UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 28, 2019

ASTRONOVA, INC.
(Exact name of registrant as specified in its charter)

 
					
Rhode Island	 	0-13200	 	05-0318215	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(I.R.S. Employer
Identification No.)	
600 East Greenwich Avenue
West Warwick, RI 02893
(Address of principal executive offices) (Zip Code)
(401)-828-4000
Registrant’s telephone number, including area code
Not applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
 	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
 	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
 	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
 	☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	 	Trading
Symbol(s)	 	Name of Each Exchange
on which Registered	
Common Stock, $0.05 Par Value	 	ALOT	 	NASDAQ Global Market	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

ITEM 2.02	RESULTS OF OPERATIONS AND FINANCIAL CONDITION.	
On August 28, 2019, we issued a press release reporting the financial results for our fiscal first quarter ended August 3, 2019. A copy of the press release relating to that announcement, dated August 28, 2019, is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information contained in Item 2.02 of this report and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
 
ITEM 9.01	FINANCIAL STATEMENTS AND EXHIBITS.	
 
(d)	Exhibits	

	Exhibit
No.	  		Exhibit	
			
99.1	  	Press Release Dated August 28, 2019		
 
2

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	 		 	ASTRONOVA, INC.	
				
Dated: August 28, 2019	 		 	By:	 	/s/ David S. Smith	
	 		 		 	David S. Smith	
	 		 		 	Vice President, Treasurer and Chief Financial Officer	
 
3

Exhibit 99.1

	 	News Release	
Contact:
Scott Solomon
Senior Vice President
Sharon Merrill Associates
(617) 542-5300
ALOT@investorrelations.com
AstroNova Announces Financial Results for the
Second Quarter of Fiscal 2020
Board of Directors Declares Regular Quarterly Cash Dividend of $0.07 Per Share
Second-Quarter Fiscal 2020 Summary
 
 	•	 	Bookings of $29.1 million	
 
 	•	 	Revenue of $33.5 million	
 
 	•	 	Operating income of $1.2 million	
 
 	•	 	Earnings per diluted share of $0.13	
West Warwick, R.I. – August 28, 2019 – AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2020 second quarter ended August 3, 2019.
CEO Commentary
“While we continued to make good progress on our long-term strategic objectives, our second-quarter results reflect a confluence of what we anticipate are short-term headwinds affecting both segments,” said Greg Woods, AstroNova’s President and CEO. “In the Test & Measurement segment, the ripple effects of the 737 MAX grounding had a more pronounced impact on revenue and margin mix in the quarter than we had anticipated. This was in part due to new aircraft shipment reductions but also because several retrofit printer upgrade orders for existing aircraft were deferred so that those planes could be kept in service. Our Product Identification segment was affected by some customer-specific weakness in Asia, partly attributable to increased global economic uncertainty. These temporary challenges do not affect our positive long-term view or the strong underlying fundamentals of AstroNova’s business.

