Market Overview

AstroNova Announces Financial Results for the Second Quarter of Fiscal 2019


Board of Directors Declares Regular Quarterly Cash Dividend of $0.07
Per Share

Second Quarter Fiscal 2019 Achievements (all comparisons with
second quarter fiscal 2018)

  • Revenue of $33.8 million, up 23 percent
  • Operating income of $2.2 million, up 130 percent
  • Operating margin of 6.4 percent, up 300 basis points
  • Diluted EPS of $0.17 per share, up 55 percent
  • Bookings of $35.8 million, up 29 percent
  • Backlog of $24.5 million at July 28, 2018, up 30 percent

AstroNova, Inc. (NASDAQ:ALOT), a global leader in data visualization
technologies, today announced financial results for the fiscal 2019
second quarter ended July 28, 2018.

"Our strong second-quarter performance was highlighted by record sales
and improved operating expense leverage that helped to generate
significant increases in operating income and earnings per share," said
President and CEO Greg Woods. "Our Test & Measurement segment led the
way, with top-line growth of more than 80 percent helped by
contributions from the Honeywell product printer line in our Aerospace
business unit and new ToughWriter contracts.

"Revenue in the Product Identification segment was up approximately 5
percent from the second quarter of last year, with contributions from
both our tabletop and commercial printing product lines," Woods said.

Revenues in both the domestic and international channels increased in
the quarter. Domestic revenues were $20.0 million, representing an
increase of 16.3 percent from the second quarter of fiscal 2018, while
revenues through international channels were $13.8 million, up 34.0
percent over the prior year.

Second Quarter 2019 Operating Results

Total revenue was $33.8 million, a 23 percent increase over the prior

Gross profit was $13.4 million, or 39.6 percent of revenue, compared
with $10.3 million, or 37.3 percent of revenue, for the prior year,
driven by revenue growth and product mix.

Operating expenses were $11.2 million compared with $9.3 million in the
prior-year period, primarily reflecting the Honeywell intangible
amortization, costs associated with increased selling and marketing
initiatives, and costs associated with the integration of the Honeywell
printer line into the West Warwick, Rhode Island manufacturing facility.
As a percentage of revenue, operating expenses declined approximately 70
basis points from the same quarter last year and more than 120 basis
points on a sequential basis.

Operating income was $2.2 million, a 6.4 percent margin, compared with
$942,000, a 3.4 percent margin, in the prior year.

Net income was $1.2 million, or $0.17 per diluted share, compared with
net income of $727,000, or $0.11 per diluted share, in the prior year.

Bookings increased 29 percent to $35.8 million from $27.8 million in the
second quarter of fiscal 2018.

Backlog at July 28, 2018 was $24.5 million, up 30 percent from $18.9
million at the end of the fiscal 2018 second quarter.

Second Quarter 2019 Operating Segment Results

The Product Identification segment generated revenue of $21.8
million, a 4.5 percent increase compared with $20.8 million in the prior
year on higher sales of hardware and supplies. Segment operating income
was $2.2 million, or 9.9 percent of revenue, versus $2.6 million, or
12.5 percent of revenue, in the prior year, due primarily to costs
associated with new product development.

The Test & Measurement segment generated revenue of $12.0
million, an 81.2 percent increase from $6.6 million in the prior year,
primarily reflecting the impact of the Honeywell asset purchase and
licensing agreement and increased supplies business. Segment operating
income was $2.8 million, or 23.4 percent of revenue, versus $657,000, or
9.9 percent of revenue, in the prior year.

Hardware revenue was $12.9 million, a 50 percent increase from $8.6
million in the prior year. Supplies revenue was $17.9 million, a 9.8
percent increase from $16.3 million in the same period of fiscal 2018.
Service/other revenue was $3.0 million, a 15.4 percent increase over the
prior year.

Board Declares Quarterly Dividend

On August 20, 2018, the Company's Board of Directors declared a regular
quarterly cash dividend of $0.07 per share. The dividend, which
represents a cash dividend of $0.28 per share on an annualized basis, is
payable on September 21, 2018, to shareholders of record on September
14, 2018.

Recent Highlights

  • The Company's QuickLabel® business unit launched the first of its
    second-generation Kiaro! digital inkjet color label printers, the
    Kiaro! QL-120, to customers worldwide through its direct sales force
    and international dealer network.
  • Following the Farnborough International Airshow, AstroNova secured
    multiple commitments from major airlines for its flagship ToughWriter®
    640 and ToughWriter® 5 flight deck printers, which are used on a wide
    range of aircraft including the Boeing 737 MAX.

Business Outlook

"With solid order momentum and a strong backlog heading into the third
quarter of fiscal 2019, we are positioned for continued growth," Woods
said. "We expect the second half of the fiscal year to outperform the
first half, with gains in both Product Identification and Test &

Second-Quarter Fiscal 2019 Conference Call

AstroNova will conduct an investor conference call at 9:00 a.m. ET
today. To participate on the conference call, please dial (877) 260-1479
(U.S. and Canada) or (334) 323-0522 (International) approximately 10
minutes prior to the start time and enter confirmation code 2195819.

