WEST WARWICK, R.I.--(BUSINESS WIRE)-- The Condensed Consolidated Statements of Cash Flows and Reconciliation of GAAP to Non-GAAP Items for PI Segment tables of release dated April 14, 2025 have been updated.

The updated release reads:

ASTRONOVA REPORTS FISCAL 2025 FOURTH-QUARTER AND FULL-YEAR FINANCIAL RESULTS; ADVANCING RESTRUCTURING, OPERATIONAL REALIGNMENT AND PRODUCT SIMPLIFICATION PLANS TO DRIVE IMPROVED EARNINGS POWER

• Fourth quarter revenue of $37.4 million in line with preliminary expectations; fiscal 2025 revenue of $151.3 million comprised of 71% recurring revenue
• Restructuring plan expected to deliver $3 million in annualized savings with 40% to be realized in fiscal 2026
• Simplifying product portfolio; focused on higher growth higher margin products
• Aerospace Test & Measurement segment ToughWriter printer transition 40% complete; drives operational efficiency and reduced working capital requirements while eliminating legacy royalties

AstroNova, Inc. (Nasdaq: ALOT), a global leader in data visualization technologies, today announced financial results for its fiscal 2025 fourth quarter and full-year ended January 31, 2025. Results include the May 6, 2024 acquisition of MTEX NS.

Greg Woods, President and Chief Executive Officer of AstroNova, stated, “Fiscal 2025 was a challenging year as we addressed the difficult integration of MTEX, absorbed the impact of the Boeing strike and addressed the timing associated with large defense industry orders. Nonetheless, we aggressively implemented the AstroNova Operating System at MTEX, improved the leadership team, upgraded talent within the organization, and significantly improved the accounting and finance system and human resources processes. We are instilling accountability and discipline into the organization, streamlining the structure and eliminating waste. We have also identified how to best leverage MTEX’s operations in Portugal to create an AstroNova Center of Manufacturing Excellence in Europe. In fact, we are taking action throughout AstroNova to create a business that can deliver stronger earnings power.”

“Importantly, we are leveraging the innovative foundation of MTEX technologies to create more competitive solutions that address an expanded range of applications and provide our customers with higher quality and reliability. This will also enable us to gain greater control over our supply chain in order to reduce costs and expand margins. We plan to launch new products incorporating our next-generation technology in the first quarter of fiscal 2026 and will be rolling out more products throughout the year.”

Fiscal 2026 Outlook Reaffirmed

For fiscal 2026, AstroNova continues to expect net revenue in the range of $160 million to $165 million which is a 7% increase over fiscal 2025 at the mid-point of the range. Adjusted EBITDA margin is expected to be in the range of 8.5% to 9.5%, a 60-basis point expansion over the prior year at the mid-point.

Mr. Woods added, “We are focused on innovative solutions to gain market share and expand our market reach. Our strategic priorities in fiscal 2026 are to drive our print engine technology initiatives, capture greater ownership of the supply chain for our consumables, and drive the conversion to our ToughWriter family of printers with our Aerospace customers. In addition to offering a better solution for our customers, this conversion and other product simplification initiatives will reduce inventory, improve working capital and drive profitability.”

Fourth Quarter Fiscal 2025 Overview

Net revenue for the fourth quarter of fiscal 2025 was $37.4 million compared with net revenue of $39.6 million for the fourth quarter of fiscal 2024, a decrease of 5.6% or $2.2 million, reflecting lower sales in both Product Identification (PI) and Test & Measurement (T&M) segments.

PI revenue was $25.7 million for the fourth quarter of fiscal 2025 compared with $26.6 million for the fourth quarter of fiscal 2024, a decrease of 3.6% or $0.9 million. The decrease was primarily attributable to less favorable product mix in the 2025 period, partially offset by the addition of MTEX, which the Company acquired in May 2024.

On a GAAP (Generally Accepted Accounting Principles) basis, PI segment operating loss was $11.2 million for the fourth quarter of fiscal 2025, which includes the previously announced non-cash goodwill impairment of $13.4 million largely associated with the Company’s MTEX business and $0.1 million in inventory step-up expenses. This compares with PI segment GAAP operating profit of $3.2 million, or 12.2% of segment revenue, for the fourth quarter of fiscal 2024, which includes $0.3 million in product retrofit costs and restructuring charges. On a non-GAAP basis, excluding the discrete expenses in both periods, PI segment operating profit was $2.3 million, or 8.9% of segment revenue in the fourth quarter of fiscal 2025, compared with segment operating profit of $3.0 million, or 11.1% of segment revenue, for the fourth quarter of fiscal 2024.

