AstroNova(US:ALOT)2021-06-09 16:00Revenue 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].