ASTRONOVA, INC., 10-Q filed on 9/17/2024
Quarterly Report
v3.24.3
Cover Page - shares
 6 Months Ended
Aug. 03, 2024
Sep. 06, 2024
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Aug. 03, 2024  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
Entity Registrant Name AstroNova, Inc.  
Entity Central Index Key 0000008146  
Current Fiscal Year End Date --01-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Trading Symbol ALOT  
Entity Shell Company false  
Entity Small Business true  
Entity Emerging Growth Company false  
Title of 12(b) Security Common Stock  
Security Exchange Name NASDAQ  
Entity Incorporation, State or Country Code RI  
Entity File Number 0-13200  
Document Quarterly Report true  
Document Transition Report false  
Entity Tax Identification Number 05-0318215  
Entity Address, Address Line One 600 East Greenwich Avenue  
Entity Address, City or Town West Warwick  
Entity Address, Postal Zip Code 02893  
Entity Address, State or Province RI  
City Area Code 401  
Local Phone Number 828-4000  
Entity Common Stock, Shares Outstanding   7,520,572
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Aug. 03, 2024
Jan. 31, 2024
CURRENT ASSETS    
Cash and Cash Equivalents $ 4,824 $ 4,527
Accounts Receivable, net 23,450 23,056
Inventories, net 50,569 46,371
Prepaid Expenses and Other Current Assets 4,218 2,720
Total Current Assets 83,061 76,674
Property, Plant and Equipment, net 18,750 14,185
Identifiable Intangibles, net 27,314 18,836
Goodwill 25,368 14,633
Deferred Tax Assets, net 10,854 6,882
Right of Use Asset 1,920 603
Other Assets 1,750 1,438
TOTAL ASSETS 169,017 133,251
CURRENT LIABILITIES    
Accounts Payable 10,456 8,068
Accrued Compensation 3,577 2,923
Other Accrued Expenses 4,369 2,706
Revolving Line of Credit 13,354 8,900
Current Portion of Long-Term Debt 6,513 2,842
Short-Term Debt 3,092  
Current Liability—Royalty Obligation 1,575 1,700
Current Liability—Excess Royalty Payment Due 798 935
Income Taxes Payable 0 349
Deferred Revenue 785 1,338
Total Current Liabilities 44,519 29,761
NON-CURRENT LIABILITIES    
Long-Term Debt, net of current portion 22,675 10,050
Royalty Obligation, net of current portion 1,663 2,093
Lease Liabilities, net of current portion 1,633 415
Grant deferred revenue 1,476 0
Contingent Liability Earn Out 1,629 0
Income Taxes Payable 551 551
Deferred Tax Liabilities 3,121 99
TOTAL LIABILITIES 77,267 42,969
SHAREHOLDERS' EQUITY    
Preferred Stock, $10 Par Value, Authorized 100,000 shares, None Issued
Common Stock, $0.05 Par Value, Authorized 13,000,000 shares; Issued 10,914,014 and 10,812,137 shares at August 3, 2024 and January 31, 2024, respectively 546 541
Additional Paid-in Capital 63,563 62,684
Retained Earnings 64,739 63,869
Treasury Stock, at Cost, 3,393,442 and 3,368,763 shares at August 3, 2024 and January 31, 2024, respectively (35,025) (34,593)
Accumulated Other Comprehensive Loss, net of tax (2,073) (2,219)
TOTAL SHAREHOLDERS' EQUITY 91,750 90,282
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 169,017 $ 133,251
v3.24.3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Aug. 03, 2024
Jan. 31, 2024
Statement of Financial Position [Abstract]    
Preferred Stock, Par Value $ 10 $ 10
Preferred Stock, Shares Authorized 100,000 100,000
Preferred Stock, Shares Issued 0 0
Common Stock, Par Value $ 0.05 $ 0.05
Common Stock, Shares Authorized 13,000,000 13,000,000
Common Stock, Shares Issued 10,914,014 10,812,137
Treasury Stock, Shares 3,393,442 3,368,763
v3.24.3
Condensed Consolidated Statements of Income (Loss) - USD ($)
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Income Statement [Abstract]        
Revenue $ 40,539,000 $ 35,524,000 $ 73,500,000 $ 70,943,000
Cost of Revenue 26,213,000 25,814,000 47,202,000 48,847,000
Gross Profit 14,326,000 9,710,000 26,298,000 22,096,000
Operating Expenses:        
Selling and Marketing 6,732,000 6,697,000 12,388,000 12,707,000
Research and Development 1,412,000 1,557,000 3,015,000 3,345,000
General and Administrative 5,121,000 2,654,000 8,488,000 5,780,000
Operating Expenses 13,265,000 10,908,000 23,891,000 21,832,000
Operating Income 1,061,000 (1,198,000) 2,407,000 264,000
Other Income (Expense), net:        
Interest Expense (938,000) (674,000) (1,419,000) (1,289,000)
Gain (Loss) on Foreign Currency Transactions (181,000) (197,000) (323,000) (11,000)
Other, net 8,000 62,000 32,000 56,000
Total Other Income (Expense) (1,111,000) (809,000) (1,711,000) (1,244,000)
Income (Loss) Before Income Taxes (50,000) (2,007,000) 696,000 (980,000)
Income Tax Provision (Benefit) 261,000 (390,000) (173,000) (211,000)
Net Income (Loss) $ (311,000) $ (1,617,000) $ 869,000 $ (769,000)
Net Income (Loss) per Common Share-Basic $ (0.04) $ (0.22) $ 0.12 $ (0.1)
Net Income (Loss) per Common Share-Diluted $ (0.04) $ (0.22) $ 0.11 $ (0.1)
Weighted Average Number of Common Shares Outstanding—Basic 7,515,706 7,420,135 7,489,223 7,396,200
Weighted Average Number of Common Shares Outstanding—Diluted 7,515,706 7,420,135 7,617,406 7,396,200
v3.24.3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Statement of Comprehensive Income [Abstract]        
Net Income (Loss) $ (311) $ (1,617) $ 869 $ (769)
Other Comprehensive Income, net of taxes:        
Foreign Currency Translation Adjustments 343 64 146 274
Other Comprehensive Income 343 64 146 274
Comprehensive Income (Loss) $ 32 $ (1,553) $ 1,015 $ (495)
v3.24.3
Consolidated Statements of Changes in Shareholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Jan. 31, 2023 $ 84,367 $ 534 $ 61,131 $ 59,175 $ (34,235) $ (2,238)
Beginning Balance, Shares at Jan. 31, 2023   10,676,851        
Share-Based Compensation 356   356      
Employee Option Exercises 43   43      
Employee Option Exercises, Shares   4,094        
Restricted Stock Awards Vested (350) $ 4 (4)   (350)  
Restricted Stock Awards Vested, Shares   99,989        
Net Income (Loss) 848     848    
Foreign Currency Translation Adjustment 210         210
Ending Balance at Apr. 29, 2023 85,474 $ 538 61,526 60,023 (34,585) (2,028)
Ending Balance, Shares at Apr. 29, 2023   10,780,934        
Beginning Balance at Jan. 31, 2023 84,367 $ 534 61,131 59,175 (34,235) (2,238)
Beginning Balance, Shares at Jan. 31, 2023   10,676,851        
Net Income (Loss) (769)          
Foreign Currency Translation Adjustment 274          
Ending Balance at Jul. 29, 2023 84,401 $ 540 62,004 58,406 (34,585) (1,964)
Ending Balance, Shares at Jul. 29, 2023   10,792,879        
Beginning Balance at Apr. 29, 2023 85,474 $ 538 61,526 60,023 (34,585) (2,028)
Beginning Balance, Shares at Apr. 29, 2023   10,780,934        
Share-Based Compensation 398   398      
Employee Option Exercises 82 $ 1 81      
Employee Option Exercises, Shares   7,429        
Restricted Stock Awards Vested   $ 1 (1)      
Restricted Stock Awards Vested, Shares   4,516        
Net Income (Loss) (1,617)     (1,617)    
Foreign Currency Translation Adjustment 64         64
Ending Balance at Jul. 29, 2023 84,401 $ 540 62,004 58,406 (34,585) (1,964)
Ending Balance, Shares at Jul. 29, 2023   10,792,879        
Beginning Balance at Jan. 31, 2024 90,282 $ 541 62,684 63,869 (34,593) (2,219)
Beginning Balance, Shares at Jan. 31, 2024   10,812,137        
Share-Based Compensation 325   325      
Employee Option Exercises 48   48      
Employee Option Exercises, Shares   5,055        
Restricted Stock Awards Vested (432) $ 4 (4)   (432)  
Restricted Stock Awards Vested, Shares   78,077        
Net Income (Loss) 1,181     1,181    
Foreign Currency Translation Adjustment (197)         (197)
Ending Balance at Apr. 27, 2024 91,207 $ 545 63,053 65,050 (35,025) (2,416)
Ending Balance, Shares at Apr. 27, 2024   10,895,269        
Beginning Balance at Jan. 31, 2024 $ 90,282 $ 541 62,684 63,869 (34,593) (2,219)
Beginning Balance, Shares at Jan. 31, 2024   10,812,137        
Employee Option Exercises, Shares 65,900          
Net Income (Loss) $ 869          
Foreign Currency Translation Adjustment 146          
Ending Balance at Aug. 03, 2024 91,750 $ 546 63,563 64,739 (35,025) (2,073)
Ending Balance, Shares at Aug. 03, 2024   10,914,014        
Beginning Balance at Apr. 27, 2024 91,207 $ 545 63,053 65,050 (35,025) (2,416)
Beginning Balance, Shares at Apr. 27, 2024   10,895,269        
Share-Based Compensation 481   481      
Employee Option Exercises 30 $ 1 29      
Employee Option Exercises, Shares   14,433        
Restricted Stock Awards Vested, Shares   4,312        
Net Income (Loss) (311)     (311)    
Foreign Currency Translation Adjustment 343         343
Ending Balance at Aug. 03, 2024 $ 91,750 $ 546 $ 63,563 $ 64,739 $ (35,025) $ (2,073)
Ending Balance, Shares at Aug. 03, 2024   10,914,014        
v3.24.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Cash Flows from Operating Activities:    
Net Income (Loss) $ 869 $ (769)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities:    
Depreciation and Amortization 2,216 2,144
Amortization of Debt Issuance Costs 14 11
Share-Based Compensation 806 754
Restructuring, non-cash   2,040
Changes in Assets and Liabilities, net of impact of acquisition:    
Accounts Receivable 3,612 3,612
Inventories (384) 283
Income Taxes (711) (1,461)
Accounts Payable and Accrued Expenses 2,409 (2,267)
Deferred Revenue (619) 0
Other (1,146) 371
Net Cash Provided by Operating Activities 7,066 4,718
Cash Flows from Investing Activities:    
Purchases of Property, Plant and Equipment (830) (494)
Cash Paid for MTEX Acquisition, net of cash acquired (20,729) 0
Net Cash Used for Investing Activities (21,559) (494)
Cash Flows from Financing Activities:    
Net Cash Proceeds from Employee Stock Option Plans 13 71
Net Cash Proceeds from Share Purchases under Employee Stock Purchase Plan 64 54
Net Cash Used for Payment of Taxes Related to Vested Restricted Stock (432) (350)
Borrowings under Revolving Credit Facility, net 3,912 0
Repayment under Revolving Credit Facility, net 0 (2,000)
Proceeds from Long-Term Debt Borrowings 15,078 0
Payment of Minimum Guarantee Royalty Obligation (750) (875)
Principal Payments of Long-Term Debt (3,274) (750)
Payment of Debt Issuance Costs (35) 0
Net Cash Provided by (Used for) Financing Activities 14,576 (3,850)
Effect of Exchange Rate Changes on Cash and Cash Equivalents 214 210
Net Increase in Cash and Cash Equivalents 297 584
Cash and Cash Equivalents, Beginning of Period 4,527 3,946
Cash and Cash Equivalents, End of Period 4,824 4,530
Supplemental Disclosures of Cash Flow Information:    
Cash Paid During the Period for Interest 1,008 1,184
Cash Paid During the Period for Income Taxes, net of refunds 540 1,264
Non-Cash Transactions:    
Operating Lease Obtained in Exchange for Operating Lease Liabilities $ 1,455 $ 0
v3.24.3
Business and Basis of Presentation
 6 Months Ended
Aug. 03, 2024
Business and Basis Of Presentation [Abstract]  
Business and Basis of Presentation

Note 1 – Business and Basis of Presentation

Overview

Headquartered in West Warwick, Rhode Island, AstroNova, Inc. leverages its expertise in data visualization technologies to design, develop, manufacture and distribute a broad range of specialty printers and data acquisition and analysis systems. Our products are employed around the world in a wide range of applications in the aerospace, apparel, automotive, avionics, chemical, computer peripherals, communications, distribution, food and beverage, general manufacturing, packaging and transportation industries.

Our business consists of two segments, Product Identification (“PI”) and Test & Measurement (“T&M”). The PI segment includes specialty printing systems and related supplies sold under the QuickLabel®, TrojanLabel® and GetLabels™ brand names. The T&M segment consists of our line of aerospace products, including flight deck printers, networking hardware, and related accessories as well as T&M data acquisition systems sold under the AstroNova® brand name.

On May 4, 2024, we entered into an agreement to acquire MTEX New Solution, S.A., (“MTEX”), a Portugal-based manufacturer of digital printing equipment that addresses a wide variety of markets and applications including textiles, packaging, labeling, apparel, footwear and more. We reported MTEX as a part of our PI segment as of May 6, 2024, the closing date of this acquisition. Refer to Note 3, “Acquisition” for further details.

PI products sold under the QuickLabel, TrojanLabel and GetLabels brands are used in brand owner and commercial applications to provide product packaging, marketing, tracking, branding, and labeling solutions to a wide array of industries. The PI segment offers a variety of digital color label tabletop printers and light commercial label printers, direct-to-package printers, high-volume presses, and specialty original equipment manufacturer (“OEM”) printing systems, as well as a wide range of label, tag and other supplies, including ink and toner, allowing customers to mark, track, protect and enhance the appearance of their products. PI products sold under the Astro Machine brand also include a variety of label printers, envelope and packaging printing, and related processing and handling equipment.

In the T&M segment, we have a long history of using our technologies to provide networking systems and high-resolution flight deck and cabin printers for the aerospace market. In addition, the T&M segment includes data acquisition recorders, sold under the AstroNova brand, to enable our customers to acquire and record visual and electronic signal data from local and networked data streams and sensors. The recorded data is processed, analyzed, stored and presented in various visual output formats.

Our PI products are sold by direct field salespersons, OEMs and independent dealers and representatives, while our T&M products are sold predominantly through direct sales and independent representatives. In the United States, we have factory-trained direct field salespeople located throughout the country specializing in PI products. We also have direct field sales or service centers in Canada, China, Denmark, France, Germany, Malaysia, Mexico, Portugal, Singapore, and the United Kingdom staffed by our own employees and dedicated third party contractors. Additionally, we utilize over 100 independent dealers and representatives selling and marketing our products in over 60 countries.

Unless otherwise indicated, references to “AstroNova,” the “Company,” “we,” “our,” and “us” in this Quarterly Report on Form 10-Q refer to AstroNova, Inc. and its consolidated subsidiaries.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles and reflect all adjustments consisting of normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results of the interim periods included herein. These financial statements do not include all disclosures associated with annual financial statements and, accordingly, should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended January 31, 2024.

The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes, including those that require consideration of forecasted financial information using information that is reasonably available to us at this time. Some of the more significant estimates relate to revenue recognition, allowances for doubtful accounts, inventory valuation, income taxes, valuation of long-lived assets, intangible assets and goodwill, share-based compensation, contingent consideration liability and warranty reserves. Management’s estimates are based on the facts and circumstances available at the time estimates are made, historical experience, risk of loss, general economic conditions and trends, and management’s assessments of the probable future outcome of these matters. Consequently, actual results could differ from those estimates.

Results of operations for the interim periods presented herein are not necessarily indicative of the results that may be expected for the full year.

Certain amounts in the prior year’s financial statements have been reclassified to conform to the current year’s presentation.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of AstroNova, Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.

v3.24.3
Summary of Significant Accounting Policies Update
 6 Months Ended
Aug. 03, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Update

Note 2 – Summary of Significant Accounting Policies Update

The accounting policies used in preparing the condensed consolidated financial statements in this Form 10-Q are the same as those used in preparing our consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2024.

