Business
Astronics Corporation Provides Update on Progress
Unaudited revenue of approximately $198 million for fourth quarter 2019 exceeded guidance 2020 revenue guidance withdrawn due to uncertainty related to 737
About this update from Astronics Corporation
[{"type":"text","content":"\n\nUnaudited revenue of approximately $198 million for fourth quarter 2019 exceeded guidance\n\n\n2020 revenue guidance withdrawn due to uncertainty related to 737 MAX\n\n\nNew VVIP IFE platform “Avenir” successfully launched\n\n\nExpects restructuring charges related to antenna business of $29 million to $35 million in fourth quarter 2019 \n\n\nEstimating intellectual property damages of an additional $18 million in fourth quarter; Company has filed appeal and is vigorously defending position\n\n\nTemporarily pausing stock buyback initiatives \n\n\n EAST AURORA, N.Y.--(BUSINESS WIRE)--\nAstronics Corporation (Nasdaq: ATRO), a leading provider of advanced technologies for global aerospace, defense, and other mission critical industries, today provided an update on various projects and events impacting 2019 results and expectations for 2020.\n\n\nFourth Quarter Revenue and 2020 Guidance\n\n\nThe Company ended 2019 with unaudited preliminary revenue of approximately $198 million in the fourth quarter, slightly exceeding the high end of guidance that was issued on November 5, 2019. Preliminary bookings were\n\n\n$156 million in the fourth quarter and preliminary backlog at year-end was $359 million. Bookings were negatively impacted by uncertainty in the market, which the Company believes is related to the ongoing 737 MAX grounding. In addition, the Company cancelled orders of approximately $7 million related to the restructuring and refocusing of its antenna business. Unaudited preliminary revenue for the full year totaled approximately $773 million.\n\n\nGiven the uncertain 2020 production schedule for the 737 MAX and timing of its return to service, along with the related impact on aftermarket spending by commercial airlines, the Company is rescinding its initial 2020 revenue guidance issued in November 2019. Astronics expects to issue revised revenue guidance as the outlook becomes clearer.\n\n\nPeter Gundermann, Astronics Chairman and CEO, said, “The ongoing 737 MAX grounding affects our business both because of the production pause and because it leaves many of our airline customers short of capacity. This makes them reluctant to take planes out of service to install the types of products they buy from us. The situation is likely to persist until the 737 MAX returns to service. We will publish revenue expectations when we ha...