AstroNova Announces Financial Results for the Third Quarter of Fiscal 2019

Business Name: 
AstroNova

Third-Quarter Fiscal 2019 Achievements (all comparisons with third-quarter fiscal 2018)

  • Revenue of $34.2 million, up 18.9 percent
  • Operating income of $2.4 million, up 44.7 percent
  • Operating margin of 6.9 percent, up 120 basis points
  • Diluted EPS of $0.20 per share, down 4.8 percent
  • Bookings of $34.2 million, up 9.7 percent
  • Backlog of $24.5 million at October 27, 2018, up 15.1 percent

 

WEST WARWICK, R.I.--(BUSINESS WIRE)-- AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2019 third quarter ended October 27, 2018.

 

“Record revenue in the quarter with continued double-digit increases in revenue and operating income highlighted a solid third quarter of financial results for AstroNova,” said President and CEO Greg Woods. “We are encouraged with the continuous growth in both our segments with the Test & Measurement segment posting 51 percent revenue growth year-over-year reflecting the growth of our new data acquisition products and accelerated performance in our Aerospace business from the acquired Honeywell printer line in last year’s third quarter.

 

“The Product Identification segment reported growth year-over-year with new products such as the QuickLabel QL-120 and the TrojanLabel T2-C generating strong momentum,” Woods said. “As evidenced by the strong lead-generation and on-site sales we experienced during the recent Labelexpo Americas 2018 and PACK EXPO International trade shows, our new QuickLabel and TrojanLabel products are attracting brand owners as well as commercial printer customers across a wide range of industries.”

 

Revenue through domestic channels for the third quarter of fiscal 2019 was $21.5 million, an increase of 18.9 percent compared with the same period in fiscal 2018. International revenue was $12.7 million in the third quarter, up 18.9 percent year-over-year.

 

Recent Highlights

AstroNova on Tuesday announced the appointment of Jean A. Bua, Executive Vice President and Chief Financial Officer of NETSCOUT SYSTEMS, INC., to its Board of Directors as a new independent director, effective immediately. A financial expert, Ms. Bua brings significant experience to the Board in the areas of accounting policy, internal controls and risk management.

 

AstroNova demonstrated innovative new tabletop and specialty printing solutions at Labelexpo Americas. Featured products included the Kiaro! QL-120 color label printer and the Trojan T4, a compact digital label press and finishing system that is ideal for small- to mid-sized commercial printers.

 

The Company introduced a new solution at PACK EXPO International that enables its TrojanLabel presses to digitally print food friendly, heat sealable, flexible packaging materials. The solution features novel ink and lamination that allows users to seal in both horizontal and vertical form fill and seal machines using low temperatures for high speed sealing.

 

Business Outlook

“We begin the fourth quarter of fiscal 2019 with good momentum,” Woods said. “We continue to expect the second half of the fiscal year to outperform the first half, with gains in both Product Identification and Test & Measurement.”

 

Third-Quarter 2019 Operating Results

Total revenue was $34.2 million, an 18.9 percent increase over the prior year.

 

Gross profit was $13.9 million, or 40.7 percent of revenue, compared with $11.8 million, or 41.0 percent of revenue for the prior year.

 

Operating expenses were $11.5 million compared with $10.2 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 decreased 150 basis points from the same period last year.

  • Operating income was $2.4 million, a 6.9 percent margin, compared with $1.6 million, a 5.7 percent margin, in the prior year.
  • Net income was $1.4 million, or $0.20 per diluted share, compared with net income of $1.4 million, or $0.21 per diluted share, in the prior year.
  • Bookings increased 9.7 percent to $34.2 million from $31.2 million in the third quarter of fiscal 2018.
  • Backlog at October 27, 2018 was $25.4 million, up 15.1 percent from $21.3 million at the end of the fiscal 2018 third quarter.

 

Third-Quarter 2019 Operating Segment Results

The Product Identification segment generated revenue of $21.7 million, a 6.0 percent increase compared with $20.5 million in the prior year, on higher sales of hardware and supplies. Segment operating income was $2.0 million, or 9.3 percent of revenue, versus $2.7 million, or 13.0 percent of revenue, in the prior year, due primarily to higher costs associated with new product development.

 

The Test & Measurement segment generated revenue of $12.5 million, a 50.7 percent increase from $8.3 million in the prior year, primarily reflecting the impact of the Honeywell asset purchase and licensing agreement. Segment operating income was $3.2 million, or 25.4 percent of revenue, versus $1.6 million, or 18.9 percent of revenue, in the prior year.

 

Hardware revenue was $13.1 million, a 39.4 percent increase from $9.4 million in the prior year. Supplies revenue was $18.1 million, a 9.0 percent increase from $16.6 million in the same period of fiscal 2018. Service/other revenue was $3.0 million, up 8.5 percent from the prior year.

 

Board Declares Quarterly Dividend

On November 19, 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 December 21, 2018, to shareholders of record on December 14, 2018.

 

Third-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 6597585.

Contact Person: 
Scott Solomon
Senior Vice President
Phone: 
617 542 5300

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