Business
AstroNova Reports Fiscal 2025 Fourth-Quarter and Full-Year Financial Results; Advancing Restructuring, Operational Realignment and Product Simplification Plans to Drive Improved Earnings Power
Fourth quarter revenue of $37.4 million in line with preliminary expectations; fiscal 2025 revenue of $151.3 million comprised of 71% recurring revenue
About this update from Astronova, Inc.
Fourth quarter revenue of $37.4 million in line with preliminary expectations; fiscal 2025 revenue of $151.3 million comprised of 71% recurring revenue Restructuring plan expected to deliver $3 million in annualized savings with 40% to be realized in fiscal 2026 Simplifying product portfolio; focused on higher growth higher margin products Aerospace Test & Measurement segment ToughWriter printer transition 40% complete; drives operational efficiency and reduced working capital requirements while eliminating legacy royalties WEST WARWICK, R.I. --(BUSINESS WIRE)-- AstroNova, Inc. (Nasdaq: ALOT), a global leader in data visualization technologies, today announced financial results for its fiscal 2025 fourth quarter and full-year ended January 31, 2025 . Results include the May 6, 2024 acquisition of MTEX NS. Greg Woods , President and Chief Executive Officer of AstroNova , stated, “Fiscal 2025 was a challenging year as we addressed the difficult integration of MTEX, absorbed the impact of the Boeing strike and addressed the timing associated with large defense industry orders. Nonetheless, we aggressively implemented the AstroNova Operating System at MTEX, improved the leadership team, upgraded talent within the organization, and significantly improved the accounting and finance system and human resources processes. We are instilling accountability and discipline into the organization, streamlining the structure and eliminating waste. We have also identified how to best leverage MTEX’s operations in Portugal to create an AstroNova Center of Manufacturing Excellence in Europe . In fact, we are taking action throughout AstroNova to create a business that can deliver stronger earnings power.” “Importantly, we are leveraging the innovative foundation of MTEX technologies to create more competitive solutions that address an expanded range of applications and provide our customers with higher quality and reliability. This will also enable us to gain greater control over our supply chain in order to reduce costs and expand margins. We plan to launch new products incorporating our next-generation technology in the first quarter of fiscal 2026 and will be rolling out more products throughout the year.” Fiscal 2026 Outlook Reaffirmed For fiscal 2026, AstroNova continues to expect net revenue in the range of $160 million to $165 million which is a 7% increase over fiscal 2025 at the mid-point of the range. Adjusted EBITDA margin is expected to be in the range of 8.5% to 9.5%, a 60-basis point expansion over the prior year at the mid-point. Mr. Woods added, “We are focused on innovative solutions to gain market share and expand our market reach. Our strategic priorities in fiscal 2026 are to drive our print engine technology initiatives, capture greater ownership of the supply chain for our consumables, and drive the conversion to our ToughWriter family of printers with our Aerospace customers. In addition to offering a better solution for our customers, this conversion and other product simplification initiatives will reduce inventory, improve working capital and drive profitability.” Fourth Quarter Fiscal 2025 Overview Net revenue for the fourth quarter of fiscal 2025 was $37.4 million compared with net revenue of $39.6 million for the fourth quarter of fiscal 2024, a decrease of 5.6% or $2.2 million , reflecting lower sales in both Product Identification (PI) and Test & Measurement (T&M) segments. PI revenue was $25.7 million for the