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

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 22, 2018

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

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
 	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
 	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
 	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
 	☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

ITEM 2.02	RESULTS OF OPERATIONS AND FINANCIAL CONDITION.	
On August 22, 2018, we issued a press release reporting the financial results for our fiscal second quarter ended July 28, 2018. A copy of the press release relating to that announcement, dated August 22, 2018, is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information contained in Item 2.02 of this report and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
 
ITEM 9.01	FINANCIAL STATEMENTS AND EXHIBITS.	
 
(d)	Exhibits	

	Exhibit No.	  		Exhibit	
			
99.1	  	Press Release Dated August 22, 2018		
 
2

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

	 		 	ASTRONOVA, INC.	
				
Dated: August 22, 2018	 		 	By:	 	/s/ David S. Smith	
	 		 		 	David S. Smith	
	 		 		 	Vice President, Treasurer and Chief Financial Officer	
 
3

Exhibit 99.1

	  	News Release	
Contact:
Scott Solomon
Senior Vice President
Sharon Merrill Associates
(617) 542-5300
ALOT@investorrelations.com
AstroNova Announces Financial Results for the
Second Quarter of Fiscal 2019
Board of Directors Declares Regular Quarterly Cash Dividend of
$0.07 Per Share
Second Quarter Fiscal 2019 Achievements (all comparisons with second quarter fiscal 2018)
 
 	•	 	Revenue of $33.8 million, up 23 percent	
 
 	•	 	Operating income of $2.2 million, up 130 percent	
 
 	•	 	Operating margin of 6.4 percent, up 300 basis points	
 
 	•	 	Diluted EPS of $0.17 per share, up 55 percent	
 
 	•	 	Bookings of $35.8 million, up 29 percent	
 
 	•	 	Backlog of $24.5 million at July 28, 2018, up 30 percent	
West Warwick, R.I. – August  22, 2018 – AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2019 second quarter ended July 28, 2018.
“Our strong second-quarter performance was highlighted by record sales and improved operating expense leverage that helped to generate significant increases in operating income and earnings per share,” said President and CEO Greg Woods. “Our Test & Measurement segment led the way, with top-line growth of more than 80 percent helped by contributions from the Honeywell product printer line in our Aerospace business unit and new ToughWriter contracts.

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

			
	  	News Release	
 
“Revenue in the Product Identification segment was up approximately 5 percent from the second quarter of last year, with contributions from both our tabletop and commercial printing product lines,” Woods said.
Revenues in both the domestic and international channels increased in the quarter. Domestic revenues were $20.0 million, representing an increase of 16.3 percent from the second quarter of fiscal 2018, while revenues through international channels were $13.8 million, up 34.0 percent over the prior year.
Second Quarter 2019 Operating Results
Total revenue was $33.8 million, a 23 percent increase over the prior year.
Gross profit was $13.4 million, or 39.6 percent of revenue, compared with $10.3 million, or 37.3 percent of revenue, for the prior year, driven by revenue growth and product mix.
Operating expenses were $11.2 million compared with $9.3 million in the prior-year period, primarily reflecting the Honeywell intangible amortization, costs associated with increased selling and marketing initiatives, and costs associated with the integration of the Honeywell printer line into the West Warwick, Rhode Island manufacturing facility. As a percentage of revenue, operating expenses declined approximately 70 basis points from the same quarter last year and more than 120 basis points on a sequential basis.
Operating income was $2.2 million, a 6.4 percent margin, compared with $942,000, a 3.4 percent margin, in the prior year.
Net income was $1.2 million, or $0.17 per diluted share, compared with net income of $727,000, or $0.11 per diluted share, in the prior year.
Bookings increased 29 percent to $35.8 million from $27.8 million in the second quarter of fiscal 2018.
Backlog at July 28, 2018 was $24.5 million, up 30 percent from $18.9 million at the end of the fiscal 2018 second quarter.
Second Quarter 2019 Operating Segment Results
The Product Identification segment generated revenue of $21.8 million, a 4.5 percent increase compared with $20.8 million in the prior year on higher sales of hardware and supplies. Segment operating income was $2.2 million, or 9.9 percent of revenue, versus $2.6 million, or 12.5 percent of revenue, in the prior year, due primarily to costs associated with new product development.

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

			
	  	News Release	
 
The Test  & Measurement segment generated revenue of $12.0 million, an 81.2 percent increase from $6.6 million in the prior year, primarily reflecting the impact of the Honeywell asset purchase and licensing agreement and increased supplies business. Segment operating income was $2.8 million, or 23.4 percent of revenue, versus $657,000, or 9.9 percent of revenue, in the prior year.
Hardware revenue was $12.9 million, a 50 percent increase from $8.6 million in the prior year. Supplies revenue was $17.9 million, a 9.8 percent increase from $16.3 million in the same period of fiscal 2018. Service/other revenue was $3.0 million, a 15.4 percent increase over the prior year.
Board Declares Quarterly Dividend
On August 20, 2018, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.07 per share. The dividend, which represents a cash dividend of $0.28 per share on an annualized basis, is payable on September 21, 2018, to shareholders of record on September 14, 2018.
Recent Highlights
 
 	•	 	The Company’s QuickLabel ® business unit launched the first of its second-generation Kiaro! digital inkjet color label printers, the Kiaro! QL-120, to customers worldwide through its direct sales force and international dealer network.	
 
