AstroNova(US:ALOT)2024-06-06 16:00Revenue Performance - Total revenue for the first quarter of fiscal 2025 was $32.96 million, a decrease of 6.9% compared to $35.42 million in the same quarter of the previous year[96]. - Revenue from the Product Identification (PI) segment was $23.19 million, down 7.6% from $25.10 million year-over-year, primarily due to hardware sales declines[102]. - Test and Measurement (T&M) segment revenue was $9.78 million, a decrease of 5.3% from $10.32 million in the prior year, attributed to component shortages affecting hardware shipments[103]. - Domestic revenue for the first quarter was $18.10 million, a decrease of 12.5% from $20.70 million in the prior year, while international revenue was $14.90 million, reflecting a 0.9% increase[96]. Profitability - Gross profit for the current quarter was $12.00 million, a 3.3% decrease from $12.40 million in the prior year, with a gross profit margin of 36.3%[96]. - Net income for the first quarter was $1.18 million, or $0.15 per diluted share, compared to $0.80 million, or $0.11 per diluted share in the prior year[98]. - The company recognized a federal, state, and foreign income tax benefit of $0.40 million, resulting in an effective tax rate of (58.1)%[98]. Expenses - Operating expenses decreased by 2.7% to $10.60 million compared to $10.90 million in the prior year, with selling and marketing expenses down 5.9%[96]. - Research and development expenses were $1.60 million, a decrease of 10.3% from the prior year, representing 4.9% of revenue[96]. Cash Flow and Working Capital - Net cash provided by operating activities increased to $6.9 million for the first three months of fiscal 2025, compared to $2.6 million for the same period in the previous year, primarily due to an increase in cash provided by working capital[115]. - Accounts receivable decreased to $17.9 million at the end of the first quarter of fiscal 2025, down from $23.1 million at year-end, with days sales outstanding improving to 49 days from 52 days[116]. - Inventory balance at the end of the first quarter of fiscal 2025 was $45.2 million, a decrease from $46.4 million at year-end, while inventory days on hand increased to 194 days from 168 days[116]. - Cash position at April 27, 2024, was $4.0 million, down from $4.5 million at year-end, primarily due to cash outflows including repayments on revolving credit of $5.5 million and principal payments on long-term debt of $0.7 million[117]. Financing Activities - The company entered into a revised credit agreement to finance the acquisition of MTEX, with a new term loan of $6.0 million and an increase in the revolving credit facility from $22.5 million to $25.0 million[107]. - The company entered into a secured equipment loan facility agreement in January 2024, borrowing $0.8 million for production equipment, maturing on January 23, 2029, with a fixed interest rate of 7.06%[113]. - A Third Amendment to the Amended Credit Agreement was executed on May 6, 2024, providing a new term loan of EUR 14,000,000 and increasing the revolving credit facility from $25.0 million to $30.0 million until January 31, 2025[114]. - The term loan repayment schedule includes quarterly installments of EUR 14,000,000 and existing loans through April 30, 2027, with the entire remaining balance due on August 4, 2027[114]. - The company believes it is in compliance with all covenants in the Credit Agreement as of April 27, 2024[111]. - Interest rates under the Amended Credit Agreement range from 1.60% to 2.50% based on the consolidated leverage ratio, with additional fees on the undrawn portion of the revolving credit facility ranging from 0.15% to 0.35%[110]. - The company is subject to various financial and non-financial covenants, including a maximum consolidated leverage ratio and minimum asset coverage ratio[111].