AstroNova Reports Q2 FY 2020 Financial Results/ 2
 
“We continue to invest in new products and technology to drive high-quality, sustainable growth,” Woods said. “During the quarter we introduced the QuickLabel® QL-120X, the first tabletop digital color label printer with an industry-best two-year warranty. In terms of quality, speed and cost efficiency, we believe that this new product substantially enhances our competitiveness in the on-demand digital color label printing market.    
Business Outlook
“We continue to have a positive long-term outlook for our business and maintain our expectation for modest revenue growth in fiscal 2020,” Woods said. “While the headwinds we experienced in Q2 are likely to temper our revenue and margin performance in the near-term, we are confident in our growth strategy and the positive secular trends supporting our business. This confidence is being supported by ongoing investments in new products, talent development and geographic expansion to drive high-quality, sustainable growth.”
Operating Segment Results
Product Identification segment revenue in the second quarter of fiscal 2020 was $22.1 million, a 1.7% increase compared with $21.8 million in the prior year, as higher sales of supplies and services offset a decline in hardware sales. Segment operating income was $2.2 million, or 10.0% of revenue, versus $2.2 million, or 9.9% of revenue, in the prior year.
Test & Measurement segment revenue in the second quarter of fiscal 2020 decreased 5.9% to $11.3 million from $12.0 million in the same period of fiscal 2019. Segment operating income was $1.6 million, or 13.7% of revenue, for the second quarter of fiscal 2020 compared with $2.8 million, or 23.4% of revenue, in the comparable period of fiscal 2019.
Hardware revenue was $12.4 million, down 3.7% from $12.9 million in the prior-year period. Supplies revenue was $18.1 million, up 1.1% from $17.9 million in the same period of fiscal 2019. Service/other revenue was $3.0 million, consistent with the same period a year earlier.
Second-Quarter Financial Summary
Revenue totaled $33.5 million, a decrease of 1% from $33.8 million in the second quarter of fiscal 2019, reflecting lower sales in the Test & Measurement segment, partly offset by higher sales in the Product Identification segment.
Gross profit was $12.0 million, or 35.8% of revenue, compared with $13.4 million, or 39.6% of revenue, for Q2 fiscal 2019. The decrease in gross profit dollars and margin was attributable primarily to lower revenue and less favorable sales mix.    
Operating expenses were $10.8 million compared with $11.2 million in the same period of fiscal 2019.

 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	 	NASDAQ: ALOT
www.astronovainc.com	 	Page | 2	

AstroNova Reports Q2 FY 2020 Financial Results/ 3
 
Operating income was $1.2 million, or 3.5% of revenue, compared with $2.2 million, or 6.4% of revenue, in the second quarter of fiscal 2019.
Net income was $1.0 million, or $0.13 per diluted share, versus net income of $1.2 million, or $0.17 per diluted share, in the second quarter of fiscal 2019.
Bookings were $29.1 million compared with $35.8 million in the second quarter of 2019.
Backlog at August 2, 2019 was $22.3 million, compared with $24.5 million at the end of the fiscal 2019 second quarter.
Board Declares Quarterly Dividend
On August 26, 2019, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.07 per share. The dividend, which represents a cash dividend of $0.28 per share on an annualized basis, is payable on September 24, 2019, to shareholders of record on September 16, 2019.
Second-Quarter Fiscal 2020 Conference Call
AstroNova will conduct an investor conference call at 9:00 a.m. ET today. To participate on the conference call, please dial (888) 599-8686 (U.S. and Canada) or +1 (323) 994-2093 (International) approximately 10 minutes prior to the start time and enter confirmation code 1668596.
You can hear a replay of the conference call from 12:00 p.m. ET Wednesday, August 28 until 12:00 p.m. ET Wednesday, September 4 by dialing (888) 203-1112 (U.S. and Canada) or +1 (719) 457-0820 (International). The passcode is 1668596.
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.

 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	 	NASDAQ: ALOT
www.astronovainc.com	 	Page | 3	

AstroNova Reports Q2 FY 2020 Financial Results/ 4
 
About AstroNova
AstroNova, Inc. (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 offers a variety of hardware and software products and associated supplies that allow customers to mark, track and enhance the appearance of their products. The segment’s two business units are QuickLabel®, the industry leader in tabletop digital color label printing and TrojanLabel®, an innovative leader for professional label presses and specialty printers. The Test and Measurement segment includes the Test & Measurement business unit, which offers a suite of products and services that acquire, record and analyze electronic signal data from local and networked sensors. The segment also includes the AstroNova Aerospace business unit, which designs and manufactures avionics equipment and systems that serve the world’s aerospace and defense industries with proven advanced airborne technology solutions for both the cockpit and the cabin. The key products include flight deck printers, networking hardware and related accessories.
AstroNova is a member of the Russell 3000® Index, the Russell 2000® Index, 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 in fiscal 2020 and the effect of the grounding of the 737 MAX, 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, 2019 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.

