Astronova announces second-quarter fiscal 2023 financial results
West warwick, r.i.--(business wire)--astronova, inc. (nasdaq: alot), a global leader in data visualization technologies, today announced financial results for its fiscal 2023 second quarter ended july 30, 2022. “the strong secular trends of our business, such as increasing air travel and the growth of digital print for packaging, continue to drive demand for our products and services,” said greg woods, astronova president and ceo. “we achieved solid orders growth in the quarter, with bookings up over the prior quarter, as well as the prior year. for the first half of fiscal 2023, total bookings nearly set a record, just missing the previous high set in fiscal 2020 by a mere half percent. “revenue was also up nicely in the quarter, however, less than expected as certain areas of our business continued to be affected by supply chain disruptions, higher component costs, and increased freight expenses. we have taken several actions, including selective implementation of price increases, to lessen the impact of those challenges,” woods said. “reflecting our demand drivers, we generated 8% top-line growth in the second quarter, while bookings increased 14% year-over-year and 7% from the first quarter of fiscal 2023,” woods said. “these increases were primarily driven by our test & measurement segment, with the continued production ramp of the boeing 737 max, an increase in military-related orders, and higher demand for our repair and parts services associated with the rebound of commercial air travel. “as we move into the second half of the year, we are very excited about our recent acquisition of astro machine, which expands our label business and adds new market adjacencies for us in areas such as custom-branded packaging, promotional inserts, and other e-commerce solutions. the acquisition also significantly enhances our material handling and automation capabilities and creates what we expect will be meaningful cross-selling opportunities.” cares act benefits in q2 fy 2022 during the second quarter of fiscal 2022, the principal and interest were forgiven on the paycheck protection program (ppp) loan astronova received in fiscal 2021. in addition, the company became eligible for an employee retention credit (erc) authorized under the coronavirus aid, relief, and economic security (cares) act. in total, for the fiscal 2022 second quarter, these two items (the cares act benefits) benefited net income by $6.0 million, or $0.83 per diluted share. there were no similar adjustments in the second quarter of fiscal 2023. q2 fy 2023 operating segment results product identification segment revenue in the second quarter of fiscal 2023 was $23.4 million, down 0.5% from $23.5 million in the prior-year period. gaap segment operating income was $1.6 million, or 7.0% of revenue, compared with $4.4 million, or 18.8% of revenue, a year earlier, reflecting less favorable mix and higher costs in the 2023 period. on a non-gaap basis, excluding the cares act benefits, segment income in the second quarter of fiscal 2022 was $3.0 million, or 12.7% of revenue. test & measurement segment revenue in the second quarter of fiscal 2023 increased 39.7% to $8.9 million from $6.4 million in the same period of fiscal 2022. gaap segment operating income was $2.2 million, or 24.4% of revenue, compared with operating income of $1.7 million, or 26.9% of revenue, in the second quarter of fiscal 2022. on a non-gaap basis, excluding the cares act benefits, segment income in the second quarter of fiscal 2022 was $0.9 million, or 14.3% of revenue. q2 fy 2023 results summary revenue for the second quarter of fiscal 2023 totaled $32.3 million, up 8.1% from $29.8 million in the year-earlier period, which was attributable to higher revenue in the test & measurement segment. hardware revenue was $8.6 million, a 9.6% increase from the prior-year period. supplies revenue was $19.2 million, up 2.6%. revenue from