AstroNova(US:ALOT)2022-06-07 16:00Revenue Performance - Total revenue for the first quarter of the current year was $31.0 million, a 6.6% increase compared to $29.1 million in the prior year[110]. - Revenue from the Product Identification segment decreased by 5.9% to $21.7 million, while the Test & Measurement segment saw a 55.3% increase to $9.3 million[110][123]. - Current quarter service and other revenues increased by 16.9% to $3.8 million, primarily due to increased parts and repair revenue for the aerospace printer product line[113]. Profitability Metrics - Gross profit for the first quarter was $10.7 million, reflecting a gross profit margin of 34.6%, down from 37.4% in the prior year[114]. - Net income for the first quarter was $0.4 million, or $0.06 per diluted share, compared to $0.6 million, or $0.08 per diluted share, in the prior year[119]. Operating Expenses - Operating expenses decreased by 1.9% to $10.0 million, with selling and marketing expenses down by 3.4% to $5.9 million[115]. - Research and development expenses were $1.5 million, an 11.3% decrease compared to the prior year, representing 4.9% of revenue[115]. Tax and Financial Position - The effective tax rate for the current quarter was 12.4%, influenced by a $38,000 tax benefit related to the expiration of a previously uncertain tax position[118]. - As of April 30, 2022, cash and cash equivalents were $5.8 million, with an additional $19.5 million available for borrowing under the revolving credit facility[128]. Cash Flow and Working Capital - Net cash used by operating activities was $1.6 million for the first three months of fiscal 2023, a decrease from cash provided of $3.9 million in the same period of the previous year[136]. - Accounts receivable increased to $18.4 million at the end of the first quarter, with days sales outstanding rising to 50 days from 45 days at the prior year end[137]. - Inventory balance was $36.9 million at the end of the first quarter, with inventory days on hand increasing to 164 days from 156 days at the prior year end[137]. Credit and Financing - The Amended Credit Agreement includes a term loan of $10.0 million and a revolving credit facility of $22.5 million for general corporate purposes[127]. - The Amended Credit Agreement eliminates minimum adjusted EBITDA, asset coverage, and liquidity covenants, enhancing operational flexibility[126]. - The interest rates under the Amended Credit Agreement range from 1.60% to 2.30% based on the consolidated leverage ratio[132]. - The term loan requires quarterly payments with the final payment due on September 30, 2025, and allows for voluntary prepayment without penalty[129]. - The Amended Credit Agreement includes an uncommitted accordion provision allowing for an increase in loan commitments not exceeding $10.0 million[130]. Operational Challenges - The company is facing ongoing supply chain challenges, including increased costs and delays in obtaining raw materials and components[106]. - The aerospace product line in the T&M segment experienced a 91.9% increase in sales revenue due to rising demand for new aircraft as COVID-19 restrictions eased[112][123]. - The company has implemented expense reduction and cash preservation initiatives in response to the COVID-19 pandemic[128]. Legal Matters - There are no pending or threatened legal proceedings that are believed to be material to the company's financial position or results of operations[147].