Recent Accounting Pronouncements Not Yet Adopted

On March 6, 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports on Form 10-K including, among other things, material climate-related risks and their impact; activities to mitigate or adapt to material climate-related risks; governance and oversight of climate-related risks; material climate-related targets or goals and their financial impact; and qualitative and quantitative disclosures regarding greenhouse gas emissions. The final rules follow a phase-in timeline and would begin to apply prospectively to our fiscal year beginning February 1, 2027. In April 2024, the SEC voluntarily stayed the effectiveness of the rules pending completion of judicial review of the consolidated challenges to the final rules. We are currently monitoring the legal challenges and evaluating the potential impact of these rules on our consolidated financial statements and disclosures.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”) to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 modifies the requirement for income tax disclosures to include (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. We will adopt this standard beginning with our fiscal year ending January 31, 2026. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (CODM), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 also requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by ASU 2023-07 in interim periods. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. We will adopt this standard beginning with our fiscal year ending January 31, 2025, and for interim periods beginning with our first quarter of fiscal 2026. We are currently evaluating the new disclosure requirements of ASU 2023-07 and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements or disclosures.

No other new accounting pronouncements, issued or effective during the first six months of the current year, have had or are expected to have a material impact on our consolidated financial statements.

v3.24.3
Acquisition
 6 Months Ended
Aug. 03, 2024
Business Combinations [Abstract]  
Acquisition

Note 3 – Acquisition

We account for our business combinations using the acquisition method as prescribed by Accounting Standard Codification 805, “Business Combinations” ("ASC 805"). ASC 805 requires the purchase price of the acquisition to be allocated to the tangible and intangible assets acquired and liabilities assumed based on their fair value as of the acquisition date as determined by widely accepted valuation techniques in accordance with ASC 820, “Fair Value Measurement.” Any excess of the purchase price over the fair value of the net identified assets acquired and liabilities assumed will be recorded as goodwill. ASC 805 establishes a measurement period to provide companies with a reasonable amount of time to obtain the information necessary to identify and measure various items in a

business combination and cannot extend beyond one year from the acquisition date. If the initial accounting for the business combination has not been completed by the end of the reporting period in which the business combination occurs, provisional amounts are reported to present information about facts and circumstances that existed as of the acquisition date. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of the tangible and intangible assets acquired and liabilities assumed with the corresponding offset to goodwill, to the extent such information was not available to us at the acquisition date to determine such amounts. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of income (loss). We expect to complete the final fair value determination of the assets acquired and liabilities assumed as soon as practicable within the measurement period and in any event not later than one year from the acquisition closing date.

Accounting for business combinations requires us to make significant estimates and assumptions at the acquisition date. Significant assumptions relevant to the determination of the fair value of the tangible and intangible assets acquired and liabilities assumed include, but are not limited to, expected future cash flows, discount rates, royalty rates, and other assumptions. Such estimates are inherently uncertain and may be subject to refinement.

All acquisition-related costs, other than the costs to issue debt or equity securities, are accounted for as expenses in the period in which they are incurred. Changes in the fair value of contingent consideration arrangements that are not measurement period adjustments are recognized in earnings. The results of operations of the acquired entity, including revenues and earnings, are included in our financial statements from the closing date of the acquisition.

MTEX

Background

On May 4, 2024, AstroNova, along with its wholly-owned Portugal Subsidiary, AstroNova Portugal, Unipessoal, Lda (the “Purchaser”) entered into a Share Purchase Agreement (the “Purchase Agreement”) with Effort Premier Solutions Lda., a private limited company incorporated under the laws of Portugal (the “Seller”) and Elói Serafim Alves Ferreira, as the “Second Guarantor”.

In accordance with the terms and subject to the conditions set forth in the Purchase Agreement, the Purchaser acquired from the Seller, 100% of the issued and outstanding share capital of MTEX. The closing date for the acquisition was May 6, 2024. This transaction is a business combination and accounted for using the acquisition method as prescribed by ASC 805.

The purchase price for this acquisition consists of EUR 17,268,345 (approximately $18.7 million) paid by the Purchaser to the Seller on the closing date, and up to an additional EUR 731,655 (approximately $0.8 million) retained by the Purchaser to secure certain indemnification obligations of the Seller to be released by the Purchaser subject to resolution of such obligations. The Seller may be entitled to additional contingent consideration if specified revenue targets are achieved by MTEX as set forth in the Purchase Agreement for the three calendar year periods ending after the closing date. The contingent consideration consists of potential earn-out payments to the seller of EUR 1.0 million (approximately $1.1 million) if the specified revenue target is achieved in the full fiscal year of 2025, an additional EUR 1.5 million (approximately $1.6 million) if the specified revenue target is achieved in full fiscal year 2026, and an additional EUR 1.5 million (approximately $1.6 million) if the specified earnings targets are achieved in full fiscal year 2027, with a maximum of EUR 4.0 million (approximately $4.4 million) if all of the specified earnings targets are achieved over the three-year period.

Also on May 4, 2024, the Purchaser, the Seller, the Second Guarantor and MTEX entered into a Transitional Management Agreement (the “Transitional Management Agreement”) pursuant to which the Second Guarantor will serve as the MTEX’s Chief Executive Officer for a term of three years following the closing date. Under the terms of the Transitional Management Agreement, the Second Guarantor will receive a salary and grant of restricted stock units and will be entitled to participate in our incentive compensation programs on the same terms as our executive officers. The Transitional Management Agreement includes customary non-competition and confidentiality provisions.

Upon the closing of the transaction, MTEX became a wholly owned indirect subsidiary of AstroNova, Inc.

Purchase Price Allocation

A summary of the fair value of the consideration transferred as of the acquisition closing date is presented in the table below:

(In thousands)

 

 

 

Cash Paid at Closing

 

$

18,732

 

Holdback Amount (a)

 

 

742

 

Fair Value of the Earnout

 

 

1,619

 

Total Purchase Price

 

$

21,093

 

 

 

 

 

 

a)
The holdback amount is expected to be paid out in full over the next two years.

The approach to valuing the initial contingent consideration relating to the earn-out requires the use of unobservable factors such as projected revenues over the term of the earn-out periods, discounted for the period over which the initial contingent consideration is measured, and relevant volatility rates. Based upon these assumptions, the initial earn-out contingent consideration is then valued using an option pricing model.

The following table sets forth the preliminary purchase price allocation of the MTEX acquisition for the estimated fair value of the net assets acquired and liabilities assumed as of May 6, 2024:

 

(In thousands)

 

 

 

Cash

 

$

364

 

Accounts Receivable

 

 

3,989

 

Inventory

 

 

3,807

 

Prepaid Expenses and Other Current Assets

 

 

301

 

Property, Plant and Equipment

 

 

4,802

 

Other Long-Term Assets

 

 

5,154

 

Identifiable Intangible Assets

 

 

9,556

 

Goodwill

 

 

10,629

 

Accounts Payable and Other Current Liabilities

 

 

(4,225

)

Debt Assumed

 

 

(7,918

)

Other Long-Term Liabilities

 

 

(5,366

)

Total Purchase Price

 

$

21,093

 

The amounts above are provisional and are based on information that is currently available. Management believes the information provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed but is waiting for additional information necessary to finalize those fair values. Therefore, the provisional measurements of fair value reflected are subject to change and such changes could be significant. Management anticipates changes to the value of inventory, property, plant and equipment, deferred taxes and identifiable intangible assets as additional information is collected and analyzed and pending the completion of certain appraisals and a valuation report. We expect to complete the final fair value determination of the assets acquired and liabilities assumed, resolutions of working capital, and any other purchase price adjustments identified as soon as practicable within the measurement period and, in any event, not later than one year from the acquisition closing date.

The following table reflects the preliminary fair value of the acquired identifiable intangible asset and related estimated useful lives:

(In thousands)

 

Fair
Value

 

 

Useful Life
(years)

 

Customer Relations

 

$

8,786

 

 

 

10

 

Trademarks/Tradenames

 

 

488

 

 

 

3

 

Internally Developed Software

 

 

282

 

 

 

6

 

Total

 

$

9,556

 

 

 

 

The Customer Relations intangible asset represents the relationships that will be maintained with certain historical customers of MTEX. The trademark/tradename intangible assets reflect the industry reputation of the MTEX name and the registered trademarks held by MTEX for the use of several marks and logos. The internally developed software intangible assets represent software used to monitor customer ink use and troubleshoot issues with customers.

The fair value of the customer relations intangible asset acquired was estimated by applying the income approach using the Multi-Period Excess Earning Method. This fair value measurement is based on significant inputs that are not observable in the market and therefore represents a Level 3 measurement as defined in ASC 820, “Fair Value Measurement”. The fair value determined under this approach is a function of (i) future revenues expected to be generated by these assets and the profitability of the assets, (ii)

identification of the contribution of other tangible and intangible assets to the cash flows generated by these asset to apply an appropriate capital charge against the cash flow, and (iii) a discount rate of 14.0% used to calculate the present value of the stream of anticipated cash flows. The fair value of the trademark intangible asset acquired was estimated by applying the income approach using the “relief-from-royalty” method. The value under the relief-from-royalty method is a function of (i) the concluded royalty rate of 0.75%, (ii) projected revenues generated by product sales under the asset being valued, and (iii) a discount rate of 12.76%. The fair value of the internally developed software intangible asset acquired was estimated by applying the cost approach which takes into consideration the internal development costs and a hypothetical developer’s profit margin to build the software.

Goodwill of $10.6 million, which is not deductible for tax purposes, represents the excess of the purchase price over the estimated fair value assigned to the tangible and identifiable intangible assets acquired and liabilities assumed from MTEX. The goodwill recognized under ASC 805 is attributable to the expected earnings potential of the business, synergies which are expected to enhance and expand our overall product portfolio, opportunities in new and existing markets, and MTEX's assembled workforce. The carrying amount of the goodwill was allocated to the PI segment.

Total acquisition-related costs of $0.6 million were included in general and administrative expenses in our condensed consolidated statements of income (loss) for the three and six months ended August 3, 2024.

The amounts of revenue and earnings before taxes attributable to MTEX and included in our consolidated statements of income (loss) for the three and six months ended August 3, 2024 were as follows:

 

 

Three Months Ended

 

Six Months Ended

(In thousands)

 

August 3,
2024

 

 

 

August 3,
2024

 

 

Revenue

 

$

768

 

 

 

$

768

 

 

Earnings (Loss) before Taxes

 

$

(1,754

)

 

 

$

(1,754

)

 

MTEX results are reported as part of the PI segment. Pro forma results as if the acquisition was closed on February 1, 2024 are not provided, as disclosure of such amounts was impractical to determine
v3.24.3
Revenue Recognition
 6 Months Ended
Aug. 03, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 4 – Revenue Recognition

We derive revenue from the sale of (i) hardware, including digital color label printers and specialty OEM printing systems, portable data acquisition systems, and airborne printers and networking hardware used in the flight deck and cabin of military, commercial and business aircraft, (ii) related supplies required in the operation of the hardware, (iii) repairs and maintenance of hardware and (iv) service agreements.

Revenues disaggregated by primary geographic markets and major product types are as follows:

Primary geographical markets

 

 

Three Months Ended

 

 

Six Months Ended

 

(In thousands)

 

August 3, 2024

 

 

July 29, 2023*

 

 

August 3, 2024

 

 

July 29, 2023*

 

United States

 

$

23,777

 

 

$

20,124

 

 

$

43,341

 

 

$

40,820

 

Europe

 

 

10,222

 

 

 

9,933

 

 

 

19,192

 

 

 

19,796

 

Canada

 

 

2,741

 

 

 

2,289

 

 

 

4,500

 

 

 

4,169

 

Central and South America

 

 

1,336

 

 

 

1,024

 

 

 

2,534

 

 

 

2,224

 

Asia

 

 

2,080

 

 

 

1,779

 

 

 

3,265

 

 

 

3,250

 

Other

 

 

383

 

 

 

375

 

 

 

668

 

 

 

684

 

Total Revenue

 

$

40,539

 

 

$

35,524

 

 

$

73,500

 

 

$

70,943

 

*Certain amounts have been reclassified to conform to the current year's presentation.

Major product types

 

 

Three Months Ended

 

 

Six Months Ended

 

(In thousands)

 

August 3, 2024

 

 

July 29, 2023

 

 

August 3, 2024

 

 

July 29, 2023

 

Hardware

 

$

12,359

 

 

$

11,268

 

 

$

21,234

 

 

$

22,934

 

Supplies

 

 

22,344

 

 

 

19,700

 

 

 

40,977

 

 

 

38,772

 

Service and Other

 

 

5,836

 

 

 

4,556

 

 

 

11,289

 

 

 

9,237

 

Total Revenue

 

$

40,539

 

 

$

35,524

 

 

$

73,500

 

 

$

70,943

 

 

In December 2022, we entered into an amended contract with one of our T&M customers that provided for a total payment of $3.25 million to us as a result of our claims allowable under French law relating to additional component costs we have incurred and will continue to incur in order to supply aerospace printers under the contract for the period beginning in April 2022 and continuing through fiscal 2025. Revenue from this arrangement will be recognized in proportion to the total estimated shipments through the end of the contract period. As of January 31, 2024, we recognized $2.4 million in revenue and the $0.8 million balance was recorded as deferred revenue. During the six months ended August 3, 2024, we recognized an additional $0.5 million which is included in revenue in the condensed consolidated statement of income (loss) for the respective period presented, and there is a balance of $0.3 million in deferred revenue at August 3, 2024. The remaining revenue to be recognized will be based on our shipments of the printers during the remainder of fiscal year 2025.

Contract Assets and Liabilities

We normally do not have contract assets, which are primarily unbilled accounts receivable that are conditional on something other than the passage of time.

Our contract liabilities, which represent billings in excess of revenue recognized, are related to advanced billings for purchased service agreements and extended warranties. Contract liabilities were $457,000 and $530,000 at August 3, 2024 and January 31, 2024, respectively, and are recorded as deferred revenue in the accompanying condensed consolidated balance sheet. The decrease in the deferred revenue balance during the six months ended August 3, 2024 is due to revenue recognized during the current period, partially offset by cash payments received in advance of satisfying performance obligations, including $460,000 of revenue recognized that was included in the deferred revenue balance at January 31, 2024.

Contract Costs

We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain costs related to obtaining sales contracts for our aerospace printer products meet the requirement to be capitalized. These costs are deferred and amortized over the remaining useful life of these contracts, which we currently estimate to be approximately 17 years as of August 3, 2024. The balance of these contract assets at January 31, 2024 was $1.3 million. We also recognize an asset for the costs to fulfill a contract with a customer if the costs are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered. In fiscal 2025, we incurred $0.3 million of costs to fulfill a contract which will be amortized over approximately 17 years. During the three and six months ended August 3, 2024, we amortized contract costs of $23,000 and $42,000, respectively. The balance of deferred incremental direct costs net of accumulated amortization at August 3, 2024 was $1.6 million, of which $0.1 million is reported in other current assets, and $1.5 million is reported in other assets in the accompanying condensed consolidated balance sheet.

v3.24.3
Net Income (Loss) Per Common Share
 6 Months Ended
Aug. 03, 2024
Earnings Per Share [Abstract]  
Net Income (Loss) Per Common Share

Note 5 – Net Income (Loss) Per Common Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares and, if dilutive, common equivalent shares, determined using the treasury stock method for stock options, restricted stock awards and restricted stock units outstanding during the period. A reconciliation of the shares used in calculating basic and diluted net income (loss) per share is as follows:

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

August 3, 2024

 

 

July 29, 2023

 

 

August 3, 2024

 

 

July 29, 2023

 

 

Weighted Average Common Shares Outstanding – Basic

 

 

7,515,706

 

 

 

7,420,135

 

 

 

7,489,223

 

 

 

7,396,200

 

 

Effect of Dilutive Options, Restricted Stock Awards and
   Restricted Stock Units

 

 

—

 

(1)

 

—

 

(2)

 

128,183

 

 

 

—

 

(2)

Weighted Average Common Shares Outstanding – Diluted

 

 

7,515,706

 

 

 

7,420,135

 

 

 

7,617,406

 

 

 

7,396,200

 

 

(1)For the three months ended August 3, 2024, we had weighted average common stock equivalent shares outstanding of 86,197 that could potentially dilute earnings per share in future periods. These shares were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive given the net loss during the periods.

(2)For the three and six months ended July 29, 2023, we had weighted average common stock equivalent shares outstanding of 74,178 and 77,150, respectively, that could potentially dilute earnings per share in future periods. These shares were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive given the net loss during the periods.