You can hear a replay of the conference call from 12:00 Noon ET
Wednesday, August 22 until 12:00 p.m. ET Wednesday, August 29 by dialing
(888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The
passcode is 2195819. A real-time and an archived audio webcast of the
call will be available through the "Investors" section of the AstroNova

About AstroNova

AstroNova, Inc. (NASDAQ:ALOT), a global leader in data visualization
technologies since 1969, designs, manufactures, distributes and services
a broad range of products that acquire, store, analyze and present data
in multiple formats. The Product Identification segment offers a variety
of hardware and software products and associated supplies that allow
customers to mark, track and enhance the appearance of their products.
The segment's two business units are QuickLabel®, the industry leader in
tabletop digital color label printing and TrojanLabel®, an innovative
leader for professional label presses and specialty printers. The Test
and Measurement segment includes the Test & Measurement business unit,
which offers a suite of products and services that acquire, record and
analyze electronic signal data from local and networked sensors. The
segment also includes the AstroNova Aerospace business unit, which
designs and manufactures avionics equipment and systems that serve the
world's aerospace and defense industries with proven advanced airborne
technology solutions for both the cockpit and the cabin. The key
products include flight deck printers, networking hardware and related
accessories. AstroNova is a member of the Russell Microcap® Index and
the LD Micro Index (INDEXNYSEGIS: LDMICRO). Additional information is
available by visiting

Forward-Looking Statements

Information included in this news release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are not statements of
historical fact, but rather reflect our current expectations concerning
future events and results. These statements may include the use of the
words "believes," "expects," "intends," "plans," "anticipates,"
"likely," "continues," "may," "will," and similar expressions to
identify forward-looking statements. Such forward-looking statements,
including those concerning the Company's anticipated performance in the
second half of fiscal 2019, involve risks, uncertainties and other
factors, some of which are beyond our control, which may cause our
actual results, performance or achievements to be materially different
from those expressed or implied by such forward-looking statements.
These risks, uncertainties and factors include, but are not limited to,
those factors set forth in the Company's Annual Report on Form 10-K for
the fiscal year ended January 31, 2018 and subsequent filings AstroNova
makes with the Securities and Exchange Commission. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The reader is cautioned not to unduly rely
on such forward-looking statements when evaluating the information
presented in this news release.

Consolidated Statements of Income
In Thousands Except for Per Share Data
Three Months Ended Six Months Ended
July 28, 2018 July 29, 2017 July 28, 2018 July 29, 2017
Revenue $ 33,807 $ 27,483 $ 65,294 $ 51,941
Cost of Goods Sold 20,408 17,224 39,784 32,376
Gross Profit 13,399 10,259 25,510 19,565
39.6% 37.3% 39.1% 37.7%
Operating Expenses:
Selling & Marketing 6,397 5,315 12,898 10,426
Research & Development 2,029 1,675 3,721 3,307
General & Administrative   2,808   2,327   5,462   4,183
11,234 9,317 22,081 17,916
Operating Income 2,165 942 3,429 1,649
6.4% 3.4% 5.3% 3.2%
Other Income (Expense), Net   (512)   16   (782)   (33)
Income Before Taxes 1,653 958 2,647 1,616
Income Tax Provision   459   231   637   378
Net Income $ 1,194 $ 727 $ 2,010 $ 1,238
Net Income per Common Share - Basic $ 0.17 $ 0.11 $ 0.29 $ 0.17
Net Income per Common Share - Diluted $ 0.17 $ 0.11 $ 0.29 $ 0.17
Weighted Average Number of Common Shares - Basic 6,860 6,727 6,825 7,097
Weighted Average Number of Common Shares - Diluted 7,083 6,838 6,999 7,218
Dividends Declared Per Common Share $ 0.07 $ 0.07 $ 0.14 $ 0.14
Condensed Consolidated Balance Sheet Data
Amounts In Thousands
July 28, 2018   January 31, 2018


Cash and Cash Equivalents $ 5,949 $ 10,177
Securities Available for Sale - 1,511
Accounts Receivable, net 24,048 22,400
Inventory, net 28,396 27,609
Prepaid Expenses and Other Current Assets 1,767   1,251  
Total Current Assets 60,160 62,948
Less Accumulated Depreciation (34,034 ) (33,125 )
Property, Plant and Equipment, net 9,525 9,752
Intangible Assets, net 31,788 33,633
Goodwill 12,466 13,004
Deferred Tax Assets 1,827 1,829
Other Assets 1,304   1,147  
Total Other Assets 47,385   49,613  
TOTAL ASSETS $ 117,070   $ 122,313  


Accounts Payable $ 6,082 $ 11,808
Accrued Compensation 3,294 2,901
Other Liabilities and Accrued Expenses 3,380 2,414
Current Portion of Long-Term Debt 5,024 5,498
Current Liability - Royalty Obligation 1,625 1,625
Line of Credit 1,500 -
Current Liability - Excess Royalty Payment Due 1,377 615
Income Taxes Payable 366 684
Deferred Revenue 236   367  
Total Current Liabilities 22,884 25,912
Long-Term Debt, net of current portion 15,249 17,648
Royalty Obligation, net of current portion 10,901 11,760
Deferred Tax Liabilities 623 698
Other Liabilities 1,925   2,648  
Common Stock 507 500
Additional Paid-In Capital 51,877 50,016
Retained Earnings 46,761 45,700
Treasury Stock (32,960 ) (32,397 )
Accumulated Other Comprehensive Income (697 ) (172 )

View Comments and Join the Discussion!