Financial Data and Key Metrics Changes - Total revenue for Q3 2022 increased by 3% year-over-year to $28.9 million, driven by a rebound in the commercial aviation market [7] - Strong bookings reached $32.3 million, up 16% year-over-year and 6% sequentially from Q2 [8] - The company reported a net loss of $425,000 or $0.06 per share on a GAAP basis, while on a non-GAAP basis, net income was $76,000 or $0.01 per share [17] Business Line Data and Key Metrics Changes - Revenue in the Test and Measurement (TNM) segment increased by 35% to $6.9 million, marking the best quarter since Q1 of the previous year [7] - Product navigation revenue declined by 4% to $21.9 million [8] - Service and other revenue rose by 35% compared to the same period last year, primarily in the T&A segment [9] Market Data and Key Metrics Changes - U.S. revenue accounted for approximately 60% of total sales in Q3 [9] - The company is strengthening its product and education teams both domestically and internationally, with new initiatives in Europe, the Middle East, and Africa beginning to yield positive results [10] Company Strategy and Development Direction - The company plans to pursue a hybrid marketing approach that combines high-value in-person events with growth in digital marketing platforms [12] - M&A activity is part of the company's strategic plan, with increased screening of potential deals and hopes to finalize something in the coming quarters [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain constraints but expressed confidence in the ability to fulfill delayed orders in Q4 [8][18] - The company is well-positioned for sequential and year-over-year growth in Q4, supported by strong bookings and a solid backlog [18] Other Important Information - Operating expenses increased by about 8% year-over-year, primarily due to higher R&D expenses for new product development [14] - The company successfully implemented a new enterprise resource planning system, positioning it for future growth [16] Q&A Session Summary Question: What was the revenue impact in Q3 from supply chain issues? - Management indicated that the impact was significant but did not disclose a specific number, noting that they expect to make up for it in Q4 [20][21] Question: Was the recurring revenue number broken out for the quarter? - Management acknowledged the request but did not have the number readily available, promising to follow up [22][23] Question: Is the company looking at M&A for future growth? - Management confirmed that M&A is part of their strategic plan and that they have been actively screening potential deals, with increased activity noted [24][25] Question: Did the new aerospace orders contribute to Q3 results? - Management clarified that the results were primarily from commercial transport, with new aerospace orders expected to contribute in Q4 [26][27]

Revenue Performance - Revenue for the current quarter was $28.9 million, representing a 3.0% increase compared to the prior year third quarter revenue of $28.0 million[137]. - International revenue for the third quarter of the current year was $11.6 million, reflecting a 3.1% increase from the previous year third quarter[137]. - Revenue for the first nine months of the current year was $87.8 million, representing a 1.4% increase compared to the previous year's first nine months revenue[148]. - International revenue for the first nine months of the current year was $36.6 million, a 13.9% increase from the previous year[148]. - Revenue from the Product Identification segment decreased 4.2% to $21.9 million in Q3 2021, down from $22.9 million in Q3 2020, primarily due to a decrease in hardware and supplies sales[158]. - Revenue from the T&M segment increased 35.4% to $6.9 million in Q3 2021, up from $5.1 million in Q3 2020, driven by increased hardware and supplies sales in the aerospace product group[161]. - Revenue from the Product Identification segment increased 2.4% to $68.5 million for the first nine months of 2021, up from $66.9 million in the same period of 2020[160]. - T&M segment revenue for the first nine months of 2021 was $19.3 million, a 2.2% decrease from $19.7 million in the same period of 2020[162]. Profitability and Expenses - Gross profit for the current year third quarter was $10.4 million, a 6.7% increase compared to prior year third quarter gross profit of $9.7 million[141]. - Operating expenses for the current quarter were $10.1 million, an 8.3% increase compared to the prior year third quarter[142]. - R&D expenses were $1.9 million in the current quarter, a 38.0% increase compared to the third quarter of the prior year[142]. - The company reported a net loss of $0.4 million or $0.06 per basic share for the third quarter of the current year[145]. - The company reported net income of $7.2 million, or $1.00 per diluted share, for the first nine months of the current year[155]. Debt and Financial Health - The company recorded a $4.5 million gain on extinguishment of debt after the SBA approved the forgiveness of a $4.4 million PPP Loan[133]. - The company implemented expense reduction and cash preservation initiatives in response to the COVID-19 pandemic, including the suspension of quarterly cash dividends[168]. - The term loan under the Amended Credit Agreement requires quarterly installments, with the entire remaining principal balance due on September 30, 2025[169]. - The net cash position decreased to $8.7 million at October 30, 2021, from $11.4 million at year-end, impacted by cash outflows for debt refinancing and capital expenditures[180]. Inventory and Cash Flow - The company has increased its inventory investments to mitigate potential shortages due to supply chain disruptions[123]. - Accounts receivable decreased to $16.4 million at the end of the third quarter, down from $17.4 million at year-end, with days sales outstanding improving to 47 days from 51 days[179]. - Inventory balance increased to $31.7 million at the end of the third quarter, compared to $30.1 million at year-end, with inventory days on hand rising to 154 days from 147 days[180]. - Net cash provided by operating activities decreased to $3.8 million for the first nine months of fiscal 2022, down from $11.7 million in the same period of the previous year, primarily due to a decrease in cash provided by working capital[178]. Market Conditions and Challenges - The company experienced a revenue reduction of approximately $1.5 million in Q3 FY2022 due to supply shortages caused by the COVID-19 pandemic[123]. - The Test and Measurement segment's sales of flight deck printers for Boeing 737 aircraft have been severely impacted, with production halts leading to low order levels[128]. - The company anticipates that the recovery in demand for aerospace products will be slow, tied to the pace of Boeing's manufacturing and delivery schedules[130]. - The Product Identification segment has been negatively impacted by travel restrictions, affecting sales efforts and in-person demonstrations[125]. - The financial health of airlines and airframe manufacturers remains stressed, impacting the demand for the company's products in the aerospace sector[131]. - The diversified nature of the company's end markets is expected to provide stability to the Product Identification segment in the near and longer term[127]. - The company faces risks including declining demand in the test and measurement markets and challenges in developing new products[184].

Financial Data and Key Metrics Changes - Overall revenue for Q2 2022 was $29.8 million, an increase of 8% year-over-year and 3% sequentially from Q1 2022 [7][17] - Gross profit reached $11.1 million, up 13% from the previous year, with a gross margin of 37.1%, an increase of 170 basis points [17] - Net income was $978,000, or $0.13 per diluted share, compared to essentially break-even last year [17] - EBITDA was reported at $2.1 million, representing 7.2% of revenue, while adjusted EBITDA was $2.6 million, or 8.6% of revenue [17] Business Line Data and Key Metrics Changes - Product Identification revenue increased by 9% to $23.1 million, with strong contributions from hardware, supply, and service categories [9] - Test & Measurement segment revenue rose by 5% year-over-year and 6% sequentially, with notable sales increases in printers, supplies, parts, and repairs [11] - Operating income for the Product Identification segment was $188,000, down from the prior year, while Test & Measurement segment operating profit was $907,000, up from a loss last year [18] Market Data and Key Metrics Changes - Domestic revenue accounted for 57.7% of total revenue, while international revenue made up 42.3% [19] - The aerospace market showed signs of recovery, particularly in the U.S., Europe, and China, although international travel remains below pre-pandemic levels [11] Company Strategy and Development Direction - The company is focusing on increasing inventory levels as a precaution against ongoing supply chain issues [8] - Continued investment in digital marketing and product development is emphasized, with plans to attend major trade shows to enhance customer engagement [10] - The company is positioned to capitalize on growth opportunities in both the Product Identification and Test & Measurement segments [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged supply chain challenges but noted they did not significantly impact revenue [20] - The company anticipates a positive revenue trajectory for the Test & Measurement segment in the second half of the year [12] - Management expressed confidence in the recovery of the aerospace market and the demand for their products [11] Other Important Information - The company recorded benefits from the CARES Act, including loan forgiveness and employee retention credits, which positively impacted financial results [14][15] - Cash equivalents at the end of the quarter were $11.4 million, with debt reduced to $9.5 million [21] Q&A Session Summary Question: How much of revenue was impacted by supply chain issues? - Management indicated that while supply chain issues did have some effect, it was not significant and they were able to fulfill most demand [24][25] Question: What is the recurring revenue aspect for Q2? - Supplies revenue for the quarter was $18.7 million, up 9% from the prior year [31] Question: What is the outlook for the A&D side? - Management highlighted a new multiyear government program in the Test & Measurement segment, indicating strong future benefits from this initiative [30] Question: Will both segments see growth in the second half? - Management confirmed that both segments are expected to perform well in the second half of the year [33]