fourth quarter of fiscal 2025 compared with $26.6 million for the fourth quarter of fiscal 2024, a decrease of 3.6% or $0.9 million . The decrease was primarily attributable to less favorable product mix in the 2025 period, partially offset by the addition of MTEX, which the Company acquired in May 2024 . On a GAAP (Generally Accepted Accounting Principles) basis, PI segment operating loss was $11.2 million for the fourth quarter of fiscal 2025, which includes the previously announced non-cash goodwill impairment of $13.4 million largely associated with the Company’s MTEX business and $0.1 million in inventory step-up expenses. This compares with PI segment GAAP operating profit of $3.2 million , or 12.2% of segment revenue, for the fourth quarter of fiscal 2024, which includes $0.3 million in product retrofit costs and restructuring charges. On a non-GAAP basis, excluding the discrete expenses in both periods, PI segment operating profit was $2.3 million , or 8.9% of segment revenue in the fourth quarter of fiscal 2025, compared with segment operating profit of $3.0 million , or 11.1% of segment revenue, for the fourth quarter of fiscal 2024. T&M segment revenue was $11.7 million for the fourth quarter of fiscal 2025 compared with $13.0 million for the fourth quarter of fiscal 2024, a decrease of 9.9% or $1.3 million . The decrease was due primarily to a delayed defense order and, to a lesser extent, deferred deliveries associated with the Boeing strike. T&M segment operating profit was $2.3 million , or 20.0% of segment revenue, for the fourth quarter of fiscal 2025 compared with segment operating profit of $3.7 million , or 28.2% of segment revenue, for the fourth quarter of fiscal 2024. GAAP gross profit was $12.7 million for the fourth quarter of fiscal 2025, resulting in a gross margin of 34.1%, compared with gross profit of $14.7 million and a gross profit of 37.2% for the same period in fiscal 2024, primarily reflecting lower revenue and less favorable product mix in the 2025 period. GAAP operating loss for the fourth quarter of fiscal 2025 was $12.3 million , compared with GAAP operating income of $3.9 million for the fourth quarter of fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported operating income of $1.4 million , compared with $3.6 million in the fourth quarter of fiscal 2024. Net loss on a GAAP basis was $15.6 million , or $2.07 per share, for the fourth quarter of fiscal 2025 compared with net income of $2.7 million , or $0.36 per diluted share, for the fourth quarter of fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported net income of $0.4 million , or $0.06 per diluted share, for the fourth quarter of fiscal 2025 compared with net income of $2.5 million , or $0.33 per diluted share, in the fourth quarter of fiscal 2024. Adjusted EBITDA was $2.8 million for the fourth quarter of fiscal 2025 compared with Adjusted EBITDA $5.2 million for the fourth quarter of fiscal 2024. The Company’s order backlog was $28.3 million as of January 31, 2025 compared with $31.4 million at the end of fiscal 2024. Full-Year Fiscal 2025 Overview Net revenue for fiscal 2025 was $151.3 million compared with net revenue of $148.1 million for fiscal 2024, an increase of 2.2% or $3.2 million , reflecting higher sales in the T&M segment, partially offset by lower sales in the PI segment. PI revenue was $102.3 million for fiscal 2025 compared with $104.0 million for fiscal 2024, a decrease of 1.6% or $1.7 million . The decrease was primarily attributable to less favorable product mix in the 2025 period, partially offset by the addition of MTEX, which the Company acquired in May 2024 . On a GAAP (Generally Accepted Accounting Principles) basis, PI segment operating loss was $4.0 million for fiscal 2025, which includes the previously announced non-cash goodwill impairment of $13.4 million largely associated