 	•	 	Following the Farnborough International Airshow, AstroNova secured multiple commitments from major airlines for its flagship ToughWriter ® 640 and ToughWriter ® 5 flight deck printers, which are used on a wide range of aircraft including the Boeing 737 MAX.	
Business Outlook
“With solid order momentum and a strong backlog heading into the third quarter of fiscal 2019, we are positioned for continued growth,” Woods said. “We expect the second half of the fiscal year to outperform the first half, with gains in both Product Identification and Test & Measurement.”
Second-Quarter Fiscal 2019 Conference Call
AstroNova will conduct an investor conference call at 9:00 a.m. ET today. To participate on the conference call, please dial (877) 260-1479 (U.S. and Canada) or (334) 323-0522 (International) approximately 10 minutes prior to the start time and enter confirmation code 2195819.

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

			
	  	News Release	
 
You can hear a replay of the conference call from 12:00 Noon ET Wednesday, August 22 until 12:00 p.m. ET Wednesday, August 29 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The passcode is 2195819. A real-time and an archived audio webcast of the call will be available through the “Investors” section of the AstroNova website, https://investors.astronovainc.com.
About AstroNova
AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies since 1969, designs, manufactures, distributes and services a broad range of products that acquire, store, analyze and present data in multiple formats. The Product Identification segment offers a variety of hardware and software products and associated supplies that allow customers to mark, track and enhance the appearance of their products. The segment’s two business units are QuickLabel ® , the industry leader in tabletop digital color label printing and TrojanLabel ® , an innovative leader for professional label presses and specialty printers. The Test and Measurement segment includes the Test & Measurement business unit, which offers a suite of products and services that acquire, record and analyze electronic signal data from local and networked sensors. The segment also includes the AstroNova Aerospace business unit, which designs and manufactures avionics equipment and systems that serve the world’s aerospace and defense industries with proven advanced airborne technology solutions for both the cockpit and the cabin. The key products include flight deck printers, networking hardware and related accessories. AstroNova is a member of the Russell Microcap ® Index and the LD Micro Index (INDEXNYSEGIS: LDMICRO). Additional information is available by visiting www.astronovainc.com.
Forward-Looking Statements
Information included in this news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but rather reflect our current expectations concerning future events and results. These statements may include the use of the words “believes,” “expects,” “intends,” “plans,” “anticipates,” “likely,” “continues,” “may,” “will,” and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning the Company’s anticipated performance in the second half of fiscal 2019, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, those factors set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2018 and subsequent filings AstroNova makes with the Securities and Exchange Commission.

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

			
	  	News Release	
 
The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reader is cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this news release.

 	 	 	
600 East Greenwich Avenue
West Warwick, RI 02893
+1 (401) 828-4000	  	NASDAQ: ALOT
www.astronovainc.com	  	Page | 5	

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

 	  	Three Months Ended	 	 	Six Months Ended	 	
 	  	July 28, 2018	 	 	July 29, 2017	 	 	July 28, 2018	 	 	July 29, 2017	 	
Revenue	  	$	33,807	 	 	$	27,483	 	 	$	65,294	 	 	$	51,941	 	
Cost of Goods Sold	  	 	20,408	 	 	 	17,224	 	 	 	39,784	 	 	 	32,376	 	
Gross Profit	  	 	13,399	 	 	 	10,259	 	 	 	25,510	 	 	 	19,565	 	
	  	 	39.6	% 	 	 	37.3	% 	 	 	39.1	% 	 	 	37.7	% 	
Operating Expenses:	  				 				 				 				
Selling & Marketing	  	 	6,397	 	 	 	5,315	 	 	 	12,898	 	 	 	10,426	 	
Research & Development	  	 	2,029	 	 	 	1,675	 	 	 	3,721	 	 	 	3,307	 	
General & Administrative	  	 	2,808	 	 	 	2,327	 	 	 	5,462	 	 	 	4,183	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
	  	 	11,234	 	 	 	9,317	 	 	 	22,081	 	 	 	17,916	 	
Operating Income	  	 	2,165	 	 	 	942	 	 	 	3,429	 	 	 	1,649	 	
	  	 	6.4	% 	 	 	3.4	% 	 	 	5.3	% 	 	 	3.2	% 	
Other Income (Expense), Net	  	 	(512	) 	 	 	16	 	 	 	(782	) 	 	 	(33	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Before Taxes	  	 	1,653	 	 	 	958	 	 	 	2,647	 	 	 	1,616	 	
Income Tax Provision	  	 	459	 	 	 	231	 	 	 	637	 	 	 	378	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income	  	$	1,194	 	 	$	727	 	 	$	2,010	 	 	$	1,238	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income per Common Share - Basic	  	$	0.17	 	 	$	0.11	 	 	$	0.29	 	 	$	0.17	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income per Common Share - Diluted	  	$	0.17	 	 	$	0.11	 	 	$	0.29	 	 	$	0.17	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted Average Number of Common Shares - Basic	  	 	6,860	 	 	 	6,727	 	 	 	6,825	 	 	 	7,097	 	
Weighted Average Number of Common Shares - Diluted	  	 	7,083	 	 	 	6,838	 	 	 	6,999	 	 	 	7,218	 	
Dividends Declared Per Common Share	  	$	0.07	 	 	$	0.07	 	 	$	0.14	 	 	$	0.14	 	