Financial Performance - Revenue for the current quarter was $29.8 million, an 8.6% increase from $27.7 million in the prior year[124]. - International revenue for the second quarter was $12.7 million, a 29.3% increase from the previous year, accounting for 42.4% of total revenue[124]. - Gross profit for the current quarter was $12.7 million, a 29.9% increase from $9.8 million in the prior year, with a gross profit margin of 42.6%[128]. - Operating expenses decreased by 3.3% to $9.3 million compared to $9.6 million in the prior year, with selling and marketing expenses down 8.9%[129]. - Net income for the current quarter was $7.0 million, or $0.96 per diluted share, compared to $3,000 or $0.00 per diluted share in the prior year[132]. - Revenue for the first six months was $58.9 million, a slight increase from the previous year's $58.6 million[134]. - International revenue for the first six months was $25.0 million, a 19.7% increase from $20.9 million in the prior year[134]. - Gross profit for the first six months was $23.6 million, a 14.3% increase from $20.6 million in the prior year, with a gross profit margin of 40.1%[137]. - Net income for the first six months was $7.6 million, or $1.04 per diluted share, compared to $0.4 million or $0.06 per diluted share in the prior year[142]. Segment Performance - Revenue from the Product Identification segment increased by 8.6% to $23.5 million in Q2 2021, compared to $21.6 million in Q2 2020[145]. - Product Identification segment operating profit was $4.4 million in Q2 2021, with a profit margin of 18.8%, up from $3.1 million and 14.5% in the prior year[145]. - Revenue from the T&M segment was $6.4 million in Q2 2021, a 5.4% increase from $6.0 million in Q2 2020[148]. - T&M segment operating profit was $1.7 million in Q2 2021, reflecting a profit margin of 26.9%, compared to an operating loss of $0.4 million in the prior year[148]. - For the first six months of 2021, Product Identification revenue increased by 5.9% to $46.6 million from $44.0 million in the same period of 2020[147]. - T&M segment revenue decreased by 15.3% to $12.3 million in the first six months of 2021, down from $14.6 million in the prior year[149]. Impact of COVID-19 - The company reported a significant impact on sales due to the COVID-19 pandemic, particularly in the Product Identification segment, where travel restrictions hindered in-person demonstrations[112]. - The company experienced difficulties in obtaining raw materials and components, leading to increased costs and reduced production capacity, although customer relationships remained stable[111]. - The pandemic has led to a shift towards digital advertising and remote demonstrations, which may become permanent adaptations in the sales strategy[113]. - The company implemented expense reduction and cash preservation initiatives in response to the COVID-19 pandemic[156]. - The company anticipates risks related to the ongoing COVID-19 pandemic, declining demand in test and measurement markets, and competition in the specialty printer or data acquisition industries[174]. Debt and Financing - The company recorded a $4.5 million gain on extinguishment of debt following the forgiveness of a $4.4 million PPP Loan by the SBA[120]. - The company qualified for an employee retention credit of $3.1 million, which was recognized as a reduction in various expense categories, including $1.7 million in cost of revenue[122]. - The company had cash and cash equivalents of $11.4 million as of July 31, 2021, with no outstanding balance on its revolving line of credit[156]. - The Amended Credit Agreement provides a term loan of $10.0 million and a $22.5 million revolving credit facility[155]. - The Amended Credit Agreement expires on September 30, 2025, significantly extending the tenor and increasing operational flexibility[153]. - The company borrowed $4.4 million under the Paycheck Protection Program (PPP) on May 6, 2020, with a maturity date of May 6, 2022, and an interest rate of 1.0% per annum[165]. - The entire $4.4 million principal balance of the PPP Loan was forgiven by the SBA, resulting in a $4.5 million gain on extinguishment of debt recorded in Other Income for the three and six months ended July 31, 2021[167]. Supply Chain and Inventory Management - The company is monitoring supply chain issues and has implemented strategies to manage inventory and supplier relationships amid ongoing uncertainties[111]. - Accounts receivable decreased to $15.6 million at the end of the second quarter, down from $17.4 million at year-end, with days sales outstanding improving to 45 days from 51 days[169]. - Inventory balance was $29.1 million at the end of the second quarter of fiscal 2022, a slight decline from $30.1 million at year-end, with inventory days on hand increasing to 153 days[170]. - The net cash position remained consistent at $11.4 million, with cash outflows including $2.6 million for debt refinancing and $1.2 million for property, plant, and equipment acquisitions[170]. Market and Risk Disclosures - The company has not reported any material changes to its market risk disclosures for the six months ended July 31, 2021[176]. - There have been no material changes to the company's contractual obligations as disclosed in the Annual Report for the fiscal year ended January 31, 2021[171].

Financial Data and Key Metrics Changes - For Q1 fiscal 2022, revenue was $29.1 million, a decrease of 6% from the prior year, primarily due to softness in the aerospace segment [7][8] - Operating profit increased nearly 11%, reflecting effective cost management despite a decline in revenue [8] - Adjusted EBITDA for Q1 was $2.5 million, or 8.6% of revenue, compared to $2.6 million, or 8.3% in the same period of fiscal 2021 [16] Business Line Data and Key Metrics Changes - Product identification revenue rose 3% to $23.1 million, driven by strong performance in the T3-OPX printing system [8] - Test and measurement segment revenue fell 30% year-over-year, impacted by the pandemic and slow recovery in the aerospace industry [10] - Hardware revenue decreased to $7.6 million from $8.9 million, while supplies revenue was $18.2 million compared to $19.1 million in the prior year [13][14] Market Data and Key Metrics Changes - International revenue accounted for nearly 43% of total revenue, up from 36% in the first quarter of fiscal 2021, indicating a positive trend in global sales [9] - Domestic sales represented 57% of total revenue, down from 64% in the same quarter last year [9] Company Strategy and Development Direction - The company is focusing on core strategic tenets, including innovation, global expansion, and delivering efficient products [18] - A tier one supply agreement with Airbus was established, allowing direct supply of printers for the A320 family, enhancing the company's position in the aerospace market [11][12] Management Comments on Operating Environment and Future Outlook - Management noted signs of recovery in certain areas as economies reopen and air travel increases, although the overall aerospace industry recovery is expected to take time [7][11] - The company anticipates a gradual recovery in the aerospace sector, with increasing orders in product identification and MRO segments [27][28] Other Important Information - The company is proactively managing supply chain challenges and has not experienced significant shortages, although some additional costs have been incurred [15] - Cash and equivalents at the end of the quarter stood at $11.4 million, with debt reduced to $9.6 million from $12.4 million [16] Q&A Session Summary Question: Regarding tier one status with Airbus, does this eliminate fees to Honeywell? - Management confirmed that there are no fees related to Boeing and negotiations with Honeywell are ongoing to finalize the transition [19] Question: What is the status of the 737 backlog? - Management indicated that while the backlog is starting to flow, it remains a small portion of overall bookings, with expectations for gradual increases [21] Question: What is the inventory situation for printers? - Management stated that Boeing typically keeps a low inventory of printers, maintaining a buffer to avoid production slowdowns [23] Question: What is the revenue percentage from APAC and growth opportunities? - Management did not disclose specific percentages but indicated strong growth potential in China, expecting revenues to double year-over-year [25] Question: How does the company see fiscal 2022 progressing from Q1? - Management highlighted a positive trend in orders for product identification and gradual recovery in aerospace, driven by macroeconomic factors [27][28]

Revenue Performance - Total revenue for the first quarter of fiscal 2021 was $29.1 million, a 6.0% decrease from $30.9 million in the same quarter of the previous year[122]. - Product Identification segment revenue was $23.1 million, accounting for 79.4% of total revenue, with a 3.2% increase compared to $22.4 million in the prior year[123]. - Test & Measurement segment revenue decreased by 30.0% to $6.0 million from $8.5 million in the previous year[123]. - International revenue for the first quarter was $12.4 million, representing 42.6% of total revenue and reflecting an 11.3% increase from the previous year[123]. - Supplies revenue was $18.2 million, a 4.7% decrease from $19.1 million in the prior year, mainly due to lower ink jet and thermal film supplies revenue[125]. - Service and other revenues increased by 11.5% to $3.3 million compared to $2.9 million in the prior year, driven by increased parts and repair revenue[125]. Profitability - Gross profit for the first quarter was $10.9 million, consistent with the prior year's gross profit, with a gross profit margin of 37.4%, up 2.3 percentage points from 35.1%[126]. - Net income for the first quarter of the current year was $0.6 million or $0.08 per diluted share, compared to $0.4 million or $0.06 per diluted share in the prior year[129]. - Revenue from the Product Identification segment increased by 3.2% to $23.1 million, while segment operating profit was $2.7 million with a profit margin of 11.8%[132]. - Revenue from the Test & Measurement segment decreased by 30.0% to $6.0 million, but segment operating profit improved to $0.4 million with a profit margin of 5.9%[133]. Expenses - Operating expenses for the current quarter were $10.2 million, consistent with the prior year's first quarter[127]. - Selling and marketing expenses increased by 2.8% to $6.1 million compared to the first quarter of the prior year[127]. - R&D expenses decreased by 11.5% to $1.7 million, representing 5.9% of revenue compared to 6.3% in the prior year[127]. Cash Flow and Financial Position - Cash and cash equivalents were $11.4 million as of May 1, 2021, with no outstanding balance on the revolving line of credit[140]. - The cash position remained stable at $11.4 million, with cash outflows including $2.6 million for debt refinancing and $0.5 million for property, plant, and equipment acquisitions[154]. - Net cash provided by operating activities increased to $3.9 million for the first three months of fiscal 2022, up from $3.4 million in the same period of the previous year, primarily due to an increase in working capital[151]. - Accounts receivable decreased to $15.2 million at the end of the first quarter, down from $17.4 million at year-end, with days sales outstanding declining to 47 days from 51 days[152]. - Inventory balance was $29.5 million at the end of the first quarter, a slight decrease from $30.1 million at year-end, with inventory days on hand decreasing to 146 days from 147 days[153]. Strategic Initiatives - The company has faced challenges in obtaining raw materials and components due to the COVID-19 pandemic, impacting efficiency and customer satisfaction[111]. - The company’s growth strategy focuses on organic growth through product innovation and strategic acquisitions to complement existing core businesses[107]. - The company implemented expense reduction and cash preservation initiatives in response to the COVID-19 pandemic[140]. Tax and Loan Information - The company recognized a federal, state, and foreign income tax benefit of $227,000, resulting in a negative effective tax rate of 62.0%[129]. - The Amended Credit Agreement provides for a term loan of $10.0 million and a $22.5 million revolving credit facility[139]. - The company fully utilized the PPP Loan proceeds for qualifying expenses in fiscal 2021 and has applied for forgiveness of the loan, including accrued interest, in the first quarter of the current year[150]. - Interest accrued on the PPP Loan amounted to $44,000 through May 1, 2021, with no payments due at this time[149]. - The company anticipates that a portion of the PPP Loan may be forgiven, with the amount allocated to payroll costs capped at 60% of the forgiven amount[150]. Market Risks - There were no material changes to market risk disclosures during the three months ended May 1, 2021, as stated in the Annual Report[159]. - The company continues to face risks related to economic conditions, supply chain dependencies, and competition in the specialty printer and data acquisition industries[158]. - The company has not reported any material changes to its contractual obligations since the last annual report[155].

