ALOT AstroNova Inc

Board of Directors Declares Regular Quarterly Cash Dividend of $0.07 Per Share

First-Quarter Fiscal 2020 Achievements (all comparisons with first-quarter fiscal 2019)

• Bookings of $38.5 million, up 16%
• Revenue of $36.2 million, up 15%
• Operating income of $2.5 million, up 95%
• Earnings per diluted share of $0.23, up 92%

AstroNova, Inc. (NASDAQ: ALOT), a global leader in data visualization technologies, today announced financial results for the fiscal 2020 first quarter ended May 4, 2019.

CEO Commentary

“We executed well in the first quarter, generating strong year-over-year gains in revenue, operating income and earnings per share,” said President and CEO Greg Woods. “Our financial and operational performance reflects the strategic investments we are making in new product development, technology enhancements and geographic expansion, all driven by our AstroNova Operating System (AOS). Through the AOS standard set of tools and processes, we are realizing increased efficiencies, enhancing operating leverage and driving growth to the bottom line.

“Both segments contributed to our positive results in Q1,” Woods said. “In Product Identification, key business drivers included demand for our new, five-color QL-300 tabletop printer, which allows commercial printers and other customers to expand their capability to produce high-quality, short-run specialty labels across a range of industries. In the Test & Measurement segment, our results reflected solid momentum in our key end markets.”

Business Outlook

“For fiscal 2020 we continue to expect modest revenue growth and increased operating leverage for the full year as we expand the application of the AstroNova Operating System across our business,” Woods said. “However while so far we have been largely unaffected by the grounding of the Boeing 737 MAX, we expect that the prolonged situation may result in a slight impact on our second-quarter operating margin. Whether or not this impact continues beyond the second quarter is dependent on when the aircraft is returned to service.”

Operating Segment Results

Product Identification segment revenue in the first quarter of fiscal 2020 was $23.6 million, an 18.2% increase compared with $20.0 million in the prior year, on higher sales of hardware, supplies and services. Segment operating income was $2.9 million, or 12.2% of revenue, versus $1.7 million, or 8.3% of revenue, in the prior year, primarily reflecting higher revenue and improved operating leverage.

Test & Measurement segment revenue in the first quarter of fiscal 2020 increased 9.2% to $12.6 million from $11.5 million in the same period of fiscal 2019. Segment operating income was $2.6 million, or 20.5% of revenue, for the first quarter of fiscal 2020 compared with $2.3 million, or 19.6% of revenue, in the comparable period of fiscal 2019.

Financial Summary

Revenue in the first quarter totaled $36.2 million, an increase of 14.9% from $31.5 million in the first quarter of fiscal 2019, reflecting higher sales in both the Product Identification and Test & Measurement segments.

Gross profit in the first quarter was $14.2 million, or 39.4% of revenue, compared with $12.1 million, or 38.5% of revenue, for Q1 fiscal 2019. The increase in gross profit dollars and margin reflected higher revenue in the 2020 period.

Operating expenses for the first quarter were $11.8 million compared with $10.8 million in the same period of fiscal 2019.

Operating income for the first quarter was $2.5 million, or 6.8% of revenue, compared with $1.3 million, or 4.0% of revenue, in the first quarter of fiscal 2019.

Net income for the first quarter was $1.7 million, or $0.23 per diluted share, versus $814,000, or $0.12 per diluted share, in the first quarter of fiscal 2019.

First-quarter 2020 bookings increased 16% to $38.5 million from $33.3 million in the first quarter of 2019, with increases in both the Product Identification and Test & Measurement segments.

Backlog at May 4, 2019 increased to a record $27.0 million, up 13% from $23.9 million at the end of the fiscal 2019 first quarter.

Board Declares Quarterly Dividend

On June 4, 2019, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.07 per share. The dividend, which represents a cash dividend of $0.28 per share on an annualized basis, is payable on June 26, 2019, to shareholders of record on June 19, 2019.