with the Company’s MTEX business and $0.2 million in inventory step-up expenses. This compares with PI segment GAAP operating profit of $10.1 million , or 9.7% of segment revenue, for fiscal 2024, which includes $3.2 million in product retrofit costs and restructuring charges. On a non-GAAP basis, excluding the discrete expenses in both periods, PI segment operating profit was $9.7 million , or 9.4% of segment revenue, for fiscal 2025, compared with segment operating profit of $13.2 million , or 12.7% of segment revenue, for fiscal 2024. T&M segment revenue was $48.9 million for fiscal 2025 compared with $44.0 million fiscal 2024, an increase of 11.1% or $4.9 million . The increase primarily reflected higher revenue from supplies and service/other in the 2025 period, partly offset by lower hardware sales. T&M segment operating profit was $11.1 million , or 22.8% of segment revenue, fiscal 2025 compared with segment operating profit of $10.2 million , or 23.2% of segment revenue, for fiscal 2024. GAAP gross profit was $52.7 million for fiscal 2025, resulting in a gross margin of 34.9%, compared with gross profit of $51.6 million and a gross profit of 34.9% for fiscal 2024. GAAP operating loss for fiscal 2025 was $8.6 million , compared with GAAP operating income of $8.8 million for fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported operating income of $6.6 million for fiscal 2025, compared with $12.0 million for fiscal 2024, primarily related to higher operating expenses in the 2025 period. Net loss on a GAAP basis was $14.5 million , or $1.93 per share, for fiscal 2025 compared with net income of $4.7 million , or $0.63 per diluted share, for fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported net income of $2.7 million , or $0.33 per diluted share, in fiscal 2025 compared with net income of $7.2 million , or $0.97 per diluted share, in fiscal 2024. Adjusted EBITDA was $12.3 million for fiscal 2025 compared with Adjusted EBITDA $17.6 million for fiscal 2024. Amendment and Waiver of Credit Agreement As previously disclosed, AstroNova obtained an amendment and waiver with regard to its credit agreement with Bank of America. Among other changes to the credit agreement, the amendment waives certain covered covenants as of the end of its fiscal quarter ended January 31, 2025 , provides for relaxed financial covenant ratios during fiscal 2026, and provides for reduced payments of one of its term loans during fiscal 2026 as the Company implements its restructuring efforts, after which the payments of such term loan increase. The amended credit agreement provides for up to $2 million in add-backs to the Company’s Consolidated EBITDA (as defined in the credit agreement) for Company cash restructuring charges in fiscal 2026. Earnings Conference Call Information AstroNova will discuss its fiscal fourth-quarter and full-year fiscal 2025 financial results and business outlook in an investor conference call at 9:00 a.m. ET today. To access the conference call, please dial (833) 470-1428 ( U.S. and Canada ) or (404) 975-4839 (International) approximately 10 minutes prior to the start time and enter access code 957215. A real-time and an 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 gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, non-GAAP segment operating profit, and Adjusted EBITDA. 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 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. Please refer to the financial reconciliation table included in this news release for a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures for the three and 12 months ended January 31, 2025 and 2024. AstroNova has not reconciled the forward-looking Adjusted EBITDA growth percentage included in its fiscal 2026 financial targets and outlook to the most directly comparable forward-looking GAAP measure because this cannot be done without unreasonable effort due to the lack of predictability regarding cost of sales, operating expenses, depreciation and amortization, and stock-based compensation. The impact of any of these items, individually or in the aggregate, may be significant. 