growth opportunities [33] Question: How does the company plan to use capital going forward? - The focus will be on paying down debt and completing the integration of MTEX, with potential for share buybacks or dividends to be reviewed by the Board [43][44]

(20 AstroNova® 2 nd Quarter Fiscal 2025 Financial Results September 16, 2024 Forward-Looking Statements Information included in this presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but rather reflect our current expectations concerning future events and results. These statements may include the use of the words "believes," "expects," "intends," "plans," "anticipat ...

Exhibit 99.1 Nova® News Release AstroNova Reports Fiscal 2025 Second Quarter Financial Results Company to host conference call at 9:30 a.m. ET today • Revenue of $40.5 million, up 14.1% year over year • Gross margin of 35.3%, up 800 basis points year over year; non-GAAP gross margin of 35.6%, unchanged year over year • Operating income of $1.1 million; non-GAAP operating income of $2.2 million • Net loss per share of $(0.04) vs. $(0.22) in the second quarter of fiscal year 2024; non-GAAP diluted earnings pe ...

Maravic Introduction AstroNova (NASDAQ:ALOT) has seen their share price decline nearly 20% from the highs of ~$18/share since last earnings were reported. This hasn't come without some justifiable reason, as sales across both segments declined year-over-year and worsened sequentially as well. However, the declines appear largely temporal and furthermore, looking ahead, AstroNova has internal opportunities to grow both sales and margins. Should they execute on such opportunities, today's share price is mater ...

AstroNova, Inc. (NASDAQ:ALOT) Q1 2025 Earnings Conference Call June 6, 2024 9:00 AM ET Company Participants Scott Solomon - IR, Sharon Merrill Associates Greg Woods - President and CEO David Smith - VP and CFO Operator Good morning, and welcome to the AstroNova Fiscal First Quarter 2025 Financial Results Conference Call. Today's call is being recorded. I would now like to turn the conference call over to Scott Solomon of the company's Investor Relations firm, Sharon Merrill Advisors. Please go ahead, sir. S ...

1st Quarter Fiscal 2025 FINANCIAL RESULTS June 6, 2024 Forward-Looking Statements Information included in this presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but rather reflect our current expectations concerning future events and results. These statements may include the use of the words “believes,” “expects,” “intends,” “plans,” “anticipates,” “likely,” “contin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 27, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |----------------------------------------------------------------------------|-----------------------------------------------------| | | | | For the transition period from to ...

Exhibit 99.1 News Release AstroNova Reports Fiscal 2025 First Quarter Financial Results Company Reiterates Fiscal 2025 Full-Year Outlook • Bookings of $33.1 million • Revenue of $33.0 million • Operating income of $1.3 million • Net income of $1.2 million • Earnings per diluted share of $0.15 • Adjusted EBITDA of $2.5 million • Earnings conference call at 9:00 a.m. ET today West Warwick, R.I., June 6, 2024 – AstroNova, Inc. (Nasdaq: ALOT), a global leader in data visualization technologies, today announced ...