Latest news with #ToughWriter
Business Wire
13-06-2025
- Business
- Business Wire
AstroNova Sends Letter to Shareholders: Board Focused on Driving Accountability
WEST WARWICK, R.I.--(BUSINESS WIRE)-- AstroNova, Inc. (Nasdaq: ALOT), a leading innovator in data visualization technology, today sent the following letter to shareholders: We urge Shareholders to Vote 'FOR' AstroNova's six highly qualified director nominees on the WHITE universal proxy card TODAY We, the Board of Directors of AstroNova, Inc. (the 'Company' or 'AstroNova'), urge shareholders to protect their investment by voting the WHITE proxy card for only AstroNova's six nominees and NOT the Samir Patel and Askeladden Capital Management LLC ('Askeladden') nominees. The 2025 Annual Meeting of Shareholders of AstroNova will be held at the offices of Foley Hoag LLP, Seaport West, 155 Seaport Boulevard, Boston, Massachusetts on Wednesday, July 9, 2025, and all shareholders of record as of the close of business on May 15, 2025, are entitled to vote at the meeting. Shareholders with any questions about how to vote their shares may call the Company's proxy solicitor, Alliance Advisors, toll-free at 1-844-202-6164. VOTE USING THE WHITE PROXY CARD TODAY IN SUPPORT OF ASTRONOVA'S SIX HIGHLY QUALIFIED DIRECTORS Dear Fellow Shareholders, We are listening to you, we understand your frustration with recent financial performance, and we are taking your feedback into our decision-making. While AstroNova's leadership has worked tirelessly, and continues to do so, on reaccelerating revenue growth and improving profitability, we are doubling down on our commitment to shareholders and accountability for AstroNova and its leadership team. The Board of Directors has approved a new share-based long-term incentive plan for the executive team and segment leadership that directly ties executive compensation to 3-year revenue growth and adjusted earnings per share targets. We believe this new incentive program strongly connects executive pay to the long-term interests of our shareholders and increases the level of accountability for the leadership team to execute on AstroNova's strategy. The new long-term incentive plan includes two performance goals: Cumulative organic revenue growth 1 in fiscal year 2028 of at least 20% over fiscal year 2025 revenue, with increasing payouts for growth of up to 30%, and Adjusted earnings per share 2 in fiscal year 2028 of at least $1.35, with increasing payouts for adjusted earnings per share of up to $1.85. We and the management team are committed to delivering meaningful shareholder value, which we believe will be driven through: Transitioning Aerospace customers to high-performance and high-reliability ToughWriter printers; Launching innovative Product Identification solutions that provide compelling value to customers; and Streamlining operations and decreasing supply chain costs. We believe our first quarter fiscal 2026 results with 14% revenue growth driven by double digit growth in both segments is an early indicator of the progress being made by the Company. SAMIR'S ACCUSATION THAT THE BOARD WILL NOT ENGAGE IS INACCURATE While Samir Patel has claimed that the Board has not been engaged, in fact he had a conversation with Richard S. Warzala on March 14. Mr. Warzala responded immediately on the request even after suggesting that the call occur after the quiet period. On June 10, Alexis Michas reached out to Samir Patel to schedule a conversation. Samir would not make himself available that day nor the next two days showing he would not engage until after his townhall meeting. While Samir misrepresents the AstroNova Board's engagement, he also continues to distract employees, management and the Board from executing a clear strategy and waste shareholder dollars on a misguided campaign. His disruptive calls and outreach to employees, prospective employees and customers is undermining management's continuing diligent execution on our strategic plan to drive growth and improve profitability. SAMIR'S PLAN IS DISRUPTIVE AND DISCONNECTED FROM REALITY After careful review and consideration by the Board, we have deemed Samir Patel's recent three-point plan as redundant, extremely disruptive to existing customer relationships, and mistaken in its underlying assumptions. It also validates his naivete about the role of the Board of Directors at AstroNova and suggests significant overreach that not only encroaches on management but could set back the Company's hard-won and continuing progress. Samir's long list of 'ideas' to revamp the Company have either already been in place or are ongoing processes that began long before he made his suggestions AstroNova has a long history and strong relationship with its banking partners, continues to pay down its total debt and is focused on cash management to accelerate its deleveraging plan The Company has instituted cost-savings initiatives, headcount reductions, and operational improvements as part of its previously-announced restructuring and reorganization Samir's plan to put his nominees, who lack knowledge of the highly specialized printing market and have no relationships with our major Aerospace and commercial customers, in front of customers would be extremely disruptive to AstroNova's