First-Quarter Fiscal 2020 Conference Call

AstroNova will conduct an investor conference call at 9:00 a.m. ET today. To participate on the conference call, please dial (877) 260-1479 (U.S. and Canada) or (334) 323-0522 (International) approximately 10 minutes prior to the start time and enter confirmation code 7303253

You can hear a replay of the conference call from 12:00 p.m. ET Wednesday, June 5 until 12:00 p.m. ET Wednesday, June 12 by dialing (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The passcode is 7303253. 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 fiscal 2020 and the effect of the grounding of the 737 MAX, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, those factors set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2019 and subsequent filings AstroNova makes with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reader is cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this news release.

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

Three Months Ended

May 4, 2019 April 28, 2018 Net Revenue $ 36,181 $ 31,487   Cost of Revenue 21,942 19,377 Gross Profit 14,239 12,110 39.4% 38.5% Operating Expenses: Selling & Marketing 6,765 6,500 Research & Development 2,007 1,692 General & Administrative   2,999   2,653 11,771 10,845   Operating Income 2,468 1,265 6.8% 4.0%   Other Income, Net   (368)   (270) Income Before Taxes 2,100 995 Income Tax Provision   400   181   Net Income $ 1,700 $ 814   Net Income per Common Share - Basic $ 0.24 $ 0.12   Net Income per Common Share - Diluted $ 0.23 $ 0.12   Weighted Average Number of Common Shares - Basic 6,971 6,788 Weighted Average Number of Common Shares - Diluted 7,248 6,916     ASTRONOVA, INC. Balance Sheet In Thousands (Unaudited)          

May 4, 2019

January 31, 2019

ASSETS CURRENT ASSETS Cash and Cash Equivalents

$

5,769

$

7,534

Accounts Receivable, net 21,970 23,486 Inventories, net 32,043 30,161 Prepaid Expenses and Other Current Assets   1,198   1,427 Total Current Assets 60,980 62,608   PROPERTY, PLANT AND EQUIPMENT 45,850 45,327 Less Accumulated Depreciation   (35,388)   (34,947) Property, Plant and Equipment, net 10,462 10,380 OTHER ASSETS Intangible Assets, net 28,561 29,674 Goodwill 12,136 12,329 Deferred Tax Assets 2,927 2,928 Right of Use Asset 1,826 - Other Assets   1,047   1,064 TOTAL ASSETS

$

117,939

$

118,983

LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts Payable

$

5,818

$

5,956

Accrued Compensation 2,767 5,023 Other Liabilities and Accrued Expenses 2,848 2,911 Current Portion of Long-Term Debt 4,932 5,208 Current Portion of Royalty Obligation 2,000 1,875 Revolving Credit Facility 1,500 1,500 Current Liability – Excess Royalty Payment Due 1,301 1,265 Income Taxes Payable 810 554 Deferred Revenue   350   373 Total Current Liabilities 22,326 24,665 NON CURRENT LIABILITIES Long-Term Debt, net of current portion 11,583 12,870 Royalty Obligation, net of current portion 9,440 9,916 Lease Liability 1,472 - Deferred Tax Liabilities 15 40

Other Long-Term Liabilities

  1,489   1,717 TOTAL LIABILITIES 46,325 49,208 SHAREHOLDERS’ EQUITY Common Stock 513 511 Additional Paid-in Capital 54,474 53,568 Retained Earnings 50,722 49,511 Treasury Stock (33,077) (32,997) Accumulated Other Comprehensive Loss, net of tax   (1,018)   (818) TOTAL SHAREHOLDERS’ EQUITY   71,614   69,775 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$

117,939

$

118,983

    ASTRONOVA, INC. Revenue and Segment Operating Profit In Thousands (Unaudited)                         Three Months Ended Revenue   Segment Operating Profit     May 4, 2019   April 28, 2018   May 4, 2019   April 28, 2018 Product Identification $ 23,591 $ 19,953 $ 2,886 $ 1,661 T&M   12,590     11,534     2,581     2,257 Total $ 36,181   $ 31,487   5,467 3,918 Corporate Expenses   2,999     2,653 Operating Income 2,468 1,265 Other Expense-Net   (368)     (270) Income Before Income Taxes 2,100 995 Income Tax Provision   400     181 Net Income $ 1,700   $ 814  

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Scott SolomonSenior Vice PresidentSharon Merrill Associates(617) 542-5300ALOT@investorrelations.com