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 our organizational improvements at MTEX may not result in the benefits that we expect; (ii) the risk that our cost-reduction and product line rationalization initiative may not provide the expected benefits; (iii) the risk that our Aerospace customers may not convert to our ToughWriter line in the volumes or on the schedule that we expect; (iv) the risk that we may not realize the anticipated benefits of our next-generation print engine technology; and (v) those factors set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2024 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. ASTRONOVA, INC. Condensed Consolidated Statements of Income In Thousands Except for Per Share Data (Unaudited) Three Months Ended January 31 ,2025 January 31 ,2024 Net Revenue $ 37,361 $ 39,594 Cost of Revenue 24,624 24,848 Gross Profit 12,737 14,746 Total Gross Profit Margin 34.1 % 37.2 % Operating Expenses: Selling & Marketing 6,421 5,977 Research & Development 1,751 1,878 General & Administrative 3,473 2,976 Goodwill Impairment 13,403 — Total Operating Expenses 25,048 10,831 Operating Income (Loss) (12,311 ) 3,915 Total Operating Margin (33.0 )% 9.9 % Interest Expense 847 779 Other (Income)/Expense, net 100 (216 ) Income (Loss) Before Taxes (13,258 ) 3,352 Income Tax Provision 2,342 641 Net Income (Loss) $ (15,600 ) $ 2,711 Net Income (Loss) per Common Share - Basic $ (2.07 ) $ 0.36 Net Income (Loss) per Common Share - Diluted $ (2.07 ) $ 0.36 Weighted Average Number of Common Shares - Basic 7,534 7,438 Weighted Average Number of Common Shares - Diluted 7,534 7,550 Twelve Months Ended January 31 ,2025 January 31 ,2024 Net Revenue $ 151,283 $ 148,086 Cost of Revenue 98,534 96,465 Gross Profit 52,749 51,621 Total Gross Profit Margin 34.9 % 34.9 % Operating Expenses: Selling & Marketing 25,560 24,428 Research & Development 6,610 6,906 General & Administrative 15,816 11,491 Goodwill Impairment 13,403 — Total Operating Expenses 61,389 42,825 Operating Income (Loss) (8,640 ) 8,796 Total Operating Margin (5.7 )% 5.9 % Interest Expense 3,210 2,697 Other (Income)/Expense, net 437 26 Income (Loss) Before Taxes (12,287 ) 6,073 Income Tax Provision 2,202 1,379 Net Income (Loss) $ (14,489 ) $ 4,694 Net Income (Loss) per Common Share - Basic $ (1.93 ) $ 0.63 Net Income (Loss) per Common Share - Diluted $ (1.93 ) $ 0.63 Weighted Average Number of Common Shares - Basic 7,509 7,415 Weighted Average Number of Common Shares - Diluted 7,509 7,496 ASTRONOVA, INC. Consolidated Balance Sheets In Thousands (Unaudited) January 31 ,2025 January 31 ,2024 ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 5,050 $ 4,527 Accounts Receivable, net 21,218 23,056 Inventories, net 47,894 46,371 Prepaid Expenses and Other Current Assets 3,855 2,720 Total Current Assets 78,017 76,674 PROPERTY, PLANT AND EQUIPMENT 62,361 57,046 Less Accumulated Depreciation (44,722 ) (42,861 ) Property, Plant and Equipment, net 17,639 14,185 OTHER ASSETS Intangible Assets, net 23,519 18,836 Goodwill 14,515 14,633 Deferred Tax Assets 8,431 6,882 Right of Use Asset 1,781 603 Other Assets 1,694 1,438 TOTAL ASSETS $ 145,595 $ 133,251 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts Payable $ 7,928 $ 8,068 Accrued Compensation 3,745 2,923 Other Liabilities and Accrued Expenses 4,461 2,706 Revolving Line of Credit 20,929 8,900 Current Portion of Long-Term Debt 6,110 2,842 Short-Term Debt 581 - Current Portion of Royalty Obligation 1,358 1,700 Current Liability – Excess Royalty Payment Due 691 935 Income Taxes Payable (0 ) 349 Deferred Revenue 543 