Press release

AstroNova Announces Financial Results for the First Quarter of Fiscal 2020

Sponsored by Businesswire

AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization
technologies, today announced financial results for the fiscal 2020
first quarter ended May 4, 2019.

CEO Commentary

“We executed well in the first quarter, generating strong year-over-year
gains in revenue, operating income and earnings per share,” said
President and CEO Greg Woods. “Our financial and operational performance
reflects the strategic investments we are making in new product
development, technology enhancements and geographic expansion, all
driven by our AstroNova Operating System (AOS). Through the AOS standard
set of tools and processes, we are realizing increased efficiencies,
enhancing operating leverage and driving growth to the bottom line.

“Both segments contributed to our positive results in Q1,” Woods said.
“In Product Identification, key business drivers included demand for our
new, five-color QL-300 tabletop printer, which allows commercial
printers and other customers to expand their capability to produce
high-quality, short-run specialty labels across a range of industries.
In the Test & Measurement segment, our results reflected solid momentum
in our key end markets.”

Business Outlook

“For fiscal 2020 we continue to expect modest revenue growth and
increased operating leverage for the full year as we expand the
application of the AstroNova Operating System across our business,”
Woods said. “However while so far we have been largely unaffected by the
grounding of the Boeing 737 MAX, we expect that the prolonged situation
may result in a slight impact on our second-quarter operating margin.
Whether or not this impact continues beyond the second quarter is
dependent on when the aircraft is returned to service.”

Operating Segment Results

Product Identification segment revenue in the first quarter of
fiscal 2020 was $23.6 million, an 18.2% increase compared with $20.0
million in the prior year, on higher sales of hardware, supplies and
services. Segment operating income was $2.9 million, or 12.2% of
revenue, versus $1.7 million, or 8.3% of revenue, in the prior year,
primarily reflecting higher revenue and improved operating leverage.

Test & Measurement segment revenue in the first quarter of
fiscal 2020 increased 9.2% to $12.6 million from $11.5 million in the
same period of fiscal 2019. Segment operating income was $2.6 million,
or 20.5% of revenue, for the first quarter of fiscal 2020 compared with
$2.3 million, or 19.6% of revenue, in the comparable period of fiscal

Financial Summary

Revenue in the first quarter totaled $36.2 million, an increase of 14.9%
from $31.5 million in the first quarter of fiscal 2019, reflecting
higher sales in both the Product Identification and Test & Measurement

Gross profit in the first quarter was $14.2 million, or 39.4% of
revenue, compared with $12.1 million, or 38.5% of revenue, for Q1 fiscal
2019. The increase in gross profit dollars and margin reflected higher
revenue in the 2020 period.

Operating expenses for the first quarter were $11.8 million compared
with $10.8 million in the same period of fiscal 2019.

Operating income for the first quarter was $2.5 million, or 6.8% of
revenue, compared with $1.3 million, or 4.0% of revenue, in the first
quarter of fiscal 2019.

Net income for the first quarter was $1.7 million, or $0.23 per diluted
share, versus $814,000, or $0.12 per diluted share, in the first quarter
of fiscal 2019.

First-quarter 2020 bookings increased 16% to $38.5 million from $33.3
million in the first quarter of 2019, with increases in both the Product
Identification and Test & Measurement segments.

Backlog at May 4, 2019 increased to a record $27.0 million, up 13% from
$23.9 million at the end of the fiscal 2019 first quarter.

Board Declares Quarterly Dividend

On June 4, 2019, 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 June 26, 2019, to shareholders of record on June 19, 2019.

First-Quarter Fiscal 2020 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 7303253

You can hear a replay of the conference call from 12:00 p.m. ET
Wednesday, June 5 until 12:00 p.m. ET Wednesday, June 12 by dialing
(888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The
passcode is 7303253. 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
fiscal 2020 and the effect of the grounding of the 737 MAX, 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, 2019 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.

Condensed Consolidated Statements of Income
In Thousands Except for Per Share Data

Three Months Ended

May 4, 2019 April 28, 2018
Net Revenue $ 36,181 $ 31,487
Cost of Revenue 21,942 19,377
Gross Profit 14,239 12,110
39.4% 38.5%
Operating Expenses:
Selling & Marketing 6,765 6,500
Research & Development 2,007 1,692
General & Administrative   2,999   2,653
11,771 10,845
Operating Income 2,468 1,265
6.8% 4.0%
Other Income, Net   (368)   (270)
Income Before Taxes 2,100 995
Income Tax Provision   400   181
Net Income $ 1,700 $ 814
Net Income per Common Share – Basic $ 0.24 $ 0.12
Net Income per Common Share – Diluted $ 0.23 $ 0.12
Weighted Average Number of Common Shares – Basic 6,971 6,788
Weighted Average Number of Common Shares – Diluted 7,248 6,916
Balance Sheet
In Thousands

May 4, 2019

January 31, 2019

Cash and Cash Equivalents





Accounts Receivable, net 21,970 23,486
Inventories, net 32,043 30,161
Prepaid Expenses and Other Current Assets   1,198   1,427
Total Current Assets 60,980 62,608
Less Accumulated Depreciation   (35,388)   (34,947)
Property, Plant and Equipment, net 10,462 10,380
Intangible Assets, net 28,561 29,674
Goodwill 12,136 12,329
Deferred Tax Assets 2,927 2,928
Right of Use Asset 1,826
Other Assets   1,047   1,064





Accounts Payable





Accrued Compensation 2,767 5,023
Other Liabilities and Accrued Expenses 2,848 2,911
Current Portion of Long-Term Debt 4,932 5,208
Current Portion of Royalty Obligation 2,000 1,875
Revolving Credit Facility 1,500 1,500
Current Liability – Excess Royalty Payment Due 1,301 1,265
Income Taxes Payable 810 554
Deferred Revenue   350   373
Total Current Liabilities 22,326 24,665
Long-Term Debt, net of current portion 11,583 12,870
Royalty Obligation, net of current portion 9,440 9,916
Lease Liability 1,472
Deferred Tax Liabilities 15 40

Other Long-Term Liabilities

  1,489   1,717
Common Stock 513 511
Additional Paid-in Capital 54,474 53,568
Retained Earnings 50,722 49,511
Treasury Stock (33,077) (32,997)
Accumulated Other Comprehensive Loss, net of tax   (1,018)   (818)





Revenue and Segment Operating Profit
In Thousands
Three Months Ended
Revenue   Segment Operating Profit
    May 4, 2019   April 28, 2018   May 4, 2019   April 28, 2018
Product Identification $ 23,591 $ 19,953 $ 2,886 $ 1,661
T&M   12,590     11,534     2,581     2,257
Total $ 36,181   $ 31,487   5,467 3,918
Corporate Expenses   2,999     2,653
Operating Income 2,468 1,265
Other Expense-Net   (368)     (270)
Income Before Income Taxes 2,100 995
Income Tax Provision   400     181
Net Income $ 1,700   $ 814