Financial Performance - In fiscal 2021, revenue from customers outside the United States was $45.1 million, down from $49.8 million in 2020 and $53.0 million in 2019, indicating a decline of approximately 9.4% year-over-year[84]. - Net revenue for fiscal 2021 was $116.0 million, a 13.0% decrease from $133.4 million in fiscal 2020[91]. - Domestic revenue declined by 15.3% to $70.9 million, while international revenue decreased by 9.4% to $45.1 million[91]. - Gross profit for fiscal 2021 was $41.4 million, reflecting a 15.2% decline from $48.8 million in fiscal 2020[92]. - Net income for fiscal 2021 was $1.3 million, or $0.18 per diluted share, down from $1.8 million, or $0.24 per diluted share in fiscal 2020[92]. Revenue Breakdown - Hardware revenue fell by 30.3% to $34.1 million, primarily due to lower sales in the T&M segment related to aerospace printers[91]. - Revenue from the PI segment increased by 2.4% to $90.3 million, driven by demand for Trojan Label product supplies[96]. - T&M segment revenue decreased by 43.2% to $25.8 million, impacted by the Boeing 737 MAX grounding and COVID-19[97]. Research and Development - The company invested $6.2 million in research and development in fiscal 2021, a decrease from $8.1 million in 2020 and $7.8 million in 2019, reflecting a reduction of 23.5% year-over-year[84]. - Research & development costs decreased by 23.2% to $6.2 million, representing 5.3% of net revenue[92]. Operational Challenges - Sales of Product Identification hardware were negatively impacted by travel restrictions, with a shift towards digital advertising and remote demonstrations to mitigate losses[87]. - The production of Boeing 737 MAX aircraft was halted, leading to very low levels of new printer orders and shipments, with recovery expected to be prolonged[89]. - Demand for aerospace spare products, paper, parts, and repairs has significantly declined due to reduced air travel, impacting revenues and results of operations[89]. - The company has maintained most of its manufacturing operational capacity but faced reduced production capacity and longer order fulfillment lead times due to COVID-19[86]. - The company expects that the lasting presence of COVID-19 will continue to adversely impact operational capacity and financial results in the near term[86]. Cost Management - The company plans to continue reducing costs while maintaining sufficient capabilities to support customers and meet quality requirements[89]. - Operating expenses decreased by 16.0% to $38.9 million, with selling and marketing expenses down by 13.3%[92]. Liquidity and Financing - The company secured a $4.4 million PPP loan to address liquidity concerns during the COVID-19 pandemic[98]. - The company entered into an Amended and Restated Credit Agreement providing for a term loan of $10.0 million and a revolving credit facility of $22.5 million, expiring on September 30, 2025[100]. - As of January 31, 2021, the company had cash and cash equivalents of $11.4 million and $22.5 million available for borrowing under the Amended Credit Agreement[100]. - The company suspended its quarterly cash dividend beginning with the second quarter of fiscal year 2021 in response to the COVID-19 pandemic[100]. Inventory and Receivables - The accounts receivable balance decreased to $17.4 million at January 31, 2021, down from $19.8 million at January 31, 2020, reflecting lower full-year revenues[105]. - The year-end inventory balance decreased to $30.1 million at January 31, 2021, compared to $33.9 million at January 31, 2020, due to lower production demand[105]. Debt and Obligations - Total debt stands at $12,576,000, with $5,326,000 due in less than 1 year and $7,250,000 due in 1-3 years[108]. - Interest on debt is recorded at $648,000, with $496,000 due in less than 1 year and $152,000 in 1-3 years[108]. - The term loan requires quarterly installments starting at $187,500, increasing to $500,000 by fiscal 2025, with the entire remaining balance due on September 30, 2025[101]. Risk Management - Bad debt expense was less than 1% of net sales for both fiscal 2021 and 2020, indicating effective credit risk management[111]. - The company has established a reserve for warranty claims based on historical data, affecting future results if actual costs differ from estimates[111]. - A hypothetical 10% change in foreign currency translation rates would result in a consolidated net income change of approximately $0.3 million for the year ended January 31, 2021[116]. - Foreign exchange gains from transactional exposure amounted to $0.6 million for the year ended January 31, 2021[116]. - A 100 basis point change in interest rates on the outstanding balance of variable-rate debt would impact annual results by approximately $0.1 million[117].

