AstroNova(US:ALOT)2022-04-17 16:00Revenue Performance - Total revenue for fiscal 2022 was $117.5 million, a 1.2% increase from $116.0 million in fiscal 2021[83]. - Revenue from the Product Identification segment was $90.9 million, accounting for 77.4% of total revenue, with a 0.7% increase from the previous year[84]. - Test and Measurement segment revenue was $26.6 million, representing 22.6% of total revenue, with a 3.1% increase compared to fiscal 2021[84]. - Domestic revenue decreased by 3.8% to $68.2 million, while international revenue increased by 9.2% to $49.3 million[84]. - Hardware revenue decreased by $2.6 million or 7.7% to $31.5 million, primarily due to a 10.1% decline in the T&M segment[84]. - Supplies revenue increased by 2.1% to $73.2 million, driven by higher demand for Trojan Label product supplies[84]. - Service and other revenue rose by 25.6% to $12.7 million, attributed to increased repair and parts revenue in both segments[84]. - Revenue from the PI segment increased by 0.7% to $90.9 million, while the T&M segment revenue rose by 3.1% to $26.6 million[89][90]. Profitability - Gross profit for fiscal 2022 was $43.7 million, a 5.8% increase from $41.4 million in fiscal 2021, with a gross profit margin of 37.2%, up 2.4 percentage points from 35.6%[85]. - The PI segment operating profit was $10.4 million with a profit margin of 11.5%, down from 14.3% in the prior year[89]. - The T&M segment achieved an operating profit of $3.4 million, a significant improvement from an operating loss of $1.0 million in the prior year, with a profit margin of 12.8%[90]. - Net income for fiscal 2022 was $6.4 million, or $0.88 per diluted share, compared to $1.3 million, or $0.18 per diluted share in the prior year[85]. Expenses and Investments - Operating expenses increased by 1.4% to $39.5 million in fiscal 2022, with selling and marketing expenses decreasing by 0.5% to $23.2 million[85]. - Research & development costs rose by 8.8% to $6.8 million, representing 5.7% of net revenue compared to 5.3% in the prior year[85]. - The company invested $6.8 million in research and development in fiscal 2022, up from $6.2 million in fiscal 2021[75]. Cash Flow and Debt - Net cash provided by operating activities decreased to $1.4 million in fiscal 2022 from $15.5 million in the previous year, primarily due to a decrease in cash provided by working capital of $11.3 million[96]. - The company recorded a $4.5 million gain on extinguishment of debt following the forgiveness of a $4.4 million PPP Loan[80]. - The effective tax rate for fiscal 2022 was 8.6%, a decrease from 41.1% in fiscal 2021, primarily due to PPP loan forgiveness tax-exempt income[85]. - The principal amount of quarterly installments for the term loan will increase from $187,500 to $500,000 over the fiscal years ending January 31, 2022, to January 31, 2025, with the entire remaining principal balance due by September 30, 2025[92]. - Total indebtedness included $9.25 million of term loan variable-rate debt as of January 31, 2022[108]. - The interest rate on variable-rate debt ranged from 2.35% to 4.65% during fiscal 2022[108]. Accounts and Inventory - The accounts receivable balance decreased slightly to $17.1 million at January 31, 2022, with days sales outstanding dropping to 45 days from 51 days in the previous year[96]. - Year-end inventory increased to $34.6 million at January 31, 2022, with days inventory on hand rising to 156 days compared to 147 days at the end of fiscal 2021[96]. Commitments and Obligations - The company had contractual obligations totaling $1.1 million in fixed lease payment obligations as of January 31, 2022, with $0.3 million due within 12 months[98]. - Purchase commitments totaled $37.5 million as of January 31, 2022, with $35.4 million due within 12 months, most of which are non-cancelable[99]. - The company is subject to a guaranteed minimum royalty payment obligation of $6.4 million, with $2.0 million due within 12 months[99]. Risk Management - The company actively monitors credit risk through credit approvals and limits, presenting accounts receivable net of reserves for doubtful accounts[101]. - Bad debt expense was less than 1% of net sales for both fiscal 2022 and 2021[101]. - Warranty costs are recorded as cost of revenue, and the reserve balance is recorded as an accrued expense, influenced by product failure rates[101]. - The company establishes a reserve for estimated warranty costs at the time product revenue is recognized, based on historical data[101]. Foreign Exchange - A hypothetical 10% change in foreign currency translation rates would result in a $0.2 million increase or decrease in consolidated net income for the year ended January 31, 2022[106]. - Foreign exchange losses from transactional exposure amounted to $0.3 million for the year ended January 31, 2022[107].