ALOT - AstroNova realigns product identification segment to boost operational efficiencies

2023-08-01 08:28:27 ET

• AstroNova ( NASDAQ: ALOT ) said Tuesday it is realigning its Product Identification segment to streamline the cost structure and enhance operational efficiencies to capitalize on the synergies of its unit Astro Machine, which was acquired in August 2022.
• The realignment is expected to generate more than $2.4M in annualized savings for AstroNova ( ALOT ).
• AstroNova ( ALOT ) will transition more PI printer manufacturing from Asia and its Rhode Island plant to the Astro Machine facility in Illinois.
• The firm will exit certain older, lower-margin or low volume PI products to focus on expanding sales of higher margin product lines.
• Related initiatives include consolidation of international PI sales and distribution facilities, streamlining of AstroNova's ( ALOT ) 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.
• AstroNova ( ALOT ) will incur a pre-tax restructuring charge of ~$3.2M related to the realignment, of which ~$1.7M will be non-cash.
• A substantial portion of the charge will be recorded in AstroNova's ( ALOT ) Q2 results, which will be released on September 6.
• Earlier, AstroNova ( ALOT ) reported Q1 results .

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