AstroNova Reports Fiscal First-Quarter 2022 Financial Results
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2022 first quarter ended May 1, 2021.
"Revenue was generally in line with our expectations in the first quarter compared with last year, as top-line growth in the Product Identification segment partly offset Aerospace industry-related weakness in the Test & Measurement segment due to the effects of the COVID-19 pandemic and continued weakness in 737 MAX-related shipments," said Gregory A. Woods, President and Chief Executive Officer of AstroNova. "Bookings came in ahead of last year's level, with Product Identification posting a new record and our Aerospace bookings increasing 45% sequentially to mark the first positive book-to-bill ratio since fiscal 2020. We continued to carefully manage expenses in the quarter, which allowed us to maintain profitability and improve overall margins despite lower revenue.
"Q1 marked another strong quarter for the T3-OPX, our wide-format durable direct-to-package printing system, which continues to exceed expectations," Woods said. "Our Product Identification segment had solid results, particularly in Europe, reflecting our recent sales reorganization in the EMEA region."
Q1 FY 2022 Operating Segment Results
Product Identification segment revenue was $23.1 million, compared with $22.4 million in the prior-year period. Segment operating income was $2.7 million, or 11.8% of revenue, compared with $3.1 million, or 14.1% of revenue, in the prior year, primarily due to higher operating costs.
Test & Measurement segment revenue was $6.0 million, compared with $8.5 million in the same period of fiscal 2021. The decrease reflected lower aerospace printer sales associated with COVID-19 and the 737 MAX impact. The Test & Measurement segment recorded an operating profit of $0.4 million, or 5.9% of revenue, compared with segment operating loss of $0.2 million, or negative 1.8% of revenue, in the comparable period of fiscal 2021, reflecting lower manufacturing costs and operating expense.
Hardware revenue was $7.6 million in the fiscal 2022 first quarter, compared with $8.9 million in the prior-year period, as lower Aerospace shipments in the Test & Measurement segment more than offset growth in Product Identification. Supplies revenue was $18.2 million versus $19.1 million in the same period of fiscal 2021. In fiscal 2021, demand for Aerospace supplies was strong in early Q1, while Product Identification supplies picked up later in the quarter as customers added to their stocks of the Company's inks, labels and other materials because of concerns about the pandemic. Service/other revenue was $3.2 million, compared with $2.9 million a year earlier.
Q1 FY 2022 Results Summary
Revenue totaled $29.1 million in the first quarter of fiscal 2022, compared with $30.9 million in the year-earlier period, with a decline in Test & Measurement revenue partly offset by higher revenue in the Product Identification segment.
Gross profit was $10.9 million, or 37.4% of revenue in the first quarter of fiscal 2022, compared with $10.9 million, or 35.1% of revenue, in the same period of fiscal 2021.
Operating expenses totaled $10.2 million in the first quarters of fiscal 2022 and 2021, and operating income was $0.7 million in both periods.
Net income was $0.6 million, or $0.08 per diluted share, in the first quarter of fiscal 2022 compared with net income of $0.4 million, or $0.06 per diluted share, in the first quarter of fiscal 2021.
Adjusted EBITDA, which the Company defines as earnings before interest, taxes, depreciation, amortization and share-based compensation, was $2.5 million for the first quarter of fiscal 2022, or 8.6% of revenue, compared with $2.6 million, or 8.3% of revenue in the first quarter of fiscal 2021. Adjusted EBITDA is a non-GAAP financial measure explained in greater detail below under "Use of Non-GAAP Financial Measure." Please refer to the financial reconciliation table included in this news release for a reconciliation of net income to Adjusted EBITDA for the three months ended May 1, 2021 and May 2, 2020.
Bookings in the first quarter of fiscal 2022 were $32.8 million, compared with $31.2 million in the first quarter of fiscal 2021.
Backlog as of May 1, 2022 was $24.8 million versus $25.9 million at the end of the fiscal 2021 first quarter.
Earnings Conference Call
AstroNova will discuss its fiscal first-quarter 2022 financial results in an investor conference call at 9:00 a.m. ET today. To participate on the conference call, please dial (800) 367-2403 (U.S. and Canada) or (334) 777-6978 (International) approximately 10 minutes prior to the start time and enter confirmation code 8107119.
You can hear a replay of the conference call from 12:00 p.m. ET Thursday, June 10, 2021 until 12:00 p.m. ET on Thursday, June 17, 2021 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The passcode is 8107119. A real-time and an archived audio webcast of the call will be available through the "Investors" section of the AstroNova website, https://investors.astronovainc.com.
Use of Non-GAAP Financial Measure
In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this news release contains the non-GAAP financial measure Adjusted EBITDA, which AstroNova defines as earnings before interest, taxes, depreciation, amortization and share-based compensation. AstroNova believes that the inclusion of this non-GAAP financial measure helps investors gain a meaningful understanding of changes in the Company's core operating results, and also can help investors who wish to make comparisons between AstroNova and other companies on both a GAAP and a non-GAAP basis. AstroNova's management uses Adjusted EBITDA, in addition to GAAP financial measures, as the basis for measuring its core operating performance and comparing such performance to that of prior periods and to the performance of its competitors. Adjusted EBITDA also is used by the Company's management to assist with their financial and operating decision-making.
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies since 1969, is focused on designing, manufacturing, distributing and servicing a broad range of products that acquire, store, analyze and present data in multiple formats. The Company's Product Identification segment offers a complete line-up of label and direct-to-package printing hardware and supplies, allowing customers to mark, track and enhance their products' appearance. Supported by AstroNova's customer application experts and technology leadership in printing, material science and high-speed data processing, customers benefit from an optimized, "total solution" approach. The Test and Measurement segment includes the AstroNova Aerospace business unit. This segment designs and manufactures flight deck printers, networking hardware and related accessories serving the world's aerospace and defense industries with proven advanced airborne technology solutions for the cockpit, the cabin and so much more. AstroNova is a member of the Russell Microcap® Index and the LD Micro Index (INDEXNYSEGIS: LDMICRO). Additional information is available by visiting www.astronovainc.com.
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 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, 2021 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.
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