Condensed Consolidated Balance Sheet Data
Amounts In Thousands
(Unaudited)

 	  	(Unaudited)	 	 	 	 	
 	  	July 28, 2018	 	 	January 31, 2018	 	
ASSETS	  				 				
CURRENT ASSETS	  				 				
Cash and Cash Equivalents	  	$	5,949	 	 	$	10,177	 	
Securities Available for Sale	  	 	—  	 	 	 	1,511	 	
Accounts Receivable, net	  	 	24,048	 	 	 	22,400	 	
Inventory, net	  	 	28,396	 	 	 	27,609	 	
Prepaid Expenses and Other Current Assets	  	 	1,767	 	 	 	1,251	 	
	  	 	 	 	 	 	 	 	
Total Current Assets	  	 	60,160	 	 	 	62,948	 	
PROPERTY, PLANT AND EQUIPMENT	  	 	43,559	 	 	 	42,877	 	
Less Accumulated Depreciation	  	 	(34,034	) 	 	 	(33,125	) 	
	  	 	 	 	 	 	 	 	
Property, Plant and Equipment, net	  	 	9,525	 	 	 	9,752	 	
OTHER ASSETS	  				 				
Intangible Assets, net	  	 	31,788	 	 	 	33,633	 	
Goodwill	  	 	12,466	 	 	 	13,004	 	
Deferred Tax Assets	  	 	1,827	 	 	 	1,829	 	
Other Assets	  	 	1,304	 	 	 	1,147	 	
	  	 	 	 	 	 	 	 	
Total Other Assets	  	 	47,385	 	 	 	49,613	 	
	  	 	 	 	 	 	 	 	
TOTAL ASSETS	  	$	117,070	 	 	$	122,313	 	
	  	 	 	 	 	 	 	 	
LIABILITEIS AND SHAREHOLDERS’ EQUITY	  				 				
CURRENT LIABILITIES	  				 				
Accounts Payable	  	$	6,082	 	 	$	11,808	 	
Accrued Compensation	  	 	3,294	 	 	 	2,901	 	
Other Liabilities and Accrued Expenses	  	 	3,380	 	 	 	2,414	 	
Current Portion of Long-Term Debt	  	 	5,024	 	 	 	5,498	 	
Current Liability - Royalty Obligation	  	 	1,625	 	 	 	1,625	 	
Line of Credit	  	 	1,500	 	 	 	—  	 	
Current Liability - Excess Royalty Payment Due	  	 	1,377	 	 	 	615	 	
Income Taxes Payable	  	 	366	 	 	 	684	 	
Deferred Revenue	  	 	236	 	 	 	367	 	
	  	 	 	 	 	 	 	 	
Total Current Liabilities	  	 	22,884	 	 	 	25,912	 	
NON CURRENT LIABILITIES	  				 				
Long-Term Debt, net of current portion	  	 	15,249	 	 	 	17,648	 	
Royalty Obligation, net of current portion	  	 	10,901	 	 	 	11,760	 	
Deferred Tax Liabilities	  	 	623	 	 	 	698	 	
Other Liabilities	  	 	1,925	 	 	 	2,648	 	
	  	 	 	 	 	 	 	 	
TOTAL LIABILITIES	  	 	51,582	 	 	 	58,666	 	
SHAREHOLDERS’ EQUITY	  				 				
Common Stock	  	 	507	 	 	 	500	 	
Additional Paid-In Capital	  	 	51,877	 	 	 	50,016	 	
Retained Earnings	  	 	46,761	 	 	 	45,700	 	
Treasury Stock	  	 	(32,960	) 	 	 	(32,397	) 	
Accumulated Other Comprehensive Income	  	 	(697	) 	 	 	(172	) 	
	  	 	 	 	 	 	 	 	
TOTAL SHAREHOLDERS’ EQUITY	  	 	65,488	 	 	 	63,647	 	
	  	 	 	 	 	 	 	 	
TOTAL LIABILITY AND SHAREHOLDERS’ EQUITY	  	$	117,070	 	 	$	122,313