AstroNova (NASDAQ: ALOT) reported Q2 EPS of $0.00, $0.06 better than the analyst estimate of ($0.06). Revenue for the quarter came in at $27.7 million versus the consensus estimate of $27.92 million.

Second-Quarter Fiscal 2021 Summary

• Bookings of $25.3 million
• Backlog of $23.7 million
• Revenue of $27.7 million
• Operating income breakeven
• Net income of $0.0 million, or $0.00 per diluted share
• EBITDA of $2.3 million, or 8.4% of revenue

CEO Commentary

“After a slow start to the quarter, we were pleased to see that our largest segment, Product Identification, representing nearly 80% of AstroNova revenue, made good progress adapting to the new normal by accelerating the transition to digital business practices from our traditional in-person sales and marketing approach,” said Greg Woods, AstroNova’s President and Chief Executive Officer. “This switch, combined with customer enthusiasm for our recently refreshed printer offerings, resulted in a solid pick-up in printer sales and supplies in the latter part of the quarter. Based upon our unique full-solution offerings and our well-established strong position in resilient market segments such as food & beverage, cleaning supplies and medical, we expect this growth trend to continue as we move through the second half of the year.

“In our Test & Measurement segment, the combination of the continued 737 MAX grounding and the COVID-19 pandemic further depressed revenue in the quarter,” Woods said. “We adjusted by taking significant additional actions to reduce expenses to better align this business with the current macro environment. These initiatives better position us to emerge stronger with increased profitability as the industry rebounds.

“While a full rebound in the aerospace industry is likely to take many quarters, we are starting to see some positive signs. During the second quarter our repair business started to rebound as the number of global flights increased. We believe that this momentum will continue based on the gradual but steady increase in the number of aircraft being flown. Additionally, many of the final steps required for the Boeing 737 MAX’s return to service authorization have now been completed,” continued Woods. “Meanwhile, we continue to make progress on further increasing our direct to airline market penetration, especially in the narrow-body segment. For example, we recently announced an exclusive multi-year commitment from a major North American carrier to standardize on our ToughWriter® narrow-format flight deck printers for its Boeing 737 MAX aircraft. These market share gains enhance our ability to grow at a faster rate as the industry recovers.

“Despite the impacts of the COVID-19 pandemic, our team around the globe is doing well and has continued to demonstrate an unwavering commitment to providing our customers with the highest-quality products and services,” Woods said. “Our team’s health and safety is of utmost importance and we deeply appreciate their dedication and adherence to our rigorous protection protocols, which have kept them healthy and all of our worldwide facilities fully operational.

Business Outlook

“We have taken – and will continue to take ─ aggressive cost-reduction actions to enable more rapid profit improvement as the market recovers. We have also strengthened our liquidity position to drive the growth of our Product Identification segment and weather the downturn in the aerospace industry. Based on the strength of Product Identification’s large and diversified global installed base, and the renewed new printer sales growth driven by our digital transformation, we expect growth in the Product Identification segment to increase beginning in the second half of the fiscal year. Additionally, we are encouraged by recent demand trends and expect to see total revenues grow sequentially in the third and fourth quarters of this fiscal year,” concluded Woods.

For earnings history and earnings-related data on AstroNova (ALOT) click here.