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.

No comments on this story | Add your comment
Please log in or register to add your comment
Calendar
PBN Hosted
Events

Only a few seats remain for PBN's Manufacturing Awards Dinner and Ceremony, Thursday, April 24th, at the Bryant University Bello Center. Don't hesitate. Register today!
  • Business Women
    Accomplished. Confident. Wicked Smart. Nominate women you know who deserve speci ...
  • 40 Under Forty
    It's the 10th Anniversary of 40 Under Forty, and PBN is planning a special event ...
  • Healthiest Employers
    Enrollment now open for the 2014 Healthiest Employers Program. Please take a mom ...
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