AstroNova(ALOT) - 2025 Q3 - Quarterly Results

Financial Performance - Net revenue for Q3 FY 2025 was $40.4 million, representing a year-over-year increase of 7.7$37.5 million in Q3 FY 2024[3]. - Net revenue for the three months ended November 2, 2024, was $40,422 million, an increase from$37,549 million for the same period last year, representing a growth of 5%[24]. - For the nine months ended November 2, 2024, net revenue was $113,922 million, up from$108,493 million, reflecting a growth of 5%[24]. - Revenue for the three months ended November 2, 2024, was $40,422 thousand, an increase of 7.9$37,549 thousand for the same period in 2023[30]. - Revenue for the nine months ended November 2, 2024, was $113,922 thousand, an increase of 5.4$108,493 thousand for the same period in 2023[30]. Profitability - GAAP net income fell to $0.2 million, or$0.03 per diluted share, down 91.3% and 91.9% respectively compared to Q3 FY 2024[3][10]. - Net income for the three months ended November 2, 2024, was $240 million, a significant decline from$2,752 million in the prior year[24]. - Operating income for the three months ended November 2, 2024, decreased to $1,264 million, resulting in an operating margin of 3.1$5,119 thousand, down 30.4% from $7,352 thousand in the prior year[30]. - Non-GAAP net income for the three months ended November 2, 2024, was$513 thousand, compared to $2,752 thousand for the same period in 2023[32]. - Adjusted EBITDA for Q3 FY 2025 was$3.2 million, down from $5.7 million in the same period last year[10]. - Adjusted EBITDA for the three months ended November 2, 2024, was$3,228 thousand, down from $5,656 thousand in the prior year[34]. Segment Performance - The Product Identification segment revenue was$26.3 million, slightly down from $26.5 million in Q3 FY 2024, with operating income dropping to$1.9 million[14]. - The Test & Measurement segment revenue increased to $14.1 million from$11.0 million in Q3 FY 2024, with operating income at $3.3 million[15]. - The company reported an operating loss of$(814) million for the three months and $(1,700) million for the nine months in the MTEX segment[40]. - Adjusted MTEX (Non-GAAP) revenue for the three months was$1,738 million, and for the nine months, it was $2,506 million[40]. - The total segment excluding MTEX (Non-GAAP) revenue for the three months was$24,579 million, and for the nine months, it was $74,161 million[40]. Costs and Expenses - GAAP gross margin decreased to 33.9$36,342 million, compared to $31,993 million in the previous year[24]. - General and administrative expenses for the three months ended November 2, 2024, were$3,855 thousand, up from $2,734 thousand in the prior year[30]. - Selling and marketing expenses for the three months were$5,644 million, and for the nine months, they totaled $15,946 million[40]. - Research and development expenses amounted to$895 million for the three months and $2,200 million for the nine months[40]. Cash Flow and Balance Sheet - Net cash provided by operating activities for the nine months ended November 2, 2024, was$2,324 million, down from $5,902 million in the prior year[28]. - Cash and cash equivalents at the end of the period were$4,432 million, a slight decrease from $4,827 million at the end of the previous year[28]. - Total assets as of November 2, 2024, were$166,462 million, an increase from $133,251 million at the beginning of the year[26]. - Total liabilities increased to$74,289 million as of November 2, 2024, compared to $42,969 million at the beginning of the year[26]. Strategic Initiatives - AstroNova is no longer providing financial guidance for fiscal 2025 and 2026 due to extended integration timelines for MTEX[8]. - The company is implementing a comprehensive cost-reduction and product-line rationalization initiative to enhance its product portfolio[8].