Financial Data and Key Metrics Changes - For fiscal 2021, AstroNova reported a net income of $1.3 million, down $475,000 from the previous year, while adjusted EBITDA increased by $825,000 year-over-year [9][20] - The company experienced a 13% or $17.4 million decrease in overall revenue year-over-year, resulting in full-year operating income of $2.4 million, which remained level with fiscal 2020 [9][18] - Cash and equivalents at year-end 2021 were $11.4 million, significantly up from $4.2 million at the end of the prior year, while debt decreased from $19.8 million to $12.4 million [20][21] Segment Data and Key Metrics Changes - The Product Identification segment saw revenue increase by more than 13% to $23.4 million in Q4, with full-year segmental revenue reaching $90.3 million, marking eight consecutive years of growth [10][11] - Test & Measurement segment revenue dropped to $6.1 million in Q4 from $9.8 million in the same period of fiscal 2020, but showed a 19% sequential increase quarter-over-quarter [12][16] Market Data and Key Metrics Changes - Domestic revenue accounted for approximately 56% of total revenue in Q4, down from 63% in the same period of 2020, while international revenue increased to 44% from 37% [14] - The company noted a recovery in the commercial aerospace business, driven by the return of the Boeing 737 MAX and increasing passenger numbers due to vaccine rollouts [13][14] Company Strategy and Development Direction - AstroNova remains focused on innovation, planning to launch at least one major new product per year, alongside technology innovations and ancillary products [22] - The company is exploring M&A opportunities as part of its growth strategy, alongside product development and organic growth [27][28] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the aerospace sector, predicting a return to pre-COVID revenue levels within two to four years, with expectations of higher margins due to cost reductions and operational efficiencies [49][50] - The company highlighted the importance of maintaining operational capacity and reinvesting in the business to support future growth [27][28] Other Important Information - AstroNova's liquidity profile has improved significantly, with a new bank credit agreement enhancing credit availability and reducing amortization payments [21] - The company has maintained operational continuity throughout the pandemic, being deemed an essential business [15] Q&A Session Summary Question: Are there any remaining restrictions on capital allocation after paying off the PPP loan? - Management indicated that there are no significant restrictions [25] Question: Is the company looking at M&A opportunities post-COVID? - Management confirmed that they are considering M&A opportunities while ensuring sufficient capacity for ongoing operations [26][28] Question: How will profits evolve as the aerospace sector recovers? - Management expects to see margin improvements as the aerospace sector ramps up, although initial recovery may be slow [30][49] Question: What new product introductions are planned for 2021? - Management hinted at a major product release during the fall trade show season but did not provide specific details [34] Question: How has COVID impacted airlines' decisions regarding new or upgraded printers? - Management noted that airlines are beginning to reengage in upgrading their printers as they recover financially [42][43] Question: How is the supply chain currently performing? - Management reported that while there are some supply chain challenges, a surplus from previous downturns is cushioning disruptions [45]

Part I. Financial Information This section presents AstroNova's unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents AstroNova, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of income, comprehensive income, changes in shareholders' equity, and cash flows, along with detailed notes explaining the company's business, accounting policies, revenue recognition, debt, and segment performance [Unaudited Condensed Consolidated Balance Sheets](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheets show AstroNova's financial position as of October 31, 2020, and January 31, 2020, indicating a decrease in total assets and liabilities, while shareholders' equity increased Unaudited Condensed Consolidated Balance Sheets | Metric | Oct 31, 2020 (in thousands) | Jan 31, 2020 (in thousands) | | :--------------------- | :-------------------------- | :-------------------------- | | Total Assets | $113,309 | $116,664 | | Total Liabilities | $40,271 | $45,289 | | Total Shareholders' Equity | $73,038 | $71,375 | [Unaudited Condensed Consolidated Statements of Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income) The statements of income detail the company's financial performance for the three and nine months ended October 31, 2020, and November 2, 2019, revealing significant declines in revenue and net income for both periods Unaudited Condensed Consolidated Statements of Income | Metric (in thousands) | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :-------------------- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Revenue | $28,017 | $33,318 | $86,595 | $102,967 | | Net Income | $12 | $456 | $447 | $3,108 | | Net Income per Share - Basic | $0.00 | $0.06 | $0.06 | $0.44 | | Net Income per Share - Diluted | $0.00 | $0.06 | $0.06 | $0.43 | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) The statements of comprehensive income (loss) show a shift from comprehensive income to loss for the three-month period and a significant decrease for the nine-month period ended October 31, 2020, primarily influenced by foreign currency translation adjustments and changes in derivative values Unaudited Condensed Consolidated Statements of Comprehensive Income | Metric (in thousands) | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :-------------------- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Net Income | $12 | $456 | $447 | $3,108 | | Other Comprehensive Income (Loss) | $(142) | $152 | $36 | $(305) | | Comprehensive Income (Loss) | $(130) | $608 | $483 | $2,803 | [Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This statement details the changes in shareholders' equity for the nine months ended October 31, 2020, and November 2, 2019, showing an increase in total shareholders' equity in 2020, driven by share-based compensation and net income, despite a cash dividend payment and other comprehensive loss Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity | Metric | Balance Feb 1, 2020 | Balance Oct 31, 2020 | | :-------------------- | :------------------ | :------------------- | | Total Shareholders' Equity | $71,375 | $73,038 | **Key Changes (Nine Months Ended Oct 31, 2020):** * Share-Based Compensation: $1,687k * Common Stock – Cash Dividend: $(497)k * Net Income: $447k * Other Comprehensive Loss: $(221)k [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statements outline the company's cash movements for the nine months ended October 31, 2020, and November 2, 2019, highlighting a significant increase in net cash provided by operating activities in 2020, alongside substantial financing activities including new debt and repayments Unaudited Condensed Consolidated Statements of Cash Flows | Metric (in thousands) | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :-------------------- | :-------------------------- | :------------------------- | | Net Cash Provided by Operating Activities | $11,667 | $988 | | Net Cash Used for Investing Activities | $(2,102) | $(2,422) | | Net Cash Used for Financing Activities | $(3,580) | $(1,574) | | Cash and Cash Equivalents, End of Period | $9,603 | $4,468 | [Notes to the Condensed Consolidated Financial Statements (unaudited)](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering business operations, significant accounting policies, revenue recognition, debt, segment performance, and other financial instruments [Note 1 – Business and Basis of Presentation](index=9&type=section&id=Note%201%20%E2%80%93%20Business%20and%20Basis%20of%20Presentation) AstroNova, Inc. designs, develops, manufactures, and distributes specialty printers and data acquisition/analysis systems globally, operating through two segments: Product Identification (PI) and Test & Measurement (T&M). The financial statements are unaudited and prepared in accordance with U.S. GAAP, with estimates considering the impact of COVID-19 - AstroNova operates two business segments: **Product Identification (PI)** for specialty printing systems and related supplies, and **Test & Measurement (T&M)** for aerospace flight deck printers and data acquisition systems[17](index=17&type=chunk)[18](index=18&type=chunk) - The company has a global presence with direct sales/service centers in multiple countries and over 225 independent dealers in more than 60 countries[16](index=16&type=chunk) - Management's financial estimates consider the unknown future impacts of the COVID-19 pandemic[20](index=20&type=chunk) [Note 2 – Summary of Significant Accounting Policies Update](index=10&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies%20Update) The company's accounting policies remain consistent with its prior annual report, with the recent adoption of ASU 2018-13 (Fair Value Measurement) having no material impact. The company is evaluating ASU 2020-04 (Reference Rate Reform) but does not expect a material impact - ASU 2018-13, 'Fair Value Measurement,' was adopted effective February 1, 2020, with **no material impact** on consolidated financial statements[23](index=23&type=chunk) - ASU 2020-04, 'Reference Rate Reform,' is currently being evaluated, but **no material impact** on consolidated financial statements is expected[24](index=24&type=chunk) [Note 3 – Revenue Recognition](index=10&type=section&id=Note%203%20%E2%80%93%20Revenue%20Recognition) Revenue is primarily derived from hardware sales, related supplies, repairs, maintenance, and service agreements. The report disaggregates revenue by geographic market and major product types, showing a decline in hardware and service revenue but a slight increase in supplies revenue for the three months ended October 31, 2020 - Revenue is derived from the sale of hardware (digital color label printers, OEM printing systems, portable data acquisition systems, airborne printers), related supplies, repairs and maintenance, and service agreements[26](index=26&type=chunk) Revenue by Major Product Types (in thousands) | Product