service/other was $4.5 million, up 35.5% from the comparable quarter of fiscal 2022. gaap gross profit for the second quarter of fiscal 2023 was $11.4 million, or 35.3% of revenue, compared with $12.7 million, or 42.6% of revenue, in the same period of fiscal 2022. on a non-gaap basis, excluding the cares act benefits, gross profit for the second quarter of fiscal 2022 was $11.1 million, or 37.1% of revenue. gaap operating expenses for the second quarter of fiscal 2023 totaled $10.1 million, up 9.5% compared with $9.3 million in the second quarter of fiscal 2022, primarily reflecting higher selling and marketing expenses in the 2023 period. on a non-gaap basis, excluding the cares act benefits, operating expenses for the second quarter of fiscal 2022 were $9.8 million. gaap operating income for the second quarter of fiscal 2023 was $1.2 million, or 3.8% of revenue, compared with $3.5 million, or 11.6% of revenue, in the same period of fiscal 2022. on a non-gaap basis, excluding the cares act benefits, operating income for the second quarter of fiscal 2022 was $1.3 million, or 4.4% of revenue. gaap net income for the second quarter of fiscal 2023 was $0.6 million, or $0.08 per diluted share, compared with $7.0 million, or $0.96 per diluted share, in the second quarter of fiscal 2022. on a non-gaap basis, excluding the cares act benefits, net income for the second quarter of fiscal 2022 was $1 million, or $0.13 per diluted share. adjusted earnings before interest, taxes, depreciation, and amortization (adjusted ebitda) was $2.2 million, or 6.7% of revenue, for the second quarter of fiscal 2023, compared with $9.2 million, or 30.8% of revenue, in the comparable period of fiscal 2022. excluding the effect of the cares act benefits, adjusted ebitda was $2.6 million, or 8.7% of revenue, in the second quarter of fiscal 2022. non-gaap net income, non-gaap earnings per diluted share, non-gaap gross profit, non-gaap operating expenses, non-gaap segment operating income, adjusted ebitda, and adjusted ebitda excluding the cares act benefits are non-gaap financial measures explained in greater detail below under “use of non-gaap financial measures.” please refer to the financial reconciliation table in this news release for a reconciliation of non-gaap measures to the closest comparable gaap measures for the three and six months ended july 30, 2022, and july 31, 2021. bookings for the second quarter of fiscal 2023 increased 14.0% to $34.8 million from $30.6 million in the second quarter of fiscal 2022. backlog as of july 30, 2022 increased 30.6% to $31.8 million from $24.4 million on july 31, 2021. q2 fy 2023 conference call details astronova will discuss its second-quarter fiscal 2023 results in an investor conference call at 9:00 a.m. et today. to participate in the conference call, please dial (888) 882-4478 (u.s. and canada) or (773) 377-9070 (international) approximately 10 minutes prior to the start time and enter confirmation code 8162612. you can hear a replay of the conference call from 12:00 p.m. et wednesday, september 7, 2022, until 12:00 p.m. et wednesday, september 14, 2022, by dialing (888) 203-1112 (u.s. and canada) or (719) 457-0820 (international). the confirmation code is 8162612. a real-time and 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 measures in addition to financial measures prepared in accordance with generally accepted accounting principles (gaap), this news release contains the non-gaap financial measures non-gaap net income, non-gaap earnings per diluted share, non-gaap gross profit, non-gaap operating expenses, non-gaap segment operating income, ebitda, ebitda excluding cares act items, adjusted ebitda, which astronova defines as earnings before interest, taxes, depreciation, amortization, and share-based compensation, and adjusted ebitda excluding cares act items. astronova believes that the inclusion of these non-gaap financial measures 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 these non-gaap financial measures, 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. these measures are also used by the company’s management to assist with their financial and operating decision-making. 