1,338 Total Current Liabilities 46,346 29,761 NON-CURRENT LIABILITIES Long-Term Debt, net of current portion 19,044 10,050 Royalty Obligation, net of current portion 1,106 2,093 Lease Liability, net of current portion 1,535 415 Grant Deferred Revenue 1,090 - Income Tax Payables 684 551 Deferred Tax Liabilities 40 99 TOTAL LIABILITIES 69,845 42,969 SHAREHOLDERS’ EQUITY Common Stock 547 541 Additional Paid-in Capital 64,215 62,684 Retained Earnings 49,380 63,869 Treasury Stock (35,043 ) (34,593 ) Accumulated Other Comprehensive Loss, net of tax (3,349 ) (2,219 ) TOTAL SHAREHOLDERS’ EQUITY 75,750 90,282 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 145,595 $ 133,251 ASTRONOVA, INC. Condensed Consolidated Statements of Cash Flows (In Thousands) (Unaudited) Twelve Months Ended January 31, 2025 January 31, 2024 Cash Flows from Operating Activities: Net Income (Loss) (14,489) 4,694 Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: Depreciation and Amortization 4,780 4,266 Grant Income charged to Depreciation 159 — Goodwill Impairment 13,403 — Amortization of Debt Issuance Costs 30 23 Restructuring Cost — 2,040 Share-Based Compensation 1,378 1,347 Deferred Income Tax provision (Benefit) 9 (78) Changes in Assets and Liabilities, net of impact of acquisition: Accounts Receivable 2,859 (1,486) Inventories 1,616 2,910 Accounts Payable and Accrued Expenses (2,379) (46) Deferred Revenue (1,520) - Income Taxes (904) (343) Other (94) (973) Net Cash Provided by Operating Activities 4,848 12,354 Cash Flows from Investing Activities: Purchases of Property, Plant and Equipment (1,165) (875) Cash Paid for MTEX Acquisition, net of cash acquired (19,109) - Net Cash Provided (Used) for Investing Activities (20,274) (875) Cash Flows from Financing Activities: Net Cash Proceeds from Employee Stock Option Plans 13 105 Net Cash Proceeds from Share Purchases under Employee Stock Purchase Plan 146 107 Net Cash Used for Payment of Taxes Related to Vested Restricted Stock (450) (358) Net Borrowings under Revolving Credit Facility 11,508 (7,000) Proceeds from Long-Term Debt Borrowings 15,078 - Payment of Minimum Guarantee Royalty Obligation (1,902) (1,725) Principal Payments of Long-Term Debt (8,980) (2,100) Payments of Debt Issuance Costs (35) - Net Cash Provided (Used) for Financing Activities 15,378 (10,971) Effect of Exchange Rate Changes on Cash and Cash Equivalents 571 73 Net Increase in Cash and Cash Equivalents 523 581 Cash and Cash Equivalents, Beginning of Period 4,527 3,946 Cash and Cash Equivalents, End of Period 5,050 4,527 Supplemental Disclosures of Cash Flow Information: Cash Paid During the Period for: Cash Paid During the Period for Interest 2,701 2,343 Cash Paid During the Period for Income Taxes, net of refunds 2,210 1,694 Non-Cash Transactions: Financed Equipment Purchase — 822 Capital Lease Obtained in Exchange for Capital Lease Liabilities 1,581 — ASTRONOVA, INC. Revenue and Segment Operating Profit In Thousands (Unaudited) Revenue Segment Operating Profit Three Months Ended Three Months Ended January 31 ,2025 January 31 ,2024 January 31 ,2025 January 31 ,2024 Product Identification $ 25,679 $ 26,626 $ (11,174 ) $ 3,239 Test & Measurement 11,683 12,968 2,337 3,652 Total $ 37,361 $ 39,594 (8,837 ) 6,891 General & Administrative Expenses 3,473 2,976 Operating Income (Loss) (12,311 ) 3,915 Interest Expense 847 779 Other (Income)/Expense, net 100 (216 ) Income (Loss) Before Income Taxes (13,258 ) 3,352 Income Tax Provision 2,342 641 Net Income (Loss) $ (15,600 ) $ 2,711 Revenue Segment Operating Profit Twelve Months Ended Twelve Months Ended January 31 ,2025 January 31 ,2024 January 31 ,2025 January 31 ,2024 Product Identification $ 102,345 $ 104,041 $ (3,967 ) $ 10,087 Test & Measurement 48,938 44,045 11,143 10,200 Total $ 151,283 $ 148,086 7,176 20,287 General & Administrative Expenses 15,816 11,491 Operating