T&M segment revenue was $11.7 million for the fourth quarter of fiscal 2025 compared with $13.0 million for the fourth quarter of fiscal 2024, a decrease of 9.9% or $1.3 million. The decrease was due primarily to a delayed defense order and, to a lesser extent, deferred deliveries associated with the Boeing strike.

T&M segment operating profit was $2.3 million, or 20.0% of segment revenue, for the fourth quarter of fiscal 2025 compared with segment operating profit of $3.7 million, or 28.2% of segment revenue, for the fourth quarter of fiscal 2024.

GAAP gross profit was $12.7 million for the fourth quarter of fiscal 2025, resulting in a gross margin of 34.1%, compared with gross profit of $14.7 million and a gross profit of 37.2% for the same period in fiscal 2024, primarily reflecting lower revenue and less favorable product mix in the 2025 period.

GAAP operating loss for the fourth quarter of fiscal 2025 was $12.3 million, compared with GAAP operating income of $3.9 million for the fourth quarter of fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported operating income of $1.4 million, compared with $3.6 million in the fourth quarter of fiscal 2024.

Net loss on a GAAP basis was $15.6 million, or $2.07 per share, for the fourth quarter of fiscal 2025 compared with net income of $2.7 million, or $0.36 per diluted share, for the fourth quarter of fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported net income of $0.4 million, or $0.06 per diluted share, for the fourth quarter of fiscal 2025 compared with net income of $2.5 million, or $0.33 per diluted share, in the fourth quarter of fiscal 2024.

Adjusted EBITDA was $2.8 million for the fourth quarter of fiscal 2025 compared with Adjusted EBITDA $5.2 million for the fourth quarter of fiscal 2024.

The Company’s order backlog was $28.3 million as of January 31, 2025 compared with $31.4 million at the end of fiscal 2024.

Full-Year Fiscal 2025 Overview

Net revenue for fiscal 2025 was $151.3 million compared with net revenue of $148.1 million for fiscal 2024, an increase of 2.2% or $3.2 million, reflecting higher sales in the T&M segment, partially offset by lower sales in the PI segment.

PI revenue was $102.3 million for fiscal 2025 compared with $104.0 million for fiscal 2024, a decrease of 1.6% or $1.7 million. The decrease was primarily attributable to less favorable product mix in the 2025 period, partially offset by the addition of MTEX, which the Company acquired in May 2024.

On a GAAP (Generally Accepted Accounting Principles) basis, PI segment operating loss was $4.0 million for fiscal 2025, which includes the previously announced non-cash goodwill impairment of $13.4 million largely associated with the Company’s MTEX business and $0.2 million in inventory step-up expenses. This compares with PI segment GAAP operating profit of $10.1 million, or 9.7% of segment revenue, for fiscal 2024, which includes $3.2 million in product retrofit costs and restructuring charges. On a non-GAAP basis, excluding the discrete expenses in both periods, PI segment operating profit was $9.7 million, or 9.4% of segment revenue, for fiscal 2025, compared with segment operating profit of $13.2 million, or 12.7% of segment revenue, for fiscal 2024.

T&M segment revenue was $48.9 million for fiscal 2025 compared with $44.0 million fiscal 2024, an increase of 11.1% or $4.9 million. The increase primarily reflected higher revenue from supplies and service/other in the 2025 period, partly offset by lower hardware sales.

T&M segment operating profit was $11.1 million, or 22.8% of segment revenue, fiscal 2025 compared with segment operating profit of $10.2 million, or 23.2% of segment revenue, for fiscal 2024.

GAAP gross profit was $52.7 million for fiscal 2025, resulting in a gross margin of 34.9%, compared with gross profit of $51.6 million and a gross profit of 34.9% for fiscal 2024.

GAAP operating loss for fiscal 2025 was $8.6 million, compared with GAAP operating income of $8.8 million for fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported operating income of $6.6 million for fiscal 2025, compared with $12.0 million for fiscal 2024, primarily related to higher operating expenses in the 2025 period.