Type | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | Change (%) | | :----------- | :-------------------------- | :------------------------- | :--------- | | Hardware | $7,667 | $12,160 | -36.9% | | Supplies | $17,996 | $17,655 | +1.9% | | Service & Other | $2,354 | $3,503 | -32.8% | | **Total** | **$28,017** | **$33,318** | **-15.9%** | | Product Type | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | Change (%) | | :----------- | :-------------------------- | :------------------------- | :--------- | | Hardware | $25,021 | $37,514 | -33.3% | | Supplies | $54,254 | $55,463 | -2.2% | | Service & Other | $7,320 | $9,990 | -26.7% | | **Total** | **$86,595** | **$102,967** | **-15.9%** | - Contract liabilities (deferred revenue) decreased from **$466,000** at January 31, 2020, to **$313,000** at October 31, 2020, primarily due to revenue recognition from advanced billings[30](index=30&type=chunk) [Note 4 – Net Income Per Common Share](index=11&type=section&id=Note%204%20%E2%80%93%20Net%20Income%20Per%20Common%20Share) This note provides the calculation of basic and diluted net income per common share, showing a decrease in both basic and diluted EPS for the three and nine months ended October 31, 2020, compared to the prior year Net Income Per Common Share | Metric | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :----- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Basic | $0.00 | $0.06 | $0.06 | $0.44 | | Diluted | $0.00 | $0.06 | $0.06 | $0.43 | Weighted Average Common Shares Outstanding (in thousands) | Metric | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :----- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Basic | 7,120 | 7,047 | 7,100 | 7,013 | | Diluted | 7,185 | 7,199 | 7,137 | 7,272 | [Note 5 – Intangible Assets](index=12&type=section&id=Note%205%20%E2%80%93%20Intangible%20Assets) This note details the company's intangible assets, primarily customer contract relationships and existing technology, which decreased from $25.383 million at January 31, 2020, to $22.413 million at October 31, 2020, due to amortization. No impairments were recorded Intangible Assets, Net (in thousands) | Metric | Oct 31, 2020 | Jan 31, 2020 | | :----- | :----------- | :----------- | | Net Carrying Amount | $22,413 | $25,383 | Amortization Expense (in thousands) | Period | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :----- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Expense | $1,000 | $1,100 | $3,100 | $3,200 | Estimated Amortization Expense for Next Five Fiscal Years (in thousands) | Fiscal Year | Estimated Amortization Expense | | :---------- | :----------------------------- | | 2021 | $999 | | 2022 | $3,979 | | 2023 | $3,972 | | 2024 | $3,975 | | 2025 | $3,395 | [Note 6 – Inventories](index=12&type=section&id=Note%206%20%E2%80%93%20Inventories) Inventories are valued at the lower of cost (first-in, first-out) and net realizable value, comprising materials, work-in-process, and finished goods. Total inventories, net of reserve, decreased from $33.925 million at January 31, 2020, to $30.868 million at October 31, 2020, primarily due to an increased inventory reserve Inventories, Net (in thousands) | Metric | Oct 31, 2020 | Jan 31, 2020 | | :----- | :----------- | :----------- | | Materials and Supplies | $21,058 | $20,151 | | Work-In-Process | $1,631 | $1,408 | | Finished Goods | $16,464 | $17,992 | | Inventory Reserve | $(8,285) | $(5,626) | | **Total Inventories, net** | **$30,868** | **$33,925** | [Note 7 – Credit Agreement and Debt](index=13&type=section&id=Note%207%20%E2%80%93%20Credit%20Agreement%20and%20Debt) AstroNova entered into an Amended and Restated Credit Agreement on July 30, 2020, refinancing existing debt with a new $15.2 million term loan and a $10.0 million revolving credit facility. The company repaid the entire outstanding balance under the revolving line of credit by October 31, 2020, and the new agreement includes various financial and non-financial covenants - On July 30, 2020, AstroNova entered into an Amended and Restated Credit Agreement (A&R Credit Agreement) with Bank of America, N.A., refinancing outstanding term loans and a portion of revolving loans[39](index=39&type=chunk)[41](index=41&type=chunk) - The A&R Credit Agreement provides for a **$15.2 million term loan** and a **$10.0 million revolving credit facility**, with **no outstanding balance** on the revolving line of credit at October 31, 2020[41](index=41&type=chunk)[42](index=42&type=chunk) - The loans bear interest at a variable rate based on LIBOR or a fluctuating reference rate, plus a margin tied to the company's consolidated leverage ratio, and are subject to various financial and non-financial covenants[45](index=45&type=chunk)[49](index=49&type=chunk) Long-Term Debt (in thousands) | Metric | Oct 31, 2020 | Jan 31, 2020 | | :----- | :----------- | :----------- | | USD Term Loan | $13,628 | $13,034 | | Debt Issuance Costs, net | $(156) | $(111) | | Current Portion of Term Loans | $(4,984) | $(5,208) | | **Long-Term Debt** | **$8,488** | **$7,715** | [Note 8 – Paycheck Protection Program Loan](index=15&type=section&id=Note%208%20%E2%80%93%20Paycheck%20Protection%20Program%20Loan) On May 6, 2020, AstroNova secured a $4.4 million PPP Loan, maturing May 6, 2022, with a 1.0% annual interest rate. Payments are deferred until SBA forgiveness determination, and the company intends to apply for full forgiveness in Q4 fiscal 2021, having utilized proceeds for qualifying expenses - AstroNova borrowed **$4.4 million** under the Paycheck Protection Program (PPP Loan) on May 6, 2020, with a **1.0% annual interest rate** and a maturity date of May 6, 2022[55](index=55&type=chunk)[56](index=56&type=chunk) - No payments are due on the PPP Loan until the SBA determines the forgiveness amount, provided an application is submitted within ten months from the end of the twenty-four-week period following disbursement[56](index=56&type=chunk) - The company has fully utilized the PPP Loan proceeds for qualifying expenses (payroll, rent, utilities, interest on certain debt) and expects to apply for **full forgiveness** in the fourth quarter of the current fiscal year[58](index=58&type=chunk) [Note 9 – Derivative Financial Instruments and Risk Management](index=15&type=section&id=Note%209%20%E2%80%93%20Derivative%20Financial%20Instruments%20and%20Risk%20Management) AstroNova terminated its cross-currency interest rate swap and interest rate swap on July 30, 2020, due to the A&R Credit Agreement, incurring a cash cost of approximately $0.7 million. The termination resulted in reclassification of accumulated other comprehensive loss related to the cross-currency swap into earnings, while the interest rate swap balance is being amortized - On July 30, 2020, AstroNova terminated its cross-currency interest rate swap and interest rate swap agreements, which were previously used to manage interest rate and foreign currency exchange risks[62](index=62&type=chunk) - The termination resulted in a cash cost of approximately **$0.7 million**[62](index=62&type=chunk) - A balance of **$58,000** in accumulated other comprehensive loss related to the cross-currency interest rate swap was reclassified into earnings, while **$0.2 million** related to the interest rate swap is being amortized into earnings[62](index=62&type=chunk) [Note 10 – Royalty Obligation](index=16&type=section&id=Note%2010%20%E2%80%93%20Royalty%20Obligation) The company has a guaranteed minimum royalty obligation of $15.0 million over ten years to Honeywell International, Inc. for a license to manufacture flight deck printers. As of October 31, 2020, $5.0 million has been paid, with $2.0 million classified as current liability and $6.6 million as long-term. No excess royalty expense was incurred in the current three or nine-month periods - AstroNova has a guaranteed minimum royalty payment obligation of **$15.0 million** over ten years to Honeywell International, Inc. for an exclusive license to manufacture narrow-format flight deck printers[65](index=65&type=chunk) - As of October 31, 2020, **$5.0 million** of the guaranteed minimum royalty obligation has been paid[67](index=67&type=chunk) Royalty Obligation (in thousands) | Metric | Oct 31, 2020 | | :----- | :----------- | | Current Portion of Royalty Obligation | $2,000 | | Long-Term Portion of Royalty Obligation | $6,624 | - No excess royalty expense was incurred for the three and nine months ended October 31, 2020, compared to **$0.1 million** and **$0.8 million**, respectively, in the prior year periods[67](index=67&type=chunk) [Note 11 – Leases](index=17&type=section&id=Note%2011%20%E2%80%93%20Leases) AstroNova leases facilities globally, with remaining lease terms of 1 to 8 years. As of October 31, 2020, Right of Use Assets were $1.436 million and total lease liabilities were $1.481 million, with a weighted-average remaining lease term of 5.3 years and a discount rate of 4.0% Operating Leases (in thousands) | Metric | Oct 31, 2020 | Jan 31, 2020 | | :----- | :----------- | :----------- | | Right of Use Assets | $1,436 | $1,661 | | Lease Liabilities – Current | $376 | $416 | | Lease Liabilities – Long Term | $1,105 | $1,279 | - As of October 31, 2020, the weighted-average remaining lease term for operating leases is **5.3 years**, and the weighted-average discount rate is **4.0%**[69](index=69&type=chunk) Operating Lease Costs (in thousands) | Period | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :----- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Operating Lease Costs | $120 | $119 | $362 | $329 | [Note 12 – Accumulated Other Comprehensive Loss](index=18&type=section&id=Note%2012%20%E2%80%93%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated Other Comprehensive Loss (AOCL) decreased from $(1,093)k at January 31, 2020, to $(1,057)k at October 31, 2020. This change was influenced by foreign currency translation adjustments and reclassifications from cash flow hedges to earnings due to derivative terminations Changes in Accumulated Other Comprehensive Loss (in thousands) | Component | Balance at Jan 31, 2020 | Other Comprehensive Loss before reclassification | Amounts reclassified from AOCL to Earnings | Cross-Currency Interest Rate Swap Termination | Balance at Oct 31, 2020 | | :-------- | :---------------------- | :--------------------------------------------- | :----------------------------------------- | :------------------------------------------ | :---------------------- | | Foreign Currency Translation Adjustments | $(985) | $53 | — | — | $(932) | | Cash Flow Hedges | $(108) | $(255) | $193 | $45 | $(125) | | **Total** | **$(1,093)** | **$(202)** | **$193** | **$45** | **$(1,057)** | [Note 13 – Share-Based Compensation](index=18&type=section&id=Note%2013%20%E2%80%93%20Share-Based%20Compensation) AstroNova has several equity incentive plans, including the 2018 Plan, 2015 Plan, and 2007 Plan, and a Non-Employee Director Annual Compensation Program. Total share-based compensation expense for the nine months ended October 31, 2020, was $1.687 million, an increase from the prior year Share-Based Compensation Expense (in thousands) | Metric | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :----- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Stock Options | $126 | $148 | $390 | $487 | | Restricted Stock Awards and Units | $462 | $371 | $1,284 | $1,074 | | Employee Stock Purchase Plan | $3 | $6 | $13 | $15 | | **Total** | **$591** | **$525** | **$1,687** | **$1,576** | - As of October 31, 2020, approximately **$0.4 million** of unrecognized compensation expense related to stock options and **$2.0 million** related to RSUs and RSAs are expected to be recognized over a weighted average period of approximately **0.9 years**[77](index=77&type=chunk)[78](index=78&type=chunk) - Under the Employee Stock Purchase Plan, **12,098 shares** were purchased during the nine months ended October 31, 2020, at a **15% discount**[79](index=79&type=chunk) [Note 14 – Income Taxes](index=20&type=section&id=Note%2014%20%E2%80%93%20Income%20Taxes) The effective tax rate for the three months ended October 31, 2020, was 160.0% (benefit of $32k), and for the nine months, it was 45.9% (expense of $379k). These rates were significantly impacted by decreased forecasted operating results, shortfall tax expenses, and adjustments from foreign tax returns, partially offset by tax benefits from the expiration of the statute of limitations Effective Tax Rates | Period | Fiscal 2021 (Oct 31, 2020) | Fiscal 2020 (Nov 2, 2019) | | :----- | :------------------------- | :------------------------ | | 3 Months Ended | 160.0% | (118.2)% | | 9 Months Ended | 45.9% | 5.5% | Income Tax (Benefit) Provision (in thousands) | Period | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :----- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Income Tax (Benefit) Provision | $(32) | $(247) | $379 | $182 | - The effective tax rates were impacted by a significant decrease in forecasted operating results for fiscal 2021, shortfall tax expenses, and adjustments from foreign tax returns, partially offset by tax benefits from the expiration of the statute of limitations on uncertain tax positions[81](index=81&type=chunk)[82](index=82&type=chunk) - Cumulative unrecognized tax benefits totaled **$319,000** as of October 31, 2020, down from **$362,000** as of January 31, 2020[83](index=83&type=chunk) [Note 15 – Segment Information](index=21&type=section&id=Note%2015%20%E2%80%93%20Segment%20Information) AstroNova reports two segments: Product Identification (PI) and Test & Measurement (T&M). PI revenue increased by 5.3% in Q3 2021, while T&M revenue decreased by 55.8% due to the Boeing 737 MAX grounding and COVID-19. For the nine months, PI revenue slightly decreased by 0.9%, and T&M revenue significantly decreased by 44.5% Revenue by Segment (in thousands) | Segment | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | Change (%) | | :------ | :-------------------------- | :------------------------- | :--------- | | Product Identification | $22,898 | $21,749 | +5.3% | | Test & Measurement | $5,119 | $11,569 | -55.8% | | **Total** | **$28,017** | **$33,318** | **-15.9%** | | Segment | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | Change (%) | | :------ | :-------------------------- | :------------------------- | :--------- | | Product Identification | $66,907 | $67,484 | -0.9% | | Test & Measurement | $19,688 | $35,483 | -44.5% | | **Total** | **$86,595** | **$102,967** | **-15.9%** | Segment Operating Profit (Loss) (in thousands) | Segment | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | Change (%) | | :------ | :-------------------------- | :------------------------- | :--------- | | Product Identification | $3,521 | $1,880 | +87.3% | | Test & Measurement | $(751) | $1,397 | -153.8% | | Segment | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | Change (%) | | :------ | :-------------------------- | :------------------------- | :--------- | | Product Identification | $9,813 | $6,990 | +40.4% | | Test & Measurement | $(1,314) | $5,533 | -123.7% | [Note 16 – Fair Value](index=21&type=section&id=Note%2016%20%E2%80%93%20Fair%20Value) The company's financial liabilities measured at fair value, primarily derivative instruments, were zero at October 31, 2020, following the termination of swap contracts. Long-term debt is not recorded at fair value but its fair value is estimated using discounted cash flows and classified as Level 3 Liabilities Measured at Fair Value (in thousands) | Liability | Oct 31, 2020 | Jan 31, 2020 | | :-------- | :----------- | :----------- | | Cross-Currency Interest Rate Swap Contract | $0 | $250 | | Interest Rate Swap Contract | $0 | $96 | | Earnout Liability | $0 | $14 | | **Total Liabilities** | **$0** | **$360** | Long-Term Debt and Related Current Maturities (in thousands) | Metric | Fair Value (Oct 31, 2020) | Carrying Value (Oct 31, 2020) | | :----- | :------------------------ | :---------------------------- | | Long-Term debt and related current maturities | $13,637 | $13,628 | - Derivative instruments were measured at fair value using readily observable market inputs and classified as Level 2. Long-term debt's fair value is estimated by discounting future cash flows using current interest rates and classified as Level 3[85](index=85&type=chunk)[87](index=87&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on AstroNova's financial condition and operational results, detailing business segments, the impact of COVID-19 on both Product Identification and Test & Measurement segments, a comparative analysis of financial performance, and an overview of liquidity and indebtedness [Business Overview](index=22&type=section&id=Business%20Overview) AstroNova is a multinational company specializing in data visualization technologies, offering specialty printers and data acquisition/analysis systems through its Product Identification (PI) and Test & Measurement (T&M) segments. The company's growth strategy focuses on organic innovation and strategic acquisitions, notably the Honeywell agreement for aerospace printers - AstroNova leverages proprietary data visualization technologies to design, develop, manufacture, distribute, and service specialty printers and data acquisition/analysis systems[89](index=89&type=chunk) - The company operates through two segments: **Product Identification (PI)**, offering digital label printers and supplies, and **Test and Measurement (T&M)**, providing data acquisition systems and aerospace printers[89](index=89&type=chunk) - Growth strategy centers on organic growth through product innovation (R&D) and strategic acquisitions, such as the exclusive license to manufacture Honeywell's narrow-format flight deck printers for Boeing 737 and Airbus 320 aircraft[90](index=90&type=chunk)[91](index=91&type=chunk) [COVID-19 Update - Overview](index=23&type=section&id=COVID-19%20Update%20-%20Overview) The COVID-19 pandemic has materially impacted AstroNova's business, leading to operational modifications, staffing reductions (furloughs, work-share programs), and increased remote work. While manufacturing capacity was maintained initially, a recent surge in infections has caused increased absenteeism, longer order fulfillment times, and reduced revenue, with potential for future raw material difficulties - The global COVID-19 pandemic has materially and adversely affected AstroNova's business, impacting operations, customers, suppliers, and financial markets[93](index=93&type=chunk) - The company implemented staffing reductions (furloughs, work-share programs) and increased remote work for non-production team members[94](index=94&type=chunk)[95](index=95&type=chunk) - Subsequent to the fiscal third quarter, increased COVID-19 infections in manufacturing facilities led to higher absenteeism, reduced productive capacity, longer order fulfillment times, and reduced revenue[97](index=97&type=chunk) - Experienced limited and temporary difficulties in obtaining raw materials and components, with potential for more extensive impacts in the future[98](index=98&type=chunk) [Product Identification Update](index=23&type=section&id=Product%20Identification%20Update) The PI segment experienced adverse impacts on hardware sales due to travel restrictions and trade show cancellations, but offset this with digital advertising and remote demonstrations. Demand for ink, toner, media, and parts supplies remained strong, particularly from food & beverage and other consumer goods customers, contributing favorably to operating results - Sales of Product Identification hardware products were adversely impacted by travel restrictions and the cancellation of trade shows[99](index=99&type=chunk) - Negative impacts were offset by increased reliance on digital advertising and internet-based marketing techniques, including remote video demonstrations[99](index=99&type=chunk) - Demand for ink, toner, media, and parts supplies remained strong, especially from food & beverage and other consumer goods customers, favorably contributing to operating results[101](index=101&type=chunk) [Test & Measurement Update](index=24&type=section&id=Test%20%26%20Measurement%20Update) The T&M segment has been severely impacted by the Boeing 737 MAX grounding and the COVID-19 pandemic's effect on global air travel. This has led to very low new printer orders and shipments, reduced demand for most aircraft models, and declines in aerospace spare products, paper, parts, and repairs. The recovery timing and pace remain uncertain, dependent on vaccine availability and air travel demand - Sales of flight deck printers for narrow-body Boeing 737 aircraft were severely impacted by the **737 MAX grounding** and production halt[103](index=103&type=chunk)[105](index=105&type=chunk) - Global air travel demand precipitously declined due to the COVID-19 pandemic, leading to reduced order demand from airlines for new aircraft and significantly impacting demand for aerospace spare products, paper, parts, and repairs[106](index=106&type=chunk)[107](index=107&type=chunk) - The timing and rate of industry recovery remain uncertain, dependent on the availability and acceptance of effective vaccines and treatments for COVID-19[106](index=106&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) This section analyzes AstroNova's financial performance for the three and nine months ended October 31, 2020, compared to the prior year, highlighting significant revenue declines, particularly in the T&M segment, and the resulting impact on gross profit, operating expenses, and net income [Three Months Ended October 31, 2020 vs. Three Months Ended November 2, 2019](index=25&type=section&id=Three%20Months%20Ended%20October%2031,%202020%20vs.