For the three and six months ended August 3, 2024, the diluted per share amounts do not reflect weighted average common equivalent shares outstanding of 218,210 and 223,011, respectively. For the three and six months ended July 29, 2023, the diluted per share amounts do not reflect weighted average common equivalent shares outstanding of 226,457 and 376,468, respectively. These outstanding common equivalent shares were not included due to their anti-dilutive effect.

v3.24.3
Intangible Assets
 6 Months Ended
Aug. 03, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

Note 6 – Intangible Assets

Intangible assets are as follows:

 

 

August 3, 2024

 

 

January 31, 2024

 

(In thousands)

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Currency
Translation
Adjustment

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Currency
Translation
Adjustment

 

 

Net
Carrying
Amount

 

RITEC:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Customer Contract
       Relationships

 

$

2,830

 

 

$

(1,722

)

 

$

—

 

 

$

1,108

 

 

$

2,830

 

 

$

(1,689

)

 

$

—

 

 

$

1,141

 

TrojanLabel:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Distributor Relations

 

937

 

 

 

(728

)

 

 

26

 

 

 

235

 

 

937

 

 

 

(686

)

 

 

30

 

 

 

281

 

Honeywell:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Customer Contract
       Relationships

 

 

27,773

 

 

 

(13,228

)

 

 

—

 

 

 

14,545

 

 

 

27,773

 

 

 

(12,795

)

 

 

—

 

 

 

14,978

 

Astro Machine:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Customer Contract
      Relationships

 

 

3,060

 

 

 

(1,224

)

 

 

—

 

 

 

1,836

 

 

 

3,060

 

 

 

(918

)

 

 

—

 

 

 

2,142

 

   Trademarks

 

420

 

 

 

(168

)

 

 

—

 

 

 

252

 

 

420

 

 

 

(126

)

 

 

—

 

 

 

294

 

MTEX:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Customer Contract
      Relationships

 

 

8,786

 

 

 

(219

)

 

 

49

 

 

 

8,616

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Internally Developed Software

 

 

282

 

 

 

(12

)

 

 

2

 

 

 

272

 

 

 

 

 

 

 

 

 

 

 

 

 

   Trademarks

 

 

488

 

 

 

(40

)

 

 

2

 

 

 

450

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Intangible Assets, net

 

$

44,576

 

 

$

(17,341

)

 

$

79

 

 

$

27,314

 

 

$

35,020

 

 

$

(16,214

)

 

$

30

 

 

$

18,836

 

 

There were no impairments to intangible assets during the six months ended August 3, 2024 and July 29, 2023.

With respect to the acquired intangible assets included in the table above, amortization expense of $0.7 million and $0.6 million has been included in the condensed consolidated statements of income (loss) for the three months ended August 3, 2024, and July 29, 2023, respectively. Amortization expense of $1.1 million and $1.2 million related to the above-acquired intangible assets has been included in the accompanying condensed consolidated statements of income (loss) for the six months ended August 3, 2024 and July 29, 2023, respectively.

Estimated amortization expense for the next five fiscal years is as follows:

 

(In thousands)

 

Remaining
2025

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

Estimated amortization expense

 

$

1,404

 

 

$

2,808

 

 

$

2,808

 

 

$

2,808

 

 

$

2,245

 
v3.24.3
Inventories
 6 Months Ended
Aug. 03, 2024
Inventory Disclosure [Abstract]  
Inventories

Note 7 – Inventories

Inventories are stated at the lower of cost (standard and average methods) or net realizable value and include material, labor and manufacturing overhead. The components of inventories are as follows:

 

(In thousands)

 

August 3, 2024

 

 

January 31, 2024

 

Materials and Supplies

 

$

38,995

 

 

$

39,078

 

Work-In-Process

 

 

2,095

 

 

 

1,054

 

Finished Goods

 

 

19,989

 

 

 

15,645

 

 

 

61,079

 

 

 

55,777

 

Inventory Reserve

 

 

(10,510

)

 

 

(9,406

)

 

$

50,569

 

 

$

46,371

 
v3.24.3
Property, Plant and Equipment
 6 Months Ended
Aug. 03, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment

Note 8 – Property, Plant and Equipment

Property, plant and equipment consist of the following:

 

(In thousands)

 

August 3, 2024

 

 

January 31, 2024

 

Land and Land Improvements

 

$

2,304

 

 

$

2,304

 

Buildings and Leasehold Improvements

 

 

15,355

 

 

 

14,381

 

Machinery and Equipment

 

 

37,177

 

 

 

26,123

 

Computer Equipment and Software

 

 

14,379

 

 

 

14,238

 

Gross Property, Plant and Equipment

 

 

69,215

 

 

 

57,046

 

Accumulated Depreciation

 

 

(50,465

)

 

 

(42,861

)

Net Property Plant and Equipment

 

$

18,750

 

 

$

14,185

 

 

Depreciation expense on property, plant and equipment was $0.6 million and $1.1 million for the three and six months ended August 3, 2024, respectively. Depreciation expense on property, plant and equipment was $0.5 million and $0.9 million for the three and six months ended July 29, 2023, respectively.
v3.24.3
Credit Agreement and Long-Term Debt
 6 Months Ended
Aug. 03, 2024
Debt Disclosure [Abstract]  
Credit Agreement and Long-Term Debt

Note 9 – Credit Agreement and Long-Term Debt

In connection with our purchase of MTEX, on May 6, 2024, we entered a Third Amendment to Amended and Restated Credit Agreement (the “Amendment”) with Bank of America, N.A., as lender (the “Lender”). The Amendment amended the Amended and Restated Credit Agreement dated as of July 30, 2020, as amended by the First Amendment to Amended and Restated Credit Agreement, dated as of March 24, 2021, the LIBOR Transition Amendment, dated as of December 14, 2021, and the Second Amendment to Amended and Restated Credit Agreement dated as of August 4, 2022, and the Joinder Agreement relating to our subsidiary Astro Machine Corporation (“Astro Machine”) dated as of August 26, 2022 (the “Existing Credit Agreement”; the Existing Credit Agreement as amended by the Amendment, the “Amended Credit Agreement”), between AstroNova, Inc. as the borrower, Astro Machine as a guarantor, and the Lender.

The Amended Credit Agreement provides for (i) a new term loan to AstroNova, Inc. in the principal amount of EUR 14.0 million (the “Term A-2 Loan”), which term loan is in addition to the existing term loan (the “Existing Term Loan”) outstanding under the Existing Credit Agreement in the principal amount of approximately $12.3 million as of the effective date of the Amendment, and (ii) an increase in the aggregate principal amount of the revolving credit facility available to AstroNova, Inc. from $25.0 million to $30.0 million until January 31, 2025, upon and after which the aggregate principal amount of the revolving credit facility will reduce to $25.0 million. At the closing of the Amendment, we borrowed the entire EUR 14.0 million Term A-2 Loan, and EUR 3.0 million and a US dollar amount which was converted to Euros to satisfy the entire purchase price payable on the closing date pursuant to the Purchase Agreement. The revolving credit facility may otherwise be used for general corporate purposes.

The Amended Credit Agreement requires that the Term A-2 Loan be paid in quarterly installments on the last day of each of our fiscal quarters through April 30, 2027 in the principal amount of EUR 583,333 each, and the entire then-remaining principal balance of the Term A-2 Loan is required to be paid on August 4, 2027. The Amended Credit Agreement requires that the remaining balance of the Existing Term Loan be paid in quarterly installments on the last day of each of our fiscal quarters through April 30, 2027 in the principal amount of $675,000 each, and the entire then remaining principal balance of the term loan is required to be paid on August 4, 2027. We may voluntarily prepay the Term A-2 Term Loan or the Existing Term Loan, in whole or in part, from time to time without premium or penalty (other than customary breakage costs, if applicable). We may repay borrowings under the revolving credit facility at any time without premium or penalty (other than customary breakage costs, if applicable), but in any event no later than August 4, 2027, and any outstanding revolving loans thereunder will be due and payable in full, and the revolving credit facility will terminate, on such date. We may reduce or terminate the revolving line of credit at any time, subject to certain thresholds and conditions, without premium or penalty.

The Term A-2 Loan bears interest at a rate per annum equal to the EURIBOR rate as defined in the Amended Credit Agreement, plus a margin that varies within a range of 1.60% to 2.50% based on our consolidated leverage ratio. The Existing Term Loan and revolving credit loans bear interest at a rate per annum equal to, at our option, either (a) the Term SOFR rate as defined in the Amended Credit Agreement (or, in the case of revolving credit loans denominated in Euros or another currency other than U.S. Dollars, the applicable quoted rate), plus a margin that varies within a range of 1.60% to 2.50% based on our consolidated leverage ratio, or (b) a fluctuating reference rate equal to the highest of (i) the federal fund rate plus 0.50%, (ii) Bank of America’s publicly announced prime rate, (iii) the Term SOFR Rate plus 1.00%, or (iv) 0.50%, plus a margin that varies within a range of 0.60% to 1.50% based on our consolidated leverage ratio. In addition to certain other fees and expenses that we are required to pay to the Lender, we are required to pay a commitment fee on the undrawn portion of the revolving credit facility that varies within a range of 0.15% and 0.35% based on our consolidated leverage ratio.

The loans under the Amended Credit Agreement are subject to certain mandatory prepayments, subject to various exceptions, from (a) net cash proceeds from certain dispositions of property, (b) net cash proceeds from certain issuances of equity, (c) net cash proceeds from certain issuances of additional debt and (d) net cash proceeds from certain extraordinary receipts.

Amounts repaid under the revolving credit facility may be reborrowed, subject to our continued compliance with the Amended Credit Agreement. No amount of the Term A-2 Loan or the Existing Term Loan that is repaid may be reborrowed.

We must comply with various customary financial and non-financial covenants under the Amended Credit Agreement. The financial covenants under the Amended Credit Agreement consist of a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio, certain of the provisions of which were modified by the Amendment; the minimum consolidated asset coverage ratio under the Existing Credit Agreement was eliminated by the Amendment. The primary non-financial covenants limit our and our subsidiaries’ ability to incur future indebtedness, to place liens on assets, to pay dividends or distributions on our or our subsidiaries’ capital stock, to repurchase or acquire our or our subsidiaries’ capital stock, to conduct mergers or acquisitions, to sell assets, to alter our or our subsidiaries’ capital structure, to make investments and loans, to change the nature of our or our subsidiaries’ business, and to prepay subordinated indebtedness, in each case subject to certain exceptions and thresholds as set forth in the Amended Credit Agreement, certain of which provisions were modified by the Amendment. As of August 3, 2024, we believe we are in compliance with all of the covenants in the Amended Credit Agreement.

The Lender is entitled to accelerate repayment of the loans and to terminate its revolving credit commitment under the Amended Credit Agreement upon the occurrence of any of various customary events of default, which include, among other events, the following (which are subject, in some cases, to certain grace periods): failure to pay when due any principal, interest or other amounts in respect of the loans, breach of any of our covenants or representations under the loan documents, default under any other of our or our subsidiaries’ significant indebtedness agreements, a bankruptcy, insolvency or similar event with respect to us or any of our subsidiaries, a significant unsatisfied judgment against us or any of our subsidiaries, or a change of control.

Our obligations under the Amended Credit Agreement continue to be secured by substantially all of our personal property assets (including a pledge of the equity interests we hold in ANI Scandinavia ApS, AstroNova GmbH, AstroNova SAS and the Purchaser), subject to certain exceptions, and by a mortgage on our owned real property in West Warwick, Rhode Island, and are guaranteed by, and secured by substantially all of the personal property assets of Astro Machine.

Equipment Financing

In January 2024, we entered into a secured equipment loan facility agreement with Banc of America Leasing & Capital, LLC and borrowed a principal amount of $0.8 million thereunder for the purpose of financing our purchase of production equipment. This loan matures on January 23, 2029, and bears interest at a fixed rate of 7.06%. Under this loan agreement, equal monthly payments including principal and interest of $16,296 commenced on February 23, 2024, and will continue through the maturity of the equipment loan facility on January 23, 2029.

Assumed Financing Obligations of MTEX

In connection with our acquisition of MTEX, on the May 6, 2024 closing date of this acquisition we assumed certain existing financing obligations of MTEX that remain outstanding as of August 3, 2024. The long-term debt obligations of MTEX that remain outstanding include a term loan ( the “MTEX Term Loan”) pursuant to the agreement dated December 22, 2023, (the “MTEX Term Loan Agreement”) between MTEX and Caixa Central de Crédito Agricola Mutuo. The MTEX Term Loan provides for a term loan in the principal amount of EUR 1.5 million ($1.6 million) and requires monthly principal and interest payments totaling EUR 17,402 ($18,795) commencing in October 2024 continuing through maturity on December 21, 2033, and bears interest at a fixed rate of 6.022% per annum.

MTEX has also received government assistance in the form of interest-free loans from government agencies located in Portugal (the “MTEX Government Grant Term Loans”). The MTEX Government Grant Term Loans are to be repaid to the applicable government agencies and are classified as long-term debt. The current balance of the MTEX Government Grants Term Loans as of August 3, 2024 is EUR 1.3 million ($1.5 million). The MTEX Government Grant Term Loans provide interest-free financing to the extent monthly principal payments are made. In the event that MTEX and the applicable government agency renegotiate the payment dates, interest will be calculated according to a rate determined by the government agency as of the date of renegotiation and added to the outstanding principal payments. The MTEX Government Grant Term Loans mature between December 2024 and January 2027.

Additionally, we assumed short-term financing obligations of MTEX that remain outstanding as of August 3, 2024, including letters of credit, maturing term loans, and financing arrangements for working capital classified as debt.

Summary of Outstanding Debt

Revolving Credit Facility

At August 3, 2024, we had an outstanding balance of $13.0 million on our revolving credit facility. The balance outstanding under the revolving credit facility bore interest at a weighted average annual rate of 8.52% and 8.54% and we incurred $254,000 and $386,000 for interest on this obligation, during the three and six months ended August 3, 2024, respectively. Additionally, during the three and six months ended August 3, 2024, we incurred $13,000 and $25,000, respectively, of commitment fees on the undrawn portion of our revolving credit facility. The balance outstanding under the revolving line of credit bore interest at a weighted average rate of 7.95% and 7.56%, respectively, for the three and six months ended July 29, 2023, and we incurred $333,000 and $625,000, respectively, for interest on this obligation during the three and six months ended July 29, 2023. Additionally, during the three and six months ended July 29, 2023, we incurred $6,000 and $14,000, respectively, of commitment fees on the undrawn portion of our revolving credit facility. Both the interest expense and commitment fees are included as interest expense in the accompanying condensed consolidated statements of income for all periods presented. At August 3, 2024, there was $17.0 million remaining available for borrowing under our revolving credit facility. Additionally, MTEX has a EUR 0.5 million ($0.5 million) available line of credit with Caixa Central de Crédito Agricola Mutuo. This credit line was established in December 2023 and is renewable every six months. There was EUR 0.3 million ($0.4 million) outstanding on this line of credit as of August 3, 2024.

Long-Term Debt

Long-term debt in the accompanying condensed consolidated balance sheets is as follows:

 

(In thousands)

 

August 3,
2024

 

 

January 31,
2024

 

USD Term Loan (7.73% as of August 3, 2024 and 7.56% as
of January 31, 2024); maturity date of August 4, 2027

 

$

10,800

 

 

$

12,150

 

Euro Term Loan (6.94% as of August 3, 2024;
maturity date of August 4, 2027)

 

 

14,638

 

 

 

—

 

MTEX Euro Term Loan (6.022% Fixed Rate as of August 3, 2024;
maturity date of December 21, 2033)

 

 

1,637

 

 

 

—

 

MTEX Euro Government Grant Term Loan (0% as of August 3, 2024;
maturity dates December 2024 - January 2027)

 

 

1,463

 

 

 

—

 

Equipment Loan (7.06% Fixed Rate); maturity date of January 23, 2029

 

 

752

 

 

 

822

 

    Total Debt

 

 

29,290

 

 

 

12,972

 

    Less: Debt Issuance Costs, net of accumulated amortization

 

 

102

 

 

 

80

 

             Current Portion of Debt

 

 

6,513

 

 

 

2,842

 

Long-Term Debt

 

$

22,675

 

 

$

10,050

 

During the three and six months ended August 3, 2024, we recognized interest expense on debt of $560,000 and $793,000, respectively, and during the three and six months ended July 29, 2023, we recognized interest expense on debt of $266,000 and $514,000, respectively, which is recognized in the accompanying condensed consolidated statements of income (loss) for all periods presented.

The schedule of required principal payments remaining during the next five years on long-term debt outstanding as of August 3, 2024 is as follows:

 

(In thousands)

 

 

 

Fiscal 2025, remainder

 

$

3,316

 

Fiscal 2026

 

 

6,263

 

Fiscal 2027

 

 

5,722

 

Fiscal 2028

 

 

12,657

 

Fiscal 2029

 

 

1,332

 

 

$

29,290

 
v3.24.3
Royalty Obligation
 6 Months Ended
Aug. 03, 2024
Royalty Obligation Disclosure [Abstract]  
Royalty Obligation

Note 10 – Royalty Obligation

In fiscal 2018, we entered into an Asset Purchase and License Agreement with Honeywell International, Inc. (“Honeywell”) to acquire an exclusive, perpetual, world-wide license to manufacture Honeywell’s narrow-format flight deck printers for two aircraft families along with certain inventory used in the manufacturing of the licensed printers. The purchase price included a guaranteed minimum royalty payment of $15.0 million, to be paid over ten years, based on gross revenues from the sales of the printers, paper and repair services of the licensed products. The royalty rates vary based on the year in which they are paid or earned, and product sold or service provided, and range from single-digit to mid double-digit percentages of gross revenue.

The guaranteed minimum royalty payment obligation was recorded at the present value of the minimum annual royalty payments. As of August 3, 2024, we had paid an aggregate of $11.9 million of the guaranteed minimum royalty obligation. At August 3, 2024, the current portion of the outstanding guaranteed minimum royalty obligation of $1.4 million is to be paid over the next twelve months and is reported as a current liability and the remainder of $1.2 million is reported as a long-term liability on our condensed consolidated balance sheet. For the three and six months ended August 3, 2024, we incurred $0.7 million and $1.3 million, respectively, in excess royalty expense which is included in cost of revenue in our consolidated statements of income (loss) for all periods presented. A total of $1.4 million in excess royalties was paid in through the second quarter of the current fiscal year, and there are $0.8 million in excess royalty payables due as a result of this agreement for the quarter ended August 3, 2024.

In fiscal 2023, we entered into an Asset Purchase and License Agreement with Honeywell International Inc. (“New HW Agreement”) to acquire an exclusive, perpetual, world-wide license to manufacture Honeywell’s flight deck printers for the Boeing 787 aircraft. The New HW Agreement provides for royalty payments to Honeywell based on gross revenues from the sales of the printers, paper and repair services of the licensed products in perpetuity. The royalty rates vary based on the year in which they are paid or earned and as products are sold or as services are provided and range from single-digit to mid-double-digit percentages of gross revenue. The New HW Agreement includes a provision for guaranteed minimum royalty payments to be paid in the event that the royalties earned by Honeywell do not meet the minimum for the preceding calendar year as follows: $100,000 in 2024, $200,000 in 2025, $233,000 in 2026 and 2027, and $234,000 in 2028.

As of January 31, 2024, the total outstanding royalty obligation under the New HW Agreement was $0.6 million, including $0.2 million recorded as a current liability in the accompanying condensed consolidated balance sheet. During the first six months of fiscal 2025, we incurred and paid $0.1 million in excess royalty expense. As of August 3, 2024, the total outstanding royalty obligation on the New HW Agreement is $0.7 million, including $0.2 million recorded as a current liability in the accompanying condensed consolidated balance sheet.
v3.24.3
Leases
 6 Months Ended
Aug. 03, 2024
Leases [Abstract]  
Leases

Note 11 – Leases

We enter into lease contracts for certain of our facilities at various locations worldwide. Our leases have remaining lease terms of one to ten years, some of which include options to extend the lease term for periods of up to five years when it is reasonably certain that we will exercise such options.

Balance sheet and other information related to our leases is as follows:

 

Operating Leases (In thousands)

 

Balance Sheet Classification

 

August 3,
2024

 

 

January 31,
2024

 

Lease Assets

 

Right of Use Assets

 

$

1,920

 

 

$

603

 

Lease Liabilities – Current

 

Other Accrued Expenses

 

$

337

 

 

$

233

 

Lease Liabilities – Long Term

 

Lease Liabilities

 

$

1,633

 

 

$

415

 

 

Lease cost information is as follows:

 

 

 

 

Three Months
Ended

 

Operating Leases (In thousands)

 

Statement of Income Classification

 

August 3,
2024

 

 

July 29,
2023

 

Operating Lease Costs

 

General and Administrative Expense

 

$

180

 

 

$

127

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended

 

Operating Leases (In thousands)

 

Statement of Income Classification

 

August 3,
2024

 

 

July 29,
2023

 

Operating Lease Costs

 

General and Administrative Expense

 

$

269

 

 

$

259

 

 

 

Maturities of operating lease liabilities are as follows:

 

(In thousands)

 

August 3,
2024

 

Fiscal 2025, remaining

 

$

228

 

Fiscal 2026

 

 

421

 

Fiscal 2027

 

 

376

 

Fiscal 2028

 

 

315

 

Fiscal 2029

 

 

219

 

Thereafter

 

 

905

 

Total Lease Payments

 

 

2,464

 

Less: Imputed Interest

 

 

(494

)

Total Lease Liabilities

 

$

1,970

 

As of August 3, 2024, the weighted-average remaining lease term and weighted-average discount rate for our operating leases are 7.3 years and 5.9%, respectively. We calculated the weighted-average discount rate using incremental borrowing rates, which equal the rates of interest that we would pay to borrow funds on a fully collateralized basis over a similar term.

Supplemental cash flow information related to leases is as follows:

 

 

Three Months
Ended

 

(In thousands)

 

August 3,
2024

 

 

July 29,
2023

 

Cash paid for operating lease liabilities

 

$

88

 

 

$

85

 

 

Six Months
Ended

 

(In thousands)

 

August 3,
2024

 

 

July 29,
2023

 

Cash paid for operating lease liabilities

 

$

174

 

 

$

177

 

 

 

 

 

 

 

 
v3.24.3
Government Grants
 6 Months Ended
Aug. 03, 2024
Government Grants [Abstract]  
Government Grants

Note 12 – Government Grants

Our recently acquired subsidiary, MTEX, receives grants from its local government in Portugal to support its operations and various capital projects. We account for these government grants by analogy to International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance, which follows a grant accounting model. Under this accounting framework, government assistance is recognized when it is probable we will receive assistance and comply with the conditions attached to the assistance. Operational related assistance is recorded on a systematic basis over the periods in which the related cost or expenditures have occurred and is presented as a reduction in the expense for which it is intended to defray. Capital related assistance is recorded as long-term deferred revenue and is recognized in cost of revenue as an offset against depreciation expense over the applicable asset's useful life.

The grant programs have execution periods ending in May 2025 through November 2026. The government agencies may verify compliance with the conditions established in the contracts during the investment phase and upon completion and are entitled to propose adjustments and require reimbursement if the contracts do not meet the specifications. Historically, no significant corrections or returns have occurred. As of August 3, 2024, there are no contingencies associated with the government grants.

The capital related government contracts between the Portuguese government and MTEX are defined on a grant-by-grant basis, with partial reimbursement of the assets acquired in connection with these grants. We have $1.5 million of deferred revenue for capital related government grants which is included in other long-term liabilities in the accompanying condensed consolidated balance sheet as of August 3, 2024, and we have recognized $0.1 million of grant revenue, included in cost of revenue as an offset to depreciation expense in the condensed consolidated statement of income (loss) for the three and six months ended August 3, 2024.

Under the operational related assistance grants, MTEX commits to research and development projects that the Portuguese government partially reimburses. We have recognized $0.3 million of grant revenue for our operational related assistance grants which is offset against the expenditures recognized for those grants and is included in Selling and Marketing expense in the accompanying condensed consolidated statement of income (loss) for the three and six months ended August 3, 2024.

v3.24.3
Share-Based Compensation
 6 Months Ended
Aug. 03, 2024
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation

Note 13 – Share-Based Compensation

We have one equity incentive plan from which we are authorized to grant equity awards, the AstroNova, Inc. 2018 Equity Incentive Plan (the “2018 Plan”). The 2018 Plan provides for, among other things, the issuance of awards, including incentive stock options, non-qualified stock options, stock appreciation rights, time-based restricted stock units (“RSUs”), or performance-based restricted stock units (“PSUs”) and restricted stock awards (“RSAs”). At the June 6, 2023 annual meeting of shareholders, the 2018 Plan was amended to increase the number of shares of our common stock available for issuance by 600,000, bringing the total number of shares available for issuance under the 2018 Plan from 950,000 to 1,550,000. Under the 2018 Plan, we may also issue an additional number of shares equal to the number of shares subject to outstanding awards under our prior 2015 Equity Incentive Plan that are forfeited, canceled, satisfied without the issuance of stock, otherwise terminated (other than by exercise), or, for shares of stock issued pursuant to any unvested award, that are reacquired by us at not more than the grantee’s purchase price (other than by exercise). Under the 2018 Plan, all awards to employees generally have a minimum vesting period of one year. Options granted under the 2018 Plan must be issued at an exercise price of not less than the fair market value of our common stock on the date of grant and expire after ten years. Under the 2018 Plan, there were 123,696 unvested RSUs;125,627 unvested PSUs; and options to purchase an aggregate of 130,500 shares outstanding as of August 3, 2024.

In addition to the 2018 Plan, we previously granted equity awards under our 2015 Equity Incentive Plan (the “2015 Plan”) and our 2007 Equity Incentive Plan (the “2007 Plan”). No new awards may be issued under either the 2007 Plan or 2015 Plan, but outstanding awards will continue to be governed by those plans. As of August 3, 2024, options to purchase an aggregate of 181,649 shares were outstanding under the 2007 Plan and options to purchase an aggregate of 112,600 shares were outstanding under the 2015 Plan.

We also have a Non-Employee Director Annual Compensation Program (the “Program”) under which each non-employee director receives an automatic grant of RSAs on the date of the regular full meeting of the Board of Directors held each fiscal quarter. Under the Program, the number of whole shares to be granted each quarter is equal to 25% of the number calculated by dividing the director’s annual compensation amount, by the fair market value of our stock on such day. On June 11, 2024, the director’s annual compensation amount was adjusted to be $72,800. All RSA’s granted under this Program vest immediately.

Share-based compensation expense was recognized as follows:

 

 

Three Months Ended

 

 

Six Months Ended

 

(In thousands)

 

August 3,
2024

 

 

July 29,
2023

 

 

August 3,
2024

 

 

July 29,
2023

 

Stock Options

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Restricted Stock Awards and Restricted Stock Units

 

 

470

 

 

 

391

 

 

 

789

 

 

 

743

 

Employee Stock Purchase Plan

 

 

11

 

 

 

7

 

 

 

17

 

 

 

11

 

Total

 

$

481

 

 

$

398

 

 

$

806

 

 

$

754

 

 

Stock Options

Aggregated information regarding stock option activity for the six months ended August 3, 2024, is summarized below:

 

 

Number of
Options

 

 

Weighted Average
Exercise Price

 

Outstanding at January 31, 2024

 

 

523,349

 

 

$

15.26

 

Granted

 

 

—

 

 

 

—

 

Exercised

 

 

(65,900

)

 

 

13.86

 

Forfeited

 

 

(27,700

)

 

 

14.91

 

Canceled

 

 

(5,000

)

 

 

13.80

 

Outstanding at August 3, 2024

 

 

424,749

 

 

$

15.51

 

 

Set forth below is a summary of options outstanding at August 3, 2024:

 

Outstanding

 

 

Exercisable

 

Range of
Exercise prices

 

Number
of
Shares

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual Life

 

 

Number
of
Shares

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted
Average
Remaining
Contractual Life

 

$10.01-15.00

 

 

218,274

 

 

$

13.71

 

 

 

2.1

 

 

 

218,274

 

 

$

13.71

 

 

 

2.1

 

$15.01-20.00

 

 

206,475

 

 

$

17.42

 

 

 

3.3

 

 

 

206,475

 

 

$

17.42

 

 

 

3.3

 

 

 

424,749

 

 

$

15.51

 

 

 

2.7

 

 

 

424,749

 

 

$

15.51

 

 

 

2.7

 

 

 

There were no stock options granted in fiscal 2024, or during the first six months of fiscal 2025, and as of August 3, 2024, there was no unrecognized compensation expense related to stock options.

Restricted Stock Units (RSUs), Performance-Based Stock Units (PSUs) and Restricted Stock Awards (RSAs)

Aggregated information regarding RSU, PSU and RSA activity for the six months ended August 3, 2024, is summarized below:

 

 

RSUs, PSUs & RSAs

 

 

Weighted Average
Grant Date Fair Value

 

Outstanding at January 31, 2024

 

 

300,705

 

 

$

12.90

 

Granted

 

 

76,988

 

 

 

17.47

 

Vested

 

 

(82,389

)

 

 

13.79

 

Forfeited

 

 

(45,981

)

 

 

12.63

 

Outstanding at August 3, 2024

 

 

249,323

 

 

$

13.20

 

 

As of August 3, 2024, there was approximately $1.8 million of unrecognized compensation expense related to RSUs, PSUs and RSAs, which is expected to be recognized over a weighted average period of 1.1 years.

Employee Stock Purchase Plan (ESPP)

Our ESPP allows eligible employees to purchase shares of common stock at a 15% discount from fair value on the first or last day of an offering period, whichever is less. A total of 40,000 shares were initially reserved for issuance under the ESPP. During the six months ended August 3, 2024, there were 4,942 shares purchased under the ESPP and there are 20,116 shares remaining available for purchase under the ESPP as of August 3, 2024.
v3.24.3
Income Taxes
 6 Months Ended
Aug. 03, 2024
Income Tax Disclosure [Abstract]  
Income Taxes

Note 14 – Income Taxes

Our effective tax rates are as follows:

 

 

Three Months
Ended

 

 

Six Months
Ended

 

Fiscal 2025

 

 

(522.0

)%

 

 

(24.9

)%

Fiscal 2024

 

 

19.4

%

 

 

21.5

%

We determine our estimated annual effective tax rate at the end of each interim period based on full-year forecasted pre-tax income and facts known at that time. The estimated annual effective tax rate is applied to the year-to-date pre-tax income at the end of each interim period with the cumulative effect of any changes in the estimated annual effective tax rate being recorded in the fiscal quarter in which the change is determined. The tax effect of significant unusual items is reflected in the period in which they occur.

During the three months ended August 3, 2024, we recognized an income tax expense of $261,000. The effective tax rate in this period was directly impacted by the return to provision associated with our fiscal 2023 amended federal tax return which resulted in a $447,000 increase to tax expense. Additional impacts on the effective tax rate included a $162,000 tax benefit related to foreign return to provision differences and a $13,000 tax benefit arising from windfall tax benefits related to our stock. During the three months ended July 29, 2023, we recognized an income tax benefit of $390,000. The effective tax rate in this period was directly impacted by our jurisdictional mix of earnings, a $29,000 tax expense related to foreign return to provision differences and a $20,675 tax arising from windfall tax benefits related to our stock.

During the six months ended August 3, 2024, we recognized an income tax benefit of $173,000. The effective tax rate in this period was directly impacted by a $124,000 tax benefit related to a previous unrecorded reduction in our future income tax payable balance that should have been discretely recognized in the fourth quarter of fiscal year 2024, netted with the current quarter tax expense related to amending our fiscal year 2023 federal tax return. Additional impacts on the effective tax rate include a $162,000 tax benefit related to foreign return to provision differences and an $88,000 tax benefit arising from windfall tax benefits related to our stock. During the six months ended July 29, 2023, we recognized an income tax benefit of $211,000. The effective tax rate in this period was directly impacted by our jurisdictional mix of earnings, a $77,000 tax benefit related to the expiration of the statute of limitations on a previously uncertain tax position, a $49,000 tax benefit arising from windfall tax benefits related to our stock, and a $29,000 tax expense related to foreign return to provision differences.
v3.24.3
Segment Information
 6 Months Ended
Aug. 03, 2024
Segment Reporting [Abstract]  
Segment Information

Note 15 – Segment Information

We report two segments: PI and T&M. We evaluate segment performance based on the segment profit (loss) before corporate expenses.