Net loss on a GAAP basis was $14.5 million, or $1.93 per share, for fiscal 2025 compared with net income of $4.7 million, or $0.63 per diluted share, for fiscal 2024. On a non-GAAP basis, excluding discrete items in both periods, the Company reported net income of $2.7 million, or $0.33 per diluted share, in fiscal 2025 compared with net income of $7.2 million, or $0.97 per diluted share, in fiscal 2024.

Adjusted EBITDA was $12.3 million for fiscal 2025 compared with Adjusted EBITDA $17.6 million for fiscal 2024.

Amendment and Waiver of Credit Agreement

As previously disclosed, AstroNova obtained an amendment and waiver with regard to its credit agreement with Bank of America. Among other changes to the credit agreement, the amendment waives certain covered covenants as of the end of its fiscal quarter ended January 31, 2025, provides for relaxed financial covenant ratios during fiscal 2026, and provides for reduced payments of one of its term loans during fiscal 2026 as the Company implements its restructuring efforts, after which the payments of such term loan increase. The amended credit agreement provides for up to $2 million in add-backs to the Company’s Consolidated EBITDA (as defined in the credit agreement) for Company cash restructuring charges in fiscal 2026.

Earnings Conference Call Information

AstroNova will discuss its fiscal fourth-quarter and full-year fiscal 2025 financial results and business outlook in an investor conference call at 9:00 a.m. ET today. To access the conference call, please dial (833) 470-1428 (U.S. and Canada) or (404) 975-4839 (International) approximately 10 minutes prior to the start time and enter access code 957215.

A real-time and an archived audio webcast of the call will be available through the “Investors” section of the AstroNova website, https://investors.astronovainc.com.

Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this news release contains the non-GAAP financial measures non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, non-GAAP segment operating profit, and Adjusted EBITDA. AstroNova believes that the inclusion of these non-GAAP financial measures helps investors gain a meaningful understanding of changes in the Company’s core operating results and can help investors who wish to make comparisons between AstroNova and other companies on both a GAAP and a non-GAAP basis. AstroNova’s management uses these non-GAAP financial measures, in addition to GAAP financial measures, as the basis for measuring its core operating performance and comparing such performance to that of prior periods and to the performance of its competitors. These measures are also used by the Company’s management to assist with their financial and operating decision-making. Please refer to the financial reconciliation table included in this news release for a reconciliation of the non-GAAP measures to the most directly comparable GAAP measures for the three and 12 months ended January 31, 2025 and 2024.

AstroNova has not reconciled the forward-looking Adjusted EBITDA growth percentage included in its fiscal 2026 financial targets and outlook to the most directly comparable forward-looking GAAP measure because this cannot be done without unreasonable effort due to the lack of predictability regarding cost of sales, operating expenses, depreciation and amortization, and stock-based compensation. The impact of any of these items, individually or in the aggregate, may be significant.

About AstroNova

AstroNova (Nasdaq: ALOT), a global leader in data visualization technologies since 1969, designs, manufactures, distributes and services a broad range of products that acquire, store, analyze, and present data in multiple formats.

The Product Identification segment provides a wide array of digital, end-to-end product marking and identification solutions, including hardware, software, and supplies for OEMs, commercial printers, and brand owners. The Test and Measurement segment provides products designed for airborne printing solutions, avionics, and data acquisition. Our aerospace products include flight deck printing solutions, networking hardware, and specialized aerospace-grade supplies. Our data acquisition systems are used in research and development, flight testing, missile and rocket telemetry production monitoring, power, and maintenance applications.

AstroNova is a member of the Russell Microcap® Index and the LD Micro Index (INDEXNYSEGIS: LDMICRO). Additional information is available by visiting https://astronovainc.com/.

Forward-Looking Statements

Information included in this news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact but rather reflect our current expectations concerning future events and results. These statements may include the use of the words “believes,” “expects,” “intends,” “plans,” “anticipates,” “likely,” “continues,” “may,” “will,” and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning the Company’s anticipated performance, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, (i) the risk that our organizational improvements at MTEX may not result in the benefits that we expect; (ii) the risk that our cost-reduction and product line rationalization initiative may not provide the expected benefits; (iii) the risk that our Aerospace customers may not convert to our ToughWriter line in the volumes or on the schedule that we expect; (iv) the risk that we may not realize the anticipated benefits of our next-generation print engine technology; and (v) those factors set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2024 and subsequent filings AstroNova makes with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reader is cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this news release.