Astro-Med reports profit drop in 2Q, sales increase

HIGH-TECH MANUFACTURER Astro-Med reported second-quarter profit of $1.2 million, or 16 cents per diluted share, a drop of 18.6 percent compared with last year. / COURTESY ASTRO-MED INC.
HIGH-TECH MANUFACTURER Astro-Med reported second-quarter profit of $1.2 million, or 16 cents per diluted share, a drop of 18.6 percent compared with last year. / COURTESY ASTRO-MED INC.

WEST WARWICK – Astro-Med reported fiscal second-quarter profit of $1.2 million, or 16 cents per diluted share, a drop of 18.6 percent compared with last year, but a sales increase of 7 percent to $23.9 million.

The company, which makes specialty printers and measurement devices, released second-quarter results for the period ended Aug. 1.

Company President and CEO Gregory A. Woods said Astro-Med posted a profitable second quarter, highlighted by “continued top-line growth, strong orders of $25.4 million and a healthy backlog.”
He said order demand has been so strong that for the first time in the company’s history, it will expand to a third shift at its West Warwick label manufacturing facility.
“This step will improve asset utilization and overall labor efficiency, helping to drive margin enhancement toward the end of this year,” Woods said in a statement.
Astro-Med’s QuickLabel Systems business delivered double-digit growth in bookings and shipments, he said, adding the new color inkjet label printers and global marketing initiatives helped drive orders for labels and inks.
The QuickLabel Systems segment experienced 12.1 percent sales growth to $17.1 million. The test and measurement segment slipped 3.8 percent to $6.8 million in the second quarter, reflecting a shift in delivery timing requirements for some aircraft manufacturers to later in the year for Astro-Med’s ruggedized printer product line.
He said sales in the domestic channel increased 14 percent year over year, while international sales declined 8 percent. International sales included an “unfavorable foreign exchange impact” of $900,000, he said.
“However, with our recent expansion into Asia and Latin America, and the broadening of our sales reach in Canada, we are expanding our market share and competitive positioning for international growth,” Woods said.
Woods said he is optimistic about the second half of 2016, as demand remains strong.
“Orders through the first six months of the fiscal year stand at a robust $51.5 million, 15.4 percent ahead of the prior year. The company is generating positive cash flow and we are well positioned to achieve our key operational and financial objectives. Looking ahead, we expect to continue to strategically grow the business while making investments in new equipment and related infrastructure that will enable us to further optimize our processes and strengthen margins,” Woods said.

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