Summarized below are the Revenue and Segment Operating Profit (Loss) for each reporting segment:

 

 

Three Months Ended

 

 

Six Months Ended

 

 

Revenue

 

 

Segment Operating Profit (Loss)

 

 

Revenue

 

 

Segment Operating Profit (Loss)

 

(In thousands)

 

August 3,
2024

 

 

July 29,
2023

 

 

August 3,
2024

 

 

July 29,
2023

 

 

August 3,
2024

 

 

July 29,
2023

 

 

August 3,
2024

 

 

July 29,
2023

 

PI

 

$

27,165

 

 

$

25,777

 

 

$

2,348

 

 

$

(461

)

 

$

50,350

 

 

$

50,872

 

 

$

5,340

 

 

$

2,055

 

T&M

 

 

13,374

 

 

 

9,747

 

 

 

3,834

 

 

 

1,917

 

 

 

23,150

 

 

 

20,071

 

 

 

5,555

 

 

 

3,989

 

Total

 

$

40,539

 

 

$

35,524

 

 

 

6,182

 

 

 

1,456

 

 

$

73,500

 

 

$

70,943

 

 

 

10,895

 

 

 

6,044

 

Corporate Expenses

 

 

 

 

 

 

 

 

5,121

 

 

 

2,654

 

 

 

 

 

 

 

 

 

8,488

 

 

 

5,780

 

Operating Income (Expense)

 

 

 

 

 

 

 

 

1,061

 

 

 

(1,198

)

 

 

 

 

 

 

 

 

2,407

 

 

 

264

 

Other Income (Expense), net

 

 

 

 

 

 

 

 

(1,111

)

 

 

(809

)

 

 

 

 

 

 

 

 

(1,711

)

 

 

(1,244

)

Income (Loss) Before Income Taxes

 

 

 

 

 

 

 

 

(50

)

 

 

(2,007

)

 

 

 

 

 

 

 

 

696

 

 

 

(980

)

Income Tax Provision (Benefit)

 

 

 

 

 

 

 

 

261

 

 

 

(390

)

 

 

 

 

 

 

 

 

(173

)

 

 

(211

)

Net Income (Loss)

 

 

 

 

 

 

 

$

(311

)

 

$

(1,617

)

 

 

 

 

 

 

 

$

869

 

 

$

(769

)
v3.24.3
Fair Value
 6 Months Ended
Aug. 03, 2024
Fair Value Disclosures [Abstract]  
Fair Value

Note 16 – Fair Value

Assets and Liabilities Not Recorded at Fair Value

Our long-term debt, including the current portion of long-term debt not reflected in the financial statements at fair value, is reflected in the table below:

 

 

August 3, 2024

 

 

Fair Value Measurement

 

 

 

 

(In thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Carrying Value

 

Long-Term debt and related current maturities

 

$

—

 

 

$

—

 

 

$

29,236

 

 

$

29,236

 

 

$

29,290

 

 

 

January 31, 2024

 

 

Fair Value Measurement

 

 

 

 

(In thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Carrying Value

 

Long-Term debt and related current maturities

 

$

—

 

 

$

—

 

 

$

13,026

 

 

$

13,026

 

 

$

12,972

 

 

The fair value of our long-term debt, including the current portion, is estimated by discounting the future cash flows using current interest rates at which similar loans with the same maturities would be made to borrowers with similar credit ratings and is classified as Level 3.

We are currently performing the analysis needed to finalize the determination of the fair values and useful lives of the intangible assets, and the final purchase price for our acquisition of MTEX, including the fair value of the contingent consideration. The fair value of the contingent consideration involves significant inputs not observable in the market and is therefore considered a Level 3 measurement. Refer to Note 3, “Acquisition,” for a discussion of fair value as it relates to our acquisition of MTEX.
v3.24.3
Restructuring
 6 Months Ended
Aug. 03, 2024
Restructuring and Related Activities [Abstract]  
Restructuring

Note 17 - Restructuring

On July 26, 2023, we adopted a restructuring plan for our Product Identification segment. As part of the restructuring plan, we transitioned a portion of the printer manufacturing within our Product Identification segment from our facilities in Rhode Island to our Astro Machine, Inc. facility located in Illinois. In addition, we ceased selling certain of our older, lower-margin or low-volume Product Identification segment products. As part of the restructuring plan, we consolidated certain of our international Product Identification sales and distribution facilities, streamlined our channel partner network, and also made targeted reductions to our workforce. As of January 31, 2024, we completed this plan.

As a result of the adoption and implementation of our Product Identification segment restructuring plan, in the second quarter of our fiscal year 2024 we recognized pre-tax restructuring charge of $2.7 million, comprised primarily of non-cash charges related to inventory write-offs associated with product curtailment and discontinuation and facility exit related costs, and cash charges related to severance-related costs. Below is a summary of the restructuring costs and liability by type as of July 29, 2023.

 




(in thousands)

 

Restructuring
 Costs

 

 

Amounts paid in quarter ended
 July 29, 2023

 

 

Restructuring
 Liability

 

Severance and Employee Related Costs

 

$

611

 

 

$

(40

)

 

$

571

 

Inventory Write-Off

 

 

1,991

 

 

 

—

 

 

 

—

 

Facility Exit and Other Restructuring Costs

 

49

 

 

 

—

 

 

 

—

 

Total

 

$

2,651

 

 

$

(40

)

 

$

571

 

 

The restructuring liability was included in other accrued expenses in the condensed consolidated balance sheet as of July 29, 2023, and was paid by the end of fiscal 2024.

The following table summarizes restructuring costs included in the accompanying condensed consolidated statement of income (loss) for the three and six months ended July 29, 2023:

 

 

 

 

 

(in thousands)

 

 

 

Cost of Revenue

 

$

2,096

 

Operating Expenses:

 

 

 

Selling & Marketing

 

443

 

Research & Development

 

29

 

General & Administrative

 

83

 

Total

 

$

2,651

 

Product Retrofit Program

In connection with our fiscal 2024 restructuring plan, we identified the need to address quality and reliability issues in certain models of our PI printers as a result of faulty ink provided by one of our larger suppliers. In order to remedy these issues and maintain solid customer relationships, during the second quarter of fiscal 2024, we initiated a program to retrofit all of the printers sold to our customers that were affected by the faulty ink.

Upon initiating this program, we identified approximately 150 printers sold to our customers that were affected by the faulty ink. We began to work with our customers to either repair or replace the affected printers and did this on a gradual basis beginning in the second quarter of fiscal 2024 through March 2024. The initial estimated costs associated with this program at July 29, 2023 was $0.9 million, which included the cost of parts, labor and travel. Those costs were recognized and recorded in the second quarter of fiscal 2024 and are included in cost of revenue in the accompanying consolidated statement of income (loss) for the three and six months ended July 29, 2023.

 

(in thousands)

 

 

Provision for Product Retrofit Program

$

852

 

Cost of Repairs and Replacements incurred through July 29, 2023

 

(149

)

Balance at July 29, 2023

$

703

 

This program was concluded by the end of fiscal 2024 and there was no balance in the related liability for this program at January 31, 2024.
v3.24.3
Summary of Significant Accounting Policies Update (Policies)
 6 Months Ended
Aug. 03, 2024
Accounting Policies [Abstract]  
Principles of Consolidation

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of AstroNova, Inc. and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation.

Recent Accounting Pronouncements Not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

On March 6, 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports on Form 10-K including, among other things, material climate-related risks and their impact; activities to mitigate or adapt to material climate-related risks; governance and oversight of climate-related risks; material climate-related targets or goals and their financial impact; and qualitative and quantitative disclosures regarding greenhouse gas emissions. The final rules follow a phase-in timeline and would begin to apply prospectively to our fiscal year beginning February 1, 2027. In April 2024, the SEC voluntarily stayed the effectiveness of the rules pending completion of judicial review of the consolidated challenges to the final rules. We are currently monitoring the legal challenges and evaluating the potential impact of these rules on our consolidated financial statements and disclosures.

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”) to enhance the transparency and decision usefulness of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 modifies the requirement for income tax disclosures to include (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. We will adopt this standard beginning with our fiscal year ending January 31, 2026. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

In November 2023, the FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (CODM), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 also requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss. Public entities will be required to provide all annual disclosures currently required by ASU 2023-07 in interim periods. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. We will adopt this standard beginning with our fiscal year ending January 31, 2025, and for interim periods beginning with our first quarter of fiscal 2026. We are currently evaluating the new disclosure requirements of ASU 2023-07 and do not expect the adoption of this guidance to have a material impact on our consolidated financial statements or disclosures.

No other new accounting pronouncements, issued or effective during the first six months of the current year, have had or are expected to have a material impact on our consolidated financial statements.

v3.24.3
Acquisition (Tables)
 6 Months Ended
Aug. 03, 2024
Business Combinations [Abstract]  
Schedule of Fair Value of the Consideration Transferred as of the Acquisition Closing Date

A summary of the fair value of the consideration transferred as of the acquisition closing date is presented in the table below:

(In thousands)

 

 

 

Cash Paid at Closing

 

$

18,732

 

Holdback Amount (a)

 

 

742

 

Fair Value of the Earnout

 

 

1,619

 

Total Purchase Price

 

$

21,093

 

 

 

 

 

 

a)
The holdback amount is expected to be paid out in full over the next two years.
Summary of Purchase Price of Acquisition Allocated on Basis of Fair Value

(In thousands)

 

 

 

Cash

 

$

364

 

Accounts Receivable

 

 

3,989

 

Inventory

 

 

3,807

 

Prepaid Expenses and Other Current Assets

 

 

301

 

Property, Plant and Equipment

 

 

4,802

 

Other Long-Term Assets

 

 

5,154

 

Identifiable Intangible Assets

 

 

9,556

 

Goodwill

 

 

10,629

 

Accounts Payable and Other Current Liabilities

 

 

(4,225

)

Debt Assumed

 

 

(7,918

)

Other Long-Term Liabilities

 

 

(5,366

)

Total Purchase Price

 

$

21,093

 
Summary of Fair Value of the Acquired Identifiable Intangible Assets and Related Estimated Useful Lives

The following table reflects the preliminary fair value of the acquired identifiable intangible asset and related estimated useful lives:

(In thousands)

 

Fair
Value

 

 

Useful Life
(years)

 

Customer Relations

 

$

8,786

 

 

 

10

 

Trademarks/Tradenames

 

 

488

 

 

 

3

 

Internally Developed Software

 

 

282

 

 

 

6

 

Total

 

$

9,556

 

 

 

 
Summary of Revenue and Earnings Before Taxes

The amounts of revenue and earnings before taxes attributable to MTEX and included in our consolidated statements of income (loss) for the three and six months ended August 3, 2024 were as follows:

 

 

Three Months Ended

 

Six Months Ended

(In thousands)

 

August 3,
2024

 

 

 

August 3,
2024

 

 

Revenue

 

$

768

 

 

 

$

768

 

 

Earnings (Loss) before Taxes

 

$

(1,754

)

 

 

$

(1,754

)

 
v3.24.3
Revenue Recognition (Tables)
 6 Months Ended
Aug. 03, 2024
Revenue from Contract with Customer [Abstract]  
Summary of Revenues Disaggregated by Primary Geographic Markets and Major Product Type

Revenues disaggregated by primary geographic markets and major product types are as follows:

Primary geographical markets

 

 

Three Months Ended

 

 

Six Months Ended

 

(In thousands)

 

August 3, 2024

 

 

July 29, 2023*

 

 

August 3, 2024

 

 

July 29, 2023*

 

United States

 

$

23,777

 

 

$

20,124

 

 

$

43,341

 

 

$

40,820

 

Europe

 

 

10,222

 

 

 

9,933

 

 

 

19,192

 

 

 

19,796

 

Canada

 

 

2,741

 

 

 

2,289

 

 

 

4,500

 

 

 

4,169

 

Central and South America

 

 

1,336

 

 

 

1,024

 

 

 

2,534

 

 

 

2,224

 

Asia

 

 

2,080

 

 

 

1,779

 

 

 

3,265

 

 

 

3,250

 

Other

 

 

383

 

 

 

375

 

 

 

668

 

 

 

684

 

Total Revenue

 

$

40,539

 

 

$

35,524

 

 

$

73,500

 

 

$

70,943

 

*Certain amounts have been reclassified to conform to the current year's presentation.

Major product types

 

 

Three Months Ended

 

 

Six Months Ended

 

(In thousands)

 

August 3, 2024

 

 

July 29, 2023

 

 

August 3, 2024

 

 

July 29, 2023

 

Hardware

 

$

12,359

 

 

$

11,268

 

 

$

21,234

 

 

$

22,934

 

Supplies

 

 

22,344

 

 

 

19,700

 

 

 

40,977

 

 

 

38,772

 

Service and Other

 

 

5,836

 

 

 

4,556

 

 

 

11,289

 

 

 

9,237

 

Total Revenue

 

$

40,539

 

 

$

35,524

 

 

$

73,500

 

 

$

70,943

 

 
v3.24.3
Net Income (Loss) Per Common Share (Tables)
 6 Months Ended
Aug. 03, 2024
Earnings Per Share [Abstract]  
Summary of Basic and Diluted Net Income (Loss) Per Share A reconciliation of the shares used in calculating basic and diluted net income (loss) per share is as follows:

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

August 3, 2024

 

 

July 29, 2023

 

 

August 3, 2024

 

 

July 29, 2023

 

 

Weighted Average Common Shares Outstanding – Basic

 

 

7,515,706

 

 

 

7,420,135

 

 

 

7,489,223

 

 

 

7,396,200

 

 

Effect of Dilutive Options, Restricted Stock Awards and
   Restricted Stock Units

 

 

—

 

(1)

 

—

 

(2)

 

128,183

 

 

 

—

 

(2)

Weighted Average Common Shares Outstanding – Diluted

 

 

7,515,706

 

 

 

7,420,135

 

 

 

7,617,406

 

 

 

7,396,200

 

 
v3.24.3
Intangible Assets (Tables)
 6 Months Ended
Aug. 03, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Fair Value of Acquired Identifiable Intangible Assets and Related Estimated Useful Lives

Intangible assets are as follows:

 

 

August 3, 2024

 

 

January 31, 2024

 

(In thousands)

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Currency
Translation
Adjustment

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Currency
Translation
Adjustment

 

 

Net
Carrying
Amount

 

RITEC:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Customer Contract
       Relationships

 

$

2,830

 

 

$

(1,722

)

 

$

—

 

 

$

1,108

 

 

$

2,830

 

 

$

(1,689

)

 

$

—

 

 

$

1,141

 

TrojanLabel:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Distributor Relations

 

937

 

 

 

(728

)

 

 

26

 

 

 

235

 

 

937

 

 

 

(686

)

 

 

30

 

 

 

281

 

Honeywell:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Customer Contract
       Relationships

 

 

27,773

 

 

 

(13,228

)

 

 

—

 

 

 

14,545

 

 

 

27,773

 

 

 

(12,795

)

 

 

—

 

 

 

14,978

 

Astro Machine:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Customer Contract
      Relationships

 

 

3,060

 

 

 

(1,224

)

 

 

—

 

 

 

1,836

 

 

 

3,060

 

 

 

(918

)

 

 

—

 

 

 

2,142

 

   Trademarks

 

420

 

 

 

(168

)

 

 

—

 

 

 

252

 

 

420

 

 

 

(126

)

 

 

—

 

 

 

294

 

MTEX:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Customer Contract
      Relationships

 

 

8,786

 

 

 

(219

)

 

 

49

 

 

 

8,616

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

   Internally Developed Software

 

 

282

 

 

 

(12

)

 

 

2

 

 

 

272

 

 

 

 

 

 

 

 

 

 

 

 

 

   Trademarks

 

 

488

 

 

 

(40

)

 

 

2

 

 

 

450

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Intangible Assets, net

 

$

44,576

 

 

$

(17,341

)

 

$

79

 

 

$

27,314

 

 

$

35,020

 

 

$

(16,214

)

 

$

30

 

 

$

18,836

 
Summary of Estimated Amortization Expense

Estimated amortization expense for the next five fiscal years is as follows:

 

(In thousands)

 

Remaining
2025

 

 

2026

 

 

2027

 

 

2028

 

 

2029

 

Estimated amortization expense

 

$

1,404

 

 

$

2,808

 

 

$

2,808

 

 

$

2,808

 

 

$

2,245

 
v3.24.3
Inventories (Tables)
 6 Months Ended
Aug. 03, 2024
Inventory Disclosure [Abstract]  
Components of Inventories The components of inventories are as follows:

 

(In thousands)

 

August 3, 2024

 

 

January 31, 2024

 

Materials and Supplies

 

$

38,995

 

 

$

39,078

 

Work-In-Process

 

 

2,095

 

 

 

1,054

 

Finished Goods

 

 

19,989

 

 

 

15,645

 

 

 

61,079

 

 

 

55,777

 

Inventory Reserve

 

 

(10,510

)

 

 

(9,406

)

 

$

50,569

 

 

$

46,371

 
v3.24.3
Property, Plant and Equipment (Tables)
 6 Months Ended
Aug. 03, 2024
Property, Plant and Equipment [Abstract]  
Summary of Property, Plant and Equipment

