AstroNova(ALOT) - 2023 Q4 - Annual Report

Acquisition and Segments - Astro Machine LLC, an Illinois-based manufacturer of printing equipment, was acquired on August 4, 2022, and is included in the PI segment starting Q3 fiscal 2023[9]. - The PI segment includes brands such as QuickLabel, TrojanLabel, GetLabels, and Astro Machine, providing a variety of digital color label printers and related supplies[11]. - The T&M segment includes high-speed data acquisition systems and airborne printers, serving industries such as aerospace, automotive, and energy[19]. Financial Performance and Backlog - The order backlog as of January 31, 2023, was $35.8 million, up from $27.8 million in 2022, indicating growth in demand[30]. - The company has a total indebtedness of $14.25 million in term loan variable-rate debt and $15.9 million outstanding on its revolving line of credit as of January 31, 2023[210]. - The weighted average interest rate on the company's variable rate debt was 4.77% during fiscal 2023, while the revolving line of credit had a weighted average interest rate of 6.71%[210]. - A hypothetical 10% change in foreign currency exchange rates would result in an increase or decrease in consolidated net income of approximately $0.2 million for the year ended January 31, 2023[208]. - Foreign exchange losses from transactional exposure amounted to $0.5 million for the year ended January 31, 2023[209]. Employee and Organizational Structure - The company employs 394 full-time employees as of January 31, 2023, including 40 from the Astro Machine acquisition[36]. - The company continuously assesses the risk of losing key employees and implements retention strategies focused on competitive compensation and professional development[37]. Company Strategy and Operations - The company maintains a leadership position in tabletop digital color label printing technology and flight deck printers, supported by proprietary technology and strong customer service[28]. - The company has a diverse manufacturing strategy, producing many products in-house while sourcing components from various suppliers[26]. - The company operates in over 150 countries, with no single customer accounting for 10% or more of net revenue in the last three fiscal years[29]. Corporate Culture and Values - The company is committed to diversity and inclusion, with targeted recruitment initiatives for women in technical and engineering roles[41]. - The company emphasizes a strong culture based on core values such as Customer First, Innovation, and Continuous Improvement[38]. - The AstroNova Operating System (AOS) is utilized to achieve continuous improvements in quality, delivery, cost, and growth[38]. Market Risks - The company’s revenue is impacted by the variable size of individual customer transactions, leading to fluctuations from quarter to quarter[42]. - The company’s primary financial market risks include foreign currency exchange rates and interest rate fluctuations affecting variable rate credit borrowings[205].