AstroNova(US:ALOT)2022-09-07 14:13Financial Data and Key Metrics Changes - Revenue for the second quarter of fiscal 2023 increased by 8% year-over-year, with total bookings reaching $67.3 million, just shy of the previous first half high in fiscal 2020 [6][12] - Revenue for the first half of fiscal 2023 was up approximately 7.4% to $63.3 million, driven by growth in the Test & Measurement (T&M) segment [12] - Operating income for the first half was $2.0 million, representing 3.5% of revenue, compared to $2.1 million or 3.5% of revenue in the same period last year [14] Business Line Data and Key Metrics Changes - The T&M segment saw a revenue increase of 47% to $18.2 million in the first half of fiscal 2023, primarily due to the ramp-up of the Boeing 737 MAX and the recovery of commercial air travel [12] - Service and other revenue in Q2 was up 36% year-over-year to $4.5 million, marking a quarterly record for the company [7] - Product Identification (PI) segment revenue was essentially flat year-over-year but increased nearly 8% from Q1 of fiscal 2023 [8] Market Data and Key Metrics Changes - U.S. revenue accounted for 61% of total business, with international revenue making up the remainder [14] - The company noted strong demand driven by increasing air travel and the growth of digital print for packaging [6] Company Strategy and Development Direction - The company is focused on leveraging favorable secular trends to drive growth and has confidence in its long-term strategy, including M&A and new product development [17] - The acquisition of Astro Machine is expected to enhance expertise in automation and material handling, expand color label printer offerings, and create cross-selling opportunities [10][17] Management Comments on Operating Environment and Future Outlook - Management highlighted that supply chain disruptions, higher component costs, and increased freight expenses continue to impact certain areas of the business [6] - The company is optimistic about returning to normal lead times in the PI segment as production rates improve [8] - Management expects the Astro Machine acquisition to be accretive to earnings in the second half of the year [16] Other Important Information - The company has implemented selective price increases to mitigate the impact of supply chain challenges [6] - Inventory has grown significantly, with a notable increase in T&M segment inventory to support higher demand and build buffer stocks [15][16] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any additional inquiries [18][20]