Property, plant and equipment consist of the following:

 

(In thousands)

 

August 3, 2024

 

 

January 31, 2024

 

Land and Land Improvements

 

$

2,304

 

 

$

2,304

 

Buildings and Leasehold Improvements

 

 

15,355

 

 

 

14,381

 

Machinery and Equipment

 

 

37,177

 

 

 

26,123

 

Computer Equipment and Software

 

 

14,379

 

 

 

14,238

 

Gross Property, Plant and Equipment

 

 

69,215

 

 

 

57,046

 

Accumulated Depreciation

 

 

(50,465

)

 

 

(42,861

)

Net Property Plant and Equipment

 

$

18,750

 

 

$

14,185

 
v3.24.3
Credit Agreement and Long-Term Debt (Tables)
 6 Months Ended
Aug. 03, 2024
Debt Disclosure [Abstract]  
Schedule of Long Term Debt in the Accompanying Condensed Consolidated Balance Sheets

Long-term debt in the accompanying condensed consolidated balance sheets is as follows:

 

(In thousands)

 

August 3,
2024

 

 

January 31,
2024

 

USD Term Loan (7.73% as of August 3, 2024 and 7.56% as
of January 31, 2024); maturity date of August 4, 2027

 

$

10,800

 

 

$

12,150

 

Euro Term Loan (6.94% as of August 3, 2024;
maturity date of August 4, 2027)

 

 

14,638

 

 

 

—

 

MTEX Euro Term Loan (6.022% Fixed Rate as of August 3, 2024;
maturity date of December 21, 2033)

 

 

1,637

 

 

 

—

 

MTEX Euro Government Grant Term Loan (0% as of August 3, 2024;
maturity dates December 2024 - January 2027)

 

 

1,463

 

 

 

—

 

Equipment Loan (7.06% Fixed Rate); maturity date of January 23, 2029

 

 

752

 

 

 

822

 

    Total Debt

 

 

29,290

 

 

 

12,972

 

    Less: Debt Issuance Costs, net of accumulated amortization

 

 

102

 

 

 

80

 

             Current Portion of Debt

 

 

6,513

 

 

 

2,842

 

Long-Term Debt

 

$

22,675

 

 

$

10,050

 
Schedule of Required Principal Payments Remaining on Long Term Debt Outstanding

The schedule of required principal payments remaining during the next five years on long-term debt outstanding as of August 3, 2024 is as follows:

 

(In thousands)

 

 

 

Fiscal 2025, remainder

 

$

3,316

 

Fiscal 2026

 

 

6,263

 

Fiscal 2027

 

 

5,722

 

Fiscal 2028

 

 

12,657

 

Fiscal 2029

 

 

1,332

 

 

$

29,290

 
v3.24.3
Leases (Tables)
 6 Months Ended
Aug. 03, 2024
Leases [Abstract]  
Schedule Of Balance Sheet And Other Information Related To Operating Leases

Balance sheet and other information related to our leases is as follows:

 

Operating Leases (In thousands)

 

Balance Sheet Classification

 

August 3,
2024

 

 

January 31,
2024

 

Lease Assets

 

Right of Use Assets

 

$

1,920

 

 

$

603

 

Lease Liabilities – Current

 

Other Accrued Expenses

 

$

337

 

 

$

233

 

Lease Liabilities – Long Term

 

Lease Liabilities

 

$

1,633

 

 

$

415

 
Schedule Lease Cost Information

Lease cost information is as follows:

 

 

 

 

Three Months
Ended

 

Operating Leases (In thousands)

 

Statement of Income Classification

 

August 3,
2024

 

 

July 29,
2023

 

Operating Lease Costs

 

General and Administrative Expense

 

$

180

 

 

$

127

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months
Ended

 

Operating Leases (In thousands)

 

Statement of Income Classification

 

August 3,
2024

 

 

July 29,
2023

 

Operating Lease Costs

 

General and Administrative Expense

 

$

269

 

 

$

259

 

 

 
Schedule of Maturities Of Lease Liabilities

Maturities of operating lease liabilities are as follows:

 

(In thousands)

 

August 3,
2024

 

Fiscal 2025, remaining

 

$

228

 

Fiscal 2026

 

 

421

 

Fiscal 2027

 

 

376

 

Fiscal 2028

 

 

315

 

Fiscal 2029

 

 

219

 

Thereafter

 

 

905

 

Total Lease Payments

 

 

2,464

 

Less: Imputed Interest

 

 

(494

)

Total Lease Liabilities

 

$

1,970

 
Supplemental Cash Flow Information Related To Leases

Supplemental cash flow information related to leases is as follows:

 

 

Three Months
Ended

 

(In thousands)

 

August 3,
2024

 

 

July 29,
2023

 

Cash paid for operating lease liabilities

 

$

88

 

 

$

85

 

 

Six Months
Ended

 

(In thousands)

 

August 3,
2024

 

 

July 29,
2023

 

Cash paid for operating lease liabilities

 

$

174

 

 

$

177

 

 

 

 

 

 

 

 
v3.24.3
Share-Based Compensation (Tables)
 6 Months Ended
Aug. 03, 2024
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation Expense

Share-based compensation expense was recognized as follows:

 

 

Three Months Ended

 

 

Six Months Ended

 

(In thousands)

 

August 3,
2024

 

 

July 29,
2023

 

 

August 3,
2024

 

 

July 29,
2023

 

Stock Options

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Restricted Stock Awards and Restricted Stock Units

 

 

470

 

 

 

391

 

 

 

789

 

 

 

743

 

Employee Stock Purchase Plan

 

 

11

 

 

 

7

 

 

 

17

 

 

 

11

 

Total

 

$

481

 

 

$

398

 

 

$

806

 

 

$

754

 

 
Aggregated Information Regarding Stock Option Activity

Aggregated information regarding stock option activity for the six months ended August 3, 2024, is summarized below:

 

 

Number of
Options

 

 

Weighted Average
Exercise Price

 

Outstanding at January 31, 2024

 

 

523,349

 

 

$

15.26

 

Granted

 

 

—

 

 

 

—

 

Exercised

 

 

(65,900

)

 

 

13.86

 

Forfeited

 

 

(27,700

)

 

 

14.91

 

Canceled

 

 

(5,000

)

 

 

13.80

 

Outstanding at August 3, 2024

 

 

424,749

 

 

$

15.51

 
Summary of Options Outstanding

Set forth below is a summary of options outstanding at August 3, 2024:

 

Outstanding

 

 

Exercisable

 

Range of
Exercise prices

 

Number
of
Shares

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted-
Average
Remaining
Contractual Life

 

 

Number
of
Shares

 

 

Weighted-
Average
Exercise
Price

 

 

Weighted
Average
Remaining
Contractual Life

 

$10.01-15.00

 

 

218,274

 

 

$

13.71

 

 

 

2.1

 

 

 

218,274

 

 

$

13.71

 

 

 

2.1

 

$15.01-20.00

 

 

206,475

 

 

$

17.42

 

 

 

3.3

 

 

 

206,475

 

 

$

17.42

 

 

 

3.3

 

 

 

424,749

 

 

$

15.51

 

 

 

2.7

 

 

 

424,749

 

 

$

15.51

 

 

 

2.7

 

 
Aggregated Information Regarding RSU, PSU and RSA Activity

Aggregated information regarding RSU, PSU and RSA activity for the six months ended August 3, 2024, is summarized below:

 

 

RSUs, PSUs & RSAs

 

 

Weighted Average
Grant Date Fair Value

 

Outstanding at January 31, 2024

 

 

300,705

 

 

$

12.90

 

Granted

 

 

76,988

 

 

 

17.47

 

Vested

 

 

(82,389

)

 

 

13.79

 

Forfeited

 

 

(45,981

)

 

 

12.63

 

Outstanding at August 3, 2024

 

 

249,323

 

 

$

13.20

 

 
v3.24.3
Income Taxes (Tables)
 6 Months Ended
Aug. 03, 2024
Income Tax Disclosure [Abstract]  
Projected Effective Tax Rates

Our effective tax rates are as follows:

 

 

Three Months
Ended

 

 

Six Months
Ended

 

Fiscal 2025

 

 

(522.0

)%

 

 

(24.9

)%

Fiscal 2024

 

 

19.4

%

 

 

21.5

%
v3.24.3
Segment Information (Tables)
 6 Months Ended
Aug. 03, 2024
Segment Reporting [Abstract]  
Net Sales and Segment Operating Profit (Loss) for Each Reporting Segment

Summarized below are the Revenue and Segment Operating Profit (Loss) for each reporting segment:

 

 

Three Months Ended

 

 

Six Months Ended

 

 

Revenue

 

 

Segment Operating Profit (Loss)

 

 

Revenue

 

 

Segment Operating Profit (Loss)

 

(In thousands)

 

August 3,
2024

 

 

July 29,
2023

 

 

August 3,
2024

 

 

July 29,
2023

 

 

August 3,
2024

 

 

July 29,
2023

 

 

August 3,
2024

 

 

July 29,
2023

 

PI

 

$

27,165

 

 

$

25,777

 

 

$

2,348

 

 

$

(461

)

 

$

50,350

 

 

$

50,872

 

 

$

5,340

 

 

$

2,055

 

T&M

 

 

13,374

 

 

 

9,747

 

 

 

3,834

 

 

 

1,917

 

 

 

23,150

 

 

 

20,071

 

 

 

5,555

 

 

 

3,989

 

Total

 

$

40,539

 

 

$

35,524

 

 

 

6,182

 

 

 

1,456

 

 

$

73,500

 

 

$

70,943

 

 

 

10,895

 

 

 

6,044

 

Corporate Expenses

 

 

 

 

 

 

 

 

5,121

 

 

 

2,654

 

 

 

 

 

 

 

 

 

8,488

 

 

 

5,780

 

Operating Income (Expense)

 

 

 

 

 

 

 

 

1,061

 

 

 

(1,198

)

 

 

 

 

 

 

 

 

2,407

 

 

 

264

 

Other Income (Expense), net

 

 

 

 

 

 

 

 

(1,111

)

 

 

(809

)

 

 

 

 

 

 

 

 

(1,711

)

 

 

(1,244

)

Income (Loss) Before Income Taxes

 

 

 

 

 

 

 

 

(50

)

 

 

(2,007

)

 

 

 

 

 

 

 

 

696

 

 

 

(980

)

Income Tax Provision (Benefit)

 

 

 

 

 

 

 

 

261

 

 

 

(390

)

 

 

 

 

 

 

 

 

(173

)

 

 

(211

)

Net Income (Loss)

 

 

 

 

 

 

 

$

(311

)

 

$

(1,617

)

 

 

 

 

 

 

 

$

869

 

 

$

(769

)
v3.24.3
Fair Value (Tables)
 6 Months Ended
Aug. 03, 2024
Fair Value Disclosures [Abstract]  
Summary of Changes in Fair value of Level 3 Financial Liability

Our long-term debt, including the current portion of long-term debt not reflected in the financial statements at fair value, is reflected in the table below:

 

 

August 3, 2024

 

 

Fair Value Measurement

 

 

 

 

(In thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Carrying Value

 

Long-Term debt and related current maturities

 

$

—

 

 

$

—

 

 

$

29,236

 

 

$

29,236

 

 

$

29,290

 

 

 

January 31, 2024

 

 

Fair Value Measurement

 

 

 

 

(In thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Carrying Value

 

Long-Term debt and related current maturities

 

$

—

 

 

$

—

 

 

$

13,026

 

 

$

13,026

 

 

$

12,972

 
v3.24.3
Restructuring (Tables)
 6 Months Ended
Aug. 03, 2024
Restructuring and Related Activities [Abstract]  
Summary of Restructuring Cost and Liability by Type Below is a summary of the restructuring costs and liability by type as of July 29, 2023.

 




(in thousands)

 

Restructuring
 Costs

 

 

Amounts paid in quarter ended
 July 29, 2023

 

 

Restructuring
 Liability

 

Severance and Employee Related Costs

 

$

611

 

 

$

(40

)

 

$

571

 

Inventory Write-Off

 

 

1,991

 

 

 

—

 

 

 

—

 

Facility Exit and Other Restructuring Costs

 

49

 

 

 

—

 

 

 

—

 

Total

 

$

2,651

 

 

$

(40

)

 

$

571

 
Summarizes Restructuring Costs

The following table summarizes restructuring costs included in the accompanying condensed consolidated statement of income (loss) for the three and six months ended July 29, 2023:

 

 

 

 

 

(in thousands)

 

 

 

Cost of Revenue

 

$

2,096

 

Operating Expenses:

 

 

 

Selling & Marketing

 

443

 

Research & Development

 

29

 

General & Administrative

 

83

 

Total

 

$

2,651

 
Schedule of Product Retrofit Program Liabilities Those costs were recognized and recorded in the second quarter of fiscal 2024 and are included in cost of revenue in the accompanying consolidated statement of income (loss) for the three and six months ended July 29, 2023.

 

(in thousands)

 

 

Provision for Product Retrofit Program

$

852

 

Cost of Repairs and Replacements incurred through July 29, 2023

 

(149

)

Balance at July 29, 2023

$

703

 