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. 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 test and measurement segment provides products designed for airborne printing solutions, avionics, and data acquisition. our aerospace products include flight deck printing solutions, networking hardware, and specialized aerospace-grade supplies. our data acquisition systems are used in research and development, flight testing, missile, and rocket telemetry production monitoring, power, and maintenance applications. 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. 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, and the benefits expected to be realized from the acquisition of astro machine, 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, 2022, 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. july 30, 2022 july 31, 2021 july 30, 2022 july 31, 2021 $ 32,259 $ 29,845 $ 63,269 $ 58,923 20,877 17,129 41,158 35,320 11,382 12,716 22,111 23,603 35.3 % 42.6 % 34.9 % 40.1 % 5,981 5,061 11,863 11,154 1,595 1,539 3,118 3,255 2,571 2,664 5,131 5,008 10,147 9,264 20,112 19,417 1,235 3,452 1,999 4,186 3.8 % 11.6 % 3.2 % 7.1 % - 4,466 - 4,466 (210 ) (171 ) (385 ) (392 ) (241 ) 50 (377 ) (114 ) 20 (79 ) 52 (63 ) (431 ) 4,266 (710 ) 3,897 804 7,718 1,289 8,083 220 699 280 471 $ 584 $ 7,019 $ 1,009 $ 7,612 $ 0.08 $ 0.97 $ 0.14 $ 1.06 $ 0.08 $ 0.96 $ 0.14 $ 1.04 7,310 7,209 7,287 7,177 7,348 7,329 7,355 7,297 july 30, 2022 january 31, 2022 $ 4,285 $ 5,276 17,382 17,124 41,727 34,609 0 3,135 4,268 3,634 67,662 63,778 50,764 50,821 (40,187 ) (39,380 ) 10,577 11,441 18,314 19,200 11,501 12,156 5,582 5,591 887 1,094 1,775 1,695 $ 116,298 $ 114,955 $ 7,624 $ 8,590 2,437 3,512 3,334 4,113 4,500 - 1,875 2,000 1,000 1,000 301 235 1,169 323 281 262 22,521 20,035 7,917 8,154 3,611 4,361 627 808 399 399 127 186 35,202 33,943 533 528 60,347 59,692 57,523 56,514 (34,223 ) (33,974 ) (3,084 ) (1,748 ) 81,096 81,012 $ 116,298 $ 114,955 six months ended six months ended july 30, 2022 july 31, 2021 july 30, 2022 july 31, 2021 july 30, 2022 july 31, 2021 july 30, 2022 july 31, 2021 $ 23,382 $ 23,492 $ 1,644 $ 4,406 $ 45,106 $ 46,590 $ 3,058 $ 7,134 8,877 6,353 2,162 1,710 18,163 12,333 4,072 2,060 $ 32,259 $ 29,845 3,806 6,116 $ 63,269 $ 58,923 7,130 9,194 2,571 2,664 5,131 5,008 1,235 3,452 1,999 4,186 (431 ) 4,266 (710 ) 3,897 804 7,718 1,289 8,083 220 699 280 471 $ 584 $ 7,019 $ 1,009 $ 7,612 $ 11,382 $ 12,716 $ 22,111 $ 23,603 $ - $ (1,641 ) $ - $ (1,641 ) $ 11,382 $ 11,075 $ 22,111 $ 21,962 $ 10,147 $ 9,264 $ 20,112 $ 19,417 $ - $ 489 $ - $ 489 $ 10,147 $ 9,753 $ 20,112 $ 19,906 $ 1,235 $ 3,452 $ 1,999 $ 4,186 $ - $ (2,130 ) $ - $ (2,130 ) $ 1,235 $ 1,322 $ 1,999 $ 2,056 $ 584 $ 7,019 $ 1,009 $ 7,612 $ - $ (1,615 ) $ - $ (1,615 ) $ - $ (4,426 ) $ - $ (4,426 ) $ 584 $ 978 $ 1,009 $ 1,571 $ 0.08 $ 0.96 $ 0.14 $ 1.04 $ - $ (0.22 ) $ - $ (0.22 ) $ - $ (0.60 ) $ - $ (0.60 ) $ 0.08 $ 0.13 $ 0.14 $ 0.22 july 30, 2022 july 31, 2021 july 30, 2022 july 31, 2021 $ 584 $ 7,019 $ 1,009 $ 7,612 210 171 385 392 220 699 280 471 908 849 1,820 2,276 $ 1,922 $ 8,738 $ 3,494 $ 10,751 - (1,615 ) - (1,615 ) - (4,426 ) - (4,426 ) - (515 ) - (515 ) - (40 ) - (40 ) $ 1,922 $ 2,142 $ 3,494 $ 4,155 july 30, 2022 july 31, 2021 july 30, 2022 july 31, 2021 $ 584 $ 7,019 $ 1,009 $ 7,612 210 171 385 392 220 699 280 471 908 849 1,820 2,276 235 469 572 947 $ 2,157 $ 9,207 $ 4,066 $ 11,698 - (1,615 ) - (1,615 ) - (4,426 ) - (4,426 ) - (515 ) - (515 ) - (40 ) - (40 ) $ 2,157 $ 2,611 $ 4,066 $ 5,102 $ 1,644 $ 2,162 $ 3,806 $ 4,406 $ 1,710 $ 6,116 $ 3,058 $ 4,072 $ 7,130 $ 7,134 $ 2,060 $ 9,194 $ - $ - $ - $ (1,430 ) $ (802 ) $ (2,232 ) $ - $ - $ - $ (1,430 ) $ (802 ) $ (2,232 ) $ 1,644 $ 2,162 $ 3,806 $ 2,976 $ 908 $ 3,884 $ 3,058 $ 4,072 $ 7,130 $ 5,705 $ 1,258 $ 6,963
