AstroNova Announces Strategic Realignment of Product Identification Segment to Improve Cost and Operational Efficiencies

AstroNova, Inc. (Nasdaq: ALOT) (“AstroNova” or the “Company”), a global leader in data visualization technologies, today announced the implementation of a realignment of its Product Identification (“PI”) segment. The realignment is designed to streamline the cost structure and enhance the operational efficiencies of the segment to capitalize on the synergies of the Company’s Astro Machine, Inc. subsidiary, which was acquired in August 2022.

As part of the realignment, AstroNova will transition more PI printer manufacturing from both Asia and its West Warwick, Rhode Island plant to the Astro Machine facility in Elk Grove Village, Illinois. In addition, AstroNova will exit certain older, lower-margin or low volume PI products to focus on expanding the sales of higher margin product lines with more advanced functionality and greater demand. Related initiatives include consolidation of international PI sales and distribution facilities and streamlining of AstroNova’s channel partner network, as well as acceleration of the ongoing printer retrofit program to restore printers sidelined due to a supplier’s ink quality issue.

“Leveraging our continuous improvement process and the synergies that we continue to realize with last year’s acquisition of Astro Machine, we have identified opportunities to streamline the selling process and better utilize our manufacturing footprint,” said Greg Woods, AstroNova’s President and Chief Executive Officer. “Creating a leaner, more efficient PI segment focuses resources on delivering the best solutions for customers and the highest-return opportunities for AstroNova.”

The actions being announced today are expected to generate more than $2.4 million in annualized savings for AstroNova. To realize these ongoing improvements, the Company will incur a pre-tax restructuring charge of approximately $3.2 million, of which approximately $1.7 million will be non-cash. A substantial portion of the restructuring charge will be recorded in the Company’s fiscal 2024 second-quarter financial results for the three months ended July 29, 2023.

AstroNova plans to release its FY 2024 second-quarter financial results before the opening of the market on Wednesday, September 6, 2023.

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.