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AstroNova Inc. (ALOT+0.58%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing reports revenue of $40.4 million for the third quarter, a 7.7% increase compared to $37.5 million in the same period of the previous year. Domestic sales increased by 12.1% to $23.5 million, while international sales rose by 2.1% to $16.9 million.
Hardware revenue decreased by 9.7% to $11.6 million, attributed to a decline in sales in the Product Identification (PI) segment. Supplies revenue increased by 4.7% to $20.9 million, driven by higher sales in the Trojan Label product line.
Service and other revenues rose by 67.5% to $7.9 million, primarily due to increased aerospace parts and repair revenue in the Test & Measurement (T&M) segment.
Gross profit for the quarter was $13.7 million, down 7.2% from the previous year's $14.8 million, with a gross margin of 33.9%, reflecting a decrease from 39.4% in the prior year.
Operating expenses increased by 22.5% to $12.5 million, influenced by costs associated with the MTEX acquisition. Selling and marketing expenses rose by 17.5%, while general and administrative expenses increased by 41.0%.
AstroNova reported net income of $0.2 million, or $0.03 per diluted share, for the quarter. This compares to net income of $2.8 million, or $0.37 per diluted share, in the same period of the previous year.
For the first nine months of the fiscal year, revenue totaled $113.9 million, a 5.0% increase from $108.5 million in the prior year. The PI segment reported a slight decrease in revenue, while the T&M segment saw a 19.9% increase.
Gross profit for the first nine months was $40.0 million, with a margin of 35.1%, compared to $36.9 million and a margin of 34.0% in the prior year.
Operating expenses for the first nine months increased by 13.6% to $36.3 million, largely due to MTEX-related costs. The company reported net income of $1.1 million, or $0.15 per diluted share, compared to $2.0 million, or $0.27 per diluted share, in the prior year.
AstroNova's acquisition of MTEX, a Portugal-based manufacturer of digital printing equipment, was completed in May 2024. The integration has been resource-intensive, with MTEX contributing $2.5 million in revenue and an operating loss of $2.4 million year-to-date.
The company continues to focus on reducing inventory and debt, with $4.4 million in cash and cash equivalents and $20.1 million borrowed under its revolving credit facility as of November 2, 2024.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the AstroNova Inc. quarterly 10-Q report dated December 12, 2024. To report an error, please email earnings@qz.com.