This program was concluded by the end of fiscal 2024 and there was no balance in the related liability for this program at January 31, 2024.
v3.24.3
Business and Basis of Presentation - Additional Information (Detail)
 6 Months Ended
Aug. 03, 2024
Segment
Number of Operating Segments 2
v3.24.3
Acquisition - Additional Information (Detail)
$ in Thousands
 6 Months Ended
May 06, 2024
USD ($)
May 06, 2024
EUR (€)
May 04, 2024
Aug. 03, 2024
USD ($)
May 06, 2024
EUR (€)
Jan. 31, 2024
USD ($)
Business Acquisition [Line Items]            
Goodwill       $ 25,368   $ 14,633
Measurement Input Royalty Rate [Member]            
Business Acquisition [Line Items]            
Fair Value Of Intangible Assets Measurement Input 0.0075       0.0075  
Measurement Input, Discount Rate [Member]            
Business Acquisition [Line Items]            
Fair Value Of Intangible Assets Measurement Input 0.1276     0.14 0.1276  
MTEX New Solutions, S.A. [Member]            
Business Acquisition [Line Items]            
Date of acquisition agreement     May 04, 2024      
Payments to Acquire Businesses, Gross 100.00%       100.00%  
Closing date of acquisition May 06, 2024 May 06, 2024        
Purchase price of acquisition $ 18,732 € 17,268,345        
Goodwill 10,629     $ 10,600    
MTEX New Solutions, S.A. [Member] | Fiscal Year 2025            
Business Acquisition [Line Items]            
Potential earn-out payments 1,100       € 1,000,000  
MTEX New Solutions, S.A. [Member] | Fiscal Year 2026            
Business Acquisition [Line Items]            
Potential earn-out payments 1,600       1,500,000  
MTEX New Solutions, S.A. [Member] | Fiscal Year 2027            
Business Acquisition [Line Items]            
Potential earn-out payments 1,600       1,500,000  
MTEX New Solutions, S.A. [Member] | General and Administrative Expense [Member]            
Business Acquisition [Line Items]            
Business Combination, Acquisition Related Costs       $ 600    
MTEX New Solutions, S.A. [Member] | Maximum [Member]            
Business Acquisition [Line Items]            
Additional amount retained to secure indemnification obligations 800 € 731,655        
Potential earn-out payments $ 4,400       € 4,000,000  
v3.24.3
Acquisition - Schedule of Fair Value of the Consideration Transferred as of the Acquisition Closing Date (Details) - May 06, 2024 - MTEX New Solutions, S.A. [Member]
$ in Thousands
EUR (€)
USD ($)
Business Acquisition [Line Items]    
Cash Paid at Closing € 17,268,345 $ 18,732
Holdback Amount   742
Fair Value of the Earnout   1,619
Total Purcahse Price   $ 21,093
v3.24.3
Acquisition - Summary of Purchase Price of Acquisition Allocated on Basis of Fair Value (Detail) - USD ($)
$ in Thousands
Aug. 03, 2024
May 06, 2024
Jan. 31, 2024
Business Acquisition [Line Items]      
Goodwill $ 25,368   $ 14,633
MTEX New Solutions, S.A. [Member]      
Business Acquisition [Line Items]      
Cash   $ 364  
Accounts Receivable   3,989  
Inventory   3,807  
Prepaid Expenses and Other Current Assets   301  
Property, Plant and Equipment   4,802  
Other Long Term Assets   5,154  
Identifiable Intangible Assets   9,556  
Goodwill $ 10,600 10,629  
Accounts Payable and Other Current Liabilities   (4,225)  
Debt Assumed   (7,918)  
Other Long-Term Liabilities   (5,366)  
Total Purchase Price   $ 21,093  
v3.24.3
Acquisition - Summary of Fair Value of the Acquired Identifiable Intangible Assets and Related Estimated Useful Lives (Detail)
$ in Thousands
 6 Months Ended
Aug. 03, 2024
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 9,556
Customer Relationships [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 8,786
Useful Life (Years) 10 years
Trademarks and Trade Names [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 488
Useful Life (Years) 3 years
Internally Developed Software [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 282
Useful Life (Years) 6 years
v3.24.3
Acquisition - Summary of Revenue and Earnings Before Taxes (Detail) - MTEX New Solutions, S.A. [Member] - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Aug. 03, 2024
Business Acquisition Pro Forma Information [Line Items]    
Revenue $ 768 $ 768
Earnings (Loss) before Taxes $ (1,754) $ (1,754)
v3.24.3
Revenue Recognition - Summary of Revenues Disaggregated by Primary Geographic Markets (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Disaggregation of Revenue [Line Items]        
Total Revenue $ 40,539 $ 35,524 $ 73,500 $ 70,943
United States [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 23,777 20,124 43,341 40,820
Europe [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 10,222 9,933 19,192 19,796
Canada [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 2,741 2,289 4,500 4,169
Central and South America [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 1,336 1,024 2,534 2,224
Asia [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 2,080 1,779 3,265 3,250
Other [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue $ 383 $ 375 $ 668 $ 684
v3.24.3
Revenue Recognition - Summary of Revenues Disaggregated by Primary Product Type (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Disaggregation of Revenue [Line Items]        
Total Revenue $ 40,539 $ 35,524 $ 73,500 $ 70,943
Hardware [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 12,359 11,268 21,234 22,934
Supplies [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue 22,344 19,700 40,977 38,772
Service and Other [Member]        
Disaggregation of Revenue [Line Items]        
Total Revenue $ 5,836 $ 4,556 $ 11,289 $ 9,237
v3.24.3
Revenue Recognition - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Aug. 03, 2024
Aug. 03, 2024
Aug. 03, 2024
Jan. 31, 2024
Dec. 31, 2022
Contract liabilities and extended warranties $ 457,000 $ 457,000 $ 457,000 $ 530,000  
Revenue recognized     460,000    
Contract assets balance       1,300,000  
Capitalized contract costs incurred     300,000    
Deferred incremental direct costs net of accumulated amortization balance 1,600,000 1,600,000 1,600,000    
Amortization of incremental direct costs   23,000 42,000    
Deferred incremental direct contract costs reported in other current assets $ 100,000 100,000 $ 100,000    
Capitalized contract costs amounts incurred amortization period 17 years   17 years    
Aerospace Customer [Member]          
Deferred Revenue $ 300,000 300,000 $ 300,000 800,000  
Contract with customer liability         $ 3,250,000
Revenue recognized     500,000 $ 2,400,000  
Deferred incremental direct contract costs reported in other assets $ 1,500,000 $ 1,500,000 $ 1,500,000    
v3.24.3
Net Income (Loss) Per Common Share - Reconciliation of Shares Used in Calculating Basic and Diluted (Detail) - shares
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Weighted Average Common Shares Outstanding – Basic 7,515,706 7,420,135 7,489,223 7,396,200
Effect of Dilutive Options, Restricted Stock Awards and Restricted Stock Units 86,197 74,178 128,183 77,150
Weighted Average Number of Common Shares Outstanding—Diluted 7,515,706 7,420,135 7,617,406 7,396,200
v3.24.3
Net Income (Loss) Per Common Share - Additional Information (Detail) - shares
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Earnings Per Share [Abstract]        
Effect of potentially dilute earnings per share 86,197 74,178 128,183 77,150
Number of common equivalent shares 218,210 226,457 223,011 376,468
v3.24.3
Intangible Assets - Fair Value of Acquired Identifiable Intangible Assets and Related Estimated Useful Lives (Detail) - USD ($)
$ in Thousands
Aug. 03, 2024
Jan. 31, 2024
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 44,576 $ 35,020
Accumulated Amortization (17,341) (16,214)
Currency Translation Adjustment 79 30
Net Carrying Amount 27,314 18,836
Customer Contract Relationships [Member] | Honeywell Asset Purchase and License Agreement [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 27,773 27,773
Accumulated Amortization (13,228) (12,795)
Net Carrying Amount 14,545 14,978
Customer Contract Relationships [Member] | RITEC [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 2,830 2,830
Accumulated Amortization (1,722) (1,689)
Net Carrying Amount 1,108 1,141
Customer Contract Relationships [Member] | MTEX New Solutions, S.A. [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 8,786  
Accumulated Amortization (219)  
Currency Translation Adjustment 49  
Net Carrying Amount 8,616  
Customer Contract Relationships [Member] | Agreement With Astro Machine For Asset Acquisitions [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3,060 3,060
Accumulated Amortization (1,224) (918)
Net Carrying Amount 1,836 2,142
Distributor Relations [Member] | TrojanLabel [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 937 937
Accumulated Amortization (728) (686)
Currency Translation Adjustment 26 30
Net Carrying Amount 235 281
Internally Developed Software [Member] | MTEX New Solutions, S.A. [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 282  
Accumulated Amortization (12)  
Currency Translation Adjustment 2  
Net Carrying Amount 272  
Trademarks [Member] | MTEX New Solutions, S.A. [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 488  
Accumulated Amortization (40)  
Currency Translation Adjustment 2  
Net Carrying Amount 450  
Trademarks [Member] | Agreement With Astro Machine For Asset Acquisitions [Member]    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 420 420
Accumulated Amortization (168) (126)
Net Carrying Amount $ 252 $ 294
v3.24.3
Intangible Assets - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Impairment of Intangible Assets (Excluding Goodwill) [Abstract]        
Impairments of intangible assets     $ 0 $ 0
Amortization expense $ 700,000 $ 600,000 $ 1,100,000 $ 1,200,000
v3.24.3
Intangible Assets - Summary of Estimated Amortization Expense (Detail)
$ in Thousands
Aug. 03, 2024
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]  
Remaining 2025 $ 1,404
2026 2,808
2027 2,808
2028 2,808
2029 $ 2,245
v3.24.3
Inventories - Components of Inventories (Detail) - USD ($)
$ in Thousands
Aug. 03, 2024
Jan. 31, 2024
Inventory Disclosure [Abstract]    
Materials and Supplies $ 38,995 $ 39,078
Work-In-Progress 2,095 1,054
Finished Goods 19,989 15,645
Inventory, Gross 61,079 55,777
Inventory Reserve (10,510) (9,406)
Inventories $ 50,569 $ 46,371
v3.24.3
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($)
$ in Thousands
Aug. 03, 2024
Jan. 31, 2024
Property, Plant and Equipment [Abstract]    
Land and Land Improvements $ 2,304 $ 2,304
Buildings and Leasehold Improvements 15,355 14,381
Machinery and Equipment 37,177 26,123
Computer Equipment and Software 14,379 14,238
Gross Property, Plant and Equipment 69,215 57,046
Accumulated Depreciation (50,465) (42,861)
Net Property Plant and Equipment $ 18,750 $ 14,185
v3.24.3
Property, Plant and Equipment - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Property, Plant and Equipment [Abstract]        
Depreciation expense on property, plant and equipment $ 0.6 $ 0.5 $ 1.1 $ 0.9
v3.24.3
Credit Agreement and Long- Term Debt - Additional Information (Detail)
 1 Months Ended 3 Months Ended 6 Months Ended 33 Months Ended
Aug. 03, 2024
EUR (€)
May 06, 2024
EUR (€)
May 06, 2024
USD ($)
Jan. 31, 2024
USD ($)
Aug. 03, 2024
USD ($)
Jul. 29, 2023
USD ($)
Aug. 03, 2024
USD ($)
Jul. 29, 2023
USD ($)
Apr. 30, 2027
EUR (€)
Apr. 30, 2027
USD ($)
Feb. 01, 2025
USD ($)
Jan. 31, 2025
USD ($)
Aug. 03, 2024
USD ($)
May 06, 2024
USD ($)
Debt Instrument [Line Items]                            
Revolving loan outstanding                         $ 13,000,000  
Interest Expense, Debt         $ 560,000 $ 266,000 $ 793,000 $ 514,000            
Term Loan [Member]                            
Debt Instrument [Line Items]                            
Debt instrument, maturity date   Aug. 04, 2027 Aug. 04, 2027                      
Revolving Line of Credit [Member]                            
Debt Instrument [Line Items]                            
Interest rate             0.50%              
Banc of America Leasing & Capital, LLC [Member] | Equipment Loan Agreement [Member]                            
Debt Instrument [Line Items]                            
Principal amount of debt       $ 800,000                    
Debt instrument, maturity date       Jan. 23, 2029                    
Interest rate       7.06%                    
Periodic payment of debt       $ 16,296                    
Date of first required payment       Feb. 23, 2024                    
Term A-2 Loan [Member]                            
Debt Instrument [Line Items]                            
Debt instrument, maturity date   Aug. 04, 2027 Aug. 04, 2027                      
MTEX Term Loan [Member]                            
Debt Instrument [Line Items]                            
Revolving loan outstanding € 300,000                       400,000  
MTEX Government Grants Term Loan [Member]                            
Debt Instrument [Line Items]                            
Current balance of government grants 1,300,000                       1,500,000  
Maturity period range, start             2024-12              
Maturity period range, end             2027-01              
SOFR [Member] | Revolving Line of Credit [Member]                            
Debt Instrument [Line Items]                            
Interest rate             1.00%              
Federal Funds Effective Swap Rate [Member] | Revolving Line of Credit [Member]                            
Debt Instrument [Line Items]                            
Interest rate             0.50%              
Minimum [Member] | Revolving Line of Credit [Member]                            
Debt Instrument [Line Items]                            
Commitment fee rate             0.15%              
Percentage added to variable rate             0.60%              
Minimum [Member] | EURIBOR Rate [Member] | Revolving Line of Credit [Member]                            
Debt Instrument [Line Items]                            
Interest rate             1.60%              
Minimum [Member] | SOFR [Member] | Revolving Line of Credit [Member]                            
Debt Instrument [Line Items]                            
Interest rate             1.60%              
Maximum [Member] | Revolving Line of Credit [Member]                            
Debt Instrument [Line Items]                            
Commitment fee rate             0.35%              
Percentage added to variable rate             1.50%              
Maximum [Member] | EURIBOR Rate [Member] | Revolving Line of Credit [Member]                            
Debt Instrument [Line Items]                            
Interest rate             2.50%              
Maximum [Member] | SOFR [Member] | Revolving Line of Credit [Member]                            
Debt Instrument [Line Items]                            
Interest rate             2.50%              
Bank of America, N.A. [Member] | Third Amendment Credit Agreement [Member]                            
Debt Instrument [Line Items]                            
Proceeds from long term line of credit | €   € 3,000,000                        
Bank of America, N.A. [Member] | Additional Term Loan Availed [Member]                            
Debt Instrument [Line Items]                            
Principal amount of debt | €   14,000,000                        
Bank of America, N.A. [Member] | Before Amendment To The Credit Agreement [Member]                            
Debt Instrument [Line Items]                            
Principal amount of debt                           $ 12,300,000
Bank of America, N.A. [Member] | Term Loan [Member] | Scenario Forecast [Member]                            
Debt Instrument [Line Items]                            
Debt Instrument, principal Periodic payment                   $ 675,000        
Bank of America, N.A. [Member] | Revolving Line of Credit [Member]                            
Debt Instrument [Line Items]                            
Available line of credit                         17,000,000  
Long term debt weighted average interest rate over a period of time         8.52% 7.95% 8.54% 7.56%            
Bank of America, N.A. [Member] | Revolving Line of Credit [Member] | Third Amendment Credit Agreement [Member] | Scenario Forecast [Member]                            
Debt Instrument [Line Items]                            
Maximum borrowing capacity                     $ 25,000,000 $ 30,000,000    
Bank of America, N.A. [Member] | Revolving Line of Credit [Member] | Before Amendment To The Credit Agreement [Member]                            
Debt Instrument [Line Items]                            
Maximum borrowing capacity                           25,000,000
Bank of America, N.A. [Member] | Revolving Line of Credit [Member] | Other Expense [Member]                            
Debt Instrument [Line Items]                            
Interest Expense, Debt         $ 254,000 $ 333,000 $ 386,000 $ 625,000            
Line of Credit Facility, Commitment Fee Amount         $ 13,000 $ 6,000 $ 25,000 $ 14,000            
Bank of America, N.A. [Member] | Term A-2 Loan [Member] | Scenario Forecast [Member]                            
Debt Instrument [Line Items]                            
Debt Instrument, principal Periodic payment | €                 € 583,333          
Bank of America, N.A. [Member] | Term A-2 Loan [Member] | Third Amendment Credit Agreement [Member]                            
Debt Instrument [Line Items]                            
Proceeds from long term line of credit | € 14,000,000                          
Caixa Central de Credito Agricola Mutuo [Member] | MTEX Term Loan [Member]                            
Debt Instrument [Line Items]                            
Principal amount of debt   1,500,000                       $ 1,600,000
Debt instrument principal and interest payments   € 17,402 $ 18,795                      
Line of Credit Facility, Current Borrowing Capacity € 500,000                       $ 500,000  
Payment terms   requires monthly principal and interest payments totaling EUR 17,402 ($18,795) commencing in October 2024 requires monthly principal and interest payments totaling EUR 17,402 ($18,795) commencing in October 2024                      
Credit line established month and year 2023-12                          
Renewable Period 6 months                          
Debt instrument, maturity date   Dec. 21, 2033 Dec. 21, 2033                      
Interest rate   6.022%                       6.022%
v3.24.3
Credit Agreement and Long- Term Debt - Schedule of Long Term Debt in the Accompanying Condensed Consolidated Balance Sheets (Detail) - USD ($)
$ in Thousands
Aug. 03, 2024
Jan. 31, 2024
Debt Instrument [Line Items]    
Total Debt $ 29,290 $ 12,972
Less: Debt Issuance Costs, net of accumulated amortization 102 80
Current Portion of Debt 6,513 2,842
Long-Term Debt 22,675 10,050
Term Loan Due August 4, 2027 [Member]    
Debt Instrument [Line Items]    
Total Debt 10,800 12,150
Term Loan Due August 4, 2027 [Member] | Euro [Member]    
Debt Instrument [Line Items]    
Total Debt 14,638  
MTEX Euro Term Loan Due December 21, 2033 [Member]    
Debt Instrument [Line Items]    
Total Debt 1,637  
MTEX Euro Government Grant Term Loan Due December 2024 - January 2027 [Member]    
Debt Instrument [Line Items]    
Total Debt 1,463  
Equipment Loan Due January 23, 2029 [Member]    
Debt Instrument [Line Items]    
Total Debt $ 752 $ 822
v3.24.3
Credit Agreement and Long- Term Debt - Schedule of Long Term Debt in the Accompanying Condensed Consolidated Balance Sheets (Parenthetical) (Detail)
 6 Months Ended 12 Months Ended
Aug. 03, 2024
Jan. 31, 2024
Term Loan Due August 4, 2027 [Member]    
Debt Instrument [Line Items]    
Debt instrument, description of variable rate basis USD Term Loan (7.73% as of August 3, 2024 and 7.56% as of January 31, 2024); maturity date of August 4, 2027  
Interest rate 7.73% 7.56%
Debt instrument, maturity date Aug. 04, 2027 Aug. 04, 2027
Term Loan Due August 4, 2027 [Member] | Euro [Member]    
Debt Instrument [Line Items]    
Debt instrument, description of variable rate basis Euro Term Loan (6.94% as of August 3, 2024; maturity date of August 4, 2027)  
Interest rate 6.94%  
Debt instrument, maturity date Aug. 04, 2027  
MTEX Euro Term Loan Due December 21, 2033 [Member]    
Debt Instrument [Line Items]    
Debt instrument, description of variable rate basis MTEX Euro Term Loan (6.022% Fixed Rate as of August 3, 2024; maturity date of December 21, 2033)  
Interest rate 6.022%  
Debt instrument, maturity date Dec. 21, 2033  
MTEX Euro Government Grant Term Loan Due December 2024 - January 2027 [Member]    
Debt Instrument [Line Items]    
Debt instrument, description of variable rate basis MTEX Euro Government Grant Term Loan (0% as of August 3, 2024; maturity dates December 2024 - January 2027)  
Interest rate (0.00%)  
MTEX Euro Government Grant Term Loan Due December 2024 - January 2027 [Member] | Minimum [Member]    
Debt Instrument [Line Items]    
Debt instrument, maturity date Dec. 31, 2024  
MTEX Euro Government Grant Term Loan Due December 2024 - January 2027 [Member] | Maximum [Member]    
Debt Instrument [Line Items]    
Debt instrument, maturity date Jan. 31, 2027  
Equipment Loan Due January 23, 2029 [Member]    
Debt Instrument [Line Items]    
Interest rate 7.06%  
Debt instrument, maturity date Jan. 23, 2029  
v3.24.3
Credit Agreement and Long- Term Debt - Schedule of Required Principal Payments Remaining on Long Term Debt Outstanding (Detail) - Term Loan [Member]
$ in Thousands
Aug. 03, 2024
USD ($)
Debt Instrument [Line Items]  
Fiscal 2025, remainder $ 3,316
Fiscal 2026 6,263
Fiscal 2027 5,722
Fiscal 2028 12,657
Fiscal 2029 1,332
Long-term Debt $ 29,290
v3.24.3
Royalty Obligation - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jan. 31, 2018
Aug. 03, 2024
Aug. 03, 2024
Jan. 31, 2024
Guaranteed Minimum Royalty Payments     $ 11,900,000  
Royalty Obligation, Current   $ 1,575,000 1,575,000 $ 1,700,000
Royalty Obligation Non Current   1,663,000 1,663,000 2,093,000
Accrued Royalties, Current, Excess Royalty Payment Due   798,000 798,000 935,000
Honeywell Asset Purchase and License Agreement [Member]        
Payment Term Period 10 years      
Minimum Royalty Payment Obligation $ 15,000,000      
Royalty Obligation, Current   1,400,000 1,400,000  
Royalty Obligation Non Current   1,200,000 1,200,000  
Excess Royalty Payments   700,000 1,300,000  
Accrued Royalties, Current, Excess Royalty Payment Due   1,400,000 1,400,000  
Accrued Royalties Current Excess Royalty Payments Due   800,000 800,000  
Royalty guarantee commitment amount due current   700,000 700,000 600,000
Royalty expense     200,000 $ 200,000
Honeywell Asset Purchase and License Agreement [Member] | Royalty Payments Due Remainder of Fiscal Year [Member]        
Royalty guarantee commitement amount   100,000 100,000  
Honeywell Asset Purchase and License Agreement [Member] | Royalty Payments Due In Next Twelve Months [Member]        
Royalty guarantee commitement amount   200,000 200,000  
Honeywell Asset Purchase and License Agreement [Member] | Royalty Payments Due Year Two [Member]        
Royalty guarantee commitement amount   233,000 233,000  
Honeywell Asset Purchase and License Agreement [Member] | Royalty Payments Due Year Three [Member]        
Royalty guarantee commitement amount   233,000 233,000  
Honeywell Asset Purchase and License Agreement [Member] | Royalty Payments Due Year Four [Member]        
Royalty guarantee commitement amount   $ 234,000 234,000  
New Honeywell Asset Purchase and License Agreement [Member]        
Excess Royalty Payments     $ 100,000  
v3.24.3
Leases - Schedule Of Balance Sheet And Other Information Related To Operating Leases (Detail) - USD ($)
$ in Thousands
Aug. 03, 2024
Jan. 31, 2024
Operating Leases [Abstract]    
Lease Assets $ 1,920 $ 603
Lease Liabilities - Current 337 233
Lease Liabilities - Long Term $ 1,633 $ 415
v3.24.3
Leases - Lease Cost Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
General and Administrative Expense [Member]        
Operating Lease Costs $ 180 $ 127 $ 269 $ 259
v3.24.3
Leases - Maturities of lease liabilities (Detail)
$ in Thousands
Aug. 03, 2024
USD ($)
Leases [Abstract]  
Fiscal 2025, remaining $ 228
Fiscal 2026 421
Fiscal 2027 376
Fiscal 2028 315
Fiscal 2029 219
Thereafter 905
Total Lease Payments 2,464
Less: Imputed Interest (494)
Total Lease Liabilities $ 1,970
v3.24.3
Leases - Additional Information (Detail)
Aug. 03, 2024
Leases [Abstract]  
Operating Lease, Weighted Average Remaining Lease Term 7 years 3 months 18 days
Operating Lease, Weighted Average Discount Rate, Percent 5.90%
v3.24.3
Leases - Supplemental cash flow information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Cash paid for amounts included in the measurement of lease liabilities [Abstract]        
Cash paid for operating lease liabilities $ 88 $ 85 $ 174 $ 177
v3.24.3
Government Grants - Additional Information (Details) - USD ($)
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Aug. 03, 2024
Jan. 31, 2024
Government Grants [Abstract]      
Grant deferred revenue $ 1,476,000 $ 1,476,000 $ 0
Grant revenue recognized included in depreciation expense 100,000 100,000  
Grant revenue recognized included in selling and marketing expense 300,000 300,000  
Contingencies associated with the government grants $ 0 $ 0  
v3.24.3
Share-Based Compensation - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 11, 2024
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Jan. 31, 2024
Jun. 06, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares outstanding   424,749   424,749   523,349  
Number of options granted       0   0  
Annual compensation amount   $ 481,000 $ 398,000 $ 806,000 $ 754,000    
Reservation of shares under Stock Purchase Plan       40,000      
Employee Stock Purchase Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Employee Stock Purchase Plan discount rate       15.00%      
2007 Equity Incentive Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares outstanding   181,649   181,649      
2018 Equity Incentive Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares outstanding   130,500   130,500      
Shares available for grant under the Plan             600,000
2018 Equity Incentive Plan [Member] | Minimum [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Shares available for grant under the Plan             950,000
2018 Equity Incentive Plan [Member] | Maximum [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Shares available for grant under the Plan             1,550,000
2022 Employee Stock Purchase Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Shares available for grant under the Plan   20,116   20,116      
Prior Employee Stock Purchase Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Shares purchase under Employee Stock Purchase Plan       4,942      
Stock Options [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Unrecognized compensation expense related to options   $ 0   $ 0      
Restricted Stock Units (RSUs) [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Unrecognized compensation expense to be recognized, Weighted average period       1 year 1 month 6 days      
Unrecognized compensation expense related to RSUs and RSAs   $ 1,800,000   $ 1,800,000      
Restricted Stock Units (RSUs) [Member] | 2018 Equity Incentive Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of unvested shares   123,696   123,696      
RSA [Member] | 2015 Equity Incentive Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of shares outstanding   112,600   112,600      
Performance Based RSUs [Member] | 2018 Equity Incentive Plan [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Number of unvested shares   125,627   125,627      
Restricted Stock Award [Member]              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Percentage of number of shares granted       25.00%      
Annual compensation amount $ 72,800            
v3.24.3
Share-Based Compensation - Share-Based Compensation Expense (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Share-based Compensation [Abstract]        
Stock Options $ 0 $ 0 $ 0 $ 0
Restricted Stock Awards and Restricted Stock Units 470 391 789 743
Employee Stock Purchase Plan 11 7 17 11
Total $ 481 $ 398 $ 806 $ 754
v3.24.3
Share-Based Compensation - Aggregated Information Regarding Stock Option Activity (Detail) - $ / shares
 6 Months Ended 12 Months Ended
Aug. 03, 2024
Jan. 31, 2024
Share-based Compensation [Abstract]    
Beginning balance, Number of Options 523,349  
Granted, Number of Options 0 0
Exercised, Number of Options (65,900)  
Forfeited, Number of Options (27,700)  
Canceled, Number of Options (5,000)  
Ending balance, Number of Options 424,749 523,349
Beginning balance, Weighted-Average Exercise Price $ 15.26  
Granted, Weighted-Average Exercise Price 0  
Exercised, Weighted-Average Exercise Price 13.86  
Forfeited, Weighted-Average Exercise Price 14.91  
Cancelled, Weighted-Average Exercise Price 13.8  
Ending balance, Weighted-Average Exercise Price $ 15.51 $ 15.26
v3.24.3
Share-Based Compensation - Summary of Options Outstanding (Detail) - $ / shares
 6 Months Ended
Aug. 03, 2024
Jan. 31, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Number of shares outstanding, total 424,749 523,349
Outstanding, Weighted Average Exercise Price $ 15.51  
Outstanding Remaining Contractual Life 2 years 8 months 12 days  
Number of shares exercisable, total 424,749  
Exercisable, Weighted Average Exercise Price $ 15.51  
Exercisable Remaining Contractual Life 2 years 8 months 12 days  
$10.01 - $15.00 [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding Range of Exercise prices, Lower Limit $ 10.01  
Outstanding Range of Exercise prices, Upper Limit $ 15  
Outstanding, Number of shares 218,274  
Outstanding, Weighted Average Exercise Price $ 13.71  
Outstanding Remaining Contractual Life 2 years 1 month 6 days  
Exercisable, Number of shares 218,274  
Exercisable, Weighted Average Exercise Price $ 13.71  
Exercisable Remaining Contractual Life 2 years 1 month 6 days  
$15.01 - $20.00 [Member]    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Outstanding Range of Exercise prices, Lower Limit $ 15.01  
Outstanding Range of Exercise prices, Upper Limit $ 20  
Outstanding, Number of shares 206,475  
Outstanding, Weighted Average Exercise Price $ 17.42  
Outstanding Remaining Contractual Life 3 years 3 months 18 days  
Exercisable, Number of shares 206,475  
Exercisable, Weighted Average Exercise Price $ 17.42  
Exercisable Remaining Contractual Life 3 years 3 months 18 days  
v3.24.3
Share-Based Compensation - Aggregated Information Regarding RSU, PSU and RSA Activity (Detail) - Restricted Stock Award Preferred Stock Unit And Restricted Stock Unit [Member]
 6 Months Ended
Aug. 03, 2024
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Beginning balance, Outstanding Restricted Stock Units and Restricted Stock Awards | shares 300,705
Granted, Restricted Stock Units and Restricted Stock Awards | shares 76,988
Vested, Restricted Stock Units and Restricted Stock Awards | shares (82,389)
Forfeited, Restricted Stock Units and Restricted Stock Awards | shares (45,981)
Ending balance, Outstanding Restricted Stock Units and Restricted Stock Awards | shares 249,323
Beginning balance, Weighted Average Grant Date Fair Value | $ / shares $ 12.9
Granted, Weighted Average Grant Date Fair Value | $ / shares 17.47
Vested, Weighted Average Grant Date Fair Value | $ / shares 13.79
Forfeited, Weighted Average Grant Date Fair Value | $ / shares 12.63
Ending balance, Weighted Average Grant Date Fair Value | $ / shares $ 13.2
v3.24.3
Income Taxes - Projected Effective Tax Rates (Detail)
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Income Tax Disclosure [Abstract]        
Effective tax rates for income from continuing operations (522.00%) 19.40% (24.90%) (21.50%)
v3.24.3
Income Taxes - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Jul. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Income Tax Disclosure [Abstract]        
Income tax expense (benefit) $ 261,000 $ (390,000) $ (173,000) $ (211,000)
Tax expenses benefits resulting from provisional adjustments (13,000) 20,675 (88,000) (49,000)
Effective income tax reconciliation tax benefit related to expiration of statute of limitations on previously uncertain tax positions       (77,000)
Return to provision associated with amended federal tax return resulted in increase to tax expense 447,000      
Effective income tax reconciliation benefit related to a previously unrecorded reduction in our future income tax payable balance     124,000  
Effective income tax reconciliation tax expense related to foreign return to provision differences $ (162,000) $ 29,000 $ (162,000) $ 29,000
v3.24.3
Segment Information - Net Sales and Segment Operating Profit (Loss) for Each Reporting Segment (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Aug. 03, 2024
Apr. 27, 2024
Jul. 29, 2023
Apr. 29, 2023
Aug. 03, 2024
Jul. 29, 2023
Segment Reporting Information [Line Items]            
Revenue $ 40,539,000   $ 35,524,000   $ 73,500,000 $ 70,943,000
Corporate Expenses 5,121,000   2,654,000   8,488,000 5,780,000
Operating Income (Expense) 1,061,000   (1,198,000)   2,407,000 264,000
Other Income (Expense), net (1,111,000)   (809,000)   (1,711,000) (1,244,000)
Income (Loss) Before Income Taxes (50,000)   (2,007,000)   696,000 (980,000)
Income Tax Provision (Benefit) 261,000   (390,000)   (173,000) (211,000)
Net Income (Loss) (311,000) $ 1,181,000 (1,617,000) $ 848,000 869,000 (769,000)
PI [Member]            
Segment Reporting Information [Line Items]            
Revenue 27,165,000   25,777,000   50,350,000 50,872,000
T&M [Member]            
Segment Reporting Information [Line Items]            
Revenue 13,374,000   9,747,000   23,150,000 20,071,000
Operating Segments [Member]            
Segment Reporting Information [Line Items]            
Operating Income (Expense) 6,182,000   1,456,000   10,895,000 6,044,000
Operating Segments [Member] | PI [Member]            
Segment Reporting Information [Line Items]            
Operating Income (Expense) 2,348,000   (461,000)   5,340,000 2,055,000
Operating Segments [Member] | T&M [Member]            
Segment Reporting Information [Line Items]            
Operating Income (Expense) 3,834,000   1,917,000   5,555,000 3,989,000
Corporate Expenses [Member]            
Segment Reporting Information [Line Items]            
Corporate Expenses $ 5,121,000   $ 2,654,000   $ 8,488,000 $ 5,780,000
v3.24.3
Fair Value - Schedule of Company's Long-Term Debt Including the Current Portion Not Reflected in Financial Statements at Fair Value (Detail) - USD ($)
$ in Thousands
Aug. 03, 2024
Jan. 31, 2024
Fair Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-Term debt and related current maturities $ 29,236 $ 13,026
Fair Value [Member] | Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-Term debt and related current maturities 29,236 13,026
Carrying Value [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-Term debt and related current maturities $ 29,290 $ 12,972
v3.24.3
Restructuring - Additional Information (Detail)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 29, 2023
USD ($)
Aug. 03, 2024
Printer
Jul. 29, 2023
USD ($)
Restructuring Cost and Reserve [Line Items]      
Pre-tax restructuring $ 2,651   $ 2,651
Balance in restructuring liability 571   571
Product Retrofit Program [Member]      
Restructuring Cost and Reserve [Line Items]      
Number of printers sold to customers | Printer   150  
Expected restructuring expense 900    
Restructuring, Incurred Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]   Cost of Revenue  
Severance and Related Costs [Member]      
Restructuring Cost and Reserve [Line Items]      
Pre-tax restructuring 611    
Balance in restructuring liability 571   $ 571
PI Segment Restructuring Plan [Member]      
Restructuring Cost and Reserve [Line Items]      
Pre-tax restructuring $ 2,700    
v3.24.3
Restructuring - Summary of Restructuring Cost and Liability by Type (Detail)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 29, 2023
USD ($)
Jul. 29, 2023
USD ($)
Restructuring Cost and Reserve [Line Items]    
Restructuring Costs $ 2,651 $ 2,651
Amounts paid (40)  
Restructuring Liability 571 571
Severance and Employee Related Costs [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring Costs 611  
Amounts paid (40)  
Restructuring Liability 571 $ 571
Inventory Write-Off [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring Costs 1,991  
Facility Exit and Other Restructuring Costs [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring Costs $ 49  
v3.24.3
Restructuring - Summarizes Restructuring Costs (Detail) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 29, 2023
Jul. 29, 2023
Restructuring Cost and Reserve [Line Items]    
Restructuring Costs $ 2,651 $ 2,651
Cost of Revenue [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring Costs 2,096 2,096
Selling & Marketing [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring Costs 443 443
Research & Development [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring Costs 29 29
General & Administrative [Member]    
Restructuring Cost and Reserve [Line Items]    
Restructuring Costs $ 83 $ 83
v3.24.3
Restructuring - Schedule of Restructuring Balance Related Liabilities (Detail)
$ in Thousands
 3 Months Ended 6 Months Ended
Jul. 29, 2023
USD ($)
Jul. 29, 2023
USD ($)
Restructuring Cost and Reserve [Line Items]    
Cost of Repairs and Replacements incurred through July 29, 2023 $ (40)  
Product Retrofit Program [Member] | Cost of Revenue [Member]    
Restructuring Cost and Reserve [Line Items]    
Provision for Product Retrofit Program 852 $ 852
Cost of Repairs and Replacements incurred through July 29, 2023 (149) (149)
Balance at July 29, 2023 $ 703 $ 703