working relationships and existing contracts Samir, who has no go-to-market, sales or marketing experience, wants to evaluate customer and sales processes that have just recently been re-evaluated, reorganized with new segment leadership and newly trained sales teams, and optimized to decrease customer friction points and enhance sales targeting Samir wants to evaluate the MTEX integration, which is substantially complete at this point following the right-sizing of its portfolio, the reengineering of its product portfolio, and the successful accelerated launches of the first three of five next-generation products being deployed this year Lastly, but most critically, Samir has based a strategic sale plan on a single deal comparison of an unrelated company, Servotronics, with products that require entirely different engineering and sales processes and have a different financial profile The more specificity that Samir provides, the more readily apparent is his lack of knowledge and understanding of AstroNova's business, end markets, and customer needs. We urge shareholders to protect their investment by NOT voting for any of the nominees proposed by Samir Patel or Askeladden. We recommend that you vote on the WHITE proxy card FOR all six of AstroNova's nominees. We urge you not to vote using any gold proxy card from Samir Patel or Askeladden. Please disregard and discard those cards. Thank you again for your continued support of AstroNova. Sincerely, AstroNova Board of Directors About AstroNova AstroNova (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. Its strategy is to drive profitable growth through innovative new technologies, building its installed base to expand recurring revenue while strategically sourcing its replacement products. The Product Identification segment provides a wide array of digital, end-to-end product marking and identification solutions, including hardware, software, and supplies for OEMs, commercial printers, and brand owners. The Aerospace segment provides products designed for airborne printing solutions, avionics, and data acquisition. Aerospace products include flight deck printing solutions, networking hardware, and specialized aerospace-grade supplies. Data acquisition systems are used in research and development, flight testing, missile and rocket telemetry, production monitoring, power, and maintenance applications. For more information please visit: 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 AstroNova's 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 AstroNova's anticipated performance, involve risks, uncertainties and other factors, some of which are beyond AstroNova's 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 (i) our customers may not adopt our ToughWriter printers at the rate or on the schedule that we expect; (ii) our new Product Identification products may not be deployed on our planeed schedule or be accepted by the market as quickly as we expect, (iii) our efforts to streamline our supply chain and reduce our costs may not be successful, and (iv) those factors set forth in AstroNova's Annual Report on Form 10-K for the fiscal year ended January 31, 2025 and subsequent filings AstroNova makes with the Securities and Exchange Commission. AstroNova 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. Important Additional Information In connection with its 2025 Annual Meeting of Shareholders, AstroNova has filed a definitive proxy statement with the SEC and caused it to be mailed, together with an annual report and proxy card, to each of our shareholders. The proxy statement and a copy of the other materials that we file with the SEC from time to time, including our Annual Report on Form 10-K, as amended, for the fiscal year ended January 31, 2025, may be obtained free of charge via the Internet at and through the Investor Relations page of our corporate website, In addition, investors and security holders may obtain free copies of the proxy statement, the annual report and other proxy materials by directing a written request to ALOTproxy@ The proxy statement and other relevant materials we have made or will make available contain important information about the director nominees and the other matters to be voted upon by shareholders at the 2025 Annual Meeting of Shareholders. AstroNova urges shareholders to read the proxy statement, and any other relevant materials we make available, before making any decision with respect to the matters to be voted upon at the 2025 Annual Meeting of Shareholders, including the election of directors. 1 Cumulative organic revenue growth is defined as the amount, expressed as a percentage, by which AstroNova's revenue in fiscal year 2028, excluding any revenues attributable to any subsidiary, product line or other line of business it may acquire subsequent to January 31, 2025, exceeds its revenues for the fiscal year ended January 31, 2025 2 Adjusted earnings per share is defined as AstroNova's earnings per share, as calculated in accordance with GAAP, adjusted to exclude the impact of non-recurring items, as approved by AstroNova's Human Capital and Compensation Committee, such as restructuring charges, impairment charges, and unbudgeted gains or losses outside the control of management.