 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	 	NASDAQ: ALOT
www.astronovainc.com	 	Page | 4	

ASTRONOVA, INC.
Condensed Consolidated Statements of Income
In Thousands Except for Per Share Data
(Unaudited)

 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	August 3, 2019	 	 	July 28, 2018	 	 	August 3, 2019	 	 	July 28, 2018	 	
Net Revenue	  	$	33,468	 	 	$	33,807	 	 	$	69,649	 	 	$	65,294	 	
					
Cost of Revenue	  	 	21,491	 	 	 	20,408	 	 	 	43,433	 	 	 	39,784	 	
Gross Profit	  	 	11,977	 	 	 	13,399	 	 	 	26,216	 	 	 	25,510	 	
	  	 	35.8	% 	 	 	39.6	% 	 	 	37.6	% 	 	 	39.1	% 	
					
Operating Expenses:	  				 				 				 				
Selling & Marketing	  	 	6,413	 	 	 	6,397	 	 	 	13,178	 	 	 	12,898	 	
Research & Development	  	 	1,785	 	 	 	2,029	 	 	 	3,792	 	 	 	3,721	 	
General & Administrative	  	 	2,616	 	 	 	2,808	 	 	 	5,615	 	 	 	5,462	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	10,814	 	 	 	11,234	 	 	 	22,585	 	 	 	22,081	 	
					
Operating Income	  	 	1,163	 	 	 	2,165	 	 	 	3,631	 	 	 	3,429	 	
	  	 	3.5	% 	 	 	6.4	% 	 	 	5.2	% 	 	 	5.3	% 	
					
Other Income, Net	  	 	(183	) 	 	 	(512	) 	 	 	(550	) 	 	 	(782	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Before Taxes	  	 	980	 	 	 	1,653	 	 	 	3,081	 	 	 	2,647	 	
Income Tax Provision	  	 	29	 	 	 	459	 	 	 	429	 	 	 	639	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	  	$	951	 	 	$	1,194	 	 	$	2,652	 	 	$	2,008	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income per Common Share - Basic	  	$	0.14	 	 	$	0.17	 	 	$	0.38	 	 	$	0.29	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income per Common Share - Diluted	  	$	0.13	 	 	$	0.17	 	 	$	0.36	 	 	$	0.29	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted Average Number of Common Shares - Basic	  	 	7,021	 	 	 	6,860	 	 	 	6,996	 	 	 	6,825	 	
Weighted Average Number of Common Shares - Diluted	  	 	7,371	 	 	 	7,083	 	 	 	7,310	 	 	 	6,999	 	

ASTRONOVA, INC.
Balance Sheet
In Thousands
(Unaudited)

 	  	August 3, 2019	 	 	January 31, 2019	 	
ASSETS	  				 				
CURRENT ASSETS	  				 				
Cash and Cash Equivalents	  	$	4,523	 	 	$	7,534	 	
Accounts Receivable, net	  	 	20,605	 	 	 	23,486	 	
Inventories, net	  	 	36,854	 	 	 	30,161	 	
Prepaid Expenses and Other Current Assets	  	 	3,059	 	 	 	1,427	 	
	  	 	 	 	 	 	 	 	
Total Current Assets	  	 	65,041	 	 	 	62,608	 	
OTHER ASSETS	  				 				
Property, Plant and Equipment, net	  	 	10,910	 	 	 	10,380	 	
Intangible Assets, net	  	 	27,493	 	 	 	29,674	 	
Goodwill	  	 	12,075	 	 	 	12,329	 	
Deferred Tax Assets	  	 	3,480	 	 	 	2,928	 	
Right of Use Asset	  	 	1,760	 	 	 	—  	 	
Other Assets	  	 	921	 	 	 	1,064	 	
	  	 	 	 	 	 	 	 	
TOTAL ASSETS	  	$	121,680	 	 	$	118,983	 	
	  	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	  				 				
CURRENT LIABILITIES	  				 				
Accounts Payable	  	 	9,403	 	 	$	5,956	 	
Accrued Compensation	  	 	2,700	 	 	 	5,023	 	
Other Liabilities and Accrued Expenses	  	 	3,285	 	 	 	2,911	 	
Current Portion of Long-Term Debt	  	 	5,024	 	 	 	5,208	 	
Revolving Credit Facility	  	 	3,500	 	 	 	1,500	 	
Current Portion of Royalty Obligation	  	 	2,000	 	 	 	1,875	 	
Current Liability – Excess Royalty Payment Due	  	 	647	 	 	 	1,265	 	
Deferred Revenue	  	 	321	 	 	 	373	 	
Income Taxes Payable	  	 	—  	 	 	 	554	 	
	  	 	 	 	 	 	 	 	
