AstroNova(US:ALOT)2021-06-10 16:55Financial Data and Key Metrics Changes - For Q1 fiscal 2022, revenue was $29.1 million, a decrease of 6% from the prior year, primarily due to softness in the aerospace segment [7][8] - Operating profit increased nearly 11%, reflecting effective cost management despite a decline in revenue [8] - Adjusted EBITDA for Q1 was $2.5 million, or 8.6% of revenue, compared to $2.6 million, or 8.3% in the same period of fiscal 2021 [16] Business Line Data and Key Metrics Changes - Product identification revenue rose 3% to $23.1 million, driven by strong performance in the T3-OPX printing system [8] - Test and measurement segment revenue fell 30% year-over-year, impacted by the pandemic and slow recovery in the aerospace industry [10] - Hardware revenue decreased to $7.6 million from $8.9 million, while supplies revenue was $18.2 million compared to $19.1 million in the prior year [13][14] Market Data and Key Metrics Changes - International revenue accounted for nearly 43% of total revenue, up from 36% in the first quarter of fiscal 2021, indicating a positive trend in global sales [9] - Domestic sales represented 57% of total revenue, down from 64% in the same quarter last year [9] Company Strategy and Development Direction - The company is focusing on core strategic tenets, including innovation, global expansion, and delivering efficient products [18] - A tier one supply agreement with Airbus was established, allowing direct supply of printers for the A320 family, enhancing the company's position in the aerospace market [11][12] Management Comments on Operating Environment and Future Outlook - Management noted signs of recovery in certain areas as economies reopen and air travel increases, although the overall aerospace industry recovery is expected to take time [7][11] - The company anticipates a gradual recovery in the aerospace sector, with increasing orders in product identification and MRO segments [27][28] Other Important Information - The company is proactively managing supply chain challenges and has not experienced significant shortages, although some additional costs have been incurred [15] - Cash and equivalents at the end of the quarter stood at $11.4 million, with debt reduced to $9.6 million from $12.4 million [16] Q&A Session Summary Question: Regarding tier one status with Airbus, does this eliminate fees to Honeywell? - Management confirmed that there are no fees related to Boeing and negotiations with Honeywell are ongoing to finalize the transition [19] Question: What is the status of the 737 backlog? - Management indicated that while the backlog is starting to flow, it remains a small portion of overall bookings, with expectations for gradual increases [21] Question: What is the inventory situation for printers? - Management stated that Boeing typically keeps a low inventory of printers, maintaining a buffer to avoid production slowdowns [23] Question: What is the revenue percentage from APAC and growth opportunities? - Management did not disclose specific percentages but indicated strong growth potential in China, expecting revenues to double year-over-year [25] Question: How does the company see fiscal 2022 progressing from Q1? - Management highlighted a positive trend in orders for product identification and gradual recovery in aerospace, driven by macroeconomic factors [27][28]