%20Three%20Months%20Ended%20November%202,%202019) For the three months ended October 31, 2020, total revenue decreased by 15.9% to $28.0 million, primarily due to a 55.8% decline in the T&M segment, partially offset by a 5.3% increase in PI. Net income significantly dropped to $12k ($0.00 diluted EPS) from $0.5 million ($0.06 diluted EPS) in the prior year, driven by lower revenue, less favorable product mix, and increased other expenses Revenue by Segment (in thousands) | Segment | Oct 31, 2020 | Nov 2, 2019 | % Change | | :------ | :----------- | :---------- | :------- | | Product Identification | $22,898 | $21,749 | 5.3% | | T&M | $5,119 | $11,569 | (55.8)% | | **Total** | **$28,017** | **$33,318** | **(15.9)%**| - Hardware revenue decreased by **36.9%** to **$7.6 million**, primarily due to a **56.2% decrease** in the T&M segment, partially offset by a **4.8% increase** in PI hardware sales[110](index=110&type=chunk) - Supplies revenue increased by **1.9%** to **$18.0 million**, driven by ink jet and electrophotographic supplies in the PI segment[111](index=111&type=chunk) - Gross profit margin declined by **2.2 percentage points** to **34.7%**, primarily due to decreased revenue and less favorable product mix[113](index=113&type=chunk) - Operating expenses decreased by **21.4%** to **$9.3 million**, driven by reductions in selling and marketing, general and administrative, and R&D expenses[114](index=114&type=chunk) - Net income was **$12,000** (**$0.00 diluted EPS**), a significant decrease from **$0.5 million** (**$0.06 diluted EPS**) in the prior year[118](index=118&type=chunk) [Nine Months Ended October 31, 2020 vs. Nine Months Ended November 2, 2019](index=26&type=section&id=Nine%20Months%20Ended%20October%2031,%202020%20vs.%20Nine%20Months%20Ended%20November%202,%202019) For the nine months ended October 31, 2020, total revenue decreased by 15.9% to $86.6 million, with PI revenue slightly down by 0.9% and T&M revenue significantly down by 44.5%. Net income was $0.4 million ($0.06 diluted EPS), a substantial decrease from $3.1 million ($0.43 diluted EPS) in the prior year, primarily due to lower revenue and less favorable product mix, despite reduced operating expenses Revenue by Segment (in thousands) | Segment | Oct 31, 2020 | Nov 2, 2019 | % Change | | :------ | :----------- | :---------- | :------- | | Product Identification | $66,907 | $67,484 | (0.9)% | | T&M | $19,688 | $35,483 | (44.5)% | | **Total** | **$86,595** | **$102,967**| **(15.9)%**| - Hardware revenue decreased by **33.3%** to **$25.0 million**, primarily due to a **44.3% decline** in the T&M segment[120](index=120&type=chunk) - Supplies revenue decreased by **2.2%** to **$54.3 million**, mainly due to lower sales in the aerospace product group within the T&M segment[121](index=121&type=chunk) - Gross profit margin decreased by **2.3 percentage points** to **35.1%**, attributable to decreased revenue and less favorable product mix[123](index=123&type=chunk) - Operating expenses decreased by **15.5%** to **$29.1 million**, driven by lower selling and marketing, general and administrative, and R&D expenses[124](index=124&type=chunk) - Net income was **$0.4 million** (**$0.06 diluted EPS**), a substantial decrease from **$3.1 million** (**$0.43 diluted EPS**) in the prior year[127](index=127&type=chunk) [Segment Analysis](index=27&type=section&id=Segment%20Analysis) This section provides a detailed analysis of the revenue and operating profit (loss) for AstroNova's Product Identification (PI) and Test & Measurement (T&M) segments for both the three and nine months ended October 31, 2020, highlighting the divergent performance of the two segments [Product Identification](index=28&type=section&id=Product%20Identification) The Product Identification segment saw a 5.3% revenue increase in Q3 2021 to $22.9 million, driven by supplies and the new T3-OPX product launch, leading to an 87.3% increase in segment operating profit to $3.5 million. For the nine months, revenue slightly decreased by 0.9% to $66.9 million, but operating profit increased by 40.4% to $9.8 million due to lower operating costs Product Identification Segment Performance (in thousands) | Metric | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :----- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Revenue | $22,898 | $21,749 | $66,907 | $67,484 | | Segment Operating Profit | $3,521 | $1,880 | $9,813 | $6,990 | | Profit Margin | 15.4% | 8.6% | 14.7% | 10.4% | - Q3 revenue growth was primarily attributable to increases in supplies for TrojanLabel and QuickLabel product groups, and a significant contribution from the new T3-OPX product launch[129](index=129&type=chunk) - The increase in current year segment operating profit and margin for both periods was primarily due to increased sales (Q3) and lower operating costs (Q3 and 9M)[129](index=129&type=chunk)[130](index=130&type=chunk) [Test & Measurement—T&M](index=28&type=section&id=Test%20%26%20Measurement%E2%80%94T%26M) The T&M segment experienced a significant 55.8% revenue decrease in Q3 2021 to $5.1 million, and a 44.5% decrease for the nine months to $19.7 million. This decline was primarily due to the Boeing 737 MAX grounding and reduced air travel from COVID-19, resulting in an operating loss of $0.8 million in Q3 and $1.3 million for the nine months Test & Measurement Segment Performance (in thousands) | Metric | 3 Months Ended Oct 31, 2020 | 3 Months Ended Nov 2, 2019 | 9 Months Ended Oct 31, 2020 | 9 Months Ended Nov 2, 2019 | | :----- | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | | Revenue | $5,119 | $11,569 | $19,688 | $35,483 | | Segment Operating Profit (Loss) | $(751) | $1,397 | $(1,314) | $5,533 | | Profit Margin | (14.7)% | 12.1% | (6.7)% | 15.6% | - The decrease in T&M revenue for both periods was primarily attributable to the decline in sales of aerospace product lines due to the **Boeing 737 MAX grounding** and the dramatic drop in air travel from COVID-19[131](index=131&type=chunk)[132](index=132&type=chunk) - The segment shifted from an operating profit in the prior year to an operating loss in both the three and nine months ended October 31, 2020, due to lower sales revenue[131](index=131&type=chunk)[132](index=132&type=chunk) [Financial Condition and Liquidity](index=28&type=section&id=Financial%20Condition%20and%20Liquidity) This section discusses AstroNova's financial condition and liquidity, detailing the impact of COVID-19 and the 737 MAX grounding on its credit facilities, the successful renegotiation of debt, the acquisition of a PPP loan, and the company's cash flow dynamics [Overview](index=28&type=section&id=Overview) AstroNova's liquidity was impacted by declining 737 MAX revenue and COVID-19, leading to a waiver of financial covenants in Q1 fiscal 2021. The company subsequently renegotiated its credit facilities with Bank of America (A&R Credit Agreement) and secured a $4.4 million PPP Loan, significantly improving its liquidity profile. Cash and cash equivalents stood at $9.6 million at October 31, 2020, with $10.0 million available under the revolving credit facility - Deterioration of financial condition due to **737 MAX revenue decline** and COVID-19 impacts led to a violation of financial covenants in Q1 fiscal 2021, for which a waiver was obtained[134](index=134&type=chunk) - A new Amended and Restated Credit Agreement (A&R Credit Agreement) was entered into on July 30, 2020, refinancing existing debt and providing a **$10.0 million revolving credit facility**[136](index=136&type=chunk)[138](index=138&type=chunk) - A **$4.4 million Paycheck Protection Program (PPP) Loan** was secured on May 6, 2020, and the quarterly cash dividend was suspended to preserve cash[139](index=139&type=chunk)[141](index=141&type=chunk) - Cash and cash equivalents were **$9.6 million** at October 31, 2020, with **$10.0 million available** under the revolving credit facility, indicating a significant improvement in liquidity[142](index=142&type=chunk) [Indebtedness](index=29&type=section&id=Indebtedness) The A&R Credit Agreement outlines term loan repayment schedules through June 2022 and allows for voluntary prepayments. Loans bear variable interest rates tied to LIBOR or a reference rate, plus a margin based on the consolidated leverage ratio. The agreement includes financial and non-financial covenants, and obligations are secured by company assets. The $4.4 million PPP Loan is unsecured, bears 1.0% interest, and is expected to be applied for forgiveness in Q4 fiscal 2021 - The A&R Credit Agreement term loan has quarterly principal payments ranging from **$0.8 million to $1.4 million**, with the remaining balance due on **June 15, 2022**[143](index=143&type=chunk) - Loans bear interest at a variable rate based on LIBOR or a fluctuating reference rate, plus a margin that varies with the consolidated leverage ratio (**2.15%-3.65% for LIBOR, 1.15%-2.65% for reference rate**)[147](index=147&type=chunk) - The agreement includes various financial covenants (e.g., maximum consolidated leverage ratio, minimum EBITDA) and non-financial covenants (e.g., limits on future indebtedness, dividends, M&A)[148](index=148&type=chunk) - The **$4.4 million PPP Loan** is unsecured, bears **1.0% interest**, and the company intends to apply for forgiveness in Q4 fiscal 2021, having utilized proceeds for qualifying expenses[152](index=152&type=chunk)[154](index=154&type=chunk) [Cash Flow](index=31&type=section&id=Cash%20Flow) Net cash provided by operating activities significantly increased to $11.7 million for the nine months ended October 31, 2020, from $1.0 million in the prior year, primarily due to improved working capital. This was driven by a decrease in accounts receivable and inventory, partially offset by cash used for property, plant, and equipment, debt