AstroNova Announces Strategic Realignment of Product Identification Segment to Improve Cost and Operational Efficiencies
August 01 2023 - 7:00AM
Business Wire
Restructuring Actions Expected to Generate Cost
Savings of More than $2.4 Million on an Annualized Basis
AstroNova, Inc. (Nasdaq: ALOT) (“AstroNova” or the “Company”), a
global leader in data visualization technologies, today announced
the implementation of a realignment of its Product Identification
(“PI”) segment. The realignment is designed to streamline the cost
structure and enhance the operational efficiencies of the segment
to capitalize on the synergies of the Company’s Astro Machine, Inc.
subsidiary, which was acquired in August 2022.
As part of the realignment, AstroNova will transition more PI
printer manufacturing from both Asia and its West Warwick, Rhode
Island plant to the Astro Machine facility in Elk Grove Village,
Illinois. In addition, AstroNova will exit certain older,
lower-margin or low volume PI products to focus on expanding the
sales of higher margin product lines with more advanced
functionality and greater demand. Related initiatives include
consolidation of international PI sales and distribution facilities
and streamlining of AstroNova’s channel partner network, as well as
acceleration of the ongoing printer retrofit program to restore
printers sidelined due to a supplier’s ink quality issue.
“Leveraging our continuous improvement process and the synergies
that we continue to realize with last year’s acquisition of Astro
Machine, we have identified opportunities to streamline the selling
process and better utilize our manufacturing footprint,” said Greg
Woods, AstroNova’s President and Chief Executive Officer. “Creating
a leaner, more efficient PI segment focuses resources on delivering
the best solutions for customers and the highest-return
opportunities for AstroNova.”
The actions being announced today are expected to generate more
than $2.4 million in annualized savings for AstroNova. To realize
these ongoing improvements, the Company will incur a pre-tax
restructuring charge of approximately $3.2 million, of which
approximately $1.7 million will be non-cash. A substantial portion
of the restructuring charge will be recorded in the Company’s
fiscal 2024 second-quarter financial results for the three months
ended July 29, 2023.
AstroNova plans to release its FY 2024 second-quarter financial
results before the opening of the market on Wednesday, September 6,
2023.
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 https://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,
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, (i) the
risk that we may not realize the anticipated benefits of our
Product Identification segment restructuring plan, (ii) the risk
that we may not be able to realize the expected synergies from our
acquisition of Astro Machine, (iii) the risk that apparent
improvements in the Aerospace and Defense sectors may not continue
and (iv) those factors set forth in the Company’s Annual Report on
Form 10-K for the fiscal year ended January 31, 2023 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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version on businesswire.com: https://www.businesswire.com/news/home/20230731373685/en/
Scott Solomon Sharon Merrill Associates, Inc. (857) 383-2409
ALOT@investorrelations.com
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