AstroNova(US:ALOT)2023-09-06 16:00Revenue Performance - Revenue for the second quarter of fiscal year 2024 was $35.5 million, a 10.1% increase compared to $32.3 million in the same quarter of the previous year[128] - Revenue for the first six months of the current year was $70.9 million, a 12.1% increase compared to $63.3 million in the same period last year[138] - Domestic revenue increased by 16.7% to $45.2 million, while international revenue rose by 4.9% to $25.8 million, despite a $0.2 million unfavorable foreign exchange impact[138] Segment Performance - Product Identification (PI) segment revenue was $25.8 million, representing a 10.2% increase from $23.4 million in the prior year, accounting for 72.6% of total revenue[129] - Test and Measurement (T&M) segment revenue was $9.7 million, a 9.8% increase from $8.9 million in the previous year, making up 27.4% of total revenue[129] - The PI segment's revenue increased by 12.8% to $50.9 million, with a segment operating profit of $2.1 million and a profit margin of 4.0%[150] - The T&M segment reported revenue of $9.7 million, a 9.8% increase, with an operating profit margin of 19.7%[151] - Revenue from the T&M segment was $20.1 million for the first six months of fiscal 2024, a 10.5% increase compared to $18.2 million for the same period in the prior year[152] Profitability - Gross profit for the second quarter was $9.7 million, a 14.7% decrease from $11.4 million in the prior year, with a gross profit margin of 27.3%, down 8.0 percentage points[132] - Gross profit for the first six months was $22.1 million, with a gross profit margin of 31.1%, down from 34.9% due to restructuring and retrofit costs[143] - The operating profit for the T&M segment was $4.0 million, resulting in a profit margin of 19.9%, down from 22.4% in the prior year[152] Expenses and Losses - Operating expenses increased by 7.5% to $10.9 million, primarily due to $0.4 million from Astro Machine and $0.6 million in restructuring costs[133] - Operating expenses increased by 8.6% to $21.8 million, influenced by costs from Astro Machine and restructuring expenses[143] - The company recognized a pre-tax restructuring expense of $2.7 million in the second quarter, mainly due to inventory write-offs and severance costs[120] - The company reported a net loss of $1.6 million or $0.22 per diluted share for Q2, impacted by $2.7 million in restructuring costs and $0.9 million in product retrofit expenses[136] Cash Flow and Financial Position - Cash provided by operating activities was $4.7 million for the first six months of fiscal 2024, compared to cash used of $3.8 million for the same period in the previous year[165] - The accounts receivable balance decreased to $18.0 million at the end of the second quarter of fiscal 2024, down from $21.6 million at year-end[166] - The inventory balance was $49.1 million at the end of the first quarter of fiscal 2024, a decrease from $51.3 million at year-end[166] - Cash position at July 29, 2023, was $4.5 million, an increase from $3.9 million at year-end[167] Strategic Initiatives - The company is addressing supply chain challenges by maintaining higher inventory levels and exploring alternative suppliers to mitigate potential shortages[125] - The company plans to spend $1.5 million to $2.0 million for capital investments to upgrade production machinery to support planned revenue growth[155] - The company anticipates focusing on inventory reduction and debt reduction under the revolving credit facility in fiscal 2024[155] Credit and Financing - The Amended Credit Agreement includes a new term loan of $6.0 million and an increase in the revolving credit facility from $22.5 million to $25.0 million[157] Taxation - The effective tax rate for the second quarter was 19.4%, compared to 27.4% in the same period last year, influenced by the jurisdictional mix of earnings[135] Market Risk - No material changes to market risk disclosures during the six months ended July 29, 2023[174]