Income (Loss) (8,640 ) 8,796 Interest Expense 3,210 2,697 Other (Income)/Expense, net 437 26 Income (Loss) Before Income Taxes (12,287 ) 6,073 Income Tax Provision 2,202 1,379 Net Income (Loss) $ (14,489 ) $ 4,694 Note: Segment Operating Profit excludes General & Administrative Expenses ASTRONOVA, INC. Reconciliation of GAAP to Non-GAAP Items In Thousands Except for Per Share Data (Unaudited) Three Months Ended January 31 ,2025 January 31 ,2024 Gross Profit $ 12,737 $ 14,746 Inventory Step-Up 62 - Restructuring Charges, net - (32 ) Product Retrofit Costs, net - (210 ) Non-GAAP Gross Profit $ 12,799 $ 14,504 Operating Expenses $ 25,048 $ 10,831 MTEX-related Acquisition Expenses (254 ) 0 Restructuring Charges, net - 43 Goodwill Impairment (13,403 ) - Non-GAAP Operating Expenses $ 11,392 $ 10,874 Operating Income (Loss) $ (12,311 ) $ 3,915 MTEX-related Acquisition Expenses 254 (0 ) Inventory Step-Up 62 - Restructuring Charges, net - (75 ) Product Retrofit Costs, net - (210 ) Goodwill Impairment 13,403 - Non-GAAP Operating Income $ 1,408 $ 3,630 Net Income (Loss) $ (15,600 ) $ 2,711 MTEX-related Acquisition Expenses, net 197 (0 ) CFO Transition Costs, net (4 ) Inventory Step-Up, net 50 - Restructuring Charges, net - (58 ) Product Retrofit Costs, net - (162 ) Goodwill Impairment 13,403 - Tax Provision Valuation Allowance 2,373 Non-GAAP Net Income $ 419 $ 2,491 Diluted Earnings Per Share $ (2.07 ) $ 0.36 MTEX-related Acquisition Expenses 0.03 (0.00 ) CFO Transition Costs, net (0.00 ) - Inventory Step-Up 0.01 - Restructuring Charges, net - (0.01 ) Product Retrofit Costs, net - (0.02 ) Goodwill Impairment 1.78 - Tax Provision Valuation Allowance 0.31 - Non-GAAP Diluted Earnings Per Share $ 0.06 $ 0.33 Twelve Months Ended January 31 ,2025 January 31 ,2024 Gross Profit $ 52,749 $ 51,621 Inventory Step-Up 216 - Restructuring Charges - 2,064 Product Retrofit Costs - 642 Non-GAAP Gross Profit $ 52,966 $ 54,327 Operating Expenses $ 61,389 $ 42,825 MTEX-related Acquisition Expenses (1,204 ) 0 CFO Transition Costs (432 ) Restructuring Charges - (512 ) Goodwill Impairment (13,403 ) - Non-GAAP Operating Expenses $ 46,350 $ 42,313 Operating Income (Loss) $ (8,640 ) $ 8,796 MTEX-related Acquisition Expenses 1,204 (0 ) CFO Transition Costs 432 Inventory Step-Up 216 - Restructuring Charges - 2,576 Product Retrofit Costs - 642 Goodwill Impairment 13,403 - Non-GAAP Operating Income $ 6,615 $ 12,014 Net Income (Loss) $ (14,489 ) $ 4,694 MTEX-related Acquisition Expenses, net 910 (0 ) CFO Transition Costs, net 328 - Inventory Step-Up, net 161 - Restructuring Charges, net - 1,990 Product Retrofit Costs, net - 496 Goodwill Impairment 13,403 - Tax Provision 2,373 Non-GAAP Net Income $ 2,686 $ 7,180 Diluted Earnings Per Share $ (1.93 ) $ 0.63 MTEX-related Acquisition Expenses 0.12 (0.00 ) CFO Transition Costs 0.04 - Inventory Step-Up 0.02 - Restructuring Charges - 0.27 Product Retrofit Costs - 0.07 Goodwill Impairment 1.76 - Tax Provision Valuation Allowance 0.31 - Non-GAAP Diluted Earnings Per Share $ 0.33 $ 0.97 ASTRONOVA, INC. Reconciliation of Net Income to Adjusted EBITDA Amounts In Thousands (Unaudited) Three Months Ended January 31, 2025 January 31, 2024 Net Income (Loss) $ (15,600 ) $ 2,711 Interest Expense 847 779 Income Tax Expense 2,342 641 Depreciation & Amortization 1,266 1,108 EBITDA $ (11,146 ) $ 5,239 Share-Based Compensation 219 282 MTEX-related Acquisition Expenses 259 - CFO Transition Costs (5 ) - Inventory Step-Up 62 - Goodwill Impairment 13,403 - Restructuring Charges - (75 ) Product Retrofit Costs - (210 ) Adjusted EBITDA $ 2,793 $ 5,236 Twelve Months Ended January 31, 2025 January 31, 2024 Net Income (Loss) $ (14,489 ) $ 4,694 Interest Expense 3,210 2,697 Income Tax Expense (Benefit) 2,202 1,379 Depreciation & Amortization 4,780 4,266 EBITDA $ (4,297 ) $ 13,036 Share-Based Compensation 1,378 1,347 MTEX-related