Total Current Liabilities	  	 	26,880	 	 	 	24,665	 	
NON CURRENT LIABILITIES	  				 				
Long-Term Debt, net of current portion	  	 	10,295	 	 	 	12,870	 	
Royalty Obligation, net of current portion	  	 	8,964	 	 	 	9,916	 	
Lease Liability, net of current portion	  	 	1,364	 	 	 	—  	 	
Deferred Tax Liabilities	  	 	504	 	 	 	40	 	
Other Long-Term Liabilities	  	 	1,585	 	 	 	1,717	 	
	  	 	 	 	 	 	 	 	
TOTAL LIABILITIES	  	 	49,592	 	 	 	49,208	 	
SHAREHOLDERS’ EQUITY	  				 				
Common Stock	  	 	516	 	 	 	511	 	
Additional Paid-in Capital	  	 	55,121	 	 	 	53,568	 	
Retained Earnings	  	 	51,180	 	 	 	49,511	 	
Treasury Stock	  	 	(33,454	) 	 	 	(32,997	) 	
Accumulated Other Comprehensive Loss, net of tax	  	 	(1,275	) 	 	 	(818	) 	
	  	 	 	 	 	 	 	 	
TOTAL SHAREHOLDERS’ EQUITY	  	 	72,088	 	 	 	69,775	 	
	  	 	 	 	 	 	 	 	
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	  	$	 121,680	 	 	$	 118,983	 	

ASTRONOVA, INC.
Revenue and Segment Operating Profit
In Thousands
(Unaudited)

 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	Revenue	 	  	Segment Operating Profit	 	 	Revenue	 	  	Segment Operating Profit	 	
 	  	August 3, 2019	 	  	July 28, 2018	 	  	August 3, 2019	 	 	July 28, 2018	 	 	August 3, 2019	 	  	July 28, 2018	 	  	August 3, 2019	 	 	July 28, 2018	 	
Product Identification	  	$	 22,144	 	  	$	21,769	 	  	$	2,224	 	 	$	2,159	 	 	$	45,735	 	  	$	41,722	 	  	$	5,110	 	 	$	3,820	 	
T&M	  	 	11,324	 	  	 	12,038	 	  	 	1,555	 	 	 	2,814	 	 	 	23,914	 	  	 	23,572	 	  	 	4,136	 	 	 	5,071	 	
	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	
Total	  	$	33,468	 	  	$	33,807	 	  	 	3,779	 	 	 	4,973	 	 	$	69,649	 	  	$	65,294	 	  	 	9,246	 	 	 	8,891	 	
	  	 	 	 	  	 	 	 	  				 				 	 	 	 	  	 	 	 	  				 				
Corporate Expenses	  				  				  	 	2,616	 	 	 	2,808	 	 				  				  	 	5,615	 	 	 	5,462	 	
	  				  				  	 	 	 	 	 	 	 	 				  				  	 	 	 	 	 	 	 	
Operating Income	  				  				  	 	1,163	 	 	 	2,165	 	 				  				  	 	3,631	 	 	 	3,429	 	
Other Expense-Net	  				  				  	 	(183	) 	 	 	(512	) 	 				  				  	 	(550	) 	 	 	(782	) 	
	  				  				  	 	 	 	 	 	 	 	 				  				  	 	 	 	 	 	 	 	
Income Before Income Taxes	  				  				  	 	980	 	 	 	1,653	 	 				  				  	 	3,081	 	 	 	2,647	 	
Income Tax Provision	  				  				  	 	29	 	 	 	459	 	 				  				  	 	429	 	 	 	639	 	
	  				  				  	 	 	 	 	 	 	 	 				  				  	 	 	 	 	 	 	 	
Net Income	  				  				  	$	951	 	 	$	1,194	 	 				  				  	$	2,652	 	 	$	2,008