repayments, and dividends - Net cash provided by operating activities increased significantly to **$11.7 million** for the first nine months of fiscal 2021, compared to **$1.0 million** in the prior year, primarily due to increased cash from working capital changes[156](index=156&type=chunk) - Accounts receivable decreased by **$4.1 million** to **$15.7 million**, and days sales outstanding (DSO) improved to **47 days** from **55 days**, largely due to a decline in aerospace product sales which have longer collection cycles[157](index=157&type=chunk) - Inventory decreased to **$30.9 million** from **$33.9 million**, driven by sell-through of supplies in the Product Identification segment, though inventory days on hand slightly increased[158](index=158&type=chunk) - Key cash inflows included **$4.4 million** from the PPP loan and **$3.5 million** from long-term debt refinance, partially offset by **$6.5 million** net cash decrease on the revolving line of credit, debt repayments, and dividends paid[159](index=159&type=chunk) [Contractual Obligations, Commitments and Contingencies](index=31&type=section&id=Contractual%20Obligations,%20Commitments%20and%20Contingencies) There have been no material changes to the company's contractual obligations, commitments, and contingencies since the Annual Report on Form 10-K for the fiscal year ended January 31, 2020, other than those arising in the ordinary course of business - No material changes to contractual obligations, commitments, and contingencies have occurred since the Annual Report on Form 10-K for the fiscal year ended January 31, 2020, beyond those in the ordinary course of business[160](index=160&type=chunk) [Critical Accounting Policies, Commitments and Certain Other Matters](index=31&type=section&id=Critical%20Accounting%20Policies,%20Commitments%20and%20Certain%20Other%20Matters) The preparation of financial statements requires management to make significant estimates and assumptions, which are continuously re-evaluated based on relevant factors, economic conditions, and product mix. While these estimates provide a meaningful basis, actual results may differ materially. No material changes to critical accounting policies have occurred since the prior Annual Report - The preparation of condensed consolidated financial statements requires management to make significant estimates and assumptions, including those related to revenue recognition, allowances for doubtful accounts, inventory valuation, income taxes, and impairment of long-lived assets and goodwill[161](index=161&type=chunk) - Estimates are based on available facts, historical experience, economic conditions, and management's assessment of future outcomes, with actual results potentially differing materially[162](index=162&type=chunk)[163](index=163&type=chunk) - There have been no material changes to the application of critical accounting policies as disclosed in the Annual Report on Form 10-K for the fiscal year ended January 31, 2020[163](index=163&type=chunk) [Forward-Looking Statements](index=32&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Key risk factors include the ongoing COVID-19 pandemic, general economic conditions, declining demand in T&M markets, competition, ability to innovate, foreign currency impacts, integration of acquisitions, financing, and the 737 MAX certification - The report contains forward-looking statements reflecting current expectations about future events and results, identified by words such as 'believes,' 'expects,' 'intends,' and 'plans'[165](index=165&type=chunk) - Actual results may differ materially due to risks and uncertainties, including the impact of the COVID-19 pandemic, general economic conditions, declining demand in test and measurement markets (especially defense and aerospace), competition, and the ability to develop new products[165](index=165&type=chunk) - Other factors include the impact of foreign currency exchange rates, the ability to integrate acquisitions, manage indebtedness, obtain financing, and difficulties with the 737 MAX certification[165](index=165&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) There were no material changes to the company's market risk disclosures during the nine months ended October 31, 2020, compared to those reported in its Annual Report on Form 10-K for the fiscal year ended January 31, 2020 - No material changes to market risk disclosures occurred during the nine months ended October 31, 2020, compared to the Annual Report on Form 10-K for the fiscal year ended January 31, 2020[166](index=166&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of AstroNova's disclosure controls and procedures and reports on any changes in internal control over financial reporting, concluding that controls are effective and no material changes have occurred despite the challenges posed by the COVID-19 pandemic [Evaluation of Disclosure Controls and Procedures](index=32&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management, with CEO and CFO participation, concluded that the company's disclosure controls and procedures were effective as of October 31, 2020, ensuring timely and accurate recording, processing, summarizing, and reporting of required information - Management, under the supervision of the CEO and CFO, concluded that disclosure controls and procedures were effective as of October 31, 2020[167](index=167&type=chunk) - The controls ensure that information required for Exchange Act reports is recorded, processed, summarized, and reported in a timely manner, and communicated to management for timely disclosure decisions[167](index=167&type=chunk) [Changes in Internal Control over Financial Reporting](index=32&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) There were no material changes in the company's internal control over financial reporting during the most recent fiscal quarter. Despite most non-production employees working remotely due to COVID-19, the company has not experienced any material impact on its internal controls and continues to monitor the situation - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[168](index=168&type=chunk) - Despite most non-production employees working remotely due to the COVID-19 pandemic, there has been no material impact on internal controls over financial reporting[168](index=168&type=chunk) - The company is continually monitoring and assessing the COVID-19 situation to minimize potential impacts on the design and operational effectiveness of internal controls[168](index=168&type=chunk) Part II. Other Information This section covers legal proceedings, updated risk factors, equity security sales, other material information, and a list of exhibits [Item 1. Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings) There are no pending or threatened legal proceedings against AstroNova that are considered material to its financial position or results of operations - There are no pending or threatened legal proceedings against AstroNova that are material to its financial position or results of operations[170](index=170&type=chunk) [Item 1A. Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) This section updates previously disclosed risk factors, emphasizing the material adverse effects of the ongoing COVID-19 pandemic on revenues, operations, and financial condition, including increased absenteeism in manufacturing, potential supply chain disruptions, and significant disruption to the aerospace industry. The company also highlights the risk of non-compliance with credit agreement covenants and the need for alternative financing - The ongoing COVID-19 pandemic has adversely affected and will likely continue to adversely affect AstroNova's revenues, results of operations, and financial condition[172](index=172&type=chunk) - Increased COVID-19 cases among manufacturing staff have led to increased absenteeism, reduced production capacity, and longer order fulfillment times, impacting revenues[173](index=173&type=chunk) - The aerospace industry, a key market for AstroNova, has been significantly disrupted by the COVID-19 outbreak, leading to a material adverse impact on financial results[177](index=177&type=chunk) - There is a risk of inability to comply with financial and non-financial covenants in the credit agreement with Bank of America, which could materially and adversely affect the business and financial condition[178](index=178&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of fiscal 2021 (August 1 to October 31), AstroNova did not repurchase any shares of its common stock under publicly announced plans or programs - No repurchases of common stock were made during the third quarter of fiscal 2021 (August 1 – October 31)[179](index=179&type=chunk) [Item 5. Other Information](index=34&type=section&id=Item%205.%20Other%20Information) On December 3, 2020, AstroNova and its Lender amended the A&R Credit Agreement to extend the deadline for property inspections and increase the maximum capital expenditures permitted for the second, third, and fourth quarters of fiscal year 2021 - On December 3, 2020, AstroNova and Bank of America, N.A. (the Lender) amended the A&R Credit Agreement[181](index=181&type=chunk) - The amendment extended the deadline for the Lender to complete certain property inspections[181](index=181&type=chunk) - The amendment increased the maximum amount of capital expenditures permitted during the second, third, and fourth quarters of fiscal year 2021[181](index=181&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including organizational documents, a change in control agreement, a letter agreement amending the A&R Credit Agreement, CEO/CFO certifications, and XBRL-related documents - Key exhibits include Restated Articles of Incorporation, By-laws, a Change in Control Agreement, a Letter Agreement dated December 3, 2020, with Bank of America, N.A., CEO and CFO Certifications (Sarbanes-Oxley Act), and various XBRL documents[182](index=182&type=chunk) [Signatures](index=36&type=section&id=Signatures) The report is duly signed on behalf of AstroNova, Inc. by Gregory A. Woods, President and Chief Executive Officer, and David S. Smith, Vice President, Chief Financial Officer and Treasurer, as of December 9, 2020 - The report was signed by Gregory A. Woods, President and Chief Executive Officer, and David S. Smith, Vice President, Chief Financial Officer and Treasurer[185](index=185&type=chunk) - The signing date for the report was December 9, 2020[185](index=185&type=chunk)