Yahoo
11-06-2025
- Business
- Yahoo
ALOT's Q1 Adjusted EPS Declines Y/Y Due to Elevated Costs
Shares of AstroNova, Inc. ALOT have declined 1.1% since the company reported its earnings for the quarter ended April 30, 2025. This compares unfavorably to the S&P 500 index's 0.7% growth during the same period. Over the past month, ALOT's stock has seen a marginal decrease of 0.1%, while the S&P 500 has advanced 3.1%, indicating underperformance relative to the broader market. AstroNova incurred a net loss of 5 cents per share for the first quarter of fiscal 2026 against a net income of 15 cents per share in the prior-year quarter. Adjusted net income stood at 5 cents per share, down from 15 cents per share in the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.) The company's revenues rose 14.4% year over year to $37.7 million, buoyed by double-digit growth in both of its reporting segments. Revenues from the Product Identification (Product ID) segment increased 13.4% to $26.3 million, aided by demand for desktop label printers and contributions from the recently acquired MTEX. The Aerospace segment grew 16.8% to $11.4 million, driven by increased ToughWriter shipments to commercial and defense customers. Despite the top-line strength, profitability metrics declined on a GAAP basis. Operating income dropped to $0.6 million from $1.3 million a year ago, and the company posted a net loss of $0.4 million, against a net income of $1.2 million in the prior-year quarter. Adjusted net income, however, stood at $0.4 million. Adjusted EBITDA improved 27.6% year over year to $3.1 million, and the margin expanded by 80 basis points to 8.3%. AstroNova, Inc. price-consensus-eps-surprise-chart | AstroNova, Inc. Quote In Product ID, AstroNova launched three new next-generation printing solutions: the QL-425 and QL-435 for professional labeling and the AJ-800 for direct-to-package printing. While operating income for this segment declined 6.7% to $2.8 million, the adjusted operating income rose 4.4% to $3.1 million, suggesting margin pressure from restructuring and acquisition-related costs. The Aerospace business delivered operating income of $2.8 million, up 60.5% year over year. Adjusted operating income rose to $2.9 million, or 25.7% of revenue, thanks to higher volumes and product mix improvements. Notably, 42% of Aerospace unit shipments in the quarter came from ToughWriter printers, with management targeting over 80% by year-end. Orders rose 5.4% year over year to $34.9 million, supported by growth in Product ID, including a three-year label supply contract with a multinational beauty firm and a renewed agreement with a U.K.-based coffee company. However, backlog declined to $25.5 million as of April 30, 2025 from $28.3 million at fiscal 2025-end, largely due to fulfillment of previously delayed shipments and timing in Aerospace orders. CEO Greg Woods emphasized progress on strategic initiatives, particularly the transition to high-margin ToughWriter products in Aerospace and the commercialization of next-generation Product ID printers. Management highlighted that 83% of revenue was recurring and attributed improved adjusted operating income to the synergy from the MTEX acquisition and cost reduction efforts. Woods also reinforced the company's aim to strengthen the margin profile and profitability through supply chain simplification and restructured operations. These include a flatter organizational structure and revised compensation plans tied to key performance indicators. The quarter's results were shaped by both structural and cyclical factors. Gross margin dipped to 33.6% from 36.3% in the prior year due to acquisition-related dilution and legacy contract mix. However, adjusted gross margin came in at 34.6%, showing improvement from the previous quarter, driven by higher volumes and favorable mix in Aerospace. Interest expenses nearly doubled to $0.9 million due to higher debt and financing costs associated with the MTEX acquisition. Operating expenses rose largely due to increased healthcare costs and professional fees. Management noted minimal impact from tariffs, citing favorable contract terms and a globally diversified manufacturing base across the United States, the EU and Canada. Price increases implemented in April and May are expected to help mitigate inflationary pressures. AstroNova reaffirmed its full-year fiscal 2026 outlook. The company continues to expect revenue between $160 million and $165 million, representing about 7% growth at the midpoint. Adjusted EBITDA margin is projected to range from 8.5% to 9.5%, indicating continued margin expansion from cost containment and operational improvements. During the quarter, AstroNova completed the integration of MTEX into its Product ID segment, which contributed $1.4 million in revenues. The company also executed $1.9 million in annualized cost reductions as part of a broader $3 million restructuring initiative expected to be completed by the second quarter. Additionally, AstroNova paid down $3.9 million in debt, improved its liquidity position to $12.6 million, and reported free cash flow of $4.4 million for the quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AstroNova, Inc. (ALOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Journals
