manufacturing

Profit falls at Astro-Med as expenses increase and currency rates hurt

Posted 8/18/10

WEST WARWICK – Astro-Med Inc. announced a second-quarter profit Tuesday that was “at the low end of the range” of expectations as sales for two of the company’s brands did not meet forecasts and operating expenses grew.

Astro-Med reported a profit of $323,000, or 4 cents per diluted share, in the three months ended July 31, compared with a profit of $585,000, or 8 cents per diluted share, a year earlier. Revenue rose 8.1 percent to $17.75 million.

The company saw its gross profit margin fall to 39.6 percent this quarter, compared with 42.3 percent in the same quarter last year. Additionally, operating expenses for the quarter increased 6.8 percent year-over-year.

“Results for the quarter came in at the low end of the range we were forecasting, although our QuickLabel Systems brand was a stand-out performer with sales of more than $10 million for the quarter,” said Astro-Med CEO Albert W. Ondis in a press release.

Meanwhile, sales of the company’s Grass Technologies and Test & Measurement brands did not reach company forecasts. Second-quarter sales were also affected by foreign currency exchange rates, which lowered sales by $227,000, or 1.4 percent, compared with a year earlier.

“The products of Astro-Med Inc. enter many segments of the worldwide economy where, although we continue to see resistance to capital equipment purchases, we are beginning the third quarter with a very full pipeline of active sales prospects,” Ondis continued. “As a result, we feel the balance of the year will be good, if not excellent.”

Ondis also noted that softer sales of its QuickLabel Systems are expected in the third quarter as the company prepares for a “major color printer model change.”

The specialty electronics manufacturer has $21.9 million in cash and marketable securities, and has no debt.

Additional information is available at www.astro-medinc.com.

Calendar
PBN Hosted
Events

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement