Financial Data and Key Metrics Changes - The first quarter revenue was $37.7 million, representing a year-over-year growth of 14.4% and a sequential increase of 0.9% [19] - Adjusted EBITDA of $3.1 million increased by 27.6% compared to the prior year period, with an adjusted EBITDA margin expanding by 80 basis points year-over-year [25] - Net loss was $400,000, compared to net income of $1.2 million in the prior year period [24] Business Line Data and Key Metrics Changes - Product identification revenue grew by 13.8% year-over-year, driven by $1.4 million in incremental Emtek sales and higher demand for printers and supplies [20] - Aerospace revenue increased by 16.8% year-over-year, primarily due to increased printer shipments to a major OEM and carryover shipments to a defense contractor [20] - Aerospace operating income was $2.8 million, representing 24.2% of sales, compared to $1.7 million in the prior year period [23] Market Data and Key Metrics Changes - First quarter orders totaled $34.9 million, up 5.4% year-over-year, driven by higher demand for product identification hardware and supplies [14] - Backlog for the quarter declined by $2.8 million year-over-year to $25.5 million, primarily due to clearing previously delayed shipments [16] - The company secured a three-year label supply contract with a multinational beauty company, marking a new account [15] Company Strategy and Development Direction - The company aims to drive long-term revenue growth and improve profitability through a unique position in the global data visualization market [6] - Key strategic drivers include transitioning customers to high-performance Tough Writer printers, launching next-generation product identification solutions, and streamlining operations [7][8][9] - The company expects to complete a $3 million annualized cost reduction plan by the second quarter [11] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver long-term shareholder value through focused execution of the strategy [14] - The company anticipates revenue for the full year to be in the range of $160 million to $165 million, representing a 7% year-over-year increase at the midpoint [30] - Management noted that the impacts of tariffs have been negligible so far, with strategies in place to mitigate potential cost impacts [17][18] Other Important Information - The company ended the quarter with $12.6 million in total liquidity, including $5.4 million in cash [26] - Cash provided by operations in the first quarter was $4.4 million, down from $6.9 million in the prior year period [27] - The company is focused on improving inventory turns from approximately two times to more than three times over the fiscal years [27] Q&A Session Summary Question: What are the expectations for the new product launches? - Management indicated that three new product identification solutions have already been launched and are receiving strong customer interest, with six more expected before the end of fiscal twenty twenty-six [29] Question: How is the company managing costs in light of the current economic environment? - The company is critically assessing its cost structure and cash flow generation, on track to complete a $3 million cost reduction program by Q2 [29] Question: What is the outlook for the aerospace segment? - Management expects an increase in ToughRider shipments from existing commercial aerospace customers beginning in the second quarter as the transition from legacy printers continues [21]

Financial Performance - AstroNova achieved a 14.4% revenue increase in Q1 FY2026, driven by double-digit growth in both segments[10] - Product Identification revenue grew by 13.8% year-over-year to $26.3 million[22] - Aerospace revenue increased by 16.8% year-over-year to $11.4 million[23] - Adjusted EBITDA margin increased to 8.3% in Q1 FY26[45] - The company reaffirms FY2026 revenue guidance to range from $160 million to $165 million, with an adjusted EBITDA margin expected to expand to 8.5% to 9.5%[15, 55] Strategic Initiatives and Cost Reduction - AstroNova is implementing cost reduction actions, with $1.9 million of annualized savings achieved in Q1 FY26 and a total of $3 million expected in the first half of FY2026[15] - The company reduced headcount by 10% and simplified the leadership structure[7] - Three Product ID products were launched, with six more in development[12] Orders and Backlog - Aerospace orders increased from $25.5 million in Q1 FY25 to $31.6 million in Q1 FY26[18] - Product Identification backlog increased from $33.1 million in Q1 FY25 to $34.9 million in Q1 FY26[18] Aerospace Sector - 42% of total unit shipments in Aerospace constituted ToughWriter shipments, with a target of over 80% by year-end[28] - The company renewed a $10 million multi-year Aerospace defense contract[13]