28-05-2025
- Business
- Business Journals
AstroNova lands contract for military cockpit printers
A West Warwick company has landed a $10 million, multi-year contract to supply military-grade cockpit printers and ethernet switches to a major defense industry customer. AstroNova Inc. (Nasdaq: ALOT) has agreed to deliver 300 "ToughWriter" printer systems to a military aircraft maker, the company said this month. The devices are a beefed-up version of cockpit printers that AstroNova regularly supplies to the commercial aviation sector. The commercial and military cockpit printers "are manufactured right here in Rhode Island at our West Warwick facility," CEO Gregory Woods told Business First. "We have over 30,000 printers flying throughout the world. You're unlikely to be on a plane that doesn't have our product." GET TO KNOW YOUR CITY Find Local Events Near You Connect with a community of local professionals. Explore All Events The onboard devices, also known as flight deck printers, convert data from avionics systems into paper records. They can print out flight plans, weather information, clearances, and other information for pilots and crew. The printers can log maintenance and system reports, and other critical data. The paper documents let pilots quickly access important information without having to navigate digital screens, and keep working even if digital systems go down. "From a pilot perspective, it's a safety and a workload feature," said Woods. The CEO cited a confidentiality agreement and declined to share the name of the customer. But he said the U.S.-based "leading global defense technology company" re-upped its contract with AstroNova due to the quality and reliability of its next-generation products. AstroNova has a global headcount of more than 440, with 222 Rhode Island employees. AstroNova recovering from 2025 challenges The new contract is a boost for AstroNova, which suffered a challenging year in 2025. The company struggled to integrate the assets and operations of MTEX, a Portuguese printing company it bought in 2024. The $22.1 million M&A didn't generate revenue as expected. AstroNova took a $13.4 million goodwill impairment and had to renegotiate its debt facility with Bank of America. An ongoing conflict over the MTEX deal is now in arbitration, the company has disclosed. Meanwhile, AstroNova is facing a proxy challenge. Activist investor Askeladden Capital is highly critical of the MTEX acquisition and pushing shareholders to replace most of the company's board. AstroNova is pushing back, saying the company is at a critical juncture under effective leaders. The annual meeting is set for June 9. Woods maintains that the MTEX deal will ultimately be good for AstroNova because it delivered important technology, a high-quality European manufacturing facility, and access to new markets. The company has successfully grown via M&As in the past, and the MTEX integration will proceed, according to Woods. AstroNova took major steps in 2025 to improve its operations. The company improved its leadership team, upgraded systems, streamlined operations, and eliminated waste, Woods told shareholders in a recent report. For fiscal 2026, AstroNova expects net revenue of at least $160 million, or a 7% boost from the year prior. AstroNova shares were trading at around $9.30 on Wednesday, a four-year low. Its market capitalization stands at around $70.6 million. The stock saw an $18 peak in January. AstroNova, which went public in 1981, bills itself as a global leader in data visualization technologies. Asked what that means, the CEO boiled it down. "We process data and give it to people in a human usable format," Woods said. These are the 18 fastest-growing banks in Rhode Island Year-over-year change (%) Rank Prior Rank Name, 1 1 Shoreham Bank 2 2 Centreville Bank 3 3 Webster Bank View this list
Yahoo
15-04-2025
- Business
- Yahoo
AstroNova Inc (ALOT) Q4 2025 Earnings Call Highlights: Navigating Challenges and Capitalizing ...
Net Revenue: $37.4 million for Q4, down 5.6% year-over-year. Gross Profit: $12.7 million for Q4, with a gross profit margin of 34.1%. Operating Expenses: $25 million for Q4, including a $13.4 million non-cash goodwill impairment charge. Non-GAAP Operating Income: $1.4 million for Q4. Adjusted EBITDA: $2.8 million for Q4. Order Backlog: $28.3 million as of January 31, 2025. Aerospace Segment Revenue: $48.9 million for fiscal 2025, with a record operating profit of 22.8%. PI Segment Revenue: $25.7 million for Q4, down 3.6% year-over-year. Cash and Cash Equivalents: $5.1 million at the end of Q4. Free Cash Flow: $3.7 million for fiscal 2025. Fiscal 2026 Revenue Guidance: $160 million to $165 million. Fiscal 2026 Adjusted EBITDA Margin Guidance: 8.5% to 9.5%. Warning! GuruFocus has detected 5 Warning Signs with ALOT. Release Date: April 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. AstroNova Inc (NASDAQ:ALOT) achieved record revenue in its Aerospace segment, contributing $48.9 million, which represents approximately one-third of consolidated sales. The company is executing a restructuring plan expected to deliver $3 million in annual cost savings. AstroNova Inc (NASDAQ:ALOT) is focusing on higher-margin, higher-growth products by rightsizing its product portfolio. The company plans to introduce five next-generation products based on MTEX's print engine technology, which is expected to enhance product offerings and drive growth. Recurring revenue accounted for 71% of consolidated sales in fiscal 2025, providing a more predictable revenue stream. AstroNova Inc (NASDAQ:ALOT) faced challenges with the integration of the MTEX acquisition, which impacted performance. The company experienced lower demand due to the Boeing strike and delays in large defense industry orders. Net revenue for the fourth quarter was down 5.6% to $37.4 million, with a decline in both segments. The PI segment reported a loss for the quarter due to goodwill impairment and acquisition accounting adjustments. Gross profit margin decreased to 34.1% from 37.2% in the prior year period, reflecting lower revenue and less favorable product mix. Q: Can you elaborate on the restructuring plan and its expected impact on AstroNova's financials? A: Gregory Woods, President and CEO, explained that the restructuring plan is anticipated to deliver $3 million in annual cost savings. The focus is on rightsizing the product portfolio to emphasize higher-margin, higher-growth products, which should enhance profitability and growth. Q: What are the key growth catalysts for the Aerospace segment? A: Gregory Woods highlighted two main catalysts: the transition to the higher-margin ToughWriter printers and the expansion of the service and supplies business. The ToughWriter transition is expected to double its share of total printer deliveries to 86% by the end of the fiscal year, enhancing margins and reducing royalty obligations. Q: How is the integration of MTEX progressing, and what challenges have been encountered? A: Gregory Woods noted that MTEX integration has been challenging but significant progress has been made. The focus has been on reorganizing and realigning the business, improving accountability, and leveraging MTEX's technologies and manufacturing facilities. The integration is more complex than anticipated, but the strategic upside is significant. Q: What are the expectations for the new print engine technology in the PI segment? A: Gregory Woods stated that the new print engine technology will allow for flexibility in ink usage and is expected to lower costs and reduce supplier dependence. Five next-generation products incorporating this technology are planned for release, which should drive increased consumables revenue. Q: What financial guidance has been provided for fiscal 2026? A: Tom DeByle, CFO, provided guidance for fiscal 2026, anticipating net revenue between $160 million and $165 million, representing a 7.4% year-over-year growth at the midpoint. The adjusted EBITDA margin is expected to be between 8.5% and 9.5%, reflecting a 60 basis point increase from fiscal 2025. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