Acquisition Expenses 1,204 - CFO Transition Costs 432 - Inventory Step-Up 216 - Goodwill Impairment 13,403 - Restructuring Charges - 2,576 Product Retrofit Costs - 642 Adjusted EBITDA $ 12,336 $ 17,601 ASTRONOVA, INC. Reconciliation of Segment Operating Income to Non-GAAP Segment Operating Income Amounts In Thousands (Unaudited) Three Months Ended January 31, 2025 January 31, 2024 ProductIdentification Test &Measurement Total ProductIdentification Test &Measurement Total Segment Operating Profit (Loss) $ (11,174 ) $ 2,337 $ (8,837 ) $ 3,239 $ 3,652 $ 6,891 Inventory Step-Up 62 - 62 - - - Restructuring Charges - - - (75 ) - (75 ) Product Retrofit Costs - - - (210 ) - (210 ) Goodwill Impairment 13,403 - 13,403 - - - Non-GAAP - Segment Operating Profit $ 2,291 $ 2,337 $ 4,628 $ 2,954 $ 3,652 $ 6,606 Twelve Months Ended January 31, 2025 January 31, 2024 ProductIdentification Test &Measurement Total ProductIdentification Test &Measurement Total Segment Operating Profit (Loss) $ (3,967 ) $ 11,143 $ 7,176 $ 10,087 $ 10,200 $ 20,287 Inventory Step-Up 216 - 216 - - - Restructuring Charges - - - 2,494 - 2,494 Product Retrofit Costs - - - 642 - 642 Goodwill Impairment 13,403 - 13,403 - - - Non-GAAP - Segment Operating Profit $ 9,652 $ 11,143 $ 20,795 $ 13,223 $ 10,200 $ 23,423 Note: Segment Operating Profit excludes General & Administrative Expenses ASTRONOVA, INC. Reconciliation of GAAP to Non-GAAP Items for PI Segment Amounts In Thousands (Unaudited) Three Months Ended January 31, 2025 Three Months Ended January 31, 2024 Total PISegment asReported MTEX asReported InventoryStep-Up Goodwill Impairment Adj MTEX (Non-GAAP) PI Excluding MTEX(Non-GAAP) Total PISegment asReported RestructuringCharges ProductRetrofitCosts PI (Non-GAAP) Net Revenue $ 25,679 $ 1,657 $ 1,657 $ 24,022 $ 26,626 $ 26,626 Cost of Revenue 17,108 1,313 (62 ) 1,251 15,857 17,215 75 210 17,500 Gross Profit 8,571 344 62 - 406 8,165 9,411 (75 ) (210 ) 9,126 Selling & Marketing 5,439 653 653 4,785 5,121 5,121 Research & Development 904 198 198 706 1,051 1,051 Goodwill Impairment 13,403 13,403 (13,403 ) - - - - Operating Expenses 19,746 14,254 - (13,403 ) 851 5,491 6,172 - - 6,172 Segment Operating Profit (Loss) $ (11,175 ) $ (13,910 ) $ 62 $ 13,403 $ (445 ) $ 2,674 $ 3,239 $ (75 ) $ (210 ) $ 2,954 Twelve Months Ended January 31, 2025 Twelve Months Ended January 31, 2024 Total PISegment asReported MTEX asReported InventoryStep-Up Goodwill Impairment Adj MTEX (Non-GAAP) PI Excluding MTEX(Non-GAAP) Total PISegment asReported RestructuringCharges ProductRetrofitCosts PI (Non-GAAP) Net Revenue $ 102,345 $ 4,163 $ 4,163 $ 98,182 $ 104,041 $ 104,041 Cost of Revenue 68,420 3,652 (216 ) 3,436 64,984 69,064 (2,494 ) (642 ) 65,928 Gross Profit 33,925 511 216 - 727 33,198 34,977 2,494 642 38,113 Selling & Marketing 21,386 2,485 2,485 18,901 20,601 - 20,601 Research & Development 3,104 309 309 2,795 4,289 - 4,289 Goodwill Impairment 13,403 13,403 (13,403 ) - - 0 - 0 Operating Expenses 37,892 16,197 - (13,403 ) 2,794 21,696 24,890 - - 24,890 Segment Operating Profit (Loss) $ (3,967 ) $ (15,686 ) $ 216 $ 13,403 $ (2,067 ) $ 11,502 $ 10,087 $ 2,494 $ 642 $ 13,223 Note: Segment Operating Profit excludes General & Administrative Expenses. MTEX General & Administrative Expenses of $411,000 for the three months ended January 31, 2025 and $1,194,000 for the twelve months ended January 31, 2025 results in an MTEX Operating Profit (net of $13,403,000 Goodwill Impairment) of $995,000 for the three months ended January 31, 2025 and $3,478,000 for the twelve months ended January 31, 2025 . View source version on businesswire.com : https://www.businesswire.com/news/home/20250413216286/en/ Tom DeByle Vice President, Chief Financial Officer & Treasurer AstroNova, Inc. (401) 828-4000 Scott Solomon Senior Vice President Sharon Merrill Advisors